What is the allocation of the budget among the three media

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Reference no: EM131920715

Problem

The Chamber of Commerce periodically sponsors public service seminars and programs. Currently, promotional plans are under way for this year's program.

Advertising alternatives include television, radio, and newspaper. Audience estimates, costs, and maximum media usage limitations are as shown:

Constraint Television Radio Newspaper

Audience per advertisement 110,000 17,000 30,000

Cost per advertisement $2,500 $300 $500

Maximum media usage 10 23 10

To ensure a balanced use of advertising media, radio advertisements must not exceed 40% of the total number of advertisements authorized. In addition, television should account for at least 10% of the total number of advertisements authorized.

(a) If the promotional budget is limited to $20,500, how many commercial messages should be run on each medium to maximize total audience contact?

Advertisement Alternatives No of commercial messages

Television_______

Radio_________

Newspaper__________

What is the allocation of the budget among the three media?

Advertisement Alternatives Budget ($)

Television $ ________

Radio $ ________

Newspaper $ _______

What is the total audience reached?__________

(b) By how much would audience contact increase if an extra $100 were allocated to the promotional budget?

Increase in audience coverage of approximately _____________

Reference no: EM131920715

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