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Total78$279,000Total Exposure: 2160Total New Customers Reached: 127,100 2. The shadow price for the budget constraint is 0.0055. So, if an additional $10,000 were added to the advertising budget, total exposure will increase by 55 points.3. The recommended solution is not very sensitive to the exposure rating coefficients. For example, there is a huge difference in the new customers reached and number of ads suggested in the part 1 and 4 schedules, butthe total exposure does not change as drastically.4. Advertising Schedule: MediaNumber of AdsBudgetTelevision14$140,000Radio28$84,000Newspaper55$55,000Total97$279,000Total Exposure: 2130Total New Customers Reached: 139,6005. I would recommend using the advertising schedule from part 4 instead of the original schedule because more new customers would be reached and the exposure would only decrease by 30 points.
AppendixPlease see the attached Excel documents.Initial ExposureAfter Initial ExposureAdvertisingMediaExposureRating perAdNewCustomersper AdCostper AdAdvertisingMediaExposureRating perAdNewCustomersper AdCost per AdTelevision904000$10,000Television551500$10,000Radio252000$3,000Radio201200$3,000Newspaper101000$1,000Newspaper5800$1,000Exposure rating and new customers reached decreases after10 TV ads, 15 radio ads, and 20 newspaper ads.New Customers Reached > 100,000Advertising Budget= $279,000; (Television ads > $140,000; Radio ads < $99,000; Newspaper ads > $30,000)Decision Variables: