Marketing decisions. Refer to the Jewels-4-U example in the book. Now assume that for the second month planning, there are some changes that are being made to the structure. First, the total advertising budget is now down to $30,000 but the media outlets remain the same. The table is shown here again on how the various media outlets contribute to exposure ratings, customer outreach, and related costs and number of advertisements available per month. Advertising Media Potential customers reached Cost ($) per advertisement Maximum Availability per month Exposure Rating (out of 100) 1 Television (1 min) local stations 2000 1000 10 50 2 Television (30 sec) Cable station 5000 4000 5 75 3 Radio (peak traffic times) 800 100 30 25 4 Social Media Ads (customized) 8000 2000 15 80 5 Sunday Newspaper Magazine 1500 1000 4 60 With the slash in the budget, the Marketing Manager decides that in Month 2 it is more critical to focus on the potential customers reached instead of the exposure rating and decides to refocus their efforts under a new direction. Find out what combination of advertising will maximize the customer outreach given the following constraints: The total amount spent on Social Media is still 50% of the total budget The total exposure rating must be higher than 1800 No less than 6 total advertisements should be on TV outlets a. Rewrite the LP to meet these new requirements, run it using Solver, and fill in the following Table to show what the optimal number of ads in each media outlet are for Jewels-4-U company to maximize their customer outreach: Advertising Media Advertisements Placed Television (1 min) local stations ______ ? Television (30 sec) Cable station ______ ? Radio (peak traffic times) ______ ? Social Media Ads (customized) ______ ? Sunday Newspaper Magazine ______ ? b. The total number of customers reached by using this advertisement strategy = _____?
|
|
Advertising Media |
Potential customers reached |
Cost ($) per advertisement |
Maximum Availability per month |
Exposure Rating (out of 100) |
|
1 |
Television (1 min) local stations |
2000 |
1000 |
10 |
50 |
|
2 |
Television (30 sec) Cable station |
5000 |
4000 |
5 |
75 |
|
3 |
Radio (peak traffic times) |
800 |
100 |
30 |
25 |
|
4 |
Social Media Ads (customized) |
8000 |
2000 |
15 |
80 |
|
5 |
Sunday Newspaper Magazine |
1500 |
1000 |
4 |
60 |
With the slash in the budget, the Marketing Manager decides that in Month 2 it is more critical to focus on the potential customers reached instead of the exposure rating and decides to refocus their efforts under a new direction. Find out what combination of advertising will maximize the customer outreach given the following constraints:
- The total amount spent on Social Media is still 50% of the total budget
- The total exposure rating must be higher than 1800
- No less than 6 total advertisements should be on TV outlets
a. Rewrite the LP to meet these new requirements, run it using Solver, and fill in the following Table to show what the optimal number of ads in each media outlet are for Jewels-4-U company to maximize their customer outreach:
|
Advertising Media |
Advertisements Placed |
|
Television (1 min) local stations |
______ ? |
|
Television (30 sec) Cable station |
______ ? |
|
Radio (peak traffic times) |
______ ? |
|
Social Media Ads (customized) |
______ ? |
|
Sunday Newspaper Magazine |
______ ? |
b. The total number of customers reached by using this advertisement strategy = _____?
Decision Variable:
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