Case summary:
For both the television programmers and advertisers it is important to maintain Company N’s ratings because the cost of advertising is based on these ratings. The show’s rating depends upon the number of households. 115 million television households in Country U are taken as sample, where 1 rating point signifies 1 percent of the television market. Therefore, 1 point will be equal to 1.15 million households.
Company N’s television rating is referred to C3, which helps to measure the viewer’s list. The cost per thousand is the common method to calculate the advertising efficiency. Therefore, the numbers play a major role in assessing the efficiency of advertising.
To determine: The number of households that are expected to watch each show.
Introduction:
The activity for communicating, creating, exchanging, and delivering the offerings that are beneficial to the company, customers, shareholders, and society is known as marketing.
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