1 / 6

Diversey Paint and Supply Advertising Program for Do-It-Yourself Tools

Diversey Paint and Supply Advertising Program for Do-It-Yourself Tools. A Media Selection Problem 8-6, page 322. ½ page newspaper ad, costing $925 per ad TV ad, costing $2000 per ad No budgetary constraint, objective is to minimize cost of advertising.

uma-wagner
Download Presentation

Diversey Paint and Supply Advertising Program for Do-It-Yourself Tools

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Diversey Paint and SupplyAdvertising Program for Do-It-Yourself Tools A Media Selection Problem 8-6, page 322 Jan White, BUS340

  2. ½ page newspaper ad, costing $925 per ad TV ad, costing $2000 per ad No budgetary constraint, objective is to minimize cost of advertising City audience for TV ad is 5% per ad, 4% for newspaper ad Suburban audience for TV and newspaper ads is 3% for each Desired exposure level is 40% for city, 60% for the NW suburb Media Types and Information Jan White, BUS340

  3. Objective: Select the least costly method that will meet the desired exposure level • Equation: Minimum cost = 925X1 + 2000X2; where X1 is newspaper ads and X2 is television ads • City: 0.04X1 + 0.05X2 >= 0.4 Exposure level (40%) • NW Suburb: 0.03X1 + 0.03X2 >= 0.6 Exposure level (60%) Jan White, BUS340

  4. Equations for City Exposure • 0.04X1 + 0.05X2 >= 0.4 • When X1 = 0, 0.05X2 = 0.4, so X2 = 8 • 8 ads x $2000/ad = $16,000 of cost (TV) • When X2 = 0, 0.04X1 = 0.4, so X1 = 10 • 10 ads x $925/ad = $9,250 of cost (Paper) Jan White, BUS340

  5. Equations for NW Suburb Exposure • 0.03X1 + 0.03X2 >=0.6 • When X1 = 0, 0.03X2 = 0.6, so X2 = 20 • 20 ads x $2000/ad = $40,000 of cost (TV) • When X2 = 0, 0.03X1 = 0.6, so X1 = 20 • 20 ads x $925/ad - $18,500 of cost (Paper) Jan White, BUS340

  6. Comparison and Selection • 40% City exposure costs $16,000 (TV) and $9,250 (Newspaper), with 8 and 10 ads respectively. • 60% NW Suburb exposure costs $40,000 (TV) and $18,500 (Newspaper), with 20 ads of each. • In order to meet the minimum exposure constraint for both the City and the NW Suburb, and to minimize advertising cost, we will select the 20 - ½ page newspaper ads costing $925 each. Jan White, BUS340

More Related