An advertising company wishes to plan an advertising campaign in two different media: television and radio. The
Question:
An advertising company wishes to plan an advertising campaign in two different media: television and radio. The purpose of the advertising program is to reach as many of the potential customers as possible. Results of a market study are given below:
TV | Radio | |
Cost of an advertising unit | $125,000 | $30,000 |
Number of potential customers reached per unit | 1.3M | 500,000 |
Number of women customers reached per unit | 700,000 | 200,000 |
The company has an advertising budget of $800,000 and has the following goals to achieve in order of importance:
1. At least two million exposures should take place among women.
2. Advertising on television to be limited to $500,000.
3. Achieve a total exposure of three million potential customers.
4. The number of advertising units on radio should be between 5 and 10.
Formulate the advertising problem as a goal program and solve graphically.
Business Statistics a decision making approach
ISBN: 978-0133021844
9th edition
Authors: David F. Groebner, Patrick W. Shannon, Phillip C. Fry