Sue Strand manages a professional theater group in a major city. Her marketing plan is focused on
Question:
Sue Strand manages a professional theater group in a major city. Her marketing plan is focused on generating additional local demand for plays and increasing ticket revenue, and also gaining attention to the national level to build awareness of the theater group across the country. She has $35,000 to spend on media advertising. The goal of the advertisement campaign is to generate as much local recognition as possible while reaching at least 4,500 units national exposure. She has set a limit of 125 total ads.
Additional information shown in the table to the right. The last column sets limits on the number if ads to ensure that the advertising markets do not become saturated.
a. Find the optimal number of ads of each type to run to meet the choir’s goals by developing and solving an integer optimization model.
b. What if she decides to use no more than six different types of ads? Modify the model in part (a) to answer this question.
Media | Price | Local exposure | National exposure | Limit |
Downtown magazine ad | $55.00 | 35 | 0 | 15 |
FM radio spot | $80.00 | 110 | 40 | 30 |
Hometown paper online ad | $410.00 | 400 | 70 | 10 |
Local TV ad | $500.00 | 350 | 15 | 24 |
MetroWeekly ad | $225.00 | 65 | 8 | 24 |
Neighborhood paper ad | $300.00 | 175 | 40 | 10 |
Social Media ad | $175.00 | 20 | 95 | 20 |
Theater Journal website ad | $350.00 | 10 | 75 | 12 |
Advertising budget | $ 35,000.00 | |||
Exposure Target | 4500 | |||
Total ad limit | 125 |