Will-Advertise is a business that is seeking to expand its market share and sales and its...

  

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Will-Advertise is a business that is seeking to expand its market share and sales and its management is in the process of developing the planned advertising programme. Previous research has indicated that a pattern exists in terms of the reach and responses to advertising. For example, radio advertisements tend to reach a total of 2,700 persons per unit. Of those reached, 70% will have an attitudinal change to the brand. It was also found that 55% of the audience that experienced an attitudinal change will purchase the brand. The following information was provided on the four media that will be utilised based on the previous research: Television Radio Newspaper Option 1 Option 2 4,900 45 20 Reach (no. person reached per unit) Attitudinal effect (opinion influencing %) Behaviour (no. of persons purchasing %) 45 55 65 A variety of media has to be utilised to achieve the company's goals since the maximum amount of the targeted population that any media tools would reach if employed solely is 45%. The media options under consideration are: 65 2,700 20 15 The following advertising cost information has been provided: Advertising creation costs 70 20 50 1,680 318,000 55 Cost (unit) Target market size No. of units purchased per person Price of one (1) Television 9,700 Radio Newspaper 5,950 3,980 475,100 3 17.35 8.56 Cost of one (1) Calculate return on investment (ROI) for each option and advise the client. Will-Advertise is a business that is seeking to expand its market share and sales and its management is in the process of developing the planned advertising programme. Previous research has indicated that a pattern exists in terms of the reach and responses to advertising. For example, radio advertisements tend to reach a total of 2,700 persons per unit. Of those reached, 70% will have an attitudinal change to the brand. It was also found that 55% of the audience that experienced an attitudinal change will purchase the brand. The following information was provided on the four media that will be utilised based on the previous research: Television Radio Newspaper Option 1 Option 2 4,900 45 20 Reach (no. person reached per unit) Attitudinal effect (opinion influencing %) Behaviour (no. of persons purchasing %) 45 55 65 A variety of media has to be utilised to achieve the company's goals since the maximum amount of the targeted population that any media tools would reach if employed solely is 45%. The media options under consideration are: 65 2,700 20 15 The following advertising cost information has been provided: Advertising creation costs 70 20 50 1,680 318,000 55 Cost (unit) Target market size No. of units purchased per person Price of one (1) Television 9,700 Radio Newspaper 5,950 3,980 475,100 3 17.35 8.56 Cost of one (1) Calculate return on investment (ROI) for each option and advise the client.