A company is planning next months an advertising and promotion strategy for marketing one of its products.
Question:
A company is planning next month’s an advertising and promotion strategy for marketing one of its products. It has budgeted $60,000 for advertising. The company has three options available:
a. Place a single ad in the newspaper at a cost of $350. It is expected to reach an estimated 800 potential customers.
b. Buy a single 30-seconds spot on a FM radio at a cost of $1,000. This would reach an estimated 70,000 people.
c. Place an ad in a free circulated magazines such as “Hi” that cost of $500. This would reach an estimated 7,500 people.
Other conditions are given below:
d. Total cost of ad in FM radio and newspaper should not be more than $25,000.
e. Number of ads in newspaper should not be more than 50.
REQUIRED
1. Formulate the above problem as a linear programming problem.
2. Solve it using MS Solver.
Expert Answer:
