Question: Media selection applications of linear programming are designed to help marketing managers allocate a fixed advertising budget across various advertising media. Potential media include newspaper,

Media selection applications of linear programming are designed to help marketing managers allocate a fixed advertising budget across various advertising media. Potential media include newspaper, magazine, radio, television, and direct mail. In most of these applications the objective is the maximization of audience exposure. Restrictions on the allowable allocation usually arise through considerations such as company policy, contract requirements, and availability of media. In the application that follows we illustrate how a media selection problem might be formulated and solved using a linear programming model. Consider the case of the Relax-and-Enjoy Lake Development Corporation. Relax-and-Enjoy is developing a lakeside community at a privately owned lake and is in the business of selling property for vacation and/ or retreat cottages. The primary market for these lakeside lots includes all middle- and upper-income families within approximately 100 miles of the development. Relax-and-Enjoy has employed the advertising firm of Boone, Phillips and Jackson to design the promotional campaign for the project. After considering possible advertising media and the market to be covered, Boone has made the preliminary recommendation to restrict the first month's advertising to five sources. At the end of the month, Boone will then reevaluate its strategy based upon the month's results. Boone has collected data on the number of potential purchase families reached, the cost per advertisement, the maximum number of times each medium is available, and the expected exposure for each of the five media. The expected exposure is measured in terms of an exposure unit, a measure of the relative value of one advertisement in each of the media. These measures, based on Boone's experience in the advertising business, take into account such factors as audience profile (age, income, and education of the audience reached), image presented, and quality of the advertisement. The information collected is presented in the table below. Relax-and-Enjoy has provided Boone with an advertising budget of $30,000 for the first month's campaign. In addition, Relax-and-Enjoy has imposed the following restrictions on how Boone may allocate these funds: At least 10 television commercials must be used, and at least 50,000 potential purchasers must be reached during the month. In addition, no more than $18,000 may be spent on television advertisements. What advertising media selection plan should the advertising firm
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