Question 1 Using the information below Advertising Period 0 1 2 3 Print advertising expense $2,500 $2,500 $3,000 $2,500 TV advertising expense $5,000 $5,000 $10,000 $5,000 Direct mail advertising expense $1,500 $1,500 $2,500 $1,500 Sales $100,000 $100,000 $125,000 $110,000 Estimated carry over co e...

PART 1 1 Estimated Carry Over Coefficient 3rd value 1st value1st value x 100 1250001 ...

Question: 1. Using the information below: Advertising Period 0 1 2 3 Print advertising expense $2,500 $2,500

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Question:

1. Using the information below:

Advertising Period	0	1	2	3
Print advertising expense	$2,500	$2,500	$3,000	$2,500
TV advertising expense	$5,000	$5,000	$10,000	$5,000
Direct mail advertising expense	$1,500	$1,500	$2,500	$1,500

Sales	$100,000	$100,000	$125,000	$110,000

Estimated carry-over co-efficient	_____
Total sales effect ($)	_____
Estimated carry-over effect ($)	_____

a. Calculate the carry-over coefficient.
b. Calculate the total sales effect.
c. Calculate the estimated carry-over effect in dollars from an ad run in period 2.

2. Advertising elasticity

Period	1	2	3
Sales	$12.0M	$12.0M	$12.7M
Ad Spend	$175.0MM	$175.0MM	$225.0MM

Elasticity

Expected Sales per %1 increase in ad spend M = Million, MM = thousands

a. Calculate the advertising elasticity for the given data.
b. Based on this elasticity, what is the expected sales impact in dollars for each 1% increase in the ad spend?

3. As the marketing manager for a new line of window coverings, you decide to run an advertising campaign for your product in the following media with the following weekly reach and frequencies.