The store is set to open at the start of the new year (with a Grand Opening
Question:
The store is set to open at the start of the new year (with a Grand Opening scheduled to be held on February 1). You have the following information:
Medium | Costs | Production Time | Special Notes |
Television | 6pm-10pm= $750 10pm-2am=$500 2am-6am=$150 6am-10am=$350 10am-2pm=$350 2pm-6pm=$400 | 4 weeks for professional shooting and editing | Each occurrence represents a 1-time, 30-second advertisement cost |
Radio | 6pm-10pm=$225 10pm-2am=$100 2am-6am=$25 6am-10am=$250 10am-2pm=$200 2pm-6pm=$275 | 1 week for recording and editing | Each occurrence represents a 1-time, 30-second advertisement cost |
Yellow Pages | 1,500 | Takes 3 weeks for next edition to be released | Advertisement will run for 6 months (until new edition comes out) |
Direct Mail | $4,000 for 5,000 households | Takes 2 weeks for distribution | Only sold in bulk mailing sets of 5,000 households (approximately the number of individuals in a ZIP Code) |
Online Banner on local media website (WTOL, Toledo Blade, News Messenger, etc.) | $5,000 | Can be displayed in one week | Featured location on the website to run consistently for one month |
Newspaper Classified | $450 | Instantly ready to run | 3-line classified to run for one 7-day week |
Local Fremont magazine | $750 | Will appear in next monthly issue | page advertisement |
You have $10,000 to spend on advertising to attract the public to your store for its February 1 "Grand Opening". Discuss how you would spend your advertising budget and why chose your particular strategy. Please be as specific as possible about discussing how you allocated your budget (e.g., if you chose television, discuss which channels would be appropriate for target marketing and why you felt TV would be worthy of your money).
Business Statistics
ISBN: 9780321925831
3rd Edition
Authors: Norean Sharpe, Richard Veaux, Paul Velleman