Find minimum to spend in promotion to earn awareness


Baldwin's Elite product Bold has an awareness of 72%. Baldwin's Bold product manager for the Elite segment is determined to have more awareness for Bold than Andrews' Elite product Abby. She knows that the first $1M in promotion generates 22% new awareness, the second million adds 23% more and the third million adds another 5%. She also knows one-third of Bold's existing awareness is lost every year. Assuming that Abby's awareness stays the same next year (77%), out of the promotion budgets below, what is the minimum Baldwin's Elite product manager should spend in promotion to earn more awareness than Andrews' Abby product?

2M
Nothing
1M
3M

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Microeconomics: Find minimum to spend in promotion to earn awareness
Reference No:- TGS042560

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