The advertising director for Diversity Paint and Supply, a chain of four retail stores on Chicago’s North Side, is considering two media possibilities. One plan is for a series of half-page ads in the Sunday Chicago Tribune newspaper and the other is for advertising time on Chicago TV. The stores are expanding their lines of do-it-your-self tools, and the advertising director is interested in an exposure level of at least 40% within the city’s neighborhoods and 60% in the northwest suburban areas.
The TV viewing time under consideration has an exposure rating of 5% in city homes and 3% in the northwest suburbs. The Sunday newspaper has corresponding exposure rates of 4% and 3% per ad. The cost of the half-page advertisement is $925: a television spot costs $2000.
Diversity Paint would like to select the least costly advertising strategy that would meet desired exposure levels.