Assignment:
Problem
The Chamber of Commerce periodically sponsors public service seminars and programs. Currently, promotional plans are under way for this year's program. Advertising alternatives include television, radio, and online. Audience estimates, costs, and maximum media usage limitations are as shown:
Constraint Television Radio Online
Audience per advertisement 100,000 16,000 35,000
Cost per advertisement $1,500 $250 $650
Maximum media usage 10 24 14
To ensure a balanced use of advertising media, radio advertisements must not exceed 50% of the total number of advertisements authorized. In addition, television should account for at least 10% of the total number of advertisements authorized.
(a) If the promotional budget is limited to $18,400, how many commercial messages should be run on each medium to maximize total audience contact? What is the allocation of the budget among the three media? What is the total audiance reached?
(b) By how much would audience contact increase if an extra $100 were allocated to the Promotional Increase in audience coverage of approximately.