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A brand manager for a soft drink firm is doing competitive analysis on marketing

ID: 3274861 • Letter: A

Question

A brand manager for a soft drink firm is doing competitive analysis on marketing communications patterns. The firm's major competitor generally uses four means of communication with customers: television advertising, radio advertising, magazine advertising (with coupons), and newspaper advertising inserts (with coupons). The total number of each used over the last two months for the competitor's regular and diet drinks is as follows.

Television

Radio

Magazines

Newspapers

Total

Regular

110

52

7

36

205

Diet

80

85

4

48

217

Total

190

137

11

84

422

What is the probability the competitor uses television advertising, regardless of the brand?

.123

.333

.450

.514

What is the probability that any given communication is for the diet product?

.123

.333

.450

.514

What is the probability that a communication will be on radio and about the regular product?

.123

.333

.450

.514

What is the probability that a communication will be a newspaper coupon for the diet product?

.114

.210

.225

.421

What is the probability that a print communication is used (magazine or newspaper)?

.114

.210

.225

.421

What is the probability that a print communication is used given that the regular product is being featured?

.114

.210

.225

.421

What is the probability that a communication will be for the diet product given that it is on television?

.114

.210

.225

.421

Television

Radio

Magazines

Newspapers

Total

Regular

110

52

7

36

205

Diet

80

85

4

48

217

Total

190

137

11

84

422

Explanation / Answer

The probability the competitor uses television advertising, regardless of the brand will be

190 / 422 = 0.450

The probability that any given communication is for the diet product will be

217 / 422 = 0.514

The probability that a communication will be on radio and about the regular product will be

52 /422 = 0.123

The probability that a communication will be a newspaper coupon for the diet product will be

48 /422 = 0.114

The probability that a print communication is used (magazine or newspaper) will be

(11+84 ) /422 = 0.225

The probability that a print communication is used given that the regular product is being featured will be

(7+36 ) / 205 = 0.210

The probability that a communication will be for the diet product given that it is on television will be

80 /190 = 0.421