Question 4 options: The Rapid City Chamber of Commerce periodically sponsors pub
ID: 447117 • Letter: Q
Question
Question 4 options:
The Rapid City Chamber of Commerce periodically sponsors public service seminars and programs which are open to the public. Currently, promotional plans are under way for this year’s program. Advertising alternatives include television, radio, and newspaper. Audience estimates, costs, and maximum media usage limitations are shown below:
Television
Radio
Newspaper
Audience per advertisement
80,000
20,000
30,000
Cost per advertisement
$1,600
$250
$540
Maximum media usage limitation
16
25
10
Suppose that the production budget is limited to $37,000. We are limited to run at most 43 Ads in all three mediums combined. We need to determine how many commercial messages should be run on each medium so as to reach as many people in Rapid City as possible.
Television
Radio
Newspaper
Audience per advertisement
80,000
20,000
30,000
Cost per advertisement
$1,600
$250
$540
Maximum media usage limitation
16
25
10
Explanation / Answer
In the modern world, the maximum viewship happens only in the televsion. The are not many people who are using the radio. So, not considering the cost as factor of deterent, it is very important to advertise on the television to get the maximum reach to the public. People read newspapers while they are travelling from one place to another. Most of the population are a travelling population from their residence to their workplace. So also make the maximum usage of the newspapers
Total budget is $37000
By giving maximum ads in television cost incurred = $1600 x 16 = $25600
Maximum utilization of newspapers = $540 x 10 = $5400
Remaing ads could be given in radio = 43- (16+10) = 17
Cost of advertising in radio = $250 x 17 = $4250
Maximum usage of television and newspaper is done while the radio is kept at the bare minimum
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