Wisconsin State University Is Planning to Advertise Its New Degree

question 43

Essay

Wisconsin State University is planning to advertise its new degree program in Professional Business in several media--television commercials on the local cable station, advertisements in the local community college newspaper, and manning a booth at the county fair.Preliminary estimates are that each television spot will reach 1000 potential students, each newspaper ad will reach 100 potential students, and each day at the county fair will reach 500 potential students.There is a $7500 advertising budget, and the university has negotiated a rate of $825 per ad on the cable station, $85 per ad in the newspaper, and $1150 for a booth at the 3-day county fair.What should be its advertising strategy?

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Definitions:

529 Plan

A tax-advantaged savings plan designed to encourage saving for future education costs, including tuition, fees, and room and board.

Annual Return

The percentage change in an investment's value over a one-year period, taking into account both capital gains and dividend or interest earnings.

Roth IRA

A type of individual retirement account where contributions are made with after-tax dollars, but withdrawals during retirement are tax-free.

Traditional IRA

A Traditional Individual Retirement Account (IRA) is a type of retirement savings account that allows an individual to make pre-tax contributions, with the investments growing tax-deferred until withdrawals begin at retirement age.