A Company That Is Introducing a New Product Would Like

question 4

Essay

A company that is introducing a new product would like to generate maximum market exposure.The marketing department currently has $100,000 of advertising budget for the year and is considering placing ads in three media: radio,television,and newspapers.The cost per ad and the exposure rating are as follows:
$\begin{array}{lll} &\text { Cost/ad } & \text { Exposure/ad } \\\text { Radio } & \$ 10,000 & 30,000 \text { individuals }\\\text { Television } & \$ 25,000 & 50,000 \text { individuals } \\\text { Newspaper } & \$ 5000 & 20,000 \text { individuals }\end{array}$

The marketing department would like to place twice as many radio ads as television ads.They also would like to place at least 4 ads in each advertising media.What is the optimal allocation to each advertising medium to maximize audience exposure?

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Definitions:

Vicarious Response

A reaction experienced in response to observing another person's experiences or emotions.

Learning

The acquisition of knowledge, skills, values, or behaviors through study, experience, or teaching.

Permanent Change

A lasting alteration in behavior, situation, or environment that does not revert back to its original state.

Cognition

The act of learning and comprehending by using one's thoughts, experiences, and sensory inputs.