As Part of a Campaign to Promote Its Annual Clearance

question 28

Multiple Choice

As part of a campaign to promote its annual clearance sale, a company decided to buy television-advertising time on a TV station. Company's television-advertising budget is $102,000. Morning time costs $3,000/minute, afternoon time costs $1,000/minute, and evening (prime) time costs $12,000/minute. Because of previous commitments, the station cannot offer the company more than 7 min of prime time or more than a total of 25 min of advertising time over the 4 wk in which the commercials are to be run. The station estimates that morning commercials are seen by 210,000 people, afternoon commercials are seen by 105,000 people, and evening commercials are seen by 630,000 people. How much morning, afternoon, and evening advertising time should the company buy to maximize exposure of its commercials? What is the maximum number of viewers?

• A) 22 min of morning advertising time, 0 min of afternoon advertising time, 3 min of evening advertising time; 6.51 million viewers
• B) 10 min of morning advertising time, 15 min of afternoon advertising time, 0 min of evening advertising time; 4.4 million viewers
• C) 16 min of morning advertising time, 7 min of afternoon advertising time, 2 min of evening advertising time; 5 million viewers
• D) 15 min of morning advertising time, 3 min of afternoon advertising time, 7 min of evening advertising time; 5.67 million viewers

---

Definitions:

International Strategy

Actions by which companies manage differences across borders to create advantages over their competitors.

Entry Modes

Strategies or methodologies that businesses employ to enter new markets or start operations in different countries, including joint ventures, franchising, and direct exports.

Penetrate

To enter or make a way into a market, sector, or area, often facing barriers or competition.

Foreign Market

Markets outside of a company's home country where it conducts or seeks to conduct business.