The Westchester Chamber of Commerce periodically sponsors public service seminars and programs. Currently, promotional plans are under way for this year’s program. Advertising alternatives include television, radio, and on-line. Audience estimates, costs, and maximum media usage limitations are as shown.
Constraint Television Radio Online
Audience advertisement 100,000 18,000 40,000
Cost per advertisement $2000 $300 $600
Maximum media usage 10 20 10
To ensure a balanced use of advertising t a. radio advertisements must not exceed 50% of the total number of advertisements authorized. In addition, television should account for at least 10% of the total number of advertisements authorized. LO 1
a. If the promotional budget is limited to S18.200, how many commercial messages should be run on each medium to maximize total audience contact?
b. What is the allocation of the budget among the three media, and what is the total audience reached? C. By how much would audience contact increase if an extra $100 were allocated to the promotional budget?
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