#3) The advertising director of a large retail store in Lima, Ohio, is considering three advertising possibilities: ads in the Sunday Lima Dispatch, ads in a local trade magazine that is distributed free to all houses in the city and northwest suburbs, and ads on Lima's WLIO-TV station. She wishes to obtain a new-customer exposure level of at least 50% within the city and 60% in the northwest suburbs. Each TV ad has a new customer exposure level of 4.5% in the city and 2.75% in the northwest suburbs. The dispatch ads have corresponding exposure levels per ad o and 3% respectively, while the trade magazine has exposure levels per ad is 0.7570 ane nd respectively. The relevant costs are $900 per dispatch ad, $300 per trade magazine ad, and $1,800 per TV ad. The advertising policy is that no single media type should consume more ulan 40% of the total amount spent. Find the advertising strategy that will meet the store's objective at minimum cost.

#3) The advertising director of a large retail store in Lima, Ohio, is considering three advertising possibilities: ads in the Sunday Lima Dispatch, ads in a local trade magazine that is distributed free to all houses in the city and northwest suburbs, and ads on Lima's WLIO-TV station. She wishes to obtain a new-customer exposure level of at least 50% within the city and 60% in the northwest suburbs. Each TV ad has a new customer exposure level of 4.5% in the city and 2.75% in the northwest suburbs. The dispatch ads have corresponding exposure levels per ad o and 3% respectively, while the trade magazine has exposure levels per ad is 0.7570 ane nd respectively. The relevant costs are $900 per dispatch ad, $300 per trade magazine ad, and $1,800 per TV ad. The advertising policy is that no single media type should consume more ulan 40% of the total amount spent. Find the advertising strategy that will meet the store's objective at minimum cost.

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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#3) The advertising director of a large retail store in Lima, Ohio, is considering three advertising
possibilities: ads in the Sunday Lima Dispatch, ads in a local trade magazine that is distributed
free to all houses in the city and northwest suburbs, and ads on Lima's WLIO-TV station. She
wishes to obtain a new-customer exposure level of at least 50% within the city and 60% in the
northwest suburbs. Each TV ad has a new customer exposure level of 4.5% in the city and 2.75%
in the northwest suburbs. The dispatch ads have corresponding exposure levels per ad o
and 3% respectively, while the trade magazine has exposure levels per ad is 0.7570 ane nd
respectively. The relevant costs are $900 per dispatch ad, $300 per trade magazine ad, and
$1,800 per TV ad. The advertising policy is that no single media type should consume more ulan
40% of the total amount spent. Find the advertising strategy that will meet the store's objective at
minimum cost.

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