Principles Of Marketing
17th Edition
ISBN:9780134492513
Author:Kotler, Philip, Armstrong, Gary (gary M.)
Publisher:Kotler, Philip, Armstrong, Gary (gary M.)
Chapter1: Marketing: Creating Customer Value And Engagement
Section: Chapter Questions
Problem 1.1DQ
Related questions
Question
Please make introduction and background of the study only
Transcribed Image Text:Case 9. GOOD MUSIC BROADCASTING CORPORATION:
Ebb Tide
Engineer Frederick Panganiban was reading the
advertising sales report handed to him by his assistant.
The report contains information consolidated from the
ten radio stations owned and operated by Good Music
Broadcasting Corporation (GMBC). These stations are
located in the various parts of the country.
GMBC headquarters and sales office are located in
Makati. GMBC derives income from advertisements lodged
by companies like San Miguel Corporation, Ayala Life, and
others. The sales office receives the cassette tapes and
written text containing the advertising messages of the
client companies.
The tapes are meant to be played at regular intervals
in all of the ten radio stations operated by GMBC. The
written text is an alternate advertising form read by the
radio announcers at regular intervals. An advertising
message does not exceed one minute. The advertisers are
billed depending on the frequency of exposure of their
messages.
Each station is managed by a station manager who
reports directly to Engineer Panganiban, the general-
manager. The stations are allowed to accept local adver-
tisements subject to availability of slots after accommo-
dating the national advertisers.
A certain portion of the advertising income is credited
to the account of the individual stations depending on the
assignments sent to them by the GMBC headquarters.
The total advertising income of a station consists of the
credited account from the head office plus whatever income
from local advertisers is derived.
Engineer Panganiban is now reviewing the consoli-
dated sales report. He wants some improvement in
operations so that the overall income will increase. He
feels that the sales report is useful, but he believes some
other data may help him make a better decision.
Exhibit A
GOOD MUSIC BROADCASTING CORPORATION
Consolidated Advertising Income
For the Three-Year Period, 1995, 1996 and 1997
(P000)
Station
1. Dagupan
2. Santiago
3. Cabanatuan
4. San Pablo
5. Naga
6. Dumaguete
7. Tacloban
8. Cebu
9. Davao
10. Zamboanga
Total
1995
P15,450
12,338
10,440
8,988
11,048
11,540
12,490
20,465
16,370
13,466
P132,595
Advertising Income
1996
1997
16,998 P 17.038
11,465
10,308
12,444
7,676
12,121
10,001
12.500 12,606
22,030
24,848
17,017
18,644
12,506
11,897
P134,758 P134,602
14,486
6,493
8,788
9,494
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