S and S” which markets toothpaste, must allocate its annual advertising budget of 400,000 dollars for the New York metropolitan area. They can purchase local radio spots at 200 dollars per spot, local TV spots at 1,000 dollars per spot, and local influencers' (with super white teeth) Instagram advertising at 400 TL dollars mentioning the product name. Local contraction requirements specify that they must spend at least 60,000 dollars on TV. Their general cooperative advertising policy prohibits annual influencer expenditures in excess of 100,000 dollars or in excess of 50% of the TV expenditures, whichever is smaller. The payoff from each advertising medium is a function of its audience size and audience characteristics, measured in “audience points”. The radio spots, TV commercials, and influencer mentions are empirically found out to score 60 audience points, 300 audience points, and 540 audience points, respectively. You are asked to allocate this advertising budget so that maximum audience points are achieved
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
S and S” which markets toothpaste, must allocate its annual advertising budget of 400,000 dollars for the New York metropolitan area. They can purchase local radio spots at 200 dollars per spot, local TV spots at 1,000 dollars per spot, and local influencers' (with super white teeth) Instagram advertising at 400 TL dollars mentioning the product name. Local contraction requirements specify that they must spend at least 60,000 dollars on TV. Their general cooperative advertising policy prohibits annual influencer expenditures in excess of 100,000 dollars or in excess of 50% of the TV expenditures, whichever is smaller. The payoff from each advertising medium is a function of its audience size and audience characteristics, measured in “audience points”. The radio spots, TV commercials, and influencer mentions are empirically found out to score 60 audience points, 300 audience points, and 540 audience points, respectively. You are asked to allocate this advertising budget so that maximum audience points are achieved
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