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A brand manager estimates that the total target market (in terms of households) is 30 million for an established product. An advertising campaign is planned using 6 television programs. The total estimated audience for each of the programs (A through F), respectively, are: 7 million, 4 million, 3 million, 6 million, 4 million, and 5 million households. In other words, Program A reaches 7 million households from the target market; Program B reaches 4 million households from the target market, etc. Thus, in a 4-week time period, a total of 29 million homes are expected to be exposed to the advertised message at least once.

However, it is quite likely that some of these ad exposures are duplicates, i.e., that some homes may have seen the advertisement while watching Program A and Program B, or while watching Program B and Program C, etc.

In the current problem, this duplication results in the following: Let’s assume that Program A delivers to all 7 million homes. However, Program B reaches only an additional 3 million homes (above and beyond those that have already been reached by Program A). In other words, rather than reaching 4 million “new” households as indicated in paragraph one above, Program B actually reaches only 3 million “new” households. For the remaining programs, let’s further assume that Program C reaches an additional 2 million homes (beyond those reached by Program A or B), Program D reaches an additional 2 million (beyond those reached by Program A, B, or C), Program E reaches an additional 2 million (beyond A, B, C, or D), and Program F reaches an additional 1 million (beyond A, B, C, D, or E).

From the information given above, calculate:

a) reach (expressed as # of households)

b) reach (expressed as a % of the target market)

c) frequency

d) GRP

Operation Management, Management Studies

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