Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Financial Management Expert

Advertising Strategy Case Problem- I can't seem to get the numbers right with this problem. Can someone show me step-by-step how to solve this problem?

Duke Motors, Inc., has hired a marketing services firm to develop an advertising strategy for promoting Duke’s used car sales. The marketing firm has recommended that Duke use spot announcements on both television and radio as the advertising media for the proposed promotional campaign. Advertising strategy guidelines are expressed as follows:

-Use at least 30 announcements for combined television and radio coverage.

-Do not use more than 25 radio announcements.

-The number of radio announcements cannot be less than the number of television announcements.

The television station has quoted a cost of $1200 per spot announcement, and the radio station has quoted a cost of $300 per spot announcement. Duke’s advertising budget has been set at $25,500. The marketing services firm has rated the various advertising media in terms of audience coverage and recall power of the advertisement. For Duke’s media alternatives, the television announcement is rated at 600 and the radio announcement is rated at 200. Duke’s president would like to know how many television and how many radio spot announcements should be used to maximize the overall rating of the advertising campaign.

Duke’s president believes that the television station will consider running the Duke spot announcement on its highly rated evening news program (at the same cost) if Duke will consider using additional television announcements.

MANAGERIAL REPORT

Perform an analysis of advertising strategy for Duke Motors and prepare a report to Duke’s president presenting your findings and recommendations. Include, but do not limit your discussion to, a consideration of the following items.

1) The recommended number of television and radio spot announcements.

2) The relative merits of each advertising medium.

3) The rating that would be necessary for the news program before it would make sense to increase the number of television spots.

4) The number of television spots that should be purchased if the news program is rated highly enough to make increasing the number of television spots advisable.

5) The restrictions placed on the advertising strategy that Duke might want to consider relaxing or altering.

6) The best use of any possible increase in the advertising budget.

7) Any other information that may help Duke’s president make the advertising strategy decision.

Can you also include?

- a formulation of the problem with decision variables clearly defined

-a copy of your spreadsheet with formulas exposed;

- the answer report (generated by Solver)

- the sensitivity report (generated by Solver).

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M91419496

Have any Question?


Related Questions in Financial Management

Assignmentnow that you have gained an understanding of red

Assignment Now that you have gained an understanding of Red Carpet, Leroy has asked you to join in on a preliminary meeting with the VP of HR and other members of the organization to discuss change. The meeting was very ...

Hedging assignment -your portfolio a stock is currently

Hedging Assignment - Your portfolio: A stock is currently trading at 55. You hold a portfolio of the following instruments: Long 200 shares of stock Long 200 puts with a strike of 50 and maturity of three months (T=13/52 ...

Assignment for pogo managing government finances -the

Assignment for POGO Managing Government Finances - The assignment questions are drawn from topics that may ask you to integrate the topics covered across the entire course - or certainly link different topics together in ...

Assignment all assignments should be written in your own

Assignment All assignments should be written in your own words and provide examples and opinions beyond the textbook or any other source you get them from. I will be looking for more of your opinions and examples beyond ...

Answer the following question q1 what is economics and why

Answer the following Question : Q.1. What Is Economics, and Why Is It Important? Q.2. How Economists Use Theories and Models to Understand Economic Issues.

Discuss the following select a company that has been in the

Discuss the following : Select a company that has been in the news for ethical violations (for example, Enron). Assess the following in 525 to 700 words: Identify the alleged ethical violations. Determine why the violati ...

Assignment objectives amp requirements1 to create a new

Assignment Objectives & Requirements: 1. To create a new E-commerce business, which is located in the Kingdom of Saudi Arabia, which include the followings: a. Introduction about your business. b. Product and type of ser ...

Question 1youre asked to assess whether your corporation

Question 1. You're asked to assess whether your corporation should invest in a long-term capital project. You calculate the payback period and NPV. Give an example of a specific recommendation you could make based on the ...

Time value 21 gronkrobkowski has asked your help in

Time Value 2 1. GronkRobkowski has asked your help in deciding between two contract offers made by the Patriots.  The first is a four year contract with a $10 M signing bonus today, and salaries starting next year for $1 ...

Project risk finance and monitoring assignment -

Project risk, finance, and monitoring Assignment - Report Assessment Description - In this assessment in Part A students are asked to imagine they have been engaged by an external client to develop a report on key aspect ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As