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Task1. Midtown Motors, Inc. has hired the marketing services firm to develop an advertising policy for promoting Midtown’s second hand-car sales. The marketing firm has suggested that Midtown use spot announcements on both television and radio as the advertising media for the proposed promotional campaign. Advertising policy guidelines are expressed as follows:

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

2. Don’t use more than 25 radio announcements.

3. The number of radio announcements can’t be less than the number of television announcements.

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

Midtown’s president thinks the television station will consider running the Midtown spot announcement on its extremely rated evening news program (at the same cost) if Midtown will consider using additional television announcements.

Managerial Report

Perform an investigation of advertising policy for Midtown Motors, and make a report to Midtown’s president presenting your findings and suggestions. Comprise a consideration of the following:

1. The suggested number of television as well as radio spot announcements.
2. The financial worthiness, relative merits, of each and every advertising medium.
3. The rating which would be essential for the news program before it would make sense to raise the number of television spots.

Financial Accounting, Accounting

  • Category:- Financial Accounting
  • Reference No.:- M93296
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