A firm is working on developing its marketing strategy for a product and accordingly, wishes to determine the number of ads to be placed in each advertising medium per month. The total monthly advertising budget is $1,000,000. The following choices are available:
|
Advertising Medium
|
Cost/Ad
|
Expected Exposure/Ad
|
|
Television
|
$50,000
|
1,000
|
|
Radio
|
$5,000
|
300
|
|
Newsweek
|
$300
|
20
|
|
SF Chronicle
|
$200
|
15
|
The firm decides that television advertising should be limited to $500,000 per month. Its objective is to maximize the total expected exposure per month.