MARKETING APPLICATIONS

Media Selection problem

LP for selecting Effective

Media Mix
Win Big Club has budgeted up to $8000 per week
for local advertising. The money is to be allocated
among four promotional media: TV spot, newspaper
ads, and two types of radio advertisements. Win
Bigs goal is to reach the largest possible high
potential audience through various media as
follows.
Medium
Audience
Cost per
Maximum Ads
Reached per Ad
Ad
Per Week
TV Spot(1 Minute) 5000 $800 12
Daily newspaper 8500 $925 5
Radio spot(prime time) 2400
$290 25
Radio spot(afternoon) 2800
$380 20

LP for selecting Effective Media

Mix (Contd.)
Win Bigs contractual arrangements require that at least
five radio spot be placed each week. To ensure broad
scoped promotional campaign, management insists that
no more than $1800 be spent on radio advertising every
week.
Let
T = number of TV spots taken each week
N = number of news paper ads taken each week
P = number of prime time radio spots taken each week
A = number of afternoon radio spots taken each week

LP Model
Max z = 5000T + 8500N + 2400P + 2800A
Subject to
800T + 925N + 290P + 380A <= 8000 (weekly advt budget)
P +
A >=
5
(maxm radio spot contracted)
290P + 380A <= 1800 (maxm money spent on radio)
T
<=
12
(maxm TV spots/week)
N
<= 5
(maxm newspaper ads/week)
P
<= 25
(maxm radio prime time/week)
A<=
20
(maxm radio afternoon time/week)
T, N, P, A >=0

(nonegativity)