A Company That Is Introducing a New Product Would Like

Essay

A company that is introducing a new product would like to generate maximum market exposure.The marketing department currently has $100,000 of advertising budget for the year and is considering placing ads in three media: radio,television,and newspapers.The cost per ad and the exposure rating are as follows:
$\begin{array}{lll} &\text { Cost/ad } & \text { Exposure/ad } \\\text { Radio } & \$ 10,000 & 30,000 \text { individuals }\\\text { Television } & \$ 25,000 & 50,000 \text { individuals } \\\text { Newspaper } & \$ 5000 & 20,000 \text { individuals }\end{array}$

The marketing department would like to place twice as many radio ads as television ads.They also would like to place at least 4 ads in each advertising media.What is the optimal allocation to each advertising medium to maximize audience exposure?