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    LP - Marketing Case Study

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    Kavya Gopakumar
    This document presents three case studies for marketing campaigns involving linear programming models. Case Study 1 involves an advertising company choosing between television, radio, and magazine advertising to maximize customer reach within a Rs. 8,00,000 budget. Case Study 2 involves a businessman choosing between television, radio, newspaper, and magazine advertising to maximize exposure to different income families. Case Study 3 involves an advertising agency choosing between three media to maximize effective exposure based on target customer characteristics and their weightages.

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    LP - Marketing Case Study

    Uploaded by

    Kavya Gopakumar
    296 views3 pages
    This document presents three case studies for marketing campaigns involving linear programming models. Case Study 1 involves an advertising company choosing between television, radio, and magazine advertising to maximize customer reach within a Rs. 8,00,000 budget. Case Study 2 involves a businessman choosing between television, radio, newspaper, and magazine advertising to maximize exposure to different income families. Case Study 3 involves an advertising agency choosing between three media to maximize effective exposure based on target customer characteristics and their weightages.

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    LP_Marketing Case Study

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    This document presents three case studies for marketing campaigns involving linear programming models. Case Study 1 involves an advertising company choosing between television, radio, and magazine advertising to maximize customer reach within a Rs. 8,00,000 budget. Case Study 2 involves a businessman choosing between television, radio, newspaper, and magazine advertising to maximize exposure to different income families. Case Study 3 involves an advertising agency choosing between three media to maximize effective exposure based on target customer characteristics and their weightages.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    296 views3 pages

    LP - Marketing Case Study

    Uploaded by

    Kavya Gopakumar
    This document presents three case studies for marketing campaigns involving linear programming models. Case Study 1 involves an advertising company choosing between television, radio, and magazine advertising to maximize customer reach within a Rs. 8,00,000 budget. Case Study 2 involves a businessman choosing between television, radio, newspaper, and magazine advertising to maximize exposure to different income families. Case Study 3 involves an advertising agency choosing between three media to maximize effective exposure based on target customer characteristics and their weightages.

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    Case Study-1: Marketing

    Alpha-Beta advertising company wishes to plan an advertising campaign for three different
    media: television, radio and a magazine. The purpose of the advertising is to reach many
    potential customers as possible. The following are the results of a market study:

    Television Radio(Rs.) Magazine(Rs.)


    Prime day Prime Time
    (Rs.) (Rs.)
    Cost of an advertising 40,000 75,000 30,000 12,500
    /unit
    Number of potential 4,00,000 9,00,000 5,00,000 2,00,000
    customers reached per
    unit
    Number of women 3,00,000 4,00,000 2,00,000 1,00,000
    customers reached per
    unit

    The company does not want to spend more than Rs.8, 00,000 on advertising. It is further
    required that
    (i). at least 1,125,000 exposure take place amongst women
    (ii). The cost of advertising on television be limited to Rs.5, 00,000
    (iii).at least 3 advertising units be bought on prime day and two units during prime time.
    (iv). The number of advertising units on the radio and the magazine should each be between 5
    and 10.
    Formulate this problem as an LP model to maximize potential customer reach.
    Case Study-2: Marketing
    A businessman is opening a new restaurant and has budgeted Rs 8, 00,000 for advertisement,
    for the coming month. He is considering four types of advertising:
    (i). 30 second television commercials
    (ii). 30 second radio commercials
    (iii). Half-page advertisement in a newspaper
    (iv). Full-page advertisement in a weekly magazine which will appear four times during the
    coming month.
    The owner wishes to reach families (a) with income over Rs 50,000 and (b) with income
    under Rs 50,000. The amount of exposure of each media to families of type (a) and (b) and
    the cost of each media is shown below:

    To have a balanced campaign, the owner has determined the following four restrictions:
    (i).there should be no more than four television advertisements
    (ii). there should be no more than four advertisements in the magazine
    (iii). there should not be more than 60 per cent of all advertisements in newspaper and
    magazine put together.
    (iv). there must be at least 45, 00,000 exposures to families with annual income of over Rs
    50,000.
    Formulate this problem as an LP model to determine the number of each type of
    advertisement to be given so as to maximize the total number of exposures.
    Case Study-3: Marketing
    An advertising agency is preparing an advertising campaign for a group of agencies. These
    agencies have decided that different characteristics of their target customers should be given
    different importance (weightage). The following table gives the characteristics with their
    corresponding importance (weightage).

    The agency has carefully analyzed three media and has compiled the following data:

    The budget for launching the advertising campaign is Rs 50, 00,000. Formulate this problem
    as an LP model for the agency to maximize the total expected effective exposure.
    Note:
    3 N
    Effectiveness co-efficient =  a w
    j 1 i 1
    i j

    ai : Data item of ith reader characteristics


    w j : Weightage of jth characteristics

    Effective exposure = Effectiveness co-efficient × Audience size

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