Managerial Report

Perform an analysis of advertising strategy for ABC Computers and prepare a report to ABC’s
president presenting your findings and recommendations. Include (but do not limit your discussion to
a) a consideration of the following:
1. The recommended number of television and radio spot announcements.
The recommended number of television spot announcement is 15, while for the radio is 25 spot
announcements.

2. The relative merits of each advertising medium.

For television, it is computed as 15 x 600 = 9000

For radio, it is computed as 25 x 200 = 5000

3. The news program rating that would be necessary before it would make sense to increase the
number of television spots.

The news program rating that would be necessary before it would make sense to increase
the number of television spots is the optimal rating value of the advertising medium which 14,000.

It is computed 9000 + 5000 = 14,000

4. The number of television spots that should be purchased if the news program is rated highly enough
to make increasing the number of television spots advisable.

ABC Company can purchase up to 800 television spot announcement.

5. The restrictions placed on the advertising strategy that ABC might want to consider relaxing or
altering.

The restriction on the use at least 30 announcements for combined television and radio
coverage can be consider as altering because even without with one advertising medium it can still
achieve spot announcements rating which can be less than 30 annoucement.

The restriction about do not use more than 25 radio announcements and the number of radio
announcements cannot be less than the number of television announcements might be consider to
be altered because