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HINT: Case #52: Following the instructions of the "Major Question", come up with 2 different specific ad plans for your 2 solutions and discuss the pros and cons of each.  Please do the math!

Major Question *

The company wants a mixed-media ad campaign to support this event. How would you prepare an ad plan for the general merchandise manager that costs no more than $40,000?

Case 52 PROMOTING A SALE1

David Ehrlich, Marymount University

A consumer electronic chain in the Washington, D.C., area is planning a big sale in its suburban Virginia warehouse over the three-day President's Day weekend (Saturday through Monday). On sale will be nearly $2 million worth of consumer electronic products, 50 percent of the merchandise sold in the store. The company hopes to realize at least $900,000 in sales during the three days. In the retailer's past experience, the first day's sales were 50 percent of the total. The second day's were 35 percent, and the last day's, 15 percent. One of every two customers who came made a purchase.

It's known that large numbers of people always flock to such sales, some driving as far as 50 miles. They come from all economic levels, but all are confirmed bargain hunters. You're the assistant to the general merchandise manager, who has asked you to plan the event's marketing campaign. You have the following information:

· 1. A full-page Washington Post ad costs $10,000, a half page ad costs S6,000, and a quarter-page ad costs $3,500. To get the maximum value from a newspaper campaign, it's company policy to always run two ads (not necessarily the same size) for such events.

· 2. The local northern Virginia paper is printed weekly and distributed free to some 15,000 households. It costs $700 for a full-page and $400 for a half-page ad.

· 3. To get adequate TV coverage, at least three channels must be used, with a minimum of eight 30-second spots on each at $500 per spot, spread over three or more days. Producing a TV spot costs $3,000.

· 4. The store has contracts with three radio stations. One appeals to a broad general audience aged 25 to 34 years. One is popular with the 18-to-25 group. A classical music station has a small but wealthy audience. Minimum costs for a saturation radio campaign, including production, on the three stations are $8,000, $5,000, and $3,000, respectively.

· 5. To produce and mail a full-color flyer to the store's 80,000 charge customers costs $10,000. When the company used such a mailing piece before, about three percent responded.

Major Question *

The company wants a mixed-media ad campaign to support this event. How would you prepare an ad plan for the general merchandise manager that costs no more than $40,000?