Stu's MMM has recently experienced a sales decline due to the entry of a lower- priced competitor, Kelly's KCC. Stu is convinced that an advertising campaign touting the superior design and three-year warranty will help recover share. He places advertisements in the new york times and Wall Street journal newspapers. NYT claims a single- issue audience of 270,000 while WSJ claims that one issue will reach 202,000. NYT's audience is 14% college professors and only 42% business people. WSJ shows stu research that business people are 50% of their readership, 18% are farmers, and 6% are college professors. NYT charges $13,500 per quarter page ad, while WSJ charges $7,070. Assume that only one impression shall be made for one readership.
1) If 20% of the college professors who read the WSJ also read the NYT, what is the net reach of college professors achieved by placing a single ad in both the WSJ and NYT?
1)
Net reach of college professors = Reach through NYT + Reach through WSJ - who read WSJ and also read NYT
= 14%*270000 + 6%*202000 - (6%*20%*202000)
= 47496
Stu's MMM has recently experienced a sales decline due to the entry of a lower- priced competitor, Kelly's KCC. Stu is convinced that an advertising campaign touting the superior design and th...