Reference no: EM132467406
Point 1: You have been hired by Bauer Hockey, LLC a leading hockey equipment company. Bauer was recently purchase by Sagard Holdings and management is trying to develop better decision-making processes to improve financial performance. Management has brought you the following problems to model and solve in Excel.
Point 2: The Mission Roller Hockey brand is trying to determine the next month's web marketing plan. The marketing team is looking at buying general ads from Google and Facebook and more targeted ads through ESPN and hockey news sites.
Point 3: They have done some research on the effectiveness of ads in three of the web sites. The following table describes the cost of each ad and exposures at various numbers of ads. They typically see a decrease in exposures as more ads are run, therefore the pricing gets cheaper as more ads are run.
Exposures per ad
# of ads website1 website2 website3
0-100 20000 1300 1600
101-200 18000 1000 1350
201-300 14000 900 1100
301+ 13000 800 960
Cost per ad
0-100 6.05 0.35 0.49
101-200 5.39 0.30 0.41
201-300 4.36 0.27 0.34
301+ 3.85 0.25 0.30
Point 4: A Facebook ad results in 800 exposures at a cost of $0.24 per ad, a Google ad results in 925 exposures at a cost of $0.28 per ad. There is no decrease in price or exposures for additional ads on Facebook or Google. They have a budget of $12,000 to spend next month. They want to make sure that at least 10% of the total exposures come from ESPN.com, In-Line Hockey Central and Roller Hockey News combined.
Question 1: how would you set up an excel model to determine an optimum marketing strategy to maximize total exposures?
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