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3/2/13

Management By The Numbers (MBTN)

Course: International Marketing Managem ent w ith Marco Protano - Winter 2013 Hult Nanjing | Module: Advertising Metrics | Problem Set ID: 11

COMPANY BACKGROUND: XiaKe Digital, a Chinese manufacturer of electronics, is launching a new advertising campaign spanning both print and TV advertising for their new Music Pod. The local market has a population of 21 million adults. The company purchased a one-page newspaper ad in the Daily News generating 2.5 million impressions and costing $77,900. They also purchased a 30-second TV spot for $288,000 with an adult rating of 13.8 points.

QUESTION 6: What is the average frequency assuming the facts in question 5? 0.00 is INCORRECT.
Time: 0 min, 9 sec

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THE ANSWER AND EXPLANATION (2.5 + (13.8 / 100) * 21) / (2.5 + (.8 * (13.8 / 100) * 21)) = 1.12 [+/- 0.03] Average Frequency = Avg # of impressions per reached individual or (impressions/reach); Calculate total exposures and divide by net reach

QUESTION 5: If 20% of the TV viewers also read the Daily News, what is XiaKe's net reach in millions for a single insertion in each medium?

THE ANSWER AND EXPLANATION 2.5 + (.8 * (13.8 / 100) * 21) = 4.8 [+/- 0.1] Add the reach of the Daily News to (1 - 20%) of the TV reach. QUESTION 4: If XiaKe's competitors purchased TV advertising which delivered 3,000,000 impressions in the same period, what was XiaKe's share of voice assuming XiaKe purchases two newspaper and two TV ads?

THE ANSWER AND EXPLANATION ((21 * (13.8 / 100) * 2) + 2.5 * 2) / ((21 * (13.8 / 100) * 2) + 2.5 * 2 + 3) = 0.783 [+/- 0.023] (78.3%) [+/- 2.3%]

Share of voice = share of impressions = (Brand Advertising / Total Market Advertising); convert to millions. QUESTION 3: What is the cost per thousand impressions of XiaKe Digital's TV advertising? THE ANSWER AND EXPLANATION $288,000 / ((13.8 / 100) * 21 * 1000000 / 1000) = $99.38 [+/- $2.98] Cost of advertising...
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