Karla Andrea V.

Oñas

IV-CMA

Managerial Report

(ABC Company)

1. The recommended number of television and radio spot announcements

Television Radio
15 25

2. Relative merits(advantages) of each advertising medium

a. Television
 It can attract more viewers to watch the advertisements because you can
convey your message with sight, sound and motion.
 It can give your company/business, product or service instant credibility.
 The business, product or service can be demonstrated or explained very well.
 There’s a big opportunity to reach a large audience especially children and
millennials because nowadays they are more prefer watching television than
listening to radio

b. Radio
 The advertising cost is cheap compare to television.
 It can reach illiterate people who cannot read.
 It can reach far places like barrios in some provinces because the signal of
radio is wider than television.
 The selling price of radio is cheaper than television so low income earners
much prefer to buy radio in order for them to inform and entertain.
 Everywhere you can hear it (for example, if you’re riding in a car you can
listen to it by turning on the radio

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

 The rating should be over or greater than 800 to increase the 600 rating for the
television spots. The allowable maximum rating for television spots is 800 so its
means that any number exceeding to 800 will make television ratings increase.
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.

 The number of television spots to be purchased should be greater than 15 but

less than the number of radio spots which is 25 because you have to consider
one of its constraint that television spots should be lesser than radio spots.

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

 One of restrictions of ABC’s Advertising Company considers altering are the

required spots for both medium. But when altering, company should consider the
advertising budget which is P51, 000. ABC’s Adverting Company can both
increase the total number of spots per medium but it should be in line to their
budget. Even though the television has less spots than radio but it has a high
rating compared to radio because we all know that using television advertisement
is expensive but more effective and catchy to viewers/customers.

6. The best use of any possible increase in the advertising budget

 I suggest that if there’s a possible increase in the advertising budget they should
use it in an effective way like choosing which type of medium of advertising they
will use in promoting. In choosing they have to consider how many people can
watch or hear their advertisements. The advertisement should catch the
audiences’ or viewers attentions, words and messages should instill in their
minds.

7. Any other information that may help ABC’s President makes the advertising strategy
decision.

I suggest that the President should consider:

 The cost that company will incur in choosing the right medium they will promote
their product.
 The quality or the creativity of the presentations so that all ages can adapt to it.
 The person who will deliver the speech or person who will appear in the
advertisements (for example using showbiz/famous personality as an endorser of
your product or service).