Tuesday, May 19, 2015

Hover Shoes INC… (An exercise in Primary and Secondary Research)

Introduction:  In Science class, you were given an assignment where you had to use science to improve an existing product.  You had trouble coming up with an idea at first and then it hit you; like a bolt of lightning, HOVER SHOES!!  You felt so good after inventing your Hover Shoes that you decided to buy a lottery ticket and low and behold, you won $500,000!!!

After asking around, you know that there will be high demand for your hover shoes amongst teenagers so you decide to go into business.  You know that you can sell the shoes at a reasonable price and still make a profit.  But how do you get the word out?  Advertise!!

One of the most important and most expensive mediums used to attract consumers is television. Before using this medium, the marketer must be sure that it will reach the largest number of consumers for the least amount of cost. Not only must the marketer know what market this media reaches, but he or she must know when, and what station or network will attract the largest target market.

Primary Data

Part 1: Make a list of your 5 favourite TV shows (if possible) include what days and times that they are on: 

Part 2: Use the sheet provided and ask 10 other teenagers what their 5 favourite TV shows are. 

Secondary Data

Part 3: Go to the following link to view secondary data on how much it costs to advertise on TV (link is on the classroom website) (also use the cost sheet provided)
 


Next, go to the following link showing the top TV rating for last week.


Part 4: Now that you have both primary and secondary market data, it is time to make some decisions.  You need to write a summary saying how much of your $500,000 you will spend making your commercial, what network(s) you will advertise on, and when you will advertise.  You MUST use your data to justify (in writing) why you made the decision you did.  

Cost Chart for TV Advertising


Cost to produce the Commercial

Very low budget:  $1000, make a commercial with your friend in a single afternoon

Low Budget: $5000, making the commercial yourself with some decent editing and music and two ‘cheap’ actors.

Medium Expense: $15,000, you write the script yourself and hire a marketing company to make a cheap but ‘good’ commercial with some good strategies

Expensive: $50,000 hire a company to make you a commercial with some good special effects and cutting edge marketing strategies and computer generation. 

Very Expensive: $100,000 Fully computer generated with custom music jingle, slogan, and a logo

Extremely Expensive:  $250,000 the same as ‘Very Expensive’ but you also get a celebrity in your commercial for 10 of your 30 seconds.

Cost to Advertise on TV

TV NETWORK
Morning
6-11:59 am
Day time
12-5:00 pm
Evening
5 – 8:00 pm
Primetime
8 – 11:00pm
Late Night
12- 6:00 am
Major Networks
ABC/FOX etc

Speciatly Channels
Discovery, History Teletoon, Etc

Local channels,
Weather
Network, TV listings channels, Shopping network etc.
$50,000




$10,000






$2000
$100,000




$15,000






$2500
$150,000




$20,000






$4000
$250,000




$30,000






$5000
$25,000




$7500






$1000


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