A marketing firm with a budget of $10,000 for a new campaign must choose one advertising channel and one target demographic to maximize conversions. The effectiveness of channels and conversion rates are provided below: **Channel Effectiveness (Reach per $1000 spent):** * Social Media: 5,000 people * TV Ads: 8,000 people **Demographic Conversion Rate (per 1,000 people reached):** * Young Adults: 1.5% * Professionals: 2.0% **Part 1:** Which advertising channel should be chosen to maximize conversions? **Part 2:** Which target demographic should be chosen to maximize conversions?
✓ Correct Answer: Option D
Calculate total conversions for each combination with $10,000. Social Media: 50,000 reach. Young Adults: 50*1.5=750. Professionals: 50*2=1,000. TV Ads: 80,000 reach. Young Adults: 80*1.5=1,200. Professionals: 80*2=1,600. Max conversions are with TV Ads and Professionals.