Radio and Newspaper Advertisements - Research Paper Example

Body shock ltd used an average of 7573.07 pounds to advertise using radio last year in five branches. During the same period, some 8367.69 pounds on average were used in the same branches. The profit realized after using the two means was 676,727.33 pounds. The lowest profit realized was 30, 6240 pounds while the highest was 1,077,445 pounds. The branch which used the little funds on radio adverts used 3,584 pounds while the highest used 11,162. In newspapers, the highest amount spent in a branch was 12,514 pounds while as little as 4,506 pounds was spent by a branch.

  Radio advertisements alone have a significant contribution to the profit of the company. Expenditure of 1 pound contributes about 81 pounds of profit.  Likewise, taking newspaper adverts alone, the contribution is significant although to the negative side in profit growth. It has a contribution of -10.026 which is significant. The regression equation can be written as below.  When radio and newspaper advertisements are combined together, newspaper adverts have no significant contribution at all.

Radio advertisements contribute a lot to profit. The regression equation is as below, From the above analysis, the expenditures by Body shock ltd in advertisement using both radio and newspapers are the same. However, it is evident that radio is more effective than the newspapers in terms of contribution to the profits of the organization. Also, from tables 7 & 8, it is evident that the contribution of newspapers is negligible since the profits for radio advertisements alone equals the overall profits.

  In this regard, the company can do away with newspaper advertisements and still record-high profits or it can minimize newspaper advertisements and maximize the use of the radio. In so doing, profit margins will be more and sustainable. The null is rejected thus the conclusion that the two methods have different impacts on the profits.The expenditures on newspaper advertisements were not normally distributed at all and revolved around the means.