OR_Group5 - OPERATIONS RESEARCH Planning an Advertising...

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OPERATIONS RESEARCHPlanning an Advertising Campaign
Case SummaryThe Flamingo Grill is an upscale restaurant located in St. Petersburg, Florida and it hired an advertising firm Haskell and Johnson (HJ) to help plan an advertising campaign for the coming season. The budget was set at $279,000 and the management asked how the advertising budget had to be distributed across television, radio, and newspaper advertisements.Advertising MediaExposure Rating/AdNew Customers/AdCost/AdTelevision904000$10,000Radio252000$3000Newspaper101000$1000Exposure rating: Measure of the value of the ad to both existingcustomers and potential new customers. It is a function of such things as image, message recall, visual and audio appeal, and so on. As expected, the more expensive television advertisement has the highest exposure effectiveness rating along with the greatest potential for reaching new customers.
Objective: Maximizing the total exposure rating across all mediaBecause of management's concern with attracting new customers, management stated that the advertising campaign must reach at least 100,000 new customers. To balance the advertising campaign and make use of all advertising media, Flamingo's management team had to develop a model.

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