Linear Programming Problem 5-31-13 (1) - Flamingo Grill...

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Flamingo Grill Advertising Allocation Strategy he Flamingo Grill is an upscale restaurant located in St. Petersburg, Florida. To help plan an advertising campaign for the coming season, Flamingo's management team hired the advertising firm of Haskell & Johnson (HJ). The management team requested HJ's recommendation concerning how the advertising budget should be distributed across television, radio, and newspaper advertisements. The budget has been set at $279,000. In a meeting with Flamingo's management team, HJ consultants provided the following information about the industry exposure effectiveness rating per ad, their estimate of the number of potential new customers reached per ad, and the cost for each ad. Advertising Media Exposure Rating / Ad New Customers / Ad Cost / Ad Television 90 4000 $10,000 Radio 25 2000 $ 3,000 Newspaper 10 1000 $ 1,000 The exposure rating is viewed as a measure of the value of the ad to both existing customers 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

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