LP1[1] (1) - Group 35 1 The Flamingo Grill Is an upscale...

This preview shows page 1 - 2 out of 3 pages.

Group 35 1 The Flamingo Grill Is an upscale restaurant located in St. Petersburg, Florida and 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. 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 rating along with the greatest potential for reaching new customers. Flamingo's management team accepted maximizing the total exposure rating , across all media, as the objective of the advertising campaign. Because 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 also adopted the following guidelines. Use at least twice as many radio advertisements as television advertisements.

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture