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
Exposure Rating / Ad
New Customers / Ad
Cost / Ad
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.