Managerial Report.docx - Table of Content Table of Content...

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Table of Content Table of Content ------------------------------------------------------------------------------------- 2 Section 1: Introduction ----------------------------------------------------------------------------- 3 Section 2: Analysis --------------------------------------------------------------------------------- 4 - 7 Section 3: Recommendation ---------------------------------------------------------------------- 7 - 12 Section 4: Conclusion --------------------------------------------------------------------------------- 12 2
Section 1: Introduction The Flamingo Grill has reached Haskell & Johanson (HJ) advertising firm. To fulfill the performance requirement and concern the budget, HJ will provide a comprehensive performance maximization analysis while satisfying the budget consideration. Additionally, the guidelines and constraints that Flamingo Grill has specially requested will be thoroughly respected. Therefore, HJ will create a lingo analysis while having the explanation well stated. Section 2: Analysis Budget: First thing first, the budget of the advertisement campaign is the most critical consideration, which has been set at $279,000. Exposure Effectiveness: Secondly, HJ has provided the advertising industry exposure effectiveness data to support the evidence. There are three categories suggested to the restaurant, television, radio, and newspaper. Alone with each class, there are three measurements to evaluate the method. (1) Exposure rating per ad, it is a measurement of the reliability of the ad to both existing customer and potential new customers, it is also the higher, the better. (2) New customers per ad, and (3) cost per ad. As in television, it is expected to have an exposure rating of 90, bring 4000 new customers, and cost $10,000 per ad. For radio, the exposure rating is 25, it can bring 2000 new customers, and it costs $3,000 per ad. Lastly, the newspaper has an exposure rating of 10, it can attract 1000 new customers, and costs $1,000. To better understand the information, see the comparison chart (Chart 1) below. 3
Chart 1. Advertising Media Effectiveness Comparison. Advertising Media Exposure Rating per Ad New customers per Ad Cost per Ad Television 90 4000 $10,000 Radio 25 2000 $3,000 Newspaper 10 1000 $1,000 On the other hand, by applying the market size concept, the performance of each media will not be able to maintain its numbers. Specifically, television can retain its current exposure rating of 90, and the 4000 new customers reached per ad for fist 10 usage. After the first 10 ads, the impression benefit will be decreasing to 55 of exposure rating and reach 1500 new customers. Nevertheless, the radio will also have the similar decline after 15 ads. Radio’s exposure rating will drop to 20, and the number of new customers reached is 1200 per ad. Similarly, the newspaper ads can hold its current performance up to 20 ads, and then the exposure rating will decline to 5, and the new number of potential customers attracted is 800 per ad after that. Also, the cost of each media will not change. See Chart 2 to view a complete

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