Managerial report develop a model that can be used to

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Managerial Report Develop a model that can be used to determine the advertising budget allocation for the Flamingo Grill. Include a discussion of the following items in the report: 1. A schedule showing the recommended number of television, radio and internet advertisements and the budget allocation for each medium. Show the total exposure and indicate the total number of potential new customers reach. 2. A discussion of how the total exposure would change if an additional $10,000 were added to the advertising budget. Advertising Media Television Radio Newspaper T1 T2 R1 R2 N1 N2 Recommended Number of Ads 10 5 15 18 20 10 Max Total Exposure Rating 2160 I recommend that The Flamingo Grill uses 15 television ads, 33 radio ads, and 30 newspaper ads which should maximized the Total Exposure Rating. Advertising Schedule : Media Number of Ads Budget Television 15 $150,00 0 Radio 33 $99,000 Newspaper 30 $30,000 Total 78 $279,00 0 Total Exposure : 2160 Total New Customers Reached : 127,100 The shadow price for the budget constraint is 0.0055. So, if an additional $10,000 were added to the advertising budget, total exposure will increase by 55 points. The recommended solution is not very sensitive to the exposure rating coefficients. For
example, there is a huge difference in the new customers reached and number of ads suggested in the schedules, but the total exposure does not change as drastically. Advertising Schedule: Media Number of Ads Budget Television 14 $140,00 0 Radio 28 $84,000 Newspaper 55 $55,000 Total 97 $279,00 0 Total Exposure: 2130 Total New Customers Reached: 139,600 I would recommend using the advertising schedule from part 4 instead of the original schedule because more new customers would be reached and the exposure would only decrease by 30 points.

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