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only applicable to the first few ads in each medium. For television, HJ stated that the exposure rating of 90 and the 4000 new customers reached per ad were reliable for the first 10 television ads. After 10 ads, the benefit is expected to decline. For planning purposes, HJ recommended reducing the exposure rating to 55 and the estimate of the potential new customers reached to 1500 for any television ads beyond 10. For radio ads, the preceding data are reliable up to a maximum of 15 ads. Beyond 15 ads, the exposure rating declines to 20 and the number of new customers reached declines to 1200 per ad. Similarly, for internet ads, the preceding data are reliable up to a maximum of 20; the exposure rating declines to 5 and the potential number of new customers reached declines to 800 for additional ads.Flamingo’s management team accepted maximizing the total exposure rating across all media as the objective of the advertising campaign. Because of the management’s concern with attractingnew customers, management stated that the advertising campaign must reach at least 100,000
Module Bnew customers. To balance the advertising campaign and make use of all the advertising media. Flamingo’s management team also adopted the following guidelines:Use at least twice as many radio advertisements as television advertisementsUse no more than 20 television advertisementsThe television budget should be at least $140,000The radio advertising budget is restricted to a maximum of $99,000The internet budget is to be at least $30,000HJ agreed to work with these guidelines and provide a recommendation as to how the $279,000 advertising budget should be allocated among television, radio and internet advertising.