The radio advertising budget is restricted to a maximum of $99,000.
The television budget should be at least $140,000.Use no more than 20 television advertisements.Use at least twice as many radio advertisements as television advertisements.Flamingo’s management team also adopted the following guidelines: To balance the advertising campaign and make use of all the advertising media. Because of the management’s concern with attracting new customers, management stated that the advertising campaign must reach at least 100,000 new customers. 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.įlamingo’s management team accepted maximizing the total exposure rating across all media as the objective of the advertising campaign. Beyond 15 ads, the exposure rating declines to 20 and the number of new customers reached declines to 1200 per ad. For radio ads, the preceding data are reliable up to a maximum of 15 ads. 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. After 10 ads, the benefit is expected to decline. 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. As expected, the more expensive television advertisement has the highest exposure effectiveness rating along with the greatest potential for reaching new customers.Īt this point, the HJ consultants pointed out that the data concerning exposure and reach were only applicable to the first few ads in each medium. It is a function of such things as image, message recall, visual and audio appeal, and so on. Similarly, for internet ads, the preceding data are reliable up to a maximum of 20 the exposure ra±ng declines to 5 and the poten±al number of new customers reached declines to 800 for addi±onal ads.The exposure rating is viewed as a measure of the value of the ad to both existing customers and potential new customers. Beyond 15 ads, the exposure ra±ng declines to 20 and the number of new customers reached declines to 1200 per ad. For planning purposes, HJ recommended reducing the exposure ra±ng to 55 and the es±mate of the poten±al new customers reached to 1500 for any television ads beyond 10. A´er 10 ads, the bene²t is expected to decline. For television, HJ stated that the exposure ra±ng of 90 and the 4000 new customers reached per ad were reliable for the ²rst 10 television ads. At this point, the HJ consultants pointed out that the data concerning exposure and reach were only applicable to the ²rst few ads in each medium. As expected, the more expensive television adver±sement has the highest exposure e³ec±veness ra±ng along with the greatest poten±al for reaching new customers. It is a func±on of such things as image, message recall, visual and audio appeal, and so on. In a mee±ng with Flamingo’s management team, HJ consultants provided the following informa±on about the industry exposure e³ec±veness ra±ng per ad, their es±mate of the number of poten±al new customers reached per ad, and the cost for each ad: Advertsing Media Exposure Ratng per Ad New CusTomers per Ad CosT per Ad Television 90 4,000 $10,000 Radio 25 2,000 $3,000 Internet 10 1,000 $1,000 The exposure ra±ng is viewed as a measure of the value of the ad to both exis±ng customers and poten±al new customers. The management team requested HJ’s recommenda±on concerning how the adver±sing budget should be distributed across television, radio, and internet adver±sements. To help plan an adver±sing campaign for the coming season, Flamingo’s management team hired the adver±sing ²rm of Haskell and Johnson (HJ). Module B – Linear Programming Applications in Operations Management Case Study #4: Planning an AdverTsing Campaign The Flamingo Grill is an upscale restaurant located in St.
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