![]() The online advertising budget is to be at least $30,000.HJ 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 online advertising.Managerial ReportDevelop a model that can be used to determine the advertising budget allocation for the Flamingo Grill.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.To balance the advertising campaign and make use of all advertising media, Flamingo’s management team also adopted the following guidelines: Because of management’s concern with attracting new customers, management stated that the advertising campaign must reach at least 100,000 new customers. Similarly, for online 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. 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.At 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. ![]() The budget has been set at $279,000.In a meeting with Flamingo’s management team, 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 each ad:The exposure rating is viewed as a measure of the value of the ad to both existing customers and potential new customers. The management team requested HJ’s recommendation concerning how the advertising budget should be distributed across television, radio, and online. To help plan an advertising campaign for the coming season, Flamingo’s management team hired the advertising firm of Haskell & Johnson (HJ). + CengageNOW Instant Access Code + CengageNOW 2-Semester Instant Access (5th Edition) Edit edition Solutions for Chapter 9 Problem 1CP: Planning an Advertising CampaignThe Flamingo Grill is an upscale restaurant located in St. By ePack: Quantitative Methods for Business (with Printed Access Card) + Essentials of Modern Business Statistics with Microsoft®.
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