Part A Final Project – Planning an Advertising Campaign
QA Part A
Having Trouble Meeting Your Deadline?
Get your assignment on Part A Final Project – Planning an Advertising Campaign completed on time. avoid delay and – ORDER NOW
Part A Final Project
Book Title: eTextbook: An Introduction to Management Science: Quantitative Approaches to Decision Making Chapter 4. Linear Programming Applications in Marketing, Finance, and Operations Management Case Problem 1. Planning an Advertising Campaign
Case Problem 1. Planning an Advertising Campaign
The Flamingo Grill is an upscale restaurant located in St. Petersburg, Florida. To help plan an advertising campaign for the coming season, Flamingo’s management team hired the advertising firm of Haskell & Johnson (HJ). The management team requested HJ’s recommendation concerning how the advertising budget should be distributed across television, radio, and online advertisements. 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:
Advertising
Media
Exposure
Rating per Ad
New
Customers per
Ad
Cost per Ad
Television 90 4,000 $10,000
Radio 25 2,000 $ 3,000
The exposure rating is viewed as a measure of the value of the ad to both existing customers and potential new customers. It is a function of such things as image, message recall, visual and audio appeal, and so on. 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. 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 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. Because of management’s concern with attracting new customers, management stated that the advertising campaign must reach at least 100,000 new customers. To balance
Advertising
Media
Exposure
Rating per Ad
New
Customers per
Ad
Cost per Ad
Online 10 1,000 $ 1,000 the advertising campaign and make use of all advertising media, Flamingo’s management team also adopted the following guidelines:
Use at least twice as many radio advertisements as television advertisements.
Use no more than 20 television advertisements.
The television budget should be at least $140,000.
The radio advertising budget is restricted to a maximum of $99,000.
The online 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 Report
Develop a model that can be used to determine the advertising budget allocation for the Flamingo Grill. Include a discussion of the following in your report:
1. A schedule showing the recommended number of television, radio, and online advertisements and the budget allocation for each medium. Show the total exposure and indicate the total number of potential new customers reached.
2. How would the total exposure change if an additional $10,000 were added to the advertising budget?
3. A discussion of the ranges for the objective function coefficients. What do the ranges indicate about how sensitive the recommended solution is to HJ’s exposure rating coefficients?
4. After reviewing HJ’s recommendation, the Flamingo’s management team asked how the recommendation would change if the objective of the advertising campaign was to maximize the number of potential new customers reached. Develop the media schedule under this objective.
5. Compare the recommendations from parts 1 and 4. What is your recommendation for the Flamingo Grill’s advertising campaign?
Explanation & AnswerOur website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Order Now and we will direct you to our Order Page at Litessays. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Fill in all the assignment paper details that are required in the order form with the standard information being the page count, deadline, academic level and type of paper. It is advisable to have this information at hand so that you can quickly fill in the necessary information needed in the form for the essay writer to be immediately assigned to your writing project. Make payment for the custom essay order to enable us to assign a suitable writer to your order. Payments are made through Paypal on a secured billing page. Finally, sit back and relax.