Advertising Media, budget allocationFlamingo Grill

Advertising important instrument in marketing management Enhance potential consumers responses

The two basic tasks of marketing communications are message creation and message dissemination

Media Planning Supports message dissemination helpsNewspaper us determine

which

Banner ads on the media to use web

Television

Radio

Media Planning tells us when and where to use media in order to reach your desired audience.

the process of selecting media time and space to disseminate advertising messages in order to accomplish marketing objectives.

right

medium in advertising..low cost and high exposure rating to their target costumers

will effectively determine the allocation of advertising budget in each medium

Problem

Flamingo GrillWe owe all our success to continuously attracting some of the It is located 3 miles us. We find classy, hardworking Beachs best people to work withsouth of Cagneys on young people with a sense of humor. Our staffs at both the corner of 71st avenue, United States restaurants have made our 30-year careers a .pleasure. The Flamingo Grill Flamingo in are both named Dino. The two owners of thewas builtGrill1986

of America.

PROBLEM The problem of the Flamingo Grill is how to plan an advertising campaign for the coming Christmas season. Flamingo's management team hired the advertising firm of Haskell & Johnson (HJ) to do the process. The management team requested HJ's recommendation concerning how the advertising budget should be distributed across..

PROBLEM maximizing the total exposure rating, across all media, as the objective of the advertising campaign.

They are also concern with attracting new customers. The budget has been set at $279,000.

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 newspaper budget is to be at least $30,000

Solution Maximize: 90x + 4500y +45z Subject to: 55x + 1500y + 10y > or = 150 000 25x + 2000y + 15z < or = 99 000 10x + 100y + 20z > or = 30 000 x> or = 0; y> or = 0 Maximize: 90x + 4500y + 45z + 0s1 + 0s2 + 0s3 Subject to: - 55x - 1500y - 10y s1 > or = 150 000 25x - 2000y - 15z - s2 < or = 99 000 10x - 100y - 20z s3> or = 30 000 x,y,s1,s2,s3 > or = 0

solutionCj Prod 0 0 0 S1 S2 S3 Zj Cj-Zj Qty 99 000 -30000 90 X 25 -10 0 90 -150000 -55 4500 Y -1500 2000 -1000 0 4500 45 Z -10 15 -20 0 45 0 S1 1 0 0 0 0 0 S2 0 1 0 0 0 0 S3 0 0 1 0 0

Old S1: -150 000 -55 -1500 -10 1 0 0 New Y; (30 1/100 1 1/50 0 0 -1/1000) 1500 -105 000 -40 0 20 1 0 -3/2 Old S2: 99 000 25 New Y: ( 30 1/100 39 000 5 2000 1 0 15 0 1 0 1/50 0 0 -1/1000) -2000 - 25 0 1 2

Cj Prod 0 0 4500 S1 S2 Y Zj Qty 39000 30

90 X 5 1/100 -105000 -40

4500 Y 0 0 1

45 Z 20 -25 1/50

0 S1 1 0 0

0 S2 0 1 0

0 S3 -3/2 2 -1/1000

Cj-ZjOld S1: -150 000 -55 -1500 -10 1 0 0 New Y; (30 1/100 1 1/50 0 0 -1/1000) 1500 -105 000 -40 0 20 1 0 -3/2 Old S2: 99 000 25 New Y: ( 30 1/100 39 000 5 2000 1 0 15 0 1 0 1/50 0 0 -1/1000) -2000 - 25 0 1 2

Cj Prod 0 0 4500 S1 S2 Y Zj Qty 39000 30

90 X 5 1/100 -105000 -40

4500 Y 0 0 1

45 Z 20 -25 1/50

0 S1 1 0 0

0 S2 0 1 0

0 S3 -3/2 2 -1/1000

Cj-ZjOld S1: -150 000 -55 -1500 -10 1 0 0 New Y; (30 1/100 1 1/50 0 0 -1/1000) 1500 -105 000 -40 0 20 1 0 -3/2 Old S2: 99 000 25 New Y: ( 30 1/100 39 000 5 2000 1 0 15 0 1 0 1/50 0 0 -1/1000) -2000 - 25 0 1 2

Cj Prod 0 0 4500 S1 S2 Y Zj Qty 39000 30

90 X 5 1/100 -105000 -40

4500 Y 0 0 1

45 Z 20 -25 1/50

0 S1 1 0 0

0 S2 0 1 0

0 S3 -3/2 2 -1/1000

Cj-Zj

Cj Prod 0 0 4500 S1 S2 Y Zj Qty 39000 30

90 X 5 1/100 -105000 -40

4500 Y 0 0 1

45 Z 20 -25 1/50

0 S1 1 0 0

0 S2 0 1 0

0 S3 -3/2 2 -1/1000

Cj-Zj

Cj Prod 0 S1 Qty 150,000

90 X 55

4500 Y 1500

45 Z 10

0 S1 1

0 S2 0

0 S3 0

00 Zj Cj - Zj

S2S3

99,00030,000 0

2510 0 90

20001000 0 4500

1520 0 45

00 0 0

10 0 0

01 0 0