ABSTRACT
Jim Burns was the advertising manager of Alpha Airlines. He starts at the advertising budget sheet prepared by the media department of his advertising agency, KFM. He perplexed by the initial pass at how to allocate the budget across his top revenue markets. Alpha Airlines positioned as a serious business airline. It had flights only to the top markets in the United States. The goal of Alpha Airlines was to dominate these key markets in the country by having the lowest fares, most flights, and best service. The strategy seemed to be working. Alpha Airlines grows steadily since its inception. Established airlines had various strengths in the markets but they typically lacked the strength in each of the top markets. Jim tells by management that he really needed to grow the Atlanta and Chicago markets. He concerns he was spending the most advertising dollars in Los Angeles. He spends more than in New York.
