Transcript Promotion Management - City University of New York

Developing the Media Plan
Media Planning - A series of decisions involving the delivery of messages to audiences.
Situation Analysis
Marketing Strategy Plan
Creative Strategy Plan
Setting Media Objectives
Goals to be attained
by the media strategy
and program
Determining Media Strategy
Decisions on how
the media
objectives can be
attained
Selecting Broad Media Classes
Selecting Media Within Class
Media Use Decision
— Broadcast
Media Use Decision
— Print
Media Use Decision
— Other Media
Media Planning Terms
Medium - the general category of delivery system.
Media vehicle - the specific carrier within a
medium
Reach - the percentage of audience members
exposed at least once to a message or media
vehicle.
Coverage - the potential audience that might
receive the message through a media vehicle.
Frequency - the number of times the receiver is
exposed to the message in a given period of time.
Media Planning Difficulties
Lack of information
Inconsistent terms
Serious time pressure
Measurement problems
Media Planning Criteria
Considerations
The media mix
Target market coverage (Who?)
Geographic coverage (Where?)
Scheduling
Reach versus frequency
Creative aspects and mood
Flexibility
Budget considerations
To Whom Shall We Promote?
Market Potential Index
Percentage of users in a segment
Percentage of population in segment
x 100
Product: Cola
Segment: Adult males in the US
Percentage of males that drink cola
Percentage of males in the population
53.1
(87118 / 182456)
x 100 = 111
x 100
To Whom Shall We Promote?
Misuse of the Index
Age
Segment
Population
in Segment
Index
15.1
Product
use in
Segment
18.0
18-24
25-34
25.1
25.0
100
35-44
20.6
21.0
102
45+
39.3
36.0
91
119
Where to Promote?
Buying Power Index


Sales & Marketing Management
Gives relative value of a market.
Where to Promote?
Brand Development Index (BDI)
Percentage of brand sales in a market to total US sales
Percentage of total US population in the market
Percentage of brand sales in South Atlantic region
Percentage of US population South Atlantic region
50%
16%
x 100 = 312
x 100
x 100
Where to Promote?
Category Development Index (CDI)
Percentage of product category total sales in market
Percentage of total US population in the market
Percentage of product category sales in South Atlantic
Percentage of US population South Atlantic region
25%
16%
x 100 = 156
x 100
x 100
Where to Promote?
Using CDI and BDI
High BDI
High CDI
Low CDI
Low BDI
High market share
Low market share
Good market potential
Good market potential
High market share
Low market share
Poor market potential
Poor market potential
Where to Promote?
Using CDI and BDI
High BDI
High CDI
Low CDI
Low BDI
High market share
Low market share
Good market potential
Good market potential
High market share
Low market share
Poor market potential
Poor market potential
This market usually represents good sales potential.
Excellent advertising market.
Where to Promote?
Using CDI and BDI
High BDI
High CDI
Low CDI
Low BDI
High market share
Low market share
Good market potential
Good market potential
High market share
Low market share
Poor market potential
Poor market potential
Category is not selling well but the brand is.
Probably a good market, but monitor for declining sales.
Where to Promote?
Using CDI and BDI
High BDI
High CDI
Low CDI
Low BDI
High market share
Low market share
Good market potential
Good market potential
High market share
Low market share
Poor market potential
Poor market potential
Category shows high potential but the brand is not
doing well. Reason must be determined.
Where to Promote?
Using CDI and BDI
High BDI
High CDI
Low CDI
Low BDI
High market share
Low market share
Good market potential
Good market potential
High market share
Low market share
Poor market potential
Poor market potential
Both the category and the brand are doing poorly.
Not likely to be a good place for advertising.
Timing Strategies
Continuity Stragegy
100
80
60
$ Spent
40
20
0
Campaign Time
Timing Strategies
Continuity

Advantages
Constant reminder
Covers the entire buying cycle
Allows for media priorities (discounts, scheduling)
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Disadvantages
Higher costs
Potential for overexposure

Typical use
Food products
Laundry detergent
Products consumed on an ongoing basis
Timing Strategies
Flighting Stragegy
100
80
60
$ Spent
40
20
0
Campaign Time
Takes advantage of a carryover effect in consumer
awareness levels.
Timing Strategies
Flighting Stragegy
100
80
Consumer
Awareness
60
$ Spent
40
20
0
Campaign Time
Takes advantage of a carryover effect in consumer
awareness levels.
Timing Strategies
Flighting

Advantages
Cost efficiency
May allow multiple media or vehicles with limited budget
Weighting may offer more exposure and competitive advantage during
scheduled times

Disadvantages
Lack of awareness/interest/retention during unscheduled times
Vulnerable to competitive efforts during unscheduled times

Typical use
Products with limited budgets
Products for which highest potential buying times can be identified
Seasonal products
Timing Strategies
Pulsing Stragegy
100
80
60
$ Spent
40
20
0
Campaign Time
Combination of Continuity and Flighting.
Advertising is increased during an open aperture.
Timing Strategies
Pulsing

Advantages
Previous two methods combined

Disadvantages
Higher costs
Potential for overexposure

Typical use
Automobiles April/September/December
Products with large budgets + peak sales periods
Reach & Frequency
Duplicated Reach
Reach & Frequency
Gross Ratings Points = Reach x Frequency

100 GRPs
100% exposed 1 time
50% exposed 2 times
25% exposed 4 times
1% exposed 100 times
Target Ratings Points = Target Audience Reach x Frequency
Reach & Frequency
Magazine
Readers/
Issue
Rating
Unduplicated
Readers
Today's
Happiness
50,000
50.0
30,000
News
Round-up
40,000
40.0
15,000
Fast Life
18,000
18.0
11,000
Totals
108,000
108.0
56,000
Target population:
Total gross impressions:
Gross rating points:
Reach:
Average frequency:
100,000
108,000
108
56 (56,000/100,000)
1.9 issues (108,000/56,000)
or (108 GRP/56 Reach)
Effects of Reach and Frequency
1. One exposure of an ad to a target group within a purchase
cycle has little or no effect in I most circumstances.
2. Since one exposure is usually ineffective, the central goal of
productive media planning I should be to enhance frequency
rather than reach.
3. The evidence suggests strongly that an exposure frequency
of two within a purchase cycle is an effective level.
4. Beyond three exposures within a brand purchase cycle or
over a period of four or even eight weeks, increasing
frequency continues to build advertising effectiveness at a
decreasing rate but with no evidence of decline.
5. Although there are general principles with respect to
frequency of exposure and its relationship to advertising
effectiveness, differential effects by brand are equally
important
6. Nothing we have seen suggests that frequency response
principles or generalizations vary by medium.
7. The data strongly suggest that wearout is not a function of
too much frequency; it is more of a creative or copy problem.
Determining Frequency Levels
Marketing Factors
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Brand history: new brands = higher frequencies
Brand share: higher share = lower frequencies
Brand loyalty: higher loyalty = lower frequencies
Purchase/use cycles: short purchase cycle = higher frequencies
Share of voice: More noise = higher frequencies
Determining Frequency Levels
Message Factors
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Message complexity: complex message = higher frequencies
Message uniqueness: unique message = lower frequencies
Campaign newness: new campaigns = higher frequencies
Image vs product sell: image sell = higher frequencies
Message variation: single message = lower frequencies
How does this relate to the RMH?
Determining Frequency Levels
Media Factors
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Clutter: more clutter = higher frequencies
Attentiveness: more attentiveness = lower frequencies
Scheduling: continuous scheduling = lower frequencies
Determining Relative Media
Costs
Print: Cost per thousand (CPM)
Cost of ad space
Circulation
Per-page cost
Circulation
Calculation of CPM
CPM
x 1,000
Time
Newsweek
$156,000
$144,000
4.0 million
3.1 million
156,000 x 1,000
4,000,000
144,000 x 1,000
3,100,000
$39.00
$46.45
Determining Relative Media
Costs
Broadcast: Cost per rating point (CPRP)
Cost of 1 unit of time
Program rating
King of Queens
Friends
$3,500
$4,000
11
15
Calculation
$3,500
11
$4,000
15
CPRP
$318.18
$266.67
Cost per spot ad
Rating
Cautions
Scenario A: Overestimation of Efficiency
Time
Newsweek
$156,000
$144,000
Circulation
to Target Market
4.0 million
2.6 million (65%)
3.1 million
2.48 million (80%)
Calculation of CPM
156,000 x 1,000
2,600,000
144,000 x 1,000
2,480,000
$60.00
$58.06
Per-page cost
CPM
Cautions
Scenario B: Underestimation of Efficiency
Time
Per-page cost
Circulation
Pass-along rate
Calculation of CPM
CPM
$156,000
4.0 million
3 @ 33%
156,000 x 1,000
4,000,000+3(1,320,000)
$19.60