Transcript Chapter 1

Media Planning
and Strategy
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
The Traditional Media Landscape
Satellite radio
stations
2
Broadcast
networks (TV
and cable)
100
TV stations
3,510
Consumer
magazines
5,340
Newspapers
(daily and
weekly)
8,100
Radio stations
13,898
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The Traditional Media Landscape in
Taiwan (2006)
• unit：NT million dollars
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Medium 2006
TV
2,266
Cable TV 8,447
Newspaper 7,518
Magazine 3,147
Radio
2,120
Outdoor 1,653
Total
25,150
2005
2,160
8,755
7,156
3,145
1,479
1,342
24,037
+(-) +(-)%
105
5%
-309
-4%
362
5%
2
0%
642
43%
311
23%
1,113
5%
Media Terminology
Media
Planning
A series of decisions involving the delivery of
messages to audiences
Media
Objectives
Goals to be attained by the media strategy
and program
Media
Strategy
Decisions on how the media objectives can
be attained
Media
The various categories of delivery systems,
including broadcast and print media
Broadcast
Media
Either radio or television network or local
station broadcasts
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Media Terminology
Print
Media
Publications such as newspapers,
magazines, direct mail, outdoor, etc.
Media
Vehicle
The specific carrier within a medium
category
Reach
Number of different audience members
exposed at least once in a given time period
Coverage
The potential audience that might receive
the message through the vehicle
Frequency
The number of times the receiver is exposed
to the media vehicle in a specific time period
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Developing the Media Plan
Situation
analysis
Marketing
strategy plan
Creative
strategy plan
Setting media objectives
Determining media strategy
Selecting broad media classes
Selecting media within class
Media use decision
— broadcast
Media use decision
— print
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Media use decision
— other media
Media Planning Difficulties
Measurement
Problems
Lack of
Information
Problems
in Media
Planning
Time
Pressure
Inconsistent
Terms
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Developing the Media Plan
Analyze the market
Establish media objectives
Develop media strategy
Implement media strategy
Evaluate performance
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Analyzing Market Potential
Index Number
Percentage of users
in a demographic segment
Index =
Percentage of population
in the same segment
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X 100
Brand and Category Analysis
Brand Development Index
Percentage of brand to total
U.S. sales in market
BDI =
Percentage of total U.S.
population in market
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X 100
Brand and Category Analysis
Category Development Index
Percentage of total product
category sales in market
CDI =
Percentage of total U.S.
population in market
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X 100
Brand and Category Analysis
High CDI
Low BDI
High market share
Good market
potential
Low market share
Good market potential
Low CDI
High BDI
High market share
Monitor for sales
decline
Low market share
Poor market potential
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Brand and Category Analysis
Low CDI
High CDI
High BDI
Low BDI
The market usually
represents good sales
potential for both the
product and the brand.
The product category
shows high potential but
the brand isn’t doing well;
the reason should be
determined.
The category isn’t selling
well but the brand is;
may be a good market in
which to advertise but
should be monitored for
sales decline.
Both the product category
and the brand are doing
poorly; not likely to be a
good place to advertise.
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Target Audience Coverage
Population excluding target market
Target market
Media coverage
Media overexposure
Target
Market
Proportion
Full
Market
Coverage
Partial
Market
Coverage
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Coverage
Exceeding
Market
Three Scheduling Methods
Continuity
Flighting
Pulsing
Jan
Feb Mar
Apr May Jun
Jul
Aug Sep Oct Nov Dec
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Reach and Frequency
A. Reach of One Program
B. Reach of Two Programs
Total market audience reached
Total market audience reached
C. Duplicated Reach of Both
D. Unduplicated Reach of Both
Total reached with both shows
Total reach less duplicate
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Graph of Effective Reach
Figure 10-22
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Marketing Factors Determining Frequency
Marketing
Factors
Brand
Loyalty
Brand
History
Brand
Share
Share of
Voice
Usage
Cycle
Purchase
Cycles
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Target
Group
Message Factors Determining Frequency
Message
or Creative
Factors
Message Complexity
Message Uniqueness
New Vs. Continuing Campaigns
Image Versus Product Sell
Message Variation
Wearout
Advertising Units
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Media Factors Determining Frequency
Clutter
Repeat
Exposures
Scheduling
Media
Factors
Editorial
Environment
Attentiveness
Number of
Media Used
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Flexibility in Media Planning Strategies
Market
opportunities
Market threats
Flexibility
Changes in
media or media
vehicle
Availability of
media
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Determining Relative Cost of Media-Print
Cost per thousand (CPM)
CPM =
Cost of ad space
(absolute cost)
Circulation
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X 1,000
Calculating CPM Based on the Target
Audience
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Determining Relative Cost of Media-Broadcast
Cost per rating point (CPRP)
CPRP =
Cost of commercial time
Program rating
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Television Pros and Cons
Advantages
Disadvantages
Mass coverage
Low selectivity
High reach
Short message life
Impact of sight, sound
and motion
High absolute cost
High prestige
High
High production
production cost
cost
Low cost per exposure
Clutter
Attention getting
Favorable image
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Radio Pros and Cons
Advantages
Disadvantages
Local
Local coverage
coverage
Audio only
Low cost
Clutter
High frequency
Low attention getting
Flexible
Fleeting message
Low production cost
Well-segmented audience
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Magazine Pros and Cons
Advantages
Segmentation potential
Disadvantages
Long
ad
lead time for
placement
Quality reproduction
Visual only
High information content
Lack of flexibility
Longevity
Multiple readers
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Newspaper Pros and Cons
Advantages
Disadvantages
High coverage
Short life
Low cost
Clutter
Short lead time for
placing ads
Low attention getting
Ads can be placed in
interest sections
Poor reproduction quality
Timely (current ads)
Selective reader exposure
Reader controls exposure
Can be used for coupons
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Outdoor Pros and Cons
Advantages
Disadvantages
Location specific
Short exposure time
High repetition
Short ads
Easily noticed
Poor image
Local restrictions
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Direct Mail Pros and Cons
Advantages
Disadvantages
High selectivity
High cost per contact
Reader controls exposure
Poor image (junk mail)
High information content
Clutter
Repeat exposure
opportunities
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Internet Pros and Cons
Advantages
Disadvantages
User selects product
information
Limited creative
capabilities
User attention and
involvement
Websnarl (crowded access)
Interactive relationship
Technology limitations
Direct selling potential
Few valid measurement
techniques
Flexible message platform
Limited reach
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