Transcript Chapter10.ppt

10
Media Planning and Strategy
McGraw-Hill/Irwin
Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.
Media Expenditures to Reach $1 Trillion
Traditional Media
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
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
Broadcast
Media
Various categories of delivery systems,
including broadcast and print media
Either radio or television network or local
station broadcasts
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 time period
Coverage
The potential of audience that might
receive the message through the vehicle
Frequency
Number of times the receiver is exposed to
the media vehicle in a time period
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
Media use decision
— other media
Media Planning Difficulties
Measurement
Problems
Lack of
Information
Problems
in Media
Planning
Time
Pressure
Inconsistent
Terms
Developing a Media Plan
Analyze the market
Establish media objectives
Develop media strategy
Implement media strategy
Evaluate performance
Analyzing Market Potential
Index Number
Index =
Percentage of users
in a demographic segment
Percentage of population
in the same segment
X 100
Brand and Category Analysis
Brand Development Index
BDI =
Percentage of brand to total
U.S. sales in market
Percentage of total U.S.
population in market
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
X 100
Test Your Knowledge
In calculating both the brand development index
(BDI) and the category development index (CDI), a
media planner obtains the following results: Low BDI
and High CDI. What do these results imply?
A) High market share; good market potential
B) Low market share; good market potential
C) High market share; monitor for sales decline
D) Low market share; poor market potential
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
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.
Target Audience Coverage
Population excluding target market
Target market
Media coverage
Media overexposure
Target
Market
Proportion
Full
Market
Coverage
Partial
Market
Coverage
Coverage
Exceeding
Market
Geographic Coverage
Three Scheduling Methods
Continuity
Flighting
Pulsing
Jan
Feb Mar
Apr May Jun
Jul
Aug Sep Oct Nov Dec
Reach and Frequency
A. Reach of One Program
C. Duplicated Reach of Both
B. Reach of Two Programs
D. Unduplicated Reach of Both
Graph of Effective Reach
Marketing Factors Determining Frequency
Marketing
Factors
Brand
Loyalty
Brand
History
Share of
Voice
Brand
Share
Usage
Cycle
Purchase
Cycles
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
Media Factors Determining Frequency
Clutter
Repeat
Exposure
Scheduling
Media
Factors
Editorial
Environment
Attentiveness
Number of
Media Used
Flexibility in Media Planning Strategies
Market
opportunities
Market threats
Flexibility
Changes in
media or media
vehicle
Availability of
media
Test Your Knowledge
Why should an effective media strategy be flexible?
A) Due to the potential development of new
advertising media
B) Due to an alteration of a competitor's
media schedule
C) Due to the unavailability of the desired
medium
D) Due to a drop in the ratings of a show
previously on the media schedule
E) Due to all of the above
Determining Relative Cost of Print Media
Cost per thousand (CPM)
CPM =
Cost of ad space
(absolute cost)
Circulation
X 1,000
Calculating CPM Based on Target Audience
Determining Relative Cost of Broadcast Media
Cost per rating point (CPRP)
CPRP =
Cost of commercial time
Program rating
Evaluation and Follow-Up
How well did these strategies achieve
the media objectives?
How well did the media plan contribute
to attaining the overall marketing and
communications objectives?
Use again, or analyze flaws
Television Pros and Cons
Advantages
Mass coverage
High reach
Disadvantages
Sight, sound, motion
High prestige
Low selectivity
Short message life
Low cost per exposure
High absolute cost
Attention getting
High production cost
Favorable image
Clutter
Radio Pros and Cons
Advantages
Local coverage
Low cost
High frequency
Flexible
Disadvantages
Audio only
Clutter
Low production cost
Low attention getting
Well-segmented audience
Fleeting message
Magazine Pros and Cons
Advantages
Segmentation potential
Quality reproduction
Disadvantages
High information content
Long lead time for
ad placement
Longevity
Visual only
Multiple readers
Lack of flexibility
Newspaper Pros and Cons
Advantages
High coverage
Low cost
Short lead time for
placing ads
Ads can be placed in
interest sections
Timely (current ads)
Disadvantages
Short life
Clutter
Low attention getting
Reader controls exposure
Poor reproduction quality
Can be used for coupons
Selective reader exposure
Outdoor Pros and Cons
Disadvantages
Short exposure time
Short ads
Advantages
Location specific
High repetition
Easily noticed
Poor image
Local restrictions
Direct Mail Pros and Cons
Advantages
High selectivity
Reader controls exposure
Disadvantages
High information content
High cost per contact
Repeat exposure
opportunities
Poor image (junk mail)
Clutter
Internet Pros and Cons
Advantages
Disadvantages
User selects product
information
Limited creative
capability
User attention and
involvement
Websnarl
Interactive relationship
Technology limitations
Direct selling potential
Few measurement
techniques
Flexible message platform
Limited reach