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                    Media Planning and Strategy




McGraw-Hill/Irwin             © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved.
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.
Media Terminology

Print Media - Publications such as newspapers
and magazines.
Media Vehicle - The specific message carrier,
such as the Washington Post or 60 Minutes.
Coverage - The potential audience that might
receive the message through the the vehicle.
Reach - The actual number of individual
audience members reached at least once by the
vehicle in a given period of time.
Frequency - The number of times the receiver
is exposed to vehicle in a specific time period.
Problems in Media Planning



      Lack of information
      Inconsistent terms
      Serious time pressure
      Measurement problems
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        Media Use Decision         Media Use Decision
  — Broadcast                  — Print                 — Other Media
Developing the Media Plan

         Analyze the Market

     Establish Media Objectives

      Develop Media Strategy

     Implement Media Strategy

       Evaluate Performance
MRI Report on Cell Phone Users
Where to Promote?
  Brand and Category Analysis




         Brand Development Index

        Percentage ofof brand to to
          Percentage brand sales
          total U.S. sales in market
          total US sales in market
BDI =                                  X 100
          Percentage of total U.S.
          Percentage of total U.S.
          population in in market
            population market
Where to Promote?
  Brand and Category Analysis




        Category Development Index

        Percentage of product
        category total sales in market
CDI =                                    X 100
        Percentage of total U.S.
        population in market
Brand and Category Analysis

                High BDI            Low BDI
High CDI




           High market share
           High market share   Low market share
                               Low market share
           Good market
           Good market         Good market
                               Good market
           potential
           potential           potential
                               potential
Low CDI




           High market share
           High market share   Low market share
                               Low market share
           Monitor for sales
           Monitor for sales   Poor market
                               Poor market
           decline
           decline             potential
                               potential
Brand and Category Analysis

                    High BDI                          Low BDI
           The market usually represents     The product category shows
High CDI


           The market usually represents     The product category shows
           good sales potential for both
           good sales potential for both     high potential but the brand
                                             high potential but the brand
           the product and the brand.
            the product and the brand.       isn’t doing well; the reason
                                              isn’t doing well; the reason
                                             should be determined.
                                              should be determined.



           The category isn’t selling well
           The category isn’t selling well   Both the product category
                                              Both the product category
Low CDI




           but the brand is; may be a
           but the brand is; may be a        and the brand are doing
                                              and the brand are doing
           good market in which to
            good market in which to          poorly; not likely to be a good
                                             poorly; not likely to be a good
           advertise but should be
            advertise but should be          place to advertise.
                                             place to advertise.
           monitored for sales decline.
           monitored for sales decline.
Media Planning Criteria Considerations


    The media mix
    Target market coverage
    Geographic coverage
    Scheduling
    Reach versus frequency
    Creative aspects and mood
    Flexibility
    Budget considerations
Target Audience Coverage

             Population excluding target market
             Target market
             Media coverage
             Media overexposure


  Target       Full          Partial        Coverage
  Market      Market         Market         Exceeding
Proportion   Coverage       Coverage         Market
Three Scheduling Methods



                   Continuity

                                  Flighting

       Pulsing

   Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Reach and Frequency
  Reach of One Program              Reach of Two Programs




 Total market audience reached   Total market audience reached

 Duplicated Reach of Both        Unduplicated Reach of Both




 Total reached with both shows      Total reach less duplicate
Graph of Effective 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 most
   circumstances.

2. Since one exposure is usually ineffective, the central goal
   of productive media planning 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.
Effects of reach and frequency


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. Frequency response principles or generalizations
   do not 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.
Marketing Factors Important to
Determining Frequency


       Brand history
       Brand share
       Brand loyalty
       Purchase cycles
       Usage cycle
       Competitive share of voice
       Target group
Message or Creative Factors Important to
Determining Frequency

    Message complexity
    Message uniqueness
    New vs. continuing campaigns
    Image versus product sell
    Message variation
    Wearout
    Advertising units
Media Factors Important to
Determining Frequency


     Clutter
     Editorial environment
     Attentiveness
     Scheduling
     Number of media used
     Repeat Exposures
Determining Relative Cost of Media




        Cost per thousand (CPM)

          Cost of ad space
CPM =     (absolute cost)         X 1,000
           Circulation
Determining Relative Cost of Media




            Cost per rating point (CPRP)

           Cost of commercial time
CPRP =
           Program rating
Television Characteristics


  Advantages               Disadvantages

 Mass coverage             Low selectivity
 High reach                Short message life
 Impact of sight, sound,   High absolute cost
 and motion                High production
 High prestige             costs
 Low cost per exposure     Clutter
 Attention getting
 Favorable image
Radio Characteristics

Advantages              Disadvantages

Local coverage           Audio only
Low cost                 Clutter
High frequency           Low attention
Flexible                 getting
Low production costs     Fleeting message
Well-segmented
audiences
Magazines Characteristics

Advantages             Disadvantages

Segmentation           Long lead time for ad
potential              placement
Quality reproduction   Visual only
High information       Lack of flexibility
content
Longevity
Multiple readers
Newspapers Characteristics

 Advantages             Disadvantages

 High coverage          Short life
 Low cost               Clutter
 Short lead time for    Low attention-
 placing ads            getting capabilities
 Ads can placed in      Poor reproduction
 interest sections      quality
 Timely (current ads)   Selective reader
 Reader controls        exposure
 exposure
 Can be used for
 coupons
Outdoor Characteristics

 Advantages          Disadvantages

 Location specific        Short exposure
 High resolution          time requires short
 Easily noticed           ad
                          Poor image
                          Local restrictions
Direct Mail Characteristics

 Advantages            Disadvantages

 High selectivity     High cost/contact
 Reader controls      Poor image (junk mail)
 exposure             Clutter
 High information
 content
 Opportunities for
 repeat exposures
Internet / Interactive Media Characteristics



Advantages                 Disadvantages

User selects product       Limited creative
information                capabilities
User attention and         Web snarl (crowded
involvement                access)
Interactive relationship   Technology limitations
Direct selling potential   Few valid measurement
Flexible message           techniques
platform                   Limited reach

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Chap10 Media Planning And Strategy

  • 1. 10 Media Planning and Strategy McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved.
  • 2. 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.
  • 3. Media Terminology Print Media - Publications such as newspapers and magazines. Media Vehicle - The specific message carrier, such as the Washington Post or 60 Minutes. Coverage - The potential audience that might receive the message through the the vehicle. Reach - The actual number of individual audience members reached at least once by the vehicle in a given period of time. Frequency - The number of times the receiver is exposed to vehicle in a specific time period.
  • 4. Problems in Media Planning Lack of information Inconsistent terms Serious time pressure Measurement problems
  • 5. 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 Media Use Decision Media Use Decision — Broadcast — Print — Other Media
  • 6. Developing the Media Plan Analyze the Market Establish Media Objectives Develop Media Strategy Implement Media Strategy Evaluate Performance
  • 7. MRI Report on Cell Phone Users
  • 8. Where to Promote? Brand and Category Analysis Brand Development Index Percentage ofof brand to to Percentage brand sales total U.S. sales in market total US sales in market BDI = X 100 Percentage of total U.S. Percentage of total U.S. population in in market population market
  • 9. Where to Promote? Brand and Category Analysis Category Development Index Percentage of product category total sales in market CDI = X 100 Percentage of total U.S. population in market
  • 10. Brand and Category Analysis High BDI Low BDI High CDI High market share High market share Low market share Low market share Good market Good market Good market Good market potential potential potential potential Low CDI High market share High market share Low market share Low market share Monitor for sales Monitor for sales Poor market Poor market decline decline potential potential
  • 11. Brand and Category Analysis High BDI Low BDI The market usually represents The product category shows High CDI The market usually represents The product category shows good sales potential for both good sales potential for both high potential but the brand high potential but the brand the product and the brand. the product and the brand. isn’t doing well; the reason isn’t doing well; the reason should be determined. should be determined. The category isn’t selling well The category isn’t selling well Both the product category Both the product category Low CDI but the brand is; may be a but the brand is; may be a and the brand are doing and the brand are doing good market in which to good market in which to poorly; not likely to be a good poorly; not likely to be a good advertise but should be advertise but should be place to advertise. place to advertise. monitored for sales decline. monitored for sales decline.
  • 12. Media Planning Criteria Considerations The media mix Target market coverage Geographic coverage Scheduling Reach versus frequency Creative aspects and mood Flexibility Budget considerations
  • 13. Target Audience Coverage Population excluding target market Target market Media coverage Media overexposure Target Full Partial Coverage Market Market Market Exceeding Proportion Coverage Coverage Market
  • 14. Three Scheduling Methods Continuity Flighting Pulsing Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
  • 15. Reach and Frequency Reach of One Program Reach of Two Programs Total market audience reached Total market audience reached Duplicated Reach of Both Unduplicated Reach of Both Total reached with both shows Total reach less duplicate
  • 17. 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 most circumstances. 2. Since one exposure is usually ineffective, the central goal of productive media planning 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.
  • 18. Effects of reach and frequency 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. Frequency response principles or generalizations do not 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.
  • 19. Marketing Factors Important to Determining Frequency Brand history Brand share Brand loyalty Purchase cycles Usage cycle Competitive share of voice Target group
  • 20. Message or Creative Factors Important to Determining Frequency Message complexity Message uniqueness New vs. continuing campaigns Image versus product sell Message variation Wearout Advertising units
  • 21. Media Factors Important to Determining Frequency Clutter Editorial environment Attentiveness Scheduling Number of media used Repeat Exposures
  • 22. Determining Relative Cost of Media Cost per thousand (CPM) Cost of ad space CPM = (absolute cost) X 1,000 Circulation
  • 23. Determining Relative Cost of Media Cost per rating point (CPRP) Cost of commercial time CPRP = Program rating
  • 24. Television Characteristics Advantages Disadvantages Mass coverage Low selectivity High reach Short message life Impact of sight, sound, High absolute cost and motion High production High prestige costs Low cost per exposure Clutter Attention getting Favorable image
  • 25. Radio Characteristics Advantages Disadvantages Local coverage Audio only Low cost Clutter High frequency Low attention Flexible getting Low production costs Fleeting message Well-segmented audiences
  • 26. Magazines Characteristics Advantages Disadvantages Segmentation Long lead time for ad potential placement Quality reproduction Visual only High information Lack of flexibility content Longevity Multiple readers
  • 27. Newspapers Characteristics Advantages Disadvantages High coverage Short life Low cost Clutter Short lead time for Low attention- placing ads getting capabilities Ads can placed in Poor reproduction interest sections quality Timely (current ads) Selective reader Reader controls exposure exposure Can be used for coupons
  • 28. Outdoor Characteristics Advantages Disadvantages Location specific Short exposure High resolution time requires short Easily noticed ad Poor image Local restrictions
  • 29. Direct Mail Characteristics Advantages Disadvantages High selectivity High cost/contact Reader controls Poor image (junk mail) exposure Clutter High information content Opportunities for repeat exposures
  • 30. Internet / Interactive Media Characteristics Advantages Disadvantages User selects product Limited creative information capabilities User attention and Web snarl (crowded involvement access) Interactive relationship Technology limitations Direct selling potential Few valid measurement Flexible message techniques platform Limited reach