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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

2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Media Terminology
Media Planning Media Objectives Media Strategy Media Broadcast Media A series of decisions involving the delivery of messages to audiences Goals to be attained by the media strategy and program Decisions on how the media objectives can be attained The various categories of delivery systems, including broadcast and print media Either radio or television network or local station broadcasts
2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Media Terminology
Print Media Media Vehicle Reach Publications such as newspapers, magazines, direct mail, outdoor, etc. The specific carrier within a medium category Number of different audience members exposed at least once in a given time period The potential audience that might receive the message through the vehicle The number of times the receiver is exposed to the media vehicle in a specific time period
2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Coverage

Frequency

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
2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Media use decision other media

Media Planning Difficulties


Measurement Problems Lack of Information

Problems in Media Planning

Time Pressure
2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Inconsistent Terms

Developing the Media Plan


Analyze the market Establish media objectives Develop media strategy Implement media strategy Evaluate performance
2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Analyzing Market Potential

Index Number
Percentage of users in a demographic segment
Index = Percentage of population in the same segment X 100

2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

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 X 100

2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

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

2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

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

2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Brand and Category Analysis

High BDI High CDI

Low BDI

High market share Good market potential High market share Monitor for sales decline

Low market share Good market potential

Low CDI

Low market share Poor market potential

2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Brand and Category Analysis


High BDI High CDI The market usually represents good sales potential for both the product and the brand. Low BDI The product category shows high potential but the brand isnt doing well; the reason should be determined. Both the product category and the brand are doing poorly; not likely to be a good place to advertise.

The category isnt selling well but the brand is; may be a good market in which to advertise but should be monitored for sales decline.

Low CDI

2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

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

2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Three Scheduling Methods

Continuity

Flighting

Pulsing

Jan

Feb Mar

Apr May Jun

Jul

Aug Sep Oct Nov Dec

2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Reach and Frequency


A. Reach of One Program B. Reach of Two Programs

Total market audience reached C. Duplicated Reach of Both

Total market audience reached D. Unduplicated Reach of Both

Total reached with both shows

Total reach less duplicate

2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Graph of Effective Reach


Figure 10-22

2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Marketing Factors Determining Frequency

Marketing Factors

Brand Loyalty

Brand Share

Usage Cycle

Brand History

Share of Voice

Purchase Cycles

Target Group

2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

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 Scheduling Repeat Exposures

Media Factors
Attentiveness

Editorial Environment Number of Media Used


2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Flexibility in Media Planning Strategies


Market opportunities

Market threats

Flexibility

Changes in media or media vehicle

Availability of media

2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

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

2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Determining Relative Cost of Media-Print

Cost per thousand (CPM) CPM =


Cost of ad space (absolute cost)

X 1,000

Circulation

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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

2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Television Pros and Cons


Advantages
Mass coverage High reach Impact of sight, sound and motion High prestige

Disadvantages
Low selectivity Short message life High absolute cost High production cost High production cost Clutter

Low cost per exposure


Attention getting Favorable image
2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Radio Pros and Cons


Advantages
Local coverage Low cost High frequency Flexible Low production cost Well-segmented audience

Disadvantages
Audio only Clutter Low attention getting Fleeting message

2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Magazine Pros and Cons


Advantages
Segmentation potential Quality reproduction High information content Longevity Multiple readers

Disadvantages
Long ad lead time for placement

Visual only Lack of flexibility

2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

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) Reader controls exposure Can be used for coupons
2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Disadvantages
Short life Clutter Low attention getting Poor reproduction quality Selective reader exposure

Outdoor Pros and Cons


Advantages
Location specific High repetition Easily noticed

Disadvantages
Short exposure time Short ads Poor image Local restrictions

2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Direct Mail Pros and Cons


Advantages
High selectivity Reader controls exposure High information content Repeat exposure opportunities

Disadvantages
High cost per contact Poor image (junk mail) Clutter

2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Internet Pros and Cons


Advantages
User selects product information User attention and involvement Interactive relationship Direct selling potential Flexible message platform

Disadvantages
Limited creative capabilities Websnarl (crowded access) Technology limitations Few valid measurement techniques Limited reach

2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Test Your Knowledge


In terms of media vehicles, ______ would be most efficient medium for the Got Milk slogan. A) television B) interactive media C) radio D) outdoor E) newspapers

2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin