MODULE 3

TYBMS VI SEM
MODULE 3-SYLLABUS
 MODULE 3 SYLLABUS

3.Media Scheduling · Meaning, Importance · Factors Affecting Scheduling:

Sales Pattern,

• Purchase Cycle, Product Availability, Competitive Activity, Marketing Task,

Budget
• Constraints, Target Group. · Scheduling Patterns – Continuity, Flighting,
pulsing · Scheduling
• Strategies for Creating Impact: Road Block, Day or Day part · Emphasis,
Multiple Spotting,
• Teasers, Negotiation Strategies (Types of negotiation strategies for media
buying)
 MEDIA BUDGET

Media planning starts and finishes with media budget.

The availability of finance will determine what kind of media can be
used.
Media budget encourages more precise planning and rational allocation
of resources.

“ The man who stops advertising to save money is the man who stops the
clock to save time”
 FACTORS TO BE CONSIDERED WHILE
FRAMING A BUDGET

Advertising task ( What exactly he wants to achieve through media plan)

Competition framework
Market dominance
Market coverage
Media Cost
Market task
Pricing
Frequency of purchase
Frequency of advertisement
Product lifecycle stage
 IMPORTANCE OF MEDIA BUDGET

Provides proper direction to media expenditure.

Facilitates media planning and execution
Acts as a controlling device in media expenditure.
Facilitates selection of suitable media
Guides management in media activities.
Keeps media expenditure within limits
Introduces rational approach in media .( rational use of funds)
Facilitates evaluation of media expenditure.
 METHODS OF SETTING MEDIA BUDGET

1. STATUS QUO
2. INFLATION ADJUSTED
3. ADVERTISING SALES
4. CASE RATE AND ADVERTISING MARGIN METHOD
5. SHARE OF MARKET
6. YARDSTICK METHOD
7. EFFECTIVE FREQUENCY AND REACH METHOD
8. MARGINAL ANALYSIS
9. ROI BASED APPROACH
10. EXPERIMENTAL APPROACH
11. BREAK EVEN PLANNING
METHODS OF SETTING MEDIA BUDGET

STATUS QUO:

Status quo means maintaining the same position.

Based on assumption worked well in previous year.
Attempt to allocate funds more efficiently.
Status quo means maintaining current or existing state of
affair.
 METHODS OF SETTING MEDIA BUDGET

2. INFLATION ADJUSTED

Reveals the return on an investment after removing the effects of

inflation.
Inflation adjusted account for the fact that the value of money is not
the same as it was ten or twenty years.(value has declined)
Some price has to rise in real terms and others will have to fall in real
terms.
 METHODS OF SETTING MEDIA BUDGET

3. ADVERTISING SALES

Advertising sales is closely related to effectiveness of ad campaign.

Campaign succeeds that the company is able to generate revenues.
Higher advertising frequency will require higher budget.
 METHODS OF SETTING MEDIA BUDGET

4.CASE RATE AND ADVERTISING MARGIN METHOD

Any combination of methods may be employed in the formation
and allocation of media budget.
Preparing the first budget is the most difficult task and more
factual information will be included.
Under case rate and advertising method advertiser must first
calculate minimum and maximum allowable budgets.
Margin is gross profit expressed as a percentage of the selling
price.
 METHODS OF SETTING MEDIA
BUDGET

5. SHARE OF MARKET

 Media budget bases its calculations on external

market trends.
Ex: Advertiser who has 20 % market share, he
should budget to account for 20 % of total
advertising money spent in the industry.
 METHODS OF SETTING MEDIA BUDGET

6. YARDSTICK METHOD
Uses a yardstick to determine what the revenues and profits have been if the
situation had not taken place.
To calculate loss , past revenues and profits might act as yardstick against
which revenues and profits for the damage period are compared.
Experts may use media projections as the yardstick e.g., industry average is
taken as yardstick.
Ex: Industry average is taken as yardstick , this method is often called
benchmark method.
 METHODS OF SETTING MEDIA BUDGET

7. EFFECTIVE FREQUENCY AND REACH METHOD:

Effective frequency refers to the average number of times the audience

is exposed to a media vehicle in a given period of time.
Advertisers tends to be ineffective when frequency is reduced.
Media planners can know through the use of reach how many different
prospects or households will see the as at least once over a period of
time.
Audience members are counted only once in a reach measurement.
 METHODS OF SETTING MEDIA BUDGET

8. MARGINAL ANALYSIS:

Marginal Analysis involves the cost of an activity is

measured against incremental changes in volume to
determine how the overall change in cost will affect the
bottom line of business.
Optimal budget would be at that point where marginal
revenues are equal to marginal costs.
Marginal analysis indicates the efficiency level of
investment beyond which it is not generating more profits
 METHODS OF SETTING MEDIA
BUDGET
9. ROI BASED APPROACH

ROI is the amount of profit an investment generates

ROI Approach to budgeting looks at advertisement as an
investment and not as cost.
By making rational investment in advertising advertisers
expects to generate profits.
The use of media mix should be so planned that advertisers
get more than the investment.
 METHODS OF SETTING MEDIA BUDGET

10. EXPERIMENTAL APPROACH

Media budget reflects the importance given to the

function of firm’s advertising.
Advertisers uses facts and experiments for different
budget options in one or more market areas and uses
the result to guide budget decision.
Results are compared and advertisers estimate how
the varying budgets will perform.
 METHODS OF SETTING MEDIA BUDGET

11. BREAK EVEN PLANNING

This method of budget setting seeks to determine the point at
which the total cost of promotion exceeds the total revenue,
identifying the point where the effort cannot break even.
Break even planning does not show profitability. It may show
some profit at different levels of sales..
Any unit sold below the break even units will bring loss to
business and any unit sold above the break even units will
bring profit to business.
 MEDIA BUYING

MEDIA BUYING :
In Media Buying, media and media vehicles are selected for the
purpose of advertising and in media operations, suitable
arrangements are made for the publication of advertisement in the
newspaper.
 ROLE OF MEDIA BUYER

SPACE AND TIME BOOKING

EMPLOYMENT OPPORTUNITIES
JOB DESCRIPTION ( Negotiate with advertising and sales agents )
JOB PROFILE (Identify target audience, must keep knowledge Up to date
relating to distribution figures and audience figures)
LIASION WORK : ( best of relations with the media companies and
clients)
RESEARCH ANALYSIS
MANAGERIAL DUTIES
PERFORMANCE ORIENTED
 OBJECTIVES OF MEDIA BUYING

To achieve desired reach and frequency

To use social media as required
To define what is to be accomplished
To make goals measurable and actionable
To be direct and to the point in media planning
To serve target audience through media mix.
To explore internet advertising through appropriate strategy.
To integrate offline and online advertising
To remain in good books of media owners
 MEDIA BUYING PROCESS

PRESENTATION
POWER OF
BUYING BRIEF DEAL
RELATIONSHIPS
MANAGEMENT

ENVIRONMENT BENCHMARKIN
POST BUY
AL ANALYSIS G BUYING PLAN

SCIENCE OF
ART OF BUYING
BUYING
 MEDIA BUYING PROCESS

1. BUYING BRIEF

Media planner prepares advertising plan and
arranges a meeting with the client.
This preparation is called buying brief which
consists of checklist to ensure that no important
item has been left out.
 MEDIA BUYING PROCESS

2. ENVIRONMENTAL ANALYSIS

Environmental analysis is a process by which
business keeps track of relevant environment in
order to identify opportunities and threats
influencing their business.
A PESTLE analysis is the most common way to
understand environmental analysis.
 MEDIA BUYING PROCESS

3. SCIENCE OF BUYING
Buying represents softer side of media.
The main function of media buying is negotiation with
media owner and clients.
1. TV (Tracking media performance, benchmarking past
deals. Channel consideration set, competitors' buying
strategy.
2. PRINT ( Tracking media performance, benchmarking past
deals, publication consideration set,
 MEDIA BUYING PROCESS

4.ART OF BUYING
Art of Buying is done with touch of beauty whereby
both parties remain content and happy.
A good buy depends on:
Knowledge and acumen of the buyer.
Negotiation skills of the buyer and
Relationship with media partners.
 MEDIA BUYING PROCESS

5.BENCHMARKING BUYING PLAN

Benchmarking buying plan is a relative matter.

There is no one fixed benchmark for all media because the
importance and reach of media differ.
Television has much wider coverage as compared to newspaper, its
benchmarking has to be different where discounts are not common.
Print media known to offer discounts rates are determined by
individual business volume.
 MEDIA BUYING PROCESS

6.POWER OF RELATIONSHIPS:
The most important property of human beings is the
capacity to form and maintain relationships.

Media buying succeed depends largely on good

relationships with media partners.
 MEDIA BUYING PROCESS

7. PRESENTATION DEAL MANAGEMENT

Deal Management enables to keep an eye on the deal in
order that the campaign is well executed.
Deal management can be fairly complicated in a multi-
brand, multi vehicle and multi campaign annual deal.
Deal management is a part of Marketing Information
System(MIS). The information is processed, arranged and
stored for ready reference.
 MEDIA BUYING PROCESS

8. POST BUY:
Post buy deals with a question of accountability.
Media buyer can buy space in the publication, schedule
it on TV at the appropriate time and put in the website
correctly.
Print Post buy