Copyright © 2012 McGraw-Hill Companies, Inc., All right reversedMcGraw-Hill/Irwin

10

Media Planning and Strategy

Media Terminology

A series of decisions involving the delivery of messages to audiencesA series of decisions involving the delivery of messages to audiences

MediaPlanningMedia

Planning

WHAT are the goals to be attained by the media strategy and programWHAT are the goals to be attained by the media strategy and program

MediaObjectives

MediaObjectives

Decisions on HOW the media objectives can be attainedDecisions on HOW the media objectives can be attained

MediaStrategyMedia

Strategy

10-2

Media Terminology - continued

Number of different audience members exposed at least once in a time periodNumber of different audience members exposed at least once in a time periodReachReach

Number of times the receiver is exposed to the media vehicle in a time periodNumber of times the receiver is exposed to the media vehicle in a time periodFrequencyFrequency

The specific program within a medium category such as “GQ” or “Glee”The specific program within a medium category such as “GQ” or “Glee”

MediaVehicleMedia

Vehicle

10-3

General categories of delivery systems, such as TV, print, internet, radioGeneral categories of delivery systems, such as TV, print, internet, radioMediumMedium

Test Your Knowledge

For EACH of the items listed below, determine which is a medium and which is a media vehicle:

a) newspapers

b) television

c) American Idol

d) Cosmopolitan

e) magazines

f) internet

g) New York Times

h) outdoor advertising

i) Facebook

10-4

Media Plan

• Guides media selection

• Aims to find a combination of media to communicate a message: • In the most effective manner • To the largest number of potential customers• At the lowest cost

The Media Plan

Selecting vehicles within classSelecting vehicles within class

Selecting broad media classesSelecting broad media classes

Determining media strategyDetermining media strategy

Media use decision— print

Media use decision— print

Media use decision— broadcast

Media use decision— broadcast

Media use decision— other media

Media use decision— other media

Setting media objectivesSetting media objectives

Marketing Plan

Marketing Plan

Situation analysis

Situation analysis

Creative strategy plan

Creative strategy plan

10-6

Media Planning Difficulties

Measurement Problems

Measurement Problems

Lack of Information

Lack of Information

InconsistentTerminologyInconsistentTerminology

TimePressure

TimePressure

Problemsin MediaPlanning

Problemsin MediaPlanning

10-7

Sweeps Period sets ad rates

CPM – PrintCPRP - TV

Actions by competitor

Idol vs. Dance

Developing a Media Plan

Evaluate performanceEvaluate performance

Analyze the marketAnalyze the market

Establish media objectivesEstablish media objectives

Develop/implement media strategyDevelop/implement media strategy

10-8

Using Index Numbers

Percentage of users in a demographic segmentPercentage of population

in the same segment

Index = X 100

Index Number

10-9

To determine to WHOM we should advertise

The HIGHER the index, the more potential that target has

Application of Index

10-10

TARGET INDEX

Age 35-44 136

Age 65+ 39

Occupation: Professional 143

Occupation: Management 133

HHI $75,000 - $149,999 132

HHI <$20,000 43

Region: West 159

Region: South 66

Snowboarding Last 12 months

Refer to Page 345 – Figure 10-5 in Textbook for Full Chart

WHERE should we promote

To determine WHERE we should promote geographically:

We look at TWO indices:

a) CDI (Category Development Index)

and

b) BDI (Brand Development Index)

10-11

Using the Category Development Index

Percentage of total product category sales in market

Percentage of total U.S. population in market

CDI =X 100

Category Development Index

10-12

• Indicates how well the category is selling in that geographic area• The higher the index, the better the potential in that market

10-13

Map of United States: Four Regions

10-14

Percent Population By Region

WestPopulation: 20%

SouthPopulation: 20%

MidwestPopulation: 30%

NortheastPopulation: 30%

Total Population USA = 100%

10-15

Percent all Sunscreen Sold By Region

WestSunscreen: 5%

SouthSunscreen: 45%

MidwestSunscreen: 40%

NortheastSunscreen: 10%

Total Sunscreen Sold= 100%

10-16

CDI for Sunscreen Category By Region

West

5/20 x 100 = 25

South

45/20 x 100 = 225

Midwest

40/30 x 100 = 133 Northeast

10/30 x 100 = 33

Using the Brand Development Index

Percentage of brand to total U.S. sales in market

Percentage of total U.S. population in market

BDI = X 100

Brand Development Index

10-17

• Indicates how well the brand is selling in that geographic area• The higher the index, the better the potential in that market

10-18

Percent Coppertone By Region

WestCoppertone: 25%

SouthCoppertone: 15%

MidwestCoppertone: 50%

NortheastCoppertone: 10%

Total Coppertone Sold= 100%

10-19

BDI for Coppertone Brand By Region

West

25/20 x 100 = 125

South

15/20 x 100 = 75

Midwest

50/30 x 100 = 166 Northeast

10/30 x 100 = 33

10-20

CDI and BDI By Region

WestLow CDIHigh BDI

SouthHigh CDILow BDI

MidwestHigh CDIHigh BDI

NortheastLow CDILow BDI

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

10-21

Using BDI and CDI

10-22

Media Objectives

• Goals for the media program

• Some examples:

• Reach 60% of the target audience at least three times over a 6 month period

• Create a positive brand image through mood and creativity

10-23

Developing Media Strategies

• Criteria to consider during plan development

• The media mix• Target market coverage• Geographic coverage• Scheduling• Reach and frequency• Creative aspects and mood• Flexibility• Budget

10-24

The Media Mix

• Selection considerations• Objectives sought• Product characteristics• Budget

• Examples:• Visual demonstration --- use TV• Coupon delivery --- use magazines or newspapers

10-25

Reaching Target Markets

10-26

TITLE INDEX

Websites: MTV.com 279

Websites: IMDb.com 266

Websites: Hulu.com 251

Websites: iTunes.com 206

TV Show Types: Soccer 204

Websites: Pandora.com 202

Websites: disney.com 188

Websites: Gmail.com 187

TV Show Types: Sunday News 69

Websites: Farmville.com 5

Media Usage of Snowboarders

Refer to Page 353 – Figure 10-14 in Textbook for Full Chart

The higher the index, the more the potential

Information to match media to

target markets

Geographic Coverage

10-27

• Spend more media money in areas with greater potential

• Promote skis in areas that have snow!

Scheduling

• Timing promotional efforts such that they coincide with the highest potential buying times

• Methods• Continuity: Regular pattern of

advertising without gaps or non-advertising periods

• Flighting: Involves intermittent periods of advertising and non-advertising

• Pulsing: Maintains continuity, but promotional efforts are stepped up at times

Scheduling Methods

Continuity

Pulsing

Flighting

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

10-29

toilet paper detergent

snow skis

beer

Duplicated / Unduplicated Reach

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

C. Duplicated Reach D. Unduplicated Reach

Total marketaudience reached

Total marketaudience reached

Total market reached with both shows

Total reach less duplicated shows

10-30

Reach versus Frequency

• Budget constraints• Need to trade off reach vs. frequency

• message to be seen by more people• message to be seen by fewer people, but

more often

• Achieving awareness for new brands requires a lot of reach

• Optimal frequency anywhere between 3 – 10 exposures

10-31

Rating Points

• Program rating• % of US households watching the show

• Gross ratings points (GRPs)• GRP = Reach X Frequency• Need at least 2500 GRPs to be effective

10-32

Building a Media Plan

10-33

Vehicle Reach Frequency

GRPs Cumulative GRPs

American Idol

40 8 320 320

Cosmopolitan 60 2 120 440

Glee 50 10 500 940

USA Today 25 40 1000 1940

CSI 70 8 560 2500

Keep adding vehicles, till effective GRP level reached

Marketing Factors Determining Frequency

Brand HistoryBrand History CompetitionCompetition Purchase

CyclesPurchase

Cycles

Brand LoyaltyBrand

LoyaltyBrand ShareBrand Share

Usage Cycle

Usage Cycle

Marketing Factors

Marketing Factors

10-34

higher = less

new = more

high=less

daily=more

more=more shorter=more

Message Factors Determining Frequency

Message ComplexityMessage Complexity

Message UniquenessMessage Uniqueness

New vs. Continuing CampaignsNew vs. Continuing Campaigns

Image Versus Product SellImage Versus Product Sell

Message VariationMessage Variation

Wear out if high frequencyWear out if high frequency

Advertising UnitsAdvertising Units

Messageor Creative

Factors

Messageor Creative

Factors

10-35

simple=less

more=less

new=more

image=more

single=less

large=less

Media Factors Determining Frequency

Media Factors

•Clutter

•Editorial environment

•Attentiveness

•Scheduling

•Number of media used

•Repeat exposures

Creative Aspects and Mood

• Use the correct medium to support your strategy• Lancôme – print• Hallmark – TV

• Certain media create the correct mood for your brand• Skiing magazine for snow skis• Gourmet magazine for wines

10-37

Flexibility in Media Planning Strategies

Market opportunities

Market opportunities Market threatsMarket threats

Availability of media

Availability of media

Changes in media or media vehicle

Changes in media or media vehicle

FlexibilityFlexibility

10-38

Red wine beneficial Competition

Drop in ratings All media space sold

Budget Considerations

• Absolute Cost• One page ad in full color in Newsweek

magazine costs $165,000

• Relative Cost• Relationship between price paid and size

of audience (circulation)• Used to determine which vehicle is the

more cost effective option• Measured via CPM (cost per thousand)

10-39

Determining Relative Cost of Print Media

Cost of ad space(absolute cost)

CirculationCPM = X 1,000

Cost per thousand (CPM)

10-40

CPM may underestimate circulation due to Pass Along Rate (# of people who read magazine without buying it)

Example of CPM calculation

10-41

Time The Week

Cost Per Page $366,380 $72,800

Circulation 4.07 million 535,000

Calculation ofCPM

366,380 x 1,000 72,800 x 1,000

4,070,000 535,000

CPM $91.44* $136.08

The lower the CPM, the more cost efficient the media buy*TIME is the most cost efficient

Television Pros and Cons

Mass coverage

High reach

Sight, sound, motion

High prestige

Low cost per exposure

Attention getting

Favorable image

AdvantagesAdvantages

Short message life

High production cost

Low selectivity

High absolute cost

Clutter

DisadvantagesDisadvantages

10-42

Radio Pros and Cons

Local coverage

Low cost

High frequency

Flexible

Low production cost

Well-segmented audience

AdvantagesAdvantages

Clutter

Fleeting message

Audio only

Low attention getting

DisadvantagesDisadvantages

10-43

Magazine Pros and Cons

Segmentation potential

Quality reproduction

High information content

Longevity

Multiple readers

AdvantagesAdvantages

Visual only

Long lead time for ad placement

Lack of flexibility

DisadvantagesDisadvantages

10-44

Newspaper Pros and Cons

High coverage

Low cost

Short lead time for placing ads

Local markets

Timely (current ads)

Reader controls exposure

Can be used for coupons

AdvantagesAdvantages

Clutter

Poor reproduction quality

Short life

Low attention getting

Selective reader exposure

DisadvantagesDisadvantages

10-45

Outdoor Pros and Cons

Location specific

High repetition

Easily noticed

AdvantagesAdvantages

Short ads

Local restrictions

Short exposure time

Poor image

DisadvantagesDisadvantages

10-46

Direct Mail Pros and Cons

High selectivity

Reader controls exposure

High information content

Repeat exposure opportunities

AdvantagesAdvantages

Poor image (junk mail)

High cost per contact

Clutter

DisadvantagesDisadvantages

10-47

Internet Pros and Cons

User selects product information

User attention and involvement

Interactive relationship

Direct selling potential

Flexible message platform

AdvantagesAdvantages

Lack of controls

Questionable measurement techniques

Clutter

Limited reach

DisadvantagesDisadvantages

10-48

Test Your Knowledge

In terms of media vehicles, ______ would be most efficient medium if you wanted local coverage at a low cost.

A) television

B) interactive media

C) direct mail

D) magazines

E) newspapers

10-49

Evaluation and Follow-Up

Use again, or analyze flaws

How well did these strategies achieve the media objectives?

How well did the media plan contribute to attaining the overall marketing and

communications objectives?

10-50