Ch. 10 Media Planning and Strategy

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Ch. 10 Media Planning and Strategy Powered By Docstoc
					Ch. 10 Media Planning and Strategy
Basic Terms and Concepts
Media Planning
Media Plan
Media Objectives
Media Strategies
Media Vehicle
Developing the Media Plan

         Market Analysis

         Establishment of
         media objectives

         Media Strategy
        and implementation

         Evaluation and
Market Analysis
• To whom shall we advertise?
Index = Percentage of users in a demographic segment                        x 100
        Percentage of population in the same segment
Age                 Population in           Product Use
Segment             Segment (%)             in Segment (%)             Index
18-24                15.1                       18.0                     119
25-34                25.1                       25.0                     100
35-44                20.6                       21.0                     102
45+                  39.3                       36.0                      91

1) What does an index of 100, >100, and <100 mean?
2) Will “population in a segment” sum to 100%? Why or why not?
3) Will “product users in a segment” sum to 100%? Why or why not?
Market Analysis (cont.)

• What internal and external factors are influencing?

Internal Factors

External Factors
Market Analysis (cont.)
• Where to promote (geographically)?
1) Buying Power Index (or Living Expense Index)
2) The Brand Development Index (BDI)
BDI = Percentage of brand to total U.S. sales in the market x 100
       Percentage of total U.S. population in the market
3) The Category Development Index (CDI)
CDI = Percentage of product category total sales in the market x 100
       Percentage of total U.S. population in the market
1) What does BDI and CDI mean?
2) What do combinations of BDI and CDI tell us? (e.g., Pepsi & Coke)
Establishing Media Objectives

Media objectives are the goals for the media
 program and should be limited to those that
 can accomplished through media strategies.
 Such objectives are often expressed in terms of
 coverage, reach, frequency, scheduling, etc.
Developing & Implementing Media Strategy
• Developing a Media Mix
• Determining Target Market Coverage (exceedingly, fully,
• Determining Geographic Coverage (different areas might receive
  different form and degree of media emphasis)
• Scheduling (continuity, flighting, pulsing)
• Reach versus Frequency (trade-off b/t them)
• Creative Aspects and Mood (selecting appropriate media to match
  the Ads)
• Flexibility
• Budget Considerations
Reach versus Frequency

1) Determine what levels of reach and frequency are needed
2) Establishing reach and frequency objectives (un/duplicated)
3) Gross Rating Points (GRPs) and Target ratings points (TRPs)
                GRP = Reach (%) x Frequency
Reach versus Frequency (cont.)

4) Determining effective reach
• Effective reach

• Average frequency
Ex: 50% of audience is reached 1 time; 30% is
  reached 5 times; 20% is reached 10 times. Thus
  the average frequency is 4.0.
Budget Considerations
Absolute cost of media
Relative cost of media
1) Cost per thousand (CPM) for magazine industry
    CPM = Cost of ad space (absolute cost) x 1,000
2) Cost per ratings point (CPRP) for broadcast media
    CPRP = Cost of commercial time
                  Program rating
3) Daily inch rate for newspaper
    Cost per column inch of the paper
Evaluation and Follow-up

To determine the media program’s effectiveness, two
  questions need to be answered:

1) How well did these strategies achieve the media

2) How well did this media plan contribute to attaining
   the overall marketing and communications objectives?
 Ch. 11 Evaluation of Broadcast Media of
             Television and Radio
Television could combine visual images, sound,
  motion, and color into a program, thus is
  considered an ideal advertising medium.
      Structure of the Television Industry
• Local Stations and Networks

• Cable Television
• Public Television
• Syndication

• Direct Broadcast Satellite (DBS) Services
     Buying TV Time: Network vs. Spot
• Network and Cable advertising

• Spot and local advertising (national spot, local advertising)

• Syndicated Programs: shows that are sold or distributed on a
  station-by-station, market-by-market basis.
Buying TV Time: Different Buying Modes
• Sponsorship

• Participations

• Spot announcements
Buying TV Time: Selecting Time Periods
           and Programs
Considerations here include the selection of a specific time
  period or daypart segment and audience size and
  demographic composition.
       Common Television Dayparts             .

Morning            7am - 9am, M~ F
Daytime            9am - 4:30pm, M~F
Early fringe        4:30pm - 7:30pm, M~F
Prime-time access   7:30pm -8pm, Sun.~Sat.
Prime-time          8pm - 11pm, M~Sat., and
                    7pm-11pm, Sun.
Late news           11-11:30pm, M~F
Late fringe         11:30-1am, M~F
          Measuring the TV Audience

Audience Measures
• Television Households

• Program Rating = Number of Household turned to show x 100
                   Total number of U.S. Household
• Households Using Television

• Share of Audience = Number of Households turned to show x 100
                         U.S. households using TV
     Audience Information Sources

• The source of national and network TV
  audience information is the Nielsen
  Television Index (NTI)

• Information on local audiences is
  provided by Nielsen Station Index (NSI).

In contrast to television, radio has been called the
  Rodney Dangerfield of media because it gets
  little respect from many advertisers. However,
  it has its own uniqueness.
              Buying Radio Time
• Network Radio vs. Spot Radio vs. Local Radio

• Time periods and programs

• Audience Information

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