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MIMC Lecture 6 HO

Lecture 6
The IMC Plan re-visited
Traditional Media Planning
Budgeting

IMC Planning

Situation analysis - covered in Lecture 2


Objectives
Strategies
Tactics
Action
Control - covered in lecture 2

Marketing communications
objectives
Must be linked to corporate and marketing
objectives!
Must be measurable!
Awareness, interest, desire, action, post
purchase resonance, loyalty
SMARTT
Measurability how?

MIMC Lecture 6 HO

Communications objectives
Category need
Brand awareness
Brand
knowledge/comprehension
Brand attitude
Brand purchase intention
Purchase facilitation
Purchase
Satisfaction
Brand loyalty

Awareness
Interest
Desire
Action
Loyalty/nudging

85% AWARENESS; 55% KNOWLEDGE; 20% POSITIVE ATTITUDE; 5% PURCHASE


CAMPAIGN LENGTH OF 12 MONTHS.

Strategies
Communication strategy
Generic
Pre-emptive
Unique selling proposition
(USP)
Brand image
Positioning
Resonance
Affective
Informational
High involvement
Low involvement
Push/Pull/Profile

media strategy

The media planning process


Assess the communications environment

Describe the target audience

Set media objectives

Select the media mix

Buy media
De Pelsmacker et al

MIMC Lecture 6 HO

Assessing the communications


environment
What is the competition doing?
Category spending in the product category
Share of voice
Relative advertising spending of the competition
SOV = Competitions advertising spend
total category spending
Share of market

Media mix

Describe the target audience


What is the media behaviour of the target
Which media
Which vehicles
At what time
Which days
This is indispensable information!

Media objectives
Should be derived from the communications
objectives
Should be concrete, measurable & realistic
Should include specific characteristics

MIMC Lecture 6 HO

Trends in media
Classified as:
Active and passive
Print and electronic
Paid, owned and earned

All marketing communications must be carried


by some form of medium
Anything which acts as a vehicle for transmitting
comms from brand to target audience can be
classed as media
From single exposure media to multi-content
platforms

6 Main
media
Classes

Type of media
Anything capable of
Carrying a message

Vehicles which are selected to carry


an advertisers message

Broadcast

Television
Radio

ITV, Big Brother, X Factor


Virgin 1215, Classic FM

Print

Newspapers
Magazines (consumer)
Business

Sunday Times
Cosmopolitan
The Grocer

Outdoor

Billboards,
Transit

48 & 96 sheet
Taxis, buses

In-store

Point of purchase
Packaging

Bins, signs, displays


Crisp wrapper design

Other

Cinema
Exhibitions
Product placement
Ambient, WOM
Guerrilla

Pearl & Dean


Ideal home
Films, TV, Books
Litter bins, uniforms, people
Fly posting

New media

Internet
Digital TV
CD-ROM

Web sites
Teletext
Music, educational

Blending personal & mass media consumer media use


Traditional media consumption = straightforward patterns of behaviour.
Media research focused on the size and composition of audiences.
Media devices and user controls has made media consumption far more
complicated and nuanced.
Note the blending of personal and mass media.
While mass and direct media, have long been commercialized, personal
media such as telephone and personal written communications have not.
The digitization of personal media as e-mail, wireless phones and instant
messaging provides opportunities for advertisers to attach messages to
personal communications.

MIMC Lecture 6 HO

The existing bedrock of modern advertising


& media planning
Audiences can be aggregated into monolithic entities with
homogenous tastes (Napoli 2003).
Advertising can attach itself to media content and project itself
onto audiences by interrupting the delivery of that content
(Malthouse, Calder, and Tamhane 2007).

Consumers will accept the intrusive delivery of commercial


messages in exchange for free, or nearly free, content
(Moorman, Neijens, and Smit 2005).

Brand messages generate brand awareness and preferences


that translate, however loosely, into consumer spending (Tellis
2005).

Brand communications can be bundled into media plans that


span multiple vehicles which constitute a relevant array of
exposures to target consumers (Lee and Park 2007).
This will all change (see Mulhern 2009 paper)

The new bedrock


The Internet replaces this industrial era model of
communication with a networked information system that
has as its bedrock a set of properties that look more like
an open, free marketplace than the centrally controlled,
top-down rigid one of mass communications. Mulhern 2009

Characteristics
Frequency

Cost

Continuity

Reach

Media
Objectives

Weight

De Pelsmacker et al

MIMC Lecture 6 HO

Characteristics -Frequency
How many times a
consumer of the target
group, on average, is
expected to be exposed
to the message within a
specified time period
Target groups
Media
Media Vehicles

Tool box (example)


Mintel
Acorn
BARB TV
NRS Newspapers
& Magazines
TGI
JICREG
RAJAR Radio
NMR
ATLAS on line
BBS B2B
POSTAR

Characteristics - Reach
The number or percentage of people who are expected to
be exposed to the advertisers message during a specified
period

GRP gross rating points (Reach x


Frequency) Nielsen US TV

Characteristics - Weight
The weight of a
campaign is typically
expressed as GRPs.
OTS opportunities
to see
Effective reach

Exposures
1
2
3*
4
5
6
7

Reach
20.0%
16.0%
11.5%
6.0%
3.5%
1.8%
1.2%

Reach and frequency distribution

MIMC Lecture 6 HO

Characteristics - Continuity
Continuous schedule
Pulsing schedule -drip
Flighting schedule burst

Characteristics - Cost
The cost of a medium is usually expressed as
the cost per thousand
CPT or CPM (Roman numeral M for 1,000)
CPM = cost of the medium X 1,000
Total reach

CPT-TM cost per 1,000 of the target group


CPT-TM = Cost of the medium X1,000
(Useful) reach

MIMC Lecture 6 HO

Global Adspend Trends, 2014 (f)


Year-on-Year % Change, PPPs (Current Prices)

Source: Warc, International Ad Forecast 2013/14 (April 2013).

www.warc.com

Consumer Survey 2014: Average media use (hours)

TV

2013

2.80

6.85

3.25

0.90

China

2012

3.24

5.96

2.37

0.61

China
Great Britain

2011
2013

23.20

6.50
8.65

13.40

3.87

2.94

0.56
0.47

Great Britain

2012

23.40

8.83

14.20

4.01

3.06

0.52

Great Britain

2011

24.20

9.19

4.44

3.26

0.44

USA

2013

1.2**

4.45***

2012
2011

USA
USA
Note:

Radio Internet

News
papers

Year
China

Mags Cinema

Notes
TGI China
(CNRS)
www.sinomonitor.
com
2010 onwards:
TGI Great Britain
www.bmrbtgi.co.uk

National
Consumer
Survey
www.smrb.com

Data will vary by market from year to year.


The following definitions apply unless otherwise stated:

TGI

TV = average hours viewed per week

Radio = average hours listened per week

Internet = average hours spent last month

Newspapers = average number read in last 7 days

Magazines = average number read last month

Cinema = average number of visits last month

Time spent by medium by age, Q4 2012


Q: How many hours do you spend doing X on a typical day?

No. of hours, based on 31 markets


Source: GlobalWebIndex, Global Media Consumption: The Digital Reality, March 2013
Extracted from Adstats: Global media consumption

Media trends

MIMC Lecture 6 HO

Multi-tasking while watching TV, Q4 2012


Q: Which of the following devices have you used while watching TV?

% of respondents, based on 31 markets


Source: GlobalWebIndex, Global Media Consumption: The Digital Reality, March 2013
Extracted from Adstats: Global media consumption

Media trends

Online activity while watching TV, Q4 2012


Q: The last time you were watching TV and using the internet, which of the following did you do?

% of respondents, based on 31 markets


Source: GlobalWebIndex, Global Media Consumption: The Digital Reality, March 2013
Extracted from Adstats: Global media consumption

Media trends

Device ownership: Cross-screen engagement study 2014

MIMC Lecture 6 HO

Selecting media
The different media should be evaluated:
Quantitative e.g.= Reach, frequency, selectivity,
geographic flexibility, speed of reach (delayed or not?)
message life, seasonal influence.

Qualitative e.g.= image- building capability,


emotional impact, quality of reproduction, demonstration
capability

Technical criteria = Production cost, media buying


characteristics, media availability

Traditional media options


Broadcast: TV & Radio
Print: Newspapers, Magazines (consumer & business)
Outdoor: Billboards, Street furniture & Transit
Digital: Internet, Digital TV & CD-Rom
In-store: POP & Packaging
Other: Cinema, Exhibitions, Product Placement,
Ambient, Guerrilla (fly posting)

Obama change campaign


Media type

Numbers

Email

13m on email list; received 7000 variations of > 1b emails

Donors

3m online donors who contributed 6.5m times

Social websites

5m friends on > 15 social networking sites; 3m friends on


Facebook alone

Website

8.5m monthly visits to myBarackObama.com


2m profiles with 400,000 blog posts
35,000 volunteer groups that held 200,000 offline events
700,000 fundraising hubs that raised $30m

Video

Nearly 2000 official YouTube videos viewed > 80m times


442,000 user-generated videos on YouTube

Mobile

3m people signed up for the text-messaging programme,


each receiving 5-20 monthly messages

Phone calls

3m personal calls made in the last 3 days before election


Edelman 2009

MIMC Lecture 6 HO

The Marcoms budget


Historical Method

Common budgeting method.


May be based on last years with a percentage increase.
Nothing to do with advertising objectives

Percentage of
Sales

Compares total sales with the total advertising (or


marketing communication) budget during a previous
time period to compute a percentage.

All you can


afford
Competitive
method
Task-objective
Method (topdown, bottomup)

Allocates whatever is left over to advertising.


Companies who use this dont value advertising very
much.
Relates the amount invested in advertising to the
brands share of market.
Share of Voice
Most common method.
Looks at objectives set for each activity, and determines
the cost of accomplishing each objective.

Top-Down v
Bottom-Up
Budgeting
Promotion objectives
are set
Top Management sets
the spending limits
Activities needed to achieve
objectives are planned
Promotion budget set to
stay within spending limit

Costs of promotion
activities are budgeted
Total promotion budget is
approved by top management

SOSTAC
Tactics - which creative solution, with
which media and when?
Action (3Ms) Men and Women, Money
and Minutes.
Use a Gantt chart
Control - how will you measure the
effectiveness of your recommendations?

MIMC Lecture 6 HO

Gantt Chart
Tactical timings of comms tools
Jan

Feb

Mar

Apr

May

Jun

Adv
TV
Press
Sales Prom
Sample
Competition
Direct Mktg
Mailshots
Telesales
PR
Sponsorship
Packaging
WOM

Gantt Chart
Action plan for a mail shot
Wk1 Wk2 Wk3 Wk4 Wk5 Wk11 Wk12
Creative
brief
List brief

X
X

List
proposal

Visual
concepts

Visuals
agreed
Final copy
design
Mail
house
delivery
Mail

X
X
X
X