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Media Planning and Strategy

2003 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
2003 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
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin



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
2003 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
2003 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
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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

2003 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

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Brand and Category Analysis

High BDI High CDI


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

Low market share Good market potential


Low market share Poor market potential

2003 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.


2003 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

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Media Scheduling
Advertising is run steadily throughout the period. Advertising is run heavily every other month or every two weeks. Advertising combines continuous scheduling with flighting.

Continuous Media Schedule Flighted Media Schedule Pulsing Media Schedule

Seasonal Media Schedule

Advertising is run only when the product is likely to be used.

Three Scheduling Methods





Feb Mar

Apr May Jun


Aug Sep Oct Nov Dec

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Media Selection Considerations

Cost per Contact Reach Frequency
The cost of reaching one member of the target market. The number of target consumers exposed to a commercial at least once during a time period.

The number of times an individual is exposed to a message during a time period. The ability of an advertising medium to reach a precisely defined market.

Audience Selectivity

Media Scheduling Timing and sequencing of advertisements Media scheduling is influenced by

Sales patterns Repurchase cycles Competitors Activities

Reach Frequency Gross Rating Point

Gross Rating Point

GRP is the sum of ratings achieved by a specific media vehicle or schedule. It represents the percentage of the target audience reached by an advertisement. If the advertisement appears more than once, the GRP figure represents the sum of each individual GRP. In the case of a TV advertisement that is aired 5 times reaching 50% of the target audience, it would have 250 GRP = 5 x 50% -- ie, GRPs = frequency x %

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

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Graph of Effective Reach

Figure 10-22

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Marketing Factors Determining Frequency

Marketing Factors

Brand Loyalty

Brand Share

Usage Cycle

Brand History

Share of Voice

Purchase Cycles

Target Group

2003 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

Editorial Environment Number of Media Used

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Determining Relative Cost of Media-Print

Cost per thousand (CPM) CPM =

Cost of ad space (absolute cost)

X 1,000


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Determining Relative Cost of Media-Broadcast

Cost per rating point (CPRP) CPRP =

Cost of commercial time Program rating

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Media Selection
Coverage is the theoretical maximum number

of consumers in the retailers target market that can be reached by a medium and not the number actually reached. Reach is the actual total number of target customers who come in contact with an advertising message. Cumulative Reach is the reach that is achieved over a period of time.

Media Selection

Frequency is the average number

of times each person who is reached is exposed to an advertisement during a given time period. Cost Per Thousand Method (CPM) is a technique used to evaluate advertisements in different media based on cost. The cost per thousand is the cost of
the advertisement divided by the

Media Selection

Cost Per Thousand Target Market

(CPM-TM) The cost per thousand per target market is the cost of the advertisement divided by the number of people in the target market viewing it, which is then multiplied by 1,000. Impact refers to how strong an impression an advertisement

Major Types of Advertising Media

Newspapers Magazines Radio Television Outdoor Media Internet

Alternative Media

Has grown to rival newspapers as the dominant advertising medium Greatest share of TV ad revenues come from companies that advertise nationally Virtual Ads that are superimposed onto sporting events -- they seem to be part of the arenas signage, but cant be seen by those attending the event Another trend: abbreviated spots 15 and 30 second spots Cable TVs share of ad revenues has grown, while the networks share is



On Line http://www.fox.com http://www.abc.com

Short life of message Expensive with high campaign cost Little demographic selectivity with network Long-term advertiser commitments Long lead times Clutter

Wide, diverse audience Low cost per thousand Creative and demonstrative Immediacy of messages Entertainment carryover Demographic selectivity with cable

Television Pros and Cons

Mass Coverage High Reach Impact of Sight, Sound and Motion High Prestige Low Cost Per Exposure Attention Getting Favorable Image
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Low Selectivity Short Message Life High Absolute Cost High Production Cost Clutter

Popular choice for up-to-the-minute newscasts Also popular for targeting advertising messages to local audiences Recently, has become one of the fastest-growing media alternative Playing an increasingly important role as a national, an even the global, favorite


On Line http://www.radioindustry.about.com

No visual treatment Short advertising life

Selectivity and audience segmentation Immediate and portable Geographic flexibility Entertainment carryover Short-term ad commitments

High frequency to generate retention

Commercial clutter

Background distractions

Radio Pros and Cons

Local Coverage Low Cost High Frequency Flexible Low Production Cost Well-segmented Audience

Audio Only Clutter

Low Attention Getting

Fleeting Message

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Divided into two broad categories of consumer magazines and business magazines These categories are also subdivided into monthly publications and weekly publications Top five in the U.S.
AARP The Magazine Readers Digest TV Guide Better Homes & Gardens National Geographic

Automotive, retail, and movies and media advertisers are the biggest


Higher cost per contact
Long-term advertiser commitments

Good reproduction Demographic selectivity Regional/local selectivity Long advertising life High pass-along rate

Slow audience build-up

Limited demonstration capabilities

Lack of urgency
Long lead time

Magazine Pros and Cons

Segmentation Potential Quality Reproduction High Information Content Longevity Multiple Readers

Long Lead Time for Ad Placement Visual Only Lack of Flexibility

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Continue to dominate local markets Retail and classified advertisement are key Important advantages include flexibility and community prestige Newspapers facilitate coordination between local and national advertising Newspapers offer powerful merchandising services like promotional and research support

Disadvantages Limited demographic selectivity
Little color

Year-round readership

Geographic selectivity
Immediacy High individual market coverage Short lead time

May be expensive
Low pass-along rate Clutter Mass market medium

Newspaper Pros and Cons

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
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Short Life Clutter Low Attention Getting Poor Reproduction Quality Selective Reader Exposure

Outdoor Advertising
Includes billboards, painted bulletins or displays (such as those appearing on walls of buildings), and electric spectaculars The oldest and simplest media business Is particularly effective along metropolitan streets and other hightraffic areas Faces public concern over aesthetics

Outdoor Media
Advantages Disadvantages
Short message Lack of demographic selectivity High noise level

High exposure frequency Moderate cost Flexibility Geographic selectivity Broad, diverse market

Outdoor Pros and Cons

Location Specific High Repetition Easily Noticed

Sort Exposure Time Short Ads

Poor Image
Local Restrictions

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Direct Mail
Almost half is immediately discarded as junk Detailed information and personalization Use of direct-mail accounts for 19% of total advertising expenditures

Direct Mail Pros and Cons

High Selectivity Reader Controls Exposure High Information Content Repeat Exposure Opportunities

High Cost Per Contact Poor Image (Junk Mail) Clutter

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Interactive Media
Contains characteristics of both print and broadcast media Enhances two-way communication and encourages audience participation Although E-mail is considered a form of direct-mail, it has recently taken on the characteristics of interactive media Companies use interactive media to supplement other media

Fast growing

Difficult to measure ad effectiveness and ROI

Ability to reach narrow Ad exposure relies on target audience click through Short lead time Not all consumers Moderate cost have access to internet

Internet Pros and Cons

User Selects Product Information User Attention and Involvement Interactive Relationship Direct Selling Potential Flexible Message Platform

Limited Creative Capabilities Websnarl (Crowded Access) Technology Limitations Few Valid Measurement Techniques Limited Reach

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Examples of Alternative Media

Fax Machines

Video Shopping Carts Computer Screen Savers Interactive Kiosks

Ads in Movies and Videos
On Line http://www.looksmart.com http://www.yahoo.com

Other Advertising Media

Includes transit advertising placed both inside and outside the buses, subway trains installations, and commuter trains Also includes ads on the roof of taxicabs, long bus stop shelters in benches, telephone booths, and even parking meters Supplementary advertising media include:
Cinema advertising, Ads on T-shirts, Inlaid ads in store flooring, Ads in printed programs of live-theater productions, Previews of movie videocassettes, Directory advertising (e.g., Yellow Pages), Messages on Hot-air balloon and blimps

Measuring Advertising Effectiveness

Pretesting is the assessment of an advertisement for its effectiveness before it is actually used Methods used include:
Focus groups Blind product tests Tests using mechanical devices

Post testing is the assessment of an advertisements effectiveness after it has been used Methods used include:
Readership Report Unaided recall tests Split runs
A print run of a newspaper during which some articles or advertisements are changed to produce a different edition


Ethics in Nonpersonal Selling

Some call for advertising to children be curtailed Others would ban alcoholic beverage advertising Marketers must carefully draw the line between advertising and entertainment Cookies in cyberspace ads Puffery and Deception
The Uniform Commercial Code