adman lecture 9

Advertising ManagementLecture 10: Media Planning Strategy

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Outline

Developing the Media Plan Market Analysis Establishing media objectives Media Strategy Development and

Implementation Evaluation and follow-up

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Some Basic Concepts

Media Planning the series of decisions involved in delivering the

promotional message to the prospective purchasers and/or users of the product or brand.

requires development of specific media objectives and specific media strategies (plans of action) designed to attain these objectives.

Medium the general category of available delivery systems,

which includes broadcast media (like TV and radio), print media (like newspapers and magazines), direct mail, outdoor advertising, and other support media.

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Some Basic Concepts

Media Vehicle The specific carrier within a medium

category. Reach

a measure of the number of different audience members exposed at least once to a media vehicle in a given period of time.

Coverage refers to the potential audience that might

receive the message through a vehicle. Frequency

the number of times the receiver is exposed to the media vehicle in a specified period.

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Problems in Media Planning

Insufficient information Inconsistent terminologies Times pressures Difficulty measuring effectiveness

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Developing the Media Plan

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Market Analysis and Target Market Identification To whom shall we advertise?

Market research data Index number:

An index number over 100 means use of the product is proportionately greater in that segment than in one that is average (100) or less than 100.

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Market Analysis and Target Market Identification What internal and external factors are

operating? Internal factors may involve the size of the media

budget, managerial and administrative capabilities, or the organization of the agency.

External factors may include the economy (the rising costs of media), changes in technology (the availability of new media), competitive factors, and the like.

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Organizing the media buying department

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Market Analysis and Target Market Identification Where to promote?

Using indexes to determine where to promote Survey of Buying Power Index from market

research Brand Development Index

Category Development Index (CDI)

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Calculating BDI

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Using CDI and BDI to determine market potential

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Using BDI and CDI Indexes

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Establishing Media Objectives Developing and Implementing Media

Strategies The Media Mix Target Market coverage

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Establishing Media Objectives Developing and Implementing Media

Strategies Geographic Coverage Scheduling

Continuity: refers to a continuous pattern of advertising, which may mean every day, every week, or every month. The key is that a regular (continuous) pattern is developed without gaps or nonadvertising periods. Such strategies might be used for advertising for food products, laundry detergents, or other products consumed on an ongoing basis without regard for seasonality.

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Developing and Implementing Media Strategies Scheduling

Flighting: employs a less regular schedule, with intermittent periods of advertising and non-advertising.

Pulsing: actually a combination of the first two methods. Continuity is maintained, but at certain times promotional efforts are stepped up.

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Promotional Scheduling

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Characteristics of Scheduling Methods

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Developing and Implementing Media Strategies Reach vs. Frequency

Establishing reach and frequency objectives

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Using Gross Rating Points (GRPs): A summary measure that combines the program rating and the average number of times the home is reached during this period (frequency of exposure) GRP = Reach x Frequency

Target Rating Points (TRPs): refer to the number of people in the primary target audience the media buy will reach—and the number of times. Unlike GRP, TRP does not include waste coverage

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The Effects of Reach and Frequency

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Determining Effective Reach: represents the percentage of a vehicle’s audience reached at each effective frequency increment. This concept is based on the assumption that one exposure to an ad may not be enough to convey the desired message. Average frequency: the average number of

times the target audience reached by a media schedule is exposed to the vehicle over a specified period.

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Factors important in determining frequency levels

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Developing and Implementing Media Strategies Creative Aspects and Mood Flexibility

1. Market opportunities2. Market threats3. Availability of media4. Changes in media or media vehicles

Budget considerations Absolute costs of the medium or vehicle is the

actual total cost required to place the message. Relative costs refers to the relationship between the

price paid for advertising time or space and the size of the audience delivered; it is used to compare media vehicles.

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Developing and Implementing Media Strategies Budget considerations

Determining the relative costs of media Cost per thousand (CPM)

Cost per ratings point (CPRP)

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Developing and Implementing Media Strategies Budget considerations

Determining the relative costs of media Daily Inch Rate: For newspapers, cost

effectiveness is based on the daily inch rate, which is the cost per column inch of the paper.

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Comparing various media

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Sample Computation (CPM)

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Sample Computation (CPRP)

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Sample Computation (Daily Inch Rate)

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Evaluation and follow-up

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Media Characteristics

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Media Characteristics

The End

adman lecture 9

Economy & Finance