The Era of Choice Understanding Societal Changes

Course Information Class notes thru midterm are available at Purchase and install media flight plan program as soon as possible - Order Mac and PC If you have a laptop that you are willing to bring to class, please sign the sheet

Lots of Questions Who am I trying to reach? How many can I afford to reach? How often do people need to encounter my message? In which vehicles should I pursue message space? When should I communicate (day, week, month, year)? What markets and regions should receive extra emphasis and which ones can be ignored? How can I take advantage of emerging media?

Lots of Challenges Expanding product categories –Multiple brands competing in any category Proliferation of media categories –Increasing pool of vehicles in any category Heightened audience control –Technological developments and advances

Increasingly Complex Has become an executive function –More research for understanding media audiences and content –More strategic guidance of overall communication architecture –Highly integrated into all elements of the communication plan

Expanding Options ‘50s and ‘60s

Today

The Era of Choice Dominant trend affecting strategic communicators: “Choice” Three forces drive this trend –Changes in Demographics and Lifestyles –Technological Development –Economic Climate

Demographic Changes Changes in Household Composition More Women in the Workforce Aging of America Growth of Ethnic Populations Polarization into Rich and Poor

Lifestyle Changes Americans are… –Busier –Less Social –Less Participatory –More Media-centric –More Technological –More Consumptive

The Take Away Americans are… –Older –More Diverse Ethnically In Their Family Structure –Richer and Poorer –Busier –Tuned In –Dropped Out –Acquisitive

Questions for Media Planning How do you contend with the clutter of the marketplace? How do you speak to such a diverse, busy, disengaged audience? Is there some communication potential in media fragmentation?

Technology Second Driving Force of Change Brings more Choice into Media World –Control with Remote Controls –Viewing Selection w/ VCR’s and Tivo –Programming with Digital Cable and DBS –Multi-media with DVD and CD-ROMs

The Example of Television More time shifting with video recording using VCRs and digital technologies More personalized viewing with movie rentals and video-on-demand More channel changing with remote controls and multi-channel cable

Internet Takes fragmentation to a new level –Anyone can be a media producer – , Search, Shop, Chat, Plan, Invest… Great potential for customizing, personalizing, tracking, generating buzz, viral marketing –Demands technical and strategic competencies

Network Development Greater Signal Compression Fiber Optics Broadband “Digital Lifestyle” Innovations - MP3 players, Digital Television (HDTV), Interactive Television, etc.

Peril and Promise What are the threats of this new media environment for strategic planners? What opportunities exist within this expanded and fragmented environment? How might technology of the future create new opportunities and threats?

Economics Third Driving Force of Choice –Fueled by GNP Growth in 80s - 90s Lots on Investment Capital Rising Stock Market Consumers Willing to Spend –Increasing Trend Toward Mergers

Recent Downturn Current Economy Changes Picture –Some contraction in innovation and consumption Companies focused on saving, not spending

Media Consolidation More Vertically Integrated Companies –AOL - Time-Warner –Sony - Columbia More Cross Media Deals –Internet, Publishing, Broadcasting, Music –How can these functions as opportunities?

Summary America has demassified Consumers have more media choices and more control over selection New tech will provide even more control Economic climate will determine rate of continued development and opportunity

And so… Era of Choice Creates Unique Challenges and Opportunities for Media Planners –Difficult to find your audience –Once you find them, hard to keep them –Difficult to foresee coming changes Diminished Effectiveness –Hard to Get Noticed –Hard to Get Consumers to Respond We Need New Ways to Generate Response

Case Study Introduce a new soft drink - Crunk!!! – –Highly cluttered product and info. environment –$25 Million - very small in category –Target: Urban and suburban youth into hip-hop –Discuss media options only Traditional Media Options Non-traditional Media Options Specialized Media Options –How will you gain attention and build awareness