Ch. 10 Media Planning and Strategy Basic Terms and Concepts Media Planning Media Plan Media Objectives Media Strategies Medium Media Vehicle Reach Coverage Frequency

Developing the Media Plan Market Analysis Establishment of media objectives Media Strategy development and implementation Evaluation and follow-up

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 Questions: 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 Questions: 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, partially) 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 Circulation 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 objectives? 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).

Radio 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