Ch. 10 Media Planning and Strategy Basic Terms and Concepts Media Planning: the series of decisions involved in delivering the message to the target audience. Media Plan: the actual document detailing these decisions. Media Objectives: the objectives sought by the media plan. Media Strategies: the plans of action designed to attain the media objectives. Medium: the general category of media channels such as broadcast, print, etc. Media Vehicle: the specific carrier in a media category (TV, Radio, etc.) Reach: the number of potential audience member exposed at least once to a media vehicle in a given period of time (often in %). Coverage: the potential audience that might receive a message through a vehicle (often in %) Frequency: the number of times the receiver is exposed to the media vehicle in a given time period.

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 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 Percentage of total U.S. population in the market 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 represents the percentage of a vehicle’s audience reached at each effective frequency increment. Average frequency: the average number of times the target audience reached by a media schedule is exposed to the vehicle over a specified period. 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: the actual cost to place the ad in the medium Relative cost of media: the relationship b/t the price for advertising time or space and the size of the audience delivered. 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?