Chapter 10

Media Planning and StrategyMedia Planning and Strategy

10

McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.

Media Expenditures to Reach $1 Trillion

Traditional Media

Satellite radio stations

2

Broadcast networks (TV

and cable)100

TV stations3,510

Consumer magazines

5,340

Newspapers (daily and weekly)8,100

Radio stations13,898

Media Terminology

A series of decisions involving the delivery of messages to audiencesA series of decisions involving the delivery of messages to audiences

MediaPlanningMedia

Planning

Goals to be attained by the media strategy and programGoals to be attained by the media strategy and program

MediaObjectives

MediaObjectives

Decisions on how the media objectives can be attainedDecisions on how the media objectives can be attained

MediaStrategyMedia

Strategy

Various categories of delivery systems, including broadcast and print mediaVarious categories of delivery systems, including broadcast and print mediaMediaMedia

Either radio or television network or local station broadcastsEither radio or television network or local station broadcasts

BroadcastMedia

BroadcastMedia

Media Terminology

Publications, such as newspapers, magazines, direct mail, outdoor, etc.Publications, such as newspapers, magazines, direct mail, outdoor, etc.

PrintMediaPrintMedia

The specific carrier within a medium categoryThe specific carrier within a medium category

MediaVehicleMedia

Vehicle

Number of different audience members exposed at least once in a time periodNumber of different audience members exposed at least once in a time periodReachReach

The potential of audience that might receive the message through the vehicleThe potential of audience that might receive the message through the vehicleCoverageCoverage

Number of times the receiver is exposed to the media vehicle in a time periodNumber of times the receiver is exposed to the media vehicle in a time periodFrequencyFrequency

Developing the Media Plan

Selecting media within classSelecting media within class

Selecting broad media classesSelecting broad media classes

Determining media strategyDetermining media strategy

Media use decision— print

Media use decision— print

Media use decision— broadcast

Media use decision— broadcast

Media use decision— other media

Media use decision— other media

Setting media objectivesSetting media objectives

Marketing strategy planMarketing

strategy planSituation analysis

Situation analysis

Creative strategy plan

Creative strategy plan

Media Planning Difficulties

Measurement Problems

Measurement Problems

Lack of Information

Lack of Information

InconsistentTerms

InconsistentTerms

TimePressure

TimePressure

Problemsin MediaPlanning

Problemsin MediaPlanning

Developing a Media Plan

Evaluate performanceEvaluate performance

Analyze the marketAnalyze the market

Establish media objectivesEstablish media objectives

Develop media strategyDevelop media strategy

Implement media strategyImplement media strategy

Analyzing Market Potential

Percentage of users in a demographic segmentPercentage of population

in the same segment

Index = X 100

Index Number

Brand and Category Analysis

Percentage of brand to total U.S. sales in market

Percentage of total U.S. population in market

BDI = X 100

Brand Development Index

Brand and Category Analysis

Percentage of total product category sales in market

Percentage of total U.S. population in market

CDI = X 100

Category Development Index

Test Your Knowledge

In calculating both the brand development index (BDI) and the category development index (CDI), a media planner obtains the following results: Low BDI and High CDI. What do these results imply?

A) High market share; good market potential

B) Low market share; good market potential

C) High market share; monitor for sales decline

D) Low market share; poor market potential

Brand and Category Analysis

High market shareGood market potential

High market shareGood market potential

Low

CD

IH

igh

CD

I

High BDI

Low market share Good market potential

Low market share Good market potential

Low BDI

High market shareMonitor for sales decline

High market shareMonitor for sales decline

Low market sharePoor market potential

Low market sharePoor market potential

Brand and Category Analysis

The market usually represents good sales potential for both the product and the brand.

The market usually represents good sales potential for both the product and the brand.

Low

CD

IH

igh

CD

I

High BDI

The product category shows high potential but the brand isn’t doing well; the reason should be determined.

The product category shows high potential but the brand isn’t doing well; the reason should be determined.

Low BDI

The category isn’t selling well but the brand is; may be a good market in which to advertise but should be monitored for sales decline.

The category isn’t selling well but the brand is; may be a good market in which to advertise but should be monitored for sales decline.

Both the product category and the brand are doing poorly; not likely to be a good place to advertise.

Both the product category and the brand are doing poorly; not likely to be a good place to advertise.

Target Audience Coverage

TargetMarket

Proportion

FullMarket

Coverage

PartialMarket

Coverage

CoverageExceeding

Market

Population excluding target marketTarget marketMedia coverageMedia overexposure

Geographic Coverage

Three Scheduling Methods

Continuity

Pulsing

Flighting

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Reach and Frequency

A. Reach of One Program B. Reach of Two Programs

C. Duplicated Reach of Both D. Unduplicated Reach of Both

Graph of Effective Reach

Marketing Factors Determining Frequency

Target GroupTarget Group

Brand HistoryBrand History

Share of Voice

Share of Voice

Purchase Cycles

Purchase Cycles

Brand LoyaltyBrand

LoyaltyBrand ShareBrand Share

Usage Cycle

Usage Cycle

Marketing Factors

Marketing Factors

Message Factors Determining Frequency

Message ComplexityMessage Complexity

Message UniquenessMessage Uniqueness

New Vs. Continuing CampaignsNew Vs. Continuing Campaigns

Image Versus Product SellImage Versus Product Sell

Message VariationMessage Variation

WearoutWearout

Advertising UnitsAdvertising Units

Messageor Creative

Factors

Messageor Creative

Factors

Media Factors Determining Frequency

ClutterClutter

Number of Media UsedNumber of Media Used

Repeat ExposureRepeat

Exposure

Editorial Environment

Editorial Environment

SchedulingScheduling

AttentivenessAttentiveness

Media FactorsMedia

Factors

Flexibility in Media Planning Strategies

Market opportunities

Market opportunities Market threatsMarket threats

Availability of media

Availability of media

Changes in media or media

vehicle

Changes in media or media

vehicle

FlexibilityFlexibility

Test Your Knowledge

Why should an effective media strategy be flexible?

A) Due to the potential development of new advertising media

B) Due to an alteration of a competitor's media schedule

C) Due to the unavailability of the desired medium

D) Due to a drop in the ratings of a show previously on the media schedule

E) Due to all of the above

Determining Relative Cost of Print Media

Cost of ad space(absolute cost)Circulation

CPM = X 1,000

Cost per thousand (CPM)

Calculating CPM Based on Target Audience

Determining Relative Cost of Broadcast Media

CPRP =Cost of commercial time

Program rating

Cost per rating point (CPRP)

Evaluation and Follow-Up

Use again, or analyze flaws

How well did these strategies achieve the media objectives?

How well did the media plan contribute to attaining the overall marketing and

communications objectives?

Television Pros and Cons

Mass coverageMass coverage

High reachHigh reach

Sight, sound, motionSight, sound, motion

High prestigeHigh prestige

Low cost per exposureLow cost per exposure

Attention gettingAttention getting

Favorable imageFavorable image

AdvantagesAdvantages

Short message lifeShort message life

High production costHigh production cost

Low selectivityLow selectivity

High absolute costHigh absolute cost

ClutterClutter

DisadvantagesDisadvantages

Radio Pros and Cons

Local coverageLocal coverage

Low costLow cost

High frequencyHigh frequency

FlexibleFlexible

Low production costLow production cost

Well-segmented audienceWell-segmented audience

AdvantagesAdvantages

ClutterClutter

Fleeting messageFleeting message

Audio onlyAudio only

Low attention gettingLow attention getting

DisadvantagesDisadvantages

Magazine Pros and Cons

Segmentation potentialSegmentation potential

Quality reproductionQuality reproduction

High information contentHigh information content

LongevityLongevity

Multiple readersMultiple readers

AdvantagesAdvantages

Visual onlyVisual only

Long lead time for ad placement

Long lead time for ad placement

Lack of flexibilityLack of flexibility

DisadvantagesDisadvantages

Newspaper Pros and Cons

High coverageHigh coverage

Low costLow cost

Short lead time for placing ads

Short lead time for placing ads

Ads can be placed in interest sections

Ads can be placed in interest sections

Timely (current ads)Timely (current ads)

Reader controls exposureReader controls exposure

Can be used for couponsCan be used for coupons

AdvantagesAdvantages

ClutterClutter

Poor reproduction qualityPoor reproduction quality

Short lifeShort life

Low attention gettingLow attention getting

Selective reader exposureSelective reader exposure

DisadvantagesDisadvantages

Outdoor Pros and Cons

Location specificLocation specific

High repetitionHigh repetition

Easily noticedEasily noticed

AdvantagesAdvantages

Short adsShort ads

Local restrictionsLocal restrictions

Short exposure timeShort exposure time

Poor imagePoor image

DisadvantagesDisadvantages

Direct Mail Pros and Cons

High selectivityHigh selectivity

Reader controls exposureReader controls exposure

High information contentHigh information content

Repeat exposure opportunities

Repeat exposure opportunities

AdvantagesAdvantages

Poor image (junk mail)Poor image (junk mail)

High cost per contactHigh cost per contact

ClutterClutter

DisadvantagesDisadvantages

Internet Pros and Cons

User selects product information

User selects product information

User attention and involvement

User attention and involvement

Interactive relationshipInteractive relationship

Direct selling potentialDirect selling potential

Flexible message platformFlexible message platform

AdvantagesAdvantages

WebsnarlWebsnarl

Few measurement techniques

Few measurement techniques

Limited creative capability

Limited creative capability

Technology limitationsTechnology limitations

Limited reachLimited reach

DisadvantagesDisadvantages