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1
The Media Business
The word media comes from the Latin word
“middle.”
Media carry messages to or from a targeted
audience and can add meaning to these
messages.
2
Media Terminology
 Media Planning - A series of decisions involving the
delivery of messages to audiences.
 Media Objectives - Goals to be attained by the
media strategy and program.
 Media Strategy - Decisions on how the media
objectives can be attained.
 Media - The various categories of delivery systems,
including broadcast and print media.
 Broadcast Media - Either radio or television network
or local station broadcasts.
3
Media Terminology
 Print Media - Publications such as newspapers,
magazines, direct mail, outdoor, and the like.
 Media Vehicle - The specific message carrier, such
as the Washington Post or Tonight Show.
 Coverage - The potential audience that might
receive the message through the the vehicle.
 Reach - The actual number of individual audience
members reached at least once by the vehicle.
 Frequency - The number of times the receiver is
exposed to vehicle in a specific time period.
4
Differences Between Levels of Message
Involvement and Number of Responses
5
Media Classifications
Most mass media guarantee only the
opportunity for a large audience to be
exposed to a brand.
Communication vehicles are specific
publications, networks, channels, stations,
and programs that make up a medium.
6
Media Classification Levels
7
Media Intrusiveness
Media vary in their degree of intrusiveness.
Ways to reduce intrusiveness include:
 Chose media in which the target audience is
interested in the product.
 Ask customers what type of information they
would like to receive, in what way, and
when.
8
Relative Degrees of
Media Intrusiveness
9
Print Media
Print media include:
 Newspapers
 Magazines
 Directories
 Mail brochures
 Mail
 Packaging
 All other forms, which are produced by
printing and are relatively permanent
10
Newspapers Characteristics
Advantages
 High coverage
 Low cost
 Short lead time for
placing ads
 Ads can placed in
interest sections
 Timely (current ads)
 Reader controls
exposure
 Can be used for
coupons
Disadvantages
 Short life
 Clutter
 Low attention-
getting capabilities
 Poor reproduction
quality
 Selective reader
exposure
11
Magazines Characteristics
Advantages
 Segmentation
potential
 Quality
reproduction
 High information
content
 Longevity
 Multiple readers
Disadvantages
 Long lead time for
ad placement
 Visual only
 Lack of flexibility
12
Directories
A directory is both a reference and an
advertising medium.
The most widely known is the Yellow Pages.
Yellow Pages advertising is often the primary
or only form of advertising used by many
small, local retailers.
A weakness of the Yellow Pages is that they
are printed only once a year.
13
Broadcast Media
Broadcast media include radio and television.
Broadcast media differs from print in that
people often do other things while
listening or viewing, so messages are
fleeting.
Broadcast commercials are more intrusive
than print ads.
14
BMG
15
Radio’s Daily Reach by
Daypart for Adults 18+
16
Radio Characteristics
Advantages
 Local coverage
 Low cost
 High frequency
 Flexible
 Low production
costs
 Well-segmented
audiences
Disadvantages
 Audio only
 Clutter
 Low attention
getting
 Fleeting message
17
Television Characteristics
Advantages
 Mass coverage
 High reach
 Impact of sight,
sound, and motion
 High prestige
 Low cost per
exposure
 Attention getting
 Favorable mage
Disadvantages
 Low selectivity
 Short message life
 High absolute cost
 High production
costs
 Clutter
18
Outdoor Characteristics
Advantages
 Location specific
 High resolution
 Easily noticed
Disadvantages
 Short exposure
time requires short
ad
 Poor image
 Local restrictions
19
INTERACTIVE
 A VARIETY OF MEDIA THAT ALLOWS THE
CONSUMER TO INTERACT WITH THE SOURCE
OF THE MESSAGE, ACTIVELY RECEIVING
INFORMATION AND ALTERING IMAGES,
RESPONDING TO QUESTIONS, AND SO ON.
20
INTERACTIVE MEDIA
 AUDIOTEX
 AUTOMATED TELEPHONE INFORMATION SERVICES
 CD-ROM
 FAX ON DEMAND
 INTERACTIVE TV
 INTERNET
 KIOSKS
 AVAILABLE IN HOTELS, SHOPPING MALLS
 ONLINE SERVICES
 AMERICAN ONLINE, PRODIGY
 SCREEN TELEPHONY
 TELEPHONES EQUIPPED WITH KEYBOARD TO ENTER
AND ACCESS DATA
21
Internet / Interactive Media
Characteristics
Advantages
 User selects
product information
 User attention and
involvement
 Interactive
relationship
 Direct selling
potential
 Flexible message
platform
Disadvantages
 Limited creative
capabilities
 Web snarl
(crowded access)
 Technology
limitations
 Few valid
measurement
techniques
 Limited reach
22
Direct Mail Characteristics
Advantages
 High selectivity
 Reader controls
exposure
 High information
content
 Opportunities for
repeat exposures
Disadvantages
 High cost/contact
 Poor image (junk
mail)
 Clutter
23
Media Use Decision
— Print
Media Use Decision
— Broadcast
Media Use Decision
— Other Media
Creative Strategy Plan
Developing the Media Plan
Setting Media Objectives
Selecting Media Within Class
Selecting Broad Media Classes
Determining Media Strategy
Marketing Strategy Plan
Situation Analysis
24
MARKET ANALYSIS AND TARGET
MARKET IDENTIFICATION
 ADVERTISING TARGET
 SIMMONS MARKET RESEARCH BUREAU--AUDIENCE SIZE
AND COMPOSITION--100 PUBLICATIONS, >800
CONSUMER PRODUCTS AND SERVICES
 MEDAIMARK RESEARCH, INC--DEMOGRAPHIC & PRODUCT
USAGE, PROVIDES LIFESTYLE INFORMATION & MEDIA
USAGE CHARACTERISTICS OF THE POPULATION
 WHERE TO PROMOTE
 BUYING POWER INDEX--SALES & MARKETING MGT
MAGAZINE
 BRAND DEVELOPMENT INDEX
 CATEGORY DEVELOPMENT INDEX
25
ESTABLISHING MEDIA
OBJECTIVES
 GOALS FOR THE MEDIA PROGRAM
 LIMITED TO THOSE THAT CAN BE
ACCOMPLISHED THROUGH MEDIA
 EXAMPLES
 USE BROADCAST MEDIA TO PROVIDE
COVERAGE OF 80 % OF THE TARGET
MARKET OVER A SIX MONTH PERIOD
 REACH 60% OF THE TARGET AUDIENCE
AT LEAST THREE TIMES OVER THE SAME
SIX-MONTH PERIOD
26
MARKET ANALYSIS AND TARGET
MARKET IDENTIFICATION--
continued
 INTERNAL FACTORS--SIZE OF MEDIA
BUDGET, MGT & ADMIN CAPABILITIES,
ORGANIZATION OF THE AGENCY
 EXTERNAL FACTORS--ECONOMY,
RAISING COST OF MEDIA,
TECHNOLOGY
 SURVEY OF BUYING POWER INDEX--
POTENTIAL OF A METRO AREA
27
MARKET ANALYSIS AND TARGET
MARKET IDENTIFICATION--
continued
 BRAND DEVELOPMENT INDEX--
COMPARES % OF THE BRAND’S TOTAL
U.S. SALES IN A GIVEN MARKET AREA
WITH THE % OF TOTAL POPULATION
IN THE MARKET TO DETERMINE SALES
POTENTIAL
 CATEGORY DEVELOPMENT INDEX--
POTENTIAL FOR DEVELOPING THE
TOTAL PRODUCT CATEGORY
28
EVALUATION AND
FOLLOW-UP
 HOW WELL DID THESE STRATEGIES
ACHIEVE THE MEDIA OBJECTIVES?
 HOW WELL DID THIS MEDIA PLAN
CONTRIBUTE TO ATTAINING THE
OVERALL MARKETING AND
COMMUNICATIONS OBJECTIVES
29
Media Planning Difficulties
 Lack of information
 Inconsistent terms
 Serious time pressure
 Measurement problems
30
Media Planning Criteria
Considerations
 The media mix
 Target market coverage
 Geographic coverage
 Scheduling
 Reach versus frequency
 Creative aspects and mood
 Flexibility
 Budget considerations
31
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
32
BRAND DEVELOPMENT INDEX
 A BDI IS CALCULATED BY DIVIDING THE PERCENT OF SALES
A MARKET ACCOUNTS FOR, BY THE MARKET’S PERCENTAGE
OF POPULATION OF THE U.S. AN INDEX OF 100 WOULD
INDICATE A FLAT MARKET--SALES AND POPULATION ARE
EQUAL. AN INDEX OF LESS THAN 100 WOULD INDICATE A
POOR SALES MARKET--SALES ARE LESS THAN THE
POPULATION, AND AN INDEX OVER 100 INDICATES A
STRONG SALES MARKET
 % POPULATION % SALES BDI COMMENTS
 6.28 6.28 100 FLAT SAL MKT
 6.84 10.71 157 STRONG SAL MKT
 10.06 8.34 83 WEAK SAL MKT
33
Brand and Category Analysis
Percentage of product
category total sales in market
Percentage of total U.S.
population in market
CDI = X 100
Brand Development Index
34
Brand and Category Analysis
High market share
Good market
potential
High market share
Monitor for sales
decline
Low market share
Good market
potential
High
CDI
Low
CDI
Low market share
Poor market
potential
High BDI Low BDI
35
Brand and Category Analysis
The market usually represents
good sales potential for both
the product and the brand.
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 product category shows
high potential but the brand
isn’t doing well; the reason
should be determined.
High
CDI
Low
CDI
Both the product category and
the brand are doing poorly;
not likely to be a good place
to advertise.
High BDI Low BDI
36
Target Audience Coverage
Population excluding target market
Target market
Media coverage
Media overexposure
Coverage
Exceeding
Market
Partial
Market
Coverage
Full
Market
Coverage
Target
Market
Proportion
37
Three Scheduling Methods
Continuity
Pulsing
Flighting
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
38
Reach and Frequency
Reach of Two Program
Reach of One Program
Unduplicated Reach of Both
Duplicated Reach of Both
Total market audience reached Total market audience reached
Total reached with both shows Total reach less duplicate
39
Graph of Effective Reach
Exposures
Percentage
Reach
0 5 10 15
25%
20%
15%
10%
5%
0%
Ineffective
Reach
Effective
Reach
Ineffective
Reach
40
Marketing Factors Important to
Determining Frequency
 Brand history
 Brand share
 Brand loyalty
 Purchase cycles
 Usage cycle
 Competitive share of voice
 Target group
41
Message or Creative
Factors Important to
Determining Frequency
 Message complexity
 Message uniqueness
 New vs. continuing campaigns
 Image versus product sell
 Message variation
 Wearout
 Advertising units
42
Media Factors Important to
Determining Frequency
 Clutter
 Editorial environment
 Attentiveness
 Scheduling
 Number of media used
 Repeat Exposures
43
Determining Relative
Cost of Media
Cost of ad space
(absolute cost)
Circulation
CPM = X 1,000
Cost per thousand (CPM)
44
Determining Relative
Cost of Media
CPRP =
Cost of commercial time
Program rating
Cost per rating point (CPRP)
45
COST OF MEDIA
MAGAZINE
 PER-PAGE COST $156,000
 CIRCULATION 4.0MM
 CALCULATION OF CPM 156,000 X 1,000
4,000,000
 CPM $39.00
 BROADCAST
 COST PER-PER SPOT AD $3,500
 RATING 11
 REACH (HOUSEHOLDS) 109,000
 CALCULATION $3,500/11
 CPRP $318.18
46
COST OF MEDIA--
CONTINUED
 NEWSPAPER
 COST PER PAGE $32,205
 COST PER INCH $268.60
 CIRCULATION 499,000
 CALCULATION
 CPM PAGE COST X 1,000
CIRCULATION
 CPM $32,205 X 1,000
499,000
$64.54
47
CHARACTERISTICS OF MEDIA
 MATCHING OF MEDIA TO MARKETS
 EACH MEDIA HAS ITS OWN
CHARACTERISTICS THAT MAKES IT
BETTER OR WORST FOR ATTAINING
SPECIFIC OBJECTIVES

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11-Media Characteristics.ppt

  • 1. 1 The Media Business The word media comes from the Latin word “middle.” Media carry messages to or from a targeted audience and can add meaning to these messages.
  • 2. 2 Media Terminology  Media Planning - A series of decisions involving the delivery of messages to audiences.  Media Objectives - Goals to be attained by the media strategy and program.  Media Strategy - Decisions on how the media objectives can be attained.  Media - The various categories of delivery systems, including broadcast and print media.  Broadcast Media - Either radio or television network or local station broadcasts.
  • 3. 3 Media Terminology  Print Media - Publications such as newspapers, magazines, direct mail, outdoor, and the like.  Media Vehicle - The specific message carrier, such as the Washington Post or Tonight Show.  Coverage - The potential audience that might receive the message through the the vehicle.  Reach - The actual number of individual audience members reached at least once by the vehicle.  Frequency - The number of times the receiver is exposed to vehicle in a specific time period.
  • 4. 4 Differences Between Levels of Message Involvement and Number of Responses
  • 5. 5 Media Classifications Most mass media guarantee only the opportunity for a large audience to be exposed to a brand. Communication vehicles are specific publications, networks, channels, stations, and programs that make up a medium.
  • 7. 7 Media Intrusiveness Media vary in their degree of intrusiveness. Ways to reduce intrusiveness include:  Chose media in which the target audience is interested in the product.  Ask customers what type of information they would like to receive, in what way, and when.
  • 9. 9 Print Media Print media include:  Newspapers  Magazines  Directories  Mail brochures  Mail  Packaging  All other forms, which are produced by printing and are relatively permanent
  • 10. 10 Newspapers Characteristics Advantages  High coverage  Low cost  Short lead time for placing ads  Ads can placed in interest sections  Timely (current ads)  Reader controls exposure  Can be used for coupons Disadvantages  Short life  Clutter  Low attention- getting capabilities  Poor reproduction quality  Selective reader exposure
  • 11. 11 Magazines Characteristics Advantages  Segmentation potential  Quality reproduction  High information content  Longevity  Multiple readers Disadvantages  Long lead time for ad placement  Visual only  Lack of flexibility
  • 12. 12 Directories A directory is both a reference and an advertising medium. The most widely known is the Yellow Pages. Yellow Pages advertising is often the primary or only form of advertising used by many small, local retailers. A weakness of the Yellow Pages is that they are printed only once a year.
  • 13. 13 Broadcast Media Broadcast media include radio and television. Broadcast media differs from print in that people often do other things while listening or viewing, so messages are fleeting. Broadcast commercials are more intrusive than print ads.
  • 15. 15 Radio’s Daily Reach by Daypart for Adults 18+
  • 16. 16 Radio Characteristics Advantages  Local coverage  Low cost  High frequency  Flexible  Low production costs  Well-segmented audiences Disadvantages  Audio only  Clutter  Low attention getting  Fleeting message
  • 17. 17 Television Characteristics Advantages  Mass coverage  High reach  Impact of sight, sound, and motion  High prestige  Low cost per exposure  Attention getting  Favorable mage Disadvantages  Low selectivity  Short message life  High absolute cost  High production costs  Clutter
  • 18. 18 Outdoor Characteristics Advantages  Location specific  High resolution  Easily noticed Disadvantages  Short exposure time requires short ad  Poor image  Local restrictions
  • 19. 19 INTERACTIVE  A VARIETY OF MEDIA THAT ALLOWS THE CONSUMER TO INTERACT WITH THE SOURCE OF THE MESSAGE, ACTIVELY RECEIVING INFORMATION AND ALTERING IMAGES, RESPONDING TO QUESTIONS, AND SO ON.
  • 20. 20 INTERACTIVE MEDIA  AUDIOTEX  AUTOMATED TELEPHONE INFORMATION SERVICES  CD-ROM  FAX ON DEMAND  INTERACTIVE TV  INTERNET  KIOSKS  AVAILABLE IN HOTELS, SHOPPING MALLS  ONLINE SERVICES  AMERICAN ONLINE, PRODIGY  SCREEN TELEPHONY  TELEPHONES EQUIPPED WITH KEYBOARD TO ENTER AND ACCESS DATA
  • 21. 21 Internet / Interactive Media Characteristics Advantages  User selects product information  User attention and involvement  Interactive relationship  Direct selling potential  Flexible message platform Disadvantages  Limited creative capabilities  Web snarl (crowded access)  Technology limitations  Few valid measurement techniques  Limited reach
  • 22. 22 Direct Mail Characteristics Advantages  High selectivity  Reader controls exposure  High information content  Opportunities for repeat exposures Disadvantages  High cost/contact  Poor image (junk mail)  Clutter
  • 23. 23 Media Use Decision — Print Media Use Decision — Broadcast Media Use Decision — Other Media Creative Strategy Plan Developing the Media Plan Setting Media Objectives Selecting Media Within Class Selecting Broad Media Classes Determining Media Strategy Marketing Strategy Plan Situation Analysis
  • 24. 24 MARKET ANALYSIS AND TARGET MARKET IDENTIFICATION  ADVERTISING TARGET  SIMMONS MARKET RESEARCH BUREAU--AUDIENCE SIZE AND COMPOSITION--100 PUBLICATIONS, >800 CONSUMER PRODUCTS AND SERVICES  MEDAIMARK RESEARCH, INC--DEMOGRAPHIC & PRODUCT USAGE, PROVIDES LIFESTYLE INFORMATION & MEDIA USAGE CHARACTERISTICS OF THE POPULATION  WHERE TO PROMOTE  BUYING POWER INDEX--SALES & MARKETING MGT MAGAZINE  BRAND DEVELOPMENT INDEX  CATEGORY DEVELOPMENT INDEX
  • 25. 25 ESTABLISHING MEDIA OBJECTIVES  GOALS FOR THE MEDIA PROGRAM  LIMITED TO THOSE THAT CAN BE ACCOMPLISHED THROUGH MEDIA  EXAMPLES  USE BROADCAST MEDIA TO PROVIDE COVERAGE OF 80 % OF THE TARGET MARKET OVER A SIX MONTH PERIOD  REACH 60% OF THE TARGET AUDIENCE AT LEAST THREE TIMES OVER THE SAME SIX-MONTH PERIOD
  • 26. 26 MARKET ANALYSIS AND TARGET MARKET IDENTIFICATION-- continued  INTERNAL FACTORS--SIZE OF MEDIA BUDGET, MGT & ADMIN CAPABILITIES, ORGANIZATION OF THE AGENCY  EXTERNAL FACTORS--ECONOMY, RAISING COST OF MEDIA, TECHNOLOGY  SURVEY OF BUYING POWER INDEX-- POTENTIAL OF A METRO AREA
  • 27. 27 MARKET ANALYSIS AND TARGET MARKET IDENTIFICATION-- continued  BRAND DEVELOPMENT INDEX-- COMPARES % OF THE BRAND’S TOTAL U.S. SALES IN A GIVEN MARKET AREA WITH THE % OF TOTAL POPULATION IN THE MARKET TO DETERMINE SALES POTENTIAL  CATEGORY DEVELOPMENT INDEX-- POTENTIAL FOR DEVELOPING THE TOTAL PRODUCT CATEGORY
  • 28. 28 EVALUATION AND FOLLOW-UP  HOW WELL DID THESE STRATEGIES ACHIEVE THE MEDIA OBJECTIVES?  HOW WELL DID THIS MEDIA PLAN CONTRIBUTE TO ATTAINING THE OVERALL MARKETING AND COMMUNICATIONS OBJECTIVES
  • 29. 29 Media Planning Difficulties  Lack of information  Inconsistent terms  Serious time pressure  Measurement problems
  • 30. 30 Media Planning Criteria Considerations  The media mix  Target market coverage  Geographic coverage  Scheduling  Reach versus frequency  Creative aspects and mood  Flexibility  Budget considerations
  • 31. 31 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
  • 32. 32 BRAND DEVELOPMENT INDEX  A BDI IS CALCULATED BY DIVIDING THE PERCENT OF SALES A MARKET ACCOUNTS FOR, BY THE MARKET’S PERCENTAGE OF POPULATION OF THE U.S. AN INDEX OF 100 WOULD INDICATE A FLAT MARKET--SALES AND POPULATION ARE EQUAL. AN INDEX OF LESS THAN 100 WOULD INDICATE A POOR SALES MARKET--SALES ARE LESS THAN THE POPULATION, AND AN INDEX OVER 100 INDICATES A STRONG SALES MARKET  % POPULATION % SALES BDI COMMENTS  6.28 6.28 100 FLAT SAL MKT  6.84 10.71 157 STRONG SAL MKT  10.06 8.34 83 WEAK SAL MKT
  • 33. 33 Brand and Category Analysis Percentage of product category total sales in market Percentage of total U.S. population in market CDI = X 100 Brand Development Index
  • 34. 34 Brand and Category Analysis High market share Good market potential High market share Monitor for sales decline Low market share Good market potential High CDI Low CDI Low market share Poor market potential High BDI Low BDI
  • 35. 35 Brand and Category Analysis The market usually represents good sales potential for both the product and the brand. 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 product category shows high potential but the brand isn’t doing well; the reason should be determined. High CDI Low CDI Both the product category and the brand are doing poorly; not likely to be a good place to advertise. High BDI Low BDI
  • 36. 36 Target Audience Coverage Population excluding target market Target market Media coverage Media overexposure Coverage Exceeding Market Partial Market Coverage Full Market Coverage Target Market Proportion
  • 37. 37 Three Scheduling Methods Continuity Pulsing Flighting Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
  • 38. 38 Reach and Frequency Reach of Two Program Reach of One Program Unduplicated Reach of Both Duplicated Reach of Both Total market audience reached Total market audience reached Total reached with both shows Total reach less duplicate
  • 39. 39 Graph of Effective Reach Exposures Percentage Reach 0 5 10 15 25% 20% 15% 10% 5% 0% Ineffective Reach Effective Reach Ineffective Reach
  • 40. 40 Marketing Factors Important to Determining Frequency  Brand history  Brand share  Brand loyalty  Purchase cycles  Usage cycle  Competitive share of voice  Target group
  • 41. 41 Message or Creative Factors Important to Determining Frequency  Message complexity  Message uniqueness  New vs. continuing campaigns  Image versus product sell  Message variation  Wearout  Advertising units
  • 42. 42 Media Factors Important to Determining Frequency  Clutter  Editorial environment  Attentiveness  Scheduling  Number of media used  Repeat Exposures
  • 43. 43 Determining Relative Cost of Media Cost of ad space (absolute cost) Circulation CPM = X 1,000 Cost per thousand (CPM)
  • 44. 44 Determining Relative Cost of Media CPRP = Cost of commercial time Program rating Cost per rating point (CPRP)
  • 45. 45 COST OF MEDIA MAGAZINE  PER-PAGE COST $156,000  CIRCULATION 4.0MM  CALCULATION OF CPM 156,000 X 1,000 4,000,000  CPM $39.00  BROADCAST  COST PER-PER SPOT AD $3,500  RATING 11  REACH (HOUSEHOLDS) 109,000  CALCULATION $3,500/11  CPRP $318.18
  • 46. 46 COST OF MEDIA-- CONTINUED  NEWSPAPER  COST PER PAGE $32,205  COST PER INCH $268.60  CIRCULATION 499,000  CALCULATION  CPM PAGE COST X 1,000 CIRCULATION  CPM $32,205 X 1,000 499,000 $64.54
  • 47. 47 CHARACTERISTICS OF MEDIA  MATCHING OF MEDIA TO MARKETS  EACH MEDIA HAS ITS OWN CHARACTERISTICS THAT MAKES IT BETTER OR WORST FOR ATTAINING SPECIFIC OBJECTIVES