This document discusses geographic considerations in media planning and buying. It defines different geographic market philosophies and market definitions used, such as national, regional, designated market areas (DMAs), and retail trading areas. It also covers analyzing markets through metrics like category development index, brand development index, and comparing media cost efficiencies. Markets are prioritized based on size, sales, consumers, and whether the strategy is to support existing business or market development.

1. Geographic Considerations
CHAPTER 11
Media Planning & Buying in the 21st Century

2. Agenda
GEOGRAPHIC MARKETING PHILOSOPHIES
GEOGRAPHIC MARKET DEFINITIONS
MARKET ANALYSIS
NATIONAL VS. LOCAL MEDIA
Media Planning & Buying in the 21st Century

3. Is the U.S. one homogeneous market
or many markets?
How Local Markets Differ from Each Other
Category Sales
Brand Sales
Consumers
Trade Situation
Media Efficiencies
Size of Market
Growth Rate
Demographics
Lifestyle
Competition
Media Planning & Buying in the 21st Century

4. Geographic Marketing Philosophies
 Global


Desire to have the same brand identity everywhere
Same strategy is executed in every market
 Market by Market


Brand definition should reflect differences in markets
Different strategies are executed in every market
 Think Global, Act Local



A blending of philosophies
Have overall strategy
Make adjustments in strategy and execution as market dictates
Media Planning & Buying in the 21st Century

5. Geographic Emphasis of Media Plans
 Geographic Coverage Area
- Before a media plan can be developed, the
geography of the plan must be defined in
accordance with the brand’s marketing situation,
budget realities, and media coverage patterns.
 May be any mix of any of the following:
-
-
National
Regional
Local markets (Designated Market Areas – DMAs)
MSAs/Metropolitan Areas
Counties
Zip codes

6. Geographic Market Definitions
National = Total U.S.
Regional – Based on Census or Sales
Designated Market Area (DMA) – 210 TV viewing areas
in US
Metro Survey Area (MSA) – Metro area
within DMA
Retail Trading Area - Area within MSA containing majority of
retailers’ customers
Media Planning & Buying in the 21st Century

7. Designated Market Area
 What is a DMA?
 A geographic area consisting of counties who do the majority of
their viewing to home market TV stations, e.g.,


Oakland County Michigan resides in the Detroit DMA
Maricopa County is in the Phoenix DMA

Every county in the US is assigned to a DMA (210 total DMAs)

DMAs typically contain 1-2 metropolitan areas

All viewing to home market stations by people within the DMA
and in adjacent DMAs counts as part of station’s total audience

Consumer products companies usually tabulate their business
data by DMA
Media Planning & Buying in the 21st Century

8. Total Survey Area (TSA)
 Total Survey Area (TSA)

Includes counties outside of a DMA which still watch some
television from the first DMA’s stations

For example, while Flint, MI is a DMA, some of their television
viewing is to Detroit television stations

TSAs are important to advertisers interested in total audience
within and outside the DMA
TSAs represent wasted audience to adverters only interested in
audience within the


The buyer has to decide whether to count audience only from
the DMA or total viewing from the TSA
Media Planning & Buying in the 21st Century

9. Phoenix DMA
DMA
METRO
TSA
Media Planning & Buying in the 21st Century

10. Retail Trading Area (RTA)
Typical Trading Area
50-80 %
Sales
15-20%
Sales
Balance
Media Planning & Buying in the 21st Century

11. Market Analysis
 Size of market
 Brand sales & share
 Competitor sales & shares
 Consumer profile of market
 Competitive activity
 Category Development Index
 Brand Development index
 Media Efficiency
 Distribution
 Trade relationships
Media Planning & Buying in the 21st Century

12. Setting Geographic Priorities
What’s the basic marketing strategy?
“Fish where the
fish are”
“Fish where the
fish aren’t”
(Support
current
business)
(Market
Development)

13. Brand Development Index
BDI =
% Brand Sales in Market
x 100
% Total U.S. Population in Market
Media Planning & Buying in the 21st Century

14. Category Development Index
CDI =
% U.S. Product Category Sales in Market
% Total U.S. Population in Market
Media Planning & Buying in the 21st Century
x 100

15. CDI/BDI Calculation
Market % US HH
A
B
C
% Category CDI
5.0
1.0
.5
Media Planning & Buying in the 21st Century
10.0
1.0
.3
200
100
60
% Brand
2.5
1.5
.6
BDI
50
150
120

16. Comparison of Cost Efficiencies
CPP
Network Television
$22,500
$27,000
Spot Television
Network Radio
$9,000
Spot Radio
$22,000
Note: spot estimates based on covering 100% of U.S.
Media Planning & Buying in the 21st Century