Improvement of UR Umuc Healthy Fitness Centre .docx

Improvement of UR Umuc Healthy Fitness Centre
Business process involves the putting together of different
processes in order to provide a better service or product for
customers. The business process model of Fitness Center is
what it uses to define the ways it would operate in achieving its
planned process. The business process needed for UR UMUC
Healthy fitness center is to make sure it can operate efficiently.
My analysis for the FC is to put together different activities like
the UR UMUC Healthy fitness center’s membership registration
and billing method as these would add value to the company and
improve process.
The Business process needed to be improved for the FC is a
modern registration of members with modern payment method.
The flowchart would include new members being registered in
the database system. They are given member numbers, screened
for qualification, if they qualify, then they are registered, if not,
they need a waiver to be registered. Then, with the payment
method, customers are given the chance to either pay online or
in person making either a credit card payment or cash payment.
After, all these steps are followed, they are then registered
successfully.
“AS IS” PROCESS
“TO BE” PROCESS
Technology plays an important role in every organization’s
success. The technology I deem appropriate for UR UMUC
Healthy fitness center includes innovation through network,
Web security, and data technology needed to change the way the

fitness center operates. Through the network system, LAN can
be used to help in accessing the Internet by both the customers
and the managers. The Web security would be used in making
the data collected from the customers safe, this would block
data thieves from being able to get into customers’ information
and protect their privacy. The Data technology would help in
collecting and making use of the useful information needed to
improve the center. The Technology
Solution
for UR UMUC Healthy fitness center can take any form based
on the need of the center. The technology that I would use for
the center is the ERP from a company called SYSPRO. The
company specializes in a system that can be utilized to
customize for the use of enrollment of new customers/members,
registration of members, and payment system of the members.
The technological components needed to bring changes to the
center would include: Hardwares-Computers (Either desktops
or laptops), printers, scanners, copiers, fax machines, LAN
cables, wireless router, surge protectors, credit card system,
keyboard, mouse, VPN, monitor, server, cash registers, I.D card
scanners, wireless network card, DSL, and others. The
Software would include antispyware/antivirus, point of sale,
firewall, server, business/office, credit card, operating system,
and other software.
With all the components available, UR UMUC Healthy fitness

center would be able to bring the needed change and innovation
to the business place. A website for the center would mean
more customers getting to know about the site, messages being
sent and received from and to the customers for a better
communication and business awareness. A better management
of the database system would then be available to register new
members, process them and gather useful information to cater
for the need of the customers. Customers can also relax, check
their e-mails after working out, or browse the Internet through
the available Internet service. All these would add value to the
fitness center rather being known for just working out and with
this, the company would be able to compete among other rivals
in the same line of business.
I made changes to the business process to be improved in order
to makes sure that the Fitness Center improve the old way of
processing new customers and accepting payment for the benefit
of the customers. The business process selected for the Fitness
center, automated registration or members with better payment
method would make registration of new members easier, faster,
and more effective as members would be processed quickly with
ease.

References
Baltzan, P. (2012). Business driven information systems. New
York: McGraw-Hill Irwin.
Porter, Michael. Competitive Strategies: techniques for
Analyzing Industries and Competitors.
Retrieved from
http://www.quickmba.com/strategy/generic.shtml
Manuel Laguna, Johan Marklund (2004). Business Process
Modeling, Simulation, and Design.
Pearson/Prentice Hall, 2004.
Part 1: Answer these questions:
How has the fragmentation of media audiences affected media

planning?
In what significant ways has the responsibility of media
planners changed during the last decade?
Briefly define reach, frequency, and continuity.
What is BDI? Discuss the applications of the brand
development index. How is it used?
Part 2 assignment
Consider a product that you commonly purchase from one of
the following categories: athletic shoes, sodas, ice cream,
music, and restaurant food. For one of these products, evaluate:
a. Who is the target audience? Define the target audience with
as much specificity as possible.
b. Based on their current advertising, what creative and
communication considerations are reflected in their media plan?
(For example, is there need for product demonstration? Are
there daypart and/or seasonal requirements?)
c. What traditional media would you select, based on finding
the target audience, leveraging the appropriate qualitative
factors of the media, and considering the appropriate
characteristics and functions of the media? Why?
d. What nontraditional media would you select and why?

e. How would you schedule the advertising, considering the
purchase cycle of the product?
Assignment questions for ch. 10 and 11
1. What are the trends in newspaper advertising over the last
10 years? Go to the Newspaper Association of America website
and explore their data. Which target market continues to be
strong readership for newspapers? Which categories of
advertising continue to use newspapers for their ads? Why does
it make sense for them to do so?
2. Two of the major concerns of the magazine industry are
costs and selectivity. Explain what these are.
3. Why would an advertiser want to use both television and
magazines?
4. What are some qualitative features of importance to
magazine advertisers?

Questions for ch. 8 and 9
1. Discuss major changes in network television advertising
during the last 20 years.
2. Define the following terms: rating, share of audience, people
ratings, TVQ ratings, clutter
3. Compare and contrast syndication and spot television buying.
4. Discuss the relationship between networks and their
affiliates.
5. Describe the up-front television buying for prime time.

6. What are the major advantages and disadvantages of radio for
most advertisers?
7. Where do most advertisers obtain radio audience
information?
Chapter 9
Using Radio
Chapter Objectives
After reading this chapter you will understand:
1. The role of radio as a selective medium
1. Radio’s strength as a secondary medium
1. Radio’s ability to reach audiences at a low cost
1. Attempts to overcome radio’s lack of a visual dimension
1. Different roles of AM and FM radio
1. The rating systems used in radio

Chapter Overview
With a host of formats and numerous stations, even in the
smallest towns, radio provides advertisers with options to reach
very narrowly defined niche prospects. Radio is also among the
most popular media with high levels of listenership throughout
the day. Radio offers the opportunity for advertisers to reach
some audiences, such as teenagers, working women, and light
television viewers that are sometimes hard to reach with other
media.
Lecture Outline
1. Introduction
A.The pros of using radio include:
1)Radio is a primary medium for targeting narrow audience
segments, many of whom are not heavy users of other media.
2)Radio is a mobile medium going with listeners into the
marketplace and giving advertisers proximity to the sale.
3)Radio, with its relatively low production costs and
immediacy, can react quickly to changing market conditions.
4)Radio has a personal relationship with its audience unmatched
by other media. This affinity with listeners carries over to the

credibility it offers many of the products advertised on radio.
5)Radio, with its low cost and targeted formats, is an excellent
supplemental medium for secondary building blocks to increase
reach and frequency to specific target markets.
B.The cons of using radio include:
1)Without a visual component, radio often lacks the impact of
other media. Also, many listeners use radio as “background”
rather than paying full attention.
2)The small audiences of most radio stations require numerous
buys to achieve acceptable reach and frequency.
3)Adequate audience research is not always available,
especially among many small market stations.
C.From 1926 to the mid-1950s radio was the most prestigious of
the national media. Several factors, however, led to a decline in
popularity with advertisers.
1)After the advent of coast-to-coast television broadcasts and
the advent of instant hits such as I Love Lucy and The $64,000
Question in the early 1950s, radio’s popularity as a national
medium quickly declined.
D.Despite it minor position on the national scene, its appeal as
a “local” medium grew, generating impressive reach and
producing over $18 billion in revenues.
1)Radio demonstrates impressive reach.
2)94 percent of adults and 93 percent of teenagers are reached

by radio.
3)Radio’s targeted program formats create intimate, one-to-one
relationships with prospects.
4)Radio offers creative effects at lower production costs than
any other media.
*****NOTES: Use Exhibit 9.1 Here*****
2. The Contemporary Radio Industry
A.Radio is having to adapt to a new competitive environment
and different economic structure.
1)Only a few years ago the FCC limited the ownership of FM
and AM stations.
2)The rules changed in 1996 with the Telecommunications Act
of 1996, allowing corporations or individuals to control as much
as 35 percent of the national market.
3)The radio industry changed from one of numerous small
groups to one of a few huge conglomerates.
1. Some conglomerates have as many as 1,200 stations.
1. Some radio stations are owned by large media companies,
which also own television stations and newspapers.
4)Radio more efficiently reaches niche markets.
B.Radio and new technology.
1)Some observers think that the radio platform of the next

decade will be as an Internet business, with computers and
satellites rather than the radio dial.
1. Web sites have become the new business model for radio, and
Internet radio listening is beginning to grow.
1. HD Radio and satellite radio also pose challenges for
traditional broadcast radio.
4)Though predicting the future for radio will be difficult, trends
include:
a. The size of the audience listening to radio stations over the
Internet is growing rapidly; 40 percent in June 2005 said they
had listened. More listeners to Internet radio are becoming
habitual listeners.
1.Over 20 percent of Americans age 12 and older said they
listened to radio stations online in the past month.
2.About 6 percent said they listened to radio stations over the
Internet in the past week.
0. Young audiences are more likely to prefer to listen to the
radio via the Internet.
3. Features and Advantages of Radio
A.Radio is an ideal medium for the segmented marketing of the
twenty-first century.

1)In many respects, radio was the forerunner of localized
marketing.
2)Radio can use words, voice, music, and effects to establish a
one-to-one connection with prospects that uniquely grab their
attention.
3)Radio uses the most powerful form of communication—the
human voice.
4)Radio can generate an emotional response.
5)Production costs are a fraction of that of other broadcast
media.
B.According to the Radio Marketing Bureau, radio has the
following unique advantages:
1. Radio targets. Its great strength is its advertising ability to
reach selective audiences.
(
)
2)Radio reaches a majority of the population several hours per
day.
*****NOTES: Use Exhibits 9.4 Here*****
3)Radio advertising influences consumers closest to the time of

purchase. No other medium is present like radio just prior to
prospects making purchase decisions.
4)Radio reaches light users of other media. Radio fills in the
gaps in newspaper and magazine coverage of prime audiences.
5)Radio works well with other media. Radio increases
frequency and reach by reaching non-users or light users of
other media.
1. Much of radio listening takes place on an out-of-home basis.
(
)
7)Radio delivers consistent listening patterns. Unlike other
media, radio does not experience seasonal audience drop-off.
8)Radio delivers its messages at a very low CPM level.
9)Radio provides advertisers with both immediacy and
flexibility. Radio can react quickly to changing market
conditions.
C.The simplicity of radio can be a major advantage in making
tactical marketing decisions.
1)Even the smallest marketers can afford radio’s cost.
(
*****NOTES: Use Chapter Objective #3 Here*****

)
4. Limitations and Challenges of Radio
A.Four of the major problems facing advertisers who use radio
are:
1)The sheer number of stations creates a very fragmented
environment, especially for those advertisers needing to reach a
general audience.
2)Clutter.
1. The medium’s lack of a visual element.
4) Increased use of MP3 players and digital radio.
B.Audience fragmentation.
1)The great strength of reaching a narrowly defined audience
can also be a weakness when considered as over-fragmentation.
a.It is often difficult to reach a brand’s core prospects.
b.For those products with broad appeal, audience fragmentation
has made it difficult to gain effective reach and frequency
without buying several radio stations or networks.
c.Radio remains about the most effective means for advertisers
to target their market.
d.Reach is facilitated by the great number of radio stations,
numbering 10,600 in 2005.

C.Clutter.
1)Clutter is a major concern of advertisers.
2)The great number of commercials makes it less likely that
listeners will recall any particular advertising message.
3)The number of radio commercials is significantly greater than
television commercials.
a.With deregulation, the amount of time devoted to commercials
has steadily increased.
1. Some stations run over 30 percent advertising during prime
periods.
1. Increased clutter seems to impact young audiences the most.
D.Lack of a visual element.
1)A fundamental problem for advertisers when considering
radio is its lack of a visual component.
a.Lack of visualization works against brand recognition.
b.With self-service retailing and competitive brand promotions,
package identification is crucial.
2)Radio uses creative techniques to substitute the ear for the
eye.
a.Radio creates a mental picture for the listener with sound
effects, jingles, short and choppy copy, and vivid descriptions.
b.In recent years, radio has transferred television commercials

to its own medium, allowing listeners to form their own
advertising images by recall of previously viewed TV
commercials.
E. Increased use of MP3 players
1. 85 percent of 12- to 24-year-olds would choose their MP3
player over broadcast radio as their preferred music source.
5. Technical Aspects of Radio
A.The signal.
1)The signal in radio is comprised of the electrical impulses
that are broadcast.
2)A “good” signal means that a certain station can be heard
clearly within its given territory.
B.Frequency.
1)Frequency(used as a technical term) means the number of
radio waves that pass a given point in a given period of time.
2)The frequencies for AM are measured in kilohertz and FM
frequencies are measured in megahertz.
C.Amplitude.
0. Describes the height of the electromagnetic waves, whose
range resembles the difference between an ocean wave and a
ripple in a pond.
0. Speed is measured by the frequency with which a succession

of waves passes a given point per minute.
0. Two separate systems carry radio waves, based on amplitude
and frequency.
1. Amplitude modulation (AM). Variations in sound waves by
variation in its amplitude (constant frequency).
1. Frequency modulation (FM). Variations in sound wave by
variations in its frequency, with amplitude constant.
1. The AM signal is generally inferior, but can carry farther
than FM.
1. FM signal distances are limited, but tonal quality is very fine.
1. Reception quality is determined by atmospheric conditions
and station power.
*****NOTES: Use Exhibit 9.7a & b Here*****
6. Selling Radio Commercial Time
A.Radio advertising dollars are concentrated at the local level.
1)Local dollars are still greater than network or spot advertising
levels, in spite of the growth of the latter.
2)Buying radio time is difficult because of the number of
station options and formats.
1. There are over 850 stations in Texas alone.

1. There are dozens of distinct formats, including over 700
Latin/Hispanic format stations.
3)Recent consolidations of ownership will probably change
radio rate structure and the way time is bought.
a.The media buyer will have to deal with less stations and
independent rep companies to make a buy.
4)Competition is still fierce for the local advertiser’s dollar.
0. Radio has to compete with other selective media such as
newspapers, the Yellow Pages, and direct response.
0. Radio is competing with newer media such as the Internet and
both broadcast and cable television, which see local advertising
as major profit centers.
B.Network radio.
1)Network radio began its decline in 1948 with the introduction
of television.
1. Average ratings for previously popular comedy shows, soap
operas, and westerns dropped to less than 6 percent, with the
last major dramas Suspense and Have Gun Will Travel ending in
1962.
3)The next decade saw programming change from an
entertainment format to one of news and occasional short
features.
4)Although network radio is still a minor source of advertising
dollars, it has remained stable at $814 million of the $19.6
billion spent annually in radio.

5)Radio networks are basically program providers and a single
radio station may belong to several networks at the same time.
As a result, the networks depend on local ratings to garner
national advertising support.
6)Radio networks, like ABC, provide a number of targeted
networks and provide individual programs and news breaks that
are broadcast throughout the day.
7)Radio networks do offer some of the same advantages as
television networks.
1. As with television, an advertiser can arrange for one insertion
(commercial) for multiple stations and pay just one invoice.
1. Radio networks provide economical reach.
1. Radio networks target special audience segments who often
are light users of other media.
8)Radio has benefited from the use of satellite technology.
Consider the following when matched with satellite links:
a.Stations are guaranteed quality programming based on the
latest audience research for a particular format.
b.Radio networks bring celebrities to the medium that local
stations could not afford.
c.Even the smallest stations can obtain national advertising
dollars as part of a network.
d.The cost efficiencies of sharing programming with several
hundred other affiliates keep both personnel and programming
costs to a minimum.

C.Spot radio.
1)Like television, spot radio is local time bought by national
advertisers, amounting to $3.5 billion per year.
1. Used to build added reach and frequency to selected target
markets.
1. The opportunity exists for advertisers to act quickly in
response to competitive challenges and hit narrowly segmented
markets with little waste circulation
(
)
1. Spot radio serves several important functions.
1. Provides added weight in selected regions or individual
markets.
1. Popular with national companies with extensive retail outlets.
1. Provides flexibility and low cost to national advertisers.
1. Purchases are made through reps just like TV.
1. The best reps serve as marketing consultants for client
stations.
1. The effect of consolidation on selling relationships is yet
undetermined; reorganization has become the rule.

D.AM versus FM as an advertising medium.
1. FM dominates the overall listening audience and is the clear
leader in most formats.
1. AM stations tend to reach an older audience with talk, news,
and specialty formats such as gospel and nostalgia.
1. Growth of FM radio audiences and advertising revenues
during the last 30 years is one of the most important trends in
the industry.
1. FM programming for 30 years was confined to non-
commercial and classical stations with little advertising.
4)In 1975, FM independent stations lost almost $10 million
combined. Just 3 years later, these same stations had profits of
slightly less than $25 million. This economic turnaround in FM
radio was due to the following elements:
a.In 1972, the FCC ruled that owner of both AM and FM
stations in the same market had to program different formats.
This ruling opened the way for FM as a separate medium.
b.There is better sound quality with FM.
1. As the medium became more popular, the cost of FM sets
declined.
1. Radio audiences turned to FM for the most popular music
formats.
5) The emergence of talk radio is the only thing that may have

saved AM radio from economic disaster in the past 20 years.
1. HD Radio may make it possible for AM stations to see a
resurgence in listenership with its promise of high-quality
sound.
E.Types of programming.
1)Radio is a medium constantly searching for targeted
audiences.
2)The dominant format is music.
a.Radio audiences are very loyal to a station because of the type
of music, sports, or information broadcast.
3)The most popular is the “country” format with nearly 2,000
stations.
a.The popularity had its origin in rural and small market areas.
1. To advertisers, the quality of the audience is more important
than size.
5)It is extremely difficult for more than one or two stations with
the same format to be successful in the same market.
a.Second and third tier stations, therefore, are constantly
searching for niche formats.
6)Radio is considered a quasi-mass medium because there are
only a limited number of listeners at any given time; low ratings

of 1 to 3 are common.
a.Although television would consider a 1 or 2 percent increase
hardly worth noting, that percent for radio might make a major
difference.
7. Radio Rating Services
A.For rating measurement purposes, the lack of specific
programming on most radio stations makes respondent recall
much more difficult than for television.
1)Further complicating rating measurement is the fact that
listening diaries or telephone surveys are impractical for radio
because radio audiences frequently listen out-of-home.
B.The major source of radio ratings is Arbitron Inc., which
provides audience data through its Arbitron Radio division.
1)Arbitron measures radio audiences in over 280 local markets.
a.The listener diary method is used.
b.A chosen person must be over 12-years-old and be willing to
report listening habits for a 7-day period. Ratings last for a 12-
week period in a specific market.
c.Arbitron collects data from more than 2.6 million diaries each
year.
2)In 1998, Arbitron also began to collect the Webcast audience,
measuring broadcast station Web sites.
a.One in five U.S. consumers age 12 and above have tuned to an

Internet broadcast of an AM/FM station they listen to.
C.Because of the local nature of radio, station ratings are much
more critical to most advertisers than those for networks.
D.The primary source of radio national network ratings is done
by Radio’s All- Dimension Audience Research (RADAR), also a
service of Arbitron.
1)Collected through 7-day listening diaries kept by consumers.
2)Arbitron has developed a Portable People Meter (PPM).
a.The device is worn by survey participants throughout the day
and listening data is automatically sent to Arbitron for analysis.
E.The overriding problem with researching ratings is the cost.
a.The overall advertising investment does not support a research
expenditure comparable to television.
8. Buying Radio
A.Radio demonstrates a number of characteristics as an
advertising medium.
1)Advertising inventory is perishable, and when a spot goes
unsold, revenue is permanently lost.
2)Radio is normally used as a supplement to other media.
Therefore, coordination with the total advertising plan is crucial
for most radio sales.
3)Every radio buy is unique. Most radio is sold in packages

tailored to the advertiser.
4)A fixed rate card rarely exists. Pricing is largely based on
negotiation.
B.Elements to examine prior to an advertising execution
include:
1)Review product characteristics and benefits and decide
whether these benefits can be effectively communicated through
radio.
2)Who is the target market and can they be reached effectively
with radio and, if so, what formats, what dayparts?
3)Who is our competition? How are they using radio and other
media? Will radio provide a unique differentiation for our
product or will we be up against strong competing messages?
4)What is our basic advertising and marketing strategy and can
it be effectively carried out with radio?
C.The starting point in all advertising is the clear identification
of our audience, or target market.
1)This is followed closely by comparing cost alternatives for
radio outlets (CPM), in terms of how well a specific station will
meet our advertising objectives.
D.Because radio is often a secondary medium, we must consider
how well it complements other more primary media on our
advertising schedule.
1)And consider what proportion of the advertising budget
should be devoted to radio.

1. Once radio’s role is determined, the task begins of selecting
the best station(s) to reach our target market in an environment
best matching our products image.
F.The final, difficult step is to schedule spots.
1) Deciding the length of the spots, the selection of specific
dayparts, the combination of time periods, and the use of
sponsorships or events.
G.Because the planning process is difficult, radio sales
personnel are often used to guide efforts and to build
credibility. Obviously, there are pluses and minuses to this
approach.
1)The ultimate key to successful selling is identifying with the
problems of the clients.
H.In 2003 an electronic invoicing (and commercial verification)
system, called RadioExchange was introduced to improve the
speed and accuracy of spot radio buys.
9. Using Radio Ratings
A.Radio calculates ratings and shares in the same manner as TV
(see previous chapter). The audiences and programming of
radio, however, are unique and mandate that ratings be used in a
way much different from the way ratings are used in TV.
B.Primary differences in ratings usage in radio versus TV
include:

1)Radio advertisers are interested in broad formats rather than
programs or more narrowly defined TV scatter plans.
2)Radio ratings tend to measure audience accumulation over
relatively long periods of time or several dayparts instead of
individual programs.
3)The audiences for individual radio stations are much smaller
than TV, making radio ratings less reliable.
4)Because most radio stations reach only a small segment of the
market at a given time, there is a need for much higher levels of
advertising frequency in order to increase reach compared to
other media. Therefore, it is extremely difficult to track
accurate ratings information for national radio plans that
include a large number of stations.
C.Geographical patterns of radio ratings (two different
geographic boundaries) to report audiences.
1)Metro survey area (MSA) includes a city or cities whose
population is specified as that of the central city together with
the county or counties in which it is located.
2)Total survey area (TSA) is a geographic area that
encompasses the MSA and certain counties located outside the
MSA, but meets certain listening criteria.
D.Definitions of the radio audience.
1)Advertisers must understand the differences in the way
audience figures are considered between radio and television.
2)Radio audiences are measured in either Average Quarter

HourAQHaudiencesorthe cumulative or unduplicated audience
(Cume) listening to a station over several quarter hours or
dayparts.
E.Average quarter-hour estimates (AQHE).
1)Average quarter-hour persons. The AQH persons are the
estimated number of people listening to a station for at least 5
minutes during a 15-minute period.
2)Average quarter-hour rating. Here we calculate the AQH
persons as a percentage of the population being measured.
(AQH persons/population) x 100 = AQH rating
3)Average quarter-hour share. Determines what portion of the
average radio audience is listening to our station.
(AQH persons to a station/AQH persons to all stations) x 100 =
AQH Share
F.Cume estimates. Cume estimates are used to determine the
number or percentages of different people who listen to a
station during several quarter-hours or dayparts.
1)Cume persons. The number of different people who tuned to a
radio station for at least 5 minutes.
2)Cume rating. The percentage of different people listening to a
station during several quarter-hours or dayparts.

(Cume persons/population) x 100 = Cume rating
Example: a typical station’s audience.
Station XYYY – Friday 10 a.m.–3 p.m. Adults 12+
AQH persons = 20,000
Cume persons = 60,000
Metro survey area population = 500,000
Metro survey area AQH persons = 200,000
AQH rating = (20,000/500,000) x 100 = 4
Cume rating = (60,000/500,000) x 100 = 12
MSA AQH share = (20,000/200,000) x 100 = 10
Using the above example, the following can also be
calculated:
1. Gross impressions(GI) = AQH persons x number of
commercials
a. Six (6) commercials on XYYY would have
purchased 120,000
impressions (20,000 AQH persons x 6 spots)

2. Gross rating points (GRP) = AQH rating x number of
commercials
a. Six (6) commercials would deliver 24 GPRs (4
AQH rating x 6 spots)
NOTE:The media planner must be able to manipulate the
various radio data to
develop a plan most suited to a particular client. The same
budget and number of
spots used in different dayparts and across multiple stations
can deliver vastly
different levels of cumes, reach, frequency, and
demographics.
Chapter 8
Using Television
Chapter Objectives

1. The diversified nature of the television industry
2. The multiple roles of television as an advertising medium
3. The changing position of network television
4. Syndicated rating services and television research
methodologies
5. The various segments of television viewing
Chapter Overview
Television is truly a multidimensional medium with the
consolidation of ownerships, blending of technology, and the
co-producing of programming. As the future penetration of
digital television makes interactivity a reality, both advertisers
and programmers will have to adapt to significant changes in
the role of audiences with the medium. From a marketing
standpoint, the television medium now exhibits wide diversity
of advertising and programming opportunities made possible by
a number of related broadcast and cable entities. From local
cable programming to nationally broadcast events such as the
Super Bowl, each segment of the television industry has special
characteristics which are the subject of this chapter.

Lecture Outline
1. Introduction
A.An overview of the television industry sets forth advantages
and caveats for marketers:
1)Pros:
a.Television reaches 99 percent of all U.S. households and is
particularly popular with market segments that are primary
markets for advertisers.
b.Television’s combination of color, sound, and motion offers
creative flexibility for virtually any product message.
c.Despite recent audience declines, television remains
extremely efficient for large advertisers wishing to reach a mass
audience. Cable outlets and local broadcast stations add a local
or regional component to national television schedules.
d.Government-mandated moves to digital television will open
opportunities for advertising and programming by early 2009.
2)Cons:
a.The television message is perishable and easily forgotten
without expensive repetition.
b.The television audience is fragmented and skewed toward
lower-income consumers. Daily viewing time declines
significantly as income increases.
c.Shorter spots, some as short as 15 seconds, have contributed

to confusing commercial clutter.
d.With remote control use, channel surfing by viewers, and the
VCR and DVR (digital video recorder), the amount of time
spent viewing commercials by the average television user has
greatly reduced.
B.Television had humble beginnings.
1)First thought of by Philo Farnsworth in the 1920s in Idaho,
the idea was for an all-electronic system.
2)In 2008, the medium will mark its 60th anniversary.
a.The medium continues to exhibit dramatic change and
innovation.
b.By February 2009, the government has mandated that the
medium must introduce digital technology, bringing even more
innovations in both advertising and programming.
c.Television has long been the most influential medium, even
with those who do not watch it.
3)Quantitative dimension: approximately 99 percent of
households have at least one television set.
a.Americans spend twice as much time with TV than with radio
and 10 times more time than with newspapers; the average
household viewing is more than 8 hours daily.
4)Qualitative dimension: television is definitely the medium for
news, entertainment, and advertising.
a.According to a TVB (Television Bureau of Advertising)
survey, television is the primary source of news by over 70

percent of watchers, with newspapers second at 12 percent.
b.Television’s positive credibility carries over to television
advertising, rating highly in as an authoritative, exciting,
influential, and persuasive medium.
5)The complexion of television has changed over the years,
moving from a mass medium to a niche medium.
a.The trend began with the VCR and moved toward more
interactivity with the Internet becoming a major catalyst for
two-way television communication.
6)Television must continue to move toward more interactivity to
combat the appeal of the Internet and to be successful in the
future.
2. Television As An Advertising Medium
A.Introductory comments.
1. The purpose of television as an advertising medium is to
function as an audience delivery system.
a.The real product of television is not programming and
personalities, but in the manufacture, collection, and
distribution of viewers to advertisers.
1. The first television commercial was aired in the summer of
1941 following a Federal Communications Commission(FCC)
approval of 10 commercial television licenses.
3)Program options are growing at a high rate through not only

network affiliate stations, but also independent stations and
cable television outlets.
4)Cable networks growth.
a.By the 1980s, cable television had greatly expanded the
number of stations, which viewers could receive.
b.By the 1990s, cable networks had evolved and began to
compete with broadcast networks for advertising by the
development of original programming, making available 50-plus
channels.
c.Cable network programming began producing highly-
acclaimed programs, which competed for prime-time audiences.
d.The result was television fragmentation, with both advertisers
and audiences being drawn to this new programming.
5)Today’s television audience is fragmented over dozens of
channels and thousands of other new media choices, including
video games, CD-ROMs, and the Internet.
B.With digital capabilities, networks can deliver a number of
services to a household over the same conduit.
1)Programming options will be greater in number and
advertising can be tailored to individual buying preferences of
individuals on an interactive basis.
2)The traditional relationships between the television industry
and its advertisers will change.
3)Even with technological changes ahead, television remains a
primary medium for advertisers.

4)Creative flexibility is offered.
5)Television encompasses all of the senses, using sight, sound,
and motion, 24-hours a day.
1. It can reach all lifestyles.
7)A large number of advertising formats available.
C.Limitations of television include:
1)Cost—television is a very expensive medium. Cost is high in
network television advertising, local and cable advertising, and
production costs.
a.On a CPM basis, however, television is less costly than print
media, although fragmentation and increased options for
audiences will increase the CPM.
b.It is critical to not only consider the cost of television
production but also the cost associated with more creative
commercials.
2)Clutter—refers to any nonprogram material carried during or
between shows.
a.Commercials represent 80 percent of the clutter; the balance
being public service and program announcements.
b.The commercials time has grown (15 minutes per hour) and
the length is shorter, going from primarily 30-second spots in
1980 to 15 second or less by 2005; thereby increasing the
audience perception of advertising clutter.
c. To combat this problem and break through the commercial

clutter, some television networks have experimented with
reducing the number of commercials and advertisers, allowing
some advertisers to buy all the commercial time within a
particular program.
3. The Rating-Point System
A.The basic measure of television is the rating point.
1)The rating point (TV) is the percentage of a population (either
TV households or a specific group such as women 18–49 years
of age) in a market a television station reaches with a program.
2)Basic calculation:
a.Rating = program audience/total TV households.
b.The rating, expressed as a percentage of some population
(usually TV households), gives the advertiser a measure of
coverage based on the potential of the market.
1. When ratings are expressed as percentages of individuals, the
same formula is used, but the population is some target segment
rather than households.
1. A household rating of 12 for a program means that 12 percent
of all households in a particular area tuned their sets in to that
station.
1. Prime-time network programs usually achieve a rating of
between 6 and 16, with the average being less than 9.

B.Gross rating points (GRP), calculated by multiplying the
insertions by the ratings, are where the weight of a schedule is
measured in terms of the total ratings for all commercial spots
bought.
(
)
1)Advertisers also use GRPs as the basis for examining the
relationship between reach and frequency. Formulas are:
R x F = GRP or
GRP = F and GRP = R where R = reach and F = frequency
R F
2)To use these relationships, you must know (or estimate) the
unduplicated audience. When GRP is divided by reach (R) or
frequency (F); we can estimate the percentage of the target
market reached and the number of times each audience member
was reached, respectively.
*****NOTES: Use Exhibit 8.2 Here; See page 263 for
calculations *****
C.One of the principal merits of the GRP system is that it

provides a common base that proportionately accommodates
markets of all sizes. However, GRPs cannot be compared from
one market to another unless the markets are of identical size.
1)The advertiser has to decide how much weight (how many
GRPs) to place in their markets and for how long a period.
2)The answer to this may be whether the goal is reach or
frequency.
3)To estimate the cost of television advertising on several
shows, advertisers use the cost per rating point
(CPP)calculation.
The formula is:
CPP = cost of schedule or commercial
GRPs
*****NOTES: Use Exhibit 8.2 and 8.3 Here; See p. 264 for
calculations on CPP*****
D.Limitations:
1. Should not be used to compare markets of different size
(intermarket size comparison).
1. It does not tell us the number of prospects being reached by a
program.
1. GRP, by itself, cannot tell us how effectively a broadcast
schedule is performing.
1.

4. Share of Audience
1. Share of audience (or simply, share) is the percentage of
households using TV that are watching a particular program.
1)Share of audience is often used to determine the success of a
show. It is used by advertisers to determine how a show is doing
against its direct competition.
2)The rating calculates the percentage of total TV households
that are tuned to the program.
Formula: Rating = show viewers x 100 = rating
total TV households
3)The share calculates the percentage of households using
television (HUT) that are tuned to the program.
Adjusted formula: Share = show viewers x 100 =
share
HUT
(NOTE: HUT indicates the actual number of viewers.)
5. The Many Faces of Television
A.Each form of television (i.e., network television, cable,

syndicated programs, etc.) has its own advertising pricing
structure, programming, target audience, and rating
expectations.
1)The use of television as a personal medium is further
demonstrated by the number of multi-set households.
2)More diverse advertising opportunities will occur through
technological advances and as the wireless world advances.
3)The process of television media planning and buying is
extremely complex.
1. Network Television
A.Erosion of audiences for top-rated network shows continues.
1)This probably occurs because of the proliferation of television
options.
2)The Big Four (ABC, CBS, FOX, and NBC) have surprisingly
sustained share levels in spite of the proliferation of television
options.
B.Clearance and affiliate compensation.
1)Networks are comprised of local stations that contract to carry

network programming.
2)The four major networks have affiliates in most television
markets.
a.The newest networks are WB and UPN. They have affiliation
agreements with smaller stations in most markets.
3)Networks sell national advertising on the basis of station
clearance.
a.Network clearance is expressed as the percentage of the
network’s station lineup that has agreed to clear their schedules
for network programming.
4)Another primary factor in the relationship between networks
and affiliates is station compensation.
a.Compensation is a system whereby networks share advertising
revenues with their affiliates in return for using local station
time for their programs.
b.As the cost of network programming has increased and the
audience levels have fallen, the relationship between networks
and stations over compensation has become contentious.
1.Networks are demanding that local affiliates share in the cost
of this programming because the value of a station’s local
advertising spots is a result of the audience gained through
popular network programming.
2.Many local stations are now reviewing the value of the cost to
continue affiliation with national networks.
C.Network ownership.

1)Most networks are relatively small parts of larger
conglomerates.
2)They are usually not among the most profitable units of the
conglomerates.
3)Mergers and acquisitions raise troubling questions regarding
the free flow of news, restriction of competition, the impact on
rates, and internal conflict of interest among units.
4)Congress is examining ownership questions that might lead to
control that is excessive.
D.Network commercial pricing and declining audience shares.
1)Television is in the business of delivering prospects to
advertisers.
2)High costs are affecting the commercial pricing structure.
3)The average cost of a 30-second spot is currently $150,000 on
the four major networks.
a. Some spots cost over $550,000.
4)Network advertising revenues are growing significantly, but
media buyers complain that these increases are more a result of
more commercials (clutter) and unjustified rated increases that
have resulted in higher CPMs.
E.Block programming.
1)The television audience is fickle.
2)Research has consistently shown that shows do not stand on
their own, but are greatly influenced by:
a.Preceding shows called the lead-in.

b.The total daypart schedule, called a block.
c.Strong lead-ins are very important and are closely watched by
local stations.
d.Strong lead-ins responsible for escalating prices paid for by
off-network syndicated programs.
e.Network programmers are very aware of the ebb and flow of
audiences.
f. Pricing of new network shows is dependent on their
placement in the network schedule.
g.A new show sandwiched between older but successful shows
is in a hammock position.
h. Once a new show is on the air, it is judged by how it keeps
the audience from its lead-in and sustains the strength of the
block.
F.Network television advertising criteria. Three factors
considered to determine buying decisions:
1. Demos—demographics of television audiences becoming
more important than just the size of the audience.
2)CPMs—CPM levels; other advertisers driven by cost
considerations, evaluating cost efficiencies and CPM levels on
an equal basis with audience demographics.
3)Demand—demand for certain programs. Not only a function
of demographics and CPM, but also of qualitative factors
created by a special event, personalities, or publicized final
episodes.

4)Other factors:
a.Avails (available times)—broadcast media do not have the
advantage of flexible advertising inventory.
1.Networks must ration prime commercial spots among major
advertisers, combining top-rated avails with less popular ones.
2.Advertisers buy package plans, placing commercials across
the entire schedule.
b.Up-front buys. Each May, major advertisers begin the
negotiation process to buy commercials on the network prime-
time lineup for the coming fall season. Most prime-time spots
bought during this period. Has become complex with a number
of trends:
1.Greater demand for time. A very competitive marketplace.
2. Globalization. Positioning in the context of global media
plans of multinational clients.
3.Special events. Time demands brought by events like political
elections and the Olympics.
c.Scatter buys. The up-front season is followed by scatter plan
buys throughout the year, usually quarterly.
1. Designed for larger advertisers that want to take advantage
of changing marketing conditions or for smaller advertisers shut
out of up-front buys.

2. Sell at a higher CPM because there is less inventory and
smaller advertisers don’t have the leverage to negotiate better
CPM levels.
G.Negotiation.
1)This is the key to network buying.
2)Declines in network rating and share levels have created a
more contentious atmosphere.
3)Negotiators look for time across a number of television
options to reach a particular target market.
4)Small differences can make big differences in profits and
revenues with respect to rating points.
H.Make-goods.
1)Make-goods are concessions to advertisers for a failure to
achieve some guaranteed rating level.
a.Usually offered on the basis of total GRPs for an advertiser’s
television advertising schedule.
b.Usually take the form of future commercials making up for
rating shortfalls.
2)Make-goods are now a major contention between agencies and
the networks.
3)The make-goods put pressure on networks to deliver what
they have promised—the audience.
7. Spot Television

A.When national advertisers buy from local stations, the
practice is known as spot television or spot buys.
1)The idea is to spot coverage in certain markets rather than
blanket coverage.
2)The disadvantage is that it requires a great deal of planning
and paperwork because everything is bought on a one-to-one
basis.
a.It is more costly on a CPM basis than network buys.
3)Spot advertising is very competitive; more than 1,000 local
stations, plus several thousand cable outlets competing for
spots.
4)Spot market expenditures will be relatively flat as advertisers
move dollars toward other forms of local television (as in
cable).
5)Most spot advertising is placed through station
representatives orreps.
a.The rep is paid a commission by the station based on the time
sold; and may have 100 or more station clients.
b.Commission ranges from 5–10 percent depending upon station
size.
c.Unlike a real network, stations are linked only through being
clients of a particular rep; they are called nonwired networks.
d. Nonwired concept is simply a means of providing buying
efficiency and convenience for spot advertisers.

6)The rep’s role in the spot market will probably change
significantly as consolidation in the television industry
accelerates. Some station groups are large enough to support
their own national sales force.
7)The primary purposes of the spot buy are:
a.To allow network advertisers to provide additional GRPs in
those markets
with the greatest sales potential.
b.To provide businesses with less than national or uneven
distribution a means of avoiding waste circulation incurred by
network television.
c.To allow network advertisers control for uneven network
ratings on a market-by-market basis.
d.National advertisers can use spot advertising to support
retailers and provide localization for special marketing
circumstances.
*****NOTES: Use Exhibit 8.7 and 8.8 Here*****
B.Defining the television coverage area.
1)Television research uses three levels of signal coverage to
designate station coverage of a market area.
a.Total survey area is the largest area over which a station’s
coverage extends.
b.Designated market area (DMA) is a term used by A.C Nielsen

Company to identify those counties in which home market
stations receive a preponderance of viewers.
c.Metro rating area corresponds to the standard metropolitan
area served by a station.
C.Local television advertising.
1)Television advertising is increasingly purchased by local
advertisers.
2)Buying and scheduling spot and local TV time. Media buyers
must be familiar with the specifics of both of these aspects.
3)The TV day. Typical daypart designations are:
a.Morning: 7:00–9:00 a.m., Monday through Friday.
b.Daytime: 9:00 a.m. – 4:30 p.m., Monday through Friday.
c.Early fringe: 4:30–7:30 p.m., Monday through Friday.
d.Prime-time access: 7:30–8:00 p.m., Monday through Saturday.
e.Prime time: 8:00–11:00 p.m., Monday through Saturday and
7:00–11:00 p.m. Sunday.
f.Late News: 11:00–11:30 p.m., Monday through Friday.
g.Late fringe: 11:30–1:00 a.m., Monday through Friday.
4) Preemption rate. A considerable portion of spot TV
advertising time is sold on a preemptible (lower-rate) basis,
whereby the advertiser gives the station the right to sell a time
slot to another advertiser that may pay a better rate for it or that
has a package deal for which that particular spot is needed.
Forms include:
a.Nonpreemptible.

b.Immediately preemptible (IP).
c.Preemptible with two weeks notice.
5) Other forms:
a.Special features. News telecasts, weather reports, stock
market reports, etc., are often sold at a premium price.
b.Run of schedule (ROS). Advertisers can earn a lower rate by
permitting a station to run commercials at its convenience,
whenever time is available, rather than in a specified position.
c.Package rates. Different periods of the day are sold as a
package.
d.Product protection. Every advertiser wants competitive
products as far away as possible from their time slots. Most
stations will attempt at least a 5-10 minute break in between
competitive commercials. The only guarantee is that they will
not run them back-to-back.
e.Scheduling spot and local time.
1. Rotation of schedule refers to the placement of
commercials within a schedule to get the greatest possible
showing.
2. Horizontal rotation spreads spots throughout the week.
3. Vertical rotation spreads spots throughout the day or during
a program.

8. Television Syndication
A.Television syndication is the sale of television programming
on a station-by-station, market-by-market basis.
1)Major syndicated shows are sold on an advertiser supported or
barter basis.
2)Barter syndication refers to the practice of offering shows to
stations in return for a portion of the commercial time in the
show, rather than selling the show for cash.
3)A majority of the commercial time on syndicated shows is
packaged into national units and sold to advertisers.
4)Some spots are pre-sold on a national basis and the remaining
time sold to local and spot advertisers.
5)Syndication began when producers sold their canceled
network shows to stations for inexpensive “fillers” during late
afternoon or other time period’s not programmed by the
networks. During this time it was a minor portion of television
advertising.
6)Syndication accounts for close to $4 billion in advertising
revenues and major syndicated shows provide coverage
comparable to the broadcast networks.
7)The key to syndication’s success is quality programming. The
types include:
a.First-run—made for syndication programs.
1. Off-network syndication—reruns of former network shows.

1. Off-network shows reach more predictable demographic
segments than first-run products.
8)The three-tier pricing structure includes:
a.The top-10 blockbusters (most expensive, but proven).
b.Fall short of the top 10 but have sizable, loyal audiences
(medium pricing).
c.Lower tier of talk shows and less-popular reruns (low
pricing).
9)The demand for syndicated shows is driven by television’s
insatiable demand for all types of programming.
a.It is expected that broadcast syndication will surpass cable
networks in achieving significant levels of audience reach.
b.Some stations have moved to sign long-term contracts with
program producers to guarantee access to certain shows.
B.The audience for syndicated television.
1)Syndication has some of the same characteristics as cable.
2)Audiences are delivered; however, these audiences are spread
over several shows.
3)Syndicators sell programs on the basis of multiple airings
known as gross average audience ratings.
4)The future of syndication is very bright because local stations
find it very lucrative.
a.More commercials can be sold in syndicated shows; network
shows allow the station to sell 1 minute of commercial time and
syndicated shows allow 6–12 minutes of commercial time.

5)Top ten syndicated television advertisers include large
package-goods companies and pharmaceuticals.
(
)
6)Syndications will be a major advertising vehicle for the
foreseeable future.
C.Stripping.
1) Popular shows are “stripped” across a time period for an
entire week (i.e., Wheel of Fortune appears at the same time
Monday through Friday).
a.This practice is cost effective and builds a consistent audience
for selling commercials to potential advertisers.
9. Cable Television.
A.Cable systems began in Pennsylvania in the 1940s. The
systems (then known as CATV) brought TV into rural areas.
1)By the 1970s, cable systems had spread throughout the
country, moving from rural to major cities.

2)Cable systems are now a major medium with a household
penetration of more than 72 percent.
3)Cable advertising has shown double-digit increases in recent
years.
B.The contemporary cable television industry.
1)Audiences now have a wide choice of options from cable
operators.
2)The success of cable can be traced to two related elements:
a.Brand identification based on unique, selective networks and
programs that appeal to targeted demographic audience
segments.
b.The investment by cable networks in first-run programming.
3)Unlike networks that reach huge audiences, cable provides
advertisers with much smaller niche audiences who exhibit both
common demographic characteristics and interests.
4)Favorable brand recognition attracts large national advertisers
to this medium.
5)Cable networks have begun to add original programming in
order to attract both viewers and advertisers; billions of dollars
are being invested in original programming.
C.The future of cable advertising. Factors that make cable
television an attractive medium for advertisers:

1)Ability to target audiences.
2)Low cost.
3)A strong summer season.
4)Opportunity for local and spot cable advertising.
D.New advertising options in the future for cable will be:
1) Cable network magazines that offer advertisers the
opportunity to negotiate cross-media deals to potentially have
more impact on their target audiences.
2)Traditional advertising spots carried on regular analog cable.
3)Targeted advertising using digital technology.
4)Interactive advertising offered through software added to
cable boxes.
1. Shopping directly from the TV screen.
1. A new innovation is cut-ins on network programs for local
advertisers.
c.Interconnects occur where cable systems interconnect and link
themselves to distribute commercial advertising schedule
simultaneously.
E.New research methods have been developed to help measure
cable’s impact; Nielsen Media Research and Mediamark
Research Inc. offer a number of such services.
10. Videocassette Recorders and Digital Video Recorders

A.The videocassette recorder (VCR) has become as
commonplace as TVs.
1) 89 percent of American homes have a VCR and many have
more than one.
2). The VCR is almost a medium in itself.
3) Time-shift viewing allows one to see a show after it has
already been broadcast.
B.Recording shows has its dark side for television
advertisers.
1)Half the recorded shows are never watched.
2)Commercials can be skipped.
3) Time-shifting viewers tend to be demographically different
than original audience.
C.Some industry observers predict that the VCR will be
replaced by digital video recordings (DVR), which offers more
flexibility.
1. This technology does not require a tape and recording is
quicker and easier and stores many more hours of programming
than a VCR.
1. It also allows advertisers to customize commercials for
individual viewers.
1. Advertisers worry, however, this that technology also makes
skipping commercials very easy
1. There is also a concern that pay-per-view movies will
decrease commercial viewing.

5)DVRs did not take off as quickly as predicted, due to the high
cost of a unit. However, some satellite and cable television
companies began offering DVRs to lure subscribers.
a.In 2006, DVR penetration of US television households was
about 11 percent.
b.DVR households tend to be more upscale and more likely to
be heavy users of magazines, newspapers and the Internet.
6)DVRs provide technical convergence of computers,
interactive communications and multiple options for standard
television. Advertisers will have to better target their
commercials to audiences.
11. Brand Integration or Product Placement
0. Product placement is when a real brand or product is included
in a media vehicle in exchange for goods, services, and/or
money. The brand is integrated into the programming so it
appears realistic to the viewer and may lead to a positive
impression of the brand.
0. Advertisers have been more aggressive in seeking ways to
integrate their brands into television programs.
1. Brand integration can range from having the product appear
in one episode to sponsorships of entire shows.
1. New technology is making virtual product placements
possible.
1. Advertisers debate the value of integration and it is not seen

as something that will replace commercials.
12. Syndicated Rating Services
A.Introduction.
1)It is crucial for advertisers to have reliable data on which to
make buying decisions and to determine if they are paying a fair
price.
2)As television has become more fragmented, the measurement
of customer delivery has become more difficult and
complicated.
a.As audiences for each television outlet decrease, the
magnitude of error increases as a percentage of the total
viewing audience.
b.Because most advertising rates are determined by ratings,
concern is increasing.
B.The Nielsen ratings.
1)The primary supplier of syndicated television ratings is
Nielsen Media Research.
a.The company was founded in 1923 by A. C. Nielsen to collect
radio audience information.
b.The company began television rating services in 1950 with the

Nielsen Television Index (NTI).
c.Data is collected nationally from 9,000 households.
d.A People Meter is attached to the selected household’s
television set to monitor what is being watched, with buttons
assigned to each person living in the home.
(
)
2)A Nielsen Station Index (NSI) monitors local television
watching.
a.In the 56 largest markets, set meters measure household
television set usage on a continuous basis.
b.In 210 television markets, Nielsen provides diaries in which
individuals record their viewing habits. These are administered
during four sweep periods (sweeps) used to set the price of local
commercials for the coming quarter.
3)In recent years, the rating system has come under increasing
scrutiny. Areas of concern include:
a.Sweep weeks. In theory, an efficient, inexpensive means of
estimating quarterly local market ratings. In fact, local market
stations have sometimes used the period to artificially distort
their ratings by manipulating programming.
b.Diaries. Due to 50-plus-channel reception, the diary is an
antiquated tool. However, people meters are very expensive.
Use of people meters would largely eliminate the current

sweeps problem by providing ongoing measurements.
c.Exposure value. Estimating exposure levels for television
commercials versus set usage.
1.Who is watching?
2.Who is paying attention?
3.What level of attention being given to any particular show?
4)Nielsen and Arbitron announced a joint research effort to
solve audience measurement problems, using portable people
meters (PPM)
a.It eliminates the nuisance of diaries and does well at
measuring out-of-home audience measurements of radio.
b.Cost, however, is a major barrier.
5)It is clear that methods of measurement used in the past will
not work in the fragmented landscape of the twenty-first
century.
a.But how much stations, networks, and advertisers are willing
to pay will be a primary issue.
C.Qualitative Ratings.
1)Another type of qualitative audience measurement seeks to
offer insight into audience involvement or degree of preference
for particular television shows or personalities.
2)The best known qualitative service is Marketing Evaluation,
which compiles a number of popularity surveys called “Q”
reports.
1. The most familiar of these are TVQ and Performer Q.

1. Example: If a TV show reveals 50 percent of the population
familiar (FAM) and 30 percent rank it as their favorite (FAV),
then Q = 60.
Q = FAV or 30 = 60
FAM 50
c.Because of fragmentation TVQ scores have gone down.
Chapter7
Media Strategy
Chapter Objectives
1.The basic functions of the media planner
2. The role of the media in the total advertising
function
3.Characteristics of the major media categories
4.Relationships between media planning and target marketing

Chapter Overview
The media function, whether executed by an advertising agency,
an independent media-buying/planning firm, an unbundled
media shop, or a company’s in-house media department, is
increasingly complex. The demand for efficiency, effectiveness,
and creativity in the media-planning process has never been
greater. Two factors have created uncertainty for both
advertisers and media executives: 1) the steady increase in the
number of media and promotional options, and 2) the
unprecedented audience fragmentation. This chapter initially
addresses the primary characteristics of the media function.
Lecture Outline
1. Organization of the Media Function
A.Media Planner. The role of the media planner is to
supervise all areas of the
advertising campaign as it relates to the media function.
1) They are also marketing specialists who play a pivotal role
in the advertising
process.

2) They must anticipate future trends in a rapidly changing
environment and must
keep agency management and clients abreast of
major changes.
B.Media Research. The media research department
coordinates both primary and
secondary research data and functions as a support
group for media planners.
1)It must gauge future media trends.
2) In some instances, this department estimates likely audiences
for new magazines or television programs.
C.Media Buying. The media-buying department executes the
overall media plan.
1)Media buyers select and negotiate specific media placements
and they are responsible for monitoring postplacement
executions.
2)There may be separate groups or departments for each of the
mass media depending on the size of a media unit.
3) Recently, some media departments established units to
research and buy Internet advertising and/or construct client
websites.
D.Few areas of marketing and advertising have experienced the
change demonstrated by media planning in the last decade.
1)The media function has been driven by changes in the number
of media options, increasing media expenditures, and the great

financial risk associated with media buying mistakes.
2) In 2005, total advertising expenditures were over $271
billion.
a.By 2006, this figure will increase to over $286 billion.
b.The media planner of 2015 will be dealing with media outlets
that don’t exist today.
2. The New Media Function
A.As the media adapt to new technology and methods of
planning, there are a number of trends that will set the tone for
change and assess the future of media planning and buying.
B.Convergence. Simply put, media convergence is the blending
of distribution, content, and/or hardware from a number of
media companies to create a new or significantly expanded
communication system.
1)An example would be cell phone companies offering Internet
connections, newspaper companies creating websites, or NBC
and Microsoft combining to create MSNBC.
2)Consumers will continue to see numerous examples of
convergence.
3)Marketing, media content, and technological convergences are
in their embryonic stage. It is a trend of the present and even
more so of the future.

C.Interactivity. Technology will allow consumers to deal
directly with marketers for their entertainment, purchases, and
services; bypassing traditional media and marketing channels.
1)Because of this ability, buyers and sellers will be able to deal
on a one-to-one basis with communication and products tailored
to the interests of specific households and individuals.
2)In many instances, technological capabilities will outpace
customer utilization.
3)Interactive media are dramatically changing the marketing
landscape.
D.Creativity. Interactivity will also change the creative process.
1)We have entered a new era of “permission marketing” in
which the consumer has already determined his or her product
demand and actively seeks an advertiser.
2)The former mass advertising, which uses attention-getting
techniques is giving way to the dynamics of relationship
marketing.
3)Media planners are being asked to think of and evaluate new
and different media options to build additional, effective
exposure to consumers.
1. Attention has turned to developing and evaluating
entertainment and experience marketing opportunities.
(
*****NOTES: See
Kleppner’s

Viewpoint 7.1 For Example*****
)
E.Engagement.
1)With the shrinking of television audiences and the
proliferation of new media, advertisers and media planners are
becoming more interested in the concept of engagement..
2)Engagement takes into account the ability of an advertising
vehicle to deliver a receptive audience to the advertising in it. It
is turning on a prospect to a brand idea enhanced by the
surrounding context.
3)Advertisers are interested in knowing which media make the
advertising for their brand more effective.
4)Commonality in these trends is that they demonstrate that
media executives must be analytical, creative, and strategic in
their approach to the media process.
3. Media Unbundling and Independent Media Buying Firms
A.In a media environment characterized by convergence and
creativity, one of the common approaches to the media function
is known as unbundling.
1)The concept refers to the establishment of agency media

departments as independent units apart from their traditional
role as departments in full-service agencies.
2)This idea began in the 1960s when media experts believed
that they could obtain better commercial rates (television) than
full-service agencies, which often concentrated on creative
services.
3) Major advertising agencies took issue with the above
premise. Two major areas of disagreement are noted:
a.Where media planning (as contrasted with media buying)
should take place.
b.Degree of coordination between creative and media strategy.
1.Unbundling is a core issue subject to debate.
4)The concept of a totally unbundled media department is a core
issue for many agencies.
a.Historically, advertising agencies promoted themselves on the
basis of their being able to offer a complete menu of advertising
services – creative strategy and execution, account management,
and media research, planning, and placement.
B.Factors that led to an era of unbundling were:
1)Integrated marketing.
a.Several complex elements were at work in marketing.
b.Advertising agencies were not the only source for
communication expertise.
c.Specialists were hired in addition to the agencies.
d.Clients became comfortable dealing with several

communication agencies and began to look to specialization
within the advertising function.
2)Cost factors.
a.Media buying became more important as costs escalated.
1. Clients demanded more efficiencies, better identification of
target markets, and accountability.
c.The desire for low costs ran contrary to the use of
specialized media.
d. Fragmented media are being used more to reach
homogeneous audiences and this has increased the cost per
person reached.
3)Globalization.
1. Expansion into global markets increased demands
exponentially on media departments.
b.Strategic media planning became essential to gain worldwide
recognition.
4)Complexity of the media function.
a.The media function is now diversified in many
more areas than just the
mass circulation media.
1. Companies are demanding that advertising be monitored and
coordinated with event marketing, sales promotion, and public
relations.
c.Media planning plays a significant role in the execution of
these programs.

5)Profitability.
a.Media planning has now become a profit center.
b.Some agencies get the media planning business
while others get the
creative business.
(
)
C. Unbundling has given media executives a greater role in the
overall planning of advertising strategy.
4. Basic Media Strategy
A.Traditionally, media planners have used a building block
strategy to develop a media schedule.
1)Start with the medium that reaches the largest audience and
work down to the one that reaches the smallest.
2)Determining the first two or three “blocks” is easy. From
there on down it is not.
3)Media options are growing each year.
a.The Internet.

b.Videogames.
c.Interactive television.
4)Media planners have to go beyond costs in developing plans
and examine qualitative factors of the media such as
communication interactions between the audience and the
media.
B.Historically, the advertising process began with the
development of broad marketing and advertising strategies,
moved to creative execution, and finally to media placement.
Changes in this notion include:
1)Qualitative factors of media. The qualitative core attributes of
each medium interact with advertising messages to enhance or
diminish the advertising.
2)Fading distinctions among media.
a.Technology is changing the fundamental relationships among
media, audiences, and advertisers, creating an environment of
unclear distinctions.
b.Media planners must be more creative in utilizing media
vehicles today and look less at the distribution system and more
at the audiences and communication effectiveness.
3)Media accountability.
a.There is pressure on media planners to become more
knowledgeable in areas not formerly part of their responsibility.
b.Research shows that networks have distinctive brand
identities that appeal to certain demographic and buyer

categories.
c.Advertising accountability means that businesses want to link
their advertising to specific sales of their brands; made even
more important by the influence of technology on the media.
4)Value-added opportunities are incentives offered by the media
to advertisers to entice them to purchase more advertising space
in their media vehicles.
1. Can be anything from product placements, event
sponsorships, or mixed-media promotions to tickets to sporting
events or remote broadcasts.
C. Need to find ways to better link advertising and product sales
even more important as technology continues to change the
nature of both mass media and advertising.
0. In the near future we will not be dealing with distinct media
vehicles, but there will be a convergence of media.
0. Consumers will have greater control over communication
outlets, selecting only those entertainment, information, and
advertising messages they want.
0. Organizations we view as media today will be information
sources, and the carriers of this information will be limited.
D. Media Characteristics.
1)It is necessary to have a basic working knowledge of the
major media characteristics and functions, both editorial and
advertising.
2)Media planners must keep an open mind, finding the best fit

for the marketing and promotional goals of clients.
3)There will be hard budget choices due to the growing number
of media choices.
4)Strengths and weaknesses of media vehicles will be discussed
in future chapters.
5. Putting It All Together: The Media Plan
A.Media planners must be able to use the distinctive attributes
of each medium as part of a sophisticated analysis that leads to
a complete media plan for an advertising campaign.
B.Elements of a typical media plan:
(Note: See the five-part media plan in this section for
specific details and lists of the plan; specific units of the plan
are addressed in the following sections of this outline.)
Standard Media Plan components include (see p. 242 of text):
1)Marketing analysis: including market strategy, product
benefits, pricing strategy, and competitive environment
assessment.
2)Advertising analysis: including fundamental advertising
strategy and budget.
3)Media strategy: matching media vehicles and considering
creative and communication factors.
4)Media scheduling: including CPM estimates.

5) Justification and summary: including ad goals,
research plans, and
contingencies.
C.Target Audience.
1)No area in a media plan is more critical to the success of the
advertising campaign than the proper identification of the prime
target market(s) for a brand.
2)Rather than demographically-oriented, this identification is
more likely focused on identifying consumer needs, and the
product benefits that meet these needs.
3)Buyers and planners must keep their focus on the consumer,
product, and benefit rather than just reaching the greatest target
audience at the lowest cost.
4)Until recently, media planners tended to concentrate on
overall audience delivery by various media and the most
common way of measuring efficiency was cost per thousand
(CPM):
a.The formula is:
CPM = ad cost x 1,000
circulation
b.Example: People Weekly magazine has a circulation of
3,823,600 and a four-color page rate of $198,500.Then, CPM is
calculated:
People Weekly CPM = $198,500 x 1,000 = $51.91
3,823,600

c.In order to measure People Weekly’s efficiency in reaching
any particular
audience, we can use some variation of the weighted or
demographic CPM.
d.Of the total number of readers in the above example, 1.5
million have children underage 3. For this target audience:
Weighted CPM = $198,500 x 1,000 = $132.33
1,500,000
1. Any demographic lifestyle, product user or psychographic
data could be used.
1. CPM figures are important only as comparisons with those of
other media.
g.Now some measure of communication impact and audience
awareness can be added to the CPM mix.
h.Other considerations that need to be taken into account
include:
1. Creative predispositions of the audience (i.e., teens may
prefer radio to print).
2. Qualitative environment for the message—car magazines for
car buyers.
3. The synergistic effect—media combinations that are greater
than the sum of each one.
4. The creative approach.
D.CPM adjustments that might be necessary to take into
account communication

factors:
1)Probability of exposure to a medium. Should equal weights be
given to all forms of the mass media?
2)Advertising exposure weights to equalize the probability of an
ad being seen.
3)Communication weights to equalize the probability of an
advertising message communicating.
4)Frequency of exposure weights in the same medium. Does the
first exposure have the same or greater value than subsequent
exposures?
E. Research has shown that high levels of audience
involvement with a medium are positively related to
advertising response.
F.Claritas’ Potential Rating Index by Zip Market (PRIZM).
1)A shortcoming of many audience analysis methods is that they
consider only a single variable.
2)An innovation for segmenting markets on a multiple-variable
basis is the Potential Rating Index by Zip Market (PRIZM)
developed by Claritas Corp.
a.PRIZM NE divides the population into 14 social groups and
further subdivides these large segments into 66 subcategories.
The primary variables for determining these social groups are
lifestyle and income.
b.The value of these PRIZM groups is that these general
categories can then be matched with those products and media

that members of that particular group are most likely to use.
*****NOTES: Use Exhibit 7.2a and 7.2b Here*****
6. Communication Requirements and Creative Elements
A.Media planners are interested increasingly in the differential
value of various media and the value they add or subtract to
specific advertising messages, that is, the engagement these
media provide.
1)Account supervisors and clients recognize the importance of
early involvement of the art directors, copywriters, and media
planners to provide creative input in positioning and/or
advertising a brand.
2)Particularly now that value-added opportunities are an
important part of the media buying and planning process, it is
necessary for both the creative and media teams to know what
opportunities are most desirable for a brand to pursue.
B.There is a wide gap between advertising exposure and
advertising communication.
1) The greater the input from the account team to both
media and creative, the better the communication and
coordination.
2) Early decisions with proper input improves price
negotiation and time or space

selection.
C.A major criticism has been that advertising execution has not
fully utilized the communication strengths of the various media.
D.The convergence of media outlets, new media technology,
and availability of
interactive approaches for audiences has necessitated
the cooperation to create the
greatest impact on an audience that is in control of the
communication process.
7. Geography—Where Is the Product Distributed?
A.Geographical considerations are among the oldest factors in
buying media.
1)Today, media-planning boundaries are often much smaller
than in previous years.
2)Geographical considerations are more important as advertisers
find that consumers in different parts of the country
demonstrate different attitudes and opinions concerning various
product categories.
3)Media distribution demonstrates unpredictable patterns, like
products.
4)Media planners not only need to know where prospects are
located, but also how consumers in different areas rate in terms

of current and future sales potential.
5)A common method is the brand development index (BDI).
This is a method of allocating advertising budgets to those
geographic areas that have the greatest sales potential.
6) Research data allow marketers to more narrowly define
segments, leading to
greater use of localized media.
7) Localization can supplement a national campaign
effectively.
*****NOTES: Use Exhibit 7.3 and 7.4 Here *****
8. Media Tactics: Reach, Frequency, Continuity, and Budget
A.The media planner deals with four primary elements in
developing the final media
schedule:
1) Reach (also called coverage) is the number of
different people exposed to a
single medium or, in the case of a multimedia
campaign, the entire media
schedule.
1. It may be expressed as the number of prospects or as a
percentage of your target audience.
1. It represents a nonduplicated audience.
2)Frequency is the number of times each person in the audience

is exposed to your media schedule.
3)Continuity is the length of time over which a campaign will
run or the length of time that reach and frequency will be
measured.
4)Budget is the major constraint of any advertising plan. The
core consideration in all media planning.
B.The value of each media vehicle should be measured
according to three criteria:
1)The cost of the vehicle.
2)The number of target market members or the weighted target
market quality of the audience reached by the vehicle.
3)The effectiveness of the advertising exposures the vehicles
deliver.
C. From a practical standpoint, the media planner has control
over reach and frequency.
1).The budget is a strategic decision largely determined by the
client.
2) Reach, frequency, and continuity must be balanced against
the demands of a fixed budget.
D.Reach tactics:
1)Prime time television, reaches mass audiences, but is
expensive.

2)Daily newspapers cover 30 to 50 percent of most markets.
3)Large circulation magazines have a similar function as
television; but reach smaller overall audiences.
E.Frequency tactics:
1)Cable television, particularly specialized outlets.
2)Special interest magazines, reach same audiences over several
issues.
3)Radio, reaches loyal target markets.
F.The overriding motive of media planners is to achieve cost
efficiency with media dollars, although communicating
effectively to the target audiences.
G.Planners must take care to precisely measure the value ofa
particular prospect, medium, or message to the overall measure
of advertising effectiveness.
9. The Media Schedule
A.One of the final steps in the media planning process is the
development of a detailed media schedule.
1)The media schedule is a detailed blueprint or calendar for the
media portion of the campaign. It is also a guide for media
buyers to execute the media strategy developed by the planner.
2)This schedule details what media will be bought, when it will
be purchased, and how much time or space will be used for each

advertisement or commercial.
3)The advertising schedule for a national brand may entail
dozens or even hundreds of similar decisions; time availability
is also a concern.
4)The process of broadcast buying has improved in recent years
with the addition of electronic data interchange (EDI). This is a
means of connecting the agencies, clients, and media involved
in the buying process.
a.System is more efficient and significantly reduces errors by
decreasing the number of people involved in the buying and
billing process.
b. Another electronic media-buying process and brokering
service clearinghouses are becoming more important as the
process of linking stations with agencies and clients becomes
more complex.
B.Flighting is one of the most used advertising scheduling
techniques.
1)It consists of relatively short bursts of advertising followed
by periods of total or relative inactivity.
2)It appeals to those who perceive that they do not have enough
money to reach all their prospects with a consistent advertising
program.
3)Advertisers must guard against significant erosion of brand
awareness between flights.
4)In a steady schedule, awareness peaks fairly quickly (after

about 20 weeks) and afterward shows little if any increase.
a.Flighting saves budget dollars, reaches more prospects, and
builds higher levels of brand awareness in the long term.
5)Regardless of the flighting schedule used, the following
factors should be considered before using the strategy.
a.Competitive spending.
b.Timing of flights.
c.Advertising decay.
d.Secondary media.
6) Pulsing is a less extreme form of flighting, using advertising
more or less continuously but with peaks during certain periods.
C.The pressure of competition.
1)Advertisers must constantly be aware of what the competition
is doing in advertising strategy, product development, pricing
tactics, and other marketing and promotional maneuvers.
1. The media planner must develop a campaign that
distinguishes his or her product/brand from the competition.
1. Rather than operating from a defensive mentality, advertisers
should take practical stance in determining what their marketing
and advertising plans can reasonably accomplish and how they
meet the inroads of competing brands.
4)Advertising agencies bring an objective voice to the table—a

key to success.
5)Advertisers must undertake a thorough and candid appraisal
of all aspects of the competitive situation.
D.The budget.
1)If there is any advertising axiom, it is that no budget is ever
large enough to accomplish the task.
2)The art of media planning is solving the problem of large
media constantly demanding higher and higher rates with
advertising clients demanding more cost efficiency to their
advertising dollars.
3)Advertisers and their agencies have reacted to the cost
squeeze by instituting more stringent cost controls on media
costs and accountability for their advertising dollars.
4)As media continues to fragment, advertisers will continue to
look for alternative, nontraditional methods of promotion to
hold costs down.
5)In response to increases in advertising costs, advertisers are
more precisely defining their prospect to cut down on waste
circulation and are negotiating more aggressively with media
for time and space.
6) The media schedule is normally summarized in a
flowchart that presents the
overall media schedule as well as their audience
estimates and costs.

Chapter 10
Using Newspapers
Chapter Objectives
1.The changing character and role of newspapers in the
marketing mix
2.Challenges to newspaper advertising from other media
3.The marketing of newspapers to readers and advertisers.
4.The many categories of newspaper advertising
5.The newspaper advertising planning and buying process
6.The role of weeklies and ethnic-oriented newspapers
Chapter Overview
Newspapers are the leaders in terms of local advertising revenue
and trail only television in terms of total advertising revenues.

Each day approximately 53.5 million newspapers are
distributed, providing a large segment of the population with
news, entertainment, and advertising. Newspapers also enjoy a
reputation for credibility that creates a positive advertising
environment.
Lecture Outline
1. Introduction
A.The pros of using newspapers include:
1)Newspapers appeal primarily to an upscale audience,
especially those adults 35 years of age and older.
2)Newspaper advertising is extremely flexible with
opportunities for color, large and small space ads, timely
insertion schedules, coupons, and some selectivity through
special sections and targeted editions.
3)With coupons and sophisticated tracking methodology, it is
much easier to measure newspaper response rates than response
rates of many other media.
4)Newspapers have high credibility with their readers, which
creates a positive environment for advertisers.
B.The cons of using newspapers include:
1)Many newspapers have about 60 percent advertising content.

This high ratio of advertising, combined with an average
reading time of less than 30 minutes, means few ads are read.
2)Overall newspaper circulation has fallen far behind
population and household growth.
a.In addition, readership among a number of key demographics
such as teens and young adults has not kept pace with
population growth.
3)Advertising costs have risen much more sharply than
circulation in recent years.
C.Newspapers are read by over 50 percent of the population.
1)Newspaper readers have a higher than average income and
education level.
2)Advertising revenues are about $50 billion annually.
3)84 percent of the revenue comes from local advertising.
4)National advertisers are increasingly looking to local and
regional advertising strategies to communicate with target
consumers in the most effective way.
D.Advantages to small businesses and large corporations
(important features) of newspaper advertising include:
1)Flexibility of advertising formats and audience coverage.
2)Newspapers are especially useful in reaching upscale
households and opinion leaders.
3)Newspapers offer advertisers a number of creative options
including preprinted inserts, advertising in their Internet
edition, and the ability to deliver product samples.

4)Newspapers provide an environment of credibility and
immediacy unmatched by most media.
a.Viewed as a reliable source of both information and
advertising.
E.Trends that cause concern for newspapers include:
1)Circulation.
a.Newspaper circulation was 77 million in 1976 and dropped to
53.5 million by 2005.
b.Throughout the ’90s, circulation dropped about 1 percent per
year.
c.Reasons for the decline include changing demographics, lack
of youth readership, and the encroachment by other media such
as television and the Internet.
d.Some newspapers have had aggressive subscription drives, set
up programs to give young readers experience with the medium,
and attempted to appeal to an upscale readership.
(
)
2)Advertising revenues.
a.Revenue percentage of the total media pie was 28 percent in
the 1980s; however, currently this figure is at 18 percent.
b.Problems can be summarized as:

1.Retail chains have turned to other media forms such as direct
mail and inserts through newspaper distribution.
2.Lack of support from national advertisers.
3.Even local advertising support is being challenged by other
targeted media forms: local television and cable TV cut-ins,
free niche advertising books, city and regional magazine
editions, and radio.
3)Changing technology.
a.Newspapers face challenges from new media technology.
b.Significant improvements in instantaneous delivery, clarity,
and reliability of content and portability of technology over the
next 20 years are expected and will change dramatically the
methods of reaching customers.
c.Many newspapers have their own Web sites for their readers
and their advertisers.
d.The immediacy of newspapers is being replaced by electronic
formats.
e.Traditional newspaper strongholds such as newspaper-
classified advertising are being challenged by dozens of online
websites.
F.The newspaper industry faces both problems and opportunities
as they enter the next century; however this industry will face
growing competition from other media and information sources
as it attempts to maintain its media leadership position.
1. Despite declines in readership, however, newspapers remain

one of the most effective means of reaching a broad,
heterogeneous audience.
2. The National Newspaper
A.Historically, the United States, unlike other countries, has not
had a national newspaper; however, now there are a number
with national circulation, or national stature, or both.
1)To be a national newspaper, the newspaper would need:
a.To be published at least five days per week.
b.To print copies that are sold, distributed and available
nationwide.
2)Using the above criteria, national newspapers in the United
States would be:
a.The Wall Street Journal.
1.With 1.7 million in circulation, it is the second highest
circulation newspaper in the country.
2.Emphasis is on financial news.
3.It is among the most respected newspapers in the world,
appealing to the most elite demographics.
b.USA Today (Gannett Company publication).
1.A general-readership national newspaper.
2.Popular because of its bright colors and graphics, short
articles and extensive business and sport coverage.

3.The paper has a circulation of over 2.2 million.
4.The problem facing all nationally circulated newspapers is
finding a profitable market niche.
5.USA Today, along with other national papers depend upon
much of their revenue coming from automobile, computer,
communication, and financial services companies, that want to
appeal to a national audience.
1. The New York Times.
1.Like the Washington Post and the Chicago Tribune, until
recently, the Times was considered a regional newspaper.
3)The success of national newspapers is how readers and
advertisers define them. Widespread distribution and upscale
audiences are needed to be considered anything but a local
vehicle with occasional national advertising opportunities.
4) The Internet now offers newspaper publishers an opportunity
to reach a national and even an international audience.
*****NOTES: Use Exhibits 10.2 Here*****
3. Marketing the Newspaper
A.Newspapers are a product in need of extensive marketing to
both readers and advertisers.
1)Newspapers are being challenged by many new and traditional
competitors while at the same time finding it more difficult to

maintain the broad base of readership that has made them such a
powerful medium for over 200 years.
2)The quality (versus the quantity) of newspaper readership is
very good.
3)Newspapers are very strong among college graduates and
households with incomes in excess of $100,000.
a.Unfortunately, this tends to skew toward the older population.
4)Extensive marketing research studies have been undertaken by
newspapers to find out about current facts and interests of
readers. The general conclusions are:
a.Readers obtain their information from a number of sources
(including television, the Internet, etc.).
b. Advertisers, especially at the local level, are adopting
strategies that replace newspaper advertising with direct mail
and other forms of promotion.
c.Newspapers have a high degree of integrity and prestige as
sources of both advertising and editorial information, according
to studies.
d.Newspapers need to adopt a marketing mentality. Seeking to
protect their franchise by attracting readers and advertisers.
B.Marketing to readers.
1. Falling readership trends must be reversed; the quality of the
audience must be improved if advertisers are to be attracted.
1. Most newspapers depend on a broadly based audience and
high household penetration for financial success.

1. Steps that newspapers should take to reverse the decline of
this trend include:
a.Maintaining good circulation numbers should be a high
priority.
1.Get newspapers into the hands of young readers.
b.Editors and reporters should be free of control by marketing
departments.
1.Understand, however, that the newspaper is a business
enterprise that requires market research.
c.Go after the opportunities in national advertising.
1.Move aggressively to get these dollars.
d.Newspapers should consider their Web sites as a distinctive
product rather than a mere spin-off from the printed paper.
e.Give readers a choice and market to new audience segments.
1.Some papers have added youth sections.
f.Invest in research and explore ways to make their Internet site
complement the information provided in the newspaper.
4)Most newspaper readers see value in a newspaper with local
news and information with relevance to their lives.
a.Appealing to diverse interests, however, is extremely difficult.
b.To maintain their position, newspapers will have to find ways
to address the heterogeneous population.
C.Marketing to advertisers.
1)Advertising constitutes more than 70 percent of all newspaper
revenues and more than 50 percent of total newspaper space is

devoted to advertising.
a.In a fragmented market, newspapers are finding it difficult to
get their share of the advertising.
(
)
2)One of the problems facing newspapers is the dramatic
increase in advertising rates and CPM caused by rising fixed
costs that are generally higher than that faced by other media.
3)Newspapers must continue to convince advertisers that
newspapers are an efficient means of meeting a variety of
marketing and advertising objectives.
4)The marketing task for newspapers is a twofold undertaking:
a.To deliver the audience.
b.To compete for advertisers.
5) Newspaper advertising is considered high on believability
and trustworthiness relative to other major media types.
(
)
6)It is essential that newspapers retain local retailers that

traditionally comprise the bulk of newspaper revenues and must
gain more support from national advertisers.
7)To better position themselves favorably with advertisers’
desires, newspapers have taken a number of positive steps:
a.Provide readership as well as paid circulation data, because
total readership includes pass-along readers that can nearly
double the newspaper audience.
b.Develop a client-oriented perspective.
1.Train the salespeople in relationship marketing.
2.Develop a team approach between newspapers and advertisers
to solve problems.
c.Approach agency media buyers on a personal basis to
demonstrate the utility of newspaper advertising.
1.Develop information centers to make it easier for national or
regional advertisers to know about services and products.
2.The Newspaper Association of America (NAA), in
cooperation with Editor & Publisher magazine, provides
advertisers with a database of which newspapers provide special
editions, targeted inserts, and other advertising options to make
it easier to plan multi-newspaper media buys.
4. Newspaper Inserts, Zoning, and Total Market
Coverage

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