Chapter 10 Presentation


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Promotional Strategy - Media Planning & Strategy

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Chapter 10 Presentation

  1. 1. Promotional Strategy MKT4230 Media Planning and Strategy Patricia Knowles, Ph.D. Associate Professor Clemson University 1
  2. 2. 2 Promotional Strategy MKT4230 2 The Changing Media Landscape These are some of the predictions being made about the future of media and marketing communications. • Media budgets will not increase for years • Traditional media will have a different role, with a reduced budget • How consumers use media will never be the same Although traditional media are supposed to be dying, forecasts of their impending doom may be greatly exaggerated: • TV is still an effective medium • DVRs are not having as negative an impact as predicted • Newspapers are being read by more people than previously thought • Direct marketing has increased in effectiveness However, all agree that viewers’ media consumption, technology changes and inventions, and so forth will create havoc for media planners. The key may be using a “portfolio model,” which considers synergism between media. Textbook Pages 327 - 328
  3. 3. 3 Promotional Strategy MKT4230 3 Factors Leading to Changes in Media No one thing is leading to change, as may have happened with TV overtook radio. Rather, changes is being driven by a combination of things… changing lifestyles, changing technology, and changing attitudes. Textbook Pages 293 - 295 • Consumers are busy and time crunched • Multitasking becoming more prevalent • New media options/ media proliferation • Changing lifestyles (cocooning) • Technology developments/changes • Media Fragmentation • Consumer attitudes toward media
  4. 4. 4 Promotional Strategy MKT4230 4 Media Terms and Concepts The basic terms and concepts of media planning and strategy: Textbook Pages 329 - 331 A series of decisions involving the delivery of messages to audiences Media Planning Goals to be attained by the media strategy and program Media Objectives Decisions on how the media objectives can be attained Media Strategy General categories of delivery systems, including broadcast and print media Medium
  5. 5. 5 Promotional Strategy MKT4230 5 Media Terms and Concepts The basic terms and concepts of media planning and strategy: Textbook Pages 329 - 331 The specific carrier within a medium category Media Vehicle Number of different audience members exposed at least once in a time periodReach The potential of audience that might receive the message through the vehicle Coverage Number of time the receiver is exposed to the media vehicle in a time period Frequency
  6. 6. 6 Promotional Strategy MKT4230 6 Developing the Media Plan The various steps and activities involved in developing a media plan: Textbook Pages 331 / Figure 10 - 2 Selecting media within class Selecting broad media classes Determining media strategy Media use decision (print) Media use decision (broadcast) Media use decision (other media) Setting media objectives Marketing strategy plan Situation analysis Creative strategy plan
  7. 7. 7 Promotional Strategy MKT4230 7 Media Planning Difficulties Problems that contribute to the difficulty of developing the media plan and thus may reduce its effectiveness. Textbook Pages 319 - 321 Measurements Problems Time Pressure Lack of Information Inconsistent Terminology Problems in Media Planning
  8. 8. 8 Promotional Strategy MKT4230 8 Developing a Media Plan The various steps involved in the media planning process: Textbook Pages 333 - 334 / Figure 10 - 4 Evaluate performance Analyze the market Establish media objectives Develop/implement media strategy
  9. 9. 9 Promotional Strategy MKT4230 9 Using Index Numbers The index number, determined by using this formula, is a good indicator of market potential. An index number over 100 means use of the product is proportionately greater in that segment than in one that is average (100) or less than 100. Textbook Pages 334 - 335 Percentage of users in a demographic segment Percentage of population in the same segment Index = X 100 Index Number
  10. 10. 10 Promotional Strategy MKT4230 10 Using the Brand Development Index Brand Development Index helps marketers factor the rate of product usage by geographic area into the decision of where to allocate their media budget. The higher the BDI number, the greater the potential that exists. Textbook Pages 338 - 340 Percentage of brand to total U.S. sales in market Percentage of total U.S. population in market BDI = X 100 Brand Development Index
  11. 11. 11 Promotional Strategy MKT4230 11 Using the Category Development Index The Category Development Index (CDI), which is another index that can help marketers determine where to allocate the media budget. It is computed in a manner similar to the BDI index, except that it uses information regarding the overall product category, rather than for specific brands. Textbook Pages 340 / Figure 10 - 10 Percentage of total product category sales in market Percentage of total U.S. population in market CDI = X 100 Category Development Index
  12. 12. 12 Promotional Strategy MKT4230 12 Test Your Knowledge In calculating both the brand development index (BDI) and the category development index (CDI), a media planner obtains the following results: Low BDI and High CDI. What do these results imply? A. High market share; good market potential B. Low market share; good market potential C. High market share; monitor for sales decline D. Low market share; poor market potential
  13. 13. 13 Promotional Strategy MKT4230 13 Using BDI and CDI As the chart shows, high BDI and CDI means there is greater market share and greater market potential. The lower these two indices are, the lower the market potential. Knowing this information helps marketers decide where their ad dollars should be spent to achieve the desired outcome. Textbook Pages 340 - 341 / Figure 10 - 11
  14. 14. 14 Promotional Strategy MKT4230 14 Developing Media Strategies Criteria to consider during plan development: Textbook Pages 341 / Figure 10 - 12 • The media mix • Target market coverage • Geographic coverage • Scheduling • Reach and frequency • Recency • Creative aspects and mood • Flexibility • Budget
  15. 15. 15 Promotional Strategy MKT4230 15 The Media Mix There is a number of criteria that must be considered before making a media selection decision. We choose one medium and one medium vehicle from among the many that are available. While it is possible that only one medium and/or vehicle may be employed, it is much more likely that a mix will be the optimum choice. For example, consider a promotional situation in which a product requires a visual demonstration to be commercially effective. In this case, TV may be the most effective medium. However, if the promotional strategy calls for coupons to stimulate product trials, print media may be necessary. For in-depth information, an Internet website may be best. By combining media, marketers can increase coverage, reach and frequency levels while improving the likelihood of achieving overall communications and marketing goals. Textbook Pages 341 - 342
  16. 16. 16 Promotional Strategy MKT4230 16 Target Audience Coverage There are various target market coverage scenarios. Developing media strategies involves matching the coverage of the media vehicles to the target market. The goal of the media planner is to extend media coverage to as many members of the target audience as possible, while minimizing the amount of excess or wasted coverage. Textbook Pages 342 – 343 / Figure 10 -13 Target Market Proportion Full Market Coverage Partial Market Coverage Coverage Exceeding Target Market Population excluding target market Target market Media coverage Media overexposure
  17. 17. Weighting certain geographic area more than others may make sense, depending on the product or service being marketed and the goal of the advertising campaign. Snow skiing is more popular in some parts of the country than in others. It would not be wise to promote skis in areas of low interest, unless the goal is to increase interest. And while it may be possible to promote an interest in skiing in Texas, a notable increase in sales is not likely, given the market’s distance from snow. 17 Promotional Strategy MKT4230 17 Geographic Coverage Textbook Pages 343
  18. 18. 18 Promotional Strategy MKT4230 18 Scheduling Methods The primary objective of media scheduling is to time advertising efforts so that they will coincide with the highest potential buying periods. These are the three scheduling methods available to the media planner: • Continuity: Continuous pattern of advertising; every day, every week, or every month. • Flighting: Intermittent periods of advertising and no advertising • Pulsing: Combination of continuity and flighting; continuity is maintained but at certain periods advertising is increased. Textbook Pages 344 / Figure 10 - 15 Continuity Pulsing Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Flighting
  19. 19. 19 Promotional Strategy MKT4230 19 Reach and Frequency Concepts associated with reach and frequency. Textbook Pages 345 = 347 / Figure 10 - 18 A. Reach of One Program B. Reach of Two Programs C. Duplicated Reach of Both D. Unduplicated Reach of Both Total market audience reached Total market audience reached Total market reached with both shows Total reach less duplicated shows
  20. 20. 20 Promotional Strategy MKT4230 20 Ratings Points To determine how much advertising is necessary to accomplish the advertiser’s objectives, marketers rely on ratings (the number of people reached) and frequency (the average number of times exposed) figures. Textbook Pages 347 - 348 Gross Ratings Points (GRPs) • GRP = Reach X Frequency Target Ratings Points (TRPs) • The number of people in the primary target audience the media buy will reach • The number of times they will be reached
  21. 21. 21 Promotional Strategy MKT4230 21 Effective Reach Effective Reach represents the percentage of a vehicle’s audience reached at each effective frequency increment. Textbook Pages 349 – 350 / Figure 10 - 21
  22. 22. 22 Promotional Strategy MKT4230 22 Marketing Factors Determining Frequency This is a list of marketing factors that impact the determination of frequency levels. Textbook Pages 351 / Figure 10 - 22 Target GroupBrand History Share of Voice Purchase Cycles Brand Loyalty Brand Share Usage Cycle Marketing Factors
  23. 23. 23 Promotional Strategy MKT4230 23 Message Factors Determining Frequency List of the message or creative factors that impact the determination of frequency levels. Textbook Pages 351 / Figure 10 - 22 Message Complexity Message Uniqueness New vs. Continuing Campaigns Image Versus Product Sell Message Variation Wearout Advertising Units Message or Creative Factors
  24. 24. 24 Promotional Strategy MKT4230 24 Media Factor Determining Frequency The various media factors that affect the advertisers’ decisions regarding frequency levels needed to communicate effectively. Textbook Pages 351 / Figure 10 - 22 Clutter Number of Media Used Repeat Exposure Editorial Environment Scheduling Attentiveness Media Factors
  25. 25. 25 Promotional Strategy MKT4230 25 Creative Aspects and Mood There are two basic ideas: • A specific creative strategy may require a certain media • The medium in which an ad is placed may affect viewers’ perceptions of the ad Consider the image that might be created if your product were to be advertised in the following media: • The New York Times versus the National Enquirer • A highly rated prime-time TV show versus an old rerun • Television versus the Internet Textbook Page 352
  26. 26. 26 Promotional Strategy MKT4230 26 Flexibility in Media Planning Strategies Here are some areas where flexibility in a media strategy may be needed to avoid lost opportunities and address new threats. Textbook Page 352 - 353 Market opportunities Market threats Availability of media Changes in media or media vehicle Flexibility
  27. 27. 27 Promotional Strategy MKT4230 27 Test Your Knowledge Why should an effective media strategy be flexible? A. Due to the potential development of new advertising media B. Due to an alteration of a competitor’s media schedule C. Due to the unavailability of the desired medium D. Due to a drop in the ratings of a show previously on the media schedule E. Due to all of the above
  28. 28. 28 Promotional Strategy MKT4230 28 Determining Relative Cost of Print Media Advertising and promotional costs can be categorized in two ways: • Absolute cost… the actual total cost required to place the message • Relative cost… the relationship between the price paid for advertising time or space and the size of the audience delivered. This is how the relative cost of print media is calculated. In essence, it is the cost per thousand people reached and is calculated for print media such as magazines by dividing the cost of the ad space by the circulation and multiplying this amount by 1000. Textbook Pages 353 - 355 CPM = Cost of ad space (absolute cost) Circulation Cost per thousand (CPM) X 1000
  29. 29. 29 Promotional Strategy MKT4230 29 This Ad Uses a Clever Visual Appeal This visual shows the cost per rating point (CPRP) formula used to calculate the cost of broadcast media (often referred to as cost per point or CPP). The relative cost of broadcast media is calculated by using the cost per rating point formula. A rating point represents 1 percent of all households in a particular area who are tuned into a specific program. Textbook Page 354 CPRP = Cost of commercial time Program rating Cost per rating point (CPRP)
  30. 30. 30 Promotional Strategy MKT4230 30 Determining Newspaper Advertising Costs You would calculate the cost of running an advertisement in a newspaper. Cost effectiveness is based on the daily inch rate, which is the cost per column inch of the paper. Like magazines, newspapers now use the cost-per-thousand formula to determine relative costs. Textbook Page 354 Cost of ad space x 1,000 Circulation Daily Inch Rate
  31. 31. 31 Promotional Strategy MKT4230 31 Television Pros and Cons Summary of the various advantages and disadvantages of using television as a medium. Textbook Page 356 / Figure 10 - 27 Mass coverage High reach Sight, sound, motion High prestige Low cost per exposure Attention getting Favorable image Advantages Short message life High production cost Low selectivity High absolute cost Clutter Disadvantages
  32. 32. 32 Promotional Strategy MKT4230 32 Radio Pros and Cons Summary of the various advantages and disadvantages of using radio as a medium. Textbook Page 356 / Figure 10 - 27 Local coverage Low cost High frequency Flexible Low production cost Well-segmented audience Advantages Clutter Fleeting message Audio only Low attention getting Disadvantages
  33. 33. 33 Promotional Strategy MKT4230 33 Magazine Pros and Cons Summary of the various advantages and disadvantages of using magazine as a medium. Textbook Page 356 / Figure 10 - 27 Segmentation potential Quality reproduction High information content Longevity Multiple readers Advantages Visual only Long lead time for ad placement Lack of flexibility Disadvantages
  34. 34. 34 Promotional Strategy MKT4230 34 Summary of the various advantages and disadvantages of using newspaper as a medium. Textbook Page 356 / Figure 10 - 27 High coverage Low cost Short lead time for placing ads Ads placed in interest section Timely (current ads) Reader controls exposure Can be used for coupons Advantages Clutter Poor reproduction quality Short life Low attention getting Selective reader exposure Disadvantages Newspaper Pros and Cons
  35. 35. 35 Promotional Strategy MKT4230 35 Summary of the various advantages and disadvantages of using outdoor as a medium. Textbook Page 356 / Figure 10 - 27 Location specific High repetition Easily notices Advantages Short ads Local restrictions Short exposure time Poor image Disadvantages Outdoor Pros and Cons
  36. 36. 36 Promotional Strategy MKT4230 36 Summary of the various advantages and disadvantages of using direct mail as a medium. Textbook Page 356 / Figure 10 - 27 High selectivity Reader controls exposure High information content Advantages Poor image (junk mail) High cost per contact Clutter Disadvantages Direct Mail Pros and Cons Repeat exposure opportunities
  37. 37. 37 Promotional Strategy MKT4230 37 Internet Pros and Cons Summary of the various advantages and disadvantages of using Internet as a medium. Textbook Page 356 / Figure 10 - 27 User selects information User attention / development Interactive relationship Direct selling potential Flexible message platform Advantages Clutter Limited reach Lack of controls Questionable measurement techniques Disadvantages
  38. 38. 38 Promotional Strategy MKT4230 38 Test Your Knowledge In terms of media vehicles, ______ would be most efficient medium for the “Got Milk” slogan. A. television B. interactive media C. radio D. outdoor E. newspapers
  39. 39. 39 Promotional Strategy MKT4230 39 Evaluation and Follow Up All plans require some evaluation to assess their performance. The media plan is no exception. Any measure of effectiveness must consider the two factors shown below. Although it is difficult to measure effectiveness, it is not impossible. Even a less-than-perfect evaluation procedure is better than no attempt at all. Textbook Page 357 Use again, or analyze flaws How well did these strategies achieve the media objectives? How well did the media plan contribute to attaining the overall marketing and communications objectives?