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Chapter 10 - Media Planning and Strategy
Chapter 10
MEDIA PLANNING AND STRATEGY
Chapter Overview
Chapter 10 introduces the concepts involved in media planning.
The chapter begins with an overview of media planning by
introducing some key terms and concepts. At this point, the text
points out that media planning is as much an art as it is a
science. A number of problems associated with the planning
process are discussed. The role and purpose of the media plan
follows with a presentation of the steps required in developing
this plan. After an in-depth discussion of the elements of the
media plan, the chapter presents information regarding the use
of computers in the planning process. The characteristics of
various media and sources of media information are presented at
the end of the chapter.
Learning Objectives
1. To understand the key terminology necessary in media
planning.
2. To know how a media plan is developed.
3. To know what constitutes media objectives
4. To know the process of developing and implementing
media strategies.
5. To be familiar with various characteristics of media.
Chapter and Lecture Outline
I.
AN OVERVIEW OF MEDIA PLANNING
This overview presents a brief discussion of the factors
involved in the media planning process and illustrates the fact
that media planning is an involved process influenced by a
variety of factors including the nature of the media, the overall
marketing strategy, and the product or service being advertised.
A.
Basic Terms and Concepts—some of the critical terms necessary
for understanding media planning are presented including:
· media planning—the series of decisions involved in delivering
the message to the target audience
· media plan—the actual document detailing these decisions
· media objectives—the objectives sought by the media plan
· media strategies—the plans of action designed to attain the
media objectives
· medium—the general category of media channels such as
broadcast, print, etc.
· media vehicle—the specific carrier in a media category
(television, magazines, etc.)
· reach—the number of potential audience members exposed
once to a media vehicle in a given period of time
· coverage—the potential audience that might receive a message
through a vehicle
· frequency—the number of times the receiver is exposed to the
media vehicle in a given time period
B.
The Media Plan—the goal of the media plan is to find a
combination of media that will enable the marketer to
communicate the message in the most effective manner possible
at minimum cost. The activities involved in this plan are
detailed in Figure 10-4.
C.
Problems in Media Planning—a number of problems are
identified, each of which directly impacts the planning process.
These include: insufficient information, inconsistent
terminology, time pressures, and problems in measuring
effectiveness. An understanding of these problems is critical to
the proper design of the media plan.
Professor's Notes
II.
DEVELOPING THE MEDIA PLAN
The process of developing the media plan involves a series of
steps (see Figure 10-2). These steps are essentially the same as
those presented in the decision sequence model presented in
Chapter 1, except now they are involved directly with media
decisions. These steps include: market analysis, establishment
of media objectives, media strategy development and
implementation, and evaluation and follow-up.
III.
MARKET ANALYSIS AND TARGET MARKET
IDENTIFICATION
A.
To Whom Should We Advertise? The discussion of target
marketing is reviewed, though now the emphasis is on media,
and some of the sources of information that are available to
assist in making this decision. Secondary sources of information
such as Experian Simmons Market Research, and GfK
Mediamark Research, Inc.(MRI) are described. A brief
discussion of the use of index numbers and their use in
determining target markets is also provided
B.
What Internal and External Factors May Be Operating? As in
the overall situation analysis, both internal and external factors
will directly influence the media decisions. An example of
using secondary sources to gain competitive information is
provided, with an example of LEADING NATIONAL
ADVERTISERS (COMPETITIVE MEDIA REPORTING) data
shown in Figure 10-1.
C. Where to Promote? The decision as to where to promote at
this point involves geographical considerations. Once again, the
discussion turns to the use of secondary information and indices
as aids in making this decision. A number of critical terms are
introduced including: The Survey of Buying Power Index, the
Brand Development Index, andthe Category Development Index.
The calculation of both BDI and CDI is provided, based on
actual examples. Figure 10-11 is a useful way of presenting
strategies evolving around BDI and CDI.
Professor's Notes
IV.
ESTABLISHING MEDIA OBJECTIVES
Media objectives relate to the goals to be attained by the media
program, and as such should be limited to those that can be
accomplished through media strategies. Such objectives are
often expressed in terms of coverage, reach, frequency,
scheduling, etc.
V.
DEVELOPING AND IMPLEMENTING MEDIA STRATEGY
A.
Developing a Media Mix—many media strategies require a
combination of media to be used. The media mix involves the
determination of the various channels to be used. The objectives
of the plan, the budget and other factors, will directly impact
this decision.
B.
Determining Target Market Coverage—Figure 10-13 provides a
graphic illustration of market coverage possibilities. Of course,
the marketer would like to achieve full coverage through a
combination of media. As noted, this is not a likely outcome,
and decisions have to be made that involve trade-offs between
less than full market coverage and over coverage or waste
coverage.
C.
Determining Geographic Coverage—The strategy of
geographical weighting, in which geographic areas receive
differential amounts of media emphasis, is discussed.
D.
Scheduling—Because it may not be feasible (or necessary) to
maintain a constant advertising schedule, marketers will
typically employ one of three scheduling alternatives:
1.
Continuity refers to a continuous pattern of advertising—that is
every day, week, or month (food products, laundry detergents,
etc.)
2.
Flighting is a scheduling method in which there are intermittent
periods of advertising and nonadvertising (snow skis, etc.)
3.
Pulsing is actually a combination of the two previous methods,
in which a continuous schedule is used, though the amount of
monies spent will vary throughout the time period (beer).
E.
Reach versus Frequency—Given that advertisers have differing
objectives, and are constrained by budgets, the media decision
usually involves a trade-off between reach and frequency. This
decision is essentially one of exposing more persons to the ad,
or exposing fewer persons more often. In making this decision,
the media planner must take into consideration a number of
factors involving reach and frequency including:
1.
The determination of what levels of reach and frequency are
needed
2.
The establishment of reach and frequency objectives
3.
Using gross ratings points (GRP's)
4.
The determination of effective reach (the percent of the
audience reached at each effective frequency increment)
F.
Creative Aspects and Mood—Creative aspects of the ad may
require the use of specific media. For example, television may
be required to implement certain types of creative campaigns.
Likewise, the mood that a medium creates may carry over to the
ad itself. For example, certain magazines may create various
moods as they are being read.
G.
Flexibility—the media strategy must be flexible enough to
respond to marketing threats and opportunities, as well as to
adjust for changes regarding availability and/or in the media
themselves. Flexibility may need to address the following:
· market opportunities
· market threats
· availability of media
· changes in media or media vehicles
H.
Budget Considerations—it is obvious that costs must be
considered in the determination as to which media will be
employed. Two types of costs must be addressed—absolute
cost—which is the actual cost to place the ad in the medium—
and relative cost—or the relationship between the price paid for
advertising time or space and the size of the audience delivered.
A comparison of media vehicles is usually necessary, using
criteria such as cost per thousand (CPM), cost per ratings point
(CPRP), and readers per copy. (Each of these is explained in
detail in the text.)
Professor's Notes
VI.
EVALUATION AND FOLLOW-UP
As with other elements of the advertising/promotional program,
the media program also requires evaluation to determine its
effectiveness. Essentially, two questions need to be answered:
(1) How well did these strategies perform the media objectives
established; and (2) How well did this media plan contribute to
the attainment of the overall marketing and communications
objectives?
VIII.
CHARACTERISTICS OF MEDIA
There are a number of sources of information available which
define the various advantages and disadvantages of media.
Figure 10-27 lists the major media, and the characteristics of
each.
APPENDIX A
Appendix A provides an example of a media flow chart of Asics
shoes.
Professors Notes
Teaching Suggestions
Both the length and complexity of this chapter make it a
difficult one for students to comprehend. The chapter contains a
large number of terms, definitions, and formulas. Unfortunately,
there is no way to ignore all of these, as they are critical to the
students' learning of media planning and strategy, and are the
"buzzwords" with which they will need to become familiar to
participate in the advertising world, regardless of which side of
the buying-selling process they may be on. One suggestion is to
break the chapter into two lectures. In the first, the terms,
formulas, etc., as well as an overview of the planning process
can be discussed. The second lecture can be more specific,
focusing on some of the objectives to be accomplished,
discussing reach and frequency trade-offs, effective reach, and
the like.
Answers to Discussion Questions
1. One well known media planner has noted that media buying
is a combination of art and science with a definite bias toward
art. Explain what this means and give examples of
circumstances or situations in which this might be the case.
(LO4)
Marketers have a wealth of information available to them for
their use in media planning. Besides those provided by
syndicated services like Simmons and MRI, the media
themselves provide valuable information. There are also
computerized media buying software programs, ratings services
and primary research companies that may be employed.
At the same time, all information cannot be quantified. What
might be referred to as ”local knowledge”, or information that
one just knows, often enters into the picture. For example,
media buyers know there is a difference between weekly and
monthly magazines (the latter stays around longer, leading to a
higher potential for reach and frequency), location in the
medium (page placement, within TV shows, etc) and the
editorial perspective may all have an effect.
As an example, in one market, the sports anchor was loved by
many and hated by an equal amount of viewers. Local buyers
knew that many viewers would switch to another channel when
the sports came on (often switching back when it was over).
While a very careful analysis of the TV ratings may have
revealed this, to those familiar with this scenario, the “art” of
media buying was invaluable.
2. GfK MRI and Experian Simmons both provide indexes to
describe profiles of product users. Using the index provided in
Figure 10-5, describe the profile of the energy drink user. Who
is least likely to drink this product? (LO2)
Using the index, as the number exceeds 100, the potential for
use increases. As shown in Figure 10-5, the profile of the
energy drink user is:
Education:
did not graduate high school (122); attended college (116); no
college (103)
Age:
18-24 (225); 25-34 (160); 35-44 (112)
Sex:
male
Occupation:
construction and maintenance (170); sales and office
occupations (123);
other (132)
Income:
$60,000-74,999 (109); $30,000-39,999 (109); $50,000-59,999
(105)
The nonuser can best be described as a :
65+ year old, with a post graduate degree, employed in a
business management profession with household income
of $150,000+.
3. What does it mean for a company when they discover that
their product has a High BDI but low CDI? What about a low
CDI and Low BDI? (LO2)
High BDI; low CDI:
The product category is not selling well, but the brand is.
Probably a
good market to advertise in, but should be monitored for
declining sales.
Low CDI; low BDI
Both the product category and the brand are doing poorly; not
likely
to be a good place for advertising
Low CDI; low BDI
Both the product and the category are not doing well. Probably
not a
good market in which to advertise.
4. As the media landscape continues to change, and advertisers
shift more and more of their monies into new media, there are
those who predict that some traditional media like TV and
newspapers may not survive—at least in their present forms.
Discuss whether you think this is an accurate statement and why
or why not. (LO5).
There is no question that companies have shifted their
advertising dollars from traditional media to nontraditional
media. It is also true that some traditional media are in
trouble—particularly newspapers and magazines—as advertisers
have become enamored with the new media opportunities. A few
years ago, some of the largest traditional advertisers like P&G
and American Express made a major point of the fact that they
were moving away from traditional media. In 2010, for the first
time in a very long time, P & G did not advertise on the Super
Bowl, using the money in new media. Many others have
followed a similar path.
However, there are indications that there may be changes taking
place in the thinking of these large organizations. P & G
announced that it will return to the Super Bowl in 2011, as has
BMW. Others almost certainly will follow. Much of this may be
attributed to the importance of IMC, and research supporting
the value of traditional media. Numerous studies have shown
that for the achievement of certain objectives—particularly
those at the top of the consumer funnel—traditional media like
TV have much to offer. These studies demonstrate that
traditional media drive consumers to the Internet, and that
magazines remain effective to special interest groups.
Whether or not traditional media will survive is another matter,
as many are already in trouble, and have lost significant
advertising revenues. However, recent articles have
demonstrated a new found interest in TV, and specialty
magazines are thriving (as is direct marketing, and outdoor).
5. Some media claim that advertisers should focus more
attention to Readers per Dollar than CPM as a relative cost
figure. Explain why they feel this way, and discuss some of the
advantages and disadvantages with the use of both of these
measures. (LO2).
The discussion in the text covers the topics of CPM and readers
per dollar quite effectively. The basis for this differentiation is
simple—how many people are being reached by the medium for
a given cost? CPM refers to the relative cost for reaching an
audience based on the cost of ad space divided by the
circulation. As the text notes, this figure can over estimate or
underestimate the relative cost.
Readers per dollar incorporates an additional figure—pass along
rate. The proponents of using this measure argue that many
magazines are read by more than one person (e.g., passed
along), and that by using the CPM figure one underestimates
potential exposures. They cite examples like Sports Illustrated,
or Time or Newsweek noting that more than one family member
may read each issue (these are just a few examples of such
media), and that a more accurate figure would include these
additional readers. Some magazines may even provide their
measures of pass along readership.
The problem with determining readers per dollar lies in the
determination of pass along. While marketers know intuitively
that magazines are passed along, making a specific
determination as to the number of times is extremely difficult
and often unreliable. Thus, most marketers do not calculate cost
efficiencies on these numbers. Perhaps the best solution is a
compromise—which is what many marketers do. They use the
CPM figure as the base calculation, taking into consideration
that many magazines are read by more that one person. In a
sense, these extra readers are bonus readers. As you can see,
using CPM and readers per dollar is truly a combination of art
and science!
6. What is meant by engagement (in media terms)? Explain the
relevance of engagement to media planners. (LO1)
The term engagement is nothing new to media planners, and has
been discussed for the past few years but with still no
agreement as to exactly what it means. The reason for such
attention stems from the fact that current metrics like CPM and
CPP, etc., while still useful, are considered insufficient for
today’s media planners.
For the most part, engagement refers to the degree of
involvement the viewer demonstrates with the message. Others
have also considered relevance, intent, etc.. The basic concept
is that more involved readers, watchers, and/or users will be
more interested in the communication than will those merely
exposed. For example, if I am in the market for a car, I may
spend more time “engaged” with the ad. On the internet, if I
spend more time on a page, I may be considered as more
engaged.
While certainly relevant, engagement has not yet shown to be as
important as one might expect. While some research studies
show that engaged viewers may demonstrate higher recall and
like the ad better, as well as take some behavioral action after
exposure to the ad, skeptics say “so what”? They argue that
engagement may be explained by mere involvement with the
product or service category, and of course involved consumers
would be more inclined to reflect the same results. They argue
that engagement is nothing new.
Whether it is engagement or involvement, or relevance, all of
these terms reflect more interest in the ad is likely to occur.
While this is certainly an advantage over mere exposure, it does
not mean that engagement has provided some major
breakthrough.
7.
A criticism of the current rating system for TV is that the
numbers are based on sweeps periods. Some argue that a more
accurate picture is provided by the meter system. Discuss some
of the advantages and disadvantages of each method. (LO1)
Television audience measurements are taken on a daily basis,
however, the measures used to determine advertising rates are
taken only four times a year--February, May, July and
November. These four data collection periods are referred to as
sweeps periods.
Data collection during sweeps may result in inaccuracies for a
number of reasons:
· the networks schedule more interesting programs during
sweeps
· the networks and individual stations run more promotions
during sweeps periods
· the viewing audience may actually be aware of sweeps, and as
a result "vote" with their viewing habits
All of the above may lead to an overestimation of audience size
that is then generalized to succeeding non-sweeps periods.
The summer sweeps period is often discounted by the industry.
Because television viewing is less in summer months and re-
runs are often shown, the number of persons watching is less.
Station and network programs designed to increase these
numbers are less effective. As a result, the data is often ignored
or downplayed.
If there is an advantage to sweeps, it accrues to the television
stations whose fees will reflect the higher ratings that are likely
to result from the sweeps periods.
8.
Some marketers estimate that the average consumer may be
exposed to as many as 3,000 ads per day. Current estimates of
effective frequency are based on 1,500 exposures per day.
Discuss how, if at all, more exposures to advertising may
necessitate changes in effective frequency.
First, let’s realize that the number of exposures to ads is a very
difficult figure to derive. While estimates now are supposed to
be in the 3,000 area, there are those who believe that the
number may be more like 4,000. Nevertheless, it is safe to
recognize that the number of exposures has significantly
increased over the past few years.
It is also important to note that the concept of effective
frequency was originated in the early 1970’s, which would seem
to make it is necessary for updating. Certainly, the number of
exposures at that time would be far less.
Based on the assumption that consumers are now exposed to
many more ads, one must believe that the level of effective
frequency may have to change. The sheer amount of clutter and
over exposure to ads would seem to indicate that it would be
necessary to increase this number. Some media experts have
suggested at least to 10-12, but offer no empirical support for
these numbers.
While there is no definitive answer to this new level, it would
seem logical that the sheer amount of exposure might make
processing more difficult, leading to a need to determine
whether or not this number is still accurate.
9. Some business to business advertisers (for example, copy
machine companies) advertise on NFL Sunday and/or Monday
Night football games. As might be expected, such a buy would
lead to a high level of waste coverage. Explain what is meant by
waste coverage. Discuss whether this might or might not be a
good media buy. (LO3)
Waste coverage refers to overexposure, in which the media
coverage exceeds the target audience. If the media reaches
people who are not sought as buyers and are not potential users,
then it is potentially wasted, and of little or no value to the
marketer.
At first glance, an ad for a copy machine that is used in
business markets (as opposed to home use) may seem like a lot
of money. How many of those people watching a pro football
game are now, or ever will be, in the market for purchasing
such an expensive machine? In fact, it may not be such a bad
buy after all. While there certainly will be a large amount of
waste coverage, many marketers are willing to live with that
fact due to the fact that to reach the same amount of members of
the target audience through more targeted media might be even
more expensive. In other words buying ads in Office
Management magazine and other business related periodicals
may actually cost more than the television ad to reach the same
amount of people. Thus the large waste coverage is acceptable.
In addition, one never knows when new buyers may enter the
market, and the exposure would not hurt. Finally, word of
mouth, or reaching influencers or users, (not necessarily buyers)
may also be of value.
10.
Explain what is meant by BDI and CDI. How do advertisers use
these indices in their media planning? (LO1)
Pages 338-341 discuss BDI and CDI. BDI compares the
percentage of the brand's total US sales in a given market area
with the percentage of the total population in the market. The
resulting BDI indicates the sales potential for that brand in that
market area. CDI provides information on the potential for
development of the total product category rather than specific
brands.
Figures 10-9,10-10 and 10-11 provide an excellent summary of
how BDI and CDI can be calculated and used to develop
marketing strategies. The use of these indices provides
marketers with insights into the market potential for the product
or brand. This, in turn, provides information regarding the
amount of media emphasis, weighting, etc. to be allocated.
Additional discussion questions (not in the text).
11. Explain the differences between CPM and TCPM. Give
examples of a company or product that
might select one of the methods versus the other. (LO1)
As products and brands become more and more targeted, the use
of CPM has been on the decline. As you can imagine, years ago
with less market differentiation and more use of mass media,
CPM was a good standard by which to compare the relative
costs for various print media. However, as
markets continue to be segmented into smaller and smaller
segments, the marketing strategies of companies have led to
more and more targeting. TCPM is considered by many to now
be the more relevant relative cost measure.
Nevertheless, there are companies who may still make use of
the CPM measure. Companies that reach very broad audiences,
and those with offerings to a variety of target segments—for
example, automobiles, and furniture stores, CPM may have
more relevance. That is not to say
that these companies do not also employ TCPM, just that the
broader cost comparison may still
be of benefit.
For companies targeting specific markets, such as 18-24 year
olds, males versus females, etc., TCPM will have more
relevance. The question is which medium will most cost
efficiently deliver the message to these segments—as opposed
to the general reading audience.
12.
The chapter discusses some of the many changes taking place in
the media environment. Discuss some of the reasons that
marketers may be shifting advertising dollars to less traditional
media. Does this mean that TV advertising may no longer exist
in the future? (LO2)
Indeed, there are those who are prematurely burying advertising
on TV and other traditional media. They support their argument
on the fact that more and more dollars are being shifted from
TV to nontraditional media (to be discussed in Chapter 13). One
reason for the shift stems from the fact that among younger
demographics, media habits are changing drastically. These
younger groups watch less TV, do not read daily newspapers
(getting their news online), and read more interest magazines
than news magazines. The new consumers want their media on
their schedules, often multitask, and are more pressed for time.
In addition, the proliferation of new media such as iPods,
wireless and others provide the receiver with a number of new
options for receiving communications, while at the same time
providing marketers with a number of new options to reach
them. It would only make sense that dollars are being moved.
At the same time, it is premature to bury TV as an advertising
medium. No other medium reaches broad markets more cost
efficiently. To date, none provide the sight and sound
capabilities to deliver commercials (though the Internet soon
will) and none reach as large an audience. TV also has been
cited as a more relaxing medium—one where one can be
involved while just sitting on the couch and enjoying the
content. It has also been shown to still be the first place that
Internet users go to learn about new products.
The fact is that advertising on TV is on the decline due to a
number of factors (1) less viewership among certain segments;
(2) more targeted media are available; and (3) changing
consumer habits and lifestyles. To say that TV will need to
adapt and change would be correct. To say it is dead is
premature.
13.
As noted in the chapter, there is a trade-off between reach and
frequency for advertisers with a limited budget. Explain what
this means. Under which circumstances would a planner wish to
emphasize reach? Frequency? (LO3)
In an ideal world, advertisers would like to maximize reach and
frequency. Unfortunately, in the real world, they are faced with
budgetary constraints. Given budget limitations, the media
planner is forced to choose between reach and frequency. Given
specific objectives of the plan, one or the other may be
emphasized. Maximizing reach at the expense of frequency is
more logical when the message is simple and easily understood,
the receiver is in the early stages of the response hierarchy (for
example, awareness and/or interest) and the target audience is
broad. For example, campaigns targeting cola users use very
simple messages (Just do it!) and are targeted to a broad
audience. Thus reach is important.
When the consumer is at a higher level in the response
hierarchy, for example, comprehension, retention, etc., or the
message is more complex, and/or the target audience is
narrowly defined, frequency may be a more important objective.
For example, messages that have a lot of copy, and may be more
difficult to comprehend must consider the importance of
effective frequency. One or two exposures may not be enough to
achieve the media objectives. Likewise, a narrowly defined
target market may allow for an emphasis on frequency, and the
minimization of waste coverage, thus placing less emphasis on
reach.
14.
Describe the three methods of promotional scheduling. Give
examples of products and/or services that might employ each
method. (LO3)
The text discusses the various scheduling options available to
the marketer. Given the fact that there are always budgetary
constraints, and that some products/services do not need to be
marketed year round, scheduling allows for more efficient
allocation of advertising and promotional dollars. The
scheduling options available are:
Continuity-- A continuous schedule refers to constant
advertising throughout the year, either daily, weekly or
monthly. Products that would be most likely to employ this
scheduling method include products that would be used
consistently throughout the year with no seasonal variations.
For example, toothpaste, mouthwash, laundry detergent, etc.
Flighting—This schedule has intermittent periods of
advertising, with times when there is advertising and others
when there is none. The “on” advertising time is referred to as
flights. Seasonal products (snow skis), swim wear and other
products primarily consumed at some times of the year but not
all year round would employ this method. Banks have used
flighting, recognizing that consumers are much less involved in
making banking decisions around the holiday season in
November and December. One of the advantages of flighting is
the ability to extend the limited ad budget.
Pulsing—A combination of the previous two methods, pulsing
employs a continuous schedule with periods of increased
advertising to take advantage of intermittent opportunities. A
good example of this is beer advertising, which takes place
continuously, but increases at holiday times, particularly
Memorial Day, The 4th of July and Labor Day.
15.
Figure 10-27 notes some of the advantages and disadvantages
associated with various media options. Referring to Figure 10-
27 provide examples of products and/or services that might
most benefit from the use of each medium. (LO4)
Without repeating the information provided in Figure 10-27, it
is obvious that each medium will have its specific advantages
and disadvantages. Following is a list of products for which
each medium might prove to be an advantage or a disadvantage:
Medium
Advantage
Disadvantage
Television
Mass marketed products, soda,
Targeted products, niche detergents, beer, etc.
products
Radio
Local businesses/services
Visual or targeted products
Magazines
Specialized interest products;
Mass marketed products; equipment, snow skis, etc.
products requiring demos
Newspapers
Local retail; local services
Visual/emotional products
Outdoor
Local stores;attractions;services
Complex products
Direct mail
Targeted products/services
Mass market products
Internet/Interactive
Variety of products/services
New products
16.
The text lists both internal and external factors that might
impact the media strategy. Provide examples of each and
discuss how they might impact the media plan. (LO3)
Both internal and external factors may affect the development
of the media plan. Internal factors include the size of the media
budget, managerial and administrative capabilities or the
organization of the agency. External factors include the
economy, changes in technology, competitive factors, and the
like. The size of the media budget will obviously impact the
number of media vehicles that the buyer can consider.
Obviously, the larger the budget, the more options that can be
considered. Managerial factors may include the number of
employees and the experience and/or expertise that they have
regarding media strategy development. Should there not be
enough managerial talent to develop a media plan, outside
agencies may be required. The organization of the external
agency may also have an impact on the media plan. Larger, IMC
oriented agencies are more likely to be involved with more
media options. Smaller agencies may focus attention of
advertising and/or public relations or other media with which
they feel comfortable.
Changes in the economy may directly impact the media plan. As
the economy improves or recesses, media costs may rise and/or
fall, making some media cost prohibitive. In addition, more
advertisers may result in less media available. Changes in
technology—for example, the advent of cable television and the
Internet—may make more options available to the media
planner. Finally, the competition may also force the planner to
reconsider his/her media strategy. For example, in the business
to business market, having a website is no longer an option, it is
almost a requirement. Companies that do not have a website
may find themselves at a distinct disadvantage, and lose
business to those who do. It has become an expected medium
for buyers to use.
17.
Using the BDI and CDI indices, explain the least desirable
market situation for marketers. Provide an example. Then do the
same for the most desirable situation. (LO1)
The least desirable situation is one in which the BDI and the
CDI are both low. In this situation, there appears to be little
potential for either the category or the brand. For example,
consider typewriters. If they are still marketed at all, the
category is in the decline stage, and any brands would be as
well. No amount of advertising is likely to bring back the
category or the brand.
The most desirable situation is one in which BDI and CDI are
both high. In this case, the category is growing, and the
potential for the brand to grow is high as well. An example
might be PC’s. The use of computers is growing, and new
brands may have the potential to grow as well. The advertiser
would be more likely to be successful by investing in this
situation.
IMC Exercise
Have students access MRI online and examine the profiles and
media usage characteristics for a particular product. Have them
review the indices and to examine them carefully to determine
if they seem logical. Have them present their findings to the
class, describing the media strategy that should be employed to
reach them.
AdForum Exercise: “ Presenting the Message Through Different
Media”
(See Advertising and Promotion Playlist, Chapter 10)
In the chapter it was noted that many companies use a variety of
media to communicate with their target markets. In the playlist
for Chapter 10 are a number of ads for companies that have used
the same message in different media. Review these ads and then
answer the following questions:
1. Do you feel that the message is communicated as well in
different media? For example, do the commercials communicate
better than the print ads?
2. There are a few ads that are shown in both television and the
cinema. Do you think these ads are likely to be equally effective
in both? Explain your answer.
3. Notice in the Peugot commercial there is no sound other than
a tennis match being played in the background. Would the lack
of someone talking make this ad more or less effective?
Access to the chapter playlist is available through
www.mcgrawhillconnect.com
136
10-14
Chapter 10 - Media Planning and Strategy
Chapter 10
MEDIA PLANNING AND STRATEGY
Chapter Overview
Chapter 10 introduces the concepts involved in media planning.
The chapter begins with an overview of media planning by
introducing some key terms and concepts. At this point, the text
points out that media planning is as much an art as it is a
science. A number of problems associated with the planning
process are discussed. The role and purpose of the media plan
follows with a presentation of the steps required in developing
this plan. After an in-depth discussion of the elements of the
media plan, the chapter presents information regarding the use
of computers in the planning process. The characteristics of
various media and sources of media information are presented at
the end of the chapter.
Learning Objectives
1. To understand the key terminology necessary in media
planning.
2. To know how a media plan is developed.
3. To know what constitutes media objectives
4. To know the process of developing and implementing
media strategies.
5. To be familiar with various characteristics of media.
Chapter and Lecture Outline
I.
AN OVERVIEW OF MEDIA PLANNING
This overview presents a brief discussion of the factors
involved in the media planning process and illustrates the fact
that media planning is an involved process influenced by a
variety of factors including the nature of the media, the overall
marketing strategy, and the product or service being advertised.
A.
Basic Terms and Concepts—some of the critical terms necessary
for understanding media planning are presented including:
· media planning—the series of decisions involved in delivering
the message to the target audience
· media plan—the actual document detailing these decisions
· media objectives—the objectives sought by the media plan
· media strategies—the plans of action designed to attain the
media objectives
· medium—the general category of media channels such as
broadcast, print, etc.
· media vehicle—the specific carrier in a media category
(television, magazines, etc.)
· reach—the number of potential audience members exposed
once to a media vehicle in a given period of time
· coverage—the potential audience that might receive a message
through a vehicle
· frequency—the number of times the receiver is exposed to the
media vehicle in a given time period
B.
The Media Plan—the goal of the media plan is to find a
combination of media that will enable the marketer to
communicate the message in the most effective manner possible
at minimum cost. The activities involved in this plan are
detailed in Figure 10-4.
C.
Problems in Media Planning—a number of problems are
identified, each of which directly impacts the planning process.
These include: insufficient information, inconsistent
terminology, time pressures, and problems in measuring
effectiveness. An understanding of these problems is critical to
the proper design of the media plan.
Professor's Notes
II.
DEVELOPING THE MEDIA PLAN
The process of developing the media plan involves a series of
steps (see Figure 10-2). These steps are essentially the same as
those presented in the decision sequence model presented in
Chapter 1, except now they are involved directly with media
decisions. These steps include: market analysis, establishment
of media objectives, media strategy development and
implementation, and evaluation and follow-up.
III.
MARKET ANALYSIS AND TARGET MARKET
IDENTIFICATION
A.
To Whom Should We Advertise? The discussion of target
marketing is reviewed, though now the emphasis is on media,
and some of the sources of information that are available to
assist in making this decision. Secondary sources of information
such as Experian Simmons Market Research, and GfK
Mediamark Research, Inc.(MRI) are described. A brief
discussion of the use of index numbers and their use in
determining target markets is also provided
B.
What Internal and External Factors May Be Operating? As in
the overall situation analysis, both internal and external factors
will directly influence the media decisions. An example of
using secondary sources to gain competitive information is
provided, with an example of LEADING NATIONAL
ADVERTISERS (COMPETITIVE MEDIA REPORTING) data
shown in Figure 10-1.
C. Where to Promote? The decision as to where to promote at
this point involves geographical considerations. Once again, the
discussion turns to the use of secondary information and indices
as aids in making this decision. A number of critical terms are
introduced including: The Survey of Buying Power Index, the
Brand Development Index, andthe Category Development Index.
The calculation of both BDI and CDI is provided, based on
actual examples. Figure 10-11 is a useful way of presenting
strategies evolving around BDI and CDI.
Professor's Notes
IV.
ESTABLISHING MEDIA OBJECTIVES
Media objectives relate to the goals to be attained by the media
program, and as such should be limited to those that can be
accomplished through media strategies. Such objectives are
often expressed in terms of coverage, reach, frequency,
scheduling, etc.
V.
DEVELOPING AND IMPLEMENTING MEDIA STRATEGY
A.
Developing a Media Mix—many media strategies require a
combination of media to be used. The media mix involves the
determination of the various channels to be used. The objectives
of the plan, the budget and other factors, will directly impact
this decision.
B.
Determining Target Market Coverage—Figure 10-13 provides a
graphic illustration of market coverage possibilities. Of course,
the marketer would like to achieve full coverage through a
combination of media. As noted, this is not a likely outcome,
and decisions have to be made that involve trade-offs between
less than full market coverage and over coverage or waste
coverage.
C.
Determining Geographic Coverage—The strategy of
geographical weighting, in which geographic areas receive
differential amounts of media emphasis, is discussed.
D.
Scheduling—Because it may not be feasible (or necessary) to
maintain a constant advertising schedule, marketers will
typically employ one of three scheduling alternatives:
1.
Continuity refers to a continuous pattern of advertising—that is
every day, week, or month (food products, laundry detergents,
etc.)
2.
Flighting is a scheduling method in which there are intermittent
periods of advertising and nonadvertising (snow skis, etc.)
3.
Pulsing is actually a combination of the two previous methods,
in which a continuous schedule is used, though the amount of
monies spent will vary throughout the time period (beer).
E.
Reach versus Frequency—Given that advertisers have differing
objectives, and are constrained by budgets, the media decision
usually involves a trade-off between reach and frequency. This
decision is essentially one of exposing more persons to the ad,
or exposing fewer persons more often. In making this decision,
the media planner must take into consideration a number of
factors involving reach and frequency including:
1.
The determination of what levels of reach and frequency are
needed
2.
The establishment of reach and frequency objectives
3.
Using gross ratings points (GRP's)
4.
The determination of effective reach (the percent of the
audience reached at each effective frequency increment)
F.
Creative Aspects and Mood—Creative aspects of the ad may
require the use of specific media. For example, television may
be required to implement certain types of creative campaigns.
Likewise, the mood that a medium creates may carry over to the
ad itself. For example, certain magazines may create various
moods as they are being read.
G.
Flexibility—the media strategy must be flexible enough to
respond to marketing threats and opportunities, as well as to
adjust for changes regarding availability and/or in the media
themselves. Flexibility may need to address the following:
· market opportunities
· market threats
· availability of media
· changes in media or media vehicles
H.
Budget Considerations—it is obvious that costs must be
considered in the determination as to which media will be
employed. Two types of costs must be addressed—absolute
cost—which is the actual cost to place the ad in the medium—
and relative cost—or the relationship between the price paid for
advertising time or space and the size of the audience delivered.
A comparison of media vehicles is usually necessary, using
criteria such as cost per thousand (CPM), cost per ratings point
(CPRP), and readers per copy. (Each of these is explained in
detail in the text.)
Professor's Notes
VI.
EVALUATION AND FOLLOW-UP
As with other elements of the advertising/promotional program,
the media program also requires evaluation to determine its
effectiveness. Essentially, two questions need to be answered:
(1) How well did these strategies perform the media objectives
established; and (2) How well did this media plan contribute to
the attainment of the overall marketing and communications
objectives?
VIII.
CHARACTERISTICS OF MEDIA
There are a number of sources of information available which
define the various advantages and disadvantages of media.
Figure 10-27 lists the major media, and the characteristics of
each.
APPENDIX A
Appendix A provides an example of a media flow chart of Asics
shoes.
Professors Notes
Teaching Suggestions
Both the length and complexity of this chapter make it a
difficult one for students to comprehend. The chapter contains a
large number of terms, definitions, and formulas. Unfortunately,
there is no way to ignore all of these, as they are critical to the
students' learning of media planning and strategy, and are the
"buzzwords" with which they will need to become familiar to
participate in the advertising world, regardless of which side of
the buying-selling process they may be on. One suggestion is to
break the chapter into two lectures. In the first, the terms,
formulas, etc., as well as an overview of the planning process
can be discussed. The second lecture can be more specific,
focusing on some of the objectives to be accomplished,
discussing reach and frequency trade-offs, effective reach, and
the like.
Answers to Discussion Questions
1. One well known media planner has noted that media buying
is a combination of art and science with a definite bias toward
art. Explain what this means and give examples of
circumstances or situations in which this might be the case.
(LO4)
Marketers have a wealth of information available to them for
their use in media planning. Besides those provided by
syndicated services like Simmons and MRI, the media
themselves provide valuable information. There are also
computerized media buying software programs, ratings services
and primary research companies that may be employed.
At the same time, all information cannot be quantified. What
might be referred to as ”local knowledge”, or information that
one just knows, often enters into the picture. For example,
media buyers know there is a difference between weekly and
monthly magazines (the latter stays around longer, leading to a
higher potential for reach and frequency), location in the
medium (page placement, within TV shows, etc) and the
editorial perspective may all have an effect.
As an example, in one market, the sports anchor was loved by
many and hated by an equal amount of viewers. Local buyers
knew that many viewers would switch to another channel when
the sports came on (often switching back when it was over).
While a very careful analysis of the TV ratings may have
revealed this, to those familiar with this scenario, the “art” of
media buying was invaluable.
2. GfK MRI and Experian Simmons both provide indexes to
describe profiles of product users. Using the index provided in
Figure 10-5, describe the profile of the energy drink user. Who
is least likely to drink this product? (LO2)
Using the index, as the number exceeds 100, the potential for
use increases. As shown in Figure 10-5, the profile of the
energy drink user is:
Education:
did not graduate high school (122); attended college (116); no
college (103)
Age:
18-24 (225); 25-34 (160); 35-44 (112)
Sex:
male
Occupation:
construction and maintenance (170); sales and office
occupations (123);
other (132)
Income:
$60,000-74,999 (109); $30,000-39,999 (109); $50,000-59,999
(105)
The nonuser can best be described as a :
65+ year old, with a post graduate degree, employed in a
business management profession with household income
of $150,000+.
3. What does it mean for a company when they discover that
their product has a High BDI but low CDI? What about a low
CDI and Low BDI? (LO2)
High BDI; low CDI:
The product category is not selling well, but the brand is.
Probably a
good market to advertise in, but should be monitored for
declining sales.
Low CDI; low BDI
Both the product category and the brand are doing poorly; not
likely
to be a good place for advertising
Low CDI; low BDI
Both the product and the category are not doing well. Probably
not a
good market in which to advertise.
4. As the media landscape continues to change, and advertisers
shift more and more of their monies into new media, there are
those who predict that some traditional media like TV and
newspapers may not survive—at least in their present forms.
Discuss whether you think this is an accurate statement and why
or why not. (LO5).
There is no question that companies have shifted their
advertising dollars from traditional media to nontraditional
media. It is also true that some traditional media are in
trouble—particularly newspapers and magazines—as advertisers
have become enamored with the new media opportunities. A few
years ago, some of the largest traditional advertisers like P&G
and American Express made a major point of the fact that they
were moving away from traditional media. In 2010, for the first
time in a very long time, P & G did not advertise on the Super
Bowl, using the money in new media. Many others have
followed a similar path.
However, there are indications that there may be changes taking
place in the thinking of these large organizations. P & G
announced that it will return to the Super Bowl in 2011, as has
BMW. Others almost certainly will follow. Much of this may be
attributed to the importance of IMC, and research supporting
the value of traditional media. Numerous studies have shown
that for the achievement of certain objectives—particularly
those at the top of the consumer funnel—traditional media like
TV have much to offer. These studies demonstrate that
traditional media drive consumers to the Internet, and that
magazines remain effective to special interest groups.
Whether or not traditional media will survive is another matter,
as many are already in trouble, and have lost significant
advertising revenues. However, recent articles have
demonstrated a new found interest in TV, and specialty
magazines are thriving (as is direct marketing, and outdoor).
5. Some media claim that advertisers should focus more
attention to Readers per Dollar than CPM as a relative cost
figure. Explain why they feel this way, and discuss some of the
advantages and disadvantages with the use of both of these
measures. (LO2).
The discussion in the text covers the topics of CPM and readers
per dollar quite effectively. The basis for this differentiation is
simple—how many people are being reached by the medium for
a given cost? CPM refers to the relative cost for reaching an
audience based on the cost of ad space divided by the
circulation. As the text notes, this figure can over estimate or
underestimate the relative cost.
Readers per dollar incorporates an additional figure—pass along
rate. The proponents of using this measure argue that many
magazines are read by more than one person (e.g., passed
along), and that by using the CPM figure one underestimates
potential exposures. They cite examples like Sports Illustrated,
or Time or Newsweek noting that more than one family member
may read each issue (these are just a few examples of such
media), and that a more accurate figure would include these
additional readers. Some magazines may even provide their
measures of pass along readership.
The problem with determining readers per dollar lies in the
determination of pass along. While marketers know intuitively
that magazines are passed along, making a specific
determination as to the number of times is extremely difficult
and often unreliable. Thus, most marketers do not calculate cost
efficiencies on these numbers. Perhaps the best solution is a
compromise—which is what many marketers do. They use the
CPM figure as the base calculation, taking into consideration
that many magazines are read by more that one person. In a
sense, these extra readers are bonus readers. As you can see,
using CPM and readers per dollar is truly a combination of art
and science!
6. What is meant by engagement (in media terms)? Explain the
relevance of engagement to media planners. (LO1)
The term engagement is nothing new to media planners, and has
been discussed for the past few years but with still no
agreement as to exactly what it means. The reason for such
attention stems from the fact that current metrics like CPM and
CPP, etc., while still useful, are considered insufficient for
today’s media planners.
For the most part, engagement refers to the degree of
involvement the viewer demonstrates with the message. Others
have also considered relevance, intent, etc.. The basic concept
is that more involved readers, watchers, and/or users will be
more interested in the communication than will those merely
exposed. For example, if I am in the market for a car, I may
spend more time “engaged” with the ad. On the internet, if I
spend more time on a page, I may be considered as more
engaged.
While certainly relevant, engagement has not yet shown to be as
important as one might expect. While some research studies
show that engaged viewers may demonstrate higher recall and
like the ad better, as well as take some behavioral action after
exposure to the ad, skeptics say “so what”? They argue that
engagement may be explained by mere involvement with the
product or service category, and of course involved consumers
would be more inclined to reflect the same results. They argue
that engagement is nothing new.
Whether it is engagement or involvement, or relevance, all of
these terms reflect more interest in the ad is likely to occur.
While this is certainly an advantage over mere exposure, it does
not mean that engagement has provided some major
breakthrough.
7.
A criticism of the current rating system for TV is that the
numbers are based on sweeps periods. Some argue that a more
accurate picture is provided by the meter system. Discuss some
of the advantages and disadvantages of each method. (LO1)
Television audience measurements are taken on a daily basis,
however, the measures used to determine advertising rates are
taken only four times a year--February, May, July and
November. These four data collection periods are referred to as
sweeps periods.
Data collection during sweeps may result in inaccuracies for a
number of reasons:
· the networks schedule more interesting programs during
sweeps
· the networks and individual stations run more promotions
during sweeps periods
· the viewing audience may actually be aware of sweeps, and as
a result "vote" with their viewing habits
All of the above may lead to an overestimation of audience size
that is then generalized to succeeding non-sweeps periods.
The summer sweeps period is often discounted by the industry.
Because television viewing is less in summer months and re-
runs are often shown, the number of persons watching is less.
Station and network programs designed to increase these
numbers are less effective. As a result, the data is often ignored
or downplayed.
If there is an advantage to sweeps, it accrues to the television
stations whose fees will reflect the higher ratings that are likely
to result from the sweeps periods.
8.
Some marketers estimate that the average consumer may be
exposed to as many as 3,000 ads per day. Current estimates of
effective frequency are based on 1,500 exposures per day.
Discuss how, if at all, more exposures to advertising may
necessitate changes in effective frequency.
First, let’s realize that the number of exposures to ads is a very
difficult figure to derive. While estimates now are supposed to
be in the 3,000 area, there are those who believe that the
number may be more like 4,000. Nevertheless, it is safe to
recognize that the number of exposures has significantly
increased over the past few years.
It is also important to note that the concept of effective
frequency was originated in the early 1970’s, which would seem
to make it is necessary for updating. Certainly, the number of
exposures at that time would be far less.
Based on the assumption that consumers are now exposed to
many more ads, one must believe that the level of effective
frequency may have to change. The sheer amount of clutter and
over exposure to ads would seem to indicate that it would be
necessary to increase this number. Some media experts have
suggested at least to 10-12, but offer no empirical support for
these numbers.
While there is no definitive answer to this new level, it would
seem logical that the sheer amount of exposure might make
processing more difficult, leading to a need to determine
whether or not this number is still accurate.
9. Some business to business advertisers (for example, copy
machine companies) advertise on NFL Sunday and/or Monday
Night football games. As might be expected, such a buy would
lead to a high level of waste coverage. Explain what is meant by
waste coverage. Discuss whether this might or might not be a
good media buy. (LO3)
Waste coverage refers to overexposure, in which the media
coverage exceeds the target audience. If the media reaches
people who are not sought as buyers and are not potential users,
then it is potentially wasted, and of little or no value to the
marketer.
At first glance, an ad for a copy machine that is used in
business markets (as opposed to home use) may seem like a lot
of money. How many of those people watching a pro football
game are now, or ever will be, in the market for purchasing
such an expensive machine? In fact, it may not be such a bad
buy after all. While there certainly will be a large amount of
waste coverage, many marketers are willing to live with that
fact due to the fact that to reach the same amount of members of
the target audience through more targeted media might be even
more expensive. In other words buying ads in Office
Management magazine and other business related periodicals
may actually cost more than the television ad to reach the same
amount of people. Thus the large waste coverage is acceptable.
In addition, one never knows when new buyers may enter the
market, and the exposure would not hurt. Finally, word of
mouth, or reaching influencers or users, (not necessarily buyers)
may also be of value.
10.
Explain what is meant by BDI and CDI. How do advertisers use
these indices in their media planning? (LO1)
Pages 338-341 discuss BDI and CDI. BDI compares the
percentage of the brand's total US sales in a given market area
with the percentage of the total population in the market. The
resulting BDI indicates the sales potential for that brand in that
market area. CDI provides information on the potential for
development of the total product category rather than specific
brands.
Figures 10-9,10-10 and 10-11 provide an excellent summary of
how BDI and CDI can be calculated and used to develop
marketing strategies. The use of these indices provides
marketers with insights into the market potential for the product
or brand. This, in turn, provides information regarding the
amount of media emphasis, weighting, etc. to be allocated.
Additional discussion questions (not in the text).
11. Explain the differences between CPM and TCPM. Give
examples of a company or product that
might select one of the methods versus the other. (LO1)
As products and brands become more and more targeted, the use
of CPM has been on the decline. As you can imagine, years ago
with less market differentiation and more use of mass media,
CPM was a good standard by which to compare the relative
costs for various print media. However, as
markets continue to be segmented into smaller and smaller
segments, the marketing strategies of companies have led to
more and more targeting. TCPM is considered by many to now
be the more relevant relative cost measure.
Nevertheless, there are companies who may still make use of
the CPM measure. Companies that reach very broad audiences,
and those with offerings to a variety of target segments—for
example, automobiles, and furniture stores, CPM may have
more relevance. That is not to say
that these companies do not also employ TCPM, just that the
broader cost comparison may still
be of benefit.
For companies targeting specific markets, such as 18-24 year
olds, males versus females, etc., TCPM will have more
relevance. The question is which medium will most cost
efficiently deliver the message to these segments—as opposed
to the general reading audience.
12.
The chapter discusses some of the many changes taking place in
the media environment. Discuss some of the reasons that
marketers may be shifting advertising dollars to less traditional
media. Does this mean that TV advertising may no longer exist
in the future? (LO2)
Indeed, there are those who are prematurely burying advertising
on TV and other traditional media. They support their argument
on the fact that more and more dollars are being shifted from
TV to nontraditional media (to be discussed in Chapter 13). One
reason for the shift stems from the fact that among younger
demographics, media habits are changing drastically. These
younger groups watch less TV, do not read daily newspapers
(getting their news online), and read more interest magazines
than news magazines. The new consumers want their media on
their schedules, often multitask, and are more pressed for time.
In addition, the proliferation of new media such as iPods,
wireless and others provide the receiver with a number of new
options for receiving communications, while at the same time
providing marketers with a number of new options to reach
them. It would only make sense that dollars are being moved.
At the same time, it is premature to bury TV as an advertising
medium. No other medium reaches broad markets more cost
efficiently. To date, none provide the sight and sound
capabilities to deliver commercials (though the Internet soon
will) and none reach as large an audience. TV also has been
cited as a more relaxing medium—one where one can be
involved while just sitting on the couch and enjoying the
content. It has also been shown to still be the first place that
Internet users go to learn about new products.
The fact is that advertising on TV is on the decline due to a
number of factors (1) less viewership among certain segments;
(2) more targeted media are available; and (3) changing
consumer habits and lifestyles. To say that TV will need to
adapt and change would be correct. To say it is dead is
premature.
13.
As noted in the chapter, there is a trade-off between reach and
frequency for advertisers with a limited budget. Explain what
this means. Under which circumstances would a planner wish to
emphasize reach? Frequency? (LO3)
In an ideal world, advertisers would like to maximize reach and
frequency. Unfortunately, in the real world, they are faced with
budgetary constraints. Given budget limitations, the media
planner is forced to choose between reach and frequency. Given
specific objectives of the plan, one or the other may be
emphasized. Maximizing reach at the expense of frequency is
more logical when the message is simple and easily understood,
the receiver is in the early stages of the response hierarchy (for
example, awareness and/or interest) and the target audience is
broad. For example, campaigns targeting cola users use very
simple messages (Just do it!) and are targeted to a broad
audience. Thus reach is important.
When the consumer is at a higher level in the response
hierarchy, for example, comprehension, retention, etc., or the
message is more complex, and/or the target audience is
narrowly defined, frequency may be a more important objective.
For example, messages that have a lot of copy, and may be more
difficult to comprehend must consider the importance of
effective frequency. One or two exposures may not be enough to
achieve the media objectives. Likewise, a narrowly defined
target market may allow for an emphasis on frequency, and the
minimization of waste coverage, thus placing less emphasis on
reach.
14.
Describe the three methods of promotional scheduling. Give
examples of products and/or services that might employ each
method. (LO3)
The text discusses the various scheduling options available to
the marketer. Given the fact that there are always budgetary
constraints, and that some products/services do not need to be
marketed year round, scheduling allows for more efficient
allocation of advertising and promotional dollars. The
scheduling options available are:
Continuity-- A continuous schedule refers to constant
advertising throughout the year, either daily, weekly or
monthly. Products that would be most likely to employ this
scheduling method include products that would be used
consistently throughout the year with no seasonal variations.
For example, toothpaste, mouthwash, laundry detergent, etc.
Flighting—This schedule has intermittent periods of
advertising, with times when there is advertising and others
when there is none. The “on” advertising time is referred to as
flights. Seasonal products (snow skis), swim wear and other
products primarily consumed at some times of the year but not
all year round would employ this method. Banks have used
flighting, recognizing that consumers are much less involved in
making banking decisions around the holiday season in
November and December. One of the advantages of flighting is
the ability to extend the limited ad budget.
Pulsing—A combination of the previous two methods, pulsing
employs a continuous schedule with periods of increased
advertising to take advantage of intermittent opportunities. A
good example of this is beer advertising, which takes place
continuously, but increases at holiday times, particularly
Memorial Day, The 4th of July and Labor Day.
15.
Figure 10-27 notes some of the advantages and disadvantages
associated with various media options. Referring to Figure 10-
27 provide examples of products and/or services that might
most benefit from the use of each medium. (LO4)
Without repeating the information provided in Figure 10-27, it
is obvious that each medium will have its specific advantages
and disadvantages. Following is a list of products for which
each medium might prove to be an advantage or a disadvantage:
Medium
Advantage
Disadvantage
Television
Mass marketed products, soda,
Targeted products, niche detergents, beer, etc.
products
Radio
Local businesses/services
Visual or targeted products
Magazines
Specialized interest products;
Mass marketed products; equipment, snow skis, etc.
products requiring demos
Newspapers
Local retail; local services
Visual/emotional products
Outdoor
Local stores;attractions;services
Complex products
Direct mail
Targeted products/services
Mass market products
Internet/Interactive
Variety of products/services
New products
16.
The text lists both internal and external factors that might
impact the media strategy. Provide examples of each and
discuss how they might impact the media plan. (LO3)
Both internal and external factors may affect the development
of the media plan. Internal factors include the size of the media
budget, managerial and administrative capabilities or the
organization of the agency. External factors include the
economy, changes in technology, competitive factors, and the
like. The size of the media budget will obviously impact the
number of media vehicles that the buyer can consider.
Obviously, the larger the budget, the more options that can be
considered. Managerial factors may include the number of
employees and the experience and/or expertise that they have
regarding media strategy development. Should there not be
enough managerial talent to develop a media plan, outside
agencies may be required. The organization of the external
agency may also have an impact on the media plan. Larger, IMC
oriented agencies are more likely to be involved with more
media options. Smaller agencies may focus attention of
advertising and/or public relations or other media with which
they feel comfortable.
Changes in the economy may directly impact the media plan. As
the economy improves or recesses, media costs may rise and/or
fall, making some media cost prohibitive. In addition, more
advertisers may result in less media available. Changes in
technology—for example, the advent of cable television and the
Internet—may make more options available to the media
planner. Finally, the competition may also force the planner to
reconsider his/her media strategy. For example, in the business
to business market, having a website is no longer an option, it is
almost a requirement. Companies that do not have a website
may find themselves at a distinct disadvantage, and lose
business to those who do. It has become an expected medium
for buyers to use.
17.
Using the BDI and CDI indices, explain the least desirable
market situation for marketers. Provide an example. Then do the
same for the most desirable situation. (LO1)
The least desirable situation is one in which the BDI and the
CDI are both low. In this situation, there appears to be little
potential for either the category or the brand. For example,
consider typewriters. If they are still marketed at all, the
category is in the decline stage, and any brands would be as
well. No amount of advertising is likely to bring back the
category or the brand.
The most desirable situation is one in which BDI and CDI are
both high. In this case, the category is growing, and the
potential for the brand to grow is high as well. An example
might be PC’s. The use of computers is growing, and new
brands may have the potential to grow as well. The advertiser
would be more likely to be successful by investing in this
situation.
IMC Exercise
Have students access MRI online and examine the profiles and
media usage characteristics for a particular product. Have them
review the indices and to examine them carefully to determine
if they seem logical. Have them present their findings to the
class, describing the media strategy that should be employed to
reach them.
AdForum Exercise: “ Presenting the Message Through Different
Media”
(See Advertising and Promotion Playlist, Chapter 10)
In the chapter it was noted that many companies use a variety of
media to communicate with their target markets. In the playlist
for Chapter 10 are a number of ads for companies that have used
the same message in different media. Review these ads and then
answer the following questions:
1. Do you feel that the message is communicated as well in
different media? For example, do the commercials communicate
better than the print ads?
2. There are a few ads that are shown in both television and the
cinema. Do you think these ads are likely to be equally effective
in both? Explain your answer.
3. Notice in the Peugot commercial there is no sound other than
a tennis match being played in the background. Would the lack
of someone talking make this ad more or less effective?
Access to the chapter playlist is available through
www.mcgrawhillconnect.com
136
10-14

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Chapter 10 - Media Planning and StrategyChapter 10MEDIA .docx

  • 1. Chapter 10 - Media Planning and Strategy Chapter 10 MEDIA PLANNING AND STRATEGY Chapter Overview Chapter 10 introduces the concepts involved in media planning. The chapter begins with an overview of media planning by introducing some key terms and concepts. At this point, the text points out that media planning is as much an art as it is a science. A number of problems associated with the planning process are discussed. The role and purpose of the media plan follows with a presentation of the steps required in developing this plan. After an in-depth discussion of the elements of the media plan, the chapter presents information regarding the use of computers in the planning process. The characteristics of various media and sources of media information are presented at the end of the chapter. Learning Objectives 1. To understand the key terminology necessary in media planning. 2. To know how a media plan is developed. 3. To know what constitutes media objectives 4. To know the process of developing and implementing media strategies. 5. To be familiar with various characteristics of media. Chapter and Lecture Outline I.
  • 2. AN OVERVIEW OF MEDIA PLANNING This overview presents a brief discussion of the factors involved in the media planning process and illustrates the fact that media planning is an involved process influenced by a variety of factors including the nature of the media, the overall marketing strategy, and the product or service being advertised. A. Basic Terms and Concepts—some of the critical terms necessary for understanding media planning are presented including: · media planning—the series of decisions involved in delivering the message to the target audience · media plan—the actual document detailing these decisions · media objectives—the objectives sought by the media plan · media strategies—the plans of action designed to attain the media objectives · medium—the general category of media channels such as broadcast, print, etc. · media vehicle—the specific carrier in a media category (television, magazines, etc.) · reach—the number of potential audience members exposed once to a media vehicle in a given period of time · coverage—the potential audience that might receive a message through a vehicle · frequency—the number of times the receiver is exposed to the media vehicle in a given time period
  • 3. B. The Media Plan—the goal of the media plan is to find a combination of media that will enable the marketer to communicate the message in the most effective manner possible at minimum cost. The activities involved in this plan are detailed in Figure 10-4. C. Problems in Media Planning—a number of problems are identified, each of which directly impacts the planning process. These include: insufficient information, inconsistent terminology, time pressures, and problems in measuring effectiveness. An understanding of these problems is critical to the proper design of the media plan. Professor's Notes II. DEVELOPING THE MEDIA PLAN The process of developing the media plan involves a series of steps (see Figure 10-2). These steps are essentially the same as those presented in the decision sequence model presented in Chapter 1, except now they are involved directly with media decisions. These steps include: market analysis, establishment of media objectives, media strategy development and implementation, and evaluation and follow-up. III. MARKET ANALYSIS AND TARGET MARKET IDENTIFICATION A. To Whom Should We Advertise? The discussion of target marketing is reviewed, though now the emphasis is on media, and some of the sources of information that are available to assist in making this decision. Secondary sources of information
  • 4. such as Experian Simmons Market Research, and GfK Mediamark Research, Inc.(MRI) are described. A brief discussion of the use of index numbers and their use in determining target markets is also provided B. What Internal and External Factors May Be Operating? As in the overall situation analysis, both internal and external factors will directly influence the media decisions. An example of using secondary sources to gain competitive information is provided, with an example of LEADING NATIONAL ADVERTISERS (COMPETITIVE MEDIA REPORTING) data shown in Figure 10-1. C. Where to Promote? The decision as to where to promote at this point involves geographical considerations. Once again, the discussion turns to the use of secondary information and indices as aids in making this decision. A number of critical terms are introduced including: The Survey of Buying Power Index, the Brand Development Index, andthe Category Development Index. The calculation of both BDI and CDI is provided, based on actual examples. Figure 10-11 is a useful way of presenting strategies evolving around BDI and CDI. Professor's Notes IV. ESTABLISHING MEDIA OBJECTIVES Media objectives relate to the goals to be attained by the media program, and as such should be limited to those that can be accomplished through media strategies. Such objectives are often expressed in terms of coverage, reach, frequency, scheduling, etc. V. DEVELOPING AND IMPLEMENTING MEDIA STRATEGY
  • 5. A. Developing a Media Mix—many media strategies require a combination of media to be used. The media mix involves the determination of the various channels to be used. The objectives of the plan, the budget and other factors, will directly impact this decision. B. Determining Target Market Coverage—Figure 10-13 provides a graphic illustration of market coverage possibilities. Of course, the marketer would like to achieve full coverage through a combination of media. As noted, this is not a likely outcome, and decisions have to be made that involve trade-offs between less than full market coverage and over coverage or waste coverage. C. Determining Geographic Coverage—The strategy of geographical weighting, in which geographic areas receive differential amounts of media emphasis, is discussed. D. Scheduling—Because it may not be feasible (or necessary) to maintain a constant advertising schedule, marketers will typically employ one of three scheduling alternatives: 1. Continuity refers to a continuous pattern of advertising—that is every day, week, or month (food products, laundry detergents, etc.) 2. Flighting is a scheduling method in which there are intermittent periods of advertising and nonadvertising (snow skis, etc.)
  • 6. 3. Pulsing is actually a combination of the two previous methods, in which a continuous schedule is used, though the amount of monies spent will vary throughout the time period (beer). E. Reach versus Frequency—Given that advertisers have differing objectives, and are constrained by budgets, the media decision usually involves a trade-off between reach and frequency. This decision is essentially one of exposing more persons to the ad, or exposing fewer persons more often. In making this decision, the media planner must take into consideration a number of factors involving reach and frequency including: 1. The determination of what levels of reach and frequency are needed 2. The establishment of reach and frequency objectives 3. Using gross ratings points (GRP's) 4. The determination of effective reach (the percent of the audience reached at each effective frequency increment) F. Creative Aspects and Mood—Creative aspects of the ad may require the use of specific media. For example, television may be required to implement certain types of creative campaigns. Likewise, the mood that a medium creates may carry over to the ad itself. For example, certain magazines may create various moods as they are being read.
  • 7. G. Flexibility—the media strategy must be flexible enough to respond to marketing threats and opportunities, as well as to adjust for changes regarding availability and/or in the media themselves. Flexibility may need to address the following: · market opportunities · market threats · availability of media · changes in media or media vehicles H. Budget Considerations—it is obvious that costs must be considered in the determination as to which media will be employed. Two types of costs must be addressed—absolute cost—which is the actual cost to place the ad in the medium— and relative cost—or the relationship between the price paid for advertising time or space and the size of the audience delivered. A comparison of media vehicles is usually necessary, using criteria such as cost per thousand (CPM), cost per ratings point (CPRP), and readers per copy. (Each of these is explained in detail in the text.) Professor's Notes VI. EVALUATION AND FOLLOW-UP As with other elements of the advertising/promotional program, the media program also requires evaluation to determine its effectiveness. Essentially, two questions need to be answered: (1) How well did these strategies perform the media objectives established; and (2) How well did this media plan contribute to the attainment of the overall marketing and communications
  • 8. objectives? VIII. CHARACTERISTICS OF MEDIA There are a number of sources of information available which define the various advantages and disadvantages of media. Figure 10-27 lists the major media, and the characteristics of each. APPENDIX A Appendix A provides an example of a media flow chart of Asics shoes. Professors Notes Teaching Suggestions Both the length and complexity of this chapter make it a difficult one for students to comprehend. The chapter contains a large number of terms, definitions, and formulas. Unfortunately, there is no way to ignore all of these, as they are critical to the students' learning of media planning and strategy, and are the "buzzwords" with which they will need to become familiar to participate in the advertising world, regardless of which side of the buying-selling process they may be on. One suggestion is to break the chapter into two lectures. In the first, the terms, formulas, etc., as well as an overview of the planning process can be discussed. The second lecture can be more specific, focusing on some of the objectives to be accomplished, discussing reach and frequency trade-offs, effective reach, and the like. Answers to Discussion Questions 1. One well known media planner has noted that media buying is a combination of art and science with a definite bias toward
  • 9. art. Explain what this means and give examples of circumstances or situations in which this might be the case. (LO4) Marketers have a wealth of information available to them for their use in media planning. Besides those provided by syndicated services like Simmons and MRI, the media themselves provide valuable information. There are also computerized media buying software programs, ratings services and primary research companies that may be employed. At the same time, all information cannot be quantified. What might be referred to as ”local knowledge”, or information that one just knows, often enters into the picture. For example, media buyers know there is a difference between weekly and monthly magazines (the latter stays around longer, leading to a higher potential for reach and frequency), location in the medium (page placement, within TV shows, etc) and the editorial perspective may all have an effect. As an example, in one market, the sports anchor was loved by many and hated by an equal amount of viewers. Local buyers knew that many viewers would switch to another channel when the sports came on (often switching back when it was over). While a very careful analysis of the TV ratings may have revealed this, to those familiar with this scenario, the “art” of media buying was invaluable. 2. GfK MRI and Experian Simmons both provide indexes to describe profiles of product users. Using the index provided in Figure 10-5, describe the profile of the energy drink user. Who is least likely to drink this product? (LO2)
  • 10. Using the index, as the number exceeds 100, the potential for use increases. As shown in Figure 10-5, the profile of the energy drink user is: Education: did not graduate high school (122); attended college (116); no college (103) Age: 18-24 (225); 25-34 (160); 35-44 (112) Sex: male Occupation: construction and maintenance (170); sales and office occupations (123); other (132)
  • 11. Income: $60,000-74,999 (109); $30,000-39,999 (109); $50,000-59,999 (105) The nonuser can best be described as a : 65+ year old, with a post graduate degree, employed in a business management profession with household income of $150,000+. 3. What does it mean for a company when they discover that their product has a High BDI but low CDI? What about a low CDI and Low BDI? (LO2) High BDI; low CDI: The product category is not selling well, but the brand is. Probably a good market to advertise in, but should be monitored for declining sales.
  • 12. Low CDI; low BDI Both the product category and the brand are doing poorly; not likely to be a good place for advertising Low CDI; low BDI Both the product and the category are not doing well. Probably not a good market in which to advertise. 4. As the media landscape continues to change, and advertisers shift more and more of their monies into new media, there are those who predict that some traditional media like TV and newspapers may not survive—at least in their present forms. Discuss whether you think this is an accurate statement and why or why not. (LO5). There is no question that companies have shifted their advertising dollars from traditional media to nontraditional media. It is also true that some traditional media are in trouble—particularly newspapers and magazines—as advertisers have become enamored with the new media opportunities. A few years ago, some of the largest traditional advertisers like P&G
  • 13. and American Express made a major point of the fact that they were moving away from traditional media. In 2010, for the first time in a very long time, P & G did not advertise on the Super Bowl, using the money in new media. Many others have followed a similar path. However, there are indications that there may be changes taking place in the thinking of these large organizations. P & G announced that it will return to the Super Bowl in 2011, as has BMW. Others almost certainly will follow. Much of this may be attributed to the importance of IMC, and research supporting the value of traditional media. Numerous studies have shown that for the achievement of certain objectives—particularly those at the top of the consumer funnel—traditional media like TV have much to offer. These studies demonstrate that traditional media drive consumers to the Internet, and that magazines remain effective to special interest groups. Whether or not traditional media will survive is another matter, as many are already in trouble, and have lost significant advertising revenues. However, recent articles have demonstrated a new found interest in TV, and specialty magazines are thriving (as is direct marketing, and outdoor). 5. Some media claim that advertisers should focus more attention to Readers per Dollar than CPM as a relative cost figure. Explain why they feel this way, and discuss some of the advantages and disadvantages with the use of both of these measures. (LO2). The discussion in the text covers the topics of CPM and readers per dollar quite effectively. The basis for this differentiation is simple—how many people are being reached by the medium for
  • 14. a given cost? CPM refers to the relative cost for reaching an audience based on the cost of ad space divided by the circulation. As the text notes, this figure can over estimate or underestimate the relative cost. Readers per dollar incorporates an additional figure—pass along rate. The proponents of using this measure argue that many magazines are read by more than one person (e.g., passed along), and that by using the CPM figure one underestimates potential exposures. They cite examples like Sports Illustrated, or Time or Newsweek noting that more than one family member may read each issue (these are just a few examples of such media), and that a more accurate figure would include these additional readers. Some magazines may even provide their measures of pass along readership. The problem with determining readers per dollar lies in the determination of pass along. While marketers know intuitively that magazines are passed along, making a specific determination as to the number of times is extremely difficult and often unreliable. Thus, most marketers do not calculate cost efficiencies on these numbers. Perhaps the best solution is a compromise—which is what many marketers do. They use the CPM figure as the base calculation, taking into consideration that many magazines are read by more that one person. In a sense, these extra readers are bonus readers. As you can see, using CPM and readers per dollar is truly a combination of art and science! 6. What is meant by engagement (in media terms)? Explain the relevance of engagement to media planners. (LO1) The term engagement is nothing new to media planners, and has been discussed for the past few years but with still no agreement as to exactly what it means. The reason for such
  • 15. attention stems from the fact that current metrics like CPM and CPP, etc., while still useful, are considered insufficient for today’s media planners. For the most part, engagement refers to the degree of involvement the viewer demonstrates with the message. Others have also considered relevance, intent, etc.. The basic concept is that more involved readers, watchers, and/or users will be more interested in the communication than will those merely exposed. For example, if I am in the market for a car, I may spend more time “engaged” with the ad. On the internet, if I spend more time on a page, I may be considered as more engaged. While certainly relevant, engagement has not yet shown to be as important as one might expect. While some research studies show that engaged viewers may demonstrate higher recall and like the ad better, as well as take some behavioral action after exposure to the ad, skeptics say “so what”? They argue that engagement may be explained by mere involvement with the product or service category, and of course involved consumers would be more inclined to reflect the same results. They argue that engagement is nothing new. Whether it is engagement or involvement, or relevance, all of these terms reflect more interest in the ad is likely to occur. While this is certainly an advantage over mere exposure, it does not mean that engagement has provided some major breakthrough. 7. A criticism of the current rating system for TV is that the numbers are based on sweeps periods. Some argue that a more accurate picture is provided by the meter system. Discuss some of the advantages and disadvantages of each method. (LO1)
  • 16. Television audience measurements are taken on a daily basis, however, the measures used to determine advertising rates are taken only four times a year--February, May, July and November. These four data collection periods are referred to as sweeps periods. Data collection during sweeps may result in inaccuracies for a number of reasons: · the networks schedule more interesting programs during sweeps · the networks and individual stations run more promotions during sweeps periods · the viewing audience may actually be aware of sweeps, and as a result "vote" with their viewing habits All of the above may lead to an overestimation of audience size that is then generalized to succeeding non-sweeps periods. The summer sweeps period is often discounted by the industry. Because television viewing is less in summer months and re- runs are often shown, the number of persons watching is less. Station and network programs designed to increase these numbers are less effective. As a result, the data is often ignored or downplayed. If there is an advantage to sweeps, it accrues to the television stations whose fees will reflect the higher ratings that are likely to result from the sweeps periods. 8. Some marketers estimate that the average consumer may be exposed to as many as 3,000 ads per day. Current estimates of effective frequency are based on 1,500 exposures per day.
  • 17. Discuss how, if at all, more exposures to advertising may necessitate changes in effective frequency. First, let’s realize that the number of exposures to ads is a very difficult figure to derive. While estimates now are supposed to be in the 3,000 area, there are those who believe that the number may be more like 4,000. Nevertheless, it is safe to recognize that the number of exposures has significantly increased over the past few years. It is also important to note that the concept of effective frequency was originated in the early 1970’s, which would seem to make it is necessary for updating. Certainly, the number of exposures at that time would be far less. Based on the assumption that consumers are now exposed to many more ads, one must believe that the level of effective frequency may have to change. The sheer amount of clutter and over exposure to ads would seem to indicate that it would be necessary to increase this number. Some media experts have suggested at least to 10-12, but offer no empirical support for these numbers. While there is no definitive answer to this new level, it would seem logical that the sheer amount of exposure might make processing more difficult, leading to a need to determine whether or not this number is still accurate. 9. Some business to business advertisers (for example, copy machine companies) advertise on NFL Sunday and/or Monday Night football games. As might be expected, such a buy would lead to a high level of waste coverage. Explain what is meant by
  • 18. waste coverage. Discuss whether this might or might not be a good media buy. (LO3) Waste coverage refers to overexposure, in which the media coverage exceeds the target audience. If the media reaches people who are not sought as buyers and are not potential users, then it is potentially wasted, and of little or no value to the marketer. At first glance, an ad for a copy machine that is used in business markets (as opposed to home use) may seem like a lot of money. How many of those people watching a pro football game are now, or ever will be, in the market for purchasing such an expensive machine? In fact, it may not be such a bad buy after all. While there certainly will be a large amount of waste coverage, many marketers are willing to live with that fact due to the fact that to reach the same amount of members of the target audience through more targeted media might be even more expensive. In other words buying ads in Office Management magazine and other business related periodicals may actually cost more than the television ad to reach the same amount of people. Thus the large waste coverage is acceptable. In addition, one never knows when new buyers may enter the market, and the exposure would not hurt. Finally, word of mouth, or reaching influencers or users, (not necessarily buyers) may also be of value. 10. Explain what is meant by BDI and CDI. How do advertisers use these indices in their media planning? (LO1) Pages 338-341 discuss BDI and CDI. BDI compares the percentage of the brand's total US sales in a given market area with the percentage of the total population in the market. The resulting BDI indicates the sales potential for that brand in that
  • 19. market area. CDI provides information on the potential for development of the total product category rather than specific brands. Figures 10-9,10-10 and 10-11 provide an excellent summary of how BDI and CDI can be calculated and used to develop marketing strategies. The use of these indices provides marketers with insights into the market potential for the product or brand. This, in turn, provides information regarding the amount of media emphasis, weighting, etc. to be allocated. Additional discussion questions (not in the text). 11. Explain the differences between CPM and TCPM. Give examples of a company or product that might select one of the methods versus the other. (LO1) As products and brands become more and more targeted, the use of CPM has been on the decline. As you can imagine, years ago with less market differentiation and more use of mass media, CPM was a good standard by which to compare the relative costs for various print media. However, as markets continue to be segmented into smaller and smaller segments, the marketing strategies of companies have led to more and more targeting. TCPM is considered by many to now be the more relevant relative cost measure. Nevertheless, there are companies who may still make use of the CPM measure. Companies that reach very broad audiences, and those with offerings to a variety of target segments—for example, automobiles, and furniture stores, CPM may have more relevance. That is not to say that these companies do not also employ TCPM, just that the broader cost comparison may still be of benefit. For companies targeting specific markets, such as 18-24 year
  • 20. olds, males versus females, etc., TCPM will have more relevance. The question is which medium will most cost efficiently deliver the message to these segments—as opposed to the general reading audience. 12. The chapter discusses some of the many changes taking place in the media environment. Discuss some of the reasons that marketers may be shifting advertising dollars to less traditional media. Does this mean that TV advertising may no longer exist in the future? (LO2) Indeed, there are those who are prematurely burying advertising on TV and other traditional media. They support their argument on the fact that more and more dollars are being shifted from TV to nontraditional media (to be discussed in Chapter 13). One reason for the shift stems from the fact that among younger demographics, media habits are changing drastically. These younger groups watch less TV, do not read daily newspapers (getting their news online), and read more interest magazines than news magazines. The new consumers want their media on their schedules, often multitask, and are more pressed for time. In addition, the proliferation of new media such as iPods, wireless and others provide the receiver with a number of new options for receiving communications, while at the same time providing marketers with a number of new options to reach them. It would only make sense that dollars are being moved. At the same time, it is premature to bury TV as an advertising medium. No other medium reaches broad markets more cost efficiently. To date, none provide the sight and sound capabilities to deliver commercials (though the Internet soon will) and none reach as large an audience. TV also has been cited as a more relaxing medium—one where one can be involved while just sitting on the couch and enjoying the
  • 21. content. It has also been shown to still be the first place that Internet users go to learn about new products. The fact is that advertising on TV is on the decline due to a number of factors (1) less viewership among certain segments; (2) more targeted media are available; and (3) changing consumer habits and lifestyles. To say that TV will need to adapt and change would be correct. To say it is dead is premature. 13. As noted in the chapter, there is a trade-off between reach and frequency for advertisers with a limited budget. Explain what this means. Under which circumstances would a planner wish to emphasize reach? Frequency? (LO3) In an ideal world, advertisers would like to maximize reach and frequency. Unfortunately, in the real world, they are faced with budgetary constraints. Given budget limitations, the media planner is forced to choose between reach and frequency. Given specific objectives of the plan, one or the other may be emphasized. Maximizing reach at the expense of frequency is more logical when the message is simple and easily understood, the receiver is in the early stages of the response hierarchy (for example, awareness and/or interest) and the target audience is broad. For example, campaigns targeting cola users use very simple messages (Just do it!) and are targeted to a broad audience. Thus reach is important. When the consumer is at a higher level in the response hierarchy, for example, comprehension, retention, etc., or the message is more complex, and/or the target audience is narrowly defined, frequency may be a more important objective. For example, messages that have a lot of copy, and may be more difficult to comprehend must consider the importance of effective frequency. One or two exposures may not be enough to
  • 22. achieve the media objectives. Likewise, a narrowly defined target market may allow for an emphasis on frequency, and the minimization of waste coverage, thus placing less emphasis on reach. 14. Describe the three methods of promotional scheduling. Give examples of products and/or services that might employ each method. (LO3) The text discusses the various scheduling options available to the marketer. Given the fact that there are always budgetary constraints, and that some products/services do not need to be marketed year round, scheduling allows for more efficient allocation of advertising and promotional dollars. The scheduling options available are: Continuity-- A continuous schedule refers to constant advertising throughout the year, either daily, weekly or monthly. Products that would be most likely to employ this scheduling method include products that would be used consistently throughout the year with no seasonal variations. For example, toothpaste, mouthwash, laundry detergent, etc. Flighting—This schedule has intermittent periods of advertising, with times when there is advertising and others when there is none. The “on” advertising time is referred to as flights. Seasonal products (snow skis), swim wear and other products primarily consumed at some times of the year but not all year round would employ this method. Banks have used flighting, recognizing that consumers are much less involved in making banking decisions around the holiday season in November and December. One of the advantages of flighting is the ability to extend the limited ad budget. Pulsing—A combination of the previous two methods, pulsing
  • 23. employs a continuous schedule with periods of increased advertising to take advantage of intermittent opportunities. A good example of this is beer advertising, which takes place continuously, but increases at holiday times, particularly Memorial Day, The 4th of July and Labor Day. 15. Figure 10-27 notes some of the advantages and disadvantages associated with various media options. Referring to Figure 10- 27 provide examples of products and/or services that might most benefit from the use of each medium. (LO4) Without repeating the information provided in Figure 10-27, it is obvious that each medium will have its specific advantages and disadvantages. Following is a list of products for which each medium might prove to be an advantage or a disadvantage: Medium Advantage Disadvantage Television Mass marketed products, soda, Targeted products, niche detergents, beer, etc. products Radio Local businesses/services
  • 24. Visual or targeted products Magazines Specialized interest products; Mass marketed products; equipment, snow skis, etc. products requiring demos Newspapers Local retail; local services Visual/emotional products Outdoor Local stores;attractions;services Complex products Direct mail Targeted products/services Mass market products Internet/Interactive Variety of products/services New products 16. The text lists both internal and external factors that might impact the media strategy. Provide examples of each and discuss how they might impact the media plan. (LO3)
  • 25. Both internal and external factors may affect the development of the media plan. Internal factors include the size of the media budget, managerial and administrative capabilities or the organization of the agency. External factors include the economy, changes in technology, competitive factors, and the like. The size of the media budget will obviously impact the number of media vehicles that the buyer can consider. Obviously, the larger the budget, the more options that can be considered. Managerial factors may include the number of employees and the experience and/or expertise that they have regarding media strategy development. Should there not be enough managerial talent to develop a media plan, outside agencies may be required. The organization of the external agency may also have an impact on the media plan. Larger, IMC oriented agencies are more likely to be involved with more media options. Smaller agencies may focus attention of advertising and/or public relations or other media with which they feel comfortable. Changes in the economy may directly impact the media plan. As the economy improves or recesses, media costs may rise and/or fall, making some media cost prohibitive. In addition, more advertisers may result in less media available. Changes in technology—for example, the advent of cable television and the Internet—may make more options available to the media planner. Finally, the competition may also force the planner to reconsider his/her media strategy. For example, in the business to business market, having a website is no longer an option, it is almost a requirement. Companies that do not have a website may find themselves at a distinct disadvantage, and lose business to those who do. It has become an expected medium for buyers to use. 17. Using the BDI and CDI indices, explain the least desirable
  • 26. market situation for marketers. Provide an example. Then do the same for the most desirable situation. (LO1) The least desirable situation is one in which the BDI and the CDI are both low. In this situation, there appears to be little potential for either the category or the brand. For example, consider typewriters. If they are still marketed at all, the category is in the decline stage, and any brands would be as well. No amount of advertising is likely to bring back the category or the brand. The most desirable situation is one in which BDI and CDI are both high. In this case, the category is growing, and the potential for the brand to grow is high as well. An example might be PC’s. The use of computers is growing, and new brands may have the potential to grow as well. The advertiser would be more likely to be successful by investing in this situation. IMC Exercise Have students access MRI online and examine the profiles and media usage characteristics for a particular product. Have them review the indices and to examine them carefully to determine if they seem logical. Have them present their findings to the class, describing the media strategy that should be employed to reach them. AdForum Exercise: “ Presenting the Message Through Different Media” (See Advertising and Promotion Playlist, Chapter 10) In the chapter it was noted that many companies use a variety of media to communicate with their target markets. In the playlist for Chapter 10 are a number of ads for companies that have used
  • 27. the same message in different media. Review these ads and then answer the following questions: 1. Do you feel that the message is communicated as well in different media? For example, do the commercials communicate better than the print ads? 2. There are a few ads that are shown in both television and the cinema. Do you think these ads are likely to be equally effective in both? Explain your answer. 3. Notice in the Peugot commercial there is no sound other than a tennis match being played in the background. Would the lack of someone talking make this ad more or less effective? Access to the chapter playlist is available through www.mcgrawhillconnect.com 136 10-14 Chapter 10 - Media Planning and Strategy Chapter 10 MEDIA PLANNING AND STRATEGY Chapter Overview Chapter 10 introduces the concepts involved in media planning. The chapter begins with an overview of media planning by introducing some key terms and concepts. At this point, the text points out that media planning is as much an art as it is a science. A number of problems associated with the planning process are discussed. The role and purpose of the media plan follows with a presentation of the steps required in developing this plan. After an in-depth discussion of the elements of the
  • 28. media plan, the chapter presents information regarding the use of computers in the planning process. The characteristics of various media and sources of media information are presented at the end of the chapter. Learning Objectives 1. To understand the key terminology necessary in media planning. 2. To know how a media plan is developed. 3. To know what constitutes media objectives 4. To know the process of developing and implementing media strategies. 5. To be familiar with various characteristics of media. Chapter and Lecture Outline I. AN OVERVIEW OF MEDIA PLANNING This overview presents a brief discussion of the factors involved in the media planning process and illustrates the fact that media planning is an involved process influenced by a variety of factors including the nature of the media, the overall marketing strategy, and the product or service being advertised. A. Basic Terms and Concepts—some of the critical terms necessary for understanding media planning are presented including: · media planning—the series of decisions involved in delivering the message to the target audience · media plan—the actual document detailing these decisions
  • 29. · media objectives—the objectives sought by the media plan · media strategies—the plans of action designed to attain the media objectives · medium—the general category of media channels such as broadcast, print, etc. · media vehicle—the specific carrier in a media category (television, magazines, etc.) · reach—the number of potential audience members exposed once to a media vehicle in a given period of time · coverage—the potential audience that might receive a message through a vehicle · frequency—the number of times the receiver is exposed to the media vehicle in a given time period B. The Media Plan—the goal of the media plan is to find a combination of media that will enable the marketer to communicate the message in the most effective manner possible at minimum cost. The activities involved in this plan are detailed in Figure 10-4. C. Problems in Media Planning—a number of problems are identified, each of which directly impacts the planning process. These include: insufficient information, inconsistent terminology, time pressures, and problems in measuring effectiveness. An understanding of these problems is critical to the proper design of the media plan. Professor's Notes
  • 30. II. DEVELOPING THE MEDIA PLAN The process of developing the media plan involves a series of steps (see Figure 10-2). These steps are essentially the same as those presented in the decision sequence model presented in Chapter 1, except now they are involved directly with media decisions. These steps include: market analysis, establishment of media objectives, media strategy development and implementation, and evaluation and follow-up. III. MARKET ANALYSIS AND TARGET MARKET IDENTIFICATION A. To Whom Should We Advertise? The discussion of target marketing is reviewed, though now the emphasis is on media, and some of the sources of information that are available to assist in making this decision. Secondary sources of information such as Experian Simmons Market Research, and GfK Mediamark Research, Inc.(MRI) are described. A brief discussion of the use of index numbers and their use in determining target markets is also provided B. What Internal and External Factors May Be Operating? As in the overall situation analysis, both internal and external factors will directly influence the media decisions. An example of using secondary sources to gain competitive information is provided, with an example of LEADING NATIONAL ADVERTISERS (COMPETITIVE MEDIA REPORTING) data shown in Figure 10-1. C. Where to Promote? The decision as to where to promote at this point involves geographical considerations. Once again, the discussion turns to the use of secondary information and indices
  • 31. as aids in making this decision. A number of critical terms are introduced including: The Survey of Buying Power Index, the Brand Development Index, andthe Category Development Index. The calculation of both BDI and CDI is provided, based on actual examples. Figure 10-11 is a useful way of presenting strategies evolving around BDI and CDI. Professor's Notes IV. ESTABLISHING MEDIA OBJECTIVES Media objectives relate to the goals to be attained by the media program, and as such should be limited to those that can be accomplished through media strategies. Such objectives are often expressed in terms of coverage, reach, frequency, scheduling, etc. V. DEVELOPING AND IMPLEMENTING MEDIA STRATEGY A. Developing a Media Mix—many media strategies require a combination of media to be used. The media mix involves the determination of the various channels to be used. The objectives of the plan, the budget and other factors, will directly impact this decision. B. Determining Target Market Coverage—Figure 10-13 provides a graphic illustration of market coverage possibilities. Of course, the marketer would like to achieve full coverage through a combination of media. As noted, this is not a likely outcome, and decisions have to be made that involve trade-offs between less than full market coverage and over coverage or waste coverage.
  • 32. C. Determining Geographic Coverage—The strategy of geographical weighting, in which geographic areas receive differential amounts of media emphasis, is discussed. D. Scheduling—Because it may not be feasible (or necessary) to maintain a constant advertising schedule, marketers will typically employ one of three scheduling alternatives: 1. Continuity refers to a continuous pattern of advertising—that is every day, week, or month (food products, laundry detergents, etc.) 2. Flighting is a scheduling method in which there are intermittent periods of advertising and nonadvertising (snow skis, etc.) 3. Pulsing is actually a combination of the two previous methods, in which a continuous schedule is used, though the amount of monies spent will vary throughout the time period (beer). E. Reach versus Frequency—Given that advertisers have differing objectives, and are constrained by budgets, the media decision usually involves a trade-off between reach and frequency. This decision is essentially one of exposing more persons to the ad, or exposing fewer persons more often. In making this decision, the media planner must take into consideration a number of factors involving reach and frequency including: 1. The determination of what levels of reach and frequency are needed
  • 33. 2. The establishment of reach and frequency objectives 3. Using gross ratings points (GRP's) 4. The determination of effective reach (the percent of the audience reached at each effective frequency increment) F. Creative Aspects and Mood—Creative aspects of the ad may require the use of specific media. For example, television may be required to implement certain types of creative campaigns. Likewise, the mood that a medium creates may carry over to the ad itself. For example, certain magazines may create various moods as they are being read. G. Flexibility—the media strategy must be flexible enough to respond to marketing threats and opportunities, as well as to adjust for changes regarding availability and/or in the media themselves. Flexibility may need to address the following: · market opportunities · market threats · availability of media · changes in media or media vehicles H. Budget Considerations—it is obvious that costs must be considered in the determination as to which media will be
  • 34. employed. Two types of costs must be addressed—absolute cost—which is the actual cost to place the ad in the medium— and relative cost—or the relationship between the price paid for advertising time or space and the size of the audience delivered. A comparison of media vehicles is usually necessary, using criteria such as cost per thousand (CPM), cost per ratings point (CPRP), and readers per copy. (Each of these is explained in detail in the text.) Professor's Notes VI. EVALUATION AND FOLLOW-UP As with other elements of the advertising/promotional program, the media program also requires evaluation to determine its effectiveness. Essentially, two questions need to be answered: (1) How well did these strategies perform the media objectives established; and (2) How well did this media plan contribute to the attainment of the overall marketing and communications objectives? VIII. CHARACTERISTICS OF MEDIA There are a number of sources of information available which define the various advantages and disadvantages of media. Figure 10-27 lists the major media, and the characteristics of each. APPENDIX A Appendix A provides an example of a media flow chart of Asics shoes. Professors Notes Teaching Suggestions
  • 35. Both the length and complexity of this chapter make it a difficult one for students to comprehend. The chapter contains a large number of terms, definitions, and formulas. Unfortunately, there is no way to ignore all of these, as they are critical to the students' learning of media planning and strategy, and are the "buzzwords" with which they will need to become familiar to participate in the advertising world, regardless of which side of the buying-selling process they may be on. One suggestion is to break the chapter into two lectures. In the first, the terms, formulas, etc., as well as an overview of the planning process can be discussed. The second lecture can be more specific, focusing on some of the objectives to be accomplished, discussing reach and frequency trade-offs, effective reach, and the like. Answers to Discussion Questions 1. One well known media planner has noted that media buying is a combination of art and science with a definite bias toward art. Explain what this means and give examples of circumstances or situations in which this might be the case. (LO4) Marketers have a wealth of information available to them for their use in media planning. Besides those provided by syndicated services like Simmons and MRI, the media themselves provide valuable information. There are also computerized media buying software programs, ratings services and primary research companies that may be employed. At the same time, all information cannot be quantified. What might be referred to as ”local knowledge”, or information that one just knows, often enters into the picture. For example, media buyers know there is a difference between weekly and
  • 36. monthly magazines (the latter stays around longer, leading to a higher potential for reach and frequency), location in the medium (page placement, within TV shows, etc) and the editorial perspective may all have an effect. As an example, in one market, the sports anchor was loved by many and hated by an equal amount of viewers. Local buyers knew that many viewers would switch to another channel when the sports came on (often switching back when it was over). While a very careful analysis of the TV ratings may have revealed this, to those familiar with this scenario, the “art” of media buying was invaluable. 2. GfK MRI and Experian Simmons both provide indexes to describe profiles of product users. Using the index provided in Figure 10-5, describe the profile of the energy drink user. Who is least likely to drink this product? (LO2) Using the index, as the number exceeds 100, the potential for use increases. As shown in Figure 10-5, the profile of the energy drink user is: Education: did not graduate high school (122); attended college (116); no college (103) Age: 18-24 (225); 25-34 (160); 35-44 (112)
  • 37. Sex: male Occupation: construction and maintenance (170); sales and office occupations (123); other (132) Income: $60,000-74,999 (109); $30,000-39,999 (109); $50,000-59,999 (105) The nonuser can best be described as a : 65+ year old, with a post graduate degree, employed in a business management profession with household income
  • 38. of $150,000+. 3. What does it mean for a company when they discover that their product has a High BDI but low CDI? What about a low CDI and Low BDI? (LO2) High BDI; low CDI: The product category is not selling well, but the brand is. Probably a good market to advertise in, but should be monitored for declining sales. Low CDI; low BDI Both the product category and the brand are doing poorly; not likely to be a good place for advertising Low CDI; low BDI Both the product and the category are not doing well. Probably not a
  • 39. good market in which to advertise. 4. As the media landscape continues to change, and advertisers shift more and more of their monies into new media, there are those who predict that some traditional media like TV and newspapers may not survive—at least in their present forms. Discuss whether you think this is an accurate statement and why or why not. (LO5). There is no question that companies have shifted their advertising dollars from traditional media to nontraditional media. It is also true that some traditional media are in trouble—particularly newspapers and magazines—as advertisers have become enamored with the new media opportunities. A few years ago, some of the largest traditional advertisers like P&G and American Express made a major point of the fact that they were moving away from traditional media. In 2010, for the first time in a very long time, P & G did not advertise on the Super Bowl, using the money in new media. Many others have followed a similar path. However, there are indications that there may be changes taking place in the thinking of these large organizations. P & G announced that it will return to the Super Bowl in 2011, as has BMW. Others almost certainly will follow. Much of this may be attributed to the importance of IMC, and research supporting the value of traditional media. Numerous studies have shown that for the achievement of certain objectives—particularly those at the top of the consumer funnel—traditional media like TV have much to offer. These studies demonstrate that traditional media drive consumers to the Internet, and that
  • 40. magazines remain effective to special interest groups. Whether or not traditional media will survive is another matter, as many are already in trouble, and have lost significant advertising revenues. However, recent articles have demonstrated a new found interest in TV, and specialty magazines are thriving (as is direct marketing, and outdoor). 5. Some media claim that advertisers should focus more attention to Readers per Dollar than CPM as a relative cost figure. Explain why they feel this way, and discuss some of the advantages and disadvantages with the use of both of these measures. (LO2). The discussion in the text covers the topics of CPM and readers per dollar quite effectively. The basis for this differentiation is simple—how many people are being reached by the medium for a given cost? CPM refers to the relative cost for reaching an audience based on the cost of ad space divided by the circulation. As the text notes, this figure can over estimate or underestimate the relative cost. Readers per dollar incorporates an additional figure—pass along rate. The proponents of using this measure argue that many magazines are read by more than one person (e.g., passed along), and that by using the CPM figure one underestimates potential exposures. They cite examples like Sports Illustrated, or Time or Newsweek noting that more than one family member may read each issue (these are just a few examples of such media), and that a more accurate figure would include these additional readers. Some magazines may even provide their measures of pass along readership.
  • 41. The problem with determining readers per dollar lies in the determination of pass along. While marketers know intuitively that magazines are passed along, making a specific determination as to the number of times is extremely difficult and often unreliable. Thus, most marketers do not calculate cost efficiencies on these numbers. Perhaps the best solution is a compromise—which is what many marketers do. They use the CPM figure as the base calculation, taking into consideration that many magazines are read by more that one person. In a sense, these extra readers are bonus readers. As you can see, using CPM and readers per dollar is truly a combination of art and science! 6. What is meant by engagement (in media terms)? Explain the relevance of engagement to media planners. (LO1) The term engagement is nothing new to media planners, and has been discussed for the past few years but with still no agreement as to exactly what it means. The reason for such attention stems from the fact that current metrics like CPM and CPP, etc., while still useful, are considered insufficient for today’s media planners. For the most part, engagement refers to the degree of involvement the viewer demonstrates with the message. Others have also considered relevance, intent, etc.. The basic concept is that more involved readers, watchers, and/or users will be more interested in the communication than will those merely exposed. For example, if I am in the market for a car, I may spend more time “engaged” with the ad. On the internet, if I spend more time on a page, I may be considered as more engaged. While certainly relevant, engagement has not yet shown to be as important as one might expect. While some research studies show that engaged viewers may demonstrate higher recall and
  • 42. like the ad better, as well as take some behavioral action after exposure to the ad, skeptics say “so what”? They argue that engagement may be explained by mere involvement with the product or service category, and of course involved consumers would be more inclined to reflect the same results. They argue that engagement is nothing new. Whether it is engagement or involvement, or relevance, all of these terms reflect more interest in the ad is likely to occur. While this is certainly an advantage over mere exposure, it does not mean that engagement has provided some major breakthrough. 7. A criticism of the current rating system for TV is that the numbers are based on sweeps periods. Some argue that a more accurate picture is provided by the meter system. Discuss some of the advantages and disadvantages of each method. (LO1) Television audience measurements are taken on a daily basis, however, the measures used to determine advertising rates are taken only four times a year--February, May, July and November. These four data collection periods are referred to as sweeps periods. Data collection during sweeps may result in inaccuracies for a number of reasons: · the networks schedule more interesting programs during sweeps · the networks and individual stations run more promotions during sweeps periods · the viewing audience may actually be aware of sweeps, and as a result "vote" with their viewing habits
  • 43. All of the above may lead to an overestimation of audience size that is then generalized to succeeding non-sweeps periods. The summer sweeps period is often discounted by the industry. Because television viewing is less in summer months and re- runs are often shown, the number of persons watching is less. Station and network programs designed to increase these numbers are less effective. As a result, the data is often ignored or downplayed. If there is an advantage to sweeps, it accrues to the television stations whose fees will reflect the higher ratings that are likely to result from the sweeps periods. 8. Some marketers estimate that the average consumer may be exposed to as many as 3,000 ads per day. Current estimates of effective frequency are based on 1,500 exposures per day. Discuss how, if at all, more exposures to advertising may necessitate changes in effective frequency. First, let’s realize that the number of exposures to ads is a very difficult figure to derive. While estimates now are supposed to be in the 3,000 area, there are those who believe that the number may be more like 4,000. Nevertheless, it is safe to recognize that the number of exposures has significantly increased over the past few years. It is also important to note that the concept of effective frequency was originated in the early 1970’s, which would seem to make it is necessary for updating. Certainly, the number of exposures at that time would be far less.
  • 44. Based on the assumption that consumers are now exposed to many more ads, one must believe that the level of effective frequency may have to change. The sheer amount of clutter and over exposure to ads would seem to indicate that it would be necessary to increase this number. Some media experts have suggested at least to 10-12, but offer no empirical support for these numbers. While there is no definitive answer to this new level, it would seem logical that the sheer amount of exposure might make processing more difficult, leading to a need to determine whether or not this number is still accurate. 9. Some business to business advertisers (for example, copy machine companies) advertise on NFL Sunday and/or Monday Night football games. As might be expected, such a buy would lead to a high level of waste coverage. Explain what is meant by waste coverage. Discuss whether this might or might not be a good media buy. (LO3) Waste coverage refers to overexposure, in which the media coverage exceeds the target audience. If the media reaches people who are not sought as buyers and are not potential users, then it is potentially wasted, and of little or no value to the marketer. At first glance, an ad for a copy machine that is used in business markets (as opposed to home use) may seem like a lot of money. How many of those people watching a pro football game are now, or ever will be, in the market for purchasing such an expensive machine? In fact, it may not be such a bad buy after all. While there certainly will be a large amount of waste coverage, many marketers are willing to live with that fact due to the fact that to reach the same amount of members of
  • 45. the target audience through more targeted media might be even more expensive. In other words buying ads in Office Management magazine and other business related periodicals may actually cost more than the television ad to reach the same amount of people. Thus the large waste coverage is acceptable. In addition, one never knows when new buyers may enter the market, and the exposure would not hurt. Finally, word of mouth, or reaching influencers or users, (not necessarily buyers) may also be of value. 10. Explain what is meant by BDI and CDI. How do advertisers use these indices in their media planning? (LO1) Pages 338-341 discuss BDI and CDI. BDI compares the percentage of the brand's total US sales in a given market area with the percentage of the total population in the market. The resulting BDI indicates the sales potential for that brand in that market area. CDI provides information on the potential for development of the total product category rather than specific brands. Figures 10-9,10-10 and 10-11 provide an excellent summary of how BDI and CDI can be calculated and used to develop marketing strategies. The use of these indices provides marketers with insights into the market potential for the product or brand. This, in turn, provides information regarding the amount of media emphasis, weighting, etc. to be allocated. Additional discussion questions (not in the text). 11. Explain the differences between CPM and TCPM. Give examples of a company or product that might select one of the methods versus the other. (LO1) As products and brands become more and more targeted, the use
  • 46. of CPM has been on the decline. As you can imagine, years ago with less market differentiation and more use of mass media, CPM was a good standard by which to compare the relative costs for various print media. However, as markets continue to be segmented into smaller and smaller segments, the marketing strategies of companies have led to more and more targeting. TCPM is considered by many to now be the more relevant relative cost measure. Nevertheless, there are companies who may still make use of the CPM measure. Companies that reach very broad audiences, and those with offerings to a variety of target segments—for example, automobiles, and furniture stores, CPM may have more relevance. That is not to say that these companies do not also employ TCPM, just that the broader cost comparison may still be of benefit. For companies targeting specific markets, such as 18-24 year olds, males versus females, etc., TCPM will have more relevance. The question is which medium will most cost efficiently deliver the message to these segments—as opposed to the general reading audience. 12. The chapter discusses some of the many changes taking place in the media environment. Discuss some of the reasons that marketers may be shifting advertising dollars to less traditional media. Does this mean that TV advertising may no longer exist in the future? (LO2) Indeed, there are those who are prematurely burying advertising on TV and other traditional media. They support their argument on the fact that more and more dollars are being shifted from TV to nontraditional media (to be discussed in Chapter 13). One reason for the shift stems from the fact that among younger
  • 47. demographics, media habits are changing drastically. These younger groups watch less TV, do not read daily newspapers (getting their news online), and read more interest magazines than news magazines. The new consumers want their media on their schedules, often multitask, and are more pressed for time. In addition, the proliferation of new media such as iPods, wireless and others provide the receiver with a number of new options for receiving communications, while at the same time providing marketers with a number of new options to reach them. It would only make sense that dollars are being moved. At the same time, it is premature to bury TV as an advertising medium. No other medium reaches broad markets more cost efficiently. To date, none provide the sight and sound capabilities to deliver commercials (though the Internet soon will) and none reach as large an audience. TV also has been cited as a more relaxing medium—one where one can be involved while just sitting on the couch and enjoying the content. It has also been shown to still be the first place that Internet users go to learn about new products. The fact is that advertising on TV is on the decline due to a number of factors (1) less viewership among certain segments; (2) more targeted media are available; and (3) changing consumer habits and lifestyles. To say that TV will need to adapt and change would be correct. To say it is dead is premature. 13. As noted in the chapter, there is a trade-off between reach and frequency for advertisers with a limited budget. Explain what this means. Under which circumstances would a planner wish to emphasize reach? Frequency? (LO3) In an ideal world, advertisers would like to maximize reach and
  • 48. frequency. Unfortunately, in the real world, they are faced with budgetary constraints. Given budget limitations, the media planner is forced to choose between reach and frequency. Given specific objectives of the plan, one or the other may be emphasized. Maximizing reach at the expense of frequency is more logical when the message is simple and easily understood, the receiver is in the early stages of the response hierarchy (for example, awareness and/or interest) and the target audience is broad. For example, campaigns targeting cola users use very simple messages (Just do it!) and are targeted to a broad audience. Thus reach is important. When the consumer is at a higher level in the response hierarchy, for example, comprehension, retention, etc., or the message is more complex, and/or the target audience is narrowly defined, frequency may be a more important objective. For example, messages that have a lot of copy, and may be more difficult to comprehend must consider the importance of effective frequency. One or two exposures may not be enough to achieve the media objectives. Likewise, a narrowly defined target market may allow for an emphasis on frequency, and the minimization of waste coverage, thus placing less emphasis on reach. 14. Describe the three methods of promotional scheduling. Give examples of products and/or services that might employ each method. (LO3) The text discusses the various scheduling options available to the marketer. Given the fact that there are always budgetary constraints, and that some products/services do not need to be marketed year round, scheduling allows for more efficient allocation of advertising and promotional dollars. The scheduling options available are:
  • 49. Continuity-- A continuous schedule refers to constant advertising throughout the year, either daily, weekly or monthly. Products that would be most likely to employ this scheduling method include products that would be used consistently throughout the year with no seasonal variations. For example, toothpaste, mouthwash, laundry detergent, etc. Flighting—This schedule has intermittent periods of advertising, with times when there is advertising and others when there is none. The “on” advertising time is referred to as flights. Seasonal products (snow skis), swim wear and other products primarily consumed at some times of the year but not all year round would employ this method. Banks have used flighting, recognizing that consumers are much less involved in making banking decisions around the holiday season in November and December. One of the advantages of flighting is the ability to extend the limited ad budget. Pulsing—A combination of the previous two methods, pulsing employs a continuous schedule with periods of increased advertising to take advantage of intermittent opportunities. A good example of this is beer advertising, which takes place continuously, but increases at holiday times, particularly Memorial Day, The 4th of July and Labor Day. 15. Figure 10-27 notes some of the advantages and disadvantages associated with various media options. Referring to Figure 10- 27 provide examples of products and/or services that might most benefit from the use of each medium. (LO4) Without repeating the information provided in Figure 10-27, it is obvious that each medium will have its specific advantages and disadvantages. Following is a list of products for which each medium might prove to be an advantage or a disadvantage:
  • 50. Medium Advantage Disadvantage Television Mass marketed products, soda, Targeted products, niche detergents, beer, etc. products Radio Local businesses/services Visual or targeted products Magazines Specialized interest products; Mass marketed products; equipment, snow skis, etc. products requiring demos Newspapers Local retail; local services Visual/emotional products Outdoor Local stores;attractions;services
  • 51. Complex products Direct mail Targeted products/services Mass market products Internet/Interactive Variety of products/services New products 16. The text lists both internal and external factors that might impact the media strategy. Provide examples of each and discuss how they might impact the media plan. (LO3) Both internal and external factors may affect the development of the media plan. Internal factors include the size of the media budget, managerial and administrative capabilities or the organization of the agency. External factors include the economy, changes in technology, competitive factors, and the like. The size of the media budget will obviously impact the number of media vehicles that the buyer can consider. Obviously, the larger the budget, the more options that can be considered. Managerial factors may include the number of employees and the experience and/or expertise that they have regarding media strategy development. Should there not be enough managerial talent to develop a media plan, outside agencies may be required. The organization of the external agency may also have an impact on the media plan. Larger, IMC oriented agencies are more likely to be involved with more media options. Smaller agencies may focus attention of
  • 52. advertising and/or public relations or other media with which they feel comfortable. Changes in the economy may directly impact the media plan. As the economy improves or recesses, media costs may rise and/or fall, making some media cost prohibitive. In addition, more advertisers may result in less media available. Changes in technology—for example, the advent of cable television and the Internet—may make more options available to the media planner. Finally, the competition may also force the planner to reconsider his/her media strategy. For example, in the business to business market, having a website is no longer an option, it is almost a requirement. Companies that do not have a website may find themselves at a distinct disadvantage, and lose business to those who do. It has become an expected medium for buyers to use. 17. Using the BDI and CDI indices, explain the least desirable market situation for marketers. Provide an example. Then do the same for the most desirable situation. (LO1) The least desirable situation is one in which the BDI and the CDI are both low. In this situation, there appears to be little potential for either the category or the brand. For example, consider typewriters. If they are still marketed at all, the category is in the decline stage, and any brands would be as well. No amount of advertising is likely to bring back the category or the brand. The most desirable situation is one in which BDI and CDI are both high. In this case, the category is growing, and the potential for the brand to grow is high as well. An example might be PC’s. The use of computers is growing, and new brands may have the potential to grow as well. The advertiser would be more likely to be successful by investing in this
  • 53. situation. IMC Exercise Have students access MRI online and examine the profiles and media usage characteristics for a particular product. Have them review the indices and to examine them carefully to determine if they seem logical. Have them present their findings to the class, describing the media strategy that should be employed to reach them. AdForum Exercise: “ Presenting the Message Through Different Media” (See Advertising and Promotion Playlist, Chapter 10) In the chapter it was noted that many companies use a variety of media to communicate with their target markets. In the playlist for Chapter 10 are a number of ads for companies that have used the same message in different media. Review these ads and then answer the following questions: 1. Do you feel that the message is communicated as well in different media? For example, do the commercials communicate better than the print ads? 2. There are a few ads that are shown in both television and the cinema. Do you think these ads are likely to be equally effective in both? Explain your answer. 3. Notice in the Peugot commercial there is no sound other than a tennis match being played in the background. Would the lack of someone talking make this ad more or less effective? Access to the chapter playlist is available through www.mcgrawhillconnect.com