This document discusses key concepts in media planning and strategy, including media objectives, strategies, vehicles, reach, frequency, and target audiences. It covers analyzing the market and target audience, developing media objectives, strategies, and plans. Specifically, it examines analyzing internal/external factors, buying power, brand/category development indices. It also discusses budget considerations like cost per thousand. Finally, it outlines developing a media plan through assessing the market, establishing objectives, developing strategies, implementation, and evaluation.

1. MGT601 – Media Management
Topic 6&& – Media Strategy and planning
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2. Some Basic Terms and Concepts
• Media planning: the series of decisions involved in
delivering the promotional message to the
prospective purchasers and/or users of the product
or brand.
• Media objectives: goals to be attained by the media
strategy and program.
• Media strategies: decisions on how the media
objectives can be attained.
• Medium: the general category of available delivery
systems, which includes broadcast media, print
media, direct mail, outdoor advertising, and other
support media.

3. Some Basic Terms and Concepts
• Media vehicle : the specific carrier within a medium
category.
• Reach: a measure of the number of different
audience members exposed at least once to a
media vehicle in a given period of time. (actual)
• Coverage: the potential audience that might
receive the message through a vehicle. (potential)
• Frequency: the number of times the receiver is
exposed to the media vehicle in a specific period.
• Target audience: demographic segment targeted
for our message

4. Target Audience Coverage
Coverage
Exceeding
Market
Partial
Market
Coverage
Full
Market
Coverage
Target
Market
Proportion
Population excluding target market
Target market
Media coverage
Media overexposure

5. Selecting media within class
Selecting broad media classes
Determining media strategy
Media use decision
— print
Media use decision
— broadcast
Media use decision
— other media
Selecting media within class
Determining media strategy
Selecting broad media classes
The Media Plan
Setting media objectives
Setting media objectives
Marketing
strategy plan
Creative
strategy plan
Marketing
strategy plan
Situation
analysis
Creative
strategy plan
Situation
analysis
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6. Media plan activates a media strategy

7. Developing the Media Plan
• Market analysis
• Establishment of media objectives
• Media strategy development and implementation
• Evaluation and follow-up

8. Market Analysis and Target
Market Identification
• To whom shall we advertise?
• What internal and external factors are operating?
• Where to promote?

9. To Whom Shall We Advertise?
• Secondary information
• Government, e.g. age, education.
• Market research companies, e.g. Nielsen, Kantar, IRI, etc.
• Index number
• The high index may be a result of a low denominator.
Percentage of users
in a demographic segment
Index 100
Percentage of population
in the same segment
 
 
 
 
 
 
 

10. Example
18~24 25~34 35~44 45~
Population 15.1% 25.1% 20.5% 39.3%
Product
use
18% 25% 21% 36%
Index 119 100 102 91

11. Internal and External Factors
• Internal factors: the size of media budget, managerial and
administrative capability, the organization of the agency.
• External factors: the cost of media, changes in technology,
competitors.

12. Where to promote?
Buying power index
• Buying Power Index (BPI) is a weighted index that converts
three basic elements—population(P), effective buying
income(EBI), and retail sales(ERS)—into a measurement of a
market’s ability to buy.
BPI=0.5*EBI + 0.3*ERS+ 0.2*P
• Effective Buying Income: an individual's disposable income, consisting of salary and wages, dividends,
interest, profits, etc., less all government taxes.
• Brand development index
• Category development index

13. Brand Development Index (BDI)
Percentage of brand to
total U.S. sales in market
Percentage of total U.S.
population in market
BDI = X 100
Percentage of brand sales to
total sales in market
Percentage of total population
in market

14. Category Development Index
(CDI)
CDI =
Percentage of product
category total sales in market
Percentage of total
population in market
X 100

15. Example
18-24 25-34 35-44 45+
Population 40% 27% 23% 10%
Brand 30% 30% 35% 5%
Product 20% 50% 15% 15%
BDI 75 111 152 50
CDI 50 185 65 150

16. Brand and Category Analysis
High market share
Good market
potential
High market share
Monitor for sales
decline
Low market share
Good market
potential
High
CDI
Low
CDI
Low market share
Poor market
potential
High BDI Low BDI

17. Brand and Category Analysis
The market usually represents
good sales potential for both
the product and the brand.
The category isn’t selling well
but the brand is; may be a
good market in which to
advertise but should be
monitored for sales decline.
The product category shows
high potential but the brand
isn’t doing well; the reason
should be determined.
High
CDI
Low
CDI
Both the product category and
the brand are doing poorly;
not likely to be a good place
to advertise.
High BDI Low BDI

18. Media Planning Criteria
Considerations
• The media mix
• Target market coverage
• Geographic coverage
• Scheduling
• Reach versus frequency
• Creative aspects and mood
• Flexibility
• Budget considerations

19. Budget Considerations
• Absolute cost: the actual total cost required to
place the message.
• Relative cost: the relationship between the price
paid for advertising time or space and the size of
the audience delivered.
• Cost per thousand (CPM)

20. Cost per thousand (CPM)
Cost per mille (CPM), also called cost per thousand (CPT) is a
commonly used measurement in advertising.
It is the cost an advertiser pays for one thousand views or clicks of
an advertisement. Radio, television, newspaper, magazine, out-of-
home advertising, and online advertising can be purchased on the
basis of exposing the ad to one thousand viewers or listeners.
It is used in marketing as a benchmarking metric to calculate the
relative cost of an advertising campaign or an ad message in a
given medium

21. Developing a Media Plan
Evaluate performance
Analyze the market
Establish media objectives
Develop media strategy
Implement media strategy

22. Developing a Media Plan
Assess the market:
• Customer segment:
 Size
 Stability
 Profitability
• Competitors:
 Number of competitors
 Market share and intensity
 Share of voice
Media objectives:
• 3 main media objectives include:
 Building relationships
 Raising awareness/considerations and
 Growing sales
 Frequency of purchase
 More people buying
 People buying more heavily

23. Developing a Media Plan

24. Three Scheduling Methods
Scheduling directly refers to the patterns of time in which the advertisement
is going to run.
Continuity: a regular pattern of advertising.(This is a best model for the
products having continuous demand all the year round.)
Flighting: a less regular schedule with intermittent periods of advertising
and non-advertising.(the biggest advantage here is there is very less waste
of funds as the ads run only at the peak time when the product demand is
on high. Television and radio are the most used media types in this
method)
Pulsing: a combination of the above two methods.(Pulsing is best used for
products that sell throughout the year but experience higher sales during
certain periods (lemonade sells all year but more during the summer
months, for example).

25. Three Scheduling Methods
Continuity
Pulsing
Flighting
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

26. Reach versus Frequency
• Reach
Reach is the percentage of targets who are exposed to your media at
least once during a predetermined period of time. Your brand needs
at least 50 percent reach to survive, but higher reach is always better,
particularly at the beginning of a new campaign
• Frequency
Is the average number of times a household is exposed to your
campaign over a set period of time

27. Reach versus Frequency
Both reach and frequency are important to consider throughout
the lifecycle of your campaign. But the value you place on these
metrics really depends on your goals and the buying cycle for
your product/service/event .
Reach should be a high priority with a new campaign..
Concentrating on reach is also more effective with a broad
demographic.
Frequency is a more important metric for facing stiff competition
in your industry.

28. Effects of Reach and Frequency
• One exposure of an ad to a target group within a purchase
cycle has little or no effect in most circumstances.
• Since one exposure is usually ineffective, the central goal of
productive media planning should be to enhance frequency
rather than reach.
• The evidence suggests strongly that an exposure frequency
of two within a purchase cycle is an effective level.

29. Factors Important in Determining
Frequency Levels
• Marketing Factors
• Brand history
• Brand loyalty
• Purchase cycles
• Usage cycle
• Target group

30. Factors Important in Determining
Frequency Levels
• Message or Creative Factors, for example:
• Message complexity
• Message uniqueness
• New vs. continuing campaigns

31. Factors Important in Determining
Frequency Levels
• Media Factors
• Clutter
• Scheduling
• Number of media used
• Repeat Exposures

32. Evaluation and Follow-Up
Use again, or analyze flaws
How well did these strategies achieve
the media objectives?
How well did the media plan contribute
to attaining the overall marketing and
communications objectives?

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Thank You
Dr Arash Najmaei
alonbani@icms.edu.au
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