The document discusses various concepts related to media planning, including: 1) Describing factors used to segment target audiences like demographics, psychographics, and lifestyle. 2) Explaining media concepts such as reach, frequency, gross rating points, and how advertising is allocated over time. 3) Providing an example media plan for launching the new Saab 9-5 sedan, including objectives, target audience, and specific tactics.

1. Media Planning and Analysis Chapter Fourteen

2. Chapter Fourteen Objectives Describe the major factors used in segmenting target audiences for media strategy purposes Explain the meaning of reach, frequency, gross rating points, target rating points, effective rating points, and other media concepts Discuss the logic of the three-exposure hypothesis and its role in media and vehicle selection

3. Chapter Fourteen Objectives Describe the use of the efficiency-index procedure for media selection Distinguish the differences among three forms of advertising allocation: continuous, pulsed, and flighted schedules Explain the principle of recency, or shelf-space model, and implications for allocating advertising expenditures over time

4. Chapter Fourteen Objectives Perform cost-per-thousand calculations Interpret the output from a computerized media model

5. Saab 9-5 In the late 1990s, Saab introduced a new luxury sedan: the Saab 9-5 Saab had done little to expand its brand image in U.S. Historically it attracted younger customers, but needed the luxury sedan to appeal to families and older customers

6. Saab 9-5 A mass-market advertising campaign was undertaken with the following objectives: Generate excitement for new 9-5 model line Increase overall awareness for Saab name Encourage customers to visit dealers and test-drive Retail 11,000 units of 9-5 during introductory year

7. Saab 9-5 Television commercials were run on network TV and cable in May A newspaper campaign began earlier in March with ads in USA Today and Wall Street Journal Ads also ran yearlong in several automobile magazines Internet banner ads were also run throughout the year

8. Saab 9-5 Media Plan Tactical Plan

9. Saab 9-5 Magazine Ad Magazine ad

10. Saab 9-5 Dealer Kit Dealer Information Kit

11. Saab 9-5 Direct Mail uestionnaire Direct mail questionnaire

12. Saab 9-5 Direct Mail Response to Questionnaire Response to direct mail questionnaire

13. Saab 9-5 Dealer Leads Dealer lead information card

14. Saab 9-5 Dealer Sales Literature Dealer consumer sales literature

15. Saab 9-5 Consumer Test Drive Contest Test-drive invitation and contest

16. Saab 9-5 Consumer Test Drive Contest Contest entry card

17. 1-800-COLLECT Media Strategy 1-800-Collect media strategy guide

18. Media Overview Advertisers are placing more emphasis than ever on media planning Choosing media & vehicles is the most complicated of all marketing communications decisions Aside from specific vehicles in media, the planner has to choose geographical locations and budget distribution over time

19. The Media-Planning Process Media planning Involves the process of designing a scheduling plan that shows how advertising time and space will contribute to the achievement of marketing objectives

20. Overview for the Media Planning Process Advertising Strategy Media Strategy Audience Selection Objective Specification Media and Vehicle Media Buying Marketing Strategy Advertising Objectives Advertising Budget Message Strategy Media Strategy

21. The Media-Planning Process As shown in the figure, media planning involves coordination the coordination of three levels of strategy formulations: Marketing Strategy Advertising Strategy Media Strategy

22. The Media-Planning Process Marketing Strategy: Provides impetus and direction for choice of both advertising and media strategies Advertising Strategy: Involves advertising budgets, objectives and message and media strategies – extends from overall marketing strategy

23. The Media-Planning Process 4. Buying media 1. Selecting the target audience 2. Specifying media objectives 3. Selecting media categories and vehicles

24. Selecting the Target Audience Four major factors (1) Buyographics (4) Lifestyle/psychographics (2) Geographic (3) Demographic

25. Specifying Media Objectives What proportion of the population should be reached with advertising message during specified period (reach) How frequently should audience be exposed to message during this period (frequency) How much total advertising is needed to accomplish reach and frequency objectives (weight)

26. Specifying Media Objectives How should the advertising budget be allocated over time (continuity) How close to the time of purchase should the target audience be exposed to the advertising message (recency) What is the most economically justifiable way to accomplish objectives (cost)

27. Reach Percentage of target audience that is exposed to an advertisement, at least once, during a certain time frame (usually four weeks)

28. Reach Reach represents the percentage of target customers who have an opportunity to see the advertisers message. Other terms used by Media Planners to describe reach: 1+ (read “one-plus”) net coverage unduplicated audience cumulative audience ( or “cume”)

29. Factors Determining the Reach More people are reached when a media schedule uses multiple media The number and diversity of media vehicles used By diversifying the day parts

30. Frequency Average number of times an advertisement reaches the target audience in a four-week period

31. Market Factors/Frequency Levels Brand History New High Brand Share High Low Brand Loyalty High Low Purchase Cycle Short High Usage Cycle Short High Share of Voice High High Market Factor Type Frequency

32. Message Creative Factors/Frequency Levels Message Complexity Simple Low Message Uniqueness Unique Low Newness New High Image Factors Image High Message variation Little Low Message/Creative Factor Type Frequency

33. Media Factors/Frequency Levels Clutter high High Editorial Nature Consistent Low Attentiveness High Low Scheduling Continuous Low Number of Media a Lot Low Media Factor Type Frequency

34. Weight How much advertising volume is required to accomplish advertising objectives Three weight metrics: Gross ratings Target ratings Effective ratings

35. Weight Gross rating points, or GRPs, are an indicator of the amount of gross weight that a particular advertising schedule is capable of delivering GRPs=Reach(R) X Frequency(F)

36. Determining GRPs in Practice GRPs are the sum of all vehicle ratings in a media schedule Rating: proportion of the target audience presumed to be exposed to a single occurrence of an advertising vehicle in which the advertiser’s brand is advertised

37. Determining GRPs in Practice 100 GRPs could mean: 100 % exposed once 50 % exposed twice 25% exposed four times etc.

38. Weight Target Rating Points (TRPs) Adjust a vehicle’s rating to reflect just those individuals who match the advertiser’s target audience

39. Weight Effective Rating Points (ERPs) Effective reach Effective frequency

40. The Concept of ERPs How often the target audience have an opportunity to be exposed? Effective reach is based on the idea that an advertising schedule is effective only if it does not reach members of target audience too few or too many times

41. How Many Exposures are Needed? Three-Exposure Hypothesis The minimum number of exposures needed for advertising to be effective is three

42. How Many Exposures are Needed? The Efficiency-Index Procedure Media schedule that generates the most exposure value per GRP

43. Efficiency Index Procedure Exposure Value Exposure Distribution Total Exposure Value Index of Exposure Efficiency

44. Effective Reach in Advertising Practice 3-10 exposures during a media-planning period (typically 4 weeks) Using multiple media Subjective factors must be considered

45. Continuity How advertising is allocated during the course of an advertising campaign : how should the media budget be distributed?

46. Continuity Continuous schedule Pulsing Flighting

47. Continuous, Pulsing, and Flighting Schedules 0 200 400 600 J F M A M J J A S O N D Continuous Pulsing Flighting Advertising Schedules Ad $ (in thousands) (months)

48. Recency Planning Consumers’ first exposure to an advertisement is the most powerful Advertising primary role is to influence brand choice (2) Achieving a high level of weekly reach for a brand should be emphasized over acquiring heavy frequency

49. Optimizing Weekly Reach Advertising teaches consumers Influence brand selection Messages are most effective when close to purchase time Cost-Effectiveness of first exposure is greater than subsequent Allocate budget to reach consumers often Reach target audience continuously rather than sporadically

50. Toward Reconciliation Illustration of advertising’s “ Chance Encounter” and the value of achieving reach

51. Cost Considerations The cost of reaching 1,000 members of the target audience, excluding those people who fall outside the target market

52. Cost considerations Cost per Thousand (CPM) Target Market (TM) CPM= Cost of ad # of contacts (expressed in thousands) CPM-TM= Cost of ad # of TM contacts (expressed in thousands)

53. Cost Considerations Measures of cost efficiency, not of effectiveness Lack of comparability across media Misused unless vehicles within a particular medium are compared on the same basis

54. Tradeoffs Tradeoff must be made because media planners operate under the constraint of fixed advertising budget

55. Media Planning Software ADplus 1. User develops a media database 2. User selects criterion for schedule optimization 3. User specifies constraints 4. ADplus seeks out the optimum media schedule

56. Diet Dr. Pepper Campaign Market Situation Sluggish category growth Growth of new-age beverages Price sensitive Lack of bottler attention and focus Inadequate distribution Greater spending by major competitors

57. Media Strategy Media plan for Diet Dr. Pepper

58. Media Plan for Diet Dr. Pepper Media plan for Diet Dr. Pepper (page 2)

59. Campaign Target and Objectives Increase sales by 4% and improve growth rate to 1.5 times the diet soda category Heighten consumer knowledge Differentiate product

60. Results Sales grew by 6.6% Consumer brand ratings of Diet Dr. Pepper surpassed Diet Coke and Diet Pepsi in several key areas