Media Strategic Planning In Cognitive Self Evolving Markets


Published on

Published in: Business, News & Politics
  • Be the first to comment

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Media Strategic Planning In Cognitive Self Evolving Markets

  1. 1. Cognitive Strategic Media Planning in Self-Co Evolving Markets Yasir Karam [email_address] School of computing and mathematical sciences Liverpool John Moores University 23 July 2006
  2. 2. Agenda <ul><li>Market ontology </li></ul><ul><ul><li>Consumption modes </li></ul></ul><ul><ul><li>Consumer Perspective </li></ul></ul><ul><li>Cognitive Marketing </li></ul><ul><li>Media Ad Lifecycle </li></ul><ul><li>Cognitive Biases </li></ul><ul><li>The Adsumer Model </li></ul><ul><li>Media chunks; AdPilot </li></ul>
  3. 3. Market Ontology <ul><li>Consumption Modes </li></ul><ul><ul><li>Induced consumption </li></ul></ul><ul><ul><ul><li>Whenever consumer’s income leverages its expenditure of consumable goods </li></ul></ul></ul><ul><ul><li>Autonomous consumption </li></ul></ul><ul><ul><ul><li>consumption spending done as part of long-term plans for the future (smoothing out income fluctuations, providing for retirement and other expected future events, etc.) </li></ul></ul></ul><ul><ul><li>FMCG </li></ul></ul><ul><ul><ul><li>Fast Moving Consumer Giveaway Goods; Products that have a quick shelf turnover, at relatively low cost and don't require a lot of thought, time and financial investment to purchase. </li></ul></ul></ul>
  4. 4. Market Ontology <ul><li>Consumer Perspective </li></ul><ul><ul><li>Consumer’s Needs </li></ul></ul><ul><ul><ul><li>Need for subsistence </li></ul></ul></ul><ul><ul><ul><ul><li>Agents needs to survive though an accumulated energy level has to be observed . </li></ul></ul></ul></ul><ul><ul><ul><li>Need for identity </li></ul></ul></ul><ul><ul><ul><ul><li>Agents wants to have more than the average level of the whole population; “competitiveness” </li></ul></ul></ul></ul><ul><ul><ul><li>Need for belongingness </li></ul></ul></ul><ul><ul><ul><ul><li>Desire of Agents to belong to groups though the number of Agents in the neighborhood divided by number of possible neighborhood </li></ul></ul></ul></ul><ul><ul><li>Consumer’s Uncertainty </li></ul></ul><ul><ul><li>Consumer decision making implications </li></ul></ul><ul><ul><ul><li>Repetition </li></ul></ul></ul><ul><ul><ul><li>Imitation </li></ul></ul></ul><ul><ul><ul><li>Deliberation </li></ul></ul></ul><ul><ul><ul><li>Social Comparison </li></ul></ul></ul>
  5. 5. Cognitive Marketing <ul><li>Learning: </li></ul><ul><ul><li>Is likely to become the dominant, and more effective, method to foster relationships between brand and consumers today. </li></ul></ul><ul><ul><li>Recognizes the changing dynamics of communication and addresses the antiquated method of linear dialogue with bidirectional and interactive conversation. Different from stimulus-response, it understands knowledge is neither fed nor acquired but is synthesized and created. </li></ul></ul><ul><ul><li>In effective learning, individuals must interpre t the knowledge and create meaning for themselves to make information relevant and personal. </li></ul></ul><ul><ul><li>When behavior comes learnable , creating an effective process of learning should be a pillar of marketing communications planning. </li></ul></ul><ul><ul><li>Regardless of a campaign's objective, whether awareness , branding , or direct response , all campaigns are meant to deliver information (i.e., messaging ) to the target audience so individuals are aware of the product/services/brand value the communication is tasked to convey. </li></ul></ul>
  6. 6. Cognitive Marketing <ul><li>Interaction : </li></ul><ul><ul><li>To create a two-way conversation, both parties must react and respond to each other. </li></ul></ul><ul><ul><li>Interacting socially means creating an effective learning experience. </li></ul></ul><ul><ul><li>Initial and continuously sustained interaction between both parties is absolutely required. </li></ul></ul><ul><ul><li>Two fundamental pillars to the human learning process: </li></ul></ul><ul><ul><ul><li>Schema acquisition : Schemas can be defined as general knowledge structures that encapsulate numerous elements of information into a single element and are organized into a manner that can be widely used. In marketing terms, this can be loosely interpreted as advertising's &quot; message .&quot; </li></ul></ul></ul><ul><ul><ul><li>Automation: is the transfer of schematic knowledge from consciously controlled to automatic processing. This automated processing is crucial to the speed of learning, as automation ultimately reduces the effort required to acquire new information. </li></ul></ul></ul>
  7. 7. Direct Marketing
  8. 8. Advertising Media Lifecycle Ad Media Media Planner Media Buyer Advertiser Media Publisher Media Broadcaster Media Consumer
  9. 9. Cognitive Biases <ul><li>Cognitive Dissonance </li></ul><ul><ul><li>Spontaneous Biases </li></ul></ul><ul><ul><ul><li>Self-Attribution (Stimulus Attribution) </li></ul></ul></ul><ul><ul><ul><li>Self-Impression </li></ul></ul></ul><ul><ul><li>Acknowledgement Biases </li></ul></ul><ul><ul><ul><li>Self - perception </li></ul></ul></ul><ul><ul><ul><li>Self-Awareness </li></ul></ul></ul>
  10. 10. Ad Media Planning <ul><li>Goals </li></ul><ul><ul><li>Lower cost per impression </li></ul></ul><ul><ul><li>Lower cost per lead </li></ul></ul><ul><ul><li>Lower cost per sale </li></ul></ul><ul><ul><li>To buy media in right geographic area </li></ul></ul><ul><ul><li>To spend less money for best response </li></ul></ul><ul><ul><li>To assure maximum customer retention rate </li></ul></ul><ul><ul><li>To match target audience to appropriate media </li></ul></ul>
  11. 11. Market Ontology -cont <ul><li>Consumer Decision Making Process: </li></ul>Bandwagon effect Informative bias Selective perception Confirmation bias Cognitive Dissonance Cognitive Biases
  12. 12. Beliefs-Desires-Intentions Model
  13. 13. Theory of planned behavior
  14. 14. Information processing in cognitive architecture
  15. 15. Retail Marketing Funnel
  16. 16. Retail Marketing Funnel <ul><ul><li>Awareness is simply the cognizance that a brand or product exists. Awareness marketing targets the largest groups of people, and simply strives to &quot;get the brand name out there,&quot; wherever &quot;there&quot; may be. </li></ul></ul><ul><ul><li>Recognition is the stage where a consumer can mentally link a brand to a product or marketing slogan. Many marketers like to correlate recognition numbers with sales numbers, so there's a lot of recognition data out there. </li></ul></ul><ul><ul><li>Recall , the next stage of the funnel, tests the opposite of recognition: given a particular product, can the consumer remember the particular brand image or redeeming qualities of the product? Most TV commercials for consumer products strive to make it to the recall stage, but in reality, they're typically relegated to recognition or awareness status. </li></ul></ul><ul><ul><li>Perception stage relates to how a brand or product is generally received and comprehended by consumers. The notion of &quot;positive&quot; or &quot;negative&quot; brand image and equity commonly comes from marketing efforts at this level. </li></ul></ul><ul><ul><li>Preference stage is the first funnel stage where marketing has solidly influenced the customer's beliefs. This level of marketing promotes specific features and benefits of the brand or product (often at the expense of competing products) to try and become the customer's brand of choice. </li></ul></ul><ul><ul><li>Identification , in this case, is literally the point at which the consumer visualizes him or herself as a user of the brand or product. Marketing at this level will often involve showing the brand or product being used by a particular class of individual that (hopefully) the target consumer will be able to identify with and relate to, thus creating a bond between consumer and product, and motivating the sale. </li></ul></ul><ul><ul><li>Sales stage, this is the point where the customer makes their active purchase decision, whether that means choosing between brands, or deciding whether to make the purchase at all. </li></ul></ul>
  17. 17. Metrics <ul><li>Cost-Per-Thousand (CPM) is a method of evaluating media efficiency. CPM is a ratio based on how much it costs to reach a thousand people. Cost-per-thousand is calculated by using the following formula: Cost of advertising schedule purchased CPM = Gross Impressions ÷ 1,000 </li></ul><ul><li>It is calculated by: </li></ul><ul><li>total cost * 1000 / total audience </li></ul><ul><li>Or </li></ul><ul><li>total cost / (total audience / 1000) </li></ul><ul><li>Cost-Per-Point (CPP) is a ratio based on how much it costs to buy one rating point, or one percent of the population in an area being evaluated.     Cost of advertising schedule purchased </li></ul><ul><li>CPP = </li></ul><ul><li>Gross Rating Points (GRPs or &quot;grips&quot;) </li></ul><ul><li>Cost-Per-Impression (CPI) Very similar to CPM is the notion of impressions.  Instead of tracking only the number of unique people that see an ad, impressions is a way of measuring the number of times that any given person sees the same ad (even if they've seen it more than once). </li></ul><ul><li>Cost per Click Through ( CPC ) </li></ul><ul><li>Cost-Per-Lead (CPL) </li></ul><ul><li>Page CTR - the ads click rate, i.e. #clicks / page impressions </li></ul><ul><li>EPC - earning per click </li></ul><ul><li>MFA - make for ad sense, usually used to describe sites that are without real content but just have ad sense ads... those sites may join the ad Words program in order to acquire traffic. </li></ul><ul><li>Cost-Per-Unique Customer (CPUC) . Another banner advertising rate is the cost per unique visitor. The average sum of pages that the visitor sees on a certain site varies. If, for example, a particular site has an average of 6 page views per visitor and its average number of impressions per month is 600 000, then their average user sessions per month would be 100 000. If your aim as an advertiser is the number of clickthroughs, then the cost per visitor should not be bigger than the CPM. Having this site as an example, the impressions that you will get per month will amount to 100 000. </li></ul><ul><li>Cost-Per-Action (CPA) (as it is often initialized to) is a phrase often used in online advertising and online marketing circles. CPA is considered the optimal form of buying online advertising from the advertiser's point of view. An advertiser only pays for the ad when an action has occurred. An action can be a product being purchased, a form being filled, etc. (The desired action to be performed is determined by the advertiser.) </li></ul>
  18. 18. Media Planning Lifecycle
  19. 19. Adsumer Model Cognitive Message Plans Credibility Counter Desires Beliefs Intentions
  20. 20. AdPilot Mission Vision
  21. 21. Swarm Characteristics Entities share common goal Local Interactions Self Organization Autonomy of units Stigmergy Simple rules or units Distributed Large number or efficient size Pulsing of force Flexible and robust Entities share common goal Local Interactions Self Organization Autonomy of units Stigmergy Simple rules or units Distributed Large number or efficient size Pulsing of force Flexible and robust Entities share common goal Local Interactions Self Organization Autonomy of units Stigmergy Simple rules or units Distributed Large number or efficient size Pulsing of force Flexible and robust Swarming
  22. 22. Particle Swarm Optimization <ul><li>Original intent was to simulate the choreography of a bird flock </li></ul><ul><li>Best strategy to find the food is to follow the bird which is nearest to the food </li></ul>Global optimum
  23. 23. 2 4 6 8 10 12 Miles to reach Food AdPilots and Consumers Community Place of Food AdPilot AdPilot AdPilot AdPilot AdPilot AdPilot AdPilot AdPilot AdPilot AdPilot AdPilot AdPilot AdPilot
  24. 24. Model Overview
  25. 25. Q & A