The Media Business

The word media comes from the Latin word middle.Media carry messages to or from a targeted audience and can add meaning to these messages.

Media TerminologyMedia Planning - A series of decisions involving the delivery of messages to audiences.Media Objectives - Goals to be attained by the media strategy and program.Media Strategy - Decisions on how the media objectives can be attained.Media - The various categories of delivery systems, including broadcast and print media.Broadcast Media - Either radio or television network or local station broadcasts.

Media TerminologyPrint Media - Publications such as newspapers, magazines, direct mail, outdoor, and the like.Media Vehicle - The specific message carrier, such as the Washington Post or Tonight Show.Coverage - The potential audience that might receive the message through the the vehicle.Reach - The actual number of individual audience members reached at least once by the vehicle.Frequency - The number of times the receiver is exposed to vehicle in a specific time period.

Differences Between Levels of Message Involvement and Number of Responses

Media Classifications

Most mass media guarantee only the opportunity for a large audience to be exposed to a brand.Communication vehicles are specific publications, networks, channels, stations, and programs that make up a medium.

Media Classification Levels

Media IntrusivenessMedia vary in their degree of intrusiveness.Ways to reduce intrusiveness include:Chose media in which the target audience is interested in the product.Ask customers what type of information they would like to receive, in what way, and when.

Relative Degrees ofMedia Intrusiveness

Print MediaPrint media include:NewspapersMagazinesDirectoriesMail brochuresMailPackagingAll other forms, which are produced by printing and are relatively permanent

Newspapers CharacteristicsAdvantagesHigh coverageLow costShort lead time for placing adsAds can placed in interest sectionsTimely (current ads)Reader controls exposureCan be used for couponsDisadvantagesShort lifeClutterLow attention-getting capabilitiesPoor reproduction qualitySelective reader exposure

Magazines CharacteristicsAdvantagesSegmentation potentialQuality reproductionHigh information contentLongevityMultiple readersDisadvantagesLong lead time for ad placementVisual onlyLack of flexibility

Directories

A directory is both a reference and an advertising medium.The most widely known is the Yellow Pages.Yellow Pages advertising is often the primary or only form of advertising used by many small, local retailers.A weakness of the Yellow Pages is that they are printed only once a year.

Broadcast Media

Broadcast media include radio and television.Broadcast media differs from print in that people often do other things while listening or viewing, so messages are fleeting.Broadcast commercials are more intrusive than print ads.

BMG

Radios Daily Reach byDaypart for Adults 18+

Radio CharacteristicsAdvantagesLocal coverageLow costHigh frequencyFlexibleLow production costsWell-segmented audiencesDisadvantagesAudio onlyClutterLow attention gettingFleeting message

Television CharacteristicsAdvantagesMass coverageHigh reachImpact of sight, sound, and motionHigh prestigeLow cost per exposureAttention gettingFavorable mageDisadvantagesLow selectivityShort message lifeHigh absolute costHigh production costsClutter

Outdoor CharacteristicsAdvantagesLocation specificHigh resolutionEasily noticedDisadvantagesShort exposure time requires short adPoor imageLocal restrictions

INTERACTIVEA VARIETY OF MEDIA THAT ALLOWS THE CONSUMER TO INTERACT WITH THE SOURCE OF THE MESSAGE, ACTIVELY RECEIVING INFORMATION AND ALTERING IMAGES, RESPONDING TO QUESTIONS, AND SO ON.

INTERACTIVE MEDIAAUDIOTEXAUTOMATED TELEPHONE INFORMATION SERVICESCD-ROMFAX ON DEMANDINTERACTIVE TVINTERNETKIOSKSAVAILABLE IN HOTELS, SHOPPING MALLSONLINE SERVICESAMERICAN ONLINE, PRODIGYSCREEN TELEPHONYTELEPHONES EQUIPPED WITH KEYBOARD TO ENTER AND ACCESS DATA

Internet / Interactive Media CharacteristicsAdvantagesUser selects product informationUser attention and involvementInteractive relationshipDirect selling potentialFlexible message platformDisadvantagesLimited creative capabilitiesWeb snarl (crowded access)Technology limitationsFew valid measurement techniquesLimited reach

Direct Mail CharacteristicsAdvantagesHigh selectivityReader controls exposureHigh information contentOpportunities for repeat exposuresDisadvantagesHigh cost/contactPoor image (junk mail)Clutter

Developing the Media PlanSituation Analysis

MARKET ANALYSIS AND TARGET MARKET IDENTIFICATIONADVERTISING TARGETSIMMONS MARKET RESEARCH BUREAU--AUDIENCE SIZE AND COMPOSITION--100 PUBLICATIONS, >800 CONSUMER PRODUCTS AND SERVICESMEDAIMARK RESEARCH, INC--DEMOGRAPHIC & PRODUCT USAGE, PROVIDES LIFESTYLE INFORMATION & MEDIA USAGE CHARACTERISTICS OF THE POPULATIONWHERE TO PROMOTEBUYING POWER INDEX--SALES & MARKETING MGT MAGAZINEBRAND DEVELOPMENT INDEXCATEGORY DEVELOPMENT INDEX

ESTABLISHING MEDIA OBJECTIVESGOALS FOR THE MEDIA PROGRAMLIMITED TO THOSE THAT CAN BE ACCOMPLISHED THROUGH MEDIAEXAMPLESUSE BROADCAST MEDIA TO PROVIDE COVERAGE OF 80 % OF THE TARGET MARKET OVER A SIX MONTH PERIODREACH 60% OF THE TARGET AUDIENCE AT LEAST THREE TIMES OVER THE SAME SIX-MONTH PERIOD

MARKET ANALYSIS AND TARGET MARKET IDENTIFICATION--continuedINTERNAL FACTORS--SIZE OF MEDIA BUDGET, MGT & ADMIN CAPABILITIES, ORGANIZATION OF THE AGENCYEXTERNAL FACTORS--ECONOMY, RAISING COST OF MEDIA, TECHNOLOGYSURVEY OF BUYING POWER INDEX--POTENTIAL OF A METRO AREA

MARKET ANALYSIS AND TARGET MARKET IDENTIFICATION--continuedBRAND DEVELOPMENT INDEX--COMPARES % OF THE BRANDS TOTAL U.S. SALES IN A GIVEN MARKET AREA WITH THE % OF TOTAL POPULATION IN THE MARKET TO DETERMINE SALES POTENTIALCATEGORY DEVELOPMENT INDEX--POTENTIAL FOR DEVELOPING THE TOTAL PRODUCT CATEGORY

EVALUATION AND FOLLOW-UPHOW WELL DID THESE STRATEGIES ACHIEVE THE MEDIA OBJECTIVES?HOW WELL DID THIS MEDIA PLAN CONTRIBUTE TO ATTAINING THE OVERALL MARKETING AND COMMUNICATIONS OBJECTIVES

Media Planning DifficultiesLack of informationInconsistent termsSerious time pressureMeasurement problems

Media Planning Criteria ConsiderationsThe media mixTarget market coverageGeographic coverageSchedulingReach versus frequencyCreative aspects and moodFlexibilityBudget considerations

Brand and Category Analysis

BRAND DEVELOPMENT INDEXA BDI IS CALCULATED BY DIVIDING THE PERCENT OF SALES A MARKET ACCOUNTS FOR, BY THE MARKETS PERCENTAGE OF POPULATION OF THE U.S. AN INDEX OF 100 WOULD INDICATE A FLAT MARKET--SALES AND POPULATION ARE EQUAL. AN INDEX OF LESS THAN 100 WOULD INDICATE A POOR SALES MARKET--SALES ARE LESS THAN THE POPULATION, AND AN INDEX OVER 100 INDICATES A STRONG SALES MARKET

% POPULATION% SALESBDICOMMENTS6.28 6.28 100FLAT SAL MKT6.84 10.71 157STRONG SAL MKT10.06 8.34 83WEAK SAL MKT

Brand and Category AnalysisPercentage of product category total sales in marketPercentage of total U.S. population in marketCDI =X 100Brand Development Index

Brand and Category AnalysisHigh market shareGood market potentialHigh market shareMonitor for sales declineLow market shareGood market potentialHigh CDILow CDILow market sharePoor market potentialHigh BDILow BDI

Brand and Category AnalysisThe market usually represents good sales potential for both the product and the brand.The category isnt 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 isnt doing well; the reason should be determined.High CDILow CDIBoth the product category and the brand are doing poorly; not likely to be a good place to advertise.High BDILow BDI

Target Audience CoveragePopulation excluding target marketTarget marketMedia coverageMedia overexposureCoverageExceedingMarketPartialMarketCoverageFullMarketCoverageTargetMarketProportion

Three Scheduling MethodsJanFebMarAprMayJunJulAugSepOctNovDec

Reach and FrequencyUnduplicated Reach of BothDuplicated Reach of Both

Graph of Effective ReachExposuresPercentage Reach

Marketing Factors Important toDetermining FrequencyBrand historyBrand shareBrand loyaltyPurchase cyclesUsage cycleCompetitive share of voiceTarget group

Message or CreativeFactors Important toDetermining FrequencyMessage complexityMessage uniquenessNew vs. continuing campaignsImage versus product sellMessage variationWearoutAdvertising units

Media Factors Important toDetermining FrequencyClutterEditorial environmentAttentivenessSchedulingNumber of media usedRepeat Exposures

Determining RelativeCost of MediaCost of ad space(absolute cost)CirculationCPM =X 1,000Cost per thousand (CPM)

Determining RelativeCost of MediaCPRP =Cost of commercial timeProgram ratingCost per rating point (CPRP)

COST OF MEDIAMAGAZINEPER-PAGE COST$156,000CIRCULATION4.0MMCALCULATION OF CPM156,000 X 1,000 4,000,000CPM$39.00BROADCASTCOST PER-PER SPOT AD$3,500RATING 11REACH (HOUSEHOLDS)109,000CALCULATION$3,500/11CPRP $318.18

COST OF MEDIA--CONTINUEDNEWSPAPERCOST PER PAGE $32,205COST PER INCH$268.60CIRCULATION 499,000CALCULATIONCPMPAGE COST X 1,000 CIRCULATIONCPM$32,205 X 1,000 499,000 $64.54

CHARACTERISTICS OF MEDIAMATCHING OF MEDIA TO MARKETS

EACH MEDIA HAS ITS OWN CHARACTERISTICS THAT MAKES IT BETTER OR WORST FOR ATTAINING SPECIFIC OBJECTIVES