Chapter 13 Global Marketing Communications Decisions I: Advertising and Public Relations.
Media Planning and Decisions. Major Decisions in Advertising.
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Transcript of Media Planning and Decisions. Major Decisions in Advertising.
The Traditional Media Landscape
Satellite radio stations
2
Satellite radio stations
2
Broadcast networks (TV
and cable)100
Broadcast networks (TV
and cable)100
TV stations3,510
TV stations3,510
Consumer magazines5,340
Consumer magazines5,340
Newspapers (daily and weekly)8,100
Newspapers (daily and weekly)8,100
Radio stations13,898
An Overview of Media Planning
Some basic terms and concepts The media plan Problems in media planning
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.
Some Basic Terms and Concepts
Media vehicle (載體 ): 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.
Selecting media within classSelecting media within class
Selecting broad media classesSelecting broad media classes
Determining media strategyDetermining media strategy
Media use decision— print
Media use decision— print
Media use decision— broadcast
Media use decision— broadcast
Media use decision— other media
Media use decision— other media
Selecting media within classSelecting media within class
Determining media strategyDetermining media strategy
Selecting broad media classesSelecting broad media classes
The Media Plan
Setting media objectivesSetting media objectivesSetting media objectivesSetting media objectives
Marketing strategy planMarketing
strategy planCreative
strategy planCreative
strategy planMarketing
strategy planMarketing
strategy planSituation analysis
Situation analysis
Creative strategy plan
Creative strategy plan
Situation analysis
Situation analysis
Problems in Media Planning
Insufficient information The timing of measurement: sweeps periods –
February, May, July, and November. Inconsistent terminologies Time pressures Difficulty measuring effectiveness
Developing the Media Plan
Market analysis Establishment of media objectives Media strategy development and
implementation Evaluation and follow-up
Market Analysis and Target Market Identification
To whom shall we advertise? What internal and external factors are
operating? Where to promote?
To Whom Shall We Advertise?
Secondary information Government, e.g. age, education. Market research companies, e.g. SMRB, MRI, 東方線上 –
E-ICP & CMMS. Index number
Figure 10-5 The high index may be a result of a low denominator.
(Figure 10-6)
Percentage of users
in a demographic segmentIndex 100
Percentage of population
in the same segment
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
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.
Where to promote?
Buying power index Based on population, effective buying income
and retail sales. Brand development index Category development index
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
Category Development Index (CDI)
CDI =
Percentage of product category total sales in market
Percentage of total population in market
X 100
Example
北 中 南 東
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
Brand and Category Analysis
High market shareGood market potential
High market shareGood market potential
High market shareMonitor for sales decline
High market shareMonitor for sales decline
Low market shareGood market potential
Low market shareGood market potentialH
igh
CD
IL
ow
CD
I
Low market sharePoor market potential
Low market sharePoor market potential
High BDI Low BDI
Brand and Category Analysis
The market usually represents
good sales potential for both
the product and the brand.
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 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.
The product category shows
high potential but the brand
isn’t doing well; the reason
should be determined.Hig
h C
DI
Lo
w C
DI Both the product category
and the brand are doing
poorly; not likely to be a good
place to advertise.
Both the product category
and the brand are doing
poorly; not likely to be a good
place to advertise.
High BDI Low BDI
Media Planning Criteria Considerations
The media mix Target market coverage Geographic coverage Scheduling Reach versus frequency Creative aspects and mood Flexibility Budget considerations
Target Audience Coverage
CoverageExceeding
Market
PartialMarket
Coverage
FullMarket
Coverage
TargetMarket
Proportion
Population excluding target marketTarget market
Media coverageMedia overexposure
Three Scheduling Methods
Continuity: a regular pattern of advertising. Flighting: a less regular schedule with
intermittent periods of advertising and nonadvertising.
Pulsing: a combination of the above two methods.
Pros & Cons of the three methods
Three Scheduling Methods
Continuity
Pulsing
Flighting
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Reach versus Frequency
Reach Awareness Trial
Frequency The actual audience for a commercial and a
program Figure 10-18
Reach and FrequencyReach of Two ProgramsReach of One Program
Unduplicated Reach of BothDuplicated Reach of Both
Total market audience reached Total market audience reached
Total reached with both shows Total reach less duplicate
GRPs
Gross rating points (GRPs) = Reach × Frequency Target rating points (TRPs) 100 TRPs = 32% × 3.125 = 37.2% × 2.688 = 44.5%
× 2.247 Relationship between GRPs & awareness
2500 → 70% 1000~2500 → 33% <1000 → 0%
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.
Beyond three exposures within a brand purchase cycle or over a period of four or even eight weeks, increasing frequency continues to build advertising effectiveness at a decreasing rate but with no evidence of decline.
Effects of Reach and Frequency
Although there are general principles with respect to frequency of exposure and its relationship to advertising effectiveness, differential effects by brand are equally important.
Frequency response principles or generalizations do not vary by medium.
The data strongly suggest that wearout is not a function of too much frequency. It is more of a creative or copy problem.
Factors Important in Determining Frequency Levels
Marketing Factors Brand history Brand share Brand loyalty Purchase cycles Usage cycle Competitive share of voice Target group
Factors Important in Determining Frequency Levels
Message or Creative Factors Message complexity Message uniqueness New vs. continuing campaigns Image versus product sell Message variation Wearout Advertising units
Factors Important in Determining Frequency Levels
Media Factors Clutter Editorial environment Attentiveness Scheduling Number of media used Repeat Exposures
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) → magazine Cost per rating point (CPRP) → broadcast media Daily inch rate → newspaper
Determining Relative Cost of Media
Cost of ad space(absolute cost)Circulation
CPM = X 1,000
Cost per thousand (CPM)
Determining Relative Cost of Media
CPRP =Cost of commercial timeProgram rating
Cost per rating point (CPRP)
Example (Magazine)
商業周刊 哈佛商業評論
康健雜誌
Per-page Cost
(封底 )
460,000 300,000 260,000
Circulation 144,318 25,000 65,000
CPM 3,187.4 12,000 4,000
Example (Newspaper)
蘋果日報 爽報
Per-page Cost
(中跨全頁 )
1,450,000 240,000
Circulation 526,578 172,500
CPM 2,753.6 1,391.3
Limitations of CPM
Overestimate Readers per copy Pass-along rate: the number of people who read
the magazine without buying it, e.g. 遠見, 新台灣.
Underestimate Target CPM, e.g. 商業週刊, 哈佛商業評論.
Quantitative (NOT qualitative)
Short message lifeShort message life
High production costHigh production cost
Low selectivityLow selectivity
High absolute costHigh absolute cost
ClutterClutter
Mass coverageMass coverage
High reachHigh reach
Impact of sight, sound and motion
Impact of sight, sound and motion
High prestigeHigh prestige
Low cost per exposureLow cost per exposure
Attention gettingAttention getting
Favorable imageFavorable image
High production costHigh production cost
High absolute costHigh absolute cost
Short message lifeShort message life
Low selectivityLow selectivity
Favorable imageFavorable image
Attention gettingAttention getting
Low cost per exposureLow cost per exposure
High prestigeHigh prestige
Impact of sight, sound and motion
Impact of sight, sound and motion
High reachHigh reach
Mass coverageMass coverage
Television Pros and ConsAdvantagesAdvantages DisadvantagesDisadvantages
ClutterClutter
Fleeting messageFleeting message
Audio onlyAudio only
Low attention gettingLow attention getting
Local coverageLocal coverage
Low costLow cost
High frequencyHigh frequency
FlexibleFlexible
Low production costLow production cost
Well-segmented audienceWell-segmented audience
Low attention gettingLow attention getting
ClutterClutter
Audio onlyAudio only
Well-segmented audienceWell-segmented audience
Low production costLow production cost
FlexibleFlexible
High frequencyHigh frequency
Low costLow cost
Local coverageLocal coverage
Radio Pros and ConsAdvantagesAdvantages DisadvantagesDisadvantages
Visual onlyVisual only
Long lead time for ad placement
Long lead time for ad placement
Lack of flexibilityLack of flexibility
Segmentation potentialSegmentation potential
Quality reproductionQuality reproduction
High information contentHigh information content
LongevityLongevity
Multiple readersMultiple readers
Visual onlyVisual only
Long lead time for ad placement
Long lead time for ad placement
Multiple readersMultiple readers
LongevityLongevity
High information contentHigh information content
Quality reproductionQuality reproduction
Segmentation potentialSegmentation potential
Magazine Pros and ConsAdvantagesAdvantages DisadvantagesDisadvantages
ClutterClutter
Poor reproduction qualityPoor reproduction quality
Short lifeShort life
Low attention gettingLow attention getting
High coverageHigh coverage
Low costLow cost
Short lead time for placing ads
Short lead time for placing ads
Ads can be placed in interest sections
Ads can be placed in interest sections
Timely (current ads)Timely (current ads)
Reader controls exposureReader controls exposure
Can be used for couponsCan be used for coupons
Selective reader exposureSelective reader exposure
Poor reproduction qualityPoor reproduction quality
Low attention gettingLow attention getting
ClutterClutter
Short lifeShort life
Can be used for couponsCan be used for coupons
Reader controls exposureReader controls exposure
Timely (current ads)Timely (current ads)
Ads can be placed in interest sections
Ads can be placed in interest sections
Short lead time for placing ads
Short lead time for placing ads
Low costLow cost
High coverageHigh coverage
Newspaper Pros and ConsAdvantagesAdvantages DisadvantagesDisadvantages
Short adsShort ads
Local restrictionsLocal restrictions
Short exposure timeShort exposure time
Poor imagePoor image
Location specificLocation specific
High repetitionHigh repetition
Easily noticedEasily noticed Poor imagePoor image
Short adsShort ads
Short exposure timeShort exposure time
Easily noticedEasily noticed
High repetitionHigh repetition
Location specificLocation specific
Outdoor Pros and ConsAdvantagesAdvantages DisadvantagesDisadvantages
Poor image (junk mail)Poor image (junk mail)
High cost per contactHigh cost per contact
ClutterClutter
High selectivityHigh selectivity
Reader controls exposureReader controls exposure
High information contentHigh information content
Repeat exposure opportunities
Repeat exposure opportunities
Poor image (junk mail)Poor image (junk mail)
High cost per contactHigh cost per contact
Repeat exposure opportunities
Repeat exposure opportunities
High information contentHigh information content
Reader controls exposureReader controls exposure
High selectivityHigh selectivity
Direct Mail Pros and ConsAdvantagesAdvantages DisadvantagesDisadvantages
Websnarl (crowded access)
Websnarl (crowded access)
Few valid measurement techniques
Few valid measurement techniques
Limited creative capabilities
Limited creative capabilities
Technology limitationsTechnology limitations
Limited reachLimited reach
User selects product information
User selects product information
User attention and involvement
User attention and involvement
Interactive relationshipInteractive relationship
Direct selling potentialDirect selling potential
Flexible message platformFlexible message platform
Few valid measurement techniques
Few valid measurement techniques
Technology limitationsTechnology limitations
Websnarl (crowded access)
Websnarl (crowded access)
Limited creative capabilities
Limited creative capabilities
Flexible message platformFlexible message platform
Direct selling potentialDirect selling potential
Interactive relationshipInteractive relationship
User attention and involvement
User attention and involvement
User selects product information
User selects product information
Internet Pros and ConsAdvantagesAdvantages DisadvantagesDisadvantages