Term Paper for Adver.

Wesleyan University – PhilippinesMaria Aurora, Aurora

COLLEGE OF BUSINESS ADMINISTRATION

IN PARTIAL FULFILLMENT

OF THE REQUIREMENTS TO THE DEGREE OF

BACHELOR OF SCIENCE IN BUSINESS ADMINISTRATION

MAJOR IN MARKETING MANAGEMENT

A TERM PAPER FOR A REPORT

PRESENTED TO:

MADAM CASSEY N. BUENAVENTURAPROFESSOR

WESLEYAN UNIVERSITY- PHILLIPINESMARIA AURORA, AURORA

PRESENTED BY:

LAARNI CATIPONAPRIL HABALA

LORRAINE GOSEHYCHELLE JOY CHAN

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Chapter 10

MEDIA PLANNING AND

STRATEGY

Chapter Objectives:

To understand the key terminology used in media planning.

To know how a media plan is developed.

To know the process of developing and implementing media strategies.

To be familiar with sources of media information and characteristics of media

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SOME BASIC TERMS AND CONCEPT

Media Planning- is the series of decision involved in delivering the promotional message to the

prospective purchasers and/or users of the product or brand.

Guide for Media Selection:

specific Media Objectives

Specific Media Strategies

Medium- is the general category of available delivery systems, which includes broadcast media,

print media, direct marketing, outdoor advertising, and other support media.

Media Vehicle- is the specific carrier within a medium category.

Reach- is a measure of the number of different audience members exposed at least once to a

media vehicle in a given period of time.

Coverage- refers to the potential audience that might receive the message through a vehicle.

Frequency- refers to the number of times the receiver is exposed to the media vehicle in a

specified period.

THE MEDIA PLAN: determines the best way to get the advertiser’s message to the market.

Goal of Media Planning:

To find that combination of media that enables the marketer to communicate the message

in the most effective manner to the largest number of potential customer.

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PROBLEMS IN MEDIA PLANNING:

1. Insufficient Information

-the lack of information is even more of a problem for small advertisers, or smaller

markets, which may be able to afford to purchase the information they require. As a result their

decisions are based on limited or out-of-date data that were provided by the media themselves or

no data at all.

2. Inconsistent Terminologies

-problems arise because the cost bases used by different media often vary and the

standards of measurement used to establish these costs are not always consistent.

3. Time Pressures

-it seems that advertisers are always in a hurry- sometimes they need to be; other times

because they think that they need to be.

4. Difficulty Measuring Effectiveness

-because it is so hard to measure the effectiveness of advertising and promotions in

general, it is also difficult to determine the relative effectiveness of various media or media

vehicles.

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Figure 10-4: Developing the Media Plan

Figure 10-3: Activities involved in developing the Media Plan

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The Situation AnalysisPurpose: To understand the marketing problem. An analysis is made of a company and its competitors on the basis of:

1. Size and share of the total market.

2. Sales history, costs, and profits.

3. Distribution practices4. Methods of selling5. Use of advertising6. Identification of

prospects7. Nature of product

The Marketing Strategy PlanPurpose: To plan activities that will solve one or more of the marketing problems includes the determination of:

1. Marketing objectives2. Product and spending

strategy3. Distribution strategy4. Which elements of the

marketing mix is to be used?

5. Identification of “best” market segments.

The Creative Strategy PlanPurpose: To determine what to communicate through advertisements includes the determination of:

1. How products meet consumer needs?

2. How product can be position in advertisement?

3. Copy themes.4. Specific objectives of

each advertisement.5. Number and sizes of

advertisements

Setting Media ObjectivesPurpose: To translate marketing objectives and strategies into goals that media can accomplish.

Determining Media StrategyPurpose: To translate media goals into general guidelines that will control the planner’s selection and use

of media. The best strategy alternatives should be selected.

Selecting broad Media ClassesPurpose: To determine which broad class of media best fulfills the criteria. Involves comparison and

selection of broad media classes such as newspaper, magazines, radio, television, and others. The analysis is called intermedia comparisons. Audience size is one of the major factors used in comparing the various

media classes.

Market Analysis

Establishment of media objectives

Media strategy development and implementation

Evaluation and Follow-up



To whom shall we advertise?

Index number- is considered a good indicator of the potential of the market. This number is

derived from the formula.

THE FORMULA:

Index= percentage of users in a demographic segment x 100

percentage of population in the same segment

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Selecting Media within classesPurpose: To compare and select the best media within broad classes, again using predetermined criteria.

Involves making decisions about the following:1. If magazines were recommended then which magazines?

2. If television was recommended, then* Broadcast or cable television * If network, which program?

* Network or spot television * If spot, which market?3. If radio or newspapers were recommended, then

** Which markets shall be used?** What criteria shall buyers use in making purchases of local media?

Media use decisions- broadcast

1. What kind of sponsorship, (sole,

shared, participating, or other)?

2. What levels of reach and frequency will be

required?3. Scheduling: On which

days and month are commercials to

appear?4. Placement of spots: In

programs or between programs?

Media use decision- print1. Number of ads to

appear and on which days and months.

2. Placements of ads: Any preferred position within

media?3. Special treatment:

Gatefolds, bleeds, color, etc.

4. Desired reach or frequency levels

Media use decisions- other media

1. Billboards2. Location of markets

and plan of distribution.

3. Kinds of outdoor boards to be used.

4. Other media: Decisions' peculiar to those media.



Example:

Age Segment Population in segment (%) Product use in segment (%) Index

16-24 15.1 18.0 119

25-34 25.1 25.0 100

35-44 20.6 21.0 102

45+ 39.3 36.0 91

What Internal and External Factors are Operating?

Internal Factors

-may involve the size of the media budget, managerial and administrative capabilities, or

the organization of the agency.

External Factors

- may include the economy (the rising costs of media), changes in technology (the

availability of new media), competitive factors, and the like.

Figure 10.8: Organizing the Media Buying Department

Form 1- Employs a product/media focus

Form 2- Places more emphasis on the market itself

Form 3- Organizes around media classes alone

Where to Promote?

-the question of where to promote relates to geographic considerations.

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Using Indexes to Determine where to promote:

1. The survey of buying power index

- publish annually by Sales & Marketing Management magazines.

- It is based on number of factors, including population, effective buying income, and the

total retail sales in the area.

-it helps the marketer to determine which geographic areas to target.

2. The brand development index (BDI)

-helps marketers factor the rate of product usage by geographic area into the decision

process.

THE FORMULA:

BDI= percentage of brand to total US sales in the market x 100

percentage of total US population in the market

Figure 10-10: Calculating BDI



= 50% x 100

16%

= 312

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3. The category development index (CDI)

-is computed in the same manner as the BDI, except it uses information regarding the

product category (as opposed to the brand) in the numerator.

- It provides information on the potential for development of the total product category

rather than specific brands.

THE FORMULA:

CDI= percentage of product category total sales in market x 100

percentage of total US population in market

Figure 10-11: Using CDI and BDI to determine market potential:

CDI= percentage of product category total sales in market x 100

percentage of total US population in market

= 1% x 100

1%

= 100



=2% x 100

1%

=200

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Figure 10-11: Using BDI and CDI indexes

High BDI Low BDI

High CDI High market share

Good market potential

Low market share

Good market potential

Low CDI High market share

Monitor for sales decline

Low market share

Poor market potential

High BDI and High CDI This market usually represents good sales potential for both the

product category and the brand.

High BDI and Low CDI The category is not selling well, but the brand is probably a good

market to advertise in but should be monitored for declining sales.

Low BDI and High CDI The product category shows high potential but the brand is not

doing well, the reason should be determined.

Low BDI and Low BDI Both the product category and the brand are doing poorly, not

likely to be a good place for advertising.

Establishing Media Objectives:

-the goals for the media program and should be limited to those that can be accomplished

through media strategies.

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Example:

* ** Use of broadcast media to provide coverage of 80% of the target market over a six- month

period.

*** Reach 60% of the target audience at least three times over the same six- month period.

*** Concentrate heaviest advertising in winter and spring, with lighter emphasis is summer or

fall.

Developing and Implementing Media Strategies:

1. THE MEDIA MIX

-a wide variety of media and media vehicles are available to advertisers.

-the objectives sought the characteristic of the product or service, the size of the budget,

and individual preferences are just some of the factors that determine what combination

of media will be used.

2. TARGET MARKET COVERAGE

-the media planner must determine which target markets should receive the most media

emphasis.

3. GEOGRAPHIC COVERAGE

-the objective of weighting certain geographic areas more than others make sense, and the

strategy of exerting more promotional efforts in those areas follows naturally.

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4. SCHEDULING

-The primary objective of scheduling is to time promotional effort so that they will coincide with

the highest potential buying times.

Three scheduling methods:

Continuity- refers to a continuous pattern of advertising which may mean every day,

every week, or every month.

flighting - employs a less regular schedule, with intermittent periods of advertising and

non advertising.

Pulsing- continuity is maintained, but at certain times promotional efforts are stepped

up.

Determining Effective Reach:

effect reach

- represents the percentages of vehicles audiences reached at each effective

frequency increment.

average frequency

- Or the average number of times the target audience reached by media schedule

is exposed to the vehicle over a specified period.

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5. CREATIVE ASPECTS AND MOODS

creative aspects

- in some situations, the media strategy to be pursued maybe the driving forced

behind the creative strategy, as the media and creative departments work closely together to

achieved the greatest impact with the audience of the specific media.

mood

- Certain media enhance the creativity of a message because they create a mood

that carries over to the communication.

6. FLEXIBILITY

-an effective media strategy requires a degree of flexibility. Because of the rapidly

changing marketing environment, strategies may need to be modified.

Flexibility may be needed to address the following:

1. Market opportunities

2. Markets threats

3. Availability of media

4. Changes in media vehicles

5. Budget Considerations

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Advertising and promotional costs can be categorized in to two ways:

1. Absolute cost- of the medium or vehicle is the actual total cost required to the placed the

message.

2. Relative cost- refers to the relationship between the priced paid for advertising time or

space and the size of the audience delivered.

Determining relative Cost of media:

following are the cost bases used:

1. Cost per thousand(CPM) four years the Magazine industry has provided cost breakdown on

the basis of cost per thousand people reach.

The Formula:

CPM=Cost of ad space(Absolute cost) x 1000

Circulation

2. Cost per rating point (CPRP)-the broadcast media provide a different comparative cost

figure, referred to as per point or cost per point (CPP).

The Formula:

CPRP=cost of commercial time

program rating

3. Daily inch rate- for newspaper cost effectiveness is based on the daily inch rate, which is the

cost per column inch of the paper.

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The formula:

Television: Cost of 1 unit of time x 1000

Program rating

newspapers: cost of ad space x 1000

circulation

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CHAPTER 11

TV NETWORKS AND ADVERTISERS OVER VIEWER

TELEVISION:

- Said to be the ideal medium for advertising.

- Has the ability to combine visual images, sound, motion, and color presents the

advertisers with the opportunity to develop the most creative and imaginative appeals of

medium.

ADVANTAGES OF TELEVISION

1. CREATIVITY AND IMPACT

The greatest advantage of TV is the opportunity, it provides for presenting the advertising

message. The interaction of sight and sounds offers tremendous creative flexibility and makes

possible dramatic, lifelike representations of products and services.

Example: Print ads are effective for showing a product such as a high-definition television and

communicating information regarding its features.

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2. COVERAGE AND COST EFFECTIVENESS

Television advertising makes it possible to reach large audiences. Nearly everyone,

regardless of age, sex, income, or educational level, watches at least some TV.

3. CAPTIVITY AND ATTENTION

Television is intrusive in the commercials to impose themselves on viewers as they watch

their favorite programs. Unless we make a special effort to avoid commercials, most of us are

expose to thousand of them each year.

4. SELECTIVE AND FLEXIBILITY

Television has often been criticized for being a nonselective medium, since it is difficult

to reach a precisely defined market segment through the use of TV advertising. But some

selectivity is possible due to variation in the composition of audiences as a result of program

content, broadcast time, and geographic coverage.

LIMITATIONS OF TELEVISION

Although television is unsurpassed from a creative perspective, the medium has several

disadvantages that limit or preclude its use by many advertisers. These problems include:

High cost

The lack of selectivity

The fleeting nature of a television message

Commercial clutter

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Limited viewer attention and

Distrust of TV ads

HIGH COST

Despite the efficiency of TV in reaching large audiences, it is an expensive medium in

which to advertise. The high cost of TV stems not only from the expense of buying airtime but

also from the cost of producing a quality commercial. Production cost for a national brand 30

second spot average nearly $400,000 and can reach over a million for more elaborate

commercial.

LACK OF SELECTIVITY

Some selectivity is available in television through variations in programs and cable TV.

However, advertisers who are seeking a very specific, often small, target audience find the

coverage of TV often extends beyond their market, reducing its cost effectiveness. Geographic

selectivity can be a problem for local advertisers such as retailers, since a station bases its rates

on the total market area reaches.

FLEETING MESSAGE

TV commercials usually last only 30 seconds or less and leave nothing tangible for the

viewer examine or consider. Commercials have become shorter and shorter as the demand for a

limited amount of broadcast time has intensified and advertisers try to get more impression from

their media budgets.

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CLUTTER

The problem of fleeting messages and shorter commercials are compounded by the fact

that the advertiser’s message is only one of many spots and other non-programming material

seen during a commercial break, so it may have trouble being noticed.

LIMITED VIEWER ATTENTION

When an advertiser buys time on a TV program, they are not purchasing guaranteed

exposure but rather the opportunity to communicate a message to large numbers of

consumer. But there is increasingly evidence that the size of the viewing audience shrinks

during a commercial break.

Zipping- occurs when viewers fast-forward through commercials as they play back a previously

recorded program.

Zapping- refers to changing channels to avoid commercials.

DISTRUST AND NEGATIVE EVALUATION

To many critics of advertising, TV commercials personify everything that is wrong with

the industry. Critics often single out TV commercials because of their persuasiveness and

the intrusive nature of the medium.

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BUYING TELEVISION TIME:

Network vs. Spot- a basic decision for allocating their TV media budgets to network

versus local or spot announcements.

1. Network Advertising- a common way of advertisers disseminate their messages is

by purchasing airtime from a television network.

2. Spot and Local market

Spot Advertising- refers to the commercials shown on local TV stations, with time

negotiated and purchased directly from the individual stations.

National Spot Advertising- all non-network advertising done by a national

advertiser.

Local Advertising-local advertisers want media whose coverage is limited to the

geographic markets which they do business.

Syndications- a syndicator seeks to sell its program to one station in every market.

1. Off- network Syndicator- shows are very important to local stations because

they provide quality programming with an established audience.

2. First- run Syndications- refers to shows produce specifically for the

syndication market.

3. Advertisers- supported or barrier syndication- is the practice of selling shows

to stations in return for a portion of the commercial time in the show, rather

than cash.

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METHODS OF BUYING TIME:

1. Sponsorship- under sponsorship arrangement, an advertiser assumes

responsibility for the production and usually content of the program as well as

the advertising that appears within it.

2. Participation- most advertisers either cannot afford the costs of sponsorship

or want greater flexibility than sole sponsorship permits.

Advantage of Participation:

a. The advertiser has no long- term commitment to a program and

expenditures can be adjusted to buy whatever number of participation

spots fits within the budget.

b. The TV budget can be spread over a number of programs, thereby

providing for greater reach in the media schedule.

Disadvantage of Participation:

a. The advertiser has a little control over the placement ads, and there

may be problems with availability.

3. Spot Announcement-are brought from the local stations and generally appear

during time period adjacent to network programs, rather than within them.

-are most often used purely local advertisers but are also bought by companies

with no network schedule and by large advertisers that use both network and

spot advertising.

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Selecting Time Periods and Programs:

Another consideration in buying TV time is selecting the right period and program for the

advertisers commercial messages.

Cable Television:

Perhaps the most significant development in the broadcast media has been the expansion

of cable television, cable or CATV (community antenna television) which delivers TV signals

through finer or coaxial wire rather than airways, was developed to provide reception to remote

areas that couldn’t receive broadcast signals.

Superstation-independent local stations that sends there signals nationally via satellite to

cable operators to make their programs available to subscriber.

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