Transcript Ch 15

Chapter Fifteen
Media Planning and
Analysis
Chapter Fifteen 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
Chapter Fifteen Objectives
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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 shelfspace model, and implications for
allocating advertising expenditures over
time
Chapter Fifteen Objectives
• Perform cost-per-thousand
calculations
• Interpret the output from a
computerized media model
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
Saab 9-5
A mass-market advertising campaign was
undertaken with the following objectives:
1. Generate excitement for new 9-5 model line
2. Increase overall awareness for Saab name
3. Encourage customers to visit dealers and
test-drive
4. Retail 11,000 units of 9-5 during
introductory year
Saab 9-5
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Television commercials were run on network TV
and cable in May
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A newspaper campaign began earlier in March with
ads in USA Today and Wall Street Journal
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Ads also ran yearlong in several automobile
magazines
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Internet banner ads were also run throughout the
year
Saab 9-5 Media Plan
• Tactical Plan
Saab 9-5 Magazine Ad
• Magazine ad
Saab 9-5 Dealer Kit
• Dealer
Information
Kit
Saab 9-5 Direct Mail uestionnaire
• Direct mail
questionnaire
Saab 9-5 Direct Mail Response
to Questionnaire
• Response to direct
mail questionnaire
Saab 9-5 Dealer Leads
• Dealer lead
information card
Saab 9-5 Dealer Sales Literature
• Dealer consumer
sales literature
Saab 9-5 Consumer Test Drive
Contest
• Test-drive
invitation and
contest
Saab 9-5 Consumer Test Drive
Contest
• Contest entry card
1-800-COLLECT Media Strategy
• 1-800-Collect media strategy guide
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
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
Overview for the Media Planning
Process
Advertising Strategy
Marketing
Strategy
Advertising
Advertising
Budget
Objectives
Message
Strategy
Media
Strategy
Media Strategy
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Audience Selection
Objective Specification
Media and Vehicle
Media Buying
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
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
The Media-Planning Process
1. Selecting the
target audience
2. Specifying media
objectives
3. Selecting media
categories and
vehicles
4. Buying media
Selecting the Target Audience
Four major factors
(1) Buyographics
(2) Geographic
(3) Demographic
(4) Lifestyle/psychographics
Specifying Media Objectives
1. What proportion of the population should be
reached with advertising message during
specified period (reach)
2. How frequently should audience be exposed
to message during this period (frequency)
3. How much total advertising is needed to
accomplish reach and frequency objectives
(weight)
Specifying Media Objectives
4. How should the advertising budget be
allocated over time (continuity)
5. How close to the time of purchase should
the target audience be exposed to the
advertising message (recency)
6. What is the most economically justifiable
way to accomplish objectives (cost)
Reach
Percentage of target audience that is
exposed to an advertisement, at least
once, during a certain time frame
(usually four weeks)
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:
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1+ (read “one-plus”)
net coverage
unduplicated audience
cumulative audience ( or “cume”)
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
Frequency
Average number of times
an advertisement reaches
the target audience in a
four-week period
Market Factors/Frequency Levels
Market Factor
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Brand History
Brand Share
Brand Loyalty
Purchase Cycle
Usage Cycle
Share of Voice
Type
New
High
High
Short
Short
High
Frequency
High
Low
Low
High
High
High
Message Creative
Factors/Frequency Levels
Message/Creative Factor Type
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Message Complexity Simple
Message Uniqueness Unique
Newness
New
Image Factors
Image
Message variation
Little
Frequency
Low
Low
High
High
Low
Media Factors/Frequency Levels
Media Factor
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Clutter
Editorial Nature
Attentiveness
Scheduling
Number of Media
Type
Low
Consistent
High
Continuous
a Lot
Frequency
High
Low
Low
Low
Low
Weight
How much advertising volume is required to
accomplish advertising objectives
Three weight metrics:
• Gross ratings
• Target ratings
• Effective ratings
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)
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
Determining GRPs in Practice
• 100 GRPs could mean:
100 % exposed once
50 % exposed twice
25% exposed four times
etc.
Weight
Target Rating Points (TRPs)
Adjust a vehicle’s rating to reflect just
those individuals who match the
advertiser’s target audience
Weight
Effective Rating Points (ERPs)
• Effective reach
• Effective frequency
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
How Many Exposures are Needed?
Three-Exposure Hypothesis
The minimum number of exposures
needed for advertising to be effective
is three
How Many Exposures are Needed?
The Efficiency-Index Procedure
Media schedule that generates the
most exposure value per GRP
Efficiency Index Procedure
Exposure Value
Exposure Distribution
Total Exposure Value
Index of Exposure Efficiency
Effective Reach in Advertising Practice
• 3-10 exposures during a mediaplanning period (typically 4 weeks)
• Using multiple media
• Subjective factors must be
considered
Continuity
How advertising is allocated during
the course of an advertising
campaign : how should the media
budget be distributed?
Continuity
• Continuous schedule
• Pulsing
• Flighting
Continuous, Pulsing, and Flighting
Schedules
Ad $ (in thousands)
Advertising Schedules
600
400
200
0
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F M A M
Continuous
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S O
Pulsing
N D (months)
Flighting
Recency Planning
(1)Consumers’ first exposure to an
advertisement is the most powerful
(2)Advetising 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
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
Toward Reconciliation
Illustration of
advertising’s
“Chance Encounter”
and the value of
achieving reach
Cost Considerations
The cost of reaching 1,000 members of
the target audience, excluding those
people who fall outside the target market
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)
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
Tradeoffs
• Tradeoff must be made because
media planners operate under the
constraint of fixed advertising
budget
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
Diet Dr. Pepper Campaign
Market Situation
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Sluggish category growth
Growth of new-age beverages
Price sensitive
Lack of bottler attention and focus
Inadequate distribution
Greater spending by major competitors
Media Strategy
Media plan for
Diet Dr. Pepper
Media Plan for Diet Dr. Pepper
Media plan for
Diet Dr. Pepper
(page 2)
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
Results
• Sales grew by 6.6%
• Consumer brand ratings of Diet Dr.
Pepper surpassed Diet Coke and Diet
Pepsi in several key areas