Transcript TOPIC TWO-FOUR: DEVELOPING A MEDIA PLAN

Topic: Marketing Situation Analysis
Consumer Analysis
Sales Potential Indicators: CDI & BDI = ROI

CDI: Category Development Index, indicating the
product category sales potential in a demo group or geo
market

BDI: Brand Development Index, indicating the
brand sales potential in a demo group or geo market
100 = Average >100 Above average
< 100 Below average potential

What does BDI of 145 for age group 18-24 mean? If
18-24 has also CDI of 125, what can you say about the
consumer segment?

Topic: Marketing Situation Analysis
Consumer Analysis
Sales Potential Indicators:
CDI & BDI = ROI

If you have sales data available
by consumer segment: The following definitions
apply
CDI
= % of Category Sales / % of Persons
BDI
= % of Brand Sales / % of Persons
Topic: Marketing Situation Analysis
Consumer Analysis
Sales Potential Indicators –CDI, BDI

When sales data are NOT available
Use the product or brand usage index in ‘D’ column of
MRI or SMRB data, defined as:
CDI
= % of Category Users / % of Persons
BDI
= % of Brand Users / % of Persons
Topic: Marketing Situation Analysis
Consumer Analysis
Sales Potential Indicators –CDI & BDI
MRI Index (in Product Category User report):

for a demo group
=
% of All Brand
Users In US
/
% of All
Persons in US
B column (i.e., Down or Vertical %)
=
X 100
# of Persons in 18-24
/ # of Persons in All ages
Topic: Marketing Situation Analysis
Consumer Analysis
Sales Potential Indicators –CDI & BDI
MRI Index (in Brand User report): for a demo group

=
% of All Brand
Users In US
/
% of All
Persons in US
B column (i.e., Down or Vertical %)
=
X 100
# of Persons in 18-24
/ # of Persons in All ages
Topic: Marketing Situation Analysis
Consumer Analysis
 How Is MRI/Simmons Index used?
- Index is an important consideration, but…
Does the segment with the highest index have the
greatest sales volume potential?
Why or why not?
Example:
Age
% Users
% Pop
Index
Calculation
18-24
17
13
131
(17/13)X100
25-34
18
20
90
(18/20)X100
35-44
33
36
92
(33/36)X100
Topic: Marketing Situation Analysis
Consumer Analysis
• If consumer segments should be analyzed for
sales volume potential:
---Use Both User Population Size and Index
Weigh User Size by Index
Volume Potential 18-24
=
.17 X 131
=
22.3
Volume Potential
=
.33 X
=
30.4
35-44
92
Note: the volume potential above is not actual sales volume but
estimated composite weight that takes on meaning only when
compared to other composite weights
Topic: Marketing Situation Analysis
Consumer Analysis
Discussion #2: Use MRI data (new import
car buyers/leasers) to identify:
a) the potential targets for Corolla
(described demographically and
geographically), and
b) what media they tend to use heavily and
could thus be included into your media
mix:
Note: You need to turn in the outcome by the week following
this discussion
Topic: Marketing Situation Analysis
Consumer Analysis
a)Identifying potential targets

Identify up to four demographic characteristics that
clearly distinguish between good and poor prospects
How?

Look at the index column and see which variable
shows the largest amount of difference between the
highest index group and the lowest group; pick the
top variables (only if the difference is significant, 15
points or more)
Topic: Marketing Situation Analysis
Consumer Analysis
 For each of the top variables, do the following
1) identify and rank those (e.g., age, gender, etc.)
groups with above average potential
2) consider also the size of the user population
(Projected ‘000 and Percent Down) to see if the
segment is likely generate too big a sales volume to
ignore

Using what you learned from the above, draw and
justify your conclusion as to who are ideal targets.
Topic: Marketing Situation Analysis
Consumer Analysis
b) what media they tend to use heavily and could
thus be included into your media mix

Identify media that are more likely to be used heavily
by the defined targets (so, once you identify the target,
run the MRI using that target to find the media heavily
used by them)
How to find the media ? The tercile and quintile report
on the media use by the product or brand
users/consumers
Topic: Marketing Situation Analysis
Consumer Analysis

Quintile analysis: consumers are divided into five
groups of (almost) equal size based on the amount
of usage of the medium: Quintile 1 = heaviest usage
20%, Quintile 5 = Least usage 20%

Tercile Analysis: consumers are divided into three
groups of (almost) equal size: Tercile 1 = heaviest
usage 33%

Look at the index column for different media categories
shown (e.g., daily papers, outdoor, TV, etc.) and
see in what media your consumers are likely to
load heavily on the quintile 1 & 2 or tercile 1
(heavy usage of the medium)
Topic: Marketing Situation Analysis
Consumer Analysis

See the handout for new import car buyers/leasers

What media deliver well to the new import car
buyers/leasers and should thus be included in your
media mix?
i.e., what media do your target heavily use?

What media do not deliver efficiently?

You may also use information from Ad Week’s
“Marketer’s Guide to Media” to evaluate the
delivery of each medium to your target (if described
in age or some general demographic characteristics)