Transcript TOPIC TWO-FOUR: DEVELOPING A MEDIA PLAN

Topic: Marketing Situation Analysis
Competitive Assessment:
3 Components
1. Market shares for all direct and indirect
competitors
2. Competitive (and your) media mix and
expenditure (in $ and % of their budget)
3. Share-of-Voice or Ad Share (brand’s
expenditure as % of all brands’ spending
Topic: Marketing Situation Analysis
Competitive Assessment

You may use any data concerning the product market,
the industry, etc.

For the analysis of the competitive advertising activities,
Use LNA/Media Watch Data

See the competitive media mix & expenditure and SOV

Examine their budget to assess the appropriateness of
your budget

Examine the quarterly spending before you develop your
advertising timing pattern
Topic: Marketing Situation Analysis
Competitive Assessment
1. Competitors & Market
Shares

Direct vs. Indirect Competition:
Brands in the same product class as yours; e.g.,
Brands in one or more different product classes; e.g.,

Limit your list of competitors to the number you
can manage (no more than several)

Competitive Market Share (Market share reporter
in our Library, or Nielsen Scantron)
Topic: Marketing Situation Analysis
Competitive Assessment
2. Competitive Media Mix & Expenditure

Advertising Spending Pattern (in a Table, from
LNA/Media Watch) -- to show, for each competitor (&
you):
How much was spent in Year 2? Year 1? Any increase or
decrease in advertising?
What does that mean for the appropriateness of your
budget?
How much was spent across quarters? Any consistency
or inconsistency in advertising spending pattern?
Why a particular pattern of ad timing? What does
that mean for your future ad timing pattern?
Topic: Marketing Situation Analysis
Competitive Assessment
2. Competitive Media Mix & Expenditure

Raw Expenditures & Media Proportion Analysis (in a
Table, from LNA/Media Watch) -- to show, for each
competitor (& you):
What media types have been used and how much ($)
has been spent in each of the media?
Why certain media are used/popular? Why others not
used or unpopular? What does that mean to your
future media mix?
What percent of the brand budget is spent in each
medium?
Why they allocated the budget that way? What does
that mean for your future media weight allocation?
Topic: Marketing Situation Analysis
2. Media Mix and Expenditure: LNA/Media Watch Data
< Media Mix: $ an % Allocation>
Brand Total
Mag.
Honda $ 58,274 3,031
Civic
%
Sentra $
%
Corolla $
Totals
S.
Nwsp
Mag
.
0
0
Outd
oor
Net TV
Spot
TV
Syn.
TV
Cab
TV
0
13,327
37,702
3742 472
Net
Spot
Radio Radio
0
0
Topic: Marketing Situation Analysis
Competitive Assessment
3. Share-of-voice or Ad Share
(in %)
How big a voice Brand Y has vis-à-vis the
Competition?


Overall:
SOV = Brand Y’s total $ x 100______
All Competitors or Brands total $
In Each Medium:
SOV = Brand Y’s $ in medium x 100______
All Competitors or Brands total $ in medium
Topic: Marketing Situation Analysis
2. Media Mix and Expenditure: LNA/Media Watch Data
< Share of Voice>
Brand Total
Mag.
Honda 58,274 3,031
Civic
%
Sentra
%
Corolla
%
Totals
100%
100%
S.
Nwsp
Mag
.
0
0
Outd
oor
Net TV
Spot
TV
Syn.
TV
Cab
TV
0
13,327
37,702
3742 472
Net
Spot
Radio Radio
0
0
Topic: Marketing Situation Analysis
Competitive Assessment
3. Share-of-Voice (SOV)
Example (see handout)

SOV Corolla/Overall (
=
=
• SOV corolla/Mag =
(
=
/ total??) x 100
%
/ mag total) x 100
%
Topic: Marketing Situation Analysis
Competitive Assessment
Guidelines in Assessing Competitive Efforts
1) From competitive media mix & allocation analysis,
consider their implications for your own media mix
-- what media must be used and why and assess
threats and/or opportunities that might exist in the use
of certain media
2) From SOV analysis, assess your
strengths/weaknesses against the competition, and
see if any change in the mix and/or increase or
decrease in spending for certain media is warranted for
an effective media mix for your brand.
Topic: Marketing Situation Analysis
Competitive Assessment
Discussion/Exercise # 1
Work with your team



Fill out the blanks in the Mix & Expenditure table; use
the LNA data given (you will have more competitors but
let’s just use the two three brands, Civic, Sentra,
Corolla in this exercise)
Fill out the blanks in the Share of Voice table
Based on the info given (covers only a half year of
2000, this is just an exercise. You need to do the same
with the data for an entire year), what can you say
about the competitive situation?
Note: Submit the completed exercise by next class