MKTG_2202_-_Lec_13_-_Ch_10_Media_Planning

Page 3: Overview of Media Planning

• Involves a series of decisions for successful promotion message delivery.

• Critical decisions include:

  • Where the message will be shown.

  • When the message will be aired.

  • How often the audience will see the message.

• Planning is iterative; decisions may be modified or dropped over time.

Page 4: Media Plan Terminology

• VEHICLE Class or Type: Defines the media tools used.

  • Advertising options:

    • Broadcast: Radio (Virgin Radio, MOVE 103.5), Television.

    • Print: Newspapers, Magazines (Macleans, Flare).

Page 5: Media Plan Terminology (cont.)

• Internet options:

  • Social Media: Photo Sharing (Flickr), Social Networking (Facebook, LinkedIn).

  • Blogs & News Sites: Offline Publishers, News Aggregators (Huffington Post, Yahoo).

Page 6: Media Planning Challenges

• Issues Include:

  • Inconsistent terminology across platforms.

  • Insufficient information impacting decisions.

  • Difficulty in measuring media effectiveness.

  • Need for flexibility in response to an evolving media landscape.

Page 7: Media Mix

• Definition: Variety of media options available for marketing.

• Decision Factors:

  • Marketing objectives.

  • Characteristics of product/service.

  • Budget constraints.

  • Preferences of the target audience.

Page 8: Target Audience Coverage

• Target Market Proportion: Calculating market coverage is essential.

  • Full Market Coverage: Reaching all potential consumers.

  • Partial Market Coverage: Targeting selected consumers.

  • Managing media coverage to minimize waste while aiming for maximum coverage.

Page 9: Geographic Coverage

• Key Decision: Optimize advertisement spending geographically.

• Useful Marketer Calculations:

  • Brand Development Index (BDI): Measures brand performance in the market.

  • Category Development Index (CDI): Measures category performance in the market.

Page 10: Geographic Coverage Analysis

• Using BDI and CDI to assess market potential effectively.

Page 11: Geographic Coverage Summary

• Category comparisons based on BDI and CDI:

  • High BDI, High CDI: Good market potential.

  • High BDI, Low CDI: Monitor for sales decline.

  • Low BDI, High CDI: Investigate reasons for poor brand performance despite category potential.

  • Low BDI, Low CDI: Not favorable for advertising investment.

Page 12: Scheduling

• Objective: Align promotional activities with peak buying times.

• Types of Scheduling:

  • Continuity: Continuous exposure.

  • Flighting: Intense advertising during specific periods.

  • Pulsing: Combination of both methods.

Page 13: Scheduling Advantages & Disadvantages

Continuity

• Advantages:

  • Constant consumer reminder.

  • Full buying cycle coverage.

  • Allows media discounts and prioritization.

• Disadvantages:

  • Higher costs; risk of overexposure.

  • Limited media allocation possible.

• Examples: Milk, Laundry Detergents, Toothpaste.

Flighting

• Advantages:

  • Cost-effective during peak buying periods.

  • Allows multiple media platforms usage.

• Disadvantages:

  • Risk of message wearout.

  • Potential lack of awareness during off-peak periods.

• Examples: Snow Skis, Soup, Lawn Fertilizers.

Pulsing

• Combines strengths of both previous methods.

• Advantages:

  • Effective for non-seasonal products.

• Examples: Automobiles, Financial Institutions.

Page 14: Reach and Frequency

• Reach: Extent of audience exposure.

• Frequency: Number of exposures per individual.

Page 15: Understanding Reach

• Essential for exposing potential buyers to promotional messages.

• Difficult to quantify required reach for achievable awareness or intention changes.

• One exposure to the vehicle = reach.

Page 16: Understanding Frequency

• Number of times an audience interacts with media vehicles.

• Determining impact frequency is complex; needs creativity, audience involvement, and noise consideration.

Page 17: Effective Reach Assessment

• Relationship between total exposure and effective exposure.

• GRPS: Gross Rating Points measure overall audience reach.

• ERPS: Effective Rating Points denote the actual audience that is engaged.

Page 18: Gross Rating Points (GRPs)

• Calculation: GRP = Reach x Frequency

• Reflects the total audience the media schedule can reach.

Page 19: GRPs Explained

• Example Calculation:

  • Last week’s share: 8% during a show.

  • Ad run twice:

  • Reach: 8, Frequency: 2, Results in GRP: 16.

Page 20: Marketing Factors Influencing Frequency

• Factors include:

  • Target group dynamics.

  • Brand loyalty and share of voice.

  • Purchase cycles and brand share analysis.

Page 21: Message Factors Influencing Frequency

• Considerations:

  • Message complexity and uniqueness.

  • Differentiation between new and existing campaigns.

  • Variations and wearout effects.

Page 22: Media Factors Influencing Frequency

• Factors include:

  • Mix of media used and audience attentiveness.

  • Scheduling and frequency of repeat exposures.

Page 23: Media Vehicle Selection

• After selecting the medium, the specific vehicle is chosen to enhance ad creativity and retention.

• Decisions include:

  • Placement within the vehicle.

  • Timing of ad (morning/evening) and format (banner/pre-roll).

Page 24: Relative Cost Estimates

• Cost strategy effectiveness is based on message delivery at the lowest possible cost.

• Absolute Cost: Total ad placement costs.

• Relative Cost: Cost per the reach of audience.

Page 25: Relative Cost Calculations

• CPM: Cost Per Thousand = Cost of ad space / Circulation x 1,000.

• CPRP: Cost Per Ratings Point = Cost of commercial time / Program rating.

Page 26: Blocking Chart

• A scheduling tool summarizing media strategies and tactical decisions in a calendar format for media buyers.

Page 27: Blocking Chart Example: Knorr

• Digital phases include various targeted media strategies from pre-roll ads to social media promotions across months.

Page 28: Media Budgeting

• Balancing available budget with what is necessary to achieve objectives.

• Clear understanding of allocated dollars towards each goal.

Page 29: Managerial Approaches in Budget Setting

Top-Down Budgeting

• Set spending limits from top-level management.

• Ensure promotion objectives align with budgets.

Bottom-Up Budgeting

• Activities aligned with objectives planned first.

• Budget is then adjusted based on expected costs.

Page 30: Top-Down Budgeting Methods

• Methods include:

  • Competitive Parity: Matching competitor spending.

  • Arbitrary Allocation: Setting budget without clear rationale.

  • Return on Investment: Budget based on expected returns.

  • Percentage of Sales: Budget is a percentage of sales revenue.

  • Affordable Method: Budget based on what can be afforded.

Page 31: The Objective & Task Method

• Set clear objectives (e.g., awareness among 20% of target).

• Estimate costs based on tasks required (e.g., TV, radio advertising).

• Determine specifics for execution (e.g., ad placements on targeted stations).