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Media Planning and Strategy

       Dr. George Belch
   San Diego State University
The Changing Media Landscape

• A few predictions
  • Traditional media budgets will not change
    for years
  • Traditional media will take on a different
    role, with reduced budget share
  • How consumers use media will never be
    the same
  • Synergism/integration is the new model



               © 2010 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
The Changing Media Landscape

• Traditional Media
•    Television, radio, newspapers,
  magazines, outdoor, direct mail
• Traditional but Different
   • Public relations, product placements,
    sponsorships, events
• New Media
   • Internet/interactive, wireless, podcasts,
     search ads, blogs, video games,
    branded content

                © 2010 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
New Media

• Wireless—mobile phones, smartphones
• Branded content – programming developed to
  deliver a message such as webisodes or product
  integration
• Social Media (Facebook, Twitter, YouTube)
• Blogs- online information of specific content
• Video games – brands integrated into games or
  games created for advertainment
• Paid Search - targeted ads appear when people
  type queries into search engines such as Google.
  Advertisers bid for placement.
                  © 2010 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Factors Leading to Changes in Media


• Consumers are busy and time crunched
• Multitasking becoming more prevalent
• New media options/ media proliferation
• Changing lifestyles
• Technology developments/changes
• Media Fragmentation
• Consumer attitudes toward media

             © 2010 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Developing the Media Plan

    Situation                      Marketing                                      Creative
     analysis                     strategy plan                                 strategy plan


                     Setting media objectives

                 Determining media strategy

                Selecting broad media classes

                 Selecting media within class


Media use decision       Media use decision                                  Media use decision
  — broadcast                 — print                                         — other media

                     © 2010 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Media Planning Difficulties


Measurement                                                            Lack of
  Problems                                                           Information



                            Problems
                            in Media
                            Planning



    Time                                                             Inconsistent
  Pressure                                                           Terminology

             © 2010 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Developing a Media Plan




       Analyze the market

    Establish media objectives

Develop/implement media strategy

      Evaluate performance



        © 2010 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Using Index Numbers




               Index Number
              Percentage of users
          in a demographic segment
Index =     Percentage of population                                  X 100
              in the same segment




              © 2010 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Using the Brand Development Index




     Brand Development Index

         Percentage of brand to total
         sales in market
 BDI =                                                               X 100
         Percentage of total
         population in market




             © 2010 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Using the Category Development Index




    Category Development Index

        Percentage of total product
        category sales in market
CDI =                                                                  X 100
        Percentage of total
        population in market




               © 2010 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Using BDI and CDI




  © 2010 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Developing Media Strategies

• Criteria to consider during plan development
  •   The media mix
  •   Target market coverage
  •   Geographic coverage
  •   Scheduling
  •   Reach and frequency
  •   Recency
  •   Creative aspects and mood
  •   Flexibility
  •   Budget


                  © 2010 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
The Media Mix




• Selection considerations
  • Objectives sought
  • Product or service characteristics
  • Budget
  • Individual preferences
               © 2010 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Target Audience Coverage


  Target       Full                             Partial                  Coverage
  Market      Market                            Market                   Exceeding
Proportion   Coverage                          Coverage                Target Market




        Population excluding target market
        Target market
        Media coverage
        Media overexposure

               © 2010 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Scheduling Methods


  Continuity


      Flighting


        Pulsing


Jan   Feb Mar   Apr May Jun                   Jul        Aug Sep Oct Nov Dec




                  © 2010 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Reach and Frequency
A. Reach of One Program                         B. Reach of Two Programs




      Total market                                              Total market
    audience reached                                          audience reached

C. Duplicated Reach of Both                  D. Unduplicated Reach of Both




  Total market reached                                           Total reach less
    with both shows                                             duplicated shows
                   © 2010 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Marketing Factors Determining Frequency


                                    Marketing
                                     Factors




              Brand                         Brand                              Usage
             Loyalty                        Share                              Cycle


   Brand          Share of                                   Purchase                  Target
   History         Voice                                      Cycles                   Group


                       © 2010 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Message Factors Determining Frequency


   Message                                    Message Complexity
  or Creative
    Factors                                   Message Uniqueness

                                 New vs. Continuing Campaigns

                                       Image Versus Product Sell

                                                 Message Variation

                                                             Wearout

                                                  Advertising Units

                © 2010 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Media Factors Determining Frequency


                                Clutter

                                                                          Repeat
 Scheduling
                                                                         Exposure
                              Media
                             Factors
                                                                          Editorial
Attentiveness
                                                                        Environment
                           Number of
                           Media Used

                © 2010 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Creative Aspects and Mood

• Creative aspects
  • Media may drive strategy, or strategy may
    drive media
  • Media and creative departments must
    work closely together

• Mood
  • Media can drive mood
  • Media and vehicle image can carry over
    to the message placed within them

              © 2010 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Flexibility in Media Planning Strategies


        Market
                                                               Market threats
     opportunities



                       Flexibility



    Changes in
                                                                   Availability of
   media or media
                                                                      media
      vehicle

               © 2010 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Television Advantage and Limitations

     Advantages
    Mass coverage

      High reach
                                                            Disadvantages
  Sight, sound, motion
                                                                 Low selectivity
     High prestige
                                                            Short message life

 Low cost per exposure                                      High absolute cost

   Attention getting                                      High production cost

    Favorable image                                                     Clutter

                © 2010 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Radio Advantages and Limitations


    Advantages
    Local coverage

       Low cost
                                                               Disadvantages
    High frequency
                                                                           Audio only
        Flexible
                                                                            Clutter

  Low production cost                                       Low attention getting

Well-segmented audience                                          Fleeting message

                   © 2010 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Magazines Advantages and Limitations



     Advantages
  Segmentation potential

   Quality reproduction
                                                           Disadvantages
 High information content                                  Long lead time for
                                                             ad placement

        Longevity                                                    Visual only

     Multiple readers                                        Lack of flexibility

                 © 2010 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Newspaper Advantages and Limitations
     Advantages
      High coverage

        Low cost

   Short lead time for                                   Disadvantages
      placing ads
                                                                     Short life
   Ads can be placed in
     interest sections
                                                                           Clutter
   Timely (current ads)
                                                       Low attention getting
 Reader controls exposure                         Poor reproduction quality

 Can be used for coupons                         Selective reader exposure

                   © 2010 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Outdoor Advantages and Limitations



                                                            Disadvantages
                                                        Short exposure time

                                                                      Short ads

   Advantages
                                                                      Poor image
  Location specific
                                                             Local restrictions
   High repetition

   Easily noticed
              © 2010 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Evaluation and Follow-Up


How well did these strategies achieve
       the media objectives?


How well did the media plan contribute
to attaining the overall marketing and
      communications objectives?


    Use again, or analyze flaws



         © 2010 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

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Lecture 7-media planning

  • 1. Media Planning and Strategy Dr. George Belch San Diego State University
  • 2. The Changing Media Landscape • A few predictions • Traditional media budgets will not change for years • Traditional media will take on a different role, with reduced budget share • How consumers use media will never be the same • Synergism/integration is the new model © 2010 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  • 3. The Changing Media Landscape • Traditional Media • Television, radio, newspapers, magazines, outdoor, direct mail • Traditional but Different • Public relations, product placements, sponsorships, events • New Media • Internet/interactive, wireless, podcasts, search ads, blogs, video games, branded content © 2010 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  • 4. New Media • Wireless—mobile phones, smartphones • Branded content – programming developed to deliver a message such as webisodes or product integration • Social Media (Facebook, Twitter, YouTube) • Blogs- online information of specific content • Video games – brands integrated into games or games created for advertainment • Paid Search - targeted ads appear when people type queries into search engines such as Google. Advertisers bid for placement. © 2010 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  • 5. Factors Leading to Changes in Media • Consumers are busy and time crunched • Multitasking becoming more prevalent • New media options/ media proliferation • Changing lifestyles • Technology developments/changes • Media Fragmentation • Consumer attitudes toward media © 2010 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  • 6. Developing the Media Plan Situation Marketing Creative analysis strategy plan strategy plan Setting media objectives Determining media strategy Selecting broad media classes Selecting media within class Media use decision Media use decision Media use decision — broadcast — print — other media © 2010 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  • 7. Media Planning Difficulties Measurement Lack of Problems Information Problems in Media Planning Time Inconsistent Pressure Terminology © 2010 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  • 8. Developing a Media Plan Analyze the market Establish media objectives Develop/implement media strategy Evaluate performance © 2010 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  • 9. Using Index Numbers Index Number Percentage of users in a demographic segment Index = Percentage of population X 100 in the same segment © 2010 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  • 10. Using the Brand Development Index Brand Development Index Percentage of brand to total sales in market BDI = X 100 Percentage of total population in market © 2010 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  • 11. Using the Category Development Index Category Development Index Percentage of total product category sales in market CDI = X 100 Percentage of total population in market © 2010 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  • 12. Using BDI and CDI © 2010 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  • 13. Developing Media Strategies • Criteria to consider during plan development • The media mix • Target market coverage • Geographic coverage • Scheduling • Reach and frequency • Recency • Creative aspects and mood • Flexibility • Budget © 2010 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  • 14. The Media Mix • Selection considerations • Objectives sought • Product or service characteristics • Budget • Individual preferences © 2010 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  • 15. Target Audience Coverage Target Full Partial Coverage Market Market Market Exceeding Proportion Coverage Coverage Target Market Population excluding target market Target market Media coverage Media overexposure © 2010 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  • 16. Scheduling Methods Continuity Flighting Pulsing Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec © 2010 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  • 17. Reach and Frequency A. Reach of One Program B. Reach of Two Programs Total market Total market audience reached audience reached C. Duplicated Reach of Both D. Unduplicated Reach of Both Total market reached Total reach less with both shows duplicated shows © 2010 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  • 18. Marketing Factors Determining Frequency Marketing Factors Brand Brand Usage Loyalty Share Cycle Brand Share of Purchase Target History Voice Cycles Group © 2010 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  • 19. Message Factors Determining Frequency Message Message Complexity or Creative Factors Message Uniqueness New vs. Continuing Campaigns Image Versus Product Sell Message Variation Wearout Advertising Units © 2010 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  • 20. Media Factors Determining Frequency Clutter Repeat Scheduling Exposure Media Factors Editorial Attentiveness Environment Number of Media Used © 2010 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  • 21. Creative Aspects and Mood • Creative aspects • Media may drive strategy, or strategy may drive media • Media and creative departments must work closely together • Mood • Media can drive mood • Media and vehicle image can carry over to the message placed within them © 2010 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  • 22. Flexibility in Media Planning Strategies Market Market threats opportunities Flexibility Changes in Availability of media or media media vehicle © 2010 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  • 23. Television Advantage and Limitations Advantages Mass coverage High reach Disadvantages Sight, sound, motion Low selectivity High prestige Short message life Low cost per exposure High absolute cost Attention getting High production cost Favorable image Clutter © 2010 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  • 24. Radio Advantages and Limitations Advantages Local coverage Low cost Disadvantages High frequency Audio only Flexible Clutter Low production cost Low attention getting Well-segmented audience Fleeting message © 2010 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  • 25. Magazines Advantages and Limitations Advantages Segmentation potential Quality reproduction Disadvantages High information content Long lead time for ad placement Longevity Visual only Multiple readers Lack of flexibility © 2010 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  • 26. Newspaper Advantages and Limitations Advantages High coverage Low cost Short lead time for Disadvantages placing ads Short life Ads can be placed in interest sections Clutter Timely (current ads) Low attention getting Reader controls exposure Poor reproduction quality Can be used for coupons Selective reader exposure © 2010 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  • 27. Outdoor Advantages and Limitations Disadvantages Short exposure time Short ads Advantages Poor image Location specific Local restrictions High repetition Easily noticed © 2010 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  • 28. Evaluation and Follow-Up How well did these strategies achieve the media objectives? How well did the media plan contribute to attaining the overall marketing and communications objectives? Use again, or analyze flaws © 2010 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Editor's Notes

  • #5: Relation to Text This slide relates to pages 327-328 of the text. Summary Overview This slide lists some of the predictions being made about the future of media and marketing communications. Use of this Slide This slide can be used to introduce the ever-changing media landscape: Media budgets will not increase for years Traditional media will have a different role, with a reduced budget How consumers use media will never be the same Although traditional media are supposed to be dying, forecasts of their impending doom may be greatly exaggerated: TV is still an effective medium DVRs are not having as negative an impact as predicted Newspapers are being read by more people than previously thought Direct marketing has increased in effectiveness However, all agree that viewers’ media consumption, technology changes and inventions, and so forth will create havoc for media planners. The key may be using a “portfolio model,” which considers synergism between media.
  • #7: Relation to Text This slide relates to page 331 of the text and Figure 10-2. Summary Overview The various steps and activities involved in developing a media plan are presented on this slide. Use of this Slide This slide can be used to introduce and provide an overview of the activities involved in developing a media plan. The plan determines the best way to get the advertiser’s message to the market. The basic goal being to find that particular combination of media that: Enables the marketer to communicate the message in the most effective manner To the largest number of potential customers At the lowest cost More detailed discussion of these activities follows.
  • #12: Relation to Text This slide relates to page 340 of the text and Figure 10-10. Summary Overview This slide shows the Category Development Index (CDI) , which is another index that can help marketers determine where to allocate the media budget. It is computed in a manner similar to the BDI index, except that it uses information regarding the overall product category, rather than for specific brands. This index uses the ratio of the following variables: Percentage of the total product category sales in a given market Percentage of total U.S. population in the given market By performing the mathematical calculation shown on the slide, the advertiser can determine the potential for development of the total product category in a given area. When this information is combined with the BDI, a much more insightful promotional strategy may be developed. Beginning with the CDI, the marketer can first look at how well the product category does in a specific market area. Then a brand analysis would follow to see how well the brand is doing relative to its competitors. Together this information provides a clearer picture of where to allocate the media budget. Use of this Slide This slide can be used to explain the Category Development Index.
  • #15: Relation to Text This slide relates to pages 341-342 of the text. Summary Overview This slide lists a number of criteria that must be considered before making a media selection decision. Use of this Slide Use this slide to discuss how one chooses one medium and one medium vehicle from among the many that are available. While it is possible that only one medium and/or vehicle may be employed, it is much more likely that a mix will be the optimum choice. For example, consider a promotional situation in which a product requires a visual demonstration to be commercially effective. In this case, TV may be the most effective medium. However, if the promotional strategy calls for coupons to stimulate product trials, print media may be necessary. For in-depth information, an Internet website may be best. By combining media, marketers can increase coverage, reach and frequency levels while improving the likelihood of achieving overall communications and marketing goals.
  • #16: Relation to Text This slide relates to pages 342-343 of the text and Figure 10-13. Summary Overview The chart on this slide shows the market coverage possibilities. Use of this Slide This slide can be used to show the various target market coverage scenarios. Developing media strategies involves matching the coverage of the media vehicles to the target market. Chart 1 – shows the target market as a proportion of total population Chart 2 – full coverage of the target market; optimal goal Chart 3 – partial coverage, leaving some customers without exposure Chart 4 – media coverage exceeds target audience; some coverage may be wasted The goal of the media planner is to extend media coverage to as many members of the target audience as possible, while minimizing the amount of excess or wasted coverage.
  • #17: Relation to Text This material relates to page 344 and Figure 10-15 of the text. Summary Overview This slide illustrates the various scheduling options available to advertisers. Use of this Slide The primary objective of media scheduling is to time advertising efforts so that they will coincide with the highest potential buying periods. This slide shows the three scheduling methods available to the media planner: Continuity… continuous pattern of advertising; every day, every week, or every month Flighting… intermittent periods of advertising and no advertising Pulsing… combination of continuity and flighting; continuity is maintained but at certain periods advertising is increased. The optimal schedule can be affected by buying cycles. Continuity… appropriate with food products, household products and products consumed on an ongoing basis. Flighting… well suited to seasonal or other products that are consumed mostly during certain time periods. Pulsing… used for products with little sales variation from period to period, but might see some increase in certain times, such as cold beverages in the hot summer months.
  • #19: Relation to Text
  • #20: Relation to Text This slide relates to Figure 10-22 on page 351 of the text. Summary Overview This slide lists the message or creative factors that impact the determination of frequency levels. Use of this Slide This slide can be used to discuss the various message factors that affect the advertisers’ decisions regarding frequency levels needed to communicate effectively. Message complexity – the simpler the message, the less frequency required Message uniqueness – the more unique the message, the less frequency required New vs. continuing campaign – new campaigns require a higher frequency Image vs. product sell – creating an image requires a higher frequency Message variation – a single message requires less frequency Wearout – higher frequency leads to faster wearout Advertising units – larger units require less frequency
  • #21: Relation to Text This slide relates to Figure 10-22 on page 351 of the text. Summary Overview This slide lists the message or creative factors that impact the determination of frequency levels. Use of this Slide This slide can be used to discuss the various media factors that affect the advertisers’ decisions regarding frequency levels needed to communicate effectively. Clutter – more clutter requires higher frequency Repeat exposures – media that allow for more repeat exposures require less frequency Editorial environment – the more consistent the ad is with the editorial environment the less frequency required Number of media used – fewer media the lower the frequency required Attentiveness – the higher the level of attention achieved by the media, the less frequency required Scheduling – continuous scheduling requires less frequency
  • #22: Relation to Text This slide relates to page 352 of the text. Summary Overview This slide introduces the topics of mood and creativity , and how they work with media. Use of this Slide Use this slide to introduce these basic ideas: A specific creative strategy may require a certain media The medium in which an ad is placed may affect viewers’ perceptions of the ad Consider the image that might be created if your product were to be advertised in the following media: The New York Times versus the National Enquirer A highly rated prime-time TV show versus an old rerun Television versus the Internet
  • #23: Relation to Text This slide relates to pages 352-353 of the text. Summary Overview This slide shows some areas where flexibility in a media strategy may be needed to avoid lost opportunities and address new threats. Use of this Slide This slide can be used to discuss the importance of a flexible media strategy. Because of the rapidly changing market environment, strategies may need to be modified at any time. Market opportunities. Sometimes a market opportunity arises that the advertiser wishes to take advantage of. Market threats. Internal or external factors may pose a threat to the firm, and a change in media strategy is dictated. Availability of media. Sometimes a desired medium (or vehicle) is not available to the marketer. Changes in media or in media vehicles. A change in the medium or in a particular vehicle may require a change in the media strategy.
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