2. 2
Promotional Strategy
MKT4230
2
The Changing Media Landscape
These are some of the predictions being made about the future of media and marketing
communications.
• 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.
Textbook
Pages 327 - 328
3. 3
Promotional Strategy
MKT4230
3
Factors Leading to Changes in Media
No one thing is leading to change, as may have happened with TV overtook radio. Rather,
changes is being driven by a combination of things… changing lifestyles, changing
technology, and changing attitudes.
Textbook
Pages 293 - 295
• Consumers are busy and time crunched
• Multitasking becoming more prevalent
• New media options/ media proliferation
• Changing lifestyles (cocooning)
• Technology developments/changes
• Media Fragmentation
• Consumer attitudes toward media
4. 4
Promotional Strategy
MKT4230
4
Media Terms and Concepts
The basic terms and concepts of media planning and strategy:
Textbook
Pages 329 - 331
A series of decisions involving the delivery of
messages to audiences
Media
Planning
Goals to be attained by the media strategy and
program
Media
Objectives
Decisions on how the media objectives can be
attained
Media
Strategy
General categories of delivery systems, including
broadcast and print media
Medium
5. 5
Promotional Strategy
MKT4230
5
Media Terms and Concepts
The basic terms and concepts of media planning and strategy:
Textbook
Pages 329 - 331
The specific carrier within a medium category
Media
Vehicle
Number of different audience members exposed at
least once in a time periodReach
The potential of audience that might receive the
message through the vehicle
Coverage
Number of time the receiver is exposed to the media
vehicle in a time period
Frequency
6. 6
Promotional Strategy
MKT4230
6
Developing the Media Plan
The various steps and activities involved in developing a media plan:
Textbook
Pages 331 / Figure 10 - 2
Selecting media within class
Selecting broad media classes
Determining media strategy
Media use decision
(print)
Media use decision
(broadcast)
Media use decision
(other media)
Setting media objectives
Marketing
strategy plan
Situation
analysis
Creative
strategy plan
7. 7
Promotional Strategy
MKT4230
7
Media Planning Difficulties
Problems that contribute to the difficulty of developing the media plan and thus may reduce
its effectiveness.
Textbook
Pages 319 - 321
Measurements
Problems
Time
Pressure
Lack of
Information
Inconsistent
Terminology
Problems in
Media Planning
8. 8
Promotional Strategy
MKT4230
8
Developing a Media Plan
The various steps involved in the media planning process:
Textbook
Pages 333 - 334 / Figure 10 - 4
Evaluate performance
Analyze the market
Establish media objectives
Develop/implement media strategy
9. 9
Promotional Strategy
MKT4230
9
Using Index Numbers
The index number, determined by using this formula, is a good indicator of market potential.
An index number over 100 means use of the product is proportionately greater in that
segment than in one that is average (100) or less than 100.
Textbook
Pages 334 - 335
Percentage of users
in a demographic segment
Percentage of population
in the same segment
Index = X 100
Index Number
10. 10
Promotional Strategy
MKT4230
10
Using the Brand Development Index
Brand Development Index helps marketers factor the rate of product usage by geographic
area into the decision of where to allocate their media budget. The higher the BDI number,
the greater the potential that exists.
Textbook
Pages 338 - 340
Percentage of brand to total U.S.
sales in market
Percentage of total U.S.
population in market
BDI = X 100
Brand Development Index
11. 11
Promotional Strategy
MKT4230
11
Using the Category Development Index
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.
Textbook
Pages 340 / Figure 10 - 10
Percentage of total product
category sales in market
Percentage of total U.S.
population in market
CDI = X 100
Category Development Index
12. 12
Promotional Strategy
MKT4230
12
Test Your Knowledge
In calculating both the brand development index (BDI) and the category development index
(CDI), a media planner obtains the following results: Low BDI and High CDI. What do these
results imply?
A. High market share; good market potential
B. Low market share; good market potential
C. High market share; monitor for sales decline
D. Low market share; poor market potential
13. 13
Promotional Strategy
MKT4230
13
Using BDI and CDI
As the chart shows, high BDI and CDI means there is greater market share and greater
market potential. The lower these two indices are, the lower the market potential. Knowing
this information helps marketers decide where their ad dollars should be spent to achieve
the desired outcome.
Textbook
Pages 340 - 341 / Figure 10 - 11
14. 14
Promotional Strategy
MKT4230
14
Developing Media Strategies
Criteria to consider during plan development:
Textbook
Pages 341 / Figure 10 - 12
• The media mix
• Target market coverage
• Geographic coverage
• Scheduling
• Reach and frequency
• Recency
• Creative aspects and mood
• Flexibility
• Budget
15. 15
Promotional Strategy
MKT4230
15
The Media Mix
There is a number of criteria that must be considered before making a media selection
decision. We choose 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.
Textbook
Pages 341 - 342
16. 16
Promotional Strategy
MKT4230
16
Target Audience Coverage
There are various target market coverage scenarios. Developing media strategies involves
matching the coverage of the media vehicles to the target market. 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.
Textbook
Pages 342 – 343 / Figure 10 -13
Target
Market
Proportion
Full
Market
Coverage
Partial
Market
Coverage
Coverage
Exceeding
Target Market
Population excluding target market
Target market
Media coverage
Media overexposure
17. Weighting certain geographic area more than others may make sense, depending on the
product or service being marketed and the goal of the advertising campaign. Snow skiing is
more popular in some parts of the country than in others. It would not be wise to promote
skis in areas of low interest, unless the goal is to increase interest. And while it may be
possible to promote an interest in skiing in Texas, a notable increase in sales is not likely,
given the market’s distance from snow.
17
Promotional Strategy
MKT4230
17
Geographic Coverage
Textbook
Pages 343
18. 18
Promotional Strategy
MKT4230
18
Scheduling Methods
The primary objective of media scheduling is to time advertising efforts so that they will
coincide with the highest potential buying periods. These are 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.
Textbook
Pages 344 / Figure 10 - 15
Continuity
Pulsing
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Flighting
19. 19
Promotional Strategy
MKT4230
19
Reach and Frequency
Concepts associated with reach and frequency.
Textbook
Pages 345 = 347 / Figure 10 - 18
A. Reach of One Program B. Reach of Two Programs
C. Duplicated Reach of Both D. Unduplicated Reach of Both
Total market audience reached Total market audience reached
Total market reached with both shows Total reach less duplicated shows
20. 20
Promotional Strategy
MKT4230
20
Ratings Points
To determine how much advertising is necessary to accomplish the advertiser’s objectives,
marketers rely on ratings (the number of people reached) and frequency (the average
number of times exposed) figures.
Textbook
Pages 347 - 348
Gross Ratings Points (GRPs)
• GRP = Reach X Frequency
Target Ratings Points (TRPs)
• The number of people in the primary target audience the media buy will reach
• The number of times they will be reached
22. 22
Promotional Strategy
MKT4230
22
Marketing Factors Determining Frequency
This is a list of marketing factors that impact the determination of frequency levels.
Textbook
Pages 351 / Figure 10 - 22
Target GroupBrand History Share of Voice
Purchase
Cycles
Brand Loyalty Brand Share Usage Cycle
Marketing Factors
23. 23
Promotional Strategy
MKT4230
23
Message Factors Determining Frequency
List of the message or creative factors that impact the determination of frequency levels.
Textbook
Pages 351 / Figure 10 - 22
Message Complexity
Message Uniqueness
New vs. Continuing Campaigns
Image Versus Product Sell
Message Variation
Wearout
Advertising Units
Message
or Creative Factors
24. 24
Promotional Strategy
MKT4230
24
Media Factor Determining Frequency
The various media factors that affect the advertisers’ decisions regarding frequency levels
needed to communicate effectively.
Textbook
Pages 351 / Figure 10 - 22
Clutter
Number of Media
Used
Repeat Exposure
Editorial Environment
Scheduling
Attentiveness
Media Factors
25. 25
Promotional Strategy
MKT4230
25
Creative Aspects and Mood
There are two 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
Textbook
Page 352
26. 26
Promotional Strategy
MKT4230
26
Flexibility in Media Planning Strategies
Here are some areas where flexibility in a media strategy may be needed to avoid lost
opportunities and address new threats.
Textbook
Page 352 - 353
Market opportunities Market threats
Availability of media
Changes in media or media
vehicle
Flexibility
27. 27
Promotional Strategy
MKT4230
27
Test Your Knowledge
Why should an effective media strategy be flexible?
A. Due to the potential development of new advertising media
B. Due to an alteration of a competitor’s media schedule
C. Due to the unavailability of the desired medium
D. Due to a drop in the ratings of a show previously on the media schedule
E. Due to all of the above
28. 28
Promotional Strategy
MKT4230
28
Determining Relative Cost of Print Media
Advertising and promotional costs can be categorized in two ways:
• Absolute cost… the actual total cost required to place the message
• Relative cost… the relationship between the price paid for advertising time or space
and the size of the audience delivered.
This is how the relative cost of print media is calculated. In essence, it is the cost per
thousand people reached and is calculated for print media such as magazines by dividing the
cost of the ad space by the circulation and multiplying this amount by 1000.
Textbook
Pages 353 - 355
CPM = Cost of ad space (absolute cost)
Circulation
Cost per thousand (CPM)
X 1000
29. 29
Promotional Strategy
MKT4230
29
This Ad Uses a Clever Visual Appeal
This visual shows the cost per rating point (CPRP) formula used to calculate the cost of
broadcast media (often referred to as cost per point or CPP). The relative cost of broadcast
media is calculated by using the cost per rating point formula. A rating point represents 1
percent of all households in a particular area who are tuned into a specific program.
Textbook
Page 354
CPRP = Cost of commercial time
Program rating
Cost per rating point (CPRP)
30. 30
Promotional Strategy
MKT4230
30
Determining Newspaper Advertising Costs
You would calculate the cost of running an advertisement in a newspaper. Cost effectiveness
is based on the daily inch rate, which is the cost per column inch of the paper. Like
magazines, newspapers now use the cost-per-thousand formula to determine relative costs.
Textbook
Page 354
Cost of ad space x 1,000
Circulation
Daily Inch Rate
31. 31
Promotional Strategy
MKT4230
31
Television Pros and Cons
Summary of the various advantages and disadvantages of using television as a medium.
Textbook
Page 356 / Figure 10 - 27
Mass coverage
High reach
Sight, sound, motion
High prestige
Low cost per exposure
Attention getting
Favorable image
Advantages
Short message life
High production cost
Low selectivity
High absolute cost
Clutter
Disadvantages
32. 32
Promotional Strategy
MKT4230
32
Radio Pros and Cons
Summary of the various advantages and disadvantages of using radio as a medium.
Textbook
Page 356 / Figure 10 - 27
Local coverage
Low cost
High frequency
Flexible
Low production cost
Well-segmented audience
Advantages
Clutter
Fleeting message
Audio only
Low attention getting
Disadvantages
33. 33
Promotional Strategy
MKT4230
33
Magazine Pros and Cons
Summary of the various advantages and disadvantages of using magazine as a medium.
Textbook
Page 356 / Figure 10 - 27
Segmentation potential
Quality reproduction
High information content
Longevity
Multiple readers
Advantages
Visual only
Long lead time for ad placement
Lack of flexibility
Disadvantages
34. 34
Promotional Strategy
MKT4230
34
Summary of the various advantages and disadvantages of using newspaper as a medium.
Textbook
Page 356 / Figure 10 - 27
High coverage
Low cost
Short lead time for placing ads
Ads placed in interest section
Timely (current ads)
Reader controls exposure
Can be used for coupons
Advantages
Clutter
Poor reproduction quality
Short life
Low attention getting
Selective reader exposure
Disadvantages
Newspaper Pros and Cons
35. 35
Promotional Strategy
MKT4230
35
Summary of the various advantages and disadvantages of using outdoor as a medium.
Textbook
Page 356 / Figure 10 - 27
Location specific
High repetition
Easily notices
Advantages
Short ads
Local restrictions
Short exposure time
Poor image
Disadvantages
Outdoor Pros and Cons
36. 36
Promotional Strategy
MKT4230
36
Summary of the various advantages and disadvantages of using direct mail as a medium.
Textbook
Page 356 / Figure 10 - 27
High selectivity
Reader controls exposure
High information content
Advantages
Poor image (junk mail)
High cost per contact
Clutter
Disadvantages
Direct Mail Pros and Cons
Repeat exposure opportunities
37. 37
Promotional Strategy
MKT4230
37
Internet Pros and Cons
Summary of the various advantages and disadvantages of using Internet as a medium.
Textbook
Page 356 / Figure 10 - 27
User selects information
User attention / development
Interactive relationship
Direct selling potential
Flexible message platform
Advantages
Clutter
Limited reach
Lack of controls
Questionable measurement
techniques
Disadvantages
38. 38
Promotional Strategy
MKT4230
38
Test Your Knowledge
In terms of media vehicles, ______ would be most efficient medium for the “Got Milk”
slogan.
A. television
B. interactive media
C. radio
D. outdoor
E. newspapers
39. 39
Promotional Strategy
MKT4230
39
Evaluation and Follow Up
All plans require some evaluation to assess their performance. The media plan is no
exception. Any measure of effectiveness must consider the two factors shown below.
Although it is difficult to measure effectiveness, it is not impossible. Even a less-than-perfect
evaluation procedure is better than no attempt at all.
Textbook
Page 357
Use again, or analyze flaws
How well did these strategies achieve
the media objectives?
How well did the media plan contribute
to attaining the overall marketing and
communications objectives?