1 The Media Business The word media comes from the Latin word “middle.” Media carry messages to or from a targeted audience and can add meaning to these messages.

2 Media Terminology Media Planning - A series of decisions involving the delivery of messages to audiences. Media Objectives - Goals to be attained by the media strategy and program. Media Strategy - Decisions on how the media objectives can be attained. Media - The various categories of delivery systems, including broadcast and print media. Broadcast Media - Either radio or television network or local station broadcasts.

3 Media Terminology Print Media - Publications such as newspapers, magazines, direct mail, outdoor, and the like. Media Vehicle - The specific message carrier, such as the Washington Post or Tonight Show. Coverage - The potential audience that might receive the message through the the vehicle. Reach - The actual number of individual audience members reached at least once by the vehicle. Frequency - The number of times the receiver is exposed to vehicle in a specific time period.

4 Differences Between Levels of Message Involvement and Number of Responses

5 Media Classifications Most mass media guarantee only the opportunity for a large audience to be exposed to a brand. Communication vehicles are specific publications, networks, channels, stations, and programs that make up a medium.

6 Media Classification Levels

7 Media Intrusiveness Media vary in their degree of intrusiveness. Ways to reduce intrusiveness include:  Chose media in which the target audience is interested in the product.  Ask customers what type of information they would like to receive, in what way, and when.

8 Relative Degrees of Media Intrusiveness

9 Print Media Print media include: Newspapers Magazines Directories Mail brochures Mail Packaging All other forms, which are produced by printing and are relatively permanent

10 Newspapers Characteristics Advantages High coverage Low cost Short lead time for placing ads Ads can placed in interest sections Timely (current ads) Reader controls exposure Can be used for coupons Disadvantages Short life Clutter Low attention- getting capabilities Poor reproduction quality Selective reader exposure

11 Magazines Characteristics Advantages Segmentation potential Quality reproduction High information content Longevity Multiple readers Disadvantages Long lead time for ad placement Visual only Lack of flexibility

12 Directories A directory is both a reference and an advertising medium. The most widely known is the Yellow Pages. Yellow Pages advertising is often the primary or only form of advertising used by many small, local retailers. A weakness of the Yellow Pages is that they are printed only once a year.

13 Broadcast Media Broadcast media include radio and television. Broadcast media differs from print in that people often do other things while listening or viewing, so messages are fleeting. Broadcast commercials are more intrusive than print ads.

14 BMG

15 Radio’s Daily Reach by Daypart for Adults 18+

16 Radio Characteristics Advantages Local coverage Low cost High frequency Flexible Low production costs Well-segmented audiences Disadvantages Audio only Clutter Low attention getting Fleeting message

17 Television Characteristics Advantages Mass coverage High reach Impact of sight, sound, and motion High prestige Low cost per exposure Attention getting Favorable mage Disadvantages Low selectivity Short message life High absolute cost High production costs Clutter

18 Outdoor Characteristics Advantages Location specific High resolution Easily noticed Disadvantages Short exposure time requires short ad Poor image Local restrictions

19 INTERACTIVE A VARIETY OF MEDIA THAT ALLOWS THE CONSUMER TO INTERACT WITH THE SOURCE OF THE MESSAGE, ACTIVELY RECEIVING INFORMATION AND ALTERING IMAGES, RESPONDING TO QUESTIONS, AND SO ON.

20 INTERACTIVE MEDIA AUDIOTEX AUTOMATED TELEPHONE INFORMATION SERVICES CD-ROM FAX ON DEMAND INTERACTIVE TV INTERNET KIOSKS AVAILABLE IN HOTELS, SHOPPING MALLS ONLINE SERVICES AMERICAN ONLINE, PRODIGY SCREEN TELEPHONY TELEPHONES EQUIPPED WITH KEYBOARD TO ENTER AND ACCESS DATA

21 Internet / Interactive Media Characteristics Advantages User selects product information User attention and involvement Interactive relationship Direct selling potential Flexible message platform Disadvantages Limited creative capabilities Web snarl (crowded access) Technology limitations Few valid measurement techniques Limited reach

22 Direct Mail Characteristics Advantages High selectivity Reader controls exposure High information content Opportunities for repeat exposures Disadvantages High cost/contact Poor image (junk mail) Clutter

23 Media Use Decision — Print Media Use Decision — Broadcast Media Use Decision — Other Media Creative Strategy Plan Developing the Media Plan Setting Media Objectives Selecting Media Within Class Selecting Broad Media Classes Determining Media Strategy Marketing Strategy Plan Situation Analysis

24 MARKET ANALYSIS AND TARGET MARKET IDENTIFICATION ADVERTISING TARGET SIMMONS MARKET RESEARCH BUREAU--AUDIENCE SIZE AND COMPOSITION--100 PUBLICATIONS, >800 CONSUMER PRODUCTS AND SERVICES MEDAIMARK RESEARCH, INC--DEMOGRAPHIC & PRODUCT USAGE, PROVIDES LIFESTYLE INFORMATION & MEDIA USAGE CHARACTERISTICS OF THE POPULATION WHERE TO PROMOTE BUYING POWER INDEX--SALES & MARKETING MGT MAGAZINE BRAND DEVELOPMENT INDEX CATEGORY DEVELOPMENT INDEX

25 ESTABLISHING MEDIA OBJECTIVES GOALS FOR THE MEDIA PROGRAM LIMITED TO THOSE THAT CAN BE ACCOMPLISHED THROUGH MEDIA EXAMPLES USE BROADCAST MEDIA TO PROVIDE COVERAGE OF 80 % OF THE TARGET MARKET OVER A SIX MONTH PERIOD REACH 60% OF THE TARGET AUDIENCE AT LEAST THREE TIMES OVER THE SAME SIX-MONTH PERIOD

26 MARKET ANALYSIS AND TARGET MARKET IDENTIFICATION-- continued INTERNAL FACTORS--SIZE OF MEDIA BUDGET, MGT & ADMIN CAPABILITIES, ORGANIZATION OF THE AGENCY EXTERNAL FACTORS--ECONOMY, RAISING COST OF MEDIA, TECHNOLOGY SURVEY OF BUYING POWER INDEX-- POTENTIAL OF A METRO AREA

27 MARKET ANALYSIS AND TARGET MARKET IDENTIFICATION-- continued BRAND DEVELOPMENT INDEX-- COMPARES % OF THE BRAND’S TOTAL U.S. SALES IN A GIVEN MARKET AREA WITH THE % OF TOTAL POPULATION IN THE MARKET TO DETERMINE SALES POTENTIAL CATEGORY DEVELOPMENT INDEX-- POTENTIAL FOR DEVELOPING THE TOTAL PRODUCT CATEGORY

28 EVALUATION AND FOLLOW-UP HOW WELL DID THESE STRATEGIES ACHIEVE THE MEDIA OBJECTIVES? HOW WELL DID THIS MEDIA PLAN CONTRIBUTE TO ATTAINING THE OVERALL MARKETING AND COMMUNICATIONS OBJECTIVES

29 Media Planning Difficulties Lack of information Inconsistent terms Serious time pressure Measurement problems

30 Media Planning Criteria Considerations The media mix Target market coverage Geographic coverage Scheduling Reach versus frequency Creative aspects and mood Flexibility Budget considerations

31 Brand and Category Analysis Percentage of brand to total U.S. sales in market Percentage of total U.S. population in market BDI =X 100 Brand Development Index

32 BRAND DEVELOPMENT INDEX A BDI IS CALCULATED BY DIVIDING THE PERCENT OF SALES A MARKET ACCOUNTS FOR, BY THE MARKET’S PERCENTAGE OF POPULATION OF THE U.S. AN INDEX OF 100 WOULD INDICATE A FLAT MARKET--SALES AND POPULATION ARE EQUAL. AN INDEX OF LESS THAN 100 WOULD INDICATE A POOR SALES MARKET--SALES ARE LESS THAN THE POPULATION, AND AN INDEX OVER 100 INDICATES A STRONG SALES MARKET % POPULATION% SALESBDICOMMENTS FLAT SAL MKT STRONG SAL MKT WEAK SAL MKT

33 Brand and Category Analysis Percentage of product category total sales in market Percentage of total U.S. population in market CDI =X 100 Brand Development Index

34 Brand and Category Analysis High market share Good market potential High market share Good market potential High market share Monitor for sales decline High market share Monitor for sales decline Low market share Good market potential Low market share Good market potential High CDI Low CDI Low market share Poor market potential Low market share Poor market potential High BDILow BDI

35 Brand and Category Analysis The market usually represents good sales potential for both the product and the brand. The category isn’t selling well but the brand is; may be a good market in which to advertise but should be monitored for sales decline. The product category shows high potential but the brand isn’t doing well; the reason should be determined. High CDI Low CDI Both the product category and the brand are doing poorly; not likely to be a good place to advertise. High BDILow BDI

36 Target Audience Coverage Population excluding target market Target market Media coverage Media overexposure Coverage Exceeding Market Partial Market Coverage Full Market Coverage Target Market Proportion

37 Three Scheduling Methods Continuity Pulsing Flighting JanFebMarAprMayJunJulAugSepOctNovDec

38 Reach and Frequency Reach of Two ProgramReach of One Program Unduplicated Reach of BothDuplicated Reach of Both Total market audience reached Total reached with both shows Total reach less duplicate

39 Graph of Effective Reach Exposures Percentage Reach % 20% 15% 10% 5% 0% Ineffective Reach Effective Reach Ineffective Reach

40 Marketing Factors Important to Determining Frequency Brand history Brand share Brand loyalty Purchase cycles Usage cycle Competitive share of voice Target group

41 Message or Creative Factors Important to Determining Frequency Message complexity Message uniqueness New vs. continuing campaigns Image versus product sell Message variation Wearout Advertising units

42 Media Factors Important to Determining Frequency Clutter Editorial environment Attentiveness Scheduling Number of media used Repeat Exposures

43 Determining Relative Cost of Media Cost of ad space (absolute cost) Circulation CPM =X 1,000 Cost per thousand (CPM)

44 Determining Relative Cost of Media CPRP = Cost of commercial time Program rating Cost per rating point (CPRP)

45 COST OF MEDIA MAGAZINE PER-PAGE COST$156,000 CIRCULATION4.0MM CALCULATION OF CPM156,000 X 1,000 4,000,000 CPM$39.00 BROADCAST COST PER-PER SPOT AD$3,500 RATING 11 REACH (HOUSEHOLDS)109,000 CALCULATION$3,500/11 CPRP $318.18

46 COST OF MEDIA-- CONTINUED NEWSPAPER COST PER PAGE $32,205 COST PER INCH$ CIRCULATION 499,000 CALCULATION CPMPAGE COST X 1,000 CIRCULATION CPM$32,205 X 1, ,000 $64.54

47 CHARACTERISTICS OF MEDIA MATCHING OF MEDIA TO MARKETS EACH MEDIA HAS ITS OWN CHARACTERISTICS THAT MAKES IT BETTER OR WORST FOR ATTAINING SPECIFIC OBJECTIVES