1. Copyright © 2012 Pearson Canada Inc. Part 4 Communicating the Message 7-1

2. Copyright © 2012 Pearson Canada Inc. CHAPTER 7 Media Planning Essentials 7-2

3. Copyright © 2012 Pearson Canada Inc. Learning Objectives  Assess roles & responsibilities of both client and agency in media planning  Become familiar with media planning terminology, concepts and metrics  Describe the steps involved in the media selection process  Identify factors affecting and methods of determining an advertising budget 7-3

4. Copyright © 2012 Pearson Canada Inc. Media Planning Process of developing a plan of action for communicating messages  to the right people  at the right time  with the right frequency  Efficiency in media planning - gaining maximum impact at minimum cost to the client. 7-5

5. Copyright © 2012 Pearson Canada Inc. Media Planning Process Client provides background information to agency in the form of a media brief containing:  Market Profile – as a whole  Product Media History – what’s been done in the past  Competitor Media Usage  Target Market Profile – for the brand  Media Objectives  Media Budget 7-7

6. Copyright © 2012 Pearson Canada Inc. The Media Plan Document that outlines all relevant details including:  How a client’s budget will be spent  Clearly defined objectives  Well developed strategies  Precise execution details 7-8

7. Copyright © 2012 Pearson Canada Inc. Media Objectives Clearly worded statements that outline what the media plan should accomplish.  Who is the target market?  What is the advertising message?  Where are the market priorities?  When is the best time to advertise?  How many, often, long? 7-9

8. Copyright © 2012 Pearson Canada Inc. Media Strategies Addressing Target Market  Shotgun; Profile Matching; Rifle Nature of Advertising Message  Factual message => Print media  Emotional message => TV and radio  Promotional message => Combination  Brand-name awareness => Out of home 7-10

9. Copyright © 2012 Pearson Canada Inc. Media Management terms  Reach: how many?  Frequency: how often?  Impressions  Gross rating points (GRPs)  Continuity: what pattern; how long?  Engagement  Flexibility 7-11

10. Copyright © 2012 Pearson Canada Inc. Continuous Spending versus Flighting 7-12

11. Copyright © 2012 Pearson Canada Inc. Media Scheduling Options 7-15

12. Copyright © 2012 Pearson Canada Inc. Market Coverage National coverage  Requires media coverage wherever product is available. Regional coverage  Equitable allocation so that all regions benefit. Key-market plan  Time and space are purchased in urban markets that have been identified as priorities Selective coverage plan  Attempts to reach target market regardless of geographic location 7-13

13. Copyright © 2012 Pearson Canada Inc. Media Selection Television Radio Newspaper Magazines Out-of-Home Direct-Response Internet Television Radio Newspaper Magazines Out-of-Home Direct-Response Internet 1.Nature of the product 2.Description of the target market and the media they refer to most often 3.Budget is key influence 7-17

14. Copyright © 2012 Pearson Canada Inc. Media Selection Strategies  Concentrated media strategy  Select a primary medium that effectively reaches a target market.  Assorted media strategy  Reach the same target market in different ways / environments 7-18

15. Copyright © 2012 Pearson Canada Inc. Budget Influence on Media Strategies Media Mix: Primary & Secondary Media Selective Media Usage Small Budget Large Budget Reach Frequency Continuity Market Coverage Timing Competition Media Usage Type (Choice) of Media Limited strategy Flexible strategy 7-19

16. Copyright © 2012 Pearson Canada Inc. Competitive Influence  Analyze competitors media use and expenditure patterns  Decide whether to follow a similar pattern or recommend a different approach 7-20

17. Copyright © 2012 Pearson Canada Inc. Media Execution  Fine tuning the strategy and translating it into specific action plans. Media Selection Process 7-21

18. Copyright © 2012 Pearson Canada Inc. Cost per Thousand (CPM) Cost incurred in delivering a message to one thousand individuals. The formula for calculating CPM is as follows: Unit Cost of Message CPM = Circulation (000) 7-22

19. Copyright © 2012 Pearson Canada Inc. Media Scheduling and Budgeting Media schedule is normally presented in a calendar format, often referred to as a blocking chart. Outlined in one or two pages:  Media usage  Market coverage  Weight levels  GRPs  Reach  Frequency  Timing 7-23

20. Copyright © 2012 Pearson Canada Inc. Media Buying  Once the media plan is approved, the media buyer negotiates the buy with media representatives to obtain the most effective and efficient buy within the guidelines of the plan.  User-friendly software developed by BBM Bureau of Measurement, Nielsen Media Research, etc. lets media buyers makes reasoned and detailed decisions. 7-24

21. Copyright © 2012 Pearson Canada Inc. The Media Budget Factors affecting budget size:  Size of Customer Base  Degree of Competition  Stage in the Product Life Cycle  Product Characteristics  Management Philosophy about Advertising 7-25

22. Copyright © 2012 Pearson Canada Inc. Budgeting Methods  Percentage of Sales  Fixed Sum per Unit Sold  Industry Average (Competition Spending)  Task (Objective) Method  Share of Advertising / Share of Market 7-26