2. Competitive Assessment: 3 Components 1. Market shares for all direct and indirect competitors 2. Competitive (and your) media mix and expenditure (in $ and % of their budget) 3. Share-of-Voice or Ad Share (brand’s expenditure as % of all brands’ spending Topic: Marketing Situation Analysis

3. Competitive Assessment n You may use any data concerning the product market, the industry, etc. n For the analysis of the competitive advertising activities, Use LNA/Media Watch Data n See the competitive media mix & expenditure and SOV n Examine their budget to assess the appropriateness of your budget n Examine the quarterly spending before you develop your advertising timing pattern Topic: Marketing Situation Analysis

4. 1. Competitors & Market Shares n Direct vs. Indirect Competition: Topic: Marketing Situation Analysis Competitive Assessment Brands in the same product class as yours; e.g., Brands in one or more different product classes; e.g., n Limit your list of competitors to the number you can manage (no more than several) n Competitive Market Share (Market share reporter in our Library, or Nielsen Scantron)

5. 2. Competitive Media Mix & Expenditure Topic: Marketing Situation Analysis Competitive Assessment  Advertising Spending Pattern (in a Table, from LNA/Media Watch) -- to show, for each competitor (& you): How much was spent in Year 2? Year 1? Any increase or decrease in advertising? What does that mean for the appropriateness of your budget? How much was spent across quarters? Any consistency or inconsistency in advertising spending pattern? Why a particular pattern of ad timing? What does that mean for your future ad timing pattern?

6. 2. Competitive Media Mix & Expenditure Topic: Marketing Situation Analysis Competitive Assessment  Raw Expenditures & Media Proportion Analysis (in a Table, from LNA/Media Watch) -- to show, for each competitor (& you): What media types have been used and how much ($) has been spent in each of the media? Why certain media are used/popular? Why others not used or unpopular? What does that mean to your future media mix? What percent of the brand budget is spent in each medium? Why they allocated the budget that way? What does that mean for your future media weight allocation?

7. Topic: Marketing Situation Analysis 2. Media Mix and Expenditure: LNA/Media Watch Data Fill in the blanks with your brand and competitive information found in LNA/Media Watch (as shown in the Honda Civic example)

8. 3. Share-of-voice or Ad Share (in %) How big a voice Brand Y has vis-à-vis the Competition? Overall: SOV = Brand Y’s total $ x 100______ All Competitors or Brands total $ In Each Medium: SOV = Brand Y’s $ in medium x 100______ All Competitors or Brands total $ in medium Topic: Marketing Situation Analysis Competitive Assessment

9. Topic: Marketing Situation Analysis 2. Media Mix and Expenditure: LNA/Media Watch Data Fill in the blanks with your brand and competitive information found in LNA/Media Watch (as shown in the Honda Civic example)

10. Example (see handout) n SOV Corolla/Overall = ( / total??) x 100 = % ( / mag total) x 100 = % Topic: Marketing Situation Analysis Competitive Assessment 3. Share-of-Voice (SOV) SOV corolla/Mag =

11. Guidelines in Assessing Competitive Efforts 1)From competitive media mix & allocation analysis, consider their implications for your own media mix -- what media must be used and why and assess threats and/or opportunities that might exist in the use of certain media Topic: Marketing Situation Analysis Competitive Assessment 2)From SOV analysis, assess your strengths/weaknesses against the competition, and see if any change in the mix and/or increase or decrease in spending for certain media is warranted for an effective media mix for your brand. Discussion #1: Fill out the blanks in the Mix & Expenditure table; use the LNA data given

12. Discussion/Exercise # 1 n Fill out the blanks in the Mix & Expenditure table; use the LNA data given (you will have more competitors but let’s just use the two three brands, Civic, Sentra, Corolla in this exercise) n Fill out the blanks in the Share of Voice table n Based on the info given (covers only a half year of 2000, this is just an exercise. You need to do the same with the data for an entire year), what can you say about the competitive situation? Topic: Marketing Situation Analysis Competitive Assessment