1. Media Planning and Strategy 10 McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.

2. Media Expenditures to Reach $1 Trillion

3. Traditional Media Satellite radio stations 2 Broadcast networks (TV and cable) 100 TV stations 3,510 Consumer magazines 5,340 Newspapers (daily and weekly) 8,100 Radio stations 13,898

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

5. Media Terminology Publications, such as newspapers, magazines, direct mail, outdoor, etc. Print Media The specific carrier within a medium category Media Vehicle Media Vehicle Number of different audience members exposed at least once in a time period Reach The potential of audience that might receive the message through the vehicle Coverage Number of times the receiver is exposed to the media vehicle in a time period Frequency

6. Developing the Media Plan Selecting media within class Selecting broad media classes Determining media strategy Media use decision — print Media use decision — print Media use decision — broadcast Media use decision — broadcast Media use decision — other media Media use decision — other media Setting media objectives Marketing strategy plan Situation analysis Creative strategy plan

7. Media Planning Difficulties Measurement Problems Measurement Problems Lack of Information Inconsistent Terms Inconsistent Terms Time Pressure Time Pressure Problems in Media Planning Problems in Media Planning

8. Developing a Media Plan Evaluate performance Analyze the market Establish media objectives Develop media strategy Implement media strategy

9. Analyzing Market PotentialMarket Potential Percentage of users in a demographic segment Percentage of population in the same segment Index = X 100 Index Number

10. 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

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

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

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

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

16. Geographic Coverage

17. Three Scheduling Methods Continuity Pulsing Flighting JanFebMarAprMayJunJulAugSepOctNovDec

18. Reach and Frequency A. Reach of One ProgramB. Reach of Two Programs C. Duplicated Reach of BothD. Unduplicated Reach of Both

19. Graph of Effective Reach

20. Marketing Factors Determining Frequency Target Group Brand History Share of Voice Purchase Cycles Brand Loyalty Brand Share Usage Cycle Marketing Factors

21. Message Factors Determining Frequency Message Complexity Message UniquenessUniqueness Message UniquenessUniqueness New Vs. Continuing Campaigns Image Versus Product Sell Message Variation Wearout Advertising Units Message or Creative Factors Message or Creative Factors

22. Media Factors Determining Frequency Clutter Number of Media Used Repeat Exposure Editorial Environment Scheduling Attentiveness Media Factors

23. Flexibility in Media Planning Strategies Market opportunities Market threats Availability of media Changes in media or media vehicle Flexibility

24. 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

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

26. Calculating CPM Based on Target Audience

27. Determining Relative Cost of Broadcast Media CPRP = Cost of commercial time Program rating Cost per rating point (CPRP)

28. Evaluation and Follow-Up 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?

29. SuperSuper bowl adsads

30. Television Pros and Cons 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

31. Radio Pros and Cons Local coverage Low cost High frequency Flexible Low production cost Well-segmented audience Advantages Clutter Fleeting message Audio only Low attention getting Disadvantages

32. Magazine Pros and Cons Segmentation potential Quality reproduction High information content Longevity Multiple readers Advantages Visual only Long lead time for ad placement Lack of flexibility Disadvantages

33. Newspaper Pros and Cons High coverage Low cost Short lead time for placing ads Ads can be placed in interest sections 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

34. Outdoor Pros and Cons Location specific High repetition Easily noticed Advantages Short ads Local restrictions Short exposure time Poor image Disadvantages

35. Direct Mail Pros and Cons High selectivity Reader controls exposure High information content Repeat exposure opportunities Advantages Poor image (junk mail) High cost per contact Clutter Disadvantages

36. Internet Pros and Cons User selects product information User attention and involvement Interactive relationship Direct selling potential Flexible message platform Advantages Websnarl Few measurement techniques Limited creative capability Technology limitations Limited reach Disadvantages

37. 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