Post on 14-Dec-2015
transcript
+Today’s Agenda
Media Planning PrinciplesMedia Types – Paid, Earned, and
Owned MediaRecent Media TrendsStrategic Decisions
Reach vs. Frequency Regionality & Seasonality Media selection Media Selection: Considerations
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Is the process of designing a course of action for using advertisign time and space to achieve the ad and mkting objectives
How an ad budget will be used to buy media that will reach the maximum number of prospects with the greatest effectiveness at the lowest cost
Media Plan
+Paid Media Marketing media you spent to push a
message to a consumer
E.g. Display ads, paid search, sponsorships Advantages
Immediate Impact Mass reach Control
Disadvantages Advertising clutter Financial burden- esp… in a recession Poor credibility
+Owned Media Marketing efforts to represent corporately your
brand
Owned media is a channel you control Fully-owned media (e.g., website) Partially-owned media (e.g., Facebook or Twitter)
Owned media can create brand portability Extend brand presence beyond a corporate web site
Advantages Control Cost efficiency Longevity Brand loyalty
Disadvantages No guarantees Long term effect Hard to measure
+Earned Media
Marketing media that cost only the time of those who create, propagate, and maintain it
Earned media is an old PR term that essentially meant getting your brand into free media rather than having to pay for it through advertising. Has the merit of third party credibility, and it reaches
people when they are opted in and value the information.
Earned media is a result of brand behavior E.g.,Electronic word of mouth (EWOM) through social
media, blogs, social networks
+Earned Media
Advantages Builds a Climate of acceptance for the brand Makes brand’s claims credible breaks through clutter Reaches the hard-to-reach Cost effective
Disadvantages Less control over message Media may not cooperate No repetition
+Relationship among Paid, Owned, and Earned Media
Owned media Produce compelling propietary content
Earned media Attract the attention of traditional media and
extend it to social mediaPaid media
Amplify the exposure via advertising.
+Reach and Frequency
Reach Refers to how many different people are
exposed to a vehicle at least once
Frequency Refers to how often they are reached in a
given period (often four weeks)
Inverse relationship b/w R & F They usually must trade off reach and
frequency in a fixed GRPs
+Reach and Frequency
Reach weighting Whenever anything New is being planned E.g., new distribution, new features of a
product, new packaging, new models
Frequency weighting To compete in a highly competitive market When a brand is sold frequently
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Reach objective - use various media vehicles using different dayparts
Frequency objective - concentrate fewer number of vehicles with reasonable reach
For new products, use a “heavy introductory weighting ” strategy
Start advertising earlier in “hot sales” seasons than others
Reach and Frequency: General Guidelines
+Where to Promote?
Defensive Strategy Focus on the markets where you have strong
brand sales_potential Offensive strategy
Advertising in markets where a brand’s sales are low
Advertise on the weak sales markets This requires more heavy advertising than
defensive strategy
+Where to Promote?
Geographic considerations Advertise wherever the brand is distributed
Determine Market Potential Brand Development Index (BDI) Category Development Index (CDI) Higher than 100> Good and potential market
+Buying Power Indices: BDI & CDI Brand Development Index (BDI)
How strong a brand‘s sales is in relation to its population size: the percentage of your brand’s sales compared to the percent of population in a certain market
Category Development Index (CDI) Percentage of category sales compared to the
percentage of the population Use the CDI as a measure of potentia,
while the BDI is a mesure of actual brand strenght
High BDI Low BDI
High CDI
High share of market Good market potential
“A promising market”
Low share of marketGood market potential
“room for the brand to grow”
Low CDI
High share of market Monitor of sales declie
“Markt with caution”
Low market share
Poor market potential
“Dying market”
BDI & CDI: The Relationship
+BDI/CDI Relationships
High BDI &CDI Ideal situation, promising market Both category and brand sales/usage are above
average Typically want to want to defend market
Low BDI & High CDI Could be a good market for offensive ad strategy Might be might be potential to grow -- need to
research reasons brand sales are weak A brand recently introduced in a market
+BDI/CDI Relationships
High BDI and low CDI Brand sales are above average, but there is little growth
potential May call for defensive strategy Need to monitor market to see whether brand sales
decline or category declines further
Low BDI & Low CDI Probably not worth risking an offensive strategy Consider why the category is weak
+When to Advertise?
Depend on a number of important considerations When sales are greatest or lowest When competitors advertise Availability of the product Promotional requirements
+ Continuity A continuous pattern of advertising Covers the entire purchase cycle
E.g., Food products, laundry detergents Strategy used when:
Product used year-round Product has a short product cycle Top of mind awareness is the advertising objective
Advantages Works as a “message reminder” Extra discounts by buying heavy slots--- raise cost-
efficiency Disadvantages
high cost overexposure or underexposure
+ Flighting
An intermittent pattern with gaps of time, hiatus_ when no advertising is done
Placing advertising at the most favorable times relative to competition
Achieve much higher levels of reach/frequency than with continuity
Match advertising for certain time
+ Flighting
Advantages Efficient with budget limitation and or sales fluctuations Can outspend competitors over certain periods of times
Disadvantages May not be appropriate for products used year round Ad effect can be worn out if it is too heavy over a short
period of time Targets audience might forget the selling pit of an ad
over the hiatuses
Competitors can take over the market during hiatus
+Pulsing
A combination of continuity and flighting Continuous ad throughout the year and “ heaviest
up” at various favorable times
Sacrifice amount of advertising during peak sales compared to flighting
Depends on product nature and purchase cycle: Ice cream, soup, coffee
All of the advantages of continuity and flighting Typically used with a year-round products that are
sold all year round, but have heavier concentrations of sales during intermittent periods
+Coverage & (Target) Composition Coverage: a percent of the medium’s total
audience the number of prospects delivered by a
given medium
Differently used in different media Audience (Target) Composition: a percent
of the target audience among subscribers
+Index
Comparison of a product’s usage within a demographic group against usage within the total population
To discover whether a particular demographic group is more or less likely to consume a product/brand than the total population
One weakness – doesn’t consider the number of people (population) in the segment and users in that segment
Rules of thumb If index number is higher by 10 points or more__,
use the index as the initial criterion for target selection
Consider the raw number and user size
+Strategic Considerations Target audience’s use of media class
Quintile ranking from MRI (or Simmons) Consider media classes that have high quintile
rankings in Quintile 1 & 2 high index in Quintile I and II Low index in quintile VI and V
Is your advertising objective met better with a set of
media mix than others? Network TV – to maximize reach quickly Radio – to increase frequency among selected Newspapers / magazines –
+Strategic Considerations
Advertising Objective Does your client’s creative tactics require certain media
than others? Demonstration - television Vivid color - mag and HD TV Jingle and catchy phrases - radio and TV
Consider the cost to buy time and space in each medium Consider the general cost efficiency (CPM)
Network TV:
Consumer magazines: expensive (than NPs) to purchase and not cost efficient (high CPM) but necessary o reach selective target audience
+Next Classes – October 8 - 17 October 8
Case Analysis 5 – Agency 4 & 5 Read – New case and additional memo posted
on Moodle October 10
Advertising in Special Condition 2 – Crisis Management
Read – New case and additional memo posted on Moodle
October 15 Midterm exam
October 17 Account Planning (Guest lecture)