part three Flashcards
what does a high BDI/high CDI indicate?
- high market share
- good market potential
- market usually represents good sales potential for product + brand
what does a low BDI/high CDI indicate?
- low market share
- good market potential
- product category shows high potential but brand isn’t doing well; determine reason
what does a high BDI/low CDI indicate?
- high market share
- monitor for sales decline
- category isn’t selling well but brand is; may be good market to advertise in
what does a low BDI/low CDI indicate?
- low market share
- poor marketing potential
- product category + brand aren’t doing well; not likely good place to advertise
differentiate between the 3 methods of duration and scheduling
continuous: advertising every day, week or month; flighting: periods of on and off advertising; pulsing: combo of continuous and flighting, continuity is maintained but at certain periods advertising is increased
what is the index number a good indicator of?
the potential of the market
how do you calculate the index number?
(percentage of users in a demographic segment) divided by (percentage of population in the same segment), multiplied times 100
what does the BDI help marketers factor?
the rate of product usage by geographic area into the decision process (or where to promote)
how do you calculate the BDI?
(percentage of brand to total US sales in market) divided by (percentage of total US population in market), multiplied times 100
how do you calculate the CDI?
(percentage of total product category sales in market) divided by (percentage of population in the same segment), multiplied times 100
how do the calculations of CDI differ from BDI?
CDI uses product category information instead of brand information
penelope is the marketer for sassybrands, a company that sells high-end toilet paper and power towels. she wants a tv ad that will cover the entire buying cycle and build awareness around their new product: high-end tissues. which scheduling method should she use? why? (4) what are the disadvantages? (3)
- continuity
- constant reminder for regularly consumed products, covers entire buying cycle, effectiveness, awareness-building
- high costs, potential for overexposure, media availability
kita is the marketer for oh.ho.flo, a company that specializes in minimalistic authentic christmas trees and valentine bouquets. since it’s such a niche company, kita is working with a pretty small budget. which scheduling method should she use? why? (3) what are the disadvantages? (2)
- flighting
- season product used only a couple times per year, highly cost effective
- increased likelihood of wear out, lack of awareness/interest/retention during off-times, vulnerability to competing messages during off times
ishtar is the marketer for T-4-2, a specialty tea company that sells loose-leaf teas, tea brewers, iced and hot teas to-go, tea kettles, tea infusers, tea candies, tiny teas, tea shirts—the list goes on. ishtar has noticed a spike in to-go iced tea sales during the summer and wants to capitalize on this trend. what scheduling method should she use? why? what are the disadvantages? (3)
- pulsing
- good for products that have little sales variation from period to period, but might see some increase during certain times
- moderately expensive, some overexposure, not appropriate for highly seasonal products
how many frequency exposures should penelope, kita, or ishtar aim for?
3 (min) to 12
what marketing factors increase frequency? (3)
- high usage cycle (item purchased often)
- high competition
- new brand
what message factors increase frequency? (3)
- new campaign
- image advertising
- complex + varied messages
what media factors increase frequency?
amount of clutter
what marketing factors decrease frequency? (3)
- high brand loyalty and market share
- high ability to process and recall messages
- low usage cycle
what message factors decrease frequency? (2)
- continuing campaign
- simple and single messages
what media factors decrease frequency? (5)
- alignment with media content
- continuous scheduling
- fewer media
- level of attention achieved by media
- repeat exposures
why is clutter problematic?
no one message is able to stand out; the messages’ effectiveness cancel out each other
how often do continuity-scheduled advertisements appear?
every day, week, or month
what products are continuity-scheduled advertisements best for?
non-season products like food, household products, and other everyday products
how does pulsing differ from continuity?
pulsing includes continuity strategies with a heavy concentration of promotional efforts at certain times
what processes are best for the pulsing scheduled method? why?
consumer response processes that begin with model (e.g. affinity model) and those target valued consumers
bursts come around sales promotions or other major events
how does TRP differ from GRP?
-TRP does not include waste coverage (duplicated reach)
what does a rating point represent?
-1% of all households in a particular area tuned into a specific program
when is it more beneficial to select a medium with a higher CPM?
if it’s reaching more potential receivers
what are the promotional advantages of tv?
- mass coverage + high reach = cost effective
- captivating and attention getting
- targets selectivity
- flexibility
what are the promotional disadvantages of tv?
- Fleeting messages
- High costs
- Audience distrust
- Message avoidance
- Increased clutter
- Not for niche markets
what are the promotional advantages of radio?
- Low cost to produce and purchase
- Good for smaller niche markets
- High receptivity
- Selectivity
- Flexibility; can be used in conjunction with other media (synergy). Stations and personalities enhance local involvement
what are the promotional disadvantages of radio?
- Limited comm and creative options
- Less status and prestige
what are the promotional advantages of newspapers?
- High penetration and flexibility
- Geographic selectivity
- Low cost
- Match ads w/ editorial content
- Timely (Published daily)
what are the promotional disadvantages of newspapers?
- Low production quality
- Short lifespan
- Low attention-getting
- Clutter
- Declining circulation
what are the promotional advantages of magazines?
- Segmentation and selectivity
- High receptivity
- High info content
- Permanence
- High quality reproduction
what are the promotional disadvantages of magazines?
- Visual only
- Limited frequency and reach
- High competition
- High clutter
- Declining circulation
what are the promotional advantages of using the internet?
- Target marketing
- Sales potential
- Message tailoring
- Creativity, interactive capabilities
- Exposure speed
- Info access
- Complementary IMC
what are the promotional advantages of using the internet?
- Measurement problems
- Clutter
- Potential for deception
- Privacy
- Irritation
- Annoyance
what does social media struggle with?
issues of privacy and surveillance.
index number definition
potential of the market
brand development index definition
determines sales potential for a certain brand
category development index definition
determines sales potential for a certain category
advantages of continuity
constant reminder, effective, builds awareness, covers entire buying cycle
disadvantages of continuity
costly, potential for overexposure, lack of media availability
advantages of flighting
good for seasonal products, cost effective
disadvantages of flighting
wearout, competing messages, lack of awareness during off season
advantages of pulsing
combination, use of affinity model
disadvantages of pulsing
expensive, overexposure
products for continuity
products consumed regularly, e.g. household items or food products
products for flighting
seasonal items or products consumed mostly during certain time periods
products for pulsing
products with little sales variation from period to period but might see some increase in certain months, e.g. beverages (hot/cold)
reach
amount of people who see the message
frequency
how often the message is sent
GRP
gross rating point = reach * frequency
TRP
target rating point = target reach * frequency
marketing factors that increase frequency
new product, new brand, high usage cycle, high competition
marketing factors that decrease frequency
brand loyalty, ability to recall messages, low usage cycle
message factors that increase frequency
new campaign, image advertising, complex/varied messages
message factors that decrease frequency
uniqueness, continuing a campaign, simple message, potential for wear-out
media factors that increase frequency
clutter
media factors that decrease frequency
alignment with media content, continuous scheduling, fewer media, level of attention, repeat exposure
print media
Cost per thousand (CPM) = (cost of space/circulation) * 1000
broadcast media
cost per rating point (CPRP) = (cost of duration/program rating)
television households
number of households that have a tv
program rating
(households watching show/total of households that own a tv)
share of audience
(households watching show/total households using tv at a specified time)
households using tv
number of tvs being used during a specific time period
promotional tv advantages
mass coverage, attention getting, flexibility, targets selectivity
promotional tv disadvantages
high cost, fleeting message, audience distrust, clutter, not for niche markets
promotional radio advantages
low cost, good for niche, higher receptivity, selectivity, and flexibility
promotional radio disadvantages
limited communication, lack of creativity, less status/prestige
promotional magazine advantages
high quality, high receptivity, segmentation/selectivity, high information, permanence