Week 3 - Market and Product Analysis, Media Objectives and Strategy Flashcards
What is Brand Development Index (BDI)?
Gives you the history and strength of a brand in a particular market:
- This will tell you how strong the brand is in different areas of the country and which market it is weak
- Can only calculate if you know the sales by Designated market area (DMA)
What is Category Development Index (CDI)?
Gives you the same information as BDI, except for an entire category.
* Provides information to allocate advertising spending by market
(e.g. your plans are national, but some may also have ‘spot’ advertising allocations)
What are the 4 basic exposure theories?
- Effective frequency
- Recency
- Share of voice
- Adstock planning
What is the effective frequency theory?
You have to see an ad a certain amount of times before it sinks in.
1st impact - notices it e.g. first day - “oh, what’s that?”
2nd impact - he understands it e.g. next day - “that’s interesting”
3rd impact - internalises it e.g. third day - “I’m thirsty”
It’s about seeing the ad more often so spend money on getting less people to see an ad but more often.
What is the recency theory?
A “real world” trigger makes him perceptive to an ad. e,g, I’m walking along, thinking how thirsty I am and then I see the ad.
It works on the first impact, because it was closest to the point of purchase, had the most impact. e.g. “I’ll go buy a drink”
It’s about timing so put lots of effort into being there as often as you can, just before the decision is made.
What is the share of voice theory?
It’s about having more ads than your competitors so consumers will remember you. e.g. “Gee, I sure see a lot of Lipton Ice Tea ads”
So the brand who spends the most on media, will ultimately win
What is the adstock planning theory?
The impact of the ad “fades” over time, but does not disappear immediately. e.g. “I’m thirsty, I saw an ad for Lipton last week, I’ll buy a Lipton Ice Tea”
It’s about realising that the effect of the message has only a limited time span so put your efforts into understanding these dynamics.
