Week 8 Flashcards
What are some Media Planning Decisions?
Media Planning Decisions:
1. Where to advertise
2. Setting overall budget
3. Allocation across different media
4. Selection of specific media vehicles
5. Reach, Frequency, GRP
Reach: measures the total number or percentage of unique individuals or households exposed to an advertising campaign during a specific period.
E.g., If a campaign reaches 20,000 people in a target audience of 100,000, the reach would be 20%.
Frequency: measures the average number of times an individual within the target audience is exposed to a particular advertising message or campaign during a specific period.
E.g., If a campaign generates 100,000 impressions with a reach of 20,000, the frequency would be (100,000 ÷ 20,000).
Gross Rating Points (GRP): a metric that combines reach and frequency to provide a single, cumulative measure of the overall impact of an advertising campaign.
E.g., If a campaign has a reach of 20% and a frequency of 5, the GRP would be 100 (20% × 5).
- Scheduling the ads
Media Planning v.s. Media Buying?
Media Planning: Involves the strategic selection of media channels, platforms, and placements to deliver advertising messages to the target audience effectively.
Media Buying: Involves the actual purchase of advertising space or time on selected media channels as outlined in the media plan.
Geographic Location:
1. Category Development Index (CDI)
and
2. Brand Development Index (BDI) by Markets
High CDI and High BDI lead to Brand Usage.
- This scenario suggests that the brand has a strong presence in a market where the category as a whole is thriving.
High CDI and Low BDI lead to Brand Penetration
- This scenario implies that while the category itself is popular in the market, the brand has room for growth in terms of increasing its market share.
Low CDI and High BDI lead to Category Build
- In this scenario, the brand is successful in a market where the overall category has lower demand.
Low CDI and Low BDI lead to Point of Entry
- This scenario suggests that the brand is at an early stage or a point of entry in the market.
BDI Calculation?
BDI = Percentage brand total country sales in the market /
Percentage of total country population in the market
X 100
CDI Calculation?
CDI = Percentage category total country sales in the market / Percentage of total country population in the market
X 100
Example of a BDI and CDI question
US Population: 100 million; California: 10 million
Total Car Sales: US = 6 million, California = 1.2 million
Lexus Sales: US = 320,000, California = 80,000
Honda Sales: US = 1 million, California = 150,000
Solution:
1. CDI Calculation (Lexus and Honda Sales in California):
CDI for Lexus in California = (Lexus Sales in California / Total Car Sales in California) x 100
= (80,000 / 1,200,000) x 100
= 6.667 CDI for Honda in California = (Honda Sales in California / Total Car Sales in California) x 100
= (150,000 / 1,200,000) x 100
= 12.5
- BDI Calculation (Lexus and Honda Sales in the U.S.):
BDI for Lexus in the U.S. = (Lexus Sales in the U.S. / Total Car Sales in the U.S.) x 100
= (320,000 / 6,000,000) x 100
= 5.333
BDI for Honda in the U.S. = (Honda Sales in the U.S. / Total Car Sales in the U.S.) x 100
= (1,000,000 / 6,000,000) x 100
= 16.667
What are the management philosophies?
- Cost vs. Investment:
Cost: A cost-oriented philosophy views marketing expenditures as necessary expenses that need to be minimized or controlled.
Investment: An investment-oriented philosophy sees marketing expenditures as investments in the company’s future success and growth.
- Bare Minimum vs. ‘Ideal’:
Bare Minimum: A philosophy of allocating the minimum necessary funds for marketing activities.
‘Ideal’: A philosophy that aims to allocate the budget based on the ideal or optimal requirements for achieving marketing objectives.
- First to Cut vs. Last to Cut:
First to Cut: A philosophy where marketing budgets are among the first to be reduced during budget cuts or financial challenges.
Last to Cut: A philosophy where marketing budgets are prioritized and considered one of the last areas to be cut.
- Skeptical vs. Believer:
Skeptical: A philosophy where there is skepticism about the effectiveness of marketing, leading to cautious budget allocations.
Believer: A philosophy that strongly believes in the power of marketing and is willing to allocate substantial budgets for strategic campaigns.
What is the difference between Top-Down Methods and Bottom-Up Methods for setting a budget?
- Top-Down Methods:
a) Affordable Method:
the budget is set based on what the company can afford to allocate for marketing activities.
b) A-to-S Ratio (Ad-to-Sales Ratio):
the percentage of advertising expenses relative to sales. It involves setting the marketing budget as a fixed percentage of the company’s sales.
c) Competitive Parity:
setting the marketing budget based on what competitors are spending. The idea is to match or mirror the spending of key competitors.
- Bottom-Up Methods:
a) Objective and Task Method:
defining marketing objectives and then determining the tasks required to achieve them. The budget is set by estimating the costs associated with each task.
What are some media selections?
Media Class: the broad categories or types of media available for advertising.
(e.g., TV, radio, outdoor (billboards), print (newspapers and magazines), and digital/internet media.)
Media Vehicles: specific channels or platforms within a media class.
(e.g., Within the print media class, media vehicles could include specific magazines like Vogue or Time.)
Media Options: specific choices within a media vehicle. (e.g., In digital advertising, media options could include choices such as the length of a video ad or the placement of a banner ad on a webpage.
What are some criteria’s that influence the selection of a media class?
- Broad/Quick Reach: The ability of the media class to quickly and broadly reach a large audience.
(e.g., television and radio can offer quick and broad reach, making them suitable for campaigns with a mass-market target.)
- Target Selectivity: Selectively target a specific audience based on demographics, psychographics, or behaviour.
(e.g., digital media, social media, and certain print publications allow for precise audience targeting)
- Flexibility: The degree of flexibility the media class offers in terms of creative expression and lead times for campaign execution.
(e.g., digital media provide flexibility in creative formats, and they often have shorter lead times compared to traditional media like print or outdoor.)
- Cost: The overall cost associated with utilizing a particular media class for advertising.
(e.g., television and radio advertising may be more expensive than print or online advertising.)
- Impact: The sensory impact provided by the media class, including factors like colour, sound, and motion.
(e.g., television and digital media excel in providing a multi sensory experience, enhancing the impact of the advertising message.)
- Message Requirements: The type and format of content that the media class can effectively convey.
(e.g., radio, rely on audio messaging, while print and digital, can incorporate visual and textual elements.)
What are the selection of Specific Media Vehicles?
- Unduplicated Reach:
Percentage of households exposed at least once to an ad during a given period of time, usually four weeks. - Frequency:
Average number of times the households are exposed to an advertising message in a specific time span, usually 4 weeks. - Gross Rating Points (GRP):
Reach x Frequency
What are the calculations for Unduplicated Reach and Frequency?
Unduplicated Reach = (number of households exposed at least once / total number of households) x 100
Frequency = ( (number of households exposed once x 1) + (number of households exposed twice x 2) + (number of households exposed thrice x 3) + … ) / (total number of households exposed at least once)
When to emphasize Reach v.s. Frequency?
Reach:
- When launching a new brand or product, the primary objective is to build awareness quickly.
Emphasizing Reach:
- Utilize media channels that offer broad reach to introduce the new brand to a large audience. - When communicating announcements related to product improvements or significant price reductions.
Emphasizing Reach:
- Broad reach is crucial to ensure that the message reaches as many existing and potential customers as possible. - When the target market is broad and diverse, and the goal is to reach a large cross-section of the population.
Emphasizing Reach:
- Employ media channels that have the ability to reach a wide demographic, such as television or popular online platforms. - When the advertising message is straightforward and requires minimal explanation.
Emphasizing Reach:
- Choose media channels that allow for concise and easily digestible messaging to reach a large audience quickly.
Frequency:
1. When the primary communication objective is to achieve top-of-mind awareness, making the brand more accessible in the minds of consumers.
Emphasizing Frequency:
- Frequent exposure ensures that the brand stays top-of-mind, making it more likely that consumers will think of the brand first when considering relevant products or services.
- When the goal is to enhance memory retention for specific brand benefits, attributes, or overall brand image.
Emphasizing Frequency:
- Repetition helps reinforce key messages, ensuring that consumers remember and associate the brand with desired qualities. - When the objective is to shape and improve consumer attitudes toward the brand.
Emphasizing Frequency:
- Repeated exposure allows for a more profound impact on attitudes, influencing perceptions and preferences over time. - When targeting a concentrated or niche market with specific preferences or unique characteristics.
Emphasizing Frequency:
- In a niche market, repeated exposure enables the brand to establish a strong presence and build connections within the limited target audience. - When the product or service has a highly seasonal demand.
Emphasizing Frequency:
- Frequent advertising during the relevant season ensures that the brand remains top-of-mind when consumers are actively considering or purchasing seasonal products. - When the advertising message is complex and requires detailed explanation or education.
Emphasizing Frequency:
- Repeated exposures allow for a gradual and thorough understanding of the complex message, ensuring consumers grasp the nuances over time.
If Radio gives you a reach of 70% and a frequency of 5 with $20K, while Newspapers give a reach of 15% and a frequency of 1 with $20K, should you ever choose newspapers?
Considerations:
1. Radio:
Reach: 70%
Frequency: 5
Budget: $20,000
- Newspapers:
Reach: 15%
Frequency: 1
Budget: $20,000
Decision 1: Choose Radio
Rationale:
If the primary objective is to achieve a broad reach and make the brand more accessible to a large audience, Radio’s 70% reach is significantly higher than Newspapers’ 15%. The higher frequency (5) in Radio also ensures repeated exposures, contributing to top-of-mind awareness.
Decision 2: Consider Newspapers
Rationale:
If the target audience is concentrated or niche, and the advertising message requires detailed explanation (complex messaging), Newspapers with a 15% reach might still be effective. The budget constraints may limit the reach, but the frequency of 1 allows for a consistent presence in the chosen medium.
What are some criteria’s that influence the selection of a media vehicles?
A media vehicle refers to a specific channel or platform within a broader media class that is used to convey an advertising message to a target audience.
- Cost per Thousand (CPM): the cost of reaching one thousand potential customers with a particular media vehicle.
Evaluate the cost-effectiveness of each media vehicle in terms of reaching the target audience. - Editorial Compatibility: the alignment between the content or editorial environment of the media vehicle and the nature of the advertising message or brand.
- Competitor’s Selection: analyze the media vehicles selected by competitors to identify opportunities and potential areas of differentiation.
- Clutter: assess the level of advertising clutter in a particular media vehicle. High clutter may reduce the effectiveness of the message.
- Promotion/Merchandising Opportunities: explore additional promotional or merchandising opportunities offered by the media vehicle that can enhance the overall campaign.
- Timing Consideration: evaluate the timing of the media vehicle in relation to the campaign goals and seasonality of the product or service.
- Vehicle as a Component of a Creative Strategy: ensure that the selected media vehicle aligns with and complements the creative strategy of the advertising campaign.
