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The Media Business

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  1. The Media Business The word media comes from the Latin word “middle.” Media carry messages to or from a targeted audience and can add meaning to these messages.

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

  3. Media Terminology • Print Media - Publications such as newspapers, magazines, direct mail, outdoor, and the like. • Media Vehicle - The specific message carrier, such as the Washington Post or Tonight Show. • Coverage - The potential audience that might receive the message through the the vehicle. • Reach - The actual number of individual audience members reached at least once by the vehicle. • Frequency - The number of times the receiver is exposed to vehicle in a specific time period.

  4. Differences Between Levels of Message Involvement and Number of Responses

  5. Media Classifications Most mass media guarantee only the opportunity for a large audience to be exposed to a brand. Communication vehicles are specific publications, networks, channels, stations, and programs that make up a medium.

  6. Media Classification Levels

  7. Media Intrusiveness Media vary in their degree of intrusiveness. Ways to reduce intrusiveness include: • Chose media in which the target audience is interested in the product. • Ask customers what type of information they would like to receive, in what way, and when.

  8. Relative Degrees ofMedia Intrusiveness

  9. Print media include: Newspapers Magazines Directories Mail brochures Mail Packaging All other forms, which are produced by printing and are relatively permanent Print Media

  10. Advantages High coverage Low cost Short lead time for placing ads Ads can placed in interest sections Timely (current ads) Reader controls exposure Can be used for coupons Disadvantages Short life Clutter Low attention-getting capabilities Poor reproduction quality Selective reader exposure Newspapers Characteristics

  11. Advantages Segmentation potential Quality reproduction High information content Longevity Multiple readers Disadvantages Long lead time for ad placement Visual only Lack of flexibility Magazines Characteristics

  12. A directory is both a reference and an advertising medium. The most widely known is the Yellow Pages. Yellow Pages advertising is often the primary or only form of advertising used by many small, local retailers. A weakness of the Yellow Pages is that they are printed only once a year. Directories

  13. Broadcast media include radio and television. Broadcast media differs from print in that people often do other things while listening or viewing, so messages are fleeting. Broadcast commercials are more intrusive than print ads. Broadcast Media

  14. BMG

  15. Radio’s Daily Reach byDaypart for Adults 18+

  16. Advantages Local coverage Low cost High frequency Flexible Low production costs Well-segmented audiences Disadvantages Audio only Clutter Low attention getting Fleeting message Radio Characteristics

  17. Advantages Mass coverage High reach Impact of sight, sound, and motion High prestige Low cost per exposure Attention getting Favorable mage Disadvantages Low selectivity Short message life High absolute cost High production costs Clutter Television Characteristics

  18. Advantages Location specific High resolution Easily noticed Disadvantages Short exposure time requires short ad Poor image Local restrictions Outdoor Characteristics

  19. INTERACTIVE • A VARIETY OF MEDIA THAT ALLOWS THE CONSUMER TO INTERACT WITH THE SOURCE OF THE MESSAGE, ACTIVELY RECEIVING INFORMATION AND ALTERING IMAGES, RESPONDING TO QUESTIONS, AND SO ON.

  20. INTERACTIVE MEDIA • AUDIOTEX • AUTOMATED TELEPHONE INFORMATION SERVICES • CD-ROM • FAX ON DEMAND • INTERACTIVE TV • INTERNET • KIOSKS • AVAILABLE IN HOTELS, SHOPPING MALLS • ONLINE SERVICES • AMERICAN ONLINE, PRODIGY • SCREEN TELEPHONY • TELEPHONES EQUIPPED WITH KEYBOARD TO ENTER AND ACCESS DATA

  21. Advantages User selects product information User attention and involvement Interactive relationship Direct selling potential Flexible message platform Disadvantages Limited creative capabilities Web snarl (crowded access) Technology limitations Few valid measurement techniques Limited reach Internet / Interactive Media Characteristics

  22. Advantages High selectivity Reader controls exposure High information content Opportunities for repeat exposures Disadvantages High cost/contact Poor image (junk mail) Clutter Direct Mail Characteristics

  23. Marketing Strategy Plan Creative Strategy Plan Setting Media Objectives Determining Media Strategy Selecting Broad Media Classes Selecting Media Within Class Media Use Decision — Broadcast Media Use Decision — Print Media Use Decision — Other Media Developing the Media Plan Situation Analysis

  24. MARKET ANALYSIS AND TARGET MARKET IDENTIFICATION • ADVERTISING TARGET • SIMMONS MARKET RESEARCH BUREAU--AUDIENCE SIZE AND COMPOSITION--100 PUBLICATIONS, >800 CONSUMER PRODUCTS AND SERVICES • MEDAIMARK RESEARCH, INC--DEMOGRAPHIC & PRODUCT USAGE, PROVIDES LIFESTYLE INFORMATION & MEDIA USAGE CHARACTERISTICS OF THE POPULATION • WHERE TO PROMOTE • BUYING POWER INDEX--SALES & MARKETING MGT MAGAZINE • BRAND DEVELOPMENT INDEX • CATEGORY DEVELOPMENT INDEX

  25. ESTABLISHING MEDIA OBJECTIVES • GOALS FOR THE MEDIA PROGRAM • LIMITED TO THOSE THAT CAN BE ACCOMPLISHED THROUGH MEDIA • EXAMPLES • USE BROADCAST MEDIA TO PROVIDE COVERAGE OF 80 % OF THE TARGET MARKET OVER A SIX MONTH PERIOD • REACH 60% OF THE TARGET AUDIENCE AT LEAST THREE TIMES OVER THE SAME SIX-MONTH PERIOD

  26. MARKET ANALYSIS AND TARGET MARKET IDENTIFICATION--continued • INTERNAL FACTORS--SIZE OF MEDIA BUDGET, MGT & ADMIN CAPABILITIES, ORGANIZATION OF THE AGENCY • EXTERNAL FACTORS--ECONOMY, RAISING COST OF MEDIA, TECHNOLOGY • SURVEY OF BUYING POWER INDEX--POTENTIAL OF A METRO AREA

  27. MARKET ANALYSIS AND TARGET MARKET IDENTIFICATION--continued • BRAND DEVELOPMENT INDEX--COMPARES % OF THE BRAND’S TOTAL U.S. SALES IN A GIVEN MARKET AREA WITH THE % OF TOTAL POPULATION IN THE MARKET TO DETERMINE SALES POTENTIAL • CATEGORY DEVELOPMENT INDEX--POTENTIAL FOR DEVELOPING THE TOTAL PRODUCT CATEGORY

  28. EVALUATION AND FOLLOW-UP • HOW WELL DID THESE STRATEGIES ACHIEVE THE MEDIA OBJECTIVES? • HOW WELL DID THIS MEDIA PLAN CONTRIBUTE TO ATTAINING THE OVERALL MARKETING AND COMMUNICATIONS OBJECTIVES

  29. Media Planning Difficulties • Lack of information • Inconsistent terms • Serious time pressure • Measurement problems

  30. Media Planning Criteria Considerations • The media mix • Target market coverage • Geographic coverage • Scheduling • Reach versus frequency • Creative aspects and mood • Flexibility • Budget considerations

  31. Brand Development Index Percentage of brand to total U.S. sales in market BDI = X 100 Percentage of total U.S. population in market Brand and Category Analysis

  32. BRAND DEVELOPMENT INDEX • A BDI IS CALCULATED BY DIVIDING THE PERCENT OF SALES A MARKET ACCOUNTS FOR, BY THE MARKET’S PERCENTAGE OF POPULATION OF THE U.S. AN INDEX OF 100 WOULD INDICATE A FLAT MARKET--SALES AND POPULATION ARE EQUAL. AN INDEX OF LESS THAN 100 WOULD INDICATE A POOR SALES MARKET--SALES ARE LESS THAN THE POPULATION, AND AN INDEX OVER 100 INDICATES A STRONG SALES MARKET • % POPULATION% SALESBDICOMMENTS • 6.28 6.28 100FLAT SAL MKT • 6.84 10.71 157 STRONG SAL MKT • 10.06 8.34 83 WEAK SAL MKT

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

  34. Brand and Category Analysis HighBDI LowBDI High market share Good market potential Low market share Good market potential High CDI High market share Monitor for sales decline Low market share Poor market potential LowCDI

  35. Brand and Category Analysis HighBDI Low BDI The market usually represents good sales potential for both the product and the brand. The product category shows high potential but the brand isn’t doing well; the reason should be determined. High CDI 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. Low CDI

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

  37. Continuity Flighting Pulsing Three Scheduling Methods Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

  38. Reach of One Program Reach of Two Program Total market audience reached Total market audience reached Total reached with both shows Total reach less duplicate Reach and Frequency Duplicated Reach of Both Unduplicated Reach of Both

  39. 25% Ineffective Reach 20% Effective Reach 15% Ineffective Reach 10% 5% 0% 0 5 10 15 Graph of Effective Reach Percentage Reach Exposures

  40. Marketing Factors Important toDetermining Frequency • Brand history • Brand share • Brand loyalty • Purchase cycles • Usage cycle • Competitive share of voice • Target group

  41. Message or CreativeFactors Important toDetermining Frequency • Message complexity • Message uniqueness • New vs. continuing campaigns • Image versus product sell • Message variation • Wearout • Advertising units

  42. Media Factors Important toDetermining Frequency • Clutter • Editorial environment • Attentiveness • Scheduling • Number of media used • Repeat Exposures

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

  44. Determining RelativeCost of Media Cost per rating point (CPRP) Cost of commercial time CPRP = Program rating

  45. COST OF MEDIA MAGAZINE • PER-PAGE COST $156,000 • CIRCULATION 4.0MM • CALCULATION OF CPM 156,000 X 1,000 4,000,000 • CPM $39.00 • BROADCAST • COST PER-PER SPOT AD $3,500 • RATING 11 • REACH (HOUSEHOLDS) 109,000 • CALCULATION $3,500/11 • CPRP $318.18

  46. COST OF MEDIA--CONTINUED • NEWSPAPER • COST PER PAGE $32,205 • COST PER INCH $268.60 • CIRCULATION 499,000 • CALCULATION • CPM PAGE COST X 1,000 CIRCULATION • CPM $32,205 X 1,000 499,000 $64.54

  47. CHARACTERISTICS OF MEDIA • MATCHING OF MEDIA TO MARKETS • EACH MEDIA HAS ITS OWN CHARACTERISTICS THAT MAKES IT BETTER OR WORST FOR ATTAINING SPECIFIC OBJECTIVES