WEB EXERCISE 6 Media Planning and Strategy Focus: Chapter 10 For this exercise, you will first read an expert’s evaluation of two travel sites’ media strategies— Expedia.com and Priceline.com. You can

 In the most effective manner  To the largest number of potential customers  At the lowest cost 10 - 5Activities Involved in Developing the Media Plan Selecting media within classSelecting broad media classes Determining media strategy Media use decisions — printMedia use decisions — broadcast Media use decisions — other mediaSetting media objectives Marketing strategy planSituation analysis Creative strategy plan 10 - 6Problems in Media Planning  Insufficient information  Sweeps periods : Used for measuring TV audiences and setting advertising rates  Inconsistent terminologies  Time pressures  Difficulty measuring effectiveness 210 - 7Developing the Media Plan 10 - 8Target Market Identification  Primary research and/or secondary sources help determine which specific groups to target  Index number : Good indicator of the potential of a market 10 - 9Figure 10.7 - How High Indexes can be Misleading 10 - 10Internal and External Factors Influencing Media Strategies  Internal factors  Size of the media budget  Managerial and administrative capabilities  Organization of the agency  External factors  Rising costs of media  Changes in technology  Competitive factors 10 - 11Using Indexes to Determine Where to Promote Survey of buying power index • Charts the potential of a particular metro area, county, or city relative to the United States as a whole • Gives media planners insight into the relative value of a market Brand development index (BDI) • Factors the rate of product usage by geographic area into the decision process Category development index (CDI) • Provides information on the potential for development of the total product category and not specific brands 10 - 12Figure 10.10 - Using CDI and BDI to Determine Market Potential 310 - 13Using BDI and CDI Indexes 10 - 14Criteria Considered in the Development of Media Plans 10 - 15Media Mix  Adds more versatility to the media strategies  Increases coverage, reach, and frequency levels  Improves the likelihood of achieving overall communications and marketing goals 10 - 16Target Market Coverage  Matches the most appropriate media to a market  Goal - Extend media coverage to members of the target audience while minimizing waste coverage  Waste coverage : Media coverage that reaches people who are not potential buyers and/or users 10 - 17Figure 10.13 - Marketing Coverage Possibilities 10 - 18Scheduling  Timing promotional efforts such that they coincide with the highest potential buying times  Methods  Continuity : Regular pattern of advertising without gaps or nonadvertising periods  Flighting : Involves intermittent periods of advertising and nonadvertising  Pulsing : Maintains continuity, but promotional efforts are stepped up at times 410 - 19Three Methods of Promotional Scheduling 10 - 20Characteristics of Scheduling Methods Advantages Disadvantages Continuity • Serves as a constant reminder to the consumer • Covers the entire buying cycle • Allows for media priorities • Higher costs • Potential for overexposure • Limited media allocation possible Flighting • Cost efficiency of advertising only during purchase cycles • Allows for more than one medium or vehicle with limited budgets • Weighting may offer more exposure and advantage over competitors • Increased likelihood of wearout • Lack of awareness, interest, retention of promotional message during nonscheduled times • Vulnerability to competitive efforts during nonscheduled periods Pulsing • All of the same as the previous two methods • Not required for seasonal products 10 - 21Representation of Reach and Frequency 10 - 22Ratings Points • Measure of potential reach in the broadcast industryProgram rating • GRP = Reach × FrequencyGross ratings points (GRPs) • Number of people in the primary target audience the media buy will reach, and the number of times • Does not include waste coverageTarget ratings points (TRPs) 10 - 23Effective Reach  Represents the percentage of audience reached at each effective frequency increment  Based on assumption that one exposure to an ad may not be enough to convey the desired message 10 - 24Graph of Effective Reach This slide can be used to explain the concept of effective reach and the fact that viewers may need to be exposed to a message more than once for successful communication to occur.

Effective reach, as shown on the shaded area of this graph, is between 3 to 10 exposures. Fewer than 3 exposures is considered inefficient reach, while more than 10 is considered overexposure. The exposure level is no guarantee of effective communication, as different messages may require more or fewer exposures.

This graph shows 3 exposures to be a minimum. However, recent literature suggests that, in the current environment where consumers are exposed to thousands of daily messages, effective reach may now require a minimum of 12 messages.

Additionally, the complexity of the message, message length, and recency of the exposure can also have an impact on effective reach. 510 - 25Factors Important in Determining Frequency Levels Marketing factors • Brand history • Brand share • Brand loyalty • Purchase cycles • Usage cycle • Competitive share of voice • Target group Message Factors • Message complexity • Message uniqueness • New versus continuing campaigns • Image versus product sell • Message variation • Wearout • Advertising units Media Factors • Clutter • Editorial environment • Attentiveness • Scheduling • Number of media used • Repeat exposures 10 - 26Recency Planning  Focusing on short interval reach at minimum frequency levels as close to the purchase decision as possible  Has continuous schedule over a one week period  Targets less to gain exposure to reach as many potential consumers as possible 10 - 27Creative Aspects and Mood  Creative aspects  Effective implementation of creativity requires appropriate medium  Required media and creative departments to work together to achieve the greatest impact with the audience  Mood  Appropriate media should be used to create a mood that enhances the creativity of a message 10 - 28Flexibility  Helps in dealing with:

 Market opportunities  Market threats  Availability of media  Changes in media or media vehicles 10 - 29Budget Considerations  Absolute cost : Actual total cost required to place the message  Relative cost : Relationship between price paid for advertising time or space and the size of audience delivered  Used to compare media vehicles 10 - 30Determining Relative Costs of Media Cost per thousand (CPM) Cost per ratings point (CPRP) Daily inch rate 610 - 31Target Cost Per Thousand (TCPM) Calculates CPMs based on the target audience, not the overall audience 10 - 32Factors to Consider During Evaluation and Follow - up Effectiveness of the strategies in achieving the media objectives Media plan’s contribution in attaining the overall marketing and communications objectives 10 - 33Media Characteristics Media Advantages Disadvantages Television • Mass coverage and high reach • Impact of sight, sound, and motion • High prestige • Low cost per exposure • Attention getting • Favorable image • Low selectivity • Short message life • High absolute cost • High production costs • Clutter Radio • Local coverage • Low cost • High frequency • Flexible • Low production costs • Well - segmented audiences • Audio only • Clutter • Low attention getting • Fleeting message Magazines • Segmentation potential • Quality reproduction • High information content • Longevity • Multiple readers • Long lead time for ad placement • Visual only • Lack of flexibility 10 - 34Media Characteristics Media Advantages Disadvantages Newspapers • High coverage and l ow cost • Short lead time for placing ads • Ads can be placed in interest sections • Timely (current ads) • Reader controls exposure • Can be used for coupons • Short life and poor reproduction quality • Clutter • Low attention - getting capabilities • Selective exposure Outdoor • Location specific • High repetition • Easily noticed • Short ads • Poor image • Local restrictions Direct mail • High selectivity • Reader controls exposure • High information content • Enables repeat exposures • High cost/contact • Poor image (junk mail) • Clutter Digital/ Interactive • User selects information • User attention • Interactive relationship • Direct selling potential • Flexible message platform • Privacy concerns • Potential for deception • Clutter • Lack of measurement techniques