Marketing 434 exam 2 Business & Marketing Term Paper

Mktg 434: TRADITIONAL MEDIA CHANNELS CH 8 ADVERTISING CAMPAIGN • The media strategy • Media planning processes and the roles of the media planner and buyer • Advertising objectives • Media choices based on the advantages and disadvantages of each medium • Media selection in business-to-business and international settings Review Figure 8.1 p. 208 THE MEDIA STRATEGY • A media strategy is the process of analyzing and choosing media for an advertising and promotions campaign. • The strategy must take into account several factors, which should have been specified in a creative brief: Review Figure 8.2, p. 209 • Examples of times when workers are exposed to advertisements. MEDIA PLANNING • Media planning begins with a careful analysis of the target market o Focus on consumer behavior o Understand purchase patterns and processes o Analyze media choices The components of a media plan (Figure 8.3 p.209) • A marketing analysis to review the fundamental marketing program • An advertising analysis to spell out fundamental advertising strategy • A media strategy to state the media to be used and creative consideration • Media scheduling notes the times ads will appear • Justification and summary to state the measures and the rationale for media choices Media Planners • Plan when and where to place advertisements • Work closely with creatives and account executives • Conduct research to ensure appropriate match between product, media, market • Gather information about various media Media Buyers • Purchases the space • negotiating rates, times, schedules for ads Differences in effectiveness of advertising are often related to: • Quality media choices (the right ones) made by each agency • Creativity • Financial stewardship (“bang” for your advertising buck) • Agency culture and track record • Computer systems to analyze data • Relationships between the agency and the medium’s sales representative ADVERTISING TERMINOLOGY (Figure 8.4, p. 211) R: Reach F: Frequency I: Impact 1 Opportunity to See (OTS) • OTS is the cumulative exposures achieved in a given time period. Gross Rating Points • Gross rating points (GRP) measure of the impact or intensity of a media plan. • GRPs are calculated by multiplying a vehicle’s rating by the frequency or number of insertions of an advertisement Cost • Cost is a measure of overall expenditures associated with an advertising program or campaign • A second useful number that can be calculated to measure the costs of a program is the cost per thousand (CPM) of the program • Figure 8.5, p. 212 presents hypothetical media information for select magazines The cost per thousand is calculated by using the following formula: CPM = (cost of media buy I total audience) x 1,000 To calculate the Cost Per Rating Point (CPRP), the formula is: CPRP = cost of media buy I vehicle’s rating To calculate the weighted (or demographic) CPM, the formula is: Weighted CPM = adv. cost x 1,000/ actual audience reached • Figure 8.6 calculates weighted or demographic CPM Ratings and Cost per Rating Point • Ratings measure the percentage of a firm’s target market that is exposed to a television show or the number of readers of a print medium. • In order to compare media, a measure called the cost per rating point (CPRP) may be used. The cost per rating point formula that measures the relative efficiency of a media vehicle relative to a firm’s target market is: CPRP = Cost of media buyNehicle’s rating Timing • Continuity (Continuous) o A continuous campaign buys media time in a steady stream throughout the year. • Pulsating o A firm advertises some throughout the whole year, but will increase advertising in small, short bursts around special events, such as holidays. • Righting (discontinuous) o A flighting schedule places advertisements at special intervals during the year, with no advertising between. • Concentration o A firm spends all its ad money in a single period Impressions o The number of gross impressions represents the total exposures of an audience to an advertisement 2 ACHIEVING ADVERTISING OBJECTIVES The Three-Exposure Hypothesis o The three-exposure hypothesis suggests that it takes a minimum of three exposures for an advertisement to be effective. It has been followed by most media planners for quite a while. Recency Theory o Recency theory suggests that a consumer’s attention is selective and is focused on his or her individual needs and wants. o Rcency theory states that consumers use selective attention processes as they consider adverUsements. Attention is given to messages that might meet a person’s needs or wants. o When a consumer is contemplating a future purchase of the product being advertised, the more likely it becomes the consumer will pay attention to and react favorably toward an ad. o Recency theory notes that advertising is a waste of money when ads reach individuals who are not in the market for a particular product and for those who do not need the product. o The closer, or more recent, an ad is to a purchase, the more powerful the ad will be. Effective Reach and Frequency 1. Effective frequency, which refers to the number of times a target audience must be exposed to a message in order to achieve a particular objective. 2. Effective reach, which is the percentage of an audience that must be exposed to a particular message to achieve a specific objective. Effective reach and frequency are affected by differences in: • The interests, personalities, and exposures to the media outlets for individual consumers • The size and placement of ads • The number of different media being used in a particular advertising campaign Brand Recognition o The advertiser wants the consumer to recognize the brand, logo at the store or in an ad Brand Recall o To increase brand recall, frequency becomes more important than reach o Repetition helps embed a brand in the consumer’s cognitive memory. o Repetition increases the odds that a particular brand will come to mind Figure 8.7, p. 216 compares brand recognition to brand recall. MEDIA SELECTION Television (Figure 8.8: advantages and disadvantages of television advertising) Some Advantages of Television Advertising • High reach • High frequency potential • Low cost per contact • Quality creative opportunities • High intrusion value • Segmentation possibilities through cable Disadvantages of Television Advertising • Clutter • Channel surfing during commercials • Short amount of copy • High cost per ad • Low recall 3 Effective Television Advertising o The television shows selected should match the firm’s target market o Most television programs have well-defined audiences o The media planner looks for the best matches between the product’s target market and the television show’s audience profile Social Media and Television o Social media, mobile, and the internet can enrich television viewing experiences and actually drive consumers to watch more programs. o As the amount of time people spend on social media continues to increase, so will the online buzz about television shows. o By monitoring this type of online chatter, advertisers and their clients can gain a better perspective on which television shows to place ads. YouTube and Television o Many companies and advertising agencies post television ads on YouTube. o Some of the ads are placed on the site simultaneously with the TV launch (called in-stream) while others are be submitted to YouTube prior to the national launch (called pre-roll). Radio Advantages and disadvantages of radio advertising (Figure 8.10) Outdoor Advertising o Figure 8.11 summarizes the advantages and disadvantages of outdoor advertising. o Figure 8.12 lists the types of products that are advertised using outdoor and amounts of expenditures. Magazines (Figure 8.13) Newspapers (Figure 8.14) MEDIA MIX o Selecting the proper blend of media outlets for advertisements is a crucial activity as campaigns are prepared. o Media planners and media buyers are both excellent sources of information on what type of mix is the most effective for a particular advertising campaign. o Figure 8.15 provides advertising expenditures and average media mix percentages for Coca Cola. o Figure 8.16 suggests logical combinations of media. MEDIA SELECTION IN BUSINESS-TO-BUSINESS MARKETS Figure 8.17 identifies the ways business-to-business advertising expenditures are divided among the various media. INTERNATIONAL IMPLICATIONS o Understanding media viewing habits in international markets is important for successful advertising programs. o Media viewing is different, as is media buying in other countries. o In international settings, it is important to understand that the media habits of consumers vary as well as their daily life styles. 4