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Wesleyan University – PhilippinesMaria Aurora, Aurora
COLLEGE OF BUSINESS ADMINISTRATION
IN PARTIAL FULFILLMENT
OF THE REQUIREMENTS TO THE DEGREE OF
BACHELOR OF SCIENCE IN BUSINESS ADMINISTRATION
MAJOR IN MARKETING MANAGEMENT
A TERM PAPER FOR A REPORT
PRESENTED TO:
MADAM CASSEY N. BUENAVENTURAPROFESSOR
WESLEYAN UNIVERSITY- PHILLIPINESMARIA AURORA, AURORA
PRESENTED BY:
LAARNI CATIPONAPRIL HABALA
LORRAINE GOSEHYCHELLE JOY CHAN
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Wesleyan University – PhilippinesMaria Aurora, Aurora
COLLEGE OF BUSINESS ADMINISTRATION
Chapter 10
MEDIA PLANNING AND
STRATEGY
Chapter Objectives:
To understand the key terminology used in media planning.
To know how a media plan is developed.
To know the process of developing and implementing media strategies.
To be familiar with sources of media information and characteristics of media
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Wesleyan University – PhilippinesMaria Aurora, Aurora
COLLEGE OF BUSINESS ADMINISTRATION
SOME BASIC TERMS AND CONCEPT
Media Planning- is the series of decision involved in delivering the promotional message to the
prospective purchasers and/or users of the product or brand.
Guide for Media Selection:
specific Media Objectives
Specific Media Strategies
Medium- is the general category of available delivery systems, which includes broadcast media,
print media, direct marketing, outdoor advertising, and other support media.
Media Vehicle- is the specific carrier within a medium category.
Reach- is a measure of the number of different audience members exposed at least once to a
media vehicle in a given period of time.
Coverage- refers to the potential audience that might receive the message through a vehicle.
Frequency- refers to the number of times the receiver is exposed to the media vehicle in a
specified period.
THE MEDIA PLAN: determines the best way to get the advertiser’s message to the market.
Goal of Media Planning:
To find that combination of media that enables the marketer to communicate the message
in the most effective manner to the largest number of potential customer.
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Wesleyan University – PhilippinesMaria Aurora, Aurora
COLLEGE OF BUSINESS ADMINISTRATION
PROBLEMS IN MEDIA PLANNING:
1. Insufficient Information
-the lack of information is even more of a problem for small advertisers, or smaller
markets, which may be able to afford to purchase the information they require. As a result their
decisions are based on limited or out-of-date data that were provided by the media themselves or
no data at all.
2. Inconsistent Terminologies
-problems arise because the cost bases used by different media often vary and the
standards of measurement used to establish these costs are not always consistent.
3. Time Pressures
-it seems that advertisers are always in a hurry- sometimes they need to be; other times
because they think that they need to be.
4. Difficulty Measuring Effectiveness
-because it is so hard to measure the effectiveness of advertising and promotions in
general, it is also difficult to determine the relative effectiveness of various media or media
vehicles.
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Wesleyan University – PhilippinesMaria Aurora, Aurora
COLLEGE OF BUSINESS ADMINISTRATION
Figure 10-4: Developing the Media Plan
Figure 10-3: Activities involved in developing the Media Plan
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The Situation AnalysisPurpose: To understand the marketing problem. An analysis is made of a company and its competitors on the basis of:
1. Size and share of the total market.
2. Sales history, costs, and profits.
3. Distribution practices4. Methods of selling5. Use of advertising6. Identification of
prospects7. Nature of product
The Marketing Strategy PlanPurpose: To plan activities that will solve one or more of the marketing problems includes the determination of:
1. Marketing objectives2. Product and spending
strategy3. Distribution strategy4. Which elements of the
marketing mix is to be used?
5. Identification of “best” market segments.
The Creative Strategy PlanPurpose: To determine what to communicate through advertisements includes the determination of:
1. How products meet consumer needs?
2. How product can be position in advertisement?
3. Copy themes.4. Specific objectives of
each advertisement.5. Number and sizes of
advertisements
Setting Media ObjectivesPurpose: To translate marketing objectives and strategies into goals that media can accomplish.
Determining Media StrategyPurpose: To translate media goals into general guidelines that will control the planner’s selection and use
of media. The best strategy alternatives should be selected.
Selecting broad Media ClassesPurpose: To determine which broad class of media best fulfills the criteria. Involves comparison and
selection of broad media classes such as newspaper, magazines, radio, television, and others. The analysis is called intermedia comparisons. Audience size is one of the major factors used in comparing the various
media classes.
Market Analysis
Establishment of media objectives
Media strategy development and implementation
Evaluation and Follow-up
Wesleyan University – PhilippinesMaria Aurora, Aurora
COLLEGE OF BUSINESS ADMINISTRATION
To whom shall we advertise?
Index number- is considered a good indicator of the potential of the market. This number is
derived from the formula.
THE FORMULA:
Index= percentage of users in a demographic segment x 100
percentage of population in the same segment
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Selecting Media within classesPurpose: To compare and select the best media within broad classes, again using predetermined criteria.
Involves making decisions about the following:1. If magazines were recommended then which magazines?
2. If television was recommended, then* Broadcast or cable television * If network, which program?
* Network or spot television * If spot, which market?3. If radio or newspapers were recommended, then
** Which markets shall be used?** What criteria shall buyers use in making purchases of local media?
Media use decisions- broadcast
1. What kind of sponsorship, (sole,
shared, participating, or other)?
2. What levels of reach and frequency will be
required?3. Scheduling: On which
days and month are commercials to
appear?4. Placement of spots: In
programs or between programs?
Media use decision- print1. Number of ads to
appear and on which days and months.
2. Placements of ads: Any preferred position within
media?3. Special treatment:
Gatefolds, bleeds, color, etc.
4. Desired reach or frequency levels
Media use decisions- other media
1. Billboards2. Location of markets
and plan of distribution.
3. Kinds of outdoor boards to be used.
4. Other media: Decisions' peculiar to those media.
Wesleyan University – PhilippinesMaria Aurora, Aurora
COLLEGE OF BUSINESS ADMINISTRATION
Example:
Age Segment Population in segment (%) Product use in segment (%) Index
16-24 15.1 18.0 119
25-34 25.1 25.0 100
35-44 20.6 21.0 102
45+ 39.3 36.0 91
What Internal and External Factors are Operating?
Internal Factors
-may involve the size of the media budget, managerial and administrative capabilities, or
the organization of the agency.
External Factors
- may include the economy (the rising costs of media), changes in technology (the
availability of new media), competitive factors, and the like.
Figure 10.8: Organizing the Media Buying Department
Form 1- Employs a product/media focus
Form 2- Places more emphasis on the market itself
Form 3- Organizes around media classes alone
Where to Promote?
-the question of where to promote relates to geographic considerations.
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Wesleyan University – PhilippinesMaria Aurora, Aurora
COLLEGE OF BUSINESS ADMINISTRATION
Using Indexes to Determine where to promote:
1. The survey of buying power index
- publish annually by Sales & Marketing Management magazines.
- It is based on number of factors, including population, effective buying income, and the
total retail sales in the area.
-it helps the marketer to determine which geographic areas to target.
2. The brand development index (BDI)
-helps marketers factor the rate of product usage by geographic area into the decision
process.
THE FORMULA:
BDI= percentage of brand to total US sales in the market x 100
percentage of total US population in the market
Figure 10-10: Calculating BDI
BDI= percentage of brand to total US sales in the market x 100
percentage of total US population in the market
= 50% x 100
16%
= 312
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Wesleyan University – PhilippinesMaria Aurora, Aurora
COLLEGE OF BUSINESS ADMINISTRATION
3. The category development index (CDI)
-is computed in the same manner as the BDI, except it uses information regarding the
product category (as opposed to the brand) in the numerator.
- It provides information on the potential for development of the total product category
rather than specific brands.
THE FORMULA:
CDI= percentage of product category total sales in market x 100
percentage of total US population in market
Figure 10-11: Using CDI and BDI to determine market potential:
CDI= percentage of product category total sales in market x 100
percentage of total US population in market
= 1% x 100
1%
= 100
BDI= percentage of brand to total US sales in the market x 100
percentage of total US population in the market
=2% x 100
1%
=200
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Wesleyan University – PhilippinesMaria Aurora, Aurora
COLLEGE OF BUSINESS ADMINISTRATION
Figure 10-11: Using BDI and CDI indexes
High BDI Low BDI
High CDI High market share
Good market potential
Low market share
Good market potential
Low CDI High market share
Monitor for sales decline
Low market share
Poor market potential
High BDI and High CDI This market usually represents good sales potential for both the
product category and the brand.
High BDI and Low CDI The category is not selling well, but the brand is probably a good
market to advertise in but should be monitored for declining sales.
Low BDI and High CDI The product category shows high potential but the brand is not
doing well, the reason should be determined.
Low BDI and Low BDI Both the product category and the brand are doing poorly, not
likely to be a good place for advertising.
Establishing Media Objectives:
-the goals for the media program and should be limited to those that can be accomplished
through media strategies.
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Wesleyan University – PhilippinesMaria Aurora, Aurora
COLLEGE OF BUSINESS ADMINISTRATION
Example:
* ** Use of 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.
*** Concentrate heaviest advertising in winter and spring, with lighter emphasis is summer or
fall.
Developing and Implementing Media Strategies:
1. THE MEDIA MIX
-a wide variety of media and media vehicles are available to advertisers.
-the objectives sought the characteristic of the product or service, the size of the budget,
and individual preferences are just some of the factors that determine what combination
of media will be used.
2. TARGET MARKET COVERAGE
-the media planner must determine which target markets should receive the most media
emphasis.
3. GEOGRAPHIC COVERAGE
-the objective of weighting certain geographic areas more than others make sense, and the
strategy of exerting more promotional efforts in those areas follows naturally.
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Wesleyan University – PhilippinesMaria Aurora, Aurora
COLLEGE OF BUSINESS ADMINISTRATION
4. SCHEDULING
-The primary objective of scheduling is to time promotional effort so that they will coincide with
the highest potential buying times.
Three scheduling methods:
Continuity- refers to a continuous pattern of advertising which may mean every day,
every week, or every month.
flighting - employs a less regular schedule, with intermittent periods of advertising and
non advertising.
Pulsing- continuity is maintained, but at certain times promotional efforts are stepped
up.
Determining Effective Reach:
effect reach
- represents the percentages of vehicles audiences reached at each effective
frequency increment.
average frequency
- Or the average number of times the target audience reached by media schedule
is exposed to the vehicle over a specified period.
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Wesleyan University – PhilippinesMaria Aurora, Aurora
COLLEGE OF BUSINESS ADMINISTRATION
5. CREATIVE ASPECTS AND MOODS
creative aspects
- in some situations, the media strategy to be pursued maybe the driving forced
behind the creative strategy, as the media and creative departments work closely together to
achieved the greatest impact with the audience of the specific media.
mood
- Certain media enhance the creativity of a message because they create a mood
that carries over to the communication.
6. FLEXIBILITY
-an effective media strategy requires a degree of flexibility. Because of the rapidly
changing marketing environment, strategies may need to be modified.
Flexibility may be needed to address the following:
1. Market opportunities
2. Markets threats
3. Availability of media
4. Changes in media vehicles
5. Budget Considerations
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Wesleyan University – PhilippinesMaria Aurora, Aurora
COLLEGE OF BUSINESS ADMINISTRATION
Advertising and promotional costs can be categorized in to two ways:
1. Absolute cost- of the medium or vehicle is the actual total cost required to the placed the
message.
2. Relative cost- refers to the relationship between the priced paid for advertising time or
space and the size of the audience delivered.
Determining relative Cost of media:
following are the cost bases used:
1. Cost per thousand(CPM) four years the Magazine industry has provided cost breakdown on
the basis of cost per thousand people reach.
The Formula:
CPM=Cost of ad space(Absolute cost) x 1000
Circulation
2. Cost per rating point (CPRP)-the broadcast media provide a different comparative cost
figure, referred to as per point or cost per point (CPP).
The Formula:
CPRP=cost of commercial time
program rating
3. Daily inch rate- for newspaper cost effectiveness is based on the daily inch rate, which is the
cost per column inch of the paper.
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Wesleyan University – PhilippinesMaria Aurora, Aurora
COLLEGE OF BUSINESS ADMINISTRATION
The formula:
Television: Cost of 1 unit of time x 1000
Program rating
newspapers: cost of ad space x 1000
circulation
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Wesleyan University – PhilippinesMaria Aurora, Aurora
COLLEGE OF BUSINESS ADMINISTRATION
CHAPTER 11
TV NETWORKS AND ADVERTISERS OVER VIEWER
TELEVISION:
- Said to be the ideal medium for advertising.
- Has the ability to combine visual images, sound, motion, and color presents the
advertisers with the opportunity to develop the most creative and imaginative appeals of
medium.
ADVANTAGES OF TELEVISION
1. CREATIVITY AND IMPACT
The greatest advantage of TV is the opportunity, it provides for presenting the advertising
message. The interaction of sight and sounds offers tremendous creative flexibility and makes
possible dramatic, lifelike representations of products and services.
Example: Print ads are effective for showing a product such as a high-definition television and
communicating information regarding its features.
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Wesleyan University – PhilippinesMaria Aurora, Aurora
COLLEGE OF BUSINESS ADMINISTRATION
2. COVERAGE AND COST EFFECTIVENESS
Television advertising makes it possible to reach large audiences. Nearly everyone,
regardless of age, sex, income, or educational level, watches at least some TV.
3. CAPTIVITY AND ATTENTION
Television is intrusive in the commercials to impose themselves on viewers as they watch
their favorite programs. Unless we make a special effort to avoid commercials, most of us are
expose to thousand of them each year.
4. SELECTIVE AND FLEXIBILITY
Television has often been criticized for being a nonselective medium, since it is difficult
to reach a precisely defined market segment through the use of TV advertising. But some
selectivity is possible due to variation in the composition of audiences as a result of program
content, broadcast time, and geographic coverage.
LIMITATIONS OF TELEVISION
Although television is unsurpassed from a creative perspective, the medium has several
disadvantages that limit or preclude its use by many advertisers. These problems include:
High cost
The lack of selectivity
The fleeting nature of a television message
Commercial clutter
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Wesleyan University – PhilippinesMaria Aurora, Aurora
COLLEGE OF BUSINESS ADMINISTRATION
Limited viewer attention and
Distrust of TV ads
HIGH COST
Despite the efficiency of TV in reaching large audiences, it is an expensive medium in
which to advertise. The high cost of TV stems not only from the expense of buying airtime but
also from the cost of producing a quality commercial. Production cost for a national brand 30
second spot average nearly $400,000 and can reach over a million for more elaborate
commercial.
LACK OF SELECTIVITY
Some selectivity is available in television through variations in programs and cable TV.
However, advertisers who are seeking a very specific, often small, target audience find the
coverage of TV often extends beyond their market, reducing its cost effectiveness. Geographic
selectivity can be a problem for local advertisers such as retailers, since a station bases its rates
on the total market area reaches.
FLEETING MESSAGE
TV commercials usually last only 30 seconds or less and leave nothing tangible for the
viewer examine or consider. Commercials have become shorter and shorter as the demand for a
limited amount of broadcast time has intensified and advertisers try to get more impression from
their media budgets.
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Wesleyan University – PhilippinesMaria Aurora, Aurora
COLLEGE OF BUSINESS ADMINISTRATION
CLUTTER
The problem of fleeting messages and shorter commercials are compounded by the fact
that the advertiser’s message is only one of many spots and other non-programming material
seen during a commercial break, so it may have trouble being noticed.
LIMITED VIEWER ATTENTION
When an advertiser buys time on a TV program, they are not purchasing guaranteed
exposure but rather the opportunity to communicate a message to large numbers of
consumer. But there is increasingly evidence that the size of the viewing audience shrinks
during a commercial break.
Zipping- occurs when viewers fast-forward through commercials as they play back a previously
recorded program.
Zapping- refers to changing channels to avoid commercials.
DISTRUST AND NEGATIVE EVALUATION
To many critics of advertising, TV commercials personify everything that is wrong with
the industry. Critics often single out TV commercials because of their persuasiveness and
the intrusive nature of the medium.
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Wesleyan University – PhilippinesMaria Aurora, Aurora
COLLEGE OF BUSINESS ADMINISTRATION
BUYING TELEVISION TIME:
Network vs. Spot- a basic decision for allocating their TV media budgets to network
versus local or spot announcements.
1. Network Advertising- a common way of advertisers disseminate their messages is
by purchasing airtime from a television network.
2. Spot and Local market
Spot Advertising- refers to the commercials shown on local TV stations, with time
negotiated and purchased directly from the individual stations.
National Spot Advertising- all non-network advertising done by a national
advertiser.
Local Advertising-local advertisers want media whose coverage is limited to the
geographic markets which they do business.
Syndications- a syndicator seeks to sell its program to one station in every market.
1. Off- network Syndicator- shows are very important to local stations because
they provide quality programming with an established audience.
2. First- run Syndications- refers to shows produce specifically for the
syndication market.
3. Advertisers- supported or barrier syndication- is the practice of selling shows
to stations in return for a portion of the commercial time in the show, rather
than cash.
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Wesleyan University – PhilippinesMaria Aurora, Aurora
COLLEGE OF BUSINESS ADMINISTRATION
METHODS OF BUYING TIME:
1. Sponsorship- under sponsorship arrangement, an advertiser assumes
responsibility for the production and usually content of the program as well as
the advertising that appears within it.
2. Participation- most advertisers either cannot afford the costs of sponsorship
or want greater flexibility than sole sponsorship permits.
Advantage of Participation:
a. The advertiser has no long- term commitment to a program and
expenditures can be adjusted to buy whatever number of participation
spots fits within the budget.
b. The TV budget can be spread over a number of programs, thereby
providing for greater reach in the media schedule.
Disadvantage of Participation:
a. The advertiser has a little control over the placement ads, and there
may be problems with availability.
3. Spot Announcement-are brought from the local stations and generally appear
during time period adjacent to network programs, rather than within them.
-are most often used purely local advertisers but are also bought by companies
with no network schedule and by large advertisers that use both network and
spot advertising.
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Wesleyan University – PhilippinesMaria Aurora, Aurora
COLLEGE OF BUSINESS ADMINISTRATION
Selecting Time Periods and Programs:
Another consideration in buying TV time is selecting the right period and program for the
advertisers commercial messages.
Cable Television:
Perhaps the most significant development in the broadcast media has been the expansion
of cable television, cable or CATV (community antenna television) which delivers TV signals
through finer or coaxial wire rather than airways, was developed to provide reception to remote
areas that couldn’t receive broadcast signals.
Superstation-independent local stations that sends there signals nationally via satellite to
cable operators to make their programs available to subscriber.
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