10/04/2017 1 Boris Kolar, Monash University , 2017 1 Lecture 7 Chapter 12 Media: Strategy and Choices (one part only) Integrated Marketing Communication (MKB 3461) Learning Objectives •To revise the concept of brand contact points and to understand the principles of brand contact points in media strategy. •To understand the key terminology used in media planning. •To recognise and be able to set media objectives. •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. •To understand the characteristics of media. 2 Media contacts 10-3 10/04/2017 2 Brand Contact Points (Fig. 10.1) 4 Touch Points with BRAND Intrinsic Company Created Customer Initiated Unexpected Traditional Media Landscape in Australia 5 Platform Media Number Television Commercial networks 4 Government & community 2 Subscription TV 120 Radio Stations 261 Print Magazines Consumer magazines 1100 Newspapers National daily 2 Metro daily 10 Metro Sunday 10 Regional 132 Suburban (community) 243 Cinema Screens 1907 Media spend, Australia 2009 Source: http://www.adnews.com.au/new s/australian-online-ad-spendgrows-to-6-8-billion Digital Mobile Press 10/04/2017 3 Definitions: Media Terminology 7 A series of decisions involving the delivery of messages to prospective purchasers or users of a product/service. Goals to be attained by the media strategy and program Decisions on how the media objectives can be attained . The various categories of delivery systems, including broadcast and print media Media planning Media objectives Media strategy Media Definitions: Media Terminology (cont.) 8 The number of times the receiver is exposed to the media vehicle in a specific time period The potential audience that might receive the message through the vehicle Number of different audience members exposed at least once in a given time period. (ACTUAL measure) The specific carrier within a media category (e.g. specific TV program, newspaper, magazine that will carry the MC message) Media vehicle Reach Coverage Frequency Overview of the Media Plan 9 Selecting media within class Selecting broad media classes Determining media strategy Media use decision — print Media use decision — broadcast Media use decision — other media Setting media objectives Marketing strategy plan Situation analysis Creative strategy plan 10/04/2017 4 Media Planning Difficulties 10 Time pressure Inconsistent terminology Lack of information Measurement problems Problems in media planning Media Research in Australia 11 Five Steps to Developing a Media Plan 12 Evaluate performance Analyse the market Establish media objectives Develop media strategy Implement media strategy 10/04/2017 5 Market Analysis: To whom shall we advertise? 13 Sources of information Internal sources  Situation analysis  Prior research  Databases External sources  Syndicated research  Commissioned research  Secondary sources Syndicated Research – ipod ownership 14 Analysing Syndicated Research 15 Percentage of users in a demographic segment Percentage of population in the same segment Index = x 100 Index number Index number: A ratio used to describe the potential of a market. The index number is derived by dividing the % of users in a market segment by the % of population in the same segment and multiplying by 100” (p. 613). Index number > 100: Product is proportionately greater in that segment than in one that is average (100) or less than 100. 10/04/2017 6 Syndicated Research – ipod usage 16 Percentage of users in a demographic segment Percentage of population in the same segment Index = x 100 18.0/15.1 x100 = 119 25.0/25.1 = 100 BUT look at the product usage rates. (Q) Which segment has the highest usage rate? (Q) What is the risk of just focusing on the 18-24 year old segment? Media Research in Australia AGE Segment (yrs) Population in Segment (%) Product Use in Segment (%) INDEX 18-24 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 1 7 The 18-24 age group have an above average index (119). [18 / 15.1 x 100 = 119] BUT should we target this group? Look at the product usage for this segment – it is only 18% meaning that 82% do not use this product. Now look at the 25-34 age group and the 45+ age group. Where to Promote 18 Influences Internal factors Size of budget Managerial capabilities External factors  Economy (media costs)  Technology (New media)  Competitive activity 10/04/2017 7 20 Establishing Media Objectives The media mix Reach vs. Frequency Target market coverage Creative aspects and mood Geographic coverage Flexibility Scheduling Budget considerations 2 1 Each of these factors need to be considered by marketers as they set about writing media objectives. The goal is to minimise wastage by using the wrong media vehicles/MC functions or an inappropriate schedule etc. 10/04/2017 8 Target Audience Coverage 22 Target Market Proportion Full Market Coverage Partial Market Coverage Coverage Exceeding Market Population excluding target market Target market Media coverage Media overexposure Student RESOURCES http://www.mediafederation.org.au/media_guideline.htm au.nielsen.com/site/documents/ShopperTrends08_AP_report.pdf Retail and ShopperTrends Asia Pacific 2008 File Format: PDF/Adobe Acrobat - View as HTML ShopperTrends. Asia Pacific 2008. The latest on FMCG and shopper retailing trends au.nielsen.com/site/documents/ShopperTrends08_AP_report.pdf [PDF] Global Consumer Confidence, Concerns and Spending a global Nielsen ... File Format: PDF/Adobe Acrobat - View as HTML Nielsen Global Consumer Confidence Index. 1st half, 2009 ... China bucks global trend, with 65 percent of Chinese thinking China's economy not in recession ... se.nielsen.com/.../NielsenGlobalConsumerConfidenceReport1stHalf09.pdf 22 23 Three Scheduling Methods 24 Continuity Pulsing Flighting Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Continuity – continuous pattern of advertising; every day, every week, or every month Flighting – intermittent periods of advertising and no advertising Pulsing – combination of the first two; continuity is maintained but at certain periods advertising is increased. 10/04/2017 9 25 http://www.sireproperties.com/images/MarketingPlanChart_2011.pdf 26 27 10/04/2017 10 Characteristics of scheduling methods Reach and Frequency Planning 29 How much reach is necessary? i.e. how many members of the target audience should be exposed to your message? What frequency level is needed? i.e. how many times should the average audience member be exposed to your message? Two key questions Reach and Frequency 30 A. Reach of one program Total market audience reached B. Reach of two programs Total market audience reached C. Duplicated reach of both Total reached with both shows. It is an estimate of frequency. D. Unduplicated reach of both Total reach less duplicate. It indicates Potential new exposures. 10/04/2017 11 Target Audience Ratings Points (TARP) 31 TARP = Number of PPL in a target audience reached by a media buy Potential target audience for media buy x 100 TARP: “The number of persons in the primary target audience that the media buy will reach – and the number of times ” (p. 625). Unlike GRP, a TARP figure does not include waste coverage (i.e. people outside of the target market/audience). We will look at TARPs in a little more detail in next week’s lecture. Gross Ratings Points (GRP) 32 GRP = Reach x Frequency GRP: “A measure that represents the total delivery or weight of a media schedule during a specified period of time. GRPs are calculated by multiplying the reach of the media schedule by the average frequency” (p. 613) GRPs do not measure actual reach → marketers need to ask themselves how many GRPs are needed to obtain a specific level of reach. We will discuss this in a moment. Using Gross Ratings Points (GRPs) 33 Example: How many GRPs must be purchased to attain an unduplicated reach of 50%? What frequency of exposures would be needed? Step 1. Know what the ratings points represent in the given situation. e.g. 100 GRPs = 100% of market exposed once to the ad OR 50% of the market exposed twice OR 25% exposed 4 times….. The next slide shows a graph that can help marketers know how many members to an intended audience will be reached by the schedule. 10/04/2017 12 Estimates of Reach 34 e.g. The purchase of 100 TARPs on a single network will deliver about 32% reach. Compare this to a similar purchase on three networks (44.5%). Step 2. Compute estimate of frequency of exposure by plugging our known numbers into our formula: GRP = Reach x Frequency. 100 = 44.5 x ?? Est. frequency of exposure = 100/44.5 = 2.247 Determining Effective Reach 35 Effective Reach: A measure of the % of a media vehicle’s audience reached at each effective frequency increment” (p. 610). Given budgetary concerns, marketers need to decide whether to  increase ‘reach’ at the expense of ‘frequency’  increase ‘frequency’ at the expense of ‘reach’ Many factors can influence this decision process. e.g. a new product campaign may want to maximise reach so as to create awareness among as many people as possible in a very short period of time. e.g. a high involvement and complex product may require frequency to be maximised. Effective vs. Average Frequency 36 By comparing effective frequency with average frequency, planners are able to fine tune campaigns. Effective frequency The desired level of frequency (media objective). Average frequency Observed frequency for an actual or planned campaign 10/04/2017 13 Effective Reach 37 Effects of Reach and Frequency 38 Marketing Factors Determining Frequency 39 Target Group Brand History Share of Voice Purchase Cycles Brand Loyalty Brand Share Usage Cycle Marketing Factors 10/04/2017 14 Message Factors Determining Frequency 40 Message Complexity Message Uniqueness New vs. Continuing Campaigns Image vs. Product Sell Message Variation Wearout Advertising Units Message or Creative Factors Media Factors Determining Frequency 41 Clutter Number of media used Repeat exposures Editorial environment Scheduling Attentiveness Media Factors Creative Aspects and Mood 42 Creative opportunities Budget Mood Flexibility Media environment Creative aspects & mood 10/04/2017 15 Ad Break – The use of mood and creativity to increase awareness and attention → Decrease frequency of media placements → Decrease budgetary costs http://commercial-archive.com/commercials/toyota-corolla-badgers2008-60-usa http://commercial-archive.com/commercials/yellow-pages-burgled1999-060-uk This next ad has received complaints. Stihl Ad What are your thoughts? http://commercial-archive.com/commercials/stihl-deathbed-chainsaw2009-30-new-zealand 43 Flexibility in Media Planning Strategies Market opportunities – Sometimes a market opportunity arises that the advertiser wishes to take advantage of. Market threats – Internal/external factors may pose a threat to the firm, and a change in media strategy is dictated. Availability of media – Sometimes a desired medium (or vehicle) is not available to the marketer. Changes in media or in media vehicles – A change in the medium or in a particular vehicle may require a change in the media strategy. Example: A new hit TV program can significantly affect the TARPs, and by implication the GRPs, for an existing or proposed campaign. In such cases, media buyers may need to shift spots away from lower rating programs in order to achieve the campaign objectives. 44 BUDGET CONSIDERATIONS Determining Relative Cost of Media-Print 45 Cost per thousand (CPM): “A computation used in evaluating the relative cost of various media vehicles that represents the cost of exposing 1000 members to a target audience to an advertising message” (p. 608). CPM= Cost of ad space (absolute cost) Circulation 10/04/2017 16 All things being equal, which is the most cost-effective buy? TIME THE BULLETIN Per-page cost $13,600 x 1000 $12,300 x 1000 Circulation 72,136 57,039 CPM calculation 13,600 x 1000 12,300 x 1000 72,136 57,039 CPM $188.50 $215.60 Homework Slide: Computing CPM Cost per Target Audience Rating Point (C/TARP) 47 Cost per TARP = Cost of commercial time Program rating Cost per TARP (C/TARP): “A computation used by media buyers to compare the cost efficiency of broadcast programs by the audience rating” (p. 608). All things being equal, which is the most cost-effective buy? Remember, CPTARP is the cost of reaching 1% of a given target audience. CSI (TV program) Survivor (TV program) Cost per spot ad $10,000 $7,500 Rating 18 17 Reach (households) 197,100 186,150 Calculation $10,000 / 18 $7500 / 17 CPTARP $555 $441 Homework Slide: computing CPTARP 10/04/2017 17 Calculating CPM based on the Target Audience 49 Evaluation and Follow-Up 50 Use again, or analyse flaws How well did these strategies achieve the media objectives? How well did the media plan contribute to attaining the overall marketing and communications objectives? Homework Slide: Test Your Knowledge 51 In calculating both the brand development index (BDI) and the category development index (CDI), a media planner obtains the following results: Low BDI and High CDI. What do these results imply? A) High market share; good market potential B) Low market share; good market potential C) High market share; monitor for sales decline D) Low market share; poor market potential 10/04/2017 18 Case of the Week – IMC in Action Douwe Egberts OMD Case Study Sit back and watch this case study and then we will discuss it . Douwe Egberts OMD Case Study (3min 24 sec) http://www.youtube.com/watch?v=63FzDTJy8vE&feature=pl ayer_embedded# 52 Case of the Week – IMC in Action Douwe Egberts ‘Discoverers’ media campaign Background: A surging coffee market in the UK with lots of new brands entering the market with significant advertising budgets. The main attraction to these new brands was the aspirational lifestyle they projected. Problem: Struggling sales for Douwe Egberts. 53 Case of the Week – IMC in Action Market research: Identification of a market segment identified as “Discoverers”. Profile: ‘Discoverers’ have a passion for food and drink and are increasingly interested in product and brand back-stories; stories around origins; provenance; people and how products are made. Gap: ‘Discoverers’ know a lot about products in other food and drink categories but not a lot about coffee. Competitive Advantage: Douwe Egberts has the heritage and expertise to tell these stories. Strategy: Telling Discoverers the coffee stories that they craved. 54 10/04/2017 19 Case of the Week – IMC in Action Big Idea: a coffee documentary series which ran in the media that attracts ‘Discoverers’ where they find the stories for themselves. Strategy: To create three beautifully shot films telling the stories of coffee from the legend of its discovery, to its rise through European culture, to its role in trade and banking, to how it is cultivated and produced today. Tactics: The films appeared on online portals and were seeded through influential food and drink bloggers. 55 Case Study Questions (Q1) What other media could Douwe Egberts use? (Q2) How frequently do you think these ads would need to be viewed in order for consumers to recall the brand name and to appreciate the benefits of this brand of coffee? 56 56 Summary and Conclusion Media planning is a process involving many layers of complex decisions. At its heart, media strategy attempts to find the best match of media, having regard to the target market and given budgetary constraints. Media planners attempt to balance reach and frequency objectives while also giving consideration to creativity and other relevant non-quantifiable factors. 57