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Media Planning & Buying in the 21st Century
CHAPTER 11
Geographic Considerations
Media Planning & Buying in the 21st Century
GEOGRAPHIC MARKETING PHILOSOPHIESGEOGRAPHIC MARKET DEFINITIONS
MARKET ANALYSISNATIONAL VS. LOCAL MEDIA
Agenda
Media Planning & Buying in the 21st Century
Is the U.S. one homogeneous marketor many markets?
How Local Markets Differ from Each Other
Category SalesBrand SalesConsumersTrade SituationMedia Effi-cienciesSize of MarketGrowth RateDemographicsLifestyleCompetition
Media Planning & Buying in the 21st Century
Geographic Marketing Philosophies
Global Desire to have the same brand identity everywhere Same strategy is executed in every market
Market by Market Brand definition should reflect differences in markets Different strategies are executed in every market
Think Global, Act Local A blending of philosophies Have overall strategy Make adjustments in strategy and execution as market
dictates
Geographic Emphasis of Media Plans
Geographic Coverage Area - Before a media plan can be developed, the geography of the plan must be defined in accordance with the brand’s marketing situation, budget realities, and media coverage patterns.May be any mix of any of the following:
- National- Regional- Local markets (Designated Market Areas – DMAs)- MSAs/Metropolitan Areas- Counties- Zip codes
Geographic Market Definitions
Media Planning & Buying in the 21st Century
National = Total U.S.
Regional – Based on Census or Sales
Designated Market Area (DMA) – 210 TV viewing areas in US
Metro Survey Area (MSA) – Metro area within DMA
Retail Trading Area - Area within MSA containing majority of retailers’ customers
Media Planning & Buying in the 21st Century
Designated Market Area
What is a DMA? A geographic area consisting of counties who do the majority
of their viewing to home market TV stations, e.g.,
Oakland County Michigan resides in the Detroit DMA Maricopa County is in the Phoenix DMA
Every county in the US is assigned to a DMA (210 total DMAs)
DMAs typically contain 1-2 metropolitan areas
All viewing to home market stations by people within the DMA and in adjacent DMAs counts as part of station’s total audience
Consumer products companies usually tabulate their business data by DMA
Media Planning & Buying in the 21st Century
Total Survey Area (TSA)
Total Survey Area (TSA) Includes counties outside of a DMA which still watch
some television from the first DMA’s stations
For example, while Flint, MI is a DMA, some of their television viewing is to Detroit television stations
TSAs are important to advertisers interested in total audience within and outside the DMA
TSAs represent wasted audience to adverters only interested in audience within the
The buyer has to decide whether to count audience only from the DMA or total viewing from the TSA
Media Planning & Buying in the 21st Century
Phoenix DMA
DMAMETRO
TSA
Media Planning & Buying in the 21st Century
Retail Trading Area (RTA)
Typical Trading Area
50-80 % Sales
15-20% Sales
Balance
Media Planning & Buying in the 21st Century
Market Analysis
Size of marketBrand sales & shareCompetitor sales & sharesConsumer profile of marketCompetitive activityCategory Development
IndexBrand Development indexMedia EfficiencyDistributionTrade relationships
Setting Geographic Priorities
What’s the basic marketing strategy?
“Fish where the fish are”
(Support current
business)
“Fish where the fish aren’t”
(Market Development
)
Media Planning & Buying in the 21st Century
Brand Development Index
% Brand Sales in Market
% Total U.S. Population in Market x 100
BDI =
Media Planning & Buying in the 21st Century
Category Development Index
% U.S. Product Category Sales in Market
% Total U.S. Population in Marketx 100
CDI =
Media Planning & Buying in the 21st Century
CDI/BDI Calculation
Market % US HH % Category CDI % Brand BDI
A 5.0 10.0 200 2.5 50
B 1.0 1.0 100 1.5 150 C .5 .3 60 .6 120
Media Planning & Buying in the 21st Century
Comparison of Cost Efficiencies
Network Television
Spot Television
Network Radio
Spot Radio
$22,500
$27,000
$9,000
$22,000
Note: spot estimates based on covering 100% of U.S.
CPP
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