Advertising

by:-Smit Saini

Marketing Communications

• Messages and related media used to communicate with a market.

• Advertising• Branding • Direct Marketing• Graphic Design • Packaging• Promotions• Publicity• Sponsorship• Public Relations

Two Types of Communications

Marketing Communication

Demand Generation

Positioning Promotions Information

Brand Image / Corporate Image

ProductServices

Corporate Communication

Image Building Public Opinion Company

Marketing Communication

Demand Generation

Positioning Promotions Information

Contact Points

Contact Points and Marketing Communications

Integrated Marketing

According to American Association; “Planning process designed to assure that all brand contacts received by a customer or a prospect for a product or service, are relevant to that person and consistent over time.”

There have been many shifts in the advertising and media industry that have caused IMC to develop into a primary strategy for most advertisers.

Main shifts• From media advertising to multiple forms of communication (including promotions, product placements, mailers...)

• From mass media to more specialized media, • From a manufacturer-dominated market to a retailer-dominated market. BARGAINING POWER

• From general-focus advertising to data-based marketing.

• From low accountability to greater accountability of agencies • From traditional compensation to performance-based compensation.

• From limited Internet access to widespread Internet availability. Communication Planning

Communication planning 3 W & 1 H

Is the art and science of reaching target audiences using marketing communication channels.

It is concerned with deciding

Whom to target,

When,

With what message

How

Frequency Plan Includes

Communication Plan Includes:

Target audiences

Key messages

A budget

A calendar for message release

BTL, ATL, TTL

Marketing Communication

Above the Line CommunicationATL

Below the Line CommunicationBTL

Through the Line CommunicationTTL

BTL uses less conventional methods than the usual specific channels of advertising to promote products, services, etc.

These may include activities such as direct mail, public relations and sales promotions.

It is more effectively used to increase sales.

When the targetn group is small and specific

ATL is a type of advertising through mass media such as TV, cinema, radio, print, banners and search engines.

Increase brand awareness.

Useful when larger target audience is to be addressed

TTL refers to an advertising strategy involving both above and below the line communications in which one form of advertising points the target to another form of advertising thereby crossing the 'line'.

Advertising

Paid form of non personal communication about an

organization or its products that is transmitted to a target

audience through a mass/broadcast medium.

While advertising is the event, Advertising Management is the whole process - a function of marketing.

Starting from market research continuing through advertising leading to actual sales or achievement of objective.

Pros • Flexibility allows you to focus on a small, precisely defined segment (School newspapers) or a mass market

• Cost efficient -reach a large number at a low cost per person, allows the message to be repeated, and can improve public image.

• Allows for repeating the message-lets the buyer receive and compare the messages of various competitors.

• Very expressive, allows for dramatization.

• Used to build a long term image of a product.

• Trigger quick sales, sears advertising a weekend sale.

Cons

• Absolute outlay cost very high, make a national TV ad. approx Rs.150,000, local ad. Rs.60,000. 30 second spot,

• Rarely provides quick feedback, or necessarily any feedback

• Less persuasive than personal selling

• Audience does not have to pay attention

• Indirect feedback (without interactivity)

Scope and Importance of Advertising

Advertisements are important for:

• standardized products

• products aimed at large markets

• products that have easily communicated features

• products low in price

• products sold through independent channel members and/or are new.

• Intense Competition

• Introducing new Product

Objectives

- Information Advertising - New product or new uses

- To build primary demand - Explanations or descriptions

- Builds image - Persuasive Ad

- Fight competition - Build demand for your brand

- Buy now - Compare to competition

-Reminder Ads - Mature products

- Keep product on consumers minds

DAGMAR

Models of Communication

Effective Communication program involves understanding the response process

Communication models aim at explaining the possible sequence through which advertising may eventually Affect the buyers

Operational

Model

AIDA Hierarchy of Effects

Innovation Adoption

InformationProcessing

Cognitive Attention Awareness

Knowledge

Awareness

PresentationAttentionComprehensive

Affective Interest

Desire

LikingPreferenceConviction

Interest

Evaluation

Yielding

Retention

Conative Action Purchase Trial

Behaviour

Behaviour

Classification …….

Classification of Advertising

(1) by geographical spread

(2) by target group

(3) by type of objective

National Advertising:

Some ‘manufacturers may’ think that their target is, the entire country.

‘They select media with’ a countryside base. Generally large, established firms belongto this category.

Hindustan Unilever, Brooke Bond, Larsen & Toubro, Escorts, Pepsi, Coke

Local Advertising:

Small firms may like to restrict their business to State or regional level.

Some firms first localize their marketing efforts and once success has been achieved, they spread out to wider horizons.

Classifieds in Local Dailies, Small companies, Dealers

Target Group:

It is on the basis of target groups aimed at it can further be divided into sub category as:

a. Consumer Advertising

b. Industrial Advertising

c. Trade Advertising: Advertisements, which are directed by the manufacturers to the distribution channel members, such as wholesalers or retailers.

d. Professional Adverting: There are certain products forwhich the consumers themselves are not responsible for the buying choice.

Objective:

Product Advertising: promoting sale of a product or brand

1.Informative

2.Persuasive

3.Reminder

Existing Customers

Those Buying Other Brands

Exclusively

Those Not buying Product

Class

Focus is on increasing the size of existing customer base

Increasing share of requirements

Customers have more than one preferred brand.

DiscountsPromotions

Habits

Choosing on the basis of

Availability

Public Service Advertising (PSA's): sponsoring a charity event,

PSA's are a way to promote company in a positive light.

Advocacy: Concerned with propagating an idea.

Another form of Public Service Advertising,

Company states the reasons for certain negative issues Emerged.

Corporate Image Building: Aditya Birla Group, TATA, BHEL, Hindustan Unilever

Brand Personality Association: brands developed in terms Of human characteristics.

all the tangible and intangible traits of a brand,

beliefs, values, prejudices, features, interests,

Case Discussion

The Following Data have been collected in 5 samples

Measure CASE I

CASE II

CASE III

CASEIV

CASEV

Brand Awareness

30% 80% 80% 80% 80%

Favorable Attitude

25 25 45 45 10

Purchased Brand Once

Repeat Purchases

23

20

23

20

23

20

35

30

35

8

Segmentation and Positioning through Advertising

Segmentation Strategy involves :

Development and pursuit of marketing programs directed towards subgroups of population that an Organisation can serve potentially

An Advertising program can be created to appeal certain types of buyers

In implementing segmented advertising more detailed Breakdown of the market is required

An organisation focuses on style conscious upper class

Selects retail outlets and product lines that will attract members of this group.

It may be useful to further divide this segmenton the basis of age.

Segmentation strategies…

Segmentation Strategies

Concentration Strategy

Focus is on one subgroup and direct marketing plans towards it

Differentiation Strategy

Two or more subgroups are focused and marketing plansare developed

Developing segmentation strategy

The objective is to identify a group of consumersThat;

Are not being served well presently by competitors And may try the product; Priori Base

The basis on which the market might be segmented is Determined before any data is analysed from the market place

Are large enough or growing in size; Priori Base

Bases for priori segmentation….

Bases for priori segmentation

Age Gender Income

Geographical Location Usage

Consumers may seek different benefits from the sameproduct

Depending on the nature of the usage occasion

Brand Loyalty as priori segmentation

Empirical Segmentation Approach

Consumers differ in the need for which they buy a product

Buyers tend to place different degrees of importance on the benefits

Segmentation Strategies based on Attitudes and Benefits

1.Benefit Segmentation

2.Sociable Segmentation

3.Independent Segmentation

Lifestyle or psychographic

Lifestyle or Psychographics as bases for segmentation

A person’s pattern of interests, opinions and activitiesCombine to represent his or her lifestyle

It includes exploring information concerning attitudesand personality traits.

Defining a segment empirically is called psychographics

Lifestyle segmentation is useful in categories where User’s self image is important

Reaching Target Segment

Reaching Target Segment

Controlled Coverage

Objective is to reach desired segment and to avoid Reaching those who are not in the target segments

Customer Self Selection

Advertising program is directed to mass audience of which target segment may be only a part.

Positioning Strategies

Positioning Strategies

Positioning involves a decision to stress only certain Aspects of our brand and not others.

Key idea is that the consumers must have a clear idea of what the brand stands for.

Positioning is achieved mostly through a brand’s Marketing communications.

Strategic objective must be to have segmentation and positioning strategies that fit together.

Brand Positioning is the set of associations the consumer has with the brand, in terms of

Physical Attributes

Lifestyle

Use of occasion

Approaches to positioning strategies

1.Using Product characteristics or customer benefits

2.Price-Quality

3.Use or Application

4.Product-User

5.Product Class

6.Cultural Symbol

7.Competitor Approach

Determining the positioning strategy

Determining the positioning strategy

Identify the competitors

Determine how the competitors are perceived and evaluated

Determine the competitor’s positions

Analyse the customers

Select the position

Monitor the position

Identifying competitors

Identifying competitors

Pepsi May define its competitors as;

Other cola drinks

Non-diet soft drinks

All soft drinks

Non alcoholic beverages

All beverages except water

Message Strategy

Advertising Manager needs to make decisions aboutThe content of the advertising message, called as

Message Strategy

Message focus should be on communicating

Product Benefits

Developing / Reinforcing Brand Image

Evoking and associating specific feelings and emotions

Making the brand appear fashionable by creating socialand group influences.

The challenge is to identify which attributes are considered in making the brand-choice decision

Which of them are most important in the targetedproduct-market situation.

Success of a positioning strategy is reflected in link between benefits or images and an overall attitude in themind of customers

Attitude

Attitude is associated with the notion of liking or disliking

Attitude is not directly observable and have to be identified from what people say about and what they do

Attitude is a central concept in the field of social psychology

Attitude Structure is made up of three closely Interrelated components

Cognitive

Awareness, comprehension, knowledge

Affective

Evaluation, Liking Preferences

Conative

Action Tendencies like trial, or purchase

We buy something because we like it, and we like it Because we cognitively evaluate its benefits

Types of actions people take

People develop overall attitudinal liking for a product without cognitively evaluating them.

Such Attitudes are purely based on emotions and feelings rather than some rational evaluation

LOW INVOLVEMENT SITUATIONS

Vice Versa for High Involvement Situations

Making the Positioning Decision

1. Economic Analysis

Market Segment Size

Penetration Probability

“Penetration Probability must indicate “

Competitive Weakness to attack

Competitive advantage to exploit

2. Segmentation Commitment

An overt decision is made to ignore parts of theMarket.

Give Meaningful position through undifferentiation

Deliberately generating a diffuse image

Meaning different things to different people

Positioning through differentiation

VS.

3. If advertising is working, stick with it

Brand personality or image is developed over manyyears

Consistency is desirous over change in personality year after year

4. Don’t try to be something which brand is not

5. Consider Symbol

Message Strategy through Attention and Comprehension

Getting increasingly difficult to gain attention

There are two important prerequisites

Individual must be exposed to message and pay attention

Those who pay attention must interpret / comprehend as intended

Each of the stages discussed as

Attention Comprehension

Go through a perceptual barrier

Attention InterpretationStimulus Cognition

Perception Process

Active Search

Passive Search

Passive Attention

Simplify

Distort

Organize

Stimulus Conditions Audience Conditions

Intensity

Size

Message

Position

Context

Information Needs

Attitudes

Values

Interests

Confidence

Attention can be viewed as information filter

It is an screening mechanism that controls the quantity and nature of information any individual receives

Amid advertising noise it is not easy to create an Advertisement that gets noticed, processed and Evaluated.

Effectiveness of advertising is reduced;

Higher Level of Clutter

Proximity of advertisements from competing brands

Television advertisers have to cope with much noise in the form of;

Clutter

Zipping Zapping

Zapping: Switching programs during commercial breaks

Zipping: Fast-forwarding through advertisements when Viewing pre-recorded programs.

Clutter: Too many advertisements in related as wellas unrelated product categories.

Combating clutter, zapping and zipping

Combating Clutter, Zapping and Zipping

Clutter

Higher levels of clutter hurt the performance of Individual advertisements

Effects of increased clutter do not affect all advertisements

Ads placed either at beginning or end are less affected

High involvement advertisements are less affected

Print Media: three dimensional pop-ups, freebies,etc.

Zapping

A viewer can turn off the sound or change channel

It is higher in households with Cable TV and with Multiple people at home

Consumers are forced to pay more attention to ads they Are zapping than those that are not.

One can make commercials that are interesting, Entertaining or pleasurable

Consumers are forced to pay more attention to ads they Are zapping than those that are not.

Executional elements are equally important

Zipping

Zipping rates are lowest for first commercial in The first slot and highest for last ones.

Far more difficult to fight zipping than zapping

Combat zipping by developing commercials that use visual Elements like; logos or still shots

These will be visible even if viewers are fast-forwarding

Creating Advertisements that attract

The attention filter operates at various levels of Efforts and consciousness.

Information is an important stimulus for paying attention

There are 4 motives for attending to informative stimuli

Information of Practical Value

Information that Supports

Information that Stimulates

Information that Interests

Practical Value

Successful headline format “How to……..” in context Of the problem that the consumer is trying to solve

1. Information need depends upon the nature of product

Products that are costly, complex or unknown

Robert Burnkrant applies general theory of motivation to process information; based on 3 factors

2. Expectancy (probability) that processing a particular ad will lead to relevant information exposure

3. Value of the source of relevant information / goodness or badness of the message

This structure provides an approach to determine the extent to which a person might be motivated to process information

Information that Supports

People have psychological preference for supportive information

They tend to avoid non-supportive or discrepant information

Dissonance Theory predicts that cognitive dissonance, the existence of conflicting cognitive elements is discomforting and that people will try to reduce it.

Information that Stimulates

Based on Salvatore Maddi’s Variety Theory; novelty, unexpectedness, change, and complexity are pursued Because they are inherently satisfying.

Assumption is; people get bored and are motivated toreduce the boredom by seeking stimuli that are unusual or different.

Complexities Theory

Adaptation-Level Theory suggests; not only focalStimuli determines perception but also the contextual (background) and residual (past experience)

Advertisements that are sufficiently different from anaudience’s adaptation level and expectations will attractattention.

Suggested to use ad elements that are moderately inconsistent rather than very consistent or extremely inconsistent.

Information that interests

People tend to notice information that is interesting toThem.

They are interested in subjects with which they are involved

Approach could be to run an advertisement about thePerson or the persons to whom it is directed.

OR

To present a communication involving topicalissues in which audience is likely to be heavily involved

Advertising Appeal

An Advertisement should contain an appeal forcreating human interest so that it catches attention.

Human needs are the basis for appeals

There are two issues that are important for an advertiserRegarding needs:

The number and nature of basic needs

Intensity of motivated behaviour

Unsatisfied needs are motivators

Much of the human behaviour is motivated by sub conscious and unconscious needs

Several needs operate simultaneously to cause a givenbehaviour

We may spend a great deal of time and efforts to Satisfy some of motives or vice – versa.

People differ significantly in the efforts they put forth To achieve what appears to be the same motive.

Intensity of Motivating Behaviour invokes the concept of central and peripheral needs.

Central Needs: are closely related to our sense of Survival and identity.

Peripheral Needs: are instrumental needs or wants,consisting of preferences one has for alternative means of satisfying central needs

Associating Feelings with the Brand

Previously we talked about logical processing of information and rational thinking processCreating feelings that can ultimately influence attitudes or beliefs is also important consideration.For example: Pepsi (youngistan commercial), Thumsup (adventure commercials) evoking feeling of energy, thrill ……….

Feelings created get associated with the brand and thereby affect brand attitudes.

Buying Motives

Different kinds of motives encourage an individual toGive attention to certain advertisements and purchase Certain products. Achievement: need to perform difficult tasks

Independence: need to be autonomous, have options,be different

Exhibition / Recognition: need to gain public attention,show off or to be held up as exemplary

Affiliation: need for close association withothers

Advertising Appeal

Rational Appeals: ads based on functional benefits

Emotional Appeals: are designed to stir up certainpositive (happiness) or negative emotions (fear, anxiety)

Moral Appeals: instilling sense of right and wrong. often used in messages to arouse a favourable response

Product Oriented Consumer Oriented

Feeling Advertising is execution focused opposed to message focused.

Such advertisements develop:

EMTIONAL BONDING

BRAND IMAGERY

BRAND PERSONALITY

Feelings are more important in low involvement situations

Advertisements evoke feelings for products that are likely to be needed when consumers have a low level of intrinsic interest in the product category orbrand.

This is most likely to happen in the mature stages of product life cycle.

When a product is new and product interest is high consumers may seek more information.

It is suggested to have feeling oriented advertisements For products in mature stage and informative advertisements in introduction stage in PLC

FCB and Rossiter and Percy Grid

Defines different product categories and motives forwhich consumers purchase a product

How advertisements can be designed to address each buying motive.

Product categories can be classified into four categories Based on

High Or Low Involvement

Thinking Products or Feeling Products

Motives can be

Informational or Transformational

Thinking Products could be purchased for several informational motives

That have to do with the consumer’s desire to reduce negative feelings

A product might be purchased for;

Remove a problem

Problem avoidance

Dissatisfaction with a priorpurchase

Feelings Products can be purchased for various Transformational motives.

That have to do with increasing certain positive feelings

A product might be purchased for;

Sensory Gratification

Sense of achievement

Social Approval Needs

Transformational Advertising

Way in which feeling-oriented advertising succeeds inAssociating feelings with brands.

Such advertising involves developing associations with the Brand or the brand use.

So that the experience of using the brand is transformed Into something related to feelings.

Rossiter Percy Grid

Informational Transformational

Low Involvement

High Involvement

Negative Motivation Positive Motivation

Trial ExperienceIs sufficient

Search and ConvictionIs required priorTo purchase

Create a feeling of lifestyle identification

Supportive information Thrown in

High Repetition needed

Convincing and logical brand claims

Refutational or Comparative formats

Unique and authentic emotional benefits

Frequently repeated likeable ad

Drama Format

Focus on one or two key benefits

Use simple problem- solution format

Requirements for successful Transformational Advertising

Adequate Budget: heavy repetition to build Association is required

Consistency: thrust of advertisements can not be allowedTo change frequently.

Close Connect the brand with the advertising: connectingUse experience to the brand.

An advertisement attempting to generate anemotional response should be believable and engender empathy

There are countless numbers of feelings and combinations of feelings that could potentially be precipitated by advertising.

Equity Building Advertising

• Brands have equity because they have:

•High Reputation for Perceived Quality

•Brand Awareness

•Positive Brand Association

• Consumers prefer high-equity brands because:

• they find it easier to interpret what benefits the brand offers.

•Feel more confident about it•Get more satisfaction by using it

Brand can charge a higher price.

Command more Loyalty

Run more efficient marketing programs

Brand Image

Attributes + Consequences + Brand Personality

A brand could acquire a personality profile throughAdvertising-created association.

Feelings can be associated through advertisements.security, calmness, excitement, happiness etc.

Why are Brand Personality Associations Important

Importance to Marketers:

Differentiate from competition

Intense Competition in the same product category

Near Parity in terms of attributes, quality, price etc.

Only difference between brands is often the personalityassociated with them

Brand Personality Association enables the organisation to gain market share or charge premiumprice.

While competitors can match product features, price, promotions etc.

They can not duplicate the brand personality; it is done it May lead to advertising for the original brand.

Long term advantages:

Increase the asset value

Brand Acquires higher sale price

Access to better distribution network

Better shelf space

High consumer awareness and loyalty

Increased repurchases

Economies in terms of marketing expenses and launchingnew brands, categories or extensions

Importance to Consumers

Self Definition and Symbolic Association

Consumers regard their possessions as part of themselves

Brands encapsulate social meanings (intelligence,sophistication)

Consumers select those brands that have a brand Personality, which is congruent with their own self- concept

When are Brand Personality Associations More Important ?

Self rationale would be stronger in some productCategories than in others.

High Involvement products vs. Low Involvement Products

It matters more when a product is socially visible

Relatively scarce product categories

Certain individuals are also susceptible to brand personalitysymbolisms

People who are more conscious about there public appearance

Implementing Brand Personality Association

1.Researching the symbolic associations that currently exist with the product category and

competitive brands.

A. Photo Sorts: Consumers are given photographs of Individuals and asked to pick those, which they think use particular brand.

Then they are asked to describe the individual

B. Sentence Completion: Ladies like Sunsilk Shampoo because …………………

2. Deciding which brand personality is going to be of greatest value with the target consumer segment.

3. Executing the desired brand personality strategy

Every element of marketing and communication mix Plays an important role: packaging, pricing, sales promotions, distribution etc.

Key advertising elements that contribute to a brand’s personality are:

Endorser: Personality of the endorser gets transferredTo the brand

Use Imagery: Kind of brand user portrayed in the ad .

Executional Elements: music, visual direction, colour Schemes, typography

Symbols: Nike’, Air Deccan

Consistency:

Creative Approach

Comparative Advertising:

Two or more named or recognizable brands of the same Product class are compared and the comparison is made is Made in terms of one or more attributes.

The comparisons can be:

Implicit (Brands implied but not Named) or Explicit(Brand Names)

Verbal or Visual

Claims can be of complete superiority

Superiority on some attributes or of parity.

Inoculative (immunizing) Advertising:

Companies try to resist attempts by competitors or outside Influences to change his or her attitudes.

Companies are involving with defensive marketing.

Refutational (denial) and Supportive Advertising:

Emotional Creative Approaches

Using an Endorser

Benefits of using Endorsers:

1. Enhance advertisement readership / viewership / listenership.

2. Induce Positive attitude change towards the brand/ company.

3. Personality characteristics of the endorser can get associated with brand personality.

Selecting an Endorser

A Celebrity: has the publicity of and attention getting Power.

Large segments of the audience instantly recognize andidentify with the with the famous person.

Goodwill can be transferred to the brand.

Celebrities cost a lot and hard to get.

If they are used for other products they may loose credibility

They may be overexposed

An Expert

Best choice when product is technical or consumers needReassurance that the product is right choice and safe to Use.

A satisfied customer

To maximize the naturalness of the situation.

Best choice when it is anticipated that there will be strongaudience identification with the role involved.

Creative Process

1.Fact finding : Information search, advertising objectives

a.Problem Definition: Picking out and pointing the problem

b. Preparation:

2. Idea Finding:

a. Idea Production: tentative ideas

b. Idea Development:

Copywriting

Some Important guidelines:

Cash in on personal experience

Write with heart

Learn from experience of others

Talk with the manufacturers or service providers

Study the product

Review previous advertisements of the product and that ofthe competitors’

Copy is more effective if:

it is simple and clear touching only one or two ideas.

It is extendible

Flows smoothly from beginning to end.

For Print media copy:

Key element is headline, it must flag down the target reader and pull him into body copy.

Offer reward for reading on

Headline should appeal to reader’s interest, offer new twists,

evoke curiosity

Headlines and visuals should complement each other

Body copy should be detailed and specific, supportThe headline, readable and interesting.

For Television Copy:

Right mix of visuals or sounds.

Frequent use of visual repetition of brand name, packageAnd key product attributes.

All elements should be well connected and linked to each other

For Radio Copy:

Write copy that creates a picture in the mind of the Listeners.

Elements used are, sound effects, human voice, humour Or music. Should be well utilised

Short words and short sentences are more effective.

For Outdoor Copy:

Message should be communicated in few seconds.

Should be extremely short, simple, strong and distinctive

Layouts

Involves bringing all the pieces together

Important factors to consider:

Balance: Pleasing distribution

Contrast: different sizes, shapes and densities, colours to enhance attention value and readability.

Gaze motion: logical sequence

Unity

Media

• The vehicles that carry the ads to the target market.

• Which is most important? Picking the correct media or having great creative?

• What are the types of media?

MagazinesMagazines

Internet Internet

Radio Radio

TelevisionTelevision World Wide WebWorld Wide Web

WirelessWireless

Outdoor Outdoor

NewspapersNewspapers

Consumer’s View of Media

Advertising

Media Overview

• Advertisers are placing more emphasis than ever on media planning

• Choosing media & vehicles is the most complicated of all marketing communications decisions

• Aside from specific vehicles in media, the planner has to choose geographical locations and budget distribution over time

Key Media Terms

Media plan: document that establishes how media will be used to disseminate an advertiser’s message, including objectives and strategy.

Media objective: statement in media plan that explains the goals of the plan; usually states how many of the target will be exposed to advertising messages in a given

time period, and how often.

Media strategy: statement in media plan that outlines how objectives will be accomplished; shows where and when advertising messages will appear, and at what cost.

Media Planning

Media Planning = Selection + Scheduling

Factors Influencing Media Planning Decisions

Target Market Profile Looking at Brand/Product Dynamics The Creative Execution Budget Considerations and Media Deals The Competitive Situation Availability and Timing Considerations

The Media-Planning Process

Involves the process of designing ascheduling plan that shows howadvertising time and space will

contribute to the achievement ofmarketing objectives

The Media-Planning Process

media planning involves coordinationof three levels of strategyformulations:

• Marketing Strategy

• Advertising Strategy

• Media Strategy

Overview for the Media Planning Process

Advertising Strategy

Advertising

Objectives

AdvertisingBudget

MessageStrategy

MediaStrategy

Media Strategy

• Audience Selection• Objective Specification• Media and Vehicle• Media Buying

Marketing Strategy

The Media-Planning Process

Marketing Strategy:

Provides impetus and direction for choice of both advertising and media strategies

Advertising Strategy:

Involves advertising budgets, objectives and message and media strategies – extends from overall marketing

strategy

4. Buying media

The Media-Planning Process

1. Selecting the target audience

2. Specifying media objectives

3. Selecting media categories and

vehicles

Selecting the Target Audience

Four major factors

(1) Buying Behaviour

(4) Lifestyle/psychographics

(2) Geographic

(3) Demographic

Specifying Media Objectives

1. What proportion of the population should be reached with advertising message during specified period (reach)

2. How frequently should audience be exposed to message during this period (frequency)

3. How much total advertising is needed to accomplish reach and frequency objectives (weight)

Specifying Media Objectives

4. How should the advertising budget be allocated over time (continuity)

5. How close to the time of purchase should the target audience be exposed to the advertising message (recency)

6. What is the most economically justifiable way to accomplish objectives (cost)

ReachPercentage of target audience that is

exposed toan advertisement.

At least once, during a certain time frame (usually four weeks)

• Reach represents the percentage of target customers who have an opportunity to see the advertisers message.

Factors Determining the Reach

• More people are reached when a media schedule uses multiple media

• The number and diversity of media vehicles used

• By diversifying the day parts

FrequencyAverage number of times anadvertisement reaches the target audiencein a four-week period

Media Scheduling

Reach(% of target audience with opportunity for exposure

to media vehicle(s) or media plan in a given time frame)

+Frequency

(average number of times target is likely to be exposed to the ad in a given time frame)

100%

The Difference between Reach and Frequency

Evaluating the Media: Key Terms

Rating point: the % of a given population group that uses a specified media vehicle.

Share: Households/persons using television % of homes or people watching TV at a given time.

Audience: number or % of homes or persons using a media vehicle.

Coverage: Same as reach – the % of homes or persons receiving broadcast signal within specified area, or receiving specific magazine or newspaper.

Circulation: Total number of copies of a publication sold through various forms of distribution.

Readers per copy: average number of people who read each issue of publication.

Market Factors/Frequency Levels

• Brand HistoryBrand History NewNew High High• Brand ShareBrand Share HighHigh Low Low• Brand LoyaltyBrand Loyalty HighHigh Low Low• Purchase CyclePurchase CycleShort Short High High• Usage CycleUsage Cycle ShortShort High High• Share of VoiceShare of Voice HighHigh High High

Market Factor TypeMarket Factor Type Frequency Frequency