Wesleyan University Philippines Maria 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. BUENAVENTURA PROFESSOR WESLEYAN UNIVERSITY- PHILLIPINES MARIA AURORA, AURORA

PRESENTED BY: LAARNI CATIPON APRIL HABALA LORRAINE GOSE HYCHELLE JOY CHAN

Wesleyan University Philippines Maria 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

Wesleyan University Philippines Maria 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 advertisers 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.

Wesleyan University Philippines Maria 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 As a result their decisions are based on limited or out-of-date data that were provided by the media themselves or no data at all. 2.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.

Wesleyan University Philippines Maria Aurora, Aurora COLLEGE OF BUSINESS ADMINISTRATION

Figure 10-4: Developing the Media Plan Market Analysis Establishment of media objectives Media strategy development and implementation Evaluation and Follow-up

Figure 10-3: Activities involved in developing the Media Plan

The Situation Analysis Purpose: 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 practices 4. Methods of selling 5. Use of advertising 6. Identification of prospects 7. Nature of product The Marketing Strategy Plan Purpose: To plan activities that will solve one or more of the marketing problems includes the determination of: 1. Marketing objectives 2. Product and spending strategy 3. Distribution strategy 4. Which elements of the marketing mix is to be used? 5. Identification of best market segments. The Creative Strategy Plan Purpose: 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 Objectives Purpose: To translate marketing objectives and strategies into goals that media can accomplish. Determining Media Strategy Purpose: To translate media goals into general guidelines that will control the planners selection and use of media. The best strategy alternatives should be selected. Selecting broad Media Classes Purpose: 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 5 media classes.

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Selecting Media within classes Purpose: 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 decisionsbroadcast 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- print 1. 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. Billboards 2. Location of markets and plan of distribution. 3. Kinds of outdoor boards to be used. 4. Other media: Decisions' peculiar to those media.

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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Example: Age Segment 16-24 25-34 35-44 45+ Population in segment (%) 15.1 25.1 20.6 39.3 Product use in segment (%) 18.0 25.0 21.0 36.0 Index 119 100 102 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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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 percentage of total US population in the market Figure 10-10: Calculating BDI BDI= percentage of brand to total US sales in the market percentage of total US population in the market = 50% x 100 16% = 312 x 100 x 100

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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 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 percentage of total US population in market = 1% x 100 1% = 100 x 100 x 100

BDI= percentage of brand to total US sales in the market percentage of total US population in the market =2% x 100 1% =200

x 100

Wesleyan University Philippines Maria Aurora, Aurora COLLEGE OF BUSINESS ADMINISTRATION

Figure 10-11: Using BDI and CDI indexes High BDI High CDI High market share Good market potential Low CDI High market share Monitor for sales decline Low BDI Low market share Good market potential 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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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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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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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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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) 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. x 1000

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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 Philippines Maria 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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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 Philippines Maria 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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CLUTTER The problem of fleeting messages and shorter commercials are compounded by the fact that the advertisers 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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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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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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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 couldnt 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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