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Explain the meaning of reach, frequency, gross rating points, target rating points, effective reach, and other media concepts.. points, target rating points, effective reach, and other m

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1 Describe the major factors used in segmenting target

audiences for media planning purposes

2 Explain the meaning of reach, frequency, gross rating

points, target rating points, effective reach, and other media concepts

3 Discuss the logic of the three-exposure hypothesis

and its role in media and vehicle selection

4 Describe the use of the efficiency index procedure for

media selection

audiences for media planning purposes

points, target rating points, effective reach, and other media concepts

and its role in media and vehicle selection

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5 Distinguish the differences among three forms of

advertising allocation: continuous, pulsed, and flighted schedules

6 Explain the principle of recency and its implications for

allocating advertising expenditures over time

7 Perform cost-per-thousand calculations

8 Review actual media plans

advertising allocation: continuous, pulsed, and flighted schedules

allocating advertising expenditures over time

Chapter Objectives (cont’d)

After reading this chapter you should be able to:

Chapter Objectives (cont’d)

After reading this chapter you should be able to:

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Media versus Vehicles

 Example: the American Idol program

• Each medium and vehicle has a unique set of

characteristics and virtues

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Messages and Media:

A Hand-In-Glove Reaction

• Advertising message and media considerations

are inextricably related—creatives and media

specialists must team up to design ads

• Choice of media and vehicles requires a variety

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Selecting and Buying Media and Vehicles

• Choices:

 Traditional full-service ad agencies separately

providing creative, planning, and media buying

services for a client’s individual brands

 Single media buyer and planner agency providing

centralized media planning and buying services for all

of the client’s brands

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The Media-Planning Process

• Media Planning

 Is the design of a strategy that will best allocate

investments in advertising time and space to achieve the firm’s marketing objectives

 Involves coordinating three levels of strategy:

marketing, advertising, and media strategy

• Media Strategy Activities

1. Selecting the target audience

2. Specifying media objectives

3. Selecting media categories and vehicles

4. Buying media

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Model of the Media-Planning Process

Figure 11.1

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Selecting the Target Audience

Buyographics Geographic Demographic Psychographics Lifestyle/

Segmentation Factors

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Specifying Media Objectives

Issues in Setting Media Objectives

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Issues in Setting Media Objectives

advertising message during specified period?

during this period?

and frequency objectives?

audience be exposed to the advertising message?

Cost What is the most economically justifiable way to accomplish

objectives?

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Media Objective: Reach

• Reach

 Is the percentage of the target audience exposed, at least once, during a specified time frame to the

vehicles in which the advertising message is inserted

 Also known as 1+, Net coverage, unduplicated

audience, and cumulative audience (cume)

 OTS = opportunity to see

• Determinants of Reach

 Use of multiple media

 Diversification of vehicles within each medium

 Varying dayparts for radio and TV advertising

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Media Objective: Frequency

• Frequency

 Is the average number of times during a

media-planning period that the target audience members are exposed to media vehicles carrying a brand’s

advertising message

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Hypothetical Frequency Distribution for the Fortwo Advertised in Cosmopolitan Magazine

Table 11.1

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Media Objective: Weight

• Weight Defined

 The advertising volume required to accomplish

advertising objectives

• Ratings

 The percentage of an audience that has an

opportunity to see an advertisement placed in a

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Weight Metrics

• Gross Rating Points (GRPs)

 Represent the gross weight that a particular

advertising schedule is capable of delivering—the

sum of all vehicle ratings in a media schedule

 GRPs = Reach (R) × Frequency (F)

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Weight Metrics (cont’d)

• Target Rating Points (TRPs)

 Are adjusted vehicle’s ratings that reflect only those individuals who match the advertiser’s target

audience

 Indicate a media schedule’s net (non-wasted) weight

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Weight Metrics (cont’d)

• The Concept of Effective Reach

 Answers the question of how often does the target

audience have an opportunity to be exposed

 Is that an advertising schedule is effective only if it

does not reach members of target audience too few

or too many times

• Three-Exposure Hypothesis (Krugman)

 A minimum of three exposures to an advertising

message needed for effective advertising

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Weight Metrics (cont’d)

• Effective Reach Planning in Advertising Practice

 No fewer than three and no more than ten exposures during a four-week media planning period

 Use of multiple media

 Subjective factors must be considered

• Effective Rating Points (ERPs)

 ERPs = effective reach (or exposures) × frequency

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Alternative Media Plans Based on a $25 Million Annual Budget and Four-Week Media Analysis

Table 11.2

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Weight Metrics (cont’d)

• An Alternative Approach: Frequency Value

Planning

 The objective is to select the media schedule that

generates the most exposure value per GRP

 Step 1 Estimate the exposure utilities for OTS that a

schedule produces.

 Step 2 Estimate the frequency distribution of the various

media schedules that are under consideration.

 Step 3 Estimate the OTS value at each OTS level.

 Step 4 Determine the total value across all OTS levels.

 Step 5 Develop an index of exposure efficiency.

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Exposure Utilities for Different OTS Levels

Table 11.3

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Frequency Distributions and Valuations

of Two Media Schedules

Table 11.4

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Media Objective: Continuity

• Continuity

 Involves how advertising is allocated during the

course of an advertising campaign

 Addresses the fundamental issue of how the media budget be distributed:

 Uniformly throughout the period of the advertising campaign

 In a concentrated period to achieve maximum impact

 Some other schedule between these two choices

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Allocating the Advertising Budget

Continuous

Schedule

Pulsing Schedule

Flighting Schedule

Budgeting Alternatives

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Advertising Budgeting Alternatives

• Continuous Advertising Schedule

 An equal number of ad dollars are invested

throughout the campaign

• Pulsing

 Some advertising is used during every period of the campaign, but the amount of advertising varies from period to period

• Flighting

 The advertiser varies expenditures throughout the

campaign and allocates zero expenditures in some

months

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Advertising Budgeting Alternatives

• Recency Planning (a.k.a The Shelf-Space

Model) Principles

1. Consumers’ first exposure to an advertisement is

the most powerful

2. Advertising’s primary role is to influence brand

choice

3. Achieving a high level of weekly reach for a brand

should be emphasized over acquiring heavy

frequency

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Recency Planning: Continuous Presence

• Advertising’s Role in Optimizing Weekly Reach

 To influence brand selection by reminding,

reinforcing, and evoking earlier messages

 To reach consumers when they are ready to buy a

brand—”rent the shelf”, not out of sight, out of mind

 To reach consumers close to the time when they are making brand-selection decisions

 Single exposure cost effectiveness is about three

times the value of subsequent exposures

 To reach as many consumers for as many weeks as possible rather than sporadically at select times

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Allocating the Advertising Budget

• Toward Reconciliation: It Depends!

 No single budgeting approach is equally effective for all brands—what works best depends on the

particular circumstances of the brand

• Strong Advertising Model

 Advertising is important because it teaches

consumers about brands and encourages trial

purchases leading to the prospect of repeat buying

• Weak Advertising Model

 Most advertising messages are not important to

consumers and that consumers do not learn much

from advertising

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Cost Considerations

• Cost per Thousand (CPM)

 The cost of reaching 1,000 people as a measure of media efficiency

 CPM = Cost of ad ÷ Number of total contacts reached

(expressed in thousands)

 The cost of reaching 1,000 members of the target

audience, excluding those people who fall outside the target market

 CPM-TM = Cost of ad ÷ Number of target market contacts

reached (expressed in thousands)

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Cost Consideration Calculations

• Advertising at a Football Game

 Cost of message delivery = $500.00

 Stadium capacity = 80,000 persons

 Cost per Thousand (CPM) = $500.00 ÷ 80 = $ 6.25

• Advertising on Television

 Total program viewership = 18,273,600 households

 Cost of 30-second commercial = $780,000

 CPM = $780,000 ÷ 18,273.6 = $42.68

 Target market percentage = 60%

 CPM-TM = $780,000 ÷ (60% × 18,273.6) = $71.14

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Use Media Cost Calculations With Caution!

• The CPM and CPM-TM Statistics

 Are useful for comparing the cost-efficiency of

different advertising vehicles, not their effectiveness

 Lack comparability across media that are unique and priced differently

 Can be misused unless vehicles within a particular

medium are compared on the same basis (e.g.,

usage and timing)

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The Necessity of Making Tradeoffs

• Why Tradeoffs?

 Media planners operate

under the constraint of a

fixed advertising budget

 Optimizing one objective

impacts other objectives

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Media-Scheduling Software

• Computerized Media-Scheduling Models

 Attempt to optimize an objective function (e.g., reach) subject to satisfying constraints (e.g., budgetary

limits) in developing a specific media schedule

• Steps in Using a Computerized Model

1. Develop a media database

2. Select the criterion for schedule optimization

3. Specify budget and frequency constraints for each

vehicle

4. Seek out the optimum media schedule

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Media Database for the Esuvee-H

Table 11.5

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ADplus Magazine Schedule for the Esuvee-H

Table 11.6

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ADplus Magazine Schedule for the Esuvee-H (cont’d)

Table 11.6

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Review of Media Plans

soft-drink consumers

its growth rate to 1.5 times that of the diet soft-drink category.

and image factors that influence brand choice in this category.

Diet Dr Pepper from other diet drinks—particularly that Diet Dr Pepper is a unique, clever, fun, entertaining, and interesting brand to drink.

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Review of Media Plans (cont’d)

• The Diet Dr Pepper Campaign (cont’d)

 Creative Strategy

 To position the Diet Dr Pepper brand as “tasting more like regular Dr Pepper”—nearly 60 percent of initial trial users of Diet Dr Pepper are motivated by the desire to have a diet soft drink that tastes like regular Dr Pepper.

 Media Strategy

 Place advertisements during professional and college

football games

 Sponsor various special events

 Continuously advertise during prime time, on late-night

television, on syndicated programs, and on cable stations

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Media Plan for

Diet Dr Pepper

Table 11.7

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Media Plan for

Diet Dr Pepper

(cont’d)

Table 11.7

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Review of Media Plans (cont’d)

• Saab Model 9–5 Campaign

 Target:

 Upscale families and relatively affluent older consumers

 Objectives:

 Generate excitement for the new 9–5 model line

 Increase overall awareness for the Saab name

 Encourage consumers to visit dealers and test-drive the 9–5

 Produce retail sales of 11,000 units of the 9–5 during the

introductory year

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Review of Media Plans (cont’d)

delivering an ideal synthesis of performance and safety

target group of older and financially well-off consumers

5’s introduction

the 9-5’s introduction year

throughout the introductory year

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Media Plan for the Saab 9-5

Table 11.8

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Review of Media Plans (cont’d)

• Olympus Camera Media Plan

 Target:

 Digital camera users

 Objectives:

 To introduce the Stylus Verve and the m:robe successfully

 To shift marketplace perceptions that Olympus was a maker

of designer electronics items and not merely cameras

 Strategy

 Place the Olympus message in media that people talk about, that generate buzz, that yield free media coverage, that have longevity, and that are influential.

 To reach both men and women and suitable for Olympus’

fourth-quarter selling season (October through December)

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Review of Media Plans (cont’d)

• Olympus Camera Media Plan (cont’d)

 Media and Vehicles:

 Sponsored sporting and fashion events

 National network and cable TV programs with high

viewership and buzz potential

 Various magazines with different readership segments

 Out of home (OOH) impact units in key Olympus markets

 In-theater advertising in the top-25 markets

 Online advertising through a non-branded interactive Web site

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Media Plan for Olympus’ Stylus Verve and m:robe Brands

Table 11.9

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