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The Media Business. The word media comes from the Latin word “middle.” Media carry messages to or from a targeted audience and can add meaning to these messages. . Media Terminology. Media Planning - A series of decisions involving the delivery of messages to audiences.

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the media business
The Media Business

The word media comes from the Latin word “middle.”

Media carry messages to or from a targeted audience and can add meaning to these messages.

media terminology
Media Terminology
  • Media Planning - A series of decisions involving the delivery of messages to audiences.
  • Media Objectives - Goals to be attained by the media strategy and program.
  • Media Strategy - Decisions on how the media objectives can be attained.
  • Media - The various categories of delivery systems, including broadcast and print media.
  • Broadcast Media - Either radio or television network or local station broadcasts.
media terminology3
Media Terminology
  • Print Media - Publications such as newspapers, magazines, direct mail, outdoor, and the like.
  • Media Vehicle - The specific message carrier, such as the Washington Post or Tonight Show.
  • Coverage - The potential audience that might receive the message through the the vehicle.
  • Reach - The actual number of individual audience members reached at least once by the vehicle.
  • Frequency - The number of times the receiver is exposed to vehicle in a specific time period.
media classifications
Media Classifications

Most mass media guarantee only the opportunity for a large audience to be exposed to a brand.

Communication vehicles are specific publications, networks, channels, stations, and programs that make up a medium.

media intrusiveness
Media Intrusiveness

Media vary in their degree of intrusiveness.

Ways to reduce intrusiveness include:

  • Chose media in which the target audience is interested in the product.
  • Ask customers what type of information they would like to receive, in what way, and when.
print media
Print media include:

Newspapers

Magazines

Directories

Mail brochures

Mail

Packaging

All other forms, which are produced by printing and are relatively permanent

Print Media
newspapers characteristics
Advantages

High coverage

Low cost

Short lead time for placing ads

Ads can placed in interest sections

Timely (current ads)

Reader controls exposure

Can be used for coupons

Disadvantages

Short life

Clutter

Low attention-getting capabilities

Poor reproduction quality

Selective reader exposure

Newspapers Characteristics
magazines characteristics
Advantages

Segmentation potential

Quality reproduction

High information content

Longevity

Multiple readers

Disadvantages

Long lead time for ad placement

Visual only

Lack of flexibility

Magazines Characteristics
directories
A directory is both a reference and an advertising medium.

The most widely known is the Yellow Pages.

Yellow Pages advertising is often the primary or only form of advertising used by many small, local retailers.

A weakness of the Yellow Pages is that they are printed only once a year.

Directories
broadcast media
Broadcast media include radio and television.

Broadcast media differs from print in that people often do other things while listening or viewing, so messages are fleeting.

Broadcast commercials are more intrusive than print ads.

Broadcast Media
radio characteristics
Advantages

Local coverage

Low cost

High frequency

Flexible

Low production costs

Well-segmented audiences

Disadvantages

Audio only

Clutter

Low attention getting

Fleeting message

Radio Characteristics
television characteristics
Advantages

Mass coverage

High reach

Impact of sight, sound, and motion

High prestige

Low cost per exposure

Attention getting

Favorable mage

Disadvantages

Low selectivity

Short message life

High absolute cost

High production costs

Clutter

Television Characteristics
outdoor characteristics
Advantages

Location specific

High resolution

Easily noticed

Disadvantages

Short exposure time requires short ad

Poor image

Local restrictions

Outdoor Characteristics
interactive
INTERACTIVE
  • A VARIETY OF MEDIA THAT ALLOWS THE CONSUMER TO INTERACT WITH THE SOURCE OF THE MESSAGE, ACTIVELY RECEIVING INFORMATION AND ALTERING IMAGES, RESPONDING TO QUESTIONS, AND SO ON.
interactive media
INTERACTIVE MEDIA
  • AUDIOTEX
    • AUTOMATED TELEPHONE INFORMATION SERVICES
  • CD-ROM
  • FAX ON DEMAND
  • INTERACTIVE TV
  • INTERNET
  • KIOSKS
    • AVAILABLE IN HOTELS, SHOPPING MALLS
  • ONLINE SERVICES
    • AMERICAN ONLINE, PRODIGY
  • SCREEN TELEPHONY
    • TELEPHONES EQUIPPED WITH KEYBOARD TO ENTER AND ACCESS DATA
internet interactive media characteristics
Advantages

User selects product information

User attention and involvement

Interactive relationship

Direct selling potential

Flexible message platform

Disadvantages

Limited creative capabilities

Web snarl (crowded access)

Technology limitations

Few valid measurement techniques

Limited reach

Internet / Interactive Media Characteristics
direct mail characteristics
Advantages

High selectivity

Reader controls exposure

High information content

Opportunities for repeat exposures

Disadvantages

High cost/contact

Poor image (junk mail)

Clutter

Direct Mail Characteristics
developing the media plan

Marketing Strategy Plan

Creative Strategy Plan

Setting Media Objectives

Determining Media Strategy

Selecting Broad Media Classes

Selecting Media Within Class

Media Use Decision

— Broadcast

Media Use Decision

— Print

Media Use Decision

— Other Media

Developing the Media Plan

Situation Analysis

market analysis and target market identification
MARKET ANALYSIS AND TARGET MARKET IDENTIFICATION
  • ADVERTISING TARGET
    • SIMMONS MARKET RESEARCH BUREAU--AUDIENCE SIZE AND COMPOSITION--100 PUBLICATIONS, >800 CONSUMER PRODUCTS AND SERVICES
    • MEDAIMARK RESEARCH, INC--DEMOGRAPHIC & PRODUCT USAGE, PROVIDES LIFESTYLE INFORMATION & MEDIA USAGE CHARACTERISTICS OF THE POPULATION
  • WHERE TO PROMOTE
    • BUYING POWER INDEX--SALES & MARKETING MGT MAGAZINE
    • BRAND DEVELOPMENT INDEX
    • CATEGORY DEVELOPMENT INDEX
establishing media objectives
ESTABLISHING MEDIA OBJECTIVES
  • GOALS FOR THE MEDIA PROGRAM
    • LIMITED TO THOSE THAT CAN BE ACCOMPLISHED THROUGH MEDIA
  • EXAMPLES
    • USE 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
market analysis and target market identification continued
MARKET ANALYSIS AND TARGET MARKET IDENTIFICATION--continued
  • INTERNAL FACTORS--SIZE OF MEDIA BUDGET, MGT & ADMIN CAPABILITIES, ORGANIZATION OF THE AGENCY
  • EXTERNAL FACTORS--ECONOMY, RAISING COST OF MEDIA, TECHNOLOGY
  • SURVEY OF BUYING POWER INDEX--POTENTIAL OF A METRO AREA
market analysis and target market identification continued27
MARKET ANALYSIS AND TARGET MARKET IDENTIFICATION--continued
  • BRAND DEVELOPMENT INDEX--COMPARES % OF THE BRAND’S TOTAL U.S. SALES IN A GIVEN MARKET AREA WITH THE % OF TOTAL POPULATION IN THE MARKET TO DETERMINE SALES POTENTIAL
  • CATEGORY DEVELOPMENT INDEX--POTENTIAL FOR DEVELOPING THE TOTAL PRODUCT CATEGORY
evaluation and follow up
EVALUATION AND FOLLOW-UP
  • HOW WELL DID THESE STRATEGIES ACHIEVE THE MEDIA OBJECTIVES?
  • HOW WELL DID THIS MEDIA PLAN CONTRIBUTE TO ATTAINING THE OVERALL MARKETING AND COMMUNICATIONS OBJECTIVES
media planning difficulties
Media Planning Difficulties
  • Lack of information
  • Inconsistent terms
  • Serious time pressure
  • Measurement problems
media planning criteria considerations
Media Planning Criteria Considerations
  • The media mix
  • Target market coverage
  • Geographic coverage
  • Scheduling
  • Reach versus frequency
  • Creative aspects and mood
  • Flexibility
  • Budget considerations
brand and category analysis

Brand Development Index

Percentage of brand to total U.S. sales in market

BDI =

X 100

Percentage of total U.S. population in market

Brand and Category Analysis
brand development index
BRAND DEVELOPMENT INDEX
  • A BDI IS CALCULATED BY DIVIDING THE PERCENT OF SALES A MARKET ACCOUNTS FOR, BY THE MARKET’S PERCENTAGE OF POPULATION OF THE U.S. AN INDEX OF 100 WOULD INDICATE A FLAT MARKET--SALES AND POPULATION ARE EQUAL. AN INDEX OF LESS THAN 100 WOULD INDICATE A POOR SALES MARKET--SALES ARE LESS THAN THE POPULATION, AND AN INDEX OVER 100 INDICATES A STRONG SALES MARKET
  • % POPULATION% SALESBDICOMMENTS
    • 6.28 6.28 100FLAT SAL MKT
    • 6.84 10.71 157 STRONG SAL MKT
    • 10.06 8.34 83 WEAK SAL MKT
brand and category analysis33
Brand and Category Analysis

Brand Development Index

Percentage of product category total sales in market

CDI =

X 100

Percentage of total U.S. population in market

brand and category analysis34
Brand and Category Analysis

HighBDI

LowBDI

High market share

Good market potential

Low market share

Good market potential

High CDI

High market share

Monitor for sales decline

Low market share

Poor market potential

LowCDI

brand and category analysis35
Brand and Category Analysis

HighBDI

Low BDI

The market usually represents good sales potential for both the product and the brand.

The product category shows high potential but the brand isn’t doing well; the reason should be determined.

High CDI

The category isn’t selling well but the brand is; may be a good market in which to advertise but should be monitored for sales decline.

Both the product category and the brand are doing poorly; not likely to be a good place to advertise.

Low CDI

target audience coverage
Target Audience Coverage

Population excluding target market

Target market

Media coverage

Media overexposure

Target

Market

Proportion

Full

Market

Coverage

Partial

Market

Coverage

Coverage

Exceeding

Market

three scheduling methods

Continuity

Flighting

Pulsing

Three Scheduling Methods

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

reach and frequency

Reach of One Program

Reach of Two Program

Total market audience reached

Total market audience reached

Total reached with both shows

Total reach less duplicate

Reach and Frequency

Duplicated Reach of Both

Unduplicated Reach of Both

graph of effective reach

25%

Ineffective

Reach

20%

Effective

Reach

15%

Ineffective

Reach

10%

5%

0%

0

5

10

15

Graph of Effective Reach

Percentage Reach

Exposures

marketing factors important to determining frequency
Marketing Factors Important toDetermining Frequency
  • Brand history
  • Brand share
  • Brand loyalty
  • Purchase cycles
  • Usage cycle
  • Competitive share of voice
  • Target group
message or creative factors important to determining frequency
Message or CreativeFactors Important toDetermining Frequency
  • Message complexity
  • Message uniqueness
  • New vs. continuing campaigns
  • Image versus product sell
  • Message variation
  • Wearout
  • Advertising units
media factors important to determining frequency
Media Factors Important toDetermining Frequency
  • Clutter
  • Editorial environment
  • Attentiveness
  • Scheduling
  • Number of media used
  • Repeat Exposures
determining relative cost of media
Determining RelativeCost of Media

Cost per thousand (CPM)

Cost of ad space

(absolute cost)

CPM =

X 1,000

Circulation

determining relative cost of media44
Determining RelativeCost of Media

Cost per rating point (CPRP)

Cost of commercial time

CPRP =

Program rating

cost of media
COST OF MEDIA

MAGAZINE

    • PER-PAGE COST $156,000
    • CIRCULATION 4.0MM
    • CALCULATION OF CPM 156,000 X 1,000

4,000,000

    • CPM $39.00
  • BROADCAST
    • COST PER-PER SPOT AD $3,500
    • RATING 11
    • REACH (HOUSEHOLDS) 109,000
    • CALCULATION $3,500/11
    • CPRP $318.18
cost of media continued
COST OF MEDIA--CONTINUED
  • NEWSPAPER
    • COST PER PAGE $32,205
    • COST PER INCH $268.60
    • CIRCULATION 499,000
    • CALCULATION
      • CPM PAGE COST X 1,000

CIRCULATION

      • CPM $32,205 X 1,000

499,000

$64.54

characteristics of media
CHARACTERISTICS OF MEDIA
  • MATCHING OF MEDIA TO MARKETS
    • EACH MEDIA HAS ITS OWN CHARACTERISTICS THAT MAKES IT BETTER OR WORST FOR ATTAINING SPECIFIC OBJECTIVES