Traditional Media Channels

Transcription

1 Chapter 8 Traditional Media Channels LEARNING OBJECTIVES Students should be able to answer the following questions: 1. What activities are involved in creating a media strategy? 2. How do the roles played by media planners and media buyers differ from others in the marketing department? 3. What are reach, frequency, continuity, impressions, and CPM? 4. What are the advantages and disadvantages of various forms of traditional media used in advertising? 5. Why is the mix of media a key part of an advertising campaign? CHAPTER OVERVIEW This chapter is devoted to explaining the nature of the advertising media selection. The topics to be covered include: The media strategy Media planning processes and the roles of the media planner and buyer Advertising objectives Media choices based on the advantages and disadvantages of each medium Media selection in business-to-business and international settings Development of an advertising campaign within the framework of an integrated marketing communications program is the most important function an advertising agency can provide. Advertising media selection is an important element in the success of any advertising program. Figure 8.1 displays all of the components of an IMC program and how traditional media, e- active marketing, and alternative channels fit in the program. 160

2 LEAD-IN VIGNETTE M & M's: The Sweet Task of Media Selection Using animated spokescandies, M & M's have been successfully advertised for many years. Television, print, and Internet ads are used in conjunction with charity sponsorships and evolving campaign themes. Questions for Students: 1. Name another candy that you have seen advertised. Do the ads compare favorably with M & M's? 2. Can you name another candy company that has sponsored charitable events? CHAPTER OUTLINE Media Strategy A media strategy is the process of analyzing and choosing media for an advertising and promotions campaign. The strategy must take into account several factors, which should have been specified in a creative brief: The average consumer spends little time on any advertisement. Simply finding the right places to speak to potential customers is an increasingly challenging task. Figure 8.2 lists times when workers are exposed to advertisements. The first step is to prepare a thorough media-planning program that accounts for the general advertising methods and objectives to be utilized. Media Planning Media planning begins with a careful analysis of the target market. Demographics such as age, gender, income, and education are not enough to determine the media habits of a person in a target market. Figure 8.3 identifies the components of a media plan, which are: A marketing analysis to review the fundamental marketing program An advertising analysis to spell out fundamental advertising strategy A media strategy to state the media to be used and creative consideration Media scheduling notes the times ads will appear Justification and summary to state the measures and the rationale for media choices 161

3 Media Planners The primary job of the media planner is to formulate a program stating where and when to place advertisements, working closely with creatives and account executives. Another task for the media planner is to conduct research to match the product with the market and media. Part of the media planner s research is devoted to gathering facts about various media, such as the circulation rates and demographic groups reached by each medium. Media Buyers The media buyer purchases the space, while negotiating rates, times, and schedules for ads. To ensure promotional dollars are spent wisely, it is best to involve the media planner and the media buyer with the creative and the account executive in the design of an advertising campaign. There is little connection between the size of an advertising firm and the prices they can negotiate. Differences in effectiveness of advertising are often related to: Quality media choices (the right ones) made by each agency Creativity Financial stewardship ( bang for your advertising buck) Agency culture and track record Computer systems to analyze data Relationships between the agency and the medium s sales representative The negotiated price is only one element in the success of an advertising program. Advertising Objectives Several concepts or technical terms used in the advertising world are important in developing media objectives. Terms students need to understand include: Reach, which is the number of people, households, or businesses in a target audience exposed to a media vehicle or message schedule at least one time during a given time period (usually four weeks). Frequency, which is the average number of times an individual, household, or business within a particular target market is exposed to a particular advertisement within a specified time period (again, usually four weeks). 162

4 Opportunity to see (OTS), which is the cumulative exposures achieved in a given time period. Gross rating points (GRP), measure of the impact or intensity of a media plan. GRPs are calculated by multiplying a vehicle s rating by the frequency or number of insertions of an advertisement. Cost is a measure of overall expenditures associated with an advertising program or campaign. A second useful number that can be calculated to measure the costs of a program is the cost per thousand (CPM) of the program. The cost per thousand is calculated by using the following formula: CPM = (cost of media buy / total audience) x 1,000 To calculate the Cost Per Rating Point (CPRP), the formula is: CPRP = cost of media buy / vehicle s rating To calculate the weighted (or demographic) CPM, the formula is: Weighted CPM = advertisement cost x 1,000 / actual audience reached Continuity is the exposure pattern or schedule used in the ad campaign. The three types of patterns used are: Continuous a continuous campaign buys media time in a steady stream throughout the year. Pulsating a firm advertises some throughout the whole year, but will increase advertising in small, short bursts around special events, such as holidays. Flighting (discontinuous) a flighting schedule places advertisements at special intervals during the year, with no advertising between. Impressions, in which the number of gross impressions is the total exposures of the audience to an advertisement. It does not take into consideration what percentage of the total audience did or did not see an advertisement. Achieving Advertising Objectives The three-exposure hypothesis suggests that it takes a minimum of three exposures for an advertisement to be effective. It has been followed by most media planners for quite a while. 163

5 Seeking to discover the minimum number of exposures needed to be effective is based on two concepts: 1. Effective frequency, which refers to the number of times a target audience must be exposed to a message in order to achieve a particular objective. 2. Effective reach, which is the percentage of an audience that must be exposed to a particular message to achieve a specific objective. Implied in the concept of effective reach is that some minimum number of exposures exits. Effective reach and frequency are affected by differences in: The interests, personalities, and exposures to the media outlets for individual consumers The size and placement of ads The number of different media being used in a particular advertising campaign Recency Theory Recency theory suggests that a consumer s attention is selective and is focused on his or her individual needs and wants. The traditional three-exposure hypothesis is based on the intrusion value of advertisements, which is the ability of a media or advertisement to intrude upon a viewer without their voluntary attention. In contrast, recency theory states that consumers use selective attention processes as they consider advertisements. Attention is given to messages that might meet a person s needs or wants. The closer, or more recent, an ad is to a purchase, the more powerful the ad will be. When a consumer is contemplating a future purchase of the product being advertised, the more likely it becomes the consumer will pay attention to and react favorably toward an ad. Recency theory notes that advertising is a waste of money when ads reach individuals who are not in the market for a particular product and for those who do not need the product. Another difference in recency theory is the idea that one ad exposure is enough to affect an audience when that person or business needs the product being promoted. Figure 8.5 compares brand recognition to brand recall. In the business-to-business arena, the application of the recency theory means ads should appear in a number of outlets rather than running a series of ads in one trade journal. Media Selection Television Table 8.2 summarizes the advantages and disadvantages of television advertising. 164

6 Advantages: High reach High frequency potential Low cost per contact Quality creative opportunities High intrusion value Segmentation possibilities through cable Disadvantages: Clutter Channel surfing during commercials Short amount of copy High cost per ad Low recall Television has always been a popular medium for consumer products. Recently, however, more business-to-business ads are appearing on television. Television ratings are calculated as follows: Rating = number of households turned to a program / total number of households in a market Television share is calculated as follows: Share = number of households turned to a program / number of households with a television turned on Figure 8.6 displays costs of television advertisement 30 second spots in Radio The advantages and disadvantages of radio advertising are displayed in Table Advantages: Lower cost per spot than television Low production costs Background music can match station format High segmentation Flexible Intimacy which means listeners can develop a closeness to the DJs and other radio personalities Creative opportunities Mobile 165

7 Disadvantages: Short exposure time Low attention Few national audiences Target duplication when several stations use the same format Radio advertising is a low-cost option for a local firm. Radio remotes, where the station broadcasts from a business location, have been popular methods of attracting attention. For business-to-business advertisers, radio provides the opportunity to reach businesses during working hours or while business people are in transit to or from work. Outdoor Advertising Table 8.4 summarizes the advantages and disadvantages of outdoor advertising. Advantages: Large, spectacular ads possible Able to select key geographic areas Accessible for local ads Low cost per impression Broad reach High frequency on major commute routes Long life Disadvantages: Short exposure time Brief messages Limited segmentation possible Cluttered travel routes There are also some legal limitations to outdoor advertising. Figure 8.7 lists the types of products that are advertised using outdoor and amounts of expenditures. Magazines The advantages and disadvantages of magazines are summarized by Table 8.5. Advantages: High market segmentation Target audience interest by magazine High color quality Special features available Long life 166

8 Direct response techniques Read during leisure time Disadvantages: Declining readership High level of clutter Long lead time Low flexibility High cost Magazines have proliferated even as the problems of declining readership have occurred. Although business-to-business marketers are increasingly using other mediums, trade journals and business magazines still remain an effective method of reaching their target markets. Newspapers The advantages of disadvantages of newspaper advertising appear in Table 8.6. Advantages: Geographic selectivity High flexibility High credibility Strong audience interest Longer copy/message possible Cumulative volume discounts Excellent location for coupons and special-response features Disadvantages: Poor buying procedures Short life span Major clutter (especially near Christmas) Poor color quality Internet classified competition Few young people read newspapers. Most major city newspapers are now owned by chains such as Gannett. For many smaller local firms, newspaper ads, billboards, and local radio programs are the only viable advertising options. A new threat to newspapers is the Internet. One strategy that newspapers can use to counter the trend of classified advertisements moving to the Internet is to establish their own Internet classified sites. 167

9 Newspapers have not been a major medium for business-to-business marketers primarily because of the local nature of newspapers. Media Mix Selecting the proper blend of media outlets for advertisements is a crucial activity as campaigns are prepared. Media planners and media buyers are both excellent sources of information on what type of mix is the most effective for a particular advertising campaign. There are several possible linkages between various media. Table 8.7 provides advertising expenditures and average media mix percentages by industries or products. Media Selection in Business-to-Business Markets Currently, about 56% of all business advertising dollars are spent in non-business environments. There are several reasons for this shift to more non-business media. Business decision makers are also consumers of goods and services, so the same psychological techniques work Business decision makers are very difficult to reach at work, so companies try to reach them elsewhere Clutter among the traditional business media has made it more difficult to get a company noticed Trade journals provide an opportunity to reach members of the buying center who may not be able to be reached with sales people. Clutter, however, is a major problem in trade journals. As a result, many companies, in addition to trade journals, also use business magazines such as Business Week and consumer magazines. This approach is successful because many of the goals in business-to-business advertisements are the same as those devoted to consumers. International Implications Understanding media viewing habits in international markets is important for successful advertising programs. Media viewing is different, as is media buying in other countries. Figure 8.11 summarizes media usage in the United States, Europe, and Japan. In international settings, it is important to understand that the media habits of consumers vary as well as their daily life styles. In general, many of the tactics used to develop advertising campaigns in the United States apply to international advertising. What differs is the nature of the target markets, consumer media preferences, and the processes used to buy media. Careful attention must be given to cultural mores to make sure that the buying process does not offend the cultural and religious attitudes, which are prevalent in any given region. 168

10 IMPLICATIONS FOR MEDIA PLANNERS, BUYERS, AND ACCOUNT EXECUTIVES (Note to professors -- these materials are not in the text. They provide a method for you to summarize the chapter in a different way) Start with the message theme, and finish with the message theme. The IMC approach works best if every activity focuses on the one clear voice of the company. Decide whether the client is large enough to have a separate media planner and media buyer, or if the two positions should be combined. Remember, the driving criteria should be service to the client, not cost savings. Review the research conducted by the media planner. Make sure the plan is doing an effective job of finding media to match the message, the company, its customers, and the goods or services being advertised. Review the work being performed by the media buyer. Make sure that purchases do indeed reflect the best available rates for the client. Also make sure the times and schedules are appropriate, and that they will lead to the best possible response. Develop a strong, positive relationship with the media planner and media buyer, and between those two individuals and the client. The planner and buyer will have a large impact on the success of the campaign. Consider hiring a research agency, as needed, to follow on up advertising campaigns in order to be certain the company is effectively reaching its audience. Review the goals of advertising with every client. Make sure they understand the differences between: Reach (and effective reach) Frequency (and effective frequency) Opportunity to see (OTS) Continuity CPM, GRP, ratings, and CPRP Impressions Ratings Share Review the advantages and disadvantages of each potential medium with clients. Avoid using words like always and never when discussing options. Talk carefully about the potential mixes of media. Note that the Internet is probably going to be somehow connected to every advertising campaign, even if only to give the company s Web site address. 169

11 Ask business customers to think about their intentions in reaching members of the buying center. Remind them of the challenges associated with: 1. Straight rebuys 2. Modified rebuys 3. New task purchases Consider the differences in the mix that will exist between business campaigns and consumer campaigns. Make certain creatives are aware of the trade journals and other advertising outlets that should be part of every business-to-business advertising campaign. Think SMALL. Remind the creative, media planner, and media buyer of all of the small ways a product can be advertised and a message can be reinforced. These include: Envelopes carrying the company s current advertising message Give-away in contests where the company provides the prize in return for being mentioned Merchandise which can be sold or given away carrying advertising, such as cups, toys, carry out bags, receipts, ash trays, napkins, towels, packaging and other containers, and every creative method possible to restate the firm s name Follow up. Find ways to keep score. Make sure you can give prospective clients clear and convincing evidence that your firm knows how to effectively reach a company s ongoing and new customers. REVIEW QUESTIONS 1. What is a media strategy? How is it related to the creative brief and overall IMC program? A media strategy is the process of analyzing and choosing media for an advertising and promotions campaign. It is related to the Creative Brief and overall IMC program because the media strategy follows the factors given by the Creative Brief and IMC program. 2. What does a media planner do? A media planner formulates a program stating where and when to place advertisements. Also, the media planner conducts research to match the product with the market and media. Part of the media planner s research is devoted to gathering facts about various media, such as the circulation rates and demographics groups reached by each medium. 3. Describe the role of media buyer in an advertising program. The role of a media buyer in an advertising program is to buy the space, negotiate rates, times, and schedules for the ads. To ensure promotional dollars are spent wisely, 170

12 it is best to involve the media planner and the media buyer with the creative and the account executive in the design of an advertising campaign. 4. What is reach? Give examples of reach in various advertising media. Reach is the number of people, households, or businesses in a target audience exposed to a media vehicle or message schedule at least one time during a given period. Examples of reach in various media would include: how many people heard the radio ad, read the newspaper, watched the ad on television, accessed a Web site, or saw a billboard. 5. What is frequency? How can an advertiser increase frequency in a campaign? Frequency is the average number of times an individual, household, or business within a particular target market is exposed to a particular advertisement within a specified time period (normally four weeks). An advertiser can increase frequency by increasing the number of ads within a time period in a given market. For example: the same ad several times during one TV program, several times in a magazine, or several times in a radio show. 6. What are gross rating points? What do they measure? Gross rating points (GRP) are a measure of the impact or intensity of a media plan. They measure the chances the target audience actually viewed the ad. GRP are calculated by multiplying a vehicle s rating by the frequency or number of insertions of an advertisement. 7. What is the difference between CPM and CPRP? What costs do they measure? The difference between cost per thousand (CPM) and cost per rating point (CPRP) is that CPM measures the dollar cost of reaching 1,000 members of the media vehicle s audience. CPRP is a relative measure of the efficiency of a media vehicle to a firm s target market. CPRP takes into consideration the rating of the media vehicle, not just the cost of the media. 8. What is continuity? Continuity is the exposure pattern or schedule used in the campaign. The three types of patterns used are: Continuous a continuous campaign buys media time in a steady stream. Pulsating a firm advertises some throughout the whole year but will increase advertising in small, short bursts around special events such as holidays. Flighting the campaign schedule places advertisements at special intervals with no advertising between. 171

13 9. Describe the three-exposure hypothesis. The three-exposure hypothesis is a basic rule stating that it takes a minimum of three exposures for an advertisement to be effective. 10. How is recency theory different from the three-exposure hypothesis? Recency theory is different because it suggests that a consumer s attention is selective and is focused on his or her individual needs and wants. This is different from threeexposure hypothesis because consumers may not need three exposures for an ad to be effective if they are interested in the product. 11. What is effective frequency? Effective reach? Effective frequency is the number of times a target audience must be exposed to a message in order to achieve a particular objective. Effective reach is the percentage of an audience that must be exposed to a particular message to achieve a specific objective. Implied in the concept of effective reach is that some minimum number of exposures exits. Effective reach and frequency are affected by differences in: The interests, personalities, and exposures to the media outlets for individual consumers The size and placement of ads The number of different media being used in a particular advertising campaign 12. What are the major advantages and disadvantages of television advertising? Advantages include: High reach High frequency potential Low cost per contact Quality creative opportunities High intrusion value Segmentation possibilities through cable Disadvantages include: Clutter Channel surfing during commercials Short amount of copy High cost per ad Low recall 13. What are the major advantages and disadvantages of radio advertising? Advantages: Lower cost per spot than television Low production costs 172

14 Background music can match station format High segmentation Flexible Intimacy which means listeners can develop a closeness to the DJs and other radio personalities Creative opportunities Mobile Disadvantages include: Short exposure time Low attention Few national audiences Target duplication when several stations use the same format Radio advertising is a low-cost option for a local firm 14. What are the major advantages and disadvantages of magazine advertising? Advantages include: High market segmentation Target audience interest by magazine High color quality Special features available Long life Direct response techniques Read during leisure time Disadvantages include: Long lead time to ad appearance Low flexibility High cost Higher clutter Declining readership 15. What are the major advantages and disadvantages of newspaper advertising? Advantages include: Priority for local ads Good for coupons and special-response features High credibility Strong audience interest Longer copy/message possible Flexibility Cumulative volume discounts 173

15 Disadvantages include: Major clutter (especially near Christmas) Short life span Poor color quality Poor buying procedures Also there is limited audience (few under 25 years old). 16. Is the strong intrusion value of television an advantage? Why or why not? The intrusion value of television is an advantage because by being able to prepare ads with catchy tunes, sexy content, or motion it can grab consumers attention. These consumers may not have paid attention to the ad otherwise, but the intrusion value may cause them to become interested in a product. 17. Name a product and three media that would mix well together to advertise that product. Defend your media mix choices. Student answers will vary. 18. What special challenges are present in media selection for businesses? What roles do gatekeepers play in creating those challenges? Special challenges that face media selection for businesses are that business-tobusiness ads often have a difficult time getting noticed, gatekeepers hinder the information flow to decision makers, and clutter is growing in business advertisements. Gatekeepers are a hindrance in the flow because of voice mail, secretaries, and other intermediaries that may keep the decision maker from being reached. 19. What special challenges are present in media selection for international advertising campaigns? What differences and similarities exist with U.S. media selection processes? Special challenges that are present in media selection for international advertising campaigns include television is not the dominant media in every country; cable TV, and satellites are growing; smaller subregions impact media preferences; and media buying behaviors are different. Also an awareness of the culture of the company must be in place to advertise in the correct manner. 174

16 CRITICAL THINKING EXERCISES Discussion Questions 1. To be effective, multiple media should be chosen and integrated carefully. Individuals who are exposed to advertisements on combinations of channels selected from television, radio, the Internet, and billboards will be more inclined to process the information than if only a solitary medium is used. Fill in the following chart. Put your probability of being exposed to an advertisement from each medium into the appropriate column. The percentages across each row should add up to 100%. This is an application exercise and student answers will vary widely. 2. Billboard advertising in Times Square is so popular that space has already been sold for ten years. Coca-Cola, General Motors, Samsung, Prudential, NBC, Budweiser, and the New York Times are paying rates in excess of $100,000 per month to hold these spaces. Inter City is building a 50-story hotel at Broadway and 47th Street. The building will accommodate 75,000 square feet of advertising. Even before the completion of the hotel or tower, companies including Federal Express, Apple Computers, AT&T, HBO, Levi Strauss, Morgan Stanley, and the Unites States Postal Service purchased space. Why would companies pay so much for outdoor advertising? What are the advantages and disadvantages of purchasing billboards at Times Square? Student discussions should note that companies pay these fees for the same reasons companies pay millions to advertise during the Super Bowl: many consumers will be reached at the same time. Additionally, the advertisement will be viewed many times by the same viewers (people who work in the area) and by new people all the time (tourists). The disadvantages include the cost and the lack of control over who views the ads. Many will not be interested in the company s products. Also, there is great competition, so all of the ads are very dramatic, making the impact of one single ad lower. 3. Repetition and a short, catchy name are the keys for an effective radio spot. Sports equipment retailer Fogdog.com has been very successful with its radio spots. The URL is easy to remember and is reinforced with the sound of a howling dog. People don t have to fumble with finding a pencil to write it down. After a few repetitions, they remember it. Another Web company, Sandbox.com, which is a fantasy sports game site, is looking to develop a radio and billboard campaign. Prepare a radio and a billboard advertisement that will catch people s attention and be easy to remember. What are the advantages of combining a radio campaign with billboards? This is a discussion question and student answers will vary. One of the advantages of combining a radio campaign with billboards is that their frequency will increase. A 175

17 consumer might hear the ad on the radio, then later see the billboard advertisement. Also, many sports are broadcast on the radio, and billboards are used to advertise teams and radio stations, so consumers expect the connection. Every time consumers are exposed to a message, it becomes more likely they will remember the company and its products. 4. Xerox offers a color printer that sells for $1,200 which they want to market to businesses. What media mix would you suggest for a $20 million advertising campaign? Justify your answer. Student discussions should suggest that Xerox use a media mix that reach the most viable consumers. Trade journals and business magazines that other businesses read are obvious outlets. The company could also focus on major newspapers such as The Wall Street Journal, Washington Post, or the New York Times, which have viewers that would purchase the product. To complete the mix, television ads may attract a wider clientele. INTEGRATED LEARNING EXERCISES 1. Pick either the table of cosmetics companies or the table of clothing companies listed below. Access each firm s Web site. Indicate how many advertisements you have seen in each of the media listed within the last month. Then discuss each company s media plan. Does the company project an integrated message? What target market does the Web site attract? Does the Web site convey the same message broadcast in the other media? Company (Web address) Estee Lauder Maybelline ( Sephora ( Clinique ( Revlon ( Cosmetics Companies TV Radio Newspaper Magazine Outdoor Internet Polo Clothing Companies 176

18 ( Pepe ( Squeeze ( Guess ( Lee ( Wrangler ( Student answers will vary by the sites they choose. 2. The table below provides the population of the top 10 Demographic Marketing Areas (DMAs). The target market for a particular company is yuppie boomers, or those 35 to 54 years old who are professionals or managers. Based on the percentage of adults in each DMA that fits the target market profile, calculate the size of the target market in each DMA. Washington has been completed for you. If you had funds to advertise in only five of the 10 DMAs, which five would you choose? Why? Number in DMA Population DMA Percent Target Market Washington 3,965, % 729,600 San Francisco- 4,824, Oakland Boston 4,495, Dallas Ft. Worth 3,669, Houston 3,251, New York 14,432, Chicago 6,483, Philadelphia 5,655, Los Angeles 11,391, A major supplier of media research information is Nielsen Media Research. Access its Web site at Go to the About Us section and then access the information available. Read What TV ratings really mean and summarize what TV ratings mean. From Ratings 101 determine how ratings are calculated. What other types of services does Nielsen Media offer? Ratings are calculated by dividing the number of televisions tuned to a specific program by total television households. Nielsen also calculates reach and frequency statistics. In addition, these statistics are provided for various ethnic groups. 4. In Canada, a valuable source of information is BBM Bureau of Measurement. Access this Web site at What type of information is available on the site? How can it be used to develop a media plan for Canada? The site, which is in both English and French, focuses on audience research. The 177

19 services are very similar to the Nielsen ratings. They include use of people meters, diaries, and a return-to-sample service. 5. Achieving advertising media objectives normally requires a blending of the various media within the advertising plan. Access Benchmark Communications at and examine the information that is provided in the site, especially about the traditional media of newspapers, radio, and television. What types of services does Benchmark Communications provide? How can Benchmark Communications assist in the development of a media plan? Benchmark offers a media buying service, business development and advertising programs, Internet marketing, website creation and design, and integration. The primary types of companies served by Benchmark include retail, travel, service, broadcasting and manufacturing in both Canada and the United States. 6. Two Web sites that are important for radio advertising are the Radio Advertising Bureau at and the top 100 radio sites at Access both sites. What information is available in each site? Discuss how the information can be used to develop an advertising plan using radio. Rab.com is for radio advertisers. The site offers articles on a wide variety of broadcasting topics, plus special insights for radio advertisers. The 100topradiosites.com site offers access to the top 100 radio stations. It is also a venue for musicians to reach audiences. 7. A major company for outdoor advertising is Lamar Advertising Company. Access its Web site at Access the outdoor component of the company and locate the rates for your area. What type of outdoor advertising is available? Access the transit component of their company. What services does Lamar offer? Local rates will vary by the area in which the student lives. The company offers a wide variety of standstill and moving billboards. Lamar also offers graphics programs and a real estate program which even includes antennas on billboards. 8. One of the best sources of information for business-to-business advertisers is Advertising Age s Net B2B Web site at What type of information is available at this Web site? How can it be used? What benefits would a business-to-business advertiser derive from the Web site? The departments include: news, advertising, business media, direct and database, vertical insight, net marketing, and opinions. The site provides articles and insights about various B2B marketing programs. 178

20 Student Project: Creative Corner The project assigns students to take a $10,000 gift from a donor and create an advertising program for a College of Business for university, focusing on traditional media selection. CASES Case 1 Mainstreaming Head Shaving (1) Discuss the concept of reach and frequency as they would apply to advertising The Headblade. Reach is the number of people, households, or businesses in a target audience that are exposed to a media vehicle or message schedule at least once during a given time period. Reach would not be terribly important for The Headblade, since so many households would not contain a head shaver. (2) Would the three-exposure hypothesis or recency theory best explain the purchase of The HeadBlade? A case can be made for either. Three exposures might build brand awareness enough to entice a shaver to give the product a try. Someone just deciding to shave, or someone looking for a better way to shave may only need one exposure, since interest in finding something would be heightened. (3) Which traditional media are best suited to advertising The Headblade? Which do not fit? A case can be made for any medium. Radio may be the least likely, since it contains no visual element. (4) Design a national and an international advertising program for The HeadBlade, identifying target markets and methods to reach them. Student answers will vary. Case 2 Opryland America (1) Which media should Mark use in advertising Opryland America? Defend your choices. Student answers will vary. Television is harder due to the number of new choices, however, the Travel Channel may be one option. Newspaper inserts could be used and include discount coupons. An Internet site would help, especially with a tie-in to bed and breakfast type places. Travel magazines are also a choice, depending on budget 179

21 and cost. (2) What should be the primary message sent out in Opryland's advertising? The show would somehow need to be differentiated from Branson-type shows. (3) Besides advertising, what else should Opryland do to bring back business and find new customers? Coupons, discounts, public relations events, and tie-ins with local attractions all should be considered. Bonus Case Creating a Photo Op Manuel Ortega was placed in charge of an advertising campaign for a new 35 mm camera. His company was going to compete directly with Nikon and Yashica. As the account manager, Manuel was given a $12 million budget for the first phase of the campaign, which was to run for 3 months. The objective of the campaign is to explain the firm s version of disk technology. Images recorded on computer disks rather than film are sharper and easier to use. The complexity in conveying the details of the new technology and the benefits to consumers makes the campaign more difficult. Manuel consulted carefully with his media planner, media buyer, and creative after receiving the contract from the company. They agreed to use magazine ads to be followed up with television spots. Part of their reasoning for choosing magazines was the profile of the target market for this particular type of camera. The company s research indicated that the target buyer is between 18 and 44 years of age, has completed at least 2 years of college, and has a family income in excess of $30,000. These individuals read magazines at home and 180

22 subscribe to most of the magazines they read. Manuel knew that individuals who subscribe to a magazine pay more attention to advertisements than do those who purchase the same magazine from a store. The other major characteristic of this group is that they have purchased a 35 mm camera in the past. The company believed those who had not purchased a 35 mm camera in the past were unlikely to buy into this new technology. The company believed that 20 million individuals in the United States fit the target market profile for the 35 mm camera, and 3.22 million of those individuals read National Geographic. Manuel explained to the company s leaders that by dividing the percentage of the total target market by those who read National Geographic, the yield is 16.1 percent. In other words, 16.1 percent of the target market for this camera reads National Geographic and would be exposed to an advertisement placed in the magazine. As shown in Table 8.9, the percent sign is dropped and the reach for National Geographic is listed simply as In the advertising industry, this number is the rating for that particular vehicle and can be obtained from commercial sources. Table 8.9 indicates that National Geographic and Time magazines have the largest ratings. Travel & Leisure and Southern Living have the smallest ratings. Two things explain the difference in ratings: (1) the size of the circulation of the various magazines and (2) the percentage of readers who fit the target audience. For example, the total circulation for National Geographic is 21,051,000 readers, compared to only 2,205,000 for Travel & Leisure. Not all readers of National Geographic fit the target profile for this 35 mm camera. In fact, only 15.3 percent of National Geographic s readers fit this profile compared to 20.8 percent of Travel & Leisure s readership. (Manuel calculated these percentages by multiplying the rating times 20, then dividing by the readership of the 181

23 magazine in millions.) TABLE Creating a Photo Op Case Study Cost for 4- Target Market (20 M) Color Total Full-Page Readership CPM Rating Cost per Rating Magazine Ad (000s) Total (Reach) Point (CPRP) National Geographic $ 346,080 21,051 $ $21,496 Newsweek 780,180 15, ,949 People 605,880 21, ,455 Southern Living 11,370 5, ,738 Sports Illustrated 965,940 13, ,994 Time 1,324,282 21, ,288 Travel & Leisure 183,216 2, ,659 U.S. News & World 100,740 8, ,137 Report 182

24 The advertising team decided that two primary factors would determine the reach of the campaign. First was the number and diversity of media being used. A media plan using the eight magazines would have a greater reach than a media plan using only five magazines. Notice that the total reach for the eight magazines is Thus, 77.1 percent of the target market for this 35 mm camera would be exposed at least once during the next 4-week time period to an advertisement. In addition to the quantity, the diversity of media will have an impact. Magazines that are different from each other tend to overlap less than magazines that are not different. Advertising only in sports magazines, for example, would overlap considerably because the same individuals probably read the various sports magazines. Reach measures the unduplicated percentage of a firm s target market exposed to an advertisement. Ads in media with nearly identical target markets do not reach as many people as advertising in vehicles with different target markets. (1) Use the information provided in the case the Table to develop the magazine media selection plan for the print advertising campaign for Manuel Ortega. Each magazine must have at least one advertisement insertion but no more than eight insertions. Use Table 9.10 to calculate the gross rating points for the magazine campaign and the total cost. As noted in the case, Manuel has a $12 million budget to work with. To illustrate how to calculate the gross rating points and total cost, the first magazine, National Geographic, has already been completed. The goal is to maximize the gross rating points although staying within the constraints of the $12 million budget. (Those who are familiar with linear programming can solve this problem using a linear program to maximize the gross rating points. It can also be solved using a spreadsheet and what-if analysis.) 183

25 Table Solution Magazine Cost Rating Insertions GRPs Total Cost National Geographic 346, ,768,640 Newsweek 780, ,560,360 People 605, ,241,160 Southern Living 11, ,960 Sports Illustrated 965, ,940 Time 1,324, ,324,282 Travel & Leisure 183, ,216 U.S. News 100, ,920 Total ,940,478 Students may have to use linear programming to obtain the optimal answer. (2) Justify the solution, especially in terms of frequencies chosen. The solution provided, is solved by linear programming, which was set to maximize the GRP s within the constraints given. (3) Is television a logical medium for the next phase of the campaign? Why or why not? If television would not be the best for the next phase, which medium would be best? This is a discussion question. Most students will probably say television would be a logical next step in the media plan because it reaches more consumers than just the magazines by themselves. Using these media would create greater frequency as well a higher reach. (4) If the client wanted to have a fully integrated communications media package, what package of media would be most likely to succeed? Explain the choices. Student answers will vary, but certainly magazines, television, and the Internet make sense. All have the capability to be highly creative and allow for providing details about the camera, which is important to persuading the target audience about the advantages of the digital camera versus the traditional camera. (5) For a long-term project, investigate similar costs for television and radio advertising in the local area. Construct a budget and develop a media-buying plan for each medium. Student answers will vary depending on cost of advertising in your area. Students should be encouraged to develop a table similar to the one in the case and use linear programming to obtain the optimal solution. 184