MIMC Lecture 6 HO

Lecture 6

• The IMC Plan re-visited

• Traditional Media Planning

• Budgeting

IMC Planning

• Situation analysis - covered in Lecture 2

• Objectives

• Strategies

• Tactics

• Action

• Control - covered in lecture 2

Marketing communications

objectives

• Must be linked to corporate and marketing

objectives!

• Must be measurable!

• Awareness, interest, desire, action, post

purchase resonance, loyalty

• SMARTT

• Measurability – how?

MIMC Lecture 6 HO

Communications objectives

• Category need

• Brand awareness

• Brand

knowledge/comprehension

• Brand attitude

• Brand purchase intention

• Purchase facilitation

• Purchase

• Satisfaction

• Brand loyalty

Awareness

Interest

Desire

Action

Loyalty/nudging

85% AWARENESS; 55% KNOWLEDGE; 20% POSITIVE ATTITUDE; 5% PURCHASE

CAMPAIGN LENGTH OF 12 MONTHS.

Strategies Communication strategy

• Generic

• Pre-emptive

• Unique selling proposition (USP)

• Brand image

• Positioning

• Resonance

• Affective

• Informational

• High involvement

• Low involvement

• Push/Pull/Profile

media strategy

The media planning process

Assess the communications environment

Describe the target audience

Set media objectives

Select the media mix

Buy media

De Pelsmacker et al

MIMC Lecture 6 HO

Assessing the communications

environment

• What is the competition doing?

– Category spending in the product category

– Share of voice

• Relative advertising spending of the competition

• SOV = Competition’s “advertising spend”

“total category spending”

• Share of market

– Media mix

Describe the target audience

• What is the media behaviour of the target

– Which media

– Which vehicles

– At what time

– Which days

This is indispensable information!

Media objectives

• Should be derived from the communications

objectives

• Should be concrete, measurable & realistic

• Should include specific characteristics

MIMC Lecture 6 HO

Trends in media • Classified as:

– Active and passive

– Print and electronic

– Paid, owned and earned

• All marketing communications must be carried

by some form of medium

• “Anything which acts as a vehicle for transmitting

comms from brand to target audience can be

classed as media”

• From single exposure media to multi-content

platforms

6 Main

media

Classes

Type of media

“Anything capable of

Carrying a message”

Vehicles which are selected to carry

an advertisers message

Broadcast Television

Radio

ITV, Big Brother, X Factor

Virgin 1215, Classic FM

Print Newspapers

Magazines (consumer)

Business

Sunday Times

Cosmopolitan

The Grocer

Outdoor Billboards,

Transit

48 & 96 sheet

Taxis, buses

In-store Point of purchase

Packaging

Bins, signs, displays

Crisp wrapper design

Other Cinema

Exhibitions

Product placement

Ambient, WOM

Guerrilla

Pearl & Dean

Ideal home

Films, TV, Books

Litter bins, uniforms, people

Fly posting

New media Internet

Digital TV

CD-ROM

Web sites

Teletext

Music, educational

Blending personal & mass media -

consumer media use

Traditional media consumption = straightforward patterns of behaviour.

Media research focused on the size and composition of audiences.

Media devices and user controls has made media consumption far more

complicated and nuanced.

Note the blending of personal and mass media.

While mass and direct media, have long been commercialized, personal

media such as telephone and personal written communications have not.

The digitization of personal media as e-mail, wireless phones and instant

messaging provides opportunities for advertisers to attach messages to

personal communications.

MIMC Lecture 6 HO

The existing bedrock of modern advertising

& media planning

• Audiences can be aggregated into monolithic entities with homogenous tastes (Napoli 2003).

• Advertising can attach itself to media content and project itself onto audiences by interrupting the delivery of that content (Malthouse, Calder, and Tamhane 2007).

• Consumers will accept the intrusive delivery of commercial messages in exchange for free, or nearly free, content (Moorman, Neijens, and Smit 2005).

• Brand messages generate brand awareness and preferences that translate, however loosely, into consumer spending (Tellis 2005).

• Brand communications can be bundled into media plans that span multiple vehicles which constitute a relevant array of exposures to target consumers (Lee and Park 2007).

• This will all change … (see Mulhern 2009 paper)

The new bedrock

• “The Internet replaces this industrial era model of

communication with a networked information system that

has as its bedrock a set of properties that look more like

an open, free marketplace than the centrally controlled,

top-down rigid one of mass communications”. Mulhern 2009

The new bedrock

• “The Internet replaces this industrial era model of

communication with a networked information system that

has as its bedrock a set of properties that look more like

an open, free marketplace than the centrally controlled,

top-down rigid one of mass communications”. Mulhern 2009

Characteristics

Media

Objectives

Frequency

Reach Cost

Weight Continuity

De Pelsmacker et al

MIMC Lecture 6 HO

Characteristics -Frequency

• “How many times a

consumer of the target

group, on average, is

expected to be exposed

to the message within a

specified time period”

• Target groups

• Media

• Media Vehicles

Tool box (example)

•Mintel

•Acorn

•BARB TV

•NRS Newspapers

& Magazines

•TGI

•JICREG

•RAJAR Radio

•NMR

•ATLAS – on line

•BBS B2B

•POSTAR

Characteristics - Reach

• “The number or percentage of people who are expected to be exposed to the advertiser’s message during a specified period”

• GRP – gross rating points (Reach x

Frequency) Nielsen US TV

Characteristics - Weight

• The weight of a

campaign is typically

expressed as GRPs.

• OTS – opportunities

to see

• Effective reach

Exposures

1

2

3*

4

5

6

7

Reach

20.0%

16.0%

11.5%

6.0%

3.5%

1.8%

1.2%

Reach and frequency distribution

MIMC Lecture 6 HO

Characteristics - Continuity

• Continuous schedule

• Pulsing schedule -drip

• Flighting schedule burst

Characteristics - Cost

• The cost of a medium is usually expressed as

the cost per thousand

• CPT or CPM (Roman numeral M for 1,000)

– CPM = cost of the medium X 1,000

Total reach

• CPT-TM cost per 1,000 of the target group

– CPT-TM = Cost of the medium X1,000

(Useful) reach

MIMC Lecture 6 HO

Global Adspend Trends, 2014 (f) Year-on-Year % Change, PPPs (Current Prices)

Source: Warc, International Ad Forecast 2013/14 (April 2013).

www.warc.com

Year TV Radio Internet News

papers Mags Cinema Notes

China 2013 2.80 6.85 3.25 – – 0.90 TGI China

(CNRS)

China 2012 3.24 5.96 2.37 – – 0.61 www.sinomonitor.

com

China 2011 – 6.50 – – – 0.56 2010 onwards:

Great Britain 2013 23.20 8.65 13.40 3.87 2.94 0.47 TGI Great Britain

Great Britain 2012 23.40 8.83 14.20 4.01 3.06 0.52 www.bmrb-

tgi.co.uk

Great Britain 2011 24.20 9.19 – 4.44 3.26 0.44

USA 2013 – 1.2** 4.45*** – – – National

Consumer

Survey

USA 2012 – – – – – – www.smrb.com

USA 2011 – – – – – –

Note: Data will vary by market from year to year.

The following definitions apply unless otherwise stated:

TV = average hours viewed per week Radio = average hours listened per week Internet = average hours spent last month

© TGI Newspapers = average number read in last 7 days Magazines = average number read last month Cinema = average number of visits last month

Consumer Survey 2014: Average media use (hours)

Q: ‘How many hours do you spend doing X on a typical day?’

Time spent by medium by age, Q4 2012

No. of hours, based on 31 markets

Source: GlobalWebIndex, Global Media Consumption: The Digital Reality, March 2013

Extracted from Adstats: Global media consumption

Media trends

MIMC Lecture 6 HO

Multi-tasking while watching TV, Q4 2012

Media trends

% of respondents, based on 31 markets

Source: GlobalWebIndex, Global Media Consumption: The Digital Reality, March 2013

Extracted from Adstats: Global media consumption

Q: ‘Which of the following devices have you used while watching TV?’

Online activity while watching TV, Q4 2012

Media trends

% of respondents, based on 31 markets

Source: GlobalWebIndex, Global Media Consumption: The Digital Reality, March 2013

Extracted from Adstats: Global media consumption

Q: ‘The last time you were watching TV and using the internet, which of the following did you do?’

Device ownership: Cross-screen engagement study 2014

MIMC Lecture 6 HO

Selecting media

• The different media should be evaluated:

• Quantitative e.g.= Reach, frequency, selectivity,

geographic flexibility, speed of reach (delayed or not?)

message life, seasonal influence.

• Qualitative e.g.= image- building capability,

emotional impact, quality of reproduction, demonstration

capability

• Technical criteria = Production cost, media buying

characteristics, media availability

Traditional media options

Broadcast: TV & Radio

Print: Newspapers, Magazines (consumer & business)

Outdoor: Billboards, Street furniture & Transit

Digital: Internet, Digital TV & CD-Rom

In-store: POP & Packaging

Other: Cinema, Exhibitions, Product Placement,

Ambient, Guerrilla (fly posting)

Obama “change” campaign Media type Numbers

Email 13m on email list; received 7000 variations of > 1b emails

Donors 3m online donors who contributed 6.5m times

Social websites 5m “friends” on > 15 social networking sites; 3m friends on

Facebook alone

Website 8.5m monthly visits to myBarackObama.com

2m profiles with 400,000 blog posts

35,000 volunteer groups that held 200,000 offline events

700,000 fundraising hubs that raised $30m

Video Nearly 2000 official YouTube videos viewed > 80m times

442,000 user-generated videos on YouTube

Mobile 3m people signed up for the text-messaging programme,

each receiving 5-20 monthly messages

Phone calls 3m personal calls made in the last 3 days before election

Edelman 2009

MIMC Lecture 6 HO

The Marcoms budget

Historical Method •Common budgeting method. •May be based on last year’s with a percentage increase. •Nothing to do with advertising objectives

Percentage of

Sales

•Compares total sales with the total advertising (or marketing communication) budget during a previous time period to compute a percentage.

All you can

afford

•Allocates whatever is left over to advertising. •Companies who use this don’t value advertising very much.

Competitive

method

•Relates the amount invested in advertising to the brand’s share of market. •“Share of Voice”

Task-objective

Method (top-

down, bottom-

up)

•Most common method. •Looks at objectives set for each activity, and determines the cost of accomplishing each objective.

Top-Down v Bottom-Up

Budgeting

Top Management sets

the spending limits

Total promotion budget is

approved by top management

Promotion budget set to

stay within spending limit

Promotion objectives

are set

Activities needed to achieve

objectives are planned

Costs of promotion

activities are budgeted

SOSTAC

• Tactics - which creative solution, with

which media and when?

• Action (3Ms) Men and Women, Money

and Minutes.

• Use a Gantt chart

• Control - how will you measure the

effectiveness of your recommendations?

MIMC Lecture 6 HO

Gantt Chart

Tactical timings of comms tools

Jan Feb Mar Apr May Jun £ Adv

TV

Press

Sales Prom

Sample

Competition

Direct Mktg

Mailshots

Telesales

PR

Sponsorship

Packaging

WOM

Gantt Chart Action plan for a mail shot Wk1 Wk2 Wk3 Wk4 Wk5 Wk11 Wk12

Creative

brief X

List brief X List

proposal X

Visual

concepts X

Visuals

agreed X

Final copy

design X

Mail

house

delivery

X

Mail X