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Second level
A Seminar by: ● Third level

ØNISHE N.P ● Fourth level

ØNOUSHAD ALI ● Fifth level

Students, S5 MBA (Evening)


Calicut University Study Centre,
Calicut

Advertising
Media Planning &
Campaign Planning
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Second level
● Third level

● Fourth level

● Fifth level

Advertising
Advertising - Definitions
Advertising:
Is paid, non-personal communication
through various media by business firms,
nonprofit organizations, and individuals who
are in some way identified in the advertising
message and who hope to inform or
persuade members of a particular audience;
includes communication of products,
services, institutions, and ideas.
Advertising - Definitions
Advertising:
1. consists of all the activities involved in
presenting to a group, a no-personal, oral
or visual, openly sponsored message
regarding product services or idea, this
message called advertisement, is
disseminated through one or more media
and is paid for by an identified sponsor –
William J.Stanton
Advertising - Definitions
Advertising:
2. is causing to know, to remember, to do –
Wood
3. is any form of paid non-personal
presentation of ideas, goods or services for
the purpose of inducing people to buy –
Weeler
4. is a paid form of non-personal
presentation of ideas, goods or services by
an identified sponsor – Ricard Burkirk
Institutional Advertising
Institutional advertising:
Is a type of advertising in which the
retailer attempts to gain long-term benefits
by promoting and selling the store itself
rather than the merchandise in the store.
Possible Promotion Objectives in Retailing
Sales promotion
Sales promotion:
Involves the use of media and non-media
marketing pressure applied for a
predetermined, limited period of time at the
level of consumer, retailer, or wholesaler in
order to stimulate trial, increase consumer
demand, or improve product availability.
Promotional advertising:

Promotional advertising:
Is a type of advertising in which the
retailer attempts to increase short-term
performance by using product availability or
price as a selling point.
Functions of advertising: Primary
§ To increase sales
§ To induce new buyers
§ Persuasion of channel members to stock the
goods
§ To increase per capita consumption by consistent
repetition
§ To increase the receptiveness of the product
§ Creates insurance for manufacturer’s product
Functions of advertising: Primary
§ To even out seasonal fluctuations in
demand
§ To create brand images and brand loyalty
§ To increase standard of living by inducing
to buy better quality products
Functions of advertising:
Secondary
§ To assist salesmen to face customers with
confidence
§ To provide information to all stakeholders
§ To create a feeling of pride among
executives and workmen of the company
§ To create feeling of safety among
customers
§ To create feeling of security among
employees
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Second level
● Third level

● Fourth level

● Fifth level

Campaign Planning
What is an Advertising Campaign

Webster:
ü “ a series of planned actions”
• Ads develop points around a single
primary appeal and together form a
campaign
Steps in Planning a Retail Advertising
Campaign
Selecting Advertising Objectives
Budgeting for the Campaign
Designing the Message
Media Alternatives
Media Selection
Scheduling of Advertising/ Defining Segments and
Positioning
Evaluating the Results
Steps in Planning a Retail Advertising
Campaign
Affordable Method
Is a technique for budgeting advertising in
which all the money a retailer can afford to
spend on advertising in a given time period
becomes the advertising budget.
Steps in Planning a Retail Advertising
Campaign
Percentage-of-sales method:
Is a technique for budgeting in which the
retailer targets a specific percentage of
forecasted sales as the advertising budget.
Advertising as Percentage of Sales by Line of Trade

LO 3
Steps in Planning a Retail Advertising
Campaign
Task and objective method:
Is a technique for budgeting in which the
retailer establishes its advertising objectives
and then determines the advertising tasks
that need to be performed to achieve those
objectives.
Steps in Planning a Retail Advertising
Campaign
Horizontal cooperative advertising:
Occurs when two or more retailers band
together to share the cost of advertising
usually in the form of a joint promotion of an
event or sale that would benefit both parties.
Steps in Planning a Retail Advertising
Campaign
Vertical cooperative advertising:
Occurs when the retailer and other
channel members (usually manufacturers)
share the advertising budget. Usually the
manufacturer subsidizes some of the
retailer’s advertising that features the
manufacturer’s brands.
Media Alternatives

o
Newspaper Advertising
o
Television Advertising
o
Radio Advertising
o
Magazine Advertising
o
Direct Mail
o
Internet
o
Miscellaneous Media
Steps in Planning a Retail Advertising
Campaign - Scheduling
Coverage:
Is the theoretical maximum number of
consumers in the retailer’s target market
that can be reached by a medium and not
the number actually reached.
Steps in Planning a Retail Advertising
Campaign - Scheduling
Reach:
Is the actual total number of target
customers who come into contact with an
advertising message.
Steps in Planning a Retail Advertising
Campaign - Scheduling
Cumulative reach:
Is the reach that is achieved over a period
of time.
Steps in Planning a Retail Advertising
Campaign -Scheduling
Frequency:
Is the average number of times each
person who is reached is exposed to an
advertisement during a given time period.
Steps in Planning a Retail Advertising
Campaign - Evaluation
Cost per thousand method (CPM)
Is a technique used to evaluate
advertisements in different media based on
cost. The cost per thousand is the cost of
the advertisement divided by the number of
people viewing it, which is then multiplied by
1,000.
Steps in Planning a Retail Advertising
Campaign - Evaluation
Cost per thousand – target market (CPM-TM)
Is a technique used to evaluate advertisements
in different media based on cost. The cost per
thousand per target market is the cost of the
advertisement divided by the number of people in
the target market viewing it, which is then
multiplied by 1,000.
Steps in Planning a Retail Advertising
Campaign - Evaluation
Impact:
Refers to how strong an impression an
advertisement makes and how well it
ultimately leads to a purchase.
Steps in Planning a Retail Advertising
Campaign - Evaluation
Advertising effectiveness:
Is the extent to which the advertising has
produced the result desired.
Steps in Planning a Retail Advertising
Campaign - Evaluation
Advertising efficiency:
Is concerned with whether the advertising
result was achieved with the minimum
financial expenditure.
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Second level
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Media Planning
The Media Plan Must Accomplish Three Things

It must find a combination of media that:

Communicates the message in the most


effective manner,

To the largest number of potential customers,

At the lowest cost.


Media Terminology
The process of determining media
Media objectives and strategies
A series of decisions thatdelivery
involving the show
Planning how
of advertising
messages time and space can
to audiences
best deliver the advertising message
Media The specific
Goals to be attained
goals an by
advertiser
the media
hasstrategy
for the
Objectives and program
media portion of the advertising program

Media Plans of action


Decisions on how
forthe
achieving
media objectives
stated media
can
Strategy be attained
objectives

The general category of media that are


The various categories of delivery systems,
Media Class available for communicating with a target
including broadcast and print media
audience
The specific program, station, publication or
Media
promotional piece used to carry an
Vehicle
advertising message.
The Media Plan

The media plan is a document that outlines


media objectives and media strategies.
It includes:
Media Objectives
Media Mix Recommendations
Media Vehicle Recommendations
Scheduling Pattern
Budget Breakdown
Media Planning Decisions

To whom do we advertise?
Where do we advertise?
When do we advertise?
In which media should we advertise?
To Whom Do We Advertise? (Target Audience)

The media planner must match the target market of the


advertised product with users of specific media.

Use syndicated data to identify the best media to use


Examples – Simmons Market Research Bureau and
Mediamark Research Inc. (provides data on audience size
and composition for various magazines, newspapers, cable
and network TV shows, and internet sites)

Examine rate cards and media kit information

Examine editorial content of media alternatives


Where Do We Advertise? (Geographic Area)

The planner must identify each geographic market to be


advertised in and allocate a sum of dollars to each.
What variables should be considered?
Brand Development Index
Category Development Index
BDI and CDI measure the sales strength of a particular
brand (or product category) within a specific market
relative to its sales strength in the U.S. as a whole.
Brand Analysis

Brand Development Index

% of a brand’s U.S. sales


coming from a market area
BDI = X 100
% of U.S. population
coming from a market area
Category Analysis

Category Development Index

% of a product category’s U.S.


sales coming from a market area
CDI = X 100
% of U.S. population
coming from a market area
Brand and Category Analysis
High BDI Low BDI

The market usually The product category shows


High CDI

represents good sales high potential but the brand


potential for both the isn’t doing well; the reason
product and the brand. should be determined.

The category isn’t selling Both the product category


well but the brand is; may and the brand are doing
Low CDI

be a good market in which poorly; not likely to be a


to advertise but should be good place to advertise.
monitored for sales decline.
When Do We Advertise? (Scheduling)

Seasonal timing
Holiday timing
Days-of-the-week timing
Hours-of-the-day timing
Other factors – frequency objectives,
budget, publication frequency
Three Scheduling Methods

Continuity

Flighting

Pulsing

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
When Do We Advertise? (Scheduling)
In Which Media Classes Should We Advertise?

Target audience media usage habits


Selectivity – must consider geographic and class
selectivity
Lead Time – the amount of time a medium requires
before the advertisement will be run
Creative Aspects – how well the medium supports
the message appeal and style
Longevity – how long the ad message will last
Cost – must consider absolute and relative costs
Determining Relative Cost of Media-Print

Cost per thousand (CPM)

Cost of ad space
CPM = (absolute cost) X 1,000
Circulation
Calculating CPM Based on the Target Audience

Time Newsweek

Per page cost Rs.234,000 Rs.210,000


Circulation 4.0 million 3.1 million

Calculation of CPM 234,000 x 1,000 210,000 x 1000


4,000,000 3,100,000

CPM Rs.58.5 Rs.67.74


Determining Relative Cost of Media-Broadcast

Cost per rating point (CPRP)

Cost of commercial time


CPRP = Program rating
Audience Measures Used in Media Planning

Reach – the percentage of different homes or people


exposed to a media vehicle or vehicles at least once during
a specified period of time.
Average Frequency – the average number of times the
reached audience is exposed to the media vehicle during a
specified period of time.
Gross Rating Points – a summary measure that combines
the program rating and the average number of times the
home or person is reached during a specified period of
time.
Reach x Average Frequency = Gross Rating Points
Setting Reach and Frequency Objectives

Recognize a trade off between reach and


frequency given a limited budget
How much reach? Depends on PLC stage,
competition, promotions considered, budget.
Conventional wisdom says between 50 and 100
percent.
How much frequency? Conventional wisdom says
between 3 and 10 exposures during a brand
purchase cycle.
REFERENCES

Belch, George A & Belch, Michael A: Advertising


and Sales Promotion, Tata McGraw Hill India, New
Delhi, 2004
Subrato Sengupta: Brand Positioning, Strategies
for Competitive Advantages, Tata McGraw Hill,
New Delhi, 1990
Thanks to
qDr. Vinod, the

honorable Faculty
Member
qAll of our friends who

have been our unending


source of inspiration

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