INSTRUCTORS MANUAL FOR Advertising Media Planning A Brand Management Approach, 3e Larry Kelley, Donald Jugenheimer, Kim Bartel Sheehan
INSTRUCTORS MANUAL FOR Advertising Media Planning A Brand Management Approach, 3e Larry Kelley, Donald Jugenheimer, Kim Bartel Sheehan
Instructor’s Manual Advertising Media Planning: A Brand Management Approach, 3rd edition Chapter 1. The Role of Communication in Advertising and Marketing •
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Advertising is part of the Marketing Communications. Marketers break up the Marketing mix into the four Cs (Commodity, Cost, Channel, and Communication). These four elements are analogous to the four Ps Reasons advertising media are critical to the success of your advertising — Advertising makes up most of the advertising budget (80–85 percent). — A good media plan can ensure that the message reaches the right people at the right time and in the right mood. — The message may be the most interesting part, but the media plan ensures the message’s success. — Media are critical to the success of the brand. — Executives do not understand media, but want to see their advertising running in the media. — Media support product positioning; the positioning is meaningless without advertising media support. — Media are changing. Dialogue-based messaging is replacing push-based messaging. As media outlets are consolidated, user-generated media is a collective response to perceived media control. Media effectiveness is increasingly judged by how consumers use media, and how susceptible they are to a message. Media are also judged based on return on investment, and the lift that each medium and vehicle gives to incremental brand sales. Media inefficiency can result from excessive media overlap, frequency, and waste. Media planning can help advertising media planners avoid these inefficiencies by achieving the correct levels of exposure. Advertising media planners need to navigate an evolving media environment in which print media shares have been shrinking and digital, social media growing.
Sample Questions 1. 2.
True or False: The message (including the theme, headlines, visuals, and copy) determines the success of an advertising campaign. True or False: The difference between the executive’s perspective of the advertising plan and the advertising media planner’s perspective of the advertising plan is that the executive may not understand media, but wants to see the ad running.
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True or False: Advertising support is superfluous to product positioning; a product is positioned by consumer response regardless of an advertisement. How has the consolidation of media outlets led to the rise of consumer-generated media? True or False: Twitter, Facebook, and blogs, whereby consumers provide feedback to advertisers, represent push-based media. True or False: Media efficiency is primarily determined by getting the best price for your advertising.
Answers 1. 2. 3. 4. 5. 6.
False True False As media outlets are consolidated, user-generated media is a collective response to perceived media control. False False
Chapter 2. Outlining the Components of a Communication Plan •
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The difference between a communication plan and a media plan is the approach to solving the marketing problem. In the latter, the advertising is the solution, in the former, the advertising media is one of many alternatives to solve the problem. A communication plan considers the array of communication mix options. A communication plan should be strategy neutral—it doesn’t assume one communication method is better than another when planning. A communication plan features the following elements: — Executive Summary: How communication is tied to the business goals of a brand. — Situation Analysis: The context for the plan, including a SWOT analysis. — Marketing Objectives/Strategies, including business and brand objectives. — Role of Communication: How communication will solve the problem. — Communication Objectives: Target market, geography, season/timing, reach/frequency/continuity. — Communication strategies, including the communication mix and scheduling. — Communication tactics: Address each media vehicle. — Communication Budget: Recap of the dollars by channel and by month. — Communication Flowchart. — Testing and Evaluation to show how the increase in media pressure might impact the market and solve the problem.
Sample Questions 1.
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What is the difference between an advertising media plan and a communication plan? a. In a communication plan, advertising is the solution. b. In a media plan, the advertising media is one of the many alternatives. c. It depends on the marketing problem. True or False: All communication plans derive from a marketing strategy. Is setting objectives around the number of customers and sales an example of business objectives or brand objectives? What are the “Big Four” communication objectives? Name three communication components you would analyze against competing brands in the situation analysis section.
Answers 1. 2. 3. 4. 5.
C False Business objectives (1) Target market, (2) geography, (3) season/timing, (4) reach/frequency/continuity Pricing, distribution, resources, and product differentiation.
Chapter 3. How Marketing Objectives Impact Communication Planning • • • • •
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An advertising media plan does not begin until you have first established objectives. Objectives may be divided into marketing, communication, advertising, and media categories, and should be developed in that order. A contingency plan should be developed after the media plan has been completed, and is an alternative plan and allows for transfers among media choices. Media planning should answer questions on what types of people to target or the best locations in which to market. In media planning, you start with your point of origin, your situation analysis, and then you set up your objectives. Afterwards, you work backward from your objectives to identify what is needed to meet your goals. The stages in media planning include objectives and goals first, then strategies (or how to achieve your goals), and finally, tactics by which you implement your plans. Advertising media are strategies, or ways for reaching media goals. Do not establish goals to use certain media. Good objectives determine where you want to go with your efforts. Good objectives use the infinitive form of a verb, are quantifiable, and are consistent with other goals.
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In the best-case scenario, both the advertising message and the advertising media will be developed concurrently, so that each can draw on the capabilities of the other.
Sample Questions 1.
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Gordon’s Gumbo, a start-up company in the Gulf Coast region, is looking to gain brand recognition as a unique alternative to soup. Which of the following should Gordon’s Gumbo do first in their planning efforts: a. Identify primary locations for billboards; b. Choose between using a street-team guerrilla marketing approach or exposure in local broadcast media; c. Identify the market entry point and establish marketing objectives for brand recognition and sales goals. Which should come first, development of the advertising message or selection of the advertising media? What is the difference between a contingency plan and a reserve fund? True or False: In the research phase of your communication planning, you should include such questions as what advertising media should we use in the upcoming campaign? Matador Media has decided to use Hulu as an outlet for raising awareness for its clients’ campaigns. This is an example of: a. An objective b. A strategy c. A tactic
Answers 1. 2. 3. 4. 5.
C Neither, both should be developed together. A contingency plan is an alternative to the plan; a reserve fund is part of the advertising budget set aside for emergencies. False B
Chapter 4. Working with a Situation Analysis •
A SWOT analysis is an assessment of the Strengths, Weaknesses, Opportunities, and Threats facing a brand. Strengths and weaknesses are internal. Opportunities and threats are external.
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A SWOT analysis must begin with a goal in mind, and should feature both marketing and communication elements that can impact the brand. Consumer trends and the consumer’s viewpoint of the brand should also be considered.
Sample Questions 1. 2. 3.
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What is the difference between a strength and an opportunity in a SWOT? What is the difference between a weakness and a threat in a SWOT? Writer’s Inc, a media firm, conducted a SWOT for a client that sells trophies and awards for juvenile sports leagues, and found there is a need for an awards-based company among sports leagues in a neighboring State. This represents a(n): a. Strength b. Weakness c. Opportunity d. Threat True or False: In developing a SWOT for an IMC plan, you should identify consumer trends that impact the brand. If Pepsi increases its marketing budget by 50 percent, that could negatively impact Coke. This is an example of a(n) __________ for Coke. a. Weakness b. Threat c. Strength d. Opportunity
Answers 1. 2. 3. 4. 5.
A strength is internal; an opportunity is external. A weakness is internal; a threat is external. C True B
Chapter 5. Defining the Target Audience • • •
Defining the target market and audience are the most important elements in building an effective media plan. A target market refers to the geographic market. A target audience refers to the media audience of a campaign. The best place to begin to define the target is with the behavior you want to change.
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It is important to remember that not every target group can be reached in its entirety by media. There are multiple ways to define a target audience: — Consumption, or the extent of usage (i.e., heavy users vs. light users). You should analyze usage by brand influences and category influences, as well as the gap between competitive brands. — Lifestyle and life stage. Lifestyle segmentation may include where audiences live and how affluent they are. Life stage segmentation is dictated by age and life situation. — Generations, or the way in which consumers are connected not only by age but by various milestones and periods of time. Some unifying characteristics include music, fads, inventions, politics, and social movements. Generation segmentation is effective via the emotional and historical linkage between audiences. — Behavioral targeting, or how members behave and their activities toward the brand and outside of the brand’s context. The brand should be considered based on the influences on the actual purchaser of the product. In the retail and service area, an employee exerts a huge influence and is key to customer satisfaction. There are two main assumptions of ethnic diversity and media use. On the one hand, ethnic audiences attend to general market media. On the other, they use media tailored to their specific culture. Two ways to plan for ethnic diversity in a media plan are: 1 a brand manager determines what percentage of the ethnic population is underdelivered by the general market media and make up that difference in ethic media, and 2. a brand manager determines what ethnic group to target and chooses media appropriately. You should assess the cost impact of your target audience decision, and recognize that though harder to reach groups cost more, some media are designed to reach a narrow audience.
Sample Questions 1. 2. 3. 4.
What is the difference between a target market and a target audience? In the purchase of children’s products (i.e., toys, video games, and breakfast cereal), who might be the most appropriate “influencer” of a brand purchase decision, and why? True or False: The Pareto principle for heavy-users of your brand is that 20 percent of your product is consumed by 80 percent of your audience. Targeting an audience based on those who remember Ronald Reagan declaring “Mr. Gorbachev, tear down that wall” is an example of:
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a. Behavior targeting b. Influencer targeting c. Generational targeting d. Geographic targeting True or False: An employee may be excluded from consideration as a brand influencer.
Answers 1. 2. 3. 4. 5.
A target market refers to the geographic market. A target audience refers to the media audience of a campaign. Children, because they influence their parents to purchase. False C False
Chapter 6. Geography’s Role in Planning •
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One of the most common problems a brand manager faces is matching up marketing areas to media planning geography. Geographic planning should start with understanding market-area definitions, then an analysis of the brand’s strengths and weaknesses, and how to treat different market groups. Media planners use the following geographic units: — Designated Market Area (DMA): A group of counties that get the majority of their television viewing from the same home market. — Metropolitan Statistical Area (MSA): A metropolitan region designated by the U.S. Census. — Nielsen panel data or IRI data to analyze sales information. — Your store’s trading area, or the area in which your customers live and work. The difference between business marketing and consumer marketing is that the decision process can involve more than one market. For example, a brand manager may have to develop a different strategy for users of the service vs. those living around the corporate headquarters. Geography may be analyzed by two factors: brand development index (BDI), which tells how strong a market’s sales are in relation to its population size, and category development index (CDI), or the percentage of a category sales compared to the percentage of the population. — CDI is a measure of potential, BDI is a measure of brand strength. — Brand opportunity index (BOI) may be calculated by dividing the CDI by the BDI. Advertising has the best opportunity to grow a brand where it has a strong BOI.
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Distribution may be considered using the all commodity volume (ACV), or the percentage of the distribution channel in which the brand is available. Distribution may be further analyzed by doing a sales-per-distribution-point analysis, which looks at the sales-velocity-per-distribution percentage. Television can be purchased on a DMA basis locally, or on a network television basis nationally. Cable television can be purchased locally, nationally, or regionally. Radio airtime is often purchased on an MSA basis. The rule of thumb for calculating when television becomes more cost efficient than buying spot television is when the brand is available in approximately 2/3 of the states of the United States.
Sample Questions 1. 2. 3.
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What is the difference between a DMA and an MSA? Calculate the BDI for a brand that has 5 percent of its sales in city that has 3 percent of the population of the United States. Let’s say Brand A has a CDI of 120 but a BDI of 80 in Chicago, and a CDI of 120 and BDI of 150 BDI in Boston. Calculate the BOI to determine whether the best opportunity for brand development is in Chicago or Boston. Which one of the following is most likely to use a sales-per-trading-area analysis for evaluation? a. Gordon’s Gumbo, a restaurant with multiple locations throughout the New Orleans area b. Rocky’s Raccoons, an online taxidermy distributor that operates primarily as an Amazon.com merchant True or False: Cable is more efficient than broadcast television on a local basis.
Answers 1. 2. 3. 4. 5.
DMA is a group of counties that get the majority of their television viewing from the same home market. MSA is a metropolitan region designated by the U.S. Census. 166.67 or 167 150 vs. 80: Chicago A False
Chapter 7. Seasonality and Timing
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Advertising commonly divides the year into quarters, and each quarter is considered 13 weeks long. The highest levels of competitive advertising come in the fourth quarter, even though consumers’ media usage goes up during the first quarter. Consumer purchasing is often affected by weather, day of the week, or time of day. Advertising media scheduling is also based on consumer susceptibility of a message at specific times, flexibility in your media buys allowing for quick tactical changes in media placements, your advertising budget, and your share of advertising vis-à-vis your competitors. Determining when your advertising waves should run depends on the purchase cycle of your brand, the likelihood of brand-switching by customers, the anticipated levels of competitive activities, and the life cycle of your brand and product category. Your advertising can induce an “irritation factor” which is a negative reaction to a surplus of advertising. Political windows, or the time preceding primary elections, can impact the availability of advertising, and can keep an ad from running as scheduled. Negotiating media costs during political time periods is also limited.
Sample Questions 1.
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Joshua’s Jamas, a direct distributor of adult pajamas, would like to reach as much of its audience with the least competition from competitors and during the most appropriate season. The company has determined that the first and fourth quarters of the year are equally the most appropriate in terms of seasonality. Considering their other goals, which quarter should they choose to “heavy up” on advertising and why? That customers in the Gulf Coast are more likely to purchase emergency preparedness products during the Hurricane months is an example of: a. Flexibility b. Susceptibility c. Competitive advertising waves True or False: It is best to advertise as much as possible to reach your audience, even if that means scheduling more than enough advertisements to exceed the irritation threshold in most markets. Why is negotiating lower advertising costs difficult during political windows? Why is flexibility important during political windows?
Answers 1. 2. 3.
First quarter, because all other things equal, it has the least competition. B False
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Because political ads, which get precedent, limit how much a media outlet can make on an advertisement, and so they will be less likely to lower costs. Because political ads take precedence.
Chapter 8. Competitive Analysis: Implications in Planning • •
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Contingency plans allow brands to react quickly to competitive threats. Though a SWOT may be quick and effective in conducting a competitive analysis, other tools include: — Share of spending (SOS): How much your brand spends in relation to your competitors expressed as a percentage of total dollars spent in a category. — Share of voice (SOV): Actual impressions delivered as a percentage of the total category impressions, taking into account the delivery for each medium. After determining SOS or SOV, Share of Market (SOM) is determined by dividing the market share into the share of spending. Media strategy may be developed using competitive spending analysis, in which a brand manager will determine which media outlets the brand has the best opportunity to stand out from competitors. Advertising-to-Sales Ratios are calculated by dividing the total advertising expenditures by the total amount of brand sales, or revenue. A trend-line analysis allows the brand manager to see the rate of spending over time, and can be compared to sales growth in the category to determine the vitality of the category. Marketing mix modeling is a statistical process of combining robust consumer data into a multivariate statistical analysis of influences on spending to determine what aspects of the marketing mix are most effective.
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Reports that offer quick and current data on a competitor’s broadcast advertising is known as: a. A topline report b. An impression report c. A marketing mix model What is the difference between Share of Voice and Share of Spending? Parker’s Apparel, a fashion designer, wants to determine whether it should increase advertising spending, or maintain its spending levels. The brand has a 30 percent market share with a 15 percent share of category spending. Based on these numbers, should they increase spending or maintain the current ratio? True or False: Like other media, estimated costs and scheduling for a given competitor can be determined for Search Engine Marketing (SEM).