File 5
File 5
PROMOTIONAL
MANAGEMENT
CHAPTER 10
Insufficient Information
Some info cannot be measured
Some are expensive to measure
Time of measurement is a problem
Difficulty Measuring
Effectiveness
Measuring effectiveness of Ad and promotion
and media selection is critical as no perfect
recipe
Developing a Media Plan
2. 3. Media
1. Market Establishing Strategy
Analysis Media Development &
Objectives Implementation
The media mix
To whom we will analyze? Target market coverage
Index number
Geographic coverage
What internal & external factors may Scheduling
influence media plan? Reach and frequency
Brand Development Index (BDI) Recency
When & where we should focus our efforts? Creative aspects and
eographical consideration( sales may be stronger in one area than other,
so allocate ad expenditure according to that)
mood
Brand Development Index (BDI)– specific brand Flexibility
Category Development Index (CDI)– total product category
Budget
Market Analysis
To Whom Shall We
Advertise?
Index Number
Percentage of users
in a demographic segment
Index = X 100
Percentage of population
in the same segment
Market Analysis
Where Should We Advertise?
Reach 60 percent of the target audience at least three times over the same
six month period.
Scheduling
The primary objective of scheduling is to time promotional efforts
so that they will match with the highest potential buying times.
For some products, these times are not easy to identify, for others
they are very obvious.
Three Scheduling methods
1. Continuity schedules keep the brand exposed to consumers throughout the
year. So there is a continuous pattern of advertising, which may mean everyday,
every week or every month.
For example, advertising for goods consumed on a daily basis like food
products,
2. Flighting schedules employ a less regular schedule. It involves spending
money at just certain times of the year and with no advertising at other times.
For seasonal products, such as winter body lotion, snow removal equipment
etc.
3. Pulsing schedules is actually a combination of the first two methods. It
involves continuous advertising during the entire year with bursts of higher
intensity at specific times. For example, advertising of fruit juices, Tang during
Ramadan when some products are more consumed compared to the rest of the
year.
Three methods of promotional scheduling
Reach and frequency
Reach
Advertisers must decide whether to have the message be seen or
heard by more people
How much reach is necessary?
Achieving awareness requires reach that is exposing potential buyers
to the message. New brands or products require very high level of
reach, since the objective is to make all potential buyers aware of the
new entry. High reach is also desired at later stage of hierarchy. For
example, at the trial stage of adoption hierarchy, a promotional
strategy must use coupons or free samples.
The objective is to reach large number of people with these samples,
make them learn about the product, try and develop favorable
attitudes toward it, ultimately leading to purchase.
Reach and frequency
Cost per thousand (CPM): for years, the magazine industry had provided cost
breakdowns on the basis of cost per thousand people reached.