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Chapter 5

MCS 3620 Chapter Notes - Chapter 5: Xm Radio Canada, Cost Per Mille, Out-Of-Home Advertising

Marketing and Consumer Studies
Course Code
MCS 3620
Bharat Sud

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Chapter 5 Marketing Communications
Advertising Planning: Traditional Media
Media Planning
Media Planning: Developing a plan of action for communicating messages to the right people (the target market)
at the right time and w/ the right frequency
Both the client & the agency play role in media planning
Client role is mainly to provide background info and evaluate the recommendations that the agency
Agency assesses the info provided by the client & prepares a strategic plan that meets client objectives
Client will then scrutinize the media plan b/c they are spending big money
Media Brief: A document that contains essential info for developing a media plan & is used to stimulate
discussion between the client & agency
Market Profile
Any relevant info about the current state of affairs in the market is useful to media planners
Includes historical sales data for leading brands, market trends & rates of growth
Is market growing, flat or declining?
Competitor Media Strategy
What the competitors are doing has some influence on strategic decision that will be recommended
What media do major competitors use and how much money do they invest in media ads?
If 1 competitor dominates a certain media… might want to use a different media source
Target Market Profile
Probably the most important part of a media plan
Target must be clearly defined and key variables expanded upon
In terms of behaviour, knowledge of how the target interacts w/ the media is important as it helps the
planner to allocate funds across the recommended media
TV is still a relevant media advertising outlet but internet is rising and magazines/newspapers declining
Media Objectives
The client usually identifies key objectives
Objectives tend to focus on target market priorities by identifying primary & secondary targets
Also the nature of the message and its influence on media selection, best time to advertise, & the
geographic market priorities
Media Budget
The funds available for media advertising come from the marketing plan budget
Most times the client has already identified the amount allocated to media advertising
Will be important for strategic thinking
Is there enough for TV ads? Will this strictly be print?
Once the media plan has been presented to client & approved, the agency media buyers negotiate w/ the
media to buy the time & space
Media buyer’s task is to deliver the maximum impact on a target audience at minimum cost (client
Post-buy Analysis: An evaluation of actual audience deliveries calculated after a specific spot or schedule of
advertising has run
How an agency evaluates the plan
Actual audience may be different from expended audience identified in plan
The Media Plan
Media Plan: A document outlining the relevant details about how a client’s budget will be spent. It involves
decisions about what media to use & how much money to invest in the media chosen to reach the audience
efficiently & effectively

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Costs are put under the microscope and are precisely documented
Usually goes under many revisions
Media Objectives
Media Objectives: Clear statement that outlines what a media plan is to accomplish (who what when where how)
Provide guidance/direction for developing media strategies
May state priorities (Customer priorities, regional market priorities etc.)
Typically deal with:
Who: Who is the target market?
Media planners use this profile to match the target w/ a compatible media profile
Eg. Magazines know their readership profile, radio stations know who their listeners are etc.
What: What is the nature of the message to be communication? Media planners must be informed about the
message strategy
Will be mostly visual or informational? What is the budget?
Clients should provide guidance in this area
Where: Where are the market priorities geographically?
Budget plays key role here
Sometimes regions are chosen over others and sometimes they are treated equally w/ media funds
# of markets that must be reached and the level of intensity (media investment) are factors largely
based on budget
When: When is the best time to reach the target market?
Is the product a seasonal one?
Knowledge of the target’s daily schedule is important too (school during day, watch tv at night etc.)
How: How many people to reach, how often to reach them, what length of time?
These decisions made by media planners @ ad agency
Basic guidance from client
Media Strategy
Media Strategy: A plan for achieving the media objectives stated in the media plan. Typically justifies the use of
certain media.
Clients want to see a reasonable ROI
Media strategy says how often to advertise, how long to advertise, where to advertise, what media to
use etc
Rationalizes why only certain media are chosen and others rejected
Factors that influence media strategy
Target Market Profile
The target description may be broad or narrow in scope depending on the company and its offerings
Task of media planner is to match the profile of the target market as closely as possible w/ the profile of
the medium (e.g readership of magazine etc.)
The more compatible the match the more effective the strategy will be
3 Basic Target Market Matching Strategies:
1. Shotgun Strategy: A tactic involving the use of mass media to reach a loosely defined target audience
TV is an expensive media but reaches broad range of people
For advertisers in tighter budget, newspaper or out-of-home ads are a good option (e.g bus shelter,
billboard etc.)
2. Profile-Matching Strategy: A media tactic involving matching the demographic profile of a products
target market w/ a specific medium that has similar target profile
This is most common for matching target to magazine readership but can be used for TV as well
Specialty TV offered tailored to specific demographic
3. Rifle Strategy: A strategy that involves using specific medium that effectively reaches a target market defined
by a common characteristic
Such as an activity or interest that binds the target market together
Ideally suited for organizations that practice database marketing and CRM
Nature of Message
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