MarketingManagement.pdf

(vip2019) #1

Developing and Managing the Advertising Campaign 287


Given all of these media choices, the media planner must first decide on how to
allocate the budget to the major media types. Then the media planner searches for
the most cost-effective media vehicles within each chosen media type—relying on
media measurement services for estimates of audience size, composition, and media
cost.
Audiences can be measured according to: (1)circulation,the number of physical
units carrying the advertising; (2)audience,the number of people exposed to the vehi-
cle (with pass-on readership, a print vehicle will have a larger audience than its circu-
lation figures suggest); (3)effective audience,the number of people with target audi-
ence characteristics exposed to the vehicle; and (4)effective ad-exposed audience,the
number of people with target audience characteristics who actually saw the ad.
Knowing the audience size, media planners can calculate the cost-per-thousand
persons reached by a vehicle. If an ad in Newsweekcosts $100,000 and Newsweek’sesti-
mated readership is 3 million people, the cost of exposing the ad to 1,000 persons is
approximately $33. The same ad in Business Weekmay cost $30,000 but reach only
775,000 persons—at a cost per thousand of nearly $39. The media planner then ranks
each magazine by cost per thousand and favors magazines with the lowest cost per
thousand for reaching target consumers. The magazines themselves often put
together a “reader profile” for their advertisers, summarizing the characteristics of the
magazine’s readers with respect to age, income, residence, marital status, and leisure
activities, to help media planners better target their audiences.


Deciding on Media Timing
In choosing media, the advertiser faces a macroscheduling problem and a microsched-
uling problem. The macroscheduling problem involves scheduling the advertising in
relation to seasons and the business cycle. Suppose 70 percent of a product’s sales
occur between June and September. The firm can vary its advertising expenditures to
follow the seasonal pattern, to oppose the seasonal pattern, or to be constant through-
out the year. Most firms pursue a seasonal policy, although advertising in the off-season
may boost sales and consumption without hurting seasonal consumption.
The microscheduling problem calls for allocating advertising expenditures
within a short period to obtain maximum impact. Over a given period, advertising
messages can be concentrated (“burst” advertising), dispersed continuously, or dis-
persed intermittently. The advertiser must also decide whether to leave ad messages
level, increase them, decrease them, or alternate them in the schedule.
In launching a new product, the advertiser can choose among ad continuity,
concentration, flighting, and pulsing. Continuityis achieved by scheduling exposures
evenly throughout a given period. Generally, advertisers use continuous advertising
in expanding market situations, with frequently purchased items, and in tightly
defined buyer categories. Concentrationcalls for spending all of the advertising dol-
lars in a single period. This makes sense for products with one selling season or hol-
iday. Flightingcalls for advertising for some period, followed by a hiatus with no
advertising, followed by a second period of advertising activity. It is used when fund-
ing is limited, the purchase cycle is relatively infrequent, and with seasonal items.
Pulsingis continuous advertising at low-weight levels reinforced periodically by waves
of heavier activity.^29
Those who favor pulsing feel that the audience will learn the message more thor-
oughly, and money can be saved. This was Anheuser-Busch’s experience. Its research
indicated that Budweiser could substantially reduce advertising in a particular market
and experience no adverse sales effect for at least a year and a half. Then the company
could introduce a 6-month burst of advertising and restore the previous growth rate.
This analysis led Budweiser to adopt a pulsing advertising strategy.

Free download pdf