This page has been robot translated, sorry for typos if any. Original content here.

Marketing Basics - Kotler Philip

Media Decisions

The advertiser’s next task is to choose the means of distribution for placing his advertising message. The selection process consists of several stages: 1) making decisions on the breadth of coverage, frequency of occurrence and the impact of advertising; 2) selection of the main types of means of disseminating information; 3) the choice of specific advertising media and an indicator of the cost of advertising per 1000 people; 4) making decisions on the schedule for the use of advertising media.

MAKING DECISIONS ABOUT THE WIDTH OF SCOPE, THE FREQUENCY OF THE APPEARANCE AND THE PERFORMANCE OF THE ADVERTISING . When choosing the means of disseminating information, the advertiser must decide on the desired breadth of coverage, frequency of occurrence and the strength of the impact that must be provided to solve the tasks assigned to the advertisement.

I. Coverage . The advertiser should determine how many people within the target audience should get acquainted with his advertising campaign for a specific period of time. For example, an advertiser may seek to reach 70% of the target audience in the first year.

2. The frequency of advertising . The advertiser should also decide how many times in a given period of time the average representative of the target audience should encounter his advertising appeal. For example, you can secure three advertising contacts.

3. The power of exposure. In addition, the advertiser should consider how strong the impact should be in contact with his ad. Television calls usually make a stronger impression than radio calls, because television is not just sound, but a combination of image and sound. Within the framework of a specific variety of advertising media, say magazines, the same treatment in one magazine may be perceived as more reliable than in another.

For example, an advertiser can achieve one-and-a-half impact force, while the indicator of the impact power of an advertisement in the average advertising medium is equal to one.

Assume that an advertiser’s product may appeal to a market of 1 million consumers. The goal is to reach 700 thousand consumers (1,000,000x70%). Since the average consumer will have three contacts with advertising, the advertiser should ensure the purchase of 2.1 million contacts (700,000 x 3). And since he needs contacts of one and a half force of influence, the estimated number of purchased contacts should be 3.15 million (2100 000 x 1.5). If 1000 contacts of this impact force cost $ 10, the advertising budget should be $ 31.5 thousand ($ 3150 x $ 10). Generally speaking, the wider the coverage, the higher the frequency of the appearance of advertising and the indicators of the strength of its impact, which the advertiser is seeking, the larger the advertising budget should be.

SELECTION OF MAIN TYPES OF MEDIA DISTRIBUTION MEANS . An advertising specialist who plans to use them should be well aware of which indicators of coverage, frequency, and strength of impact each of these tools provides. A brief description of the main means of disseminating information is given in table. 21. In terms of the volume of advertisements placed in them, these funds are arranged in the following order: newspapers, television, direct mail, radio, magazines, outdoor advertising. Each has its own specific advantages and its limitations. An advertising specialist who plans to use them selects based on a number of characteristics, the most important of which are:

Table 21. The main types of means of distribution of advertising

Advertising medium

The volume of advertising, billion dollars

1980 year

To the total volume of advertising,% 1980

1981 quote examples

Benefits

Limitations

Newspapers

15.6

28.5

The cost of the strip in the daily issue of the Chicago Tribune newspaper is $ 11,128.

Flexibility, timeliness, good coverage of the local market; widespread acceptance and acceptance; high reliability

Short duration of existence; poor playback quality; small audience of "secondary" readers

A television

11.3

20.7

The cost of a one-time run of a 30-second clip during peak times in Chicago is $ 2,000.

The combination of image, sound and movement; sensory impact; high degree of attracting attention; breadth of coverage

High absolute cost; advertising overload; transience of advertising contact; lower audience selectivity

Direct Mail

7.7

14.0

The cost of the address list with the names of 34 thousand veterinarians is 1190 dollars.

Audience selectivity; flexibility; lack of advertising of competitors in the shipment; personal character

Relatively high cost; the image of "masculinity"

Continuation of the table. 21

Advertising medium

The volume of advertising, billion dollars. 1980

To the total volume of advertising,%

1980 year

1981 quote examples

Benefits

Limitations

Radio

3,7

6.7

The cost of a minute of peak time in Chicago is $ 400.

Mass use; high geographical and demographic selectivity; low cost

Presentation only by sound means; the degree of attracting attention is lower than that of television; lack of a standard tariff structure; transience of advertising contact

Magazines

3.2

5.9

The cost of a 4-color strip in the Newsweek magazine is $ 57,780.

High geographical and demographic selectivity; reliability and prestige; high quality playback; duration of existence; a significant number of "secondary" readers

A long time gap between the purchase of a place and the appearance of advertising; useless circulation; lack of guarantee of ad placement in preferred place

Outdoor advertising

0.6

1,1

The cost of a monthly rent of a shield in the “peak” area of ​​Chicago is $ 8,000.

Flexibility, high frequency of repeated contacts; low cost; weak competition

Lack of audience selectivity; creative limitations

Other

12.6

23.1

Total

54.7

100.0

Note. The “Other” group includes expenses that are not allocated to the six previous types of advertising media.

1. The commitment of the target audience to certain media. For example, radio and television are most effective in reaching teenagers.

2. Product specifics. Women's dresses are best represented in color magazines, and Polaroid cameras on television. Different media have different potential opportunities for demonstrating the product and its visual representation, varying degrees of clarity of interpretation, reliability and use of color.

3. The specifics of the appeal. The message bearing the news of the big sale that will take place tomorrow requires the use of a radio or newspaper. An appeal containing a large amount of technical information may require the use of specialized magazines or mail.

4. Cost. The most expensive is television, and newspaper ads are cheap.

Having the characteristics of the media, the specialist planning their use must decide on the distribution of budget allocations by their main types. For example, when entering the market with a new variety of cookies, Pillsbury may allocate $ 3 million for daily advertising on network television, $ 2 million for advertising in women's magazines, and $ 1 million for advertising in daily newspapers on 20 major markets.

SELECTION OF SPECIFIC ADVERTISING MEDIA . Then the specialist in advertising media proceeds to the selection of the most profitable ones. For example, if an ad should appear in magazines, a specialist examines data on their print runs and prices for ads of different sizes with print in different color options and different locations, as well as data on the frequency of magazines. Then he evaluates the magazines on such indicators as reliability, prestige, the presence of regional and professionally oriented publications, the quality of printing reproductions, editorial policies, length of time for ordering and psychological impact on readers. Having made such an assessment, the specialist decides which specific journals will provide the necessary indicators of coverage, frequency and impact within the allocated appropriations.

The indicator of the cost of advertising per 1000 people. Specialists in advertising media display the cost of circulation in a particular medium per thousand people. If a full-fledged full-color ad in the Newsweek magazine costs $ 58 thousand, and the estimated readership of the magazine is 6 million, the cost of advertising per 1000 readers will be about $ 10. The same ad in the Business Week magazine may cost - 26 thousand dollars, but to cover only 2 million people, which means that in this case the cost of advertising per 1000 people will be 13 dollars. An advertising specialist ranks magazines by cost indicators per 1000 readers and usually gives preference for publications with the lowest by settlement rates.

This initial calculation requires a number of adjustments. First, the results of measurements must be correlated with the qualitative characteristics of the audience. If the magazine ad for baby cream reads a million young mothers, the contact value of this ad will be equal to a million, but if the same ad reads a million old men, the contact value will be zero. Secondly, the contact value of an ad needs to be correlated with an audience mindfulness measure. For example, readers of the Vogue fashion magazine pay more attention to advertising than readers of the Newsweek magazine. Thirdly, the contact value of an advertisement must be correlated with indicators of editorial quality (prestige, reliability) of different publications.

MAKING DECISIONS ON THE SCHEDULE OF USE OF ADVERTISING MEANS . The advertiser will have to draw up a timeline for advertising throughout the year, taking into account seasonality factors and expected market changes. Suppose that the sale of a product reaches its peak in December and decreases in March. The seller can give intensive advertising from December to March inclusive, can place it in May-June, trying to achieve sales growth at this time of the year, and can advertise goods with the same intensity throughout the year.

In addition, the advertiser will have to decide on the cyclical nature of their advertising. By sequence we mean the uniformity of the placement of announcements within the time period. A pulsating chart is an uneven placement of advertisements within the same time period. So, 52 publications can be planned for a year - either one per week, or according to a pulsating schedule in the form of several concentrated bursts. Adherents of the pulsating schedule believe that: 1) the audience gets a deeper understanding of the appeal and 2) you can save money. Studies conducted by Anheuser-Bush showed that it is possible to suspend advertising of Budweiser beer in a specific market for at least a year and a half without any negative consequences for the sale of goods10. After that, the company can arrange a 6-month advertising surge and completely restore the previous sales growth rates. This study led the firm to decide to advertise Budweiser beer on a pulsating schedule.

Example Media Usage Schedule

Fig. 80. An example of a schedule for the use of advertising media

Decisions about the choice of specific advertising media and the time schedule for their use can be presented in the form of a diagram. The graph of the use of advertising media, shown in Fig. 80, says that in the “While the Earth revolves” program, advertisements will be given on weekdays, except for the summer months, and the “Hollywood Squares” program - throughout the year 3 times a week, in the magazine “With the Family” - at the beginning of each month, with the exception of the summer months, and in the magazine "Readers Digest" - monthly.