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CHAPTER 8
MEDIA STRATEGY AND TACTICS DECISIONS
Chapter Overview
Chapter 8 introduces the concepts involved in media planning. The chapter begins with an overview of
media planning by introducing some key terms and concepts. At this point, the text points out that media
planning is as much an art as it is a science. A number of problems associated with the planning process
are discussed. The chapter then presents students with an understanding of the advertising and promotions
budgeting process. The chapter discusses the theories underlying budgeting decisions and examines the
various approaches to budgeting. The chapter then focuses on media strategy decisions and media tactics
decisions.
Learning Objectives
1. To understand the key terminology used in media planning.
2. To know how a media plan is developed.
3. To know the process of developing and implementing media strategies.
4. To understand the theoretical and managerial approaches for media budget setting.
Chapter and Lecture Outline
I.
MEDIA PLANNING
This overview presents a brief discussion of the factors involved in the media planning process and
illustrates the fact that media planning is an involved process influenced by a variety of factors including
the nature of the media, the overall marketing strategy, and the product or service being advertised.
A.
Basic Terms and Concepts—Some of the critical terms necessary for understanding media
planning are presented including:
 media planning—the series of decisions involved in delivering the message to the target
audience
 media plan—the actual document detailing these decisions
 media objectives—the objectives sought by the media plan
 media strategies—the plans of action designed to attain the media objectives
 medium—the general category of media channels such as broadcast, print, etc.
 media vehicle—the specific carrier in a media category (television, magazines, etc.)
 reach—the number of potential audience members exposed once to a media vehicle in a
given period of time
 coverage—the potential audience that might receive a message through a vehicle
 frequency—the number of times the receiver is exposed to the media vehicle in a given time
period
B. The Media Plan—the goal of the media plan is to find a combination of media that will enable
the marketer to communicate the message in the most effective manner possible at the minimum
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cost. The activities involved in this plan are detailed in Figure 8-2. An effective media plan
requires a degree of flexibility. Flexibility may be needed to address the following:
1. Market opportunities
2. Market threats
3. Availability of media
4. Changes in media vehicles
II.
ESTABLISHING MEDIA OBJECTIVES
Media objectives relate to the goals to be attained by the media program, and as such should be limited to
those that can be accomplished through media strategies. Such objectives are often expressed in terms of
coverage, reach, frequency, scheduling, etc.
III.
MEDIA STRATEGY CHALLENGES
A number of problems are identified, each of which directly impacts the planning process. These include:
insufficient information, inconsistent terminology, time pressures, and problems in measuring
effectiveness. An understanding of these problems is critical to the proper design of the media plan.
IV.
MEDIA BUDGET
A.
Establishing the Budget
1. Theoretical issues in budget setting—most of the models used to establish advertising
budgets can be categorized as taking an advertising or sales response perspective. In this
section we discuss some of these.
a. Marginal analysis—Figure 8-3 in the text illustrates the concept of marginal analysis.
As the figure indicates, as advertising/promotional efforts increase, sales and gross
margins will also increase to a point and then level off. In using marginal analysis, the
firm would continue to spend promotional dollars so long as the marginal revenues
created by these expenditures exceeded the incremental costs. When the dollar
expenditures exceed the returns, the budget should be scaled back. In other words, the
optimal budget would be at that point where marginal revenues are equal to marginal
costs, or where mr = mc. While this economic model seems logical intuitively, in fact,
there are two major weaknesses that limit its applicability: (1) The assumption that sales
are a direct measure of advertising and promotions efforts, and (2) the assumption that
sales are determined solely by advertising and promotions.
b. Sales response models—two budgeting models based on sales response are discussed in
the text. The first of these—the concave-downward function—is based on the
microeconomic theory of the law of diminishing returns. Essentially, the model states that
as the amount of advertising expenditures increases, its incremental value decreases. The
basic argument is that those most likely to buy the product are likely to do so as a result
of the earliest exposures. Additional exposures are not likely to increase the probability of
their purchasing, nor is it likely to have an effect on those who are undecided or unlikely
to buy. Thus, the effects of advertising would rapidly diminish.
The second model—the S-shaped response function—takes a very different approach.
In this model, it is argued that initial outlays of promotional dollars will have very little
impact on sales. As indicated in Figure 8-4, in Range B an impact will begin to be
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noticed, carrying through to Range C, where additional expenditures have again very
little impact. This S-shaped curve suggests that there are incremental values to be accrued
from additional dollar outlays, but only to a point. For example, it would be argued that a
certain level of expenditures are necessary to make an impact. However, after a certain
point (beginning of Range C) these dollars are unlikely to be of value. In other words, no
matter how much I spend, if you don’t want the product, advertising isn’t going to make
you buy. As with marginal analysis, the marketer would want to establish the budget at
the point where s/he gets the optimal value for the outlay.
c. Additional factors considered in budget setting—In addition to considering the theoretical
aspects of budget setting, a number of other factors must be taken into consideration
including: situational factors; customer factors; the competitive environment; etc. Figure
8-5 can be used to demonstrate this point quite effectively.
V.
MANAGERIAL APPROACHES IN BUDGET SETTING
This section reviews some of the more traditional methods of setting budgets and the relative advantages
and disadvantages of each. Prior to discussing these approaches, we review a few factors that managers
consider as they set the budget.
A. The factors influencing the budget decision are as follows:
1. Market size—the size of the market will often determine how much monies need to be
allocated therein. For example, smaller markets may charge less for media time, may be
more easily covered, etc. than larger ones.
2. Market potential—certainly the potential of the market must be considered. The
previously discussed concept of target marketing would dictate that market potential
should be considered in the budget allocation decision.
3. Market share goals—the market share goals established by the firm—that is, increasing
or maintaining share—will impact the allocation decision. A study by John Jones
concluded that (1) new brands generally receive higher than average advertising support;
(2) older, more mature brands are often “milked—that is, advertising expenditures are
reduced; and (3) there is an advertising economy of scale operating.
In another study, James Schroer suggests that to have a growing market share marketers
should:

segment markets

determine competitor’s cost positions

resist the lure of short term profits

consider niching strategies
4. Economies of scale—some practitioners believe that there are economies of scale that
accrue to marketers holding large market shares, which allows them to spend less money
due to their past successes. As noted in the text, there is little or no evidence to support
this theory, and some studies show that an opposite effect may occur.
5. IMC tools—Direct marketing, the Internet and other promotional tools are also receiving
increased attention and requiring additional budget for marketing communications. After
reviewing the literature, Low and Mohr conclude that a number of organizational factors
influence the budget allocation decision. These factors include: (1) the organization’s
structure, (2) power and politics in the organizational hierarchy, (3) the use of expert
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opinions, (4) characteristics of the decision maker, (5) approval and negotiation channels,
and (5) pressure on senior managers to arrive at an optimal budget.
VI.
BUDGETING APPROACHES
This section discusses the variety of approaches that marketers use in establishing their budgets.
These approaches can be classified as either top-down or build-up approaches.
1. Top-down approaches—in these methods of budgeting, the budget is established at the
“top” by management, and is passed down to the managers. Top down approaches generally
include the following:
a. the affordable method—In this approach, the firm determines what level of advertising
and promotions expenditures they feel that they can afford, and set this amount as the ad
budget.
b. arbitrary allocation—when budgets are set through arbitrary allocation, there is no real
rhyme or reason for the amount established. Sad as this may seem, the truth is that for
many firms this is the method employed.
c. percentage of sales—perhaps the most commonly employed method of setting budgets
in large firms is the percentage of sales method. As noted in the text, there are a number
of variations on this method, as some firms use a flat percentage of sales figure, while
others may assign a percentage of the product cost to advertising with the budget based
on the number of units sold (see Figure 8-8). In addition, another variation stems from
which year is considered the base year for sales. One approach uses past sales histories,
while the second—a percentage of projected future sales—uses projected sales figures.
Many firms employ both methods, with a projection used for planning, and the final
budget adjusted according to actual sales.
d. competitive parity—in this method, budgets are set by matching the percentage
advertising/sales ratios of competitors.
e. return on Investment (ROI)—while good in theory, the ROI method is rarely used. The
basis of this approach is that advertising expenditures should be considered as an
investment, returning sales as a result. Unfortunately, for many of the reasons cited in the
text, the ability to demonstrate this relationship is very difficult.
2. Bottom-up approaches—a more effective method of budgeting is that offered by bottom-up
approaches. In bottom-up approaches, specific objectives are established, and budgets are
determined based on the costs required to attain these goals. Three such approaches are
discussed in the text.
a. objective and task method—Figure 8-11 demonstrates the steps required in using the
objective and task approach. As can be seen, the process involves establishing objectives,
determining the specific tasks associated with attaining these objectives, and determining
the costs associated with these tasks. Monitoring and re-evaluation of these steps is
critical to the success of this method.
b. payout planning—By projecting the revenues that a product is expected to return over a
period of two to three years, the marketer can develop a payout plan. Based on this
expected rate of return, the marketer can assist in the determination of the advertising
expenditures necessary. An example of a payout plan is presented in Figure 8-13.
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c. quantitative models—As noted in the text, quantitative models have not met with the
success that might have been expected of them. Most of these models have employed the
use of multiple regression analysis using sales as the dependent variable, which may
account for much of the problem.
VII.
MEDIA STRATEGY DECISIONS
A. Determining Target Audience Coverage—Figure 8-14 provides a graphic illustration of
marketing coverage possibilities. Of course, the marketer would like to achieve full coverage
through a combination of media. As noted, this is not a likely outcome, and decisions have to be
made that involve trade-offs between less than full market coverage and over coverage or waste
coverage.
B. Developing a Media Mix—many media strategies require a combination of media to be used. The
media mix involves the determination of the various channels to be used. The objectives of the
plan, the budget, and other factors, will directly impact this decision.
C. Geographic Coverage—The decision as to where to promote at this point involves geographical
considerations. Once again, the discussion turns to the use of secondary information and indices
as aids in making this decision. A number of critical terms are introduced including: the Brand
Development Index, and the Category Development Index. The calculation of both BDI and
CDI is provided, based on actual examples. Figure 8-17 is a very useful way of presenting
strategies evolving around BDI and CDI.
D. Scheduling—Because it may not be feasible (or necessary) to maintain a constant advertising
schedule, marketers will typically employ one of three scheduling alternatives:
1. Continuity refers to a continuous pattern of advertising—that is every day, week, or month
(food products, laundry detergents, etc.)
2. Flighting is a scheduling method in which there are intermittent periods of advertising and
nonadvertising (snow skis, etc.)
3. Pulsing is actually a combination of the two previous methods, in which a continuous
schedule is used, though the amount of monies spent will vary throughout the time period
(automobiles).
E. Reach versus Frequency—Given that advertisers have differing objectives, and are constrained by
budgets, the media decision usually involves a trade-off between reach and frequency. This
decision is essentially one of exposing more persons to the ad, or exposing fewer persons more
often. In making this decision, the media planner must take into consideration a number of factors
involving reach and frequency including:
1. The determination of what levels of reach and frequency are needed
2. The establishment of reach and frequency levels
3. Using gross ratings points (GRP's)
4. The determination of effective reach (the percent of the audience reached at each effective
frequency increment)
F. Media Class and Vehicle—Creative aspects of the ad may require the use of specific media. For
example, television may be required to implement certain types of creative campaigns. Likewise,
the mood that a medium creates may carry over to the ad itself. For example, certain magazines
may create various moods as they are being read
G. Flexibility—the media strategy must be flexible enough to respond to marketing threats and
opportunities, as well as to adjust for changes regarding availability and/or in the media
themselves.
 market opportunities
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 market threats
 availability of media
 changes in media or media vehicles
H. Budget Adjustments—it is obvious that costs must be considered in the determination as to which
media will be employed. Two types of costs must be addressed—absolute cost—which is the
actual cost to place the ad in the medium—and relative cost—or the relationship between the
price paid for advertising time or space and the size of the audience delivered. A comparison of
media vehicles is usually necessary, using criteria such as cost per thousand (CPM), cost per
ratings point (CPRP), daily inch rates, and readers per copy. (Each of these is explained in
detail in the text.)
I.
Blocking Chart—the blocking chart summarizes many of the media strategy and media tactics
decisions made thus far, and includes extensive implementation details that guide the media
buyers as they attempt to achieve the media objectives.
Teaching Suggestions
Both the length and complexity of this chapter make it a difficult one for students to comprehend. The
chapter contains a large number of terms, definitions, and formulas. Unfortunately, there is no way to
ignore all of these, as they are critical to the students' learning of media planning and strategy, and are the
"buzzwords" with which they will need to become familiar to participate in the advertising world,
regardless of which side of the buying-selling process they may be on.
One suggestion is to break the chapter into two lectures. In the first, the terms, formulas, etc., as well as
an overview of the planning process can be discussed. The second lecture can be more specific, focusing
on some of the objectives to be accomplished, discussing reach and frequency trade-offs, effective reach,
etc.
Answers to Discussion Questions
1. Using the BDI and CDI indices, explain the least desirable market situation for marketers. Provide an
example. Then do the same for the most desirable situation.
The least desirable situation is one in which the BDI and the CDI are both low. In this situation, there
appears to be little potential for either the category or the brand. For example, consider typewriters. If
they are still marketed at all, the category is in the decline stage, and any brands would be as well. No
amount of advertising is likely to bring back the category or the brand.
The most desirable situation is one in which BDI and CDI are both high. In this case, the category is
growing, and the potential for the brand to grow is high as well. An example might be PC’s. The use
of computers is growing, and new brands may have the potential to grow as well. The advertiser
would be more likely to be successful by investing in this situation.
2. Media planning involves a tradeoff between reach and frequency. Explain what this means and give
examples of when reach should be emphasized over frequency and vice versa.
In an ideal world, advertisers would like to maximize reach and frequency. Unfortunately, in the real
world, they are faced with budgetary constraints. Given budget limitations, the media planner is
forced to choose between reach and frequency. Given specific objectives of the plan, one or the other
may be emphasized.
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Maximizing reach at the expense of frequency is more logical when the message is simple and easily
understood, the receiver is in the early stages of the response hierarchy (for example, awareness
and/or interest) and the target audience is broad. For example, campaigns targeting cola users use
very simple messages (Coke is it!) and are targeted to a broad audience. Thus reach is important.
When the consumer is at a higher level in the response hierarchy, for example, comprehension,
retention, etc., or the message is more complex, and/or the target audience is narrowly defined,
frequency may be a more important objective. For example, messages that have a lot of copy, and
may be more difficult to comprehend must consider the importance of effective frequency. One or
two exposures may not be enough to achieve the media objectives. Likewise, a narrowly defined
target market may allow for an emphasis on frequency, and the minimization of waste coverage, thus
placing less emphasis on reach.
3. What is meant by readers per copy? Explain the advantages and disadvantages associated with the use
of this figure.
Many magazine advertisers argue that the circulation figure is an underestimate of media reach. They
contend that because many magazines may be read by more than one person, that the CPM is an
underestimate of cost efficiency. They believe a more accurate figure is readers per copy.
Readers per copy is determined by including a pass-along rate—a figure that includes readers who
may not subscribe or have paid for the copy. Figure 8-30 on page 226 demonstrates how this figure is
calculated and used.
An advantage of using this number is that it may more accurately reflect potential exposures to the
medium. For example, it is well accepted that there is not always a one to one circulation to
readership ratio. Smart buyers may be able to actually be able to gain more exposure to their ads than
they are paying for if they can find a medium with high pass along readership. Consider a magazine
like Time or Sports Illustrated. More than one person may read each issue, whether the readership is
taking place in the household, fraternity, etc. In this case, the media buy based on circulation
underestimates the reach, and the buy becomes more efficient.
The disadvantage associated with using readers per copy is that pass-along rate is very difficult—if
not impossible—to determine. While one may easily estimate the number of persons exposed to Time
magazine in a household, for example, the ability to estimate the number of persons exposed to
Business Week in a doctor's office, or fraternity house is much more complicated and lacks validity.
(If you have ever seen the forms used to make this determination, you would immediately see the
weakness!) In many cases, the actual number of readers per copy is little more than a guess.
As a result, readers per copy is typically used as the "art" of media buying, rather than relying on the
numbers as hard fact.
4. One long term advertising agency executive noted that buying media is both an art and a science,
with a leaning toward art. Explain what this means and provide examples.
There is a wealth of secondary information available to advertisers and media planners. As noted
throughout this chapter, audience profiles, media usage, media costs, and competitive information is
readily available. However, even given these large volumes of data, media buying may be less
scientific a process than one might think.
A number of reasons can be offered for this position. First, the validity of the data is often suspect. As
noted in the chapter, methodological difficulties often result in the data being questioned. The ratings
data provided by A.C. Nielsen is constantly being criticized, and media buyers and sellers alike are
constantly doing battle with the provider.
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Secondly, there are factors that just don’t show up in the numbers. The content of the material, the
audience’s impression of or attitude toward a specific DJ, or newscaster, etc. may not be reflected in
the numbers, and must be evaluated more qualitatively. Monthlies may offer greater potential for
frequency of exposure than weeklies, etc.
Even when the numbers are valid, one must look purely beyond just the data per se. For example,
local news ratings for CBC stations may often be highest on Thursday nights because of the
network’s prime time programming. While the numbers may be there, this doesn’t indicate the fact
that the stations are more popular on Thursday nights, only that people haven’t switched away from
the station they were on. While one might say, “so what, the numbers are there”, the quality of the
viewer may not be the same as on other nights when they specifically tuned into the news broadcast.
The discussion on CPM’s vs Readers per Copy is another example when the media must be looked at
and evaluated on criteria other than just the numbers.
Most good media buyers know that numbers are important. Most also know, however, that they must
look beyond just the numbers in making their decisions. Qualitative aspect, or the “art” of media
buying may be as important at the hard data.
5. Discuss some of the factors that are important in determining frequency levels. Give examples of
each factor.
Figure 8-26 describes some of the factors important in determining frequency levels. The three factors
and specific examples of each are:
a.
Marketing factors—these include factors such as brand history, brand share, degree of brand
loyalty, purchase and usage cycles, competitive share of voice, and target markets.
b.
Message factors—complexity and uniqueness of the message, length of time the campaign
has run, image versus product sell, message variation, wearout and advertising units.
c.
Media factors—clutter, editorial environment, attentiveness, scheduling number of media
used, and repeat exposures
6. What are some of the advantages and disadvantages of CPM?
More and more media are presenting relative cost comparisons in terms of CPM rather than CPP (cost
per point), milline rates, etc. Part of the reason for doing so is the fact that it is often difficult to make
cross media comparisons using various cost figures. By providing the media buyer with a “standard”
figure, it makes the media buying process much simpler.
A disadvantage of this consistent use of CPM’s is also evident, however. A message appearing in print
is not the same as a message appearing on broadcast. One appearing in a magazine will not have the
same impact as one in newspaper. By providing a standard number the media buyer may be somewhat
mislead in terms of the impression that the ad carries. (Some have suggested using a comparison
called cost per minimum impression unit, but no one seems to know what that means.)
So long as the media buyer remembers that CPM refers to the cost to potentially expose one’s
message to a thousand people, there should be no problems associated with this common term. At the
same time, as the text warns, media buying is both an art and a science, and other factors must be
taken into consideration
7. Critics of the percentage of sales method of budget setting contend that this method “reverses the
advertising and sales relationship” and that it “treats advertising as an expense rather than an
investment” Explain what these arguments mean, and discuss their merits.
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The percentage of sales method, while a commonly employed method of budget setting has its
disadvantages. Perhaps the major of these disadvantages is the fact that the advertising budget is
based on the amount of sales generated, not as a basis for achieving sales. Thus, the argument that it
reverses the advertising and sales relationship.
By establishing the advertising budget based on the level of sales, sales is dictating what the ad
budget will be. Advertising is not considered a tool for generating sales, but is considered more of a
cost of doing business. If sales fall, the ad budget is cut. So what happens is that in periods of
declining sales, rather than considering advertising as a tool for reversing the trend, it is seen as a way
to cut costs to improve profits. In periods of increasing sales, the advertising budget may be raised
accordingly (remember it’s a % of sales), in many cases not because it has been shown to have an
effect so much as just a rule of thumb.
The argument that % of sales reverses the advertising sales relationship is a valid one. If one treats
advertising as an investment, then the ad budget should actually increase during down turns in the
market, in an attempt to turn around the declining sales. By slashing the ad budget based on a % of
sales, management is saying that they do not believe that investing in advertising is a viable strategy
for improving sales.
8. Discuss some of the reasons that managers continue to set budgets using “top down” budgeting
methods.
One of the slowest changing areas in all of advertising and promotions is that of budget setting. Part
of the reason for this lack of change can be attributed to a lack of innovative ideas in the budgeting
area. A review of textbooks in the late 1990’s will demonstrate that most of them talk about the same
budgeting methods that were being discussed in the 1970’s. This is not a criticism of the texts, rather
it just reflects that fact that not much is new in the area. Thus, marketers follow the older methods.
Another reason for the slowness to change can be attributed to control. Obviously, spending money is
an important decision, and one that immediately and directly impacts the organization. Many top
managers are unwilling to relinquish this control—particularly in the absence of a proven alternative.
Still another reason might be that of tradition. “This is always how it has been done”. For most
companies, the top down methods are the way that budgets have always been established. With all of
the other decisions that need to be made, exploring ways to make changes in the budget setting
process simply do not receive priority, and the status quo is the rule.
Perhaps the most common reason for continuing the top down method is that most managers don’t
know how to make this determination. While the % of sales method has been used for quite some
time, and managers feel that since it is a common practice, it must be acceptable, some of the other
methods have no basis for substantiation. For example, arbitrary allocation and the all you can afford
methods have little or no merit. Yet for many companies, this is the method of choice, and will
continue to be. In these instances, it is hard to rationalize or defend the budget setting process.
9. Explain the difference between investing in advertising and spending. Cite examples of companies
that have successfully invested.
For many, advertising is treated as an expense that is associated with the marketing of a product rather
than an investment. In this case, the manager takes a short term perspective, looking for an immediate
impact, attempting to relate advertising to sales, and may often cut spending when sales go down.
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Those who treat advertising as an investment recognize that it may take a long time for the
advertising to have an impact. They invest in the brand as one would invest in the bank—that is, they
expect the investment to grow over time. When times go bad, monies are not immediately withdrawn,
additional monies may even be added. In treating advertising as an investment, advertising as seen as
a contributor to the sales, not the reverse, in which sales are seen as contributing to advertising.
Companies who think long term treat advertising as an investment. Ford’s ad campaign promoting the
quality of Ford autos was only part of the IMC campaign which also consisted of building a better
product, providing better service, etc. Saturn also treated advertising as part of the overall program to
build a n image for the product, both supporting and supported by advertising and promotions.
BASF’s image campaign and Intel’s both reflect this long term investment.
10. Discuss how you would explain to a small business owner why he or she needs to budget a larger
amount to advertising and promotion. Base your argument of the S-shaped response function.
As noted in the previous question, the S-shaped response function argues that advertising will have
little or not effect until a certain level of expenditures is reached. The small business owner would,
therefore, have little success if the budget were to adequate enough to reach this point. For example,
one might ask how much sales might be generated in an area with an ad budget of a few hundred
dollars? This amount would small that only a few people would be reached, and no noticeable impact
on sales would be achieved. Only when this budget is increased to the point where enough people
could be exposed to the message would any impact be felt. High tech companies illustrate this point
quite well since they typically spend s much on research and development, not enough money is left
over to make an impact on the marketplace. (They also often tend to be very product oriented, placing
all of their faith in the fact that the product will sell itself.) The small amount that is typically spent
might just as well as been saved.
11. Some advertisers believe that economies of scale are accrued in the advertising process. Discuss their
reasons for taking this position. Does research evidence support it?
The argument of economies of scale is that companies with a large share of the market have an
advantage over smaller companies, and thus can spend less money on advertising and realize a better
return. Factors such as better ad rates, declining costs of production, and more favorable time and
space locations are cited to support this position.
A variety of studies cited in the text suggest that there are no true economies of scale to e accrued—at
least in respect to advertising cost per dollar of sales. These studies note that the evidence just does
not support this contention.
Jones’ article concludes otherwise, however. According to Jones, when “share of voice” is considered
there is clearly an economy of scale that is accrued, as the advertising dollar works harder for leading
brands.
As can be seen, studies regarding the economies of scale in advertising often provide mixed evidence.
The studies seem to conclude that when share of voice is the dependent variable, this relationship may
hold true. When ad/sales effects are the dependent variable, no economies of scale seem to be present.
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Additional discussion questions (not in the text)
12. What is a brand development index? A category development index? How can marketers use these
indexes?
Pages 214-216 discuss BDI and CDI. BDI compares the percentage of the brand's total Canadian
sales in a given market area with the percentage of the total population in the market. The resulting
BDI indicates the sales potential for that brand in that market area. CDI provides information on the
potential for development of the total product category rather than specific brands.
Figure 8-18 provides an excellent summary of how BDI and CDI can be used to develop marketing
strategies. The use of these indices provides marketers with insights into the market potential for the
product or brand. This, in turn, provides information regarding the amount of media emphasis,
weighting, etc. to be allocated.
13. What level of frequency is necessary to achieve an impact on the receiver?
While most advertisers agree that one exposure to an ad may not be enough to have an impact, there
is less agreement as to what number of exposures is necessary. Pages 221-222 discuss the concept of
effective reach. A number of researchers have joined the debate over the number of exposures
required.
While three exposures has been accepted as the optimal frequency level for years (Figure 8-25), a
number of researchers have challenged this number. Abbott Wool, for example, contends that one
exposure may be enough if the exposure takes place very close to the actual purchase. Jack Myers, on
the other hand argues that Krugman's work may have been valid twenty years ago when consumers
were exposed to only 1,000 ads per day. Now that we are exposed to 3,000-5,000 per day, and throw
in the fact that changes in media have taken place, Myers estimates that a minimum of 12 exposures
may be required. He suggests that as media continue to fragment and advertising continue to
proliferate, this number may continue to increase.
What is the right number? No one really knows!
14. Discuss the market situation being described by each of the following: high BDI and high CDI; high
BDI and low CDI; low BDI and high CDI; and low BDI and low CDI.
This information comes directly from p.216, Figure 8-18.
High BDI, high CDI—high market share; high market potential good sales potential for category and
brand
High BDI, low CDI—high market share; monitor for sales decline category not doing well but the
brand is
Low BDI, high CDI—low market share; good market potential category has high potential, brand
doing poorly
Low BDI, low CDI—low market share; poor market potential both category and brand doing poorly
15. The text states that flexibility is required in a media plan due to changes that may take place in the
marketing environment. Describe some of these changes and how they might affect the media plan.
A number of environmental factors may lead require flexibility in the media plan. These include:

market opportunities—an event that takes place that provides an unforeseen opportunity. For
example, a winter snowstorm may provide the opportunity to announce a sale on shovels.
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
market threats—internal or external factors that may lead to problems resulting in sales losses,
etc. For example, a direct competitor increases its advertising budget, and the company is require
to respond.

availability of media-a medium sought may not be available. For example, all media space may
be sold out.

changes in media or media vehicles—for example, the recent changes in television (500 channels)
or the fact that the Internet has now become available to commercial advertisers.
A much broader list can be developed. This question makes for good class discussion as students can
be encouraged to generate their own lists.
IMC Project
At this stage, present the specific media objectives. Without specifically naming media (this will be done
in following chapters) develop a broad media schedule. Also explain what creative aspects and mood
must be taken into consideration. In addition, determination and allocation of the budget is now required.
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