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Media Budgeting & Planning
Media Budgeting & Planning
Click to edit Master subtitle style Presented By: Faizan Ahmed Giriraj Chandak Karishma Km. Priti
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Budgeting
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It is a simple process, provided one accepts the premise that the best (optimal) level of any investment is the level that maximizes profits. This assumption leads to a simple rule for establishing advertising budgets: continue to invest in advertising as long as the marginal revenue from that the investment exceeds the marginal cost.
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Advertiser P &G Unilever General Motors Toyota Motor corp. Ford Motor co.
Ad spending (in $ million) 4,479 3, 315 3,218 2,405 2,387 Source : Advertising Age, November 10, 2003
Budgeting Methods
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In order to accurately predicting sales response to advertising, companies typically set budget by using judgment, applying experience with analogous situations, and using rules of thumb. Percentage-of-Sales Budgeting The method of objective-and-task Budgeting Budgeting via the competitive parity method Budgeting via the Affordability Method
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Objective-and-task Budgeting
It follows several steps that begin with
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identifying and ranking specific objectives that a business wants to accomplish through advertising. determine how they will meet their objectives, and which tasks it will require estimates for the cost of performing these tasks, leaders can allocate money within the marketing budget to each task that seeks to fulfill an objective.
Affordability Method
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Advertising-expense budgeting method based on what a firm's owner, or marketing department, believes the firm can afford to spend on marketing. Since such budgets are not based on any definite objective, the firm may spend too little or too much relative to its needs. Or we can say that a firm spends on advertising only those funds that remains after budgeting for everything else
Media planning:
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Media planning is generally the task of a media agency and entails finding the most appropriate media platforms for a client's brand or product. The job of media planning involves several areas of expertise that the media planner uses to determine what the best combination of media is to achieve the given marketing campaign objectives. In the process of planning the media planner
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Selecting the target audience Specifying media objectives Selecting Media categories and vehicles Buying media
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Effective media strategy requires, that the target audience be pinpointed. Four types of information are used in segmenting target audience:
Segmentation Factors
Buyographics
Geographic
Demographic
Lifestyle/ Psychographics
Media Objectives:
Reach Frequency
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Weight
Continuity Cost
Recency
Media Objectives:
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Reach: % of target audience with opportunity for exposure to media vehicle(s) or media plan in a given time frame. Frequency: number of times target is likely to be exposed to the ad within a specified time period. Weight: GRPs, TRPs
GRP are calculated by multiplying a vehicles rating by the OTS, or number of insertions of an advertisement.
The sum of the ratings of a specific demographic segment may be called Target Audience GRPs or more simply TRPs.
TRPs = GRP x % of TG
Media Objectives:
Recency Theory:
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It states that consumers have selective attention processes as they consider advertisements. It suggests that it is a waste of money when ads reach either individuals or businesses that are not in the market for a particular product or have no interest in it.
Cost:
It is a relative measure of the efficiency of a media vehicle relative to a firms target market. CPRP= cost of media buy/ vehicles rating
CPM total
Target Market Profile. Looking at Brand/Product Dynamics. The Creative Execution. Budget Considerations and Media Deals. The Competitive Situation. Availability and Timing Considerations. Cost Efficiency, cost of reaching 1,000 members of target audience with media vehicle.
Neilsens Example
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