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Industrial Statistics

MS3001 Advanced Marketing Research

Faculty of Science University of Colombo

Session 1

Media Research
Media in market research is the vehicle used by a company to communicate with its consumers. Media Research is defined as a study of media such as radio, TV and print media for the purpose of reaching the optimal consumer audience. It is in fact a survey conducted to investigate which segment of consumers Read which periodicals and/or Listen to which radio programme or Watch which TV programme

Media Research
The main purpose of Media Research is to provide units of currency, for buying and selling time and space Advertisers and their agencies need information about the media habits of different types of consumers Media owners require readership or audience data to segment their medium & sell advertising space or time more effectively

Two important strategies adopted in media research Advertising strategies Media strategies

Advertising Strategy
Advertising strategy depends on whether

Launching a new product Maintaining the brand Building or evolving the brand image

Media Strategy
Defined as search first for the media and then for vehicles which are most suitable for advertisers communication objectives Using of suitable media mix or combination of advertising channels employed to achieve optimum results from an advertising campaign Aiming at building a communication plan to best support the message to convey it to the target audience in the most efficient way

Media Strategy
Media owners require the readership or data pertaining to audience To segment their medium and sell advertising space In market research is the vehicle used by a company to communicate with its consumers. Three main objectives
To inform present or potential customers about product To persuade persuade the customers to buy a firms market offering To remind marketers audience reminding of a brands benefits to its customers

Media Strategy
To achieve these objectives marketers rely on the following( media strategy mix)
Non Personal Paid by an identified sponsor Disseminate through mass channels TV, Radio, Newspaper, Outdoor Most recognized marketing strategy due to its high visibility

Personal selling
Face to Face interaction Immediate feedback from buyer Ability to tailor the need after the feedback Good method to maintain the customer relationship based ion its flexibility and dynamic nature Better when the product is complex

Public relations
Function which identifies, establishes and maintains mutually beneficial relationships between an organization and various public Eg - Stakeholders, customers, employees, community members, Government

Media Strategy
Sales promotions
Includes communication activities which provide extra value or incentives to ultimate consumers, wholesalers, retailers, Try to stimulate product interest, trial or purchase Eg. Coupons, samples, trade show exhibits

Direct marketing
Communicating directly with target customers To encourage response by telephone, mail, E-Mails, personal visits

Product Life Cycle and Media Strategy

To Inform Customers To Persuade Customers To Remind Customers

Little money on sales promotions





Maturity Stage


Decline stage Growth Stage

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28

Introduction Stage

Strategy Evaluation
Implies that we know for all media, the quantitative elements with which we can count them and which enable us to combine the different media The effect of the qualitative differences between media should be evaluated by other techniques, mainly at the end of the communication process

Steps Involved
Defining the Target Group Determining the objectives to be achieved Deciding whether the campaign is short, medium or long term Allocating a budget Working out a time frame

Defining the Target Group

Four major factors
(1) Buyographics

(2) Geographic
(3) Demographic (4) Lifestyle/psychographics

Determining the objectives to be achieved

1. What proportion of the population should be reached with advertising message during specified period (reach) 2. How frequently should audience be exposed to message during this period (frequency) 3. How much total advertising is needed to accomplish reach and frequency objectives (weight)

Determining the objectives to be achieved

4. How should the advertising budget be allocated over time (continuity) 5. How close to the time of purchase should the target audience be exposed to the advertising message (recency) 6. What is the most economically justifiable way to accomplish objectives (cost)

Role of Media
TV to bring impact and awareness Radio to support events and spur immediate action Print to provide information and build image Posters for visibility

Media Planning
Translation of media strategy into plans That is, factual data related to vehicles such as number of dated insertions in selected newspapers, TV breaks, radio time slots Audience survey data used to obtain most suitable vehicles and verify performance of media plans Media models work with statistics and specialized software programs

The Media-Planning Process

Media planning The design of a strategy that shows how investments in advertising time and space will contribute to the achievement of marketing objectives.

What is Media Planning:

Media Planning is the process of selecting time and space in various media for advertising in order to accomplish marketing objectives. Or to keep it short: It is the process of establishing the exact media vehicles to be used for advertising.

Model of the Media Planning Process

Advertising Strategy

Marketing Strategy

Advertising Objectives

Advertising Budget

Message Strategy

Media Strategy

Media Strategy Target Audience Selection Objective Specification Media and Vehicle Media Buying Time Frame

Why Media Planning?:

Without media planning, advertisers would not know where to sell their products as well as what is the most effective media for their product. Media Planning helps identify the best advertising space, target market and media for your clients product!

Basic WORDS in Media Planning:

Advertising Space - Advertising space is the space inbetween a television show where you see all the advertisements it is the pages of advertisement one sees in a magazine or newspaper. it is also the space in-between a radio show. Medium - A medium is a carrier and deliverer of Advertisements. It is a broad general category of carries such as Newspapers, Television, Radio, Internet, Outdoor, Direct Mail, etc. Media Vehicle - It is a specific carrier within a Media category. So a Discovery would be the vehicle in the category of TV. Many a time a specific programs or sections within a medium may be termed as a vehicle.

Methods of Audience Measurement

Recall Method
Method of collecting audience data in interview surveys or self completion questionnaires that ask respondents to recall their viewing or other activities for a specific time period.

Methods of Audience Measurement .Cont

Diary Method
Where survey respondents record their viewing or listening in diaries. Diaries normally consists of booklet with one page ( or two) for each day of the week. There is considerable scope for variation in terms of format, unit intervals of measurement (eg- Quarter hour/ 5 minute/ actual time), criteria of viewing, selection of sample (i.e. household or individuals), instructions on when to fill in and methods of administration and collection. In the case of viewer-ship national diary systems have given way to people-meter system in most countries. But diaries are still commonly used in larger countries for regional or local audience measurement or for collecting data from rural areas. Also diaries are still used for listnership measurement

Methods of Audience Measurement

Meter Method
General methodology for collecting data by means of a household panel sample equipped with a dual metering system that register a) TV set status (i.e. which channel is being tuned to) and b) Viewer presence. People-meter research is currently restricted to measuring inhome audiences with meters attached to each TV set. Introduced commercially during the mid eighties, peoplemeter measurement now predominates over all other method/methodologies throughout the world. Its key advantages for the advertising community are that it offers highly detailed( minute by minute or even second by second) continuous audience measurement for 24 hours a day and 365 days a year, and is impartial, being free from the recall interview methodologies.

Key Definitions used in Media Research

Reach The population that has viewed
(exposed) at least once during the specified interval/program or advertising campaign Frequency The average number of times that members of a target audience have been exposed to a schedule of advertisement spots

Share Based on overall audience time, the

percentage of audience time that belongs to a particular program/time belt or station.

Exposures Total number of times the target

group has had physical contact with an advertisement

Key Definitions used in Media Research

AIR No. of people who have read any issue of
publication for specified period of time. The period is equivalent to periodicity of the publication.

Claimed Reader Number of people who

have read any issue of publication at least once.

Cumulative Readership Number of people

who read at least 1 issue out of n issues.

Key Definitions used in Media Research

How much advertising volume is required to accomplish advertising objectives Three weight metrics: Gross ratings Target ratings Effective ratings

What Are Ratings?

Ratings, in an advertising sense, simply mean the percentage of an audience that has an opportunity to see an advertisement placed in a particular vehicle.

Weight: Gross Rating Points

Gross rating points, or GRPs, are an indicator of the amount of gross weight that a particular advertising schedule is capable of delivering GRPs=Reach(R) X Frequency(F)

Determining GRPs in Practice

GRPs are the sum of all vehicle ratings in a media schedule Rating: proportion of the target audience presumed to be exposed to a single occurrence of an advertising vehicle in which the advertisers brand is advertised

Weight: Target Rating Points (TRPs)

Adjust a vehicles rating to reflect just those individuals who match the advertisers target audience

How advertising is allocated during the course of an advertising campaign: how should the media budget be distributed? Continuous advertising schedule: an equal number of ad dollars are invested throughout the campaign Pulsing: some advertising is used during every period of the campaign, but the amount of advertising varies from period to period. Flighting: the advertiser varies expenditures throughout the campaign and allocates zero expenditures in some months.

Recency Planning (a.k.a. The Shelf-Space


(1) Consumers first exposure to an advertisement is the most powerful (2) Advertisings primary role is to influence brand choice
(2) Achieving a high level of weekly reach for a brand should be emphasized over acquiring heavy frequency

Cost considerations
Cost per Thousand (CPM) Target Market (TM)


Cost of ad # of contacts (expressed in thousands)

CPM-TM= Cost of ad # of TM contacts

(expressed in thousands)

Research Inputs for Planning

Should meet the client requirement within the given budget Correct combination of medium( TV/Radio/ Publication etc.) Correct combination of channels/ Stations/ publications for the Target Group
Reach Channel/ station penetration, readership. Best combination of channels publications to get the highest reach( Least Duplication) Frequency Channels with high shares( Viewership/ Listenership) to build frequency Cost efficiency Lower CPRP

Research Inputs for Planning

Correct combination of programs / time belts for the target group Programs to suit the brand Best performing programs / Time belts High Ratings / past trends Duplicate viewing Identifying the best commercial breaks / print placement Any important segments within the program ) news/ sports) Viewer shift in out during program Pre & post program ratings Best position First second or last Clutter length Programs on other channels Cost efficiency CPRP Justifying extra cost on ad positioning

Setting Ad Budgets
Manufacturer needs to sell additional 10 million of shampoo in coming year According to research, regular customers by 10 units per year on average Needs to gain 1 million new regular customers For every new regular customer needs to get 2 to try our shampoo( 50% remain triers) Therefore needs to get 2 million new triers To get one trier of a brand it as needs to get 5 to rate it as TOM ( 20% trial among TOMs) Needs 10 million target consumers with brand as TOM

Setting Ad Budgets
( An example)

Manufacturer needs to sell additional 10 million of shampoo in coming year How many exposures do we need to create ( & maintain) such TOM awareness per 4 week cycle(say) Research show that on average 3 exposures are adequate ( smaller brands may need more but benefit prop higher) Higher new-info content may need more