Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
21 Cards in this Set
- Front
- Back
|
What is an index number? |
Index number- A ratio used to describe the potential of a market. An index number over 100 means use of the product is proportionately greater in that segment than in one that is average (100) or less than 100. Index = (% of users in a demographic segment / % of population in same segment) x 100 |
|
|
What is a category development index (CDI)? |
Category Development Index- provides information on the potential for development of the total product category rather than specific brands, in a particular market area. When combined with BDI, a much more insightful promotional strategy may be developed. CDI = (% of product category total sales in market / % of total U.S population in market) x 100 |
|
|
What is a brand development index (BDI) |
Brand Development Index- helps marketers factor the rate of product usage by geographic area into the decision process; determines the sales potential for a specific brand in a particular market area. The higher the BDI #, the more market potential exists. BDI = (% of brand to total U.S sales in the market / % of total U.S population inmarket) x 100 |
|
|
High/Low BDI/CDI charts 1 |
|
|
|
High/Low BDI/CDI charts 2 |
|
|
|
What are the 3 main types of advertising scheduling methods? For which types of products is each one used? |
Continuity- continuous pattern of advertising; every day, every week, or every month-No gaps or non-advertising periods-Food products, laundry detergents, products consumed on ongoing basis (no seasonality) Flighting- intermittent periods of advertising and no advertising-Banks spend no money in summer, snow skis are advertised heavily between Oct. and April Pulsing- Combination: continuity is maintained but at certain periods advertising is increased.-Promotional efforts may boost on holidays |
|
|
What are the relative advantages and disadvantages for Continuity? |
•Advantages A constant reminder for food products, household products and products consumed on an ongoing basis. Covers entire buying cycle More effective than flighting/pulsing Allows for media priorities (quantity discounts, preferred locations, etc) Also important if goal is to build awareness of new products or issues •Disadvantages High Costs Potential for overexposure (inefficiency) Media Availability |
|
|
What are the relative advantages and disadvantages for Flighting? |
•Advantages Well suited to seasonal or other products that are consumed mostly during certain time periods Highly Cost effective May allow for inclusion of more than one medium or vehicle with limited budgets •Disadvantages Increased likelihood of wearout Lack of awareness/interest/retention during off-times Vulnerability to competing messages during off-times |
|
|
What are the relative advantages and disadvantages for Pulsing? |
•Advantages Combines advantages of continuity and flighting May be used for products that have little sales variation from period to period, but might see some increase in certain times, such as cold beverages in the hot summer months Consumer response processes that begin with attitudes (i.e. affinity model) and target valued customers often require only pulsing (bursts can often come around sales promotions or other major events) •Disadvantages Moderately expensive; some overexposure Not appropriate for highly seasonal products |
|
|
What are reach and frequency? |
Reach - # of different/unique audience members exposed @ least once in a time period (actual audience) Frequency - # of times the receiver is exposed to the media vehicle (not the ad itself) in a time period (opportunities to see the ad) |
|
|
Reach vs. Frequency |
Problem with reach is there’s no known way to determine how much of it is required to achieve levels of awareness, attitude change, or buying intentions. Also can’t be sure if the an ad placed in a vehicle will actually reach the intended audience. Problem with frequency is that although your ad may be placed in a certain vehicle, the fact that a consumer has been exposed to that vehicle doesn’t ensure that your ad has been seen. As a result, the frequency level expressed in the media plan overstates the actual level of exposure to the ad (This is due to being able to now skip ads both through online vehicles and through recording shows). Two things to note: If an ad is placed on two shows, the total number exposed once is called unduplicated reach. Some people will see that ad twice. The reach of the two shows includes a number of people who were reached by both shows. This is called duplicated reach. Both are important as unduplicated reach indicates potential new exposures while duplicated reach provides an estimate of frequency. |
|
|
How do marketing factors determine the relative frequency of your advertising? |
Brand history: is the brand new or established? New brands generally require higher frequency levels Brand Share: the higher the share, the lower the frequency Brand Loyalty: The higher the loyalty, the lower of frequency required Purchase cycles: shorter purchasing cycles require higher frequency levels to maintain “top-of-mind” awareness Usage cycle: Products that are used daily often required to be replaced quickly. Higher level of frequency is wanted. Competitive share of voice: higher frequency levels are required when a lot of competitive noise exists and when the goal is to meet or beat competitors Target group |
|
|
How do media determine the relative frequency of your advertising? |
Factors that increase: amount of clutter Factors that decrease: alignment with media content Continuous scheduling Fewer media - lower frequency Level of attention achieved by media Repeat exposures |
|
|
How do message factors determine the relative frequency of your advertising? |
Factors that increase frequency: New campaign Image advertisement Complex and varied messages Factors that decrease frequency: Continuing campaign - potential to war out Simple and single messages Advertising units (size/space/time) Uniqueness |
|
|
How do you determine the relative cost of advertising in broadcast and print media? |
Relative cost refers to the relationship between the price paid for advertising space or time and the size of the audience delivered; it’s used to compare media vehicles. CPRP = (Cost of commercial time/Program rating) CPM = (Cost of ad space (absolute cost)/Circulation) x 1,000 Daily Inch rate is used for print media (the cost per column inch of the paper). |
|
|
Television households |
number of households that own a TV
|
|
|
Program rating |
percentage of TV households in an area that are tuned to a specific program during a specific time period
|
|
|
Households using TV (HUT) |
percentage of homes in a given area where TV is being watched during a specific time period
|
|
|
Share of Audience |
Percentage of households using TV in a specified time period that are tuned to a specific program
|
|
|
Program Rating Formula |
Rating = (HH tuned to show/Total U.S. HH) |
|
|
Share of Audience Formula |
Share = (HH tuned to show/U.S. HH using TV) |
