CH-9-12 Measuring the Effectiveness of the Promotional Message – Advertising and Promotion: An Integrated Marketing Communications Perspective : Book Guide

This Document Contains Chapters 9 to 12 Chapter 9 Measuring the effectiveness of the promotional message Answers to Review Questions 1. What are the reasons why a company should measure the effectiveness of their promotional programs? The chapter cites a number of reasons why advertising effectiveness measures are not taken. Each of these is discussed in the text, but a short review is also provided here. • Cost—One of the most commonly cited reasons is the belief that conducting these measures is too costly, or that the monies are better spent elsewhere. Many advertisers feel that they would rather spend the money to purchase more media, improve production, etc. In addition, they cite the time costs that are involved. • Research Problems—because many advertisers attempt to directly measure the effect of advertising on sales, research problems develop. When the problems associated with isolating the effects of advertising on sales are pointed out, they opt not to conduct research at all. • Disagreements on what to Test—as noted, different people within the organization will have different motivations for conducting effectiveness research, and different needs to be satisfied. Sometimes there is an inability to come to agreement what should be tested, and the testing never gets done. • The Objections of Creative—many agencies are dominated by top managers who have moved through the ranks on the creative side. Many creatives feel that to attempt to measure the effects of their ads would stifle their creativity, and would structure the way that they design their campaigns. As a result they argue against effectiveness measures. If their relationship with the client is a strong one, they are too often successful. A variety of reasons can be offered as to why effectiveness measures should be taken: • Avoiding Costly Mistakes—if the ad or commercial is developed is unsuccessful, a great deal of cost will be incurred by the company. These costs include the actual costs associated with the development and implementation of the campaign, as well as the opportunity cost. • Evaluating Alternative Strategies—Research can be used to evaluate the effectiveness of the strategies under consideration. These strategies may be tested as early as the concept generation stage or after implementation. • Increasing the Efficiency of Advertising—Testing can assist the advertiser in “fine tuning” the ad. Such tests can eliminate mistakes that may result from improper identification of needs and wants of the target market, the use of terms that the receiver does not understand, etc. • Determining if Objectives are Achieved—Testing can give an indication if the IMC program objectives are attained. Consistent with Chapter 5, an IMC program’s effectiveness can only be assessed with a proper identification and evaluation of its objectives. In reality, there is really no strong argument for not testing, as the benefits will outweigh the costs. This argument is particularly strong when the marketer realizes that the results of the current program will serve as input into the next period’s planning process. If these measures are not taken, the planning process will be restricted. 2. Discuss the differences between pretesting and posttesting. Give examples of each. Pretests are those tests that take place before the advertisement or commercial is made available for viewing by the public. These tests may take place at a number of points from as early on as idea generation to testing the final version before showing it. Examples of pretests include focus groups, consumer juries, physiological measures, in-home tests, theater tests, etc. Posttests are those that occur once the ad has been placed in the medium and exposed to the public. Posttesting is designed to (1) determine if the campaign is accomplishing the objectives sought, and (2) serve as input into the next period’s situation analysis. Examples of posttests include recall tests, comprehensive tests, diagnostics, inquiry tests, single-source measures and tracking studies. 3. Why might a firm use theatre test, on-air test and physiological measure to pretest its finish broadcast ads? All of these methods are used as a screening to determine whether the ad should be aired in a campaign. Presumably the results would indicate a sufficient number of “duds” if a marketer regularly used one or all of these methods. Over time, it is argued that the total cost of the research would be less than the enormous amounts of money wasted in media expenditures for a “bad” commercial, not to mention the possible lost contribution from annoying current or potential customers. Each research method offers its own unique strengths, since they are lab, field and physiologically based, and a manager would devise a research strategy based on their interpretation and conclusions. 4. Why are the PACT criteria important for testing effectiveness? The PACT criteria ensure that research to measure the effectiveness of ads prior to media release is performed to the highest standards of research as possible. It provides a common understanding in the industry so that are major participants agree to what, when and where to test when assessing ad effectiveness. The criteria are the research requirements related to the performance measures highlighted in the PBR system described in Chapter 2. Answers to Applied Questions 1. Imagine how a creative director who worked on an exciting, daring, and provocative ad campaign for months would react if the campaign were to be scrapped prior to launch after preliminary research indicated it did not resonate with audiences tested? In all likelihood the creative director would be very upset and question the data. Some key concerns would be the testing methodology in terms of the type of data collected, what was measured, how the data was analyzed, how the results support the decision to not continue with the campaign. The creative director might ask whether it was done by a professional and certified research organization, and also wonder if the sunk costs might be be overcome with a minor roll-out of the ads to gage a market reaction vs. a preliminary lab evaluation. 2. Select a popular ad campaign and explain whether it should have tested different creative strategy options or different creative tactic options? This question acts as an example to allow students to estimate what could have been tested prior to the launch of the campaign. For virtually any campaign, hindsight evaluation could suggest that different theme or appeal be used, and this could be the source of investigation. Alternatively, from a tactical standpoint, different music or dialogue or scenes could be suggested as key tactics that could be tested. An astute student will point out different testing if the ad would have had a different move (e.g., move from information to transformational) which would have likely necessitated a change for both creative strategy and tactic decisions. 3. Explain why you would or would not want to personally participate in each of the studies described? Perhaps the most enjoyable comments will be students’ opinions on the eye-tracking and the other physiological methods. These are much more invasive than completing a survey or participating in a focus group or personal interview. Some interesting views may emerge with those who go to a specialized theatre to watch ads and view “dummy” magazines as these will feel artificial. Essentially this question provides a fun opportunity for students to understand the methods from a personal point of view that might make the learning more enjoyable compared to memorizing. 4. For any of the print ads located in the previous chapters, design a testing approach based on the final section of this chapter? Either the PACT section or the order in which the text is organized should be the basis for structuring this answer. The important point here is that students should have a clear idea of what to prescribe for each step. Using the latter view, students could apply the R&P model to structure what objectives that might have been set for the print ad. Similarly, with a print ad selected, each of the pre and post tests could be investigated that are reviewed in this chapter. The measure is a tricky aspect to the task as students will have to think about key question to track category need, awareness, and attitude. Finally, the student should be able to offer an intelligent suggestion on how the research will assist in making the recommendations on whether the ad will be run or not. Additional Discussion Questions (not in text) A. What are some of the problems associated with recognition tests? Some of the problems associated with recognition tests include: • false claiming—respondents claim to have seen an ad when they did not, either deliberately or by mistake (they may have seen a similar ad elsewhere). • interviewer sensitivities—the interviewer biases the respondent by the way the question is asked, encouraging a response, etc. Or, the respondent answers falsely for fear on not knowing, appearing uniformed, etc. • reliability—both reliability and validity increase with the number of ads tested. The possibility for error in both of these regards is high if only one or a few ads are tested. B. Discuss how tracking studies might be tied into the hierarchy-of-effects models. Tracking studies are generally used as posttest measures of the ads effectiveness. In these tests, the impact of the ad is tracked over time or in a particular location. The text notes that one of the major advantages of tracking studies is that they can be tailored to each specific campaign or advertising situation. By combining the tracking study methodology with the hierarchy of effects models, the advertiser can specifically measure the impact of a program on communications objectives. Once the campaign has been run (or while it is being run), measures of the number of persons aware of the ad and its message can be taken. In addition, knowledge of the message, the product benefits being stressed and/or the purpose of the ad can also be assessed. In respect to affective reactions, liking, preference, and conviction toward both the ad and the product or service advertised can be measured. While actual purchases may be difficult to attribute to the ad, it is very possible (and common) to measure behavioral intentions. Each of the hierarchy models could be used in this manner, with each step constituting a dependent variable. C. Describe some physiological measures of advertising effectiveness. Give examples of companies that might find these measures useful. The text describes a number of physiological measures used to measure effectiveness. A summary is provided here: • pupil dilation—measures dilation and constriction of the pupils to stimuli • galvanic skin response—measures the skin’s resistance or conductance to current based on reactions to ads and/or commercials. • eye tracking—following the viewer’s eyes as they read an ad or watch a commercial to determine where attention focuses, and what may be attracting attention. • brain waves—alpha waves and hemispheric lateralization measures are taken to determine electrical frequencies occurring in the brain in response to advertising stimuli. Obviously, a number of companies could make use of these methodologies. While some of these may have more application that others—as well as more validity—it would be up to the individual organization t determine which is most useful to them. For example, Coke has use eye tracking to determine where the respondents’ eyes focus (as has Wrigley’s gum). Insurance companies might use GSR/EDR to determine anxiety created by an ad, and advertisers employing sex in their appeals might use any one of the above. D. What is a theatre test? What measures do these tests provide? Theatre tests are pre-test lab tests used to measure the potential effectiveness of finished television commercials. A variety of companies offer such tests, but perhaps the most well known is Prevue House in Los Angeles. In theatre testing, participants are asked to come to a theatre-like setting to evaluate ads (often disguised in respect to intent). Theatre tests provide a number of measures including: • interest in and reaction to the commercial • overall reaction to the commercial based on an adjective checklist • recall of various aspects of the commercial • interest in the brand under consideration • frame by frame reactions throughout the commercial While a very commonly employed methodology, theatre tests are now without their critics. These critics contend the measures lack validity, are too artificial, and may suffer from group dynamics. Their biggest concern is the likelihood of testing bias. Proponents argue that the tests provide the opportunity for control, and provide norms for evaluation against other similar ads. They cite the large number and variety of companies making use to this methodology as a support for their position. E. Discuss the concept of single-source research. What advantages does it offer the marketer? An increasingly popular method of measuring the effects of advertising is through the use of single-source methods. Two of these methods, BehaviourScan, and ScanTrack have been available for a number of years and are very popular. Single-source methods attempt to track the behaviours of consumers from the television set to the check-out counter, measuring the impact of various commercials on product purchases. These measures may be used as pretest or posttest measures, as is discussed in the chapter. Many marketers feel that single-source measures will change the way that ad effectiveness studies will be conducted if they are successful. Part of the reason for this is that they offer many of the advantages of other commonly employed measures, but provide more insights into the possible behavioral effects that advertising might evoke. More specifically, the single-source methods hope to be able to determine advertising effects on sales. At the same time, single-source methods have their critics. Some researchers feel that these methods only measure short-term effects of advertising. Others feel that the data provided is just too complex to be of significant use. The cost of acquiring single-source data is also very high at this time. In sum, there is little doubt that single-source methods hold a great deal of promise for measuring the effects of advertising. These measures offer many of the advantages of both lab and field measures, and provide the capability to measure actions that come closer to showing the effects of advertising on sales. As these systems move out of test markets, and can be used to explain more of the mass market, their value will increase, while costs may go down. F. Discuss the differences between a pretest and a posttest. Pretests are those tests that take place before the advertisement or commercial is made available for viewing by the public. These tests may take place at a number of points from as early on as idea generation to testing the final version before showing it. Posttests are those that occur once the ad has been placed in the medium and exposed to the public. Posttesting is designed to (1) determine if the campaign is accomplishing the objectives sought, and (2) serve as input into the next periods’ situation analysis. As shown in Figure 9-1 these tests may also take on a variety of forms. G. What is a day-after recall score? How can it make or break an ad? This test measures consumers’ recall of television commercials, using two recall scores: (1) unaided recall, and (2) aided recall. The unaided score reflects the number of viewers who could recall a previous night’s commercial without being aided. The aided score uses prompts to assist in the recall effort and is not as strong a measure. A low DAR score may mean that the ad was not recalled as well as expected, and the ad may be “canned” as a result. On the other end of the scale, a high DAR score may mean that the ad will get the green light for showing. As noted in the text, the DAR score is not always 100% accurate, sometimes failing to identify successful ads. Likewise, achieving a high score does not always mean product success. DAR scores are often criticized as favouring non-emotional appeals. H. Discuss the elements necessary to conduct good advertising testing research. Perhaps the best answer to this question is that the marketer practices a sound market research methodology. This would mean the employment of the proper sample, pretesting of questionnaires, adequate controls, and assessments of reliability and validity. More specifically, the PACT principles might also be used to insure that a proper research design is implemented. PACT principles state that the research must: (1) be relevant to the objectives of the advertising; (2) achieve agreement as to how the results will be used prior to testing; (3) provide multiple measures; (4) be based on a model of human response; (5) allow for multiple exposures; (6) recognize limitations associated with unfinished copy; (7) provide controls to avoid biases; (8) have a proper sample; and (9) demonstrate reliability and validity. I. What is a Starch Test? What scores does this test provide? The Starch Readership Report is designed to determine recognition of print advertisements as well as a comparison to other ads of the same variety or in the same magazine. The report provides the following scores: • Noted Score—the percentage of readers who remember seeing the ad • Seen-Associated Score—the percentage of readers who recall seeing or reading any part of the ad identifying the product or brand. • Read-Most Score—the percentage of readers who reported reading at least one half of the copy portion of the ad. J. Major changes have taken place in the way that theatre tests are conducted. Describe some of these changes and the changes in measures that have also occurred in this testing method. Theatre tests have been used for quite some time. In the past, participants would be invited to a theatre-type setting, asked to watch commercials and programming, and give their opinions. A number of measures were taken, including recall, reaction, pre and post brand preferences, buying intentions and even physiological measures. While useful due to the controlled environment and the norms these tests provided, many researchers criticized the methodology due to its artificial environment as well as on the validity of the measures taken. In an attempt to improve on this methodology, a number of research companies started to take the theatre test methodology into the receiver’s home. Videotapes would be developed that included program content and test commercials. The respondent would be asked to view the videotape (which would then self destruct), and answer questions. Recall tests could also be taken the next day. The argument for in-home tests was that they could improve on the validity of the theatre testing methodology and get as many, if not more measures. As the tapes self destructed, concerns with security were resolved. While some theatre testing methodologies still exist and are still employed, the in-home version of the theatre test has now become the more popular alternative. K. Discuss some of the aspects of the communication program that advertisers may wish to test. Provide some examples. Advertisers may wish to test all creative strategy decisions. Once a particular advertising theme has been exposed for a period of time, advertisers would want to know whether it positions the brand successfully. Alternatively, they may desire to test multiple advertising themes to determine which is most appropriate. Related to the creative theme is the message appeal and advertisers would be concerned as to whether the particular appeal is effective at persuading. Advertisers would like to know whether the source being used is effective and how the target audience will respond to it. A product spokesperson may be an excellent source initially but for a variety of reasons may lose impact over time. Changes in the source’s attractiveness or likeability or other external factors may also lead to changes in source effectiveness. Creative tactics decisions are also critical aspects of measurement. The executional style can be assessed to determine its effectiveness. Message structure issues can be looked at to determine if they are persuading appropriately. Design factors that have an impact on its effectiveness include headlines, text, layout, and illustrations. Advertisers can produce many different options prior to launching a campaign to asses which might be more liked. Astute students will recognize that the chapter mostly addresses advertising message effectiveness, and that aspects of media effectiveness are relevant. Research pertaining to media is presented in the media chapters and instructors can make reference to it at this stage and use the material in this chapter as a foundation to explore the issues in more detail. Some topics that can be highlighted now include the following. The location within a particular medium and size or length also merits examination. For example, research shows that readers pay more attention to larger ads. Another factor is the vehicle option source effect, i.e., the differential impact that the advertising exposure will have on the same audience member if the exposure occurs in one media option rather than another. The final factor in media decisions involves scheduling. The evaluation of flighting versus pulsing or continuous schedules is important. There is evidence to support the fact that continuity may lead to a more effective media schedule than does flighting. L. Describe some of the effectiveness measures that might be used to get at non-quantifiable aspects of advertising and promotions. Chapter 9 discusses a number of quantitative methods for determining the effectiveness of advertising and other IMC elements. The chapter also mentions the fact that sometimes the effects of these programs are not easily quantifiable. Sometimes to get a true feeling for the effectiveness, other, non-quantifiable measures must be taken. These may include observation—watching how people react to an ad, observing the crowds at PR events, etc. Interviews and discussions can also be used to assess reactions. Other unobtrusive methods can also be employed, such as listening to word-of-mouth conversations, seeing how many people pick up brochures and flyers, etc. For an excellent resource on other ways to measure non-quantifiable variables see Unobtrusive Measures, Eugene Webb (1966) M. What is the difference between a lab and a field test? When should each be employed? Lab tests are those that take place in a controlled environment. The major advantage of these tests is the control that they offer. The major disadvantage is the lack of reality and the potential for testing effects. Lab tests are appropriate when the research needs to isolate particular aspects of the advertisement. For example, is one source more effective than another? Is the message being comprehended as intended? Lab tests are more commonly employed as pretests. By isolating specific aspects of the ad, changes can be made to improve the effectiveness of the communication before fielding. Field tests are those that occur under natural viewing situations. The advantage is the reality that would be likely under such viewing situations, the disadvantage would be the lack of control. Thus with a field test, it is difficult—if not impossible—to isolate specific aspects of the communication. The measures taken are typically more comprehensive in nature, and look for the overall impact of the communication, or the impact of media. Field tests are more frequently used to posttest ads. IMC Exercise Assign students the responsibility of interviewing at least one business or non-profit organization’s person responsible for the marketing /promotional program. Have them ask whether effectiveness measures are taken. Have them report to the class what measures these are. If none are taken, have them suggest which might be used. IMC Comprehensive Project In your plan you identified a variety of messages that might be employed. Explain which measures of effectiveness would be employed. Report whether they would be used at the pre-test or post-test phase, and whether they would employ lab or field methodologies. Chapter 10 Media planning and budgeting for IMC Answers to Review Questions 1. 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. 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 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 audience may allow for an emphasis on frequency, and the minimization of waste coverage, thus placing less emphasis on reach. 2. Describe what is meant by waste coverage. The decision must often be made between waste coverage and under-coverage. Give examples of when the marketer might have to choose between the two, and when it may be acceptable to live with waste coverage. Of course, the optimal situation would be one in which there is a perfect match between the target audience sought and the media coverage, with everyone getting potential exposure to the message, and those not in the market not being exposed. In reality, this is not going to happen, so the marketer must choose between the options of under-exposure or paying for coverage for recipients not in the target audience. In some instances, the budget may not allow for full market coverage under any situation. In other situations, the communications objectives, the cost of the media buy and other factors must be taken into consideration. Most marketers would likely argue that they would rather live with waste coverage, insuring that most if not all in their audience were exposed, rather than under-coverage, as those not exposed are much less likely to purchase the product or service. A recent trend in business to business advertising is to buy time and/or space in consumer oriented media rather than the more targeted trade publications. While perhaps only a small percent of the audience or readers is in the target audience, media buyers have found that it is still more cost efficient to purchase the less-targeted medium than it would be to buy trade magazines, etc., even though there is a high degree of waste coverage. A final consideration is the potential to convert non-prospects into buyers. While the market may be defined as a specific group (let’s say 18-24), those on the fringe (17, 25) may end up seeing the ad and ultimately purchasing—even though not in the primary target audience. In such cases, what was thought to be waste coverage really was not. 3. What is meant by readers per copy? How is this different from CPM? Explain the advantages and disadvantages associated with the use of both. 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. 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. In many cases, the actual number of readers per copy is little more than a guess. More and more media are presenting relative cost comparisons in terms of CPM rather than CPP (cost per point). 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 4. Identify the information resources required to calculate the budget using the objective and task method. A number of information requirements are needed to perform the objective and task method; the size and location of the target audience, precise definition of the communication tasks required, cost information for all media considered, reach and possible frequency estimates for each media vehicle. This extensive lists illustrates why this method is not commonly done as the work involved is quite extensive. 5. What factors influence the budget allocation to different media or different IMC tools? The marketing objective in terms of sales or share is a major factor as these contribute to the target audience selection and the subsequent behavioural and communication objectives. Beyond this, planners would need to consider how media and IMC tools will contribute to these objectives and fit with the decision-making process of the target audience. Internal organizational factors and relationship with the different marketing communication agencies can also influence the decision since these participants will put forth their own suggestions and recommendations. Answers to Applied Questions 1. One long-time 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 questioned due to methodological difficulties. 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 a certain night 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, 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. 2. Visit the website for a two magazines of the same genre and locate their media kit that tries to attract advertisers to their particular media vehicle. Investigate how each magazine tries to persuade advertisers and decide which magazine would be most suitable to advertise. This should prove to be an illuminating activity so that students can appreciate the wealth of data available for each media vehicle and to see the extensive promotion of media vehicles to entice advertisers. For example, the media kit for Canadian Living 2014 is a pdf comprised of 22 pages with colourful imagery, multiple tables showing the audience profile, the placement costs, production requirements and schedule in addition to a few other items. In contrast, Chatelaine shows a few tabs of the basic information and nothing more. Student could certainly compare others, but these are the foremost magazines with a female readership skew and offer a good example if students do not come to class with a good example. 3. Calculate the CPM for five or six different media vehicles that are interesting or topical. This exercise can be done in conjunction with question 2 since students will be looking at the media kits. Alternatively, students can try to locate multiple print vehicles in CARD and calculate the CPMs. Whatever the selection, the students should be questioned on explaining why the numbers differ. For example, a vehicle could have a very selective audience with a low readership, thus driving up the CPM. Guidelines on comparing similar media vehicles could be offered as an extension to the question. 4. Assume that a new entry level car brand wants to achieve thirty percent awareness among graduated students aged 21 to 24; calculate how much would have to be spent in the budget to achieve this objective. This is a very challenging question for students as it is an application of the objective and task method of budget setting. They have to estimate the number of students first from a secondary data source. From this, reach and frequency decisions need to be made taking into account any geographical skews in the data in order to show how the 30% awareness could be achieved. Media selection is next which would likely require multiple avenues. This part would open up debate on whether TV would still provide sufficient coverage. Alternatively, consideration of Internet ads for young people watching a “TV” show online would likely be evaluated by most students. Once the media selections have be done, the costs for each need to be worked into the calculations along with the earlier estimates for reach and frequency. In the end, an estimated budget based on the task of awareness should arise. An extension question could investigate how the budget would need adjusting to achieve other objectives. 5. For an up-and-coming brand of fashionable jeans, a re-branded local night club for dancing, and an established energy drink, identify the most appropriate media budget allocation (in percentages) to create awareness. Do the same for all three brands with respect to IMC tools. Instructors could tabulate many alternatives in a class discussion and get students to express the reason for their decisions. Each of the product selected fit within the life of a young student and all three are at different stages of the PLC, new product, rebranded, and mature which should prove to be a challenge to wrestle with and offer divergent opinions across the three options. The first question looks to see how the students will allocate the budget across different media in a pure advertising recommendation, while the second looks at the budget for multiple IMC tools. Of course there will be some overlap where an IMC tool might require advertising. For example, if a brand is sponsoring an event, it might advertise the sponsoring in media, so from a budget and communication effects standpoint, it is both advertising and both an IMC tool. So in the end, this exercise draws upon the key part of IMC planning which is the link between the IMC tools to achieve objectives. Additional discussion questions (not in the text) A. 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. 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 10-8 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. 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. B. Discuss some of the factors that are important in determining frequency levels. Give examples of each factor. Figure 10-14 identifies 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. C. 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 was not 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. D. 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. E. Describe the three methods of promotional scheduling. Give examples of products and/or services that might employ each method. The text discusses the three scheduling options available to the marketer. Given the fact that there are always budgetary constraints, and that some products/services do not need to be marketed year round, scheduling allows for more efficient allocation of advertising and promotional dollars. The scheduling options available are: Continuity—A continuous schedule refers to constant advertising throughout the year, either daily, weekly or monthly. Products that would be most likely to employ this scheduling method include products that would be used consistently throughout the year with no seasonal variations. For example, toothpaste, mouthwash, laundry detergent, etc. Flighting—This schedule has intermittent periods of advertising, with times when there is advertising and others when there is none. The “on” advertising time is referred to as flights. Seasonal products (snow skis), swim wear and other products primarily consumed at some times of the year but not all year round would employ this method. Banks have used flighting, recognizing that consumers are much less involved in making banking decisions around the holiday season in November and December. One of the advantages of flighting is the ability to extend the limited ad budget. Pulsing—A combination of the previous two methods, pulsing employs a continuous schedule with periods of increased advertising to take advantage of intermittent opportunities. A good example of this is beer advertising, which takes place continuously, but increases at holiday times. F. 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. 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 10-12), 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! G. Figure 10-27 shows that advertising spending and effects may differ in different competitive environments. Explain each of the four scenarios presented and give examples of brands in each of these cells. Advertiser’s Advantage—In this case, one’s brand is stronger than that of the competition. Given the competitive advantage, the brand should focus on advertising versus other promotional tools. The reason for this is that advertising serves as a reminder as well as an introduction to the brand. Given the brand’s strength, incentives—some of which may be costly—are not required. Rather, keeping the brand in front of the consumer, and maintaining a brand image may be most important. An example may be the Apple iPod versus other MP3 players. Apple is clearly the dominant brand, and should focus on communicating its brand image and benefits. There is no need to offer discounts. Symbiotic competition—Brands competing in a growing market that complement each other should still focus on advertising. The adoption of satellite radio by auto manufacturers offers consumers an attractive option to enhance their driving experience, and a competitive advantage to competitors not offering such an option. For both the automobile and the satellite radio company (i.e., BMW and Sirius), continued advertising of the brand is likely to benefit both. Zero-Sum Competition—In a mature market, one of the ways to gain market share is by taking it from the competition. Thus, increases in advertising may lead to gaining share, and may have to be matched to ward off the competition by others. Consider the competition between Energizer and Duracell, while the market for batteries is growing very slowly or may even be flat, both companies will continue to advertise in attempts to gain share and defend against the other as well. Competitor’s Advantage—In a market situation in which a company’s brand is inferior to the competition, head to head advertising may not be the best strategy. By gaining a niche position, and focusing on promotional tools as opposed to advertising, some share may be gained. Using batteries as an example, again, consider the smaller share brands such as Panasonic, EverReady, etc. Head to head advertising battles are not likely to be effective. On the other hand, offering coupons, sweepstakes, etc. may entice the consumer to try the brand, and sales may increase. H. 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. • 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 required 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. I. 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. The percentage of sales method, while a commonly employed method of budget setting, has its disadvantages. Perhaps the major disadvantage is the fact that the advertising budget is based on the amount of sales generated, not as a basis for achieving sales; and thus 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. J. Discuss the two sales response models described in the text. Explain the differences between the two models. Provide examples of type of products that might follow each of these response curves. The s-shaped response curve makes the assumption that certain levels of advertising expenditures must be reached before any noticeable impact on sales will occur. According to this model, initial outlays will have little or no noticeable impact on sales, then additional outlays will have a very noticeable effect to a point at which sales will level off and additional expenditures will again have little or no impact. The concave-downward model follows the economic model of the law of diminishing returns. That is, as the amount of advertising increases, its incremental value decreases. Thus, the effects of advertising would be felt almost immediately then begin to decrease. As can be seen, the models differ substantially in respect to the impact of advertising expenditures In the former model, the impact of advertising will not even begin to be felt until a certain level of expenditures has been reached. Those who believe that advertising spending has a cumulative effect would adhere to this model. In the concave downward model, the impact takes place almost immediately, with incremental expenditures having less and less value. The models would also differ in respect to the types of products being advertised. For example, the S-shaped response curve would seem to indicate an ability of the advertising to stimulate sales, both through the provision of information and throughout persuasive capabilities. As noted, it would support the fact that ads have a cumulative effect, and the additional ad spending may lead to additional sales. The concave-downward model, on the other hand, would argue that consumers are already in a mind set to buy or not buy, and the value of the advertising is primarily to inform not to persuade. Additional levels of ad spending will not be effective in changing one’s mind, or motivating them to purchase. If these assumptions are true, it would seem that for high-involvement products, the concave downward model would be more likely to be operating, while the S-shaped response might better explain products for which the consumers’ mind has not already been made up. In other words, the concave model assumes there will be little or no search, or that this search has been concluded. the ads primary impact is on the decision to buy. (Otherwise, additional expenditures would be likely to be effective at the search stage). The S-shaped model would seem to be more effective when the decision hasn’t yet been made, and the consumer can still be impacted by the ads. IMC Comprehensive 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. Chapter 11 Broadcast media Answers to Review Questions 1. Television is often described as a mass medium that offers little selectivity to advertisers. Do you agree with this statement? What are some of the ways selectivity can be achieved through TV advertising? For many years television was essentially a mass medium. However, some selectivity has always been available due to variations in program content, broadcast time and geographic areas. For example, Saturday morning cartoon shows appeal primarily to children while weekend sports programs are watched primarily by males. Geographic selectivity is possible through local of spot ads in specific markets. With the growth of cable TV television has become less of a mass medium. The major networks now account for less of the prime-time viewing audience and the market has become very fragmented. The selectivity of TV has increased significantly as advertisers can reach groups with specific interests such as sports, news, music, the arts or business on cable channels. There is even greater segmentation within these television programming categories. For example, the Golf Channel is a new cable network devoted entirely to the sport. There are cable networks devoted to a variety of music genres, such as MuchMusic and MusiquePlus, as well as to business and financial news (Report on Business Television). 2. Discuss the strengths of television as an advertising medium and the importance of these factors to major national advertisers and to smaller local companies. Television has often been described as the ideal advertising medium because of the many advantages it offers. These include the opportunity TV offers for developing creative and imaginative messages with high impact; its wide coverage and ability to reach large audiences in a cost-effective manner; the captive nature of the TV viewing audience which usually results in attention to commercials; and the selectivity and flexibility television offers for reaching various types of target audiences, particularly with the growth of cable television. These factors are very important to major advertisers such as automobile companies or packaged goods marketers. These companies are generally trying to reach mass audiences with their advertising messages and television is an excellent media vehicle for doing this. However, they can also take advantage of the selectivity TV offers through various programs or cable channels to reach more targeted audiences. Automobile companies and packaged goods marketers also rely heavily on the creativity and impact that is possible through TV commercials. These companies use the sight, sound and visuals offered through television to create high impact ads, develop images for their brands, and develop emotional or entertaining appeals. Television advertising can be particularly valuable for creating emotional or entertaining appeals that help make a low involvement product more exciting or interesting. Of course there are limitations to television as an advertising medium, even for major advertisers with large budgets. Television can be a very expensive medium for national advertisers and production costs for high quality commercials are also very high. The viewing audience for television programs is becoming increasingly fragmented with the increase in the number of channels available to viewers. Clutter also continues to be a problem so many minutes per hour of commercials. The increase in the number of homes with digital video recorders is not yet a major problem but is likely to be so in the near future. For smaller local companies, television has become a more viable medium in recent years. Local companies such as retailers, car dealers, restaurants and other merchants are spending a greater portion of their media budget on TV, particularly on local cable where the rates are low and they can target a specific market segment. Being able to use TV allows them to take advantage of the creative power of television. However, local companies also face some of the same problems as national advertisers such as audience fragmentation and competition from other media. Local companies also often lack the budget to produce high quality TV commercials which can limit the effectiveness of the commercials they run on television. 3. Discuss the methods used to radio audiences. Do you think that the measurement methods being used for each are producing reliable and valid estimates of the viewing audiences? National network viewing audiences are measured by BBM Canada. BBM uses a diary method that requires respondents to record their viewing at 15 minute intervals. Demographic information is collected for each respondent so that viewership by age, income, occupation, education and geographic location can be estimated. While BBM receives back 40% of completed diaries, some are not filled out correctly and this may affect reliability. BBM is implementing a people meter program to overcome some of the measurement deficiencies associated with diaries. There is, of course, a considerable amount of debate over the reliability of audience measures. The measurement of television viewing audiences is very difficult and some variability must be accepted. However, since these measures are used to determine advertising rates, marketers want them to be as accurate as possible. The use of the diary method is likely to provide less accurate measures since there are problems with diary households not filling them out regularly and/or accurately. There also are problems stemming from the fact that many consumers are zapping commercials and then coming back to the program after the commercial break. This means that the actual viewing audience for the commercial is not as large as that for the program. One way of improving measurement of local viewing audiences is greater use of the portable people meters rather than relying on the diary system. Another way is by increasing the sample size. Larger sample sizes will decrease sampling error and also provide better representation of specific demographic segments. 4. What are the strengths and limitations of advertising on radio? What types of advertisers are most likely to use radio? Advantages of advertising on radio include its low cost and efficiency. Radio commercials are inexpensive to produce and the cost of advertising time on most stations is relatively low. This allows advertisers the opportunity to build more reach and frequency into their media schedules. Another major advantage of radio is the high degree of audience selectivity available through various program formats and geographic coverage of the numerous stations. Radio is also a very flexible medium with very short closing periods for running a spot and also offers the potential for mental imagery in the creation of a commercial. Many radio stations also offer valuable merchandising assistance and support to advertisers. Disadvantages of radio include creative limitations due to the absence of a visual image, a high level of audience fragmentation because of the large number of stations, chaotic buying procedures for purchasing radio time, limited amount of research data on radio audiences and limited listener attention (particularly in cars where station changing occurs frequently or where commuter are talking on cellular telephones). Radio is most likely to be used by local advertisers such as retailers. However, radio has also become a popular medium for national advertisers, particularly those with products and/or services which appeal to hard-to-reach audiences such as teenagers. 5. How can TV best be used to work with social media? TV ads can direct viewers to the social media vehicle naturally with their brand at the conclusion of the ad for an extended message. Any other IMC tool that may be advertised on TV can be featured (e.g., contest, cause-related activity) and the viewer directed to the social media vehicle for the execution of the sales promotion or request for involvement with the cause. An interactive scenario could be possible where one TV ad invites Twitter comments, and then a subsequent TV ad 30 minutes later could be incorporated with the Twitter messages. Of course, any content seen from any social media vehicle can be the essence of a TV message. Students should be encouraged to think creatively, brainstorming for new ideas or recalling examples they have experienced. Answers to Review Questions 1. Watch a show on TV and make notes on what ads are shown. Find the equivalent show on the network’s website and makes notes on what ads are shown. What similarities and differences do you notice? This should be a very interesting short assignment that can be the basis for some interesting class discussion. Students should pick TV shows during non-prime time day-parts (e.g., early morning, afternoon, late fringe) and list the products and services advertised, and analyze the type of consumers these advertisers are targeting. Similar time periods and questions can be done for online shows and ads to see if there is any difference. 2. Watch TV or listen to the radio and make note on whether the ad directs the receiver to any aspect of digital media (e.g., social network). This task represents another perspective of question 5 from both sections of questions. The contribution of each media assisting one another for overall communication effects is one of the most exciting aspects of new media. Students should try to classify whether the usage is straight advertising messages of the brand or whether the media is used in the execution of other IMC tools. 3. Listen to the radio and make notes on what ads are shown. What similarities and differences do you notice in comparison to TV advertising? This is another comparison task to allow students to observe that many ads on the radio will be for products that do not require a visual as much to achieve communication effects. Alternatively, the ads will support the visual media of the brand in order to gain additional frequency at a lower cost and to encourage purchase intention with reminder messages. Another feature is to encourage students to experience radio messages as many are gravitating away from such media. 4. Listen to a radio station and pay attention to the ads to assess whether any use the idea of image transfer? Imagery transfer refers to a technique whereby the images of a TV commercial are implanted into a radio spot. This can be done by establishing the video image of a TV commercial and then using the audio portion as the basis for the radio message so that consumers hearing the radio spot will make the connection to the television ad. Coordination of radio and television commercials is often done by national advertisers in particular. Students should be encouraged to find and evaluate current examples of campaigns using image transfer techniques. 5. How can radio best be used to work with social media? Similar ideas found in question 5 of the other set of questions are quite logical here. Again, students should be encouraged to think of new ideas. Instructors could augment the question to focus on a specific brand if they like to make the exercise more applicable to an identifiable context. Additional Discussion Questions (not in text) A. Discuss the strengths and limitations of advertising on specialty channels. Discuss how both large national advertisers and small local companies might use this TV option effectively. There are several advantages including the opportunity for advertising to very specialized markets that tune to a particular channel, its lower costs, and the greater flexibility in the type of commercials that can be used. In that regard, a big advantage is the ability to use longer commercials that can communicate more detailed and complex messages. Limitations include that it is still overshadowed by the major networks as most households still watch considerably more network programming.. A final problem is its lack of penetration in many markets. Cable penetration is currently at about 73% of Canadian households, which means nearly a quarter of the market cannot be reached on cable. While the growth in the number of specialty channels has resulted in much greater audience fragmentation, it has also provided advertisers with much greater selectivity. Specialty channels make it possible for advertisers to reach very specialized market segments since they carry a specific type of programming that appeal to certain audiences. A number of developments are likely to affect the advertising industry. The number of channels available will continue to increase which will result in more audience fragmentation but allow for even greater selectivity. It will also continue to be a popular source of sports programming, particularly at a local and regional level. Television service providers are promoting the high-speed access to the Internet that is available through cable modems and digital cable boxes. Another important impact of cable will be at the local level as advertisers such as more retailers and service companies are advertising on their local cable systems. B. Analyze reasons for the boom in televised sports programming. How can marketers capitalize on the growth of sports programming in developing IMC programs? The growth in sports programming is due to a number of factors. People have a tremendous interest in sports and are watching sporting events, sports news shows and various other types of sports-related programming more than ever. The major broadcast and cable networks have also increased their sports programming because televised sporting events attract free-spending young men, who constitute an important market segment for many advertisers. Media companies are improving the quality of sports programming which is helping attract more viewers. Marketers are capitalizing on the growth in sports programming primarily by building integrated marketing communication programs that center around event sponsorships. Nearly two-thirds of the monies spent on event sponsorship go to sporting events. Sports such as auto racing, golf, tennis, skiing, beach volleyball and others are attracting corporate sponsorships. Marketers are recognizing they can build integrated marketing programs around sporting events that include television advertising, sales promotion, publicity/ public relations and even interactive media. C. Discuss the methods used to measure network television viewing audiences and local audiences. Do you think that the measurement methods being used for each are producing reliable and valid estimates of the viewing audiences? How might they be improved? National network viewing audiences are measured by BBM Canada with the portable people meter that receives a signal from media once the wearer is in proximity. BBM uses a diary method that requires respondents to record their viewing at 15 minute intervals in smaller markets. Demographic information is collected for each respondent so that viewership by age, income, occupation, education and geographic location can be estimated. While BBM receives back 40% of completed diaries, some are not filled out correctly and this may affect reliability. BBM is implementing a people meter program to overcome some of the measurement deficiencies associated with diaries. There is, of course, a considerable amount of debate over the reliability of audience measures. The measurement of television viewing audiences is very difficult and some variability must be accepted. However, since these measures are used to determine advertising rates, marketers want them to be as accurate as possible. The use of the diary method is likely to provide less accurate measures since there are problems with diary households not filling them out regularly and/or accurately. There also are problems stemming from the fact that many consumers are zapping commercials and then coming back to the program after the commercial break. This means that the actual viewing audience for the commercial is not as large as that for the program. One way of improving measurement of local viewing audiences is greater use of the portable people meters rather than relying on the diary system. Another way is by increasing the sample size. Larger sample sizes will decrease sampling error and also provide better representation of specific demographic segments. D. Discuss the factors that media buyers should take into consideration when buying advertising time on radio. Media buyers take a number of factors into consideration when buying advertising time on radio. First they must decide whether they want to make a network or spot buy. National advertisers such as automobile companies or major business-to-business marketers are likely to purchase time on one of the radio networks since they are generally trying to reach a national audience. However, because of the limited geographic coverage of Canadian radio networks and their relatively low ratings, they do not generate very high reach. Companies who are interested in buying time in certain geographic markets and local companies such as retailers will be the major purchasers of radio time on local stations. A second major factor to consider is the audience that can be reached through various radio stations. Radio allows companies to focus their advertising on certain demographic and lifestyle groups. Various radio formats vary in popularity among different age groups. Radio stations also can appeal to listeners with various interests through programming that focuses on specific topics such as news, sports, finance and investments, computers, cars, and many other areas. Cost factors are also taken into consideration when buying radio time. As with any other type of media, media planners consider both the absolute and relative cost of advertising time on radio. Radio stations generally promote their ability to reach specific target audiences which increases the efficiency of an advertiser’s budget. E. Explain what is meant by zipping and zapping and how they affect television viewing behaviour. Discuss some of the ways advertisers can deal with the zapping problem. Zipping refers to the practice of fast forwarding through commercials during the playback of a program recorded on a PVR. Zapping refers to the use of a remote control to change channels and switch away from commercials during a break. The networks use a variety of tactics to hold viewers’ attention during commercial breaks such as showing previews of upcoming programs or short closing scenes at the end of a program. The ultimate answer to zap-proofing commercials, however, is to produce creative and meaningful spots that will attract and hold the attention of TV viewers. Techniques might help do this include the use of celebrities, humorous appeals or unique executions. Students should be asked to take note of any commercials that catch their attention and that they like and discuss why they might watch the ad rather than switching channels. F. Discuss how personal video recorders will influence consumers’ television viewing and how advertisers will likely respond to the changes. To some degree, a PVR will merely replace a VCR and the consumer will not change their viewing habits substantially as there is a choice to record a program and watch it whenever. Alternatively, a PVR offers a consumer greater convenience with many hours saved on a hard-drive vs. dozens of tapes. Furthermore, some of the technical advantages of a PVR allow enhanced viewing. In some respects, the advertiser is faced with the same problem, although the technological features may make the problem of zipping even more pronounced. The standard response to this problem is that commercials must be more creative, making them a compelling visual to experience. Associated public relations to enhance publicity of campaigns might also be necessary so that consumers are primed when deciding upon their selective exposure. Greater product placement may emerge although its growth may have reached its peak over the past decade. With such consumer power of recording, and then potential digital distribution of media conveniently on the Internet, advertisers might actually want to be more consistent in their advertising over time to avoid many different types of brand messages publicly available. Certainly other scenarios are plausible. IMC Exercise There are many advantages to advertising on cable TV including the opportunity for narrowcasting or reaching a very specialized market and greater flexibility in the type of commercials that can be used. Select a popular cable network. Analyze several of the different programs on this network and the types of companies who advertise on these shows. Discuss the types of commercials used by the advertisers on these programs with respect to factors such as creative style, objectives, length and format. Do the commercials appear to differ from those found on the major networks? IMC Comprehensive Project Students should analyze how the broadcast media of television and radio might be used as part of the media plan for their project. The specific assignment is as follows: IMC Project Assignment for Chapter 11 Analyze the role of television and radio in the media plan for your product or service. Your analysis should focus on how TV and/or radio can be used to reach the target audience and help achieve your media objectives. What are the advantages of using TV and/or radio? What percentage of your media budget will be devoted to broadcast media? Do you plan on using both network and cable programs as part of your TV media schedule? What specific network and cable programs will be use in your media schedule and why? Discuss how radio might be used as part of your media plan. Chapter 12 Print media Answers to Review Questions 1. Discuss how circulation figures are used in evaluating magazines as part of a media plan and setting advertising rates. Circulation figures represent the number of individuals that receive a publication, either through subscription or store/newsstand purchase. Total audience or readership refers to the total number of individuals who read a magazine or newspaper and is determined by taking the readers per copy and multiplying this figure by the circulation of the average issue. Magazines use circulation figures and readership estimates to set their advertising rates. The greater the number of readers the publication can deliver, the more than can charge for advertising space. Media buyers often prefer to use circulation figures of a publication in making their purchases since they are more verifiable. Total audience or readership figures rely on estimates of pass-along readership which occurs when the publication is read by individuals other than the primary subscriber or in places out of the home such as waiting rooms, airplanes, etc. Media buyers generally attach greater value to the primary in-home reader versus the out-of-home or pass-on reader as the former generally spends more time with the publication, picks it up more often and is thus more likely to be attentive and responsive to advertising. 2. Discuss the strengths and limitations of magazines as an advertising medium. How do magazines differ from television and radio as advertising media? There are numerous advantages of magazines as an advertising medium. These include their selectivity or ability to reach specific target audiences, their reproduction quality, creative flexibility in terms of the type, size and placement of advertising material, their permanence or long life span, the prestige associated with advertising in some publications, consumer receptivity to and involvement with magazine advertising, and the special services offered by some publications. Disadvantages or limitations of magazine advertising include the high absolute costs of advertising in many publications, the limited reach and frequency (particularly for individual publications) the long lead time often required for placing an ad, and the problem of advertising clutter and competition among the numerous ads for the readers’ attention. Magazines and newspapers play an important role as advertising media in an integrated marketing communications program. They allow the presentation of detailed information that can be processed at the receiver’s own pace whereas TV and radio are externally paced media which means the receiver cannot control the rate at which the information is processed. Magazines are more suitable than the broadcast media for delivering detailed ads with a great deal of information or visuals that the reader needs time to study or examine. However, magazines are not as effective as television for reaching mass audiences and they offer advertisers the same creative options that are available through TV commercials. 3. Discuss how circulation figures are used in evaluating newspapers as part of a media plan and setting advertising rates. Circulation figures represent the number of individuals that receive a publication, either through subscription or store/newsstand purchase. Total audience or readership refers to the total number of individuals who read a magazine or newspaper and is determined by taking the readers per copy and multiplying this figure by the circulation of the average issue. Newspapers use circulation figures and readership estimates to set their advertising rates. The greater the number of readers the publication can deliver, the more than can charge for advertising space. Media buyers often prefer to use circulation figures of a publication in making their purchases since they are more verifiable. Total audience or readership figures rely on estimates of pass-along readership which occurs when the publication is read by individuals other than the primary subscriber or in places out of the home such as waiting rooms, airplanes, etc. 4. Discuss the strengths and limitations of newspapers as an advertising medium. How might the decision to use newspapers in a media plan differ for national versus local advertisers? Newspapers have a number of advantages that make them popular among both local and national advertisers. These include their extensive penetration or market coverage, their flexibility in terms of production requirements and short closing times, the geographic or territorial selectivity of newspapers, the high level of involvement and acceptance consumers have with newspapers and the advertisements therein, and the valuable services many papers offer. Limitations of newspapers include their poor reproduction quality, the short life span of daily papers, their lack of selectivity with respect to demographics and lifestyle and the clutter problem that results from the vast number of ads in most papers. The decision to use newspapers in a media plan may differ for national versus local advertisers because of the rate differential that papers charge the two types of advertisers. The rates paid by national advertisers are considerably higher than those paid by local advertisers. Thus national advertisers may be less willing to use newspaper advertising or may try to avoid the higher rates by channeling their newspaper ads through special category plans, cooperative advertising deals with retailers, and local dealers and distributors that pay the lower local rates. 5. How do magazines and newspapers help achieve brand behavioural and communication effects? Both media are high-involvement which contribute substantially to category need, brand attitude and brand purchase intention objectives. Consumers are in a reading situation, and when attended to, the message can be especially convincing with rational arguments augmented with appropriate emotional message content. The desire of readers to experience a magazine on multiple occasions increases frequency potential which can contribute to awareness. The message content can also designed maximize brand exposure assisting in brand awareness as well. In short, all communication objectives can be obtained with magazines; however, the coverage is not excellent with many magazines having very low readership levels. Newspapers suffer on this latter point as they are discarded on a daily basis; however frequency can be built in with additional exposures during daily placements. Of course the drawback of this is the additional cost versus magazines. Answers to Applied Questions 1. Explain why advertisers of products such as cosmetics or women’s clothing would choose to advertise in a publication such as Flare, Elle Canada or Chatelaine. Women are very likely to be receptive to ads for cosmetics or clothes in these publications. In fact, one might argue that one of the reasons women buy fashion magazines such as Flare, Elle Canada or Chatelaine is to see the ads. For example, clothing ads provide some insight into new styles and fashions and will be of great interest to many of the magazines’ readers. Advertisers will tolerate the high number of ads in these publications because they create a very favourable environment that includes high quality photography and artwork as well as articles that are of interest to women. 2. Select an enjoyable print ad from a magazine and apply the earlier text material. Identify the target audience, behavioural objectives, communication objectives, brand positioning strategy and the creative strategy and tactics decisions; and associate these points with the key strengths of magazines as an advertising media. This represents an assignment that the Canadian author uses. It is a good application of the material and requires the student to make a decision on a number of points where there is likely some debate or interpretation as to what is really going on. Of course, the brand could have had an entirely different idea on the direction and purpose of the ad, however this exercise gives the student a good opportunity to develop confidence making a decision on the key concepts of this and other chapters. 3. Explain why advertisers of products such as smartphones or men’s clothing would choose to advertise in newspapers such as The Globe and Mail, Vancouver Sun, or Metro. Each of these three media vehicles offer the breadth of selection for newspaper advertising; national newspaper and city newspaper that require payment, and a city newspaper that is free. To some degree Metro is not a city newspaper since much content is not local and fits with all of the cities in which it has distribution, so it may be seen as a mid-point between the other two. Each would suit men’s clothing, but likely different brands and different retailers that have corresponding fit between the readership and the target audience. Alternatively, the wide spread usage of smartphones, we could expect to see all major brands advertising in all three publications. In this case though, brands might adjust the message and image to be more fitting of the readership of each newspaper. Of course brands in each product category may make other adjustments if there is a stronger concentration of its customers with a particular publication. 4. What differences might one conclude between national newspapers and community newspapers regarding the strengths and limitations of newspapers? Community newspapers provide excellent target audience coverage for the local market at a reasonable relative and absolute cost while national newspapers are wasted coverage for local advertisers even with regional editions that they offer. National newspapers offer stronger reproduction quality with their superior printing technology and offer a better emotional experience to influence attitudinally. Much of the other evaluation criteria are quite similar. One might suggest that the media image is substantially different with neither the winner as they each serve a readership niche. This might imply an advantage for certain types of advertisers however. Students are encouraged to consider one or two other significant differences. 5. Identify how newspapers and magazines can be used for each stage of the decision-making process for automobile purchases. Ads in both media can highlight need recognition very easily with an appropriate headline to attract attention with relevant copy in the message. Newspapers might be more useful for information search and evaluation of alternatives, although one could not claim that magazines are weak in this regard since the format offers good opportunity to do comparative ads. From a purchase decision standpoint, neither might be considerably strong, but the frequency potential with repetitive viewings in a magazine might sway this one. Post-purchase evaluations may be more influential with magazines due to the ability to capture emotionally with better visuals and stronger reproduction. Additional Discussion Question (Not In Text) A. Describe what is meant by selectivity with regard to the purchase of advertising media and discuss some of the ways magazines provide selectivity to advertisers. Selectivity refers to the ability of an advertising media vehicle to reach a specific target audience. Magazines provide selectivity to advertisers in a number of ways. Most magazines are published for readers with specific interests and lifestyles or who are involved with or work in a specific profession, business or area. Magazines also offer demographic and geographic selectivity. The editorial content of various magazines generally appeals to specific demographic groups based on factors such as gender, income, occupation, and education. Magazines also offer demographic selectivity through special editions that are targeted at different demographic segments. Geographic selectivity is possible as magazines can make it possible for advertisers to focus on certain cities or regions. This can be done by advertising in a magazine that is targeted to a particular geographical area such as a regional or city magazine. Geographic selectivity is can also be achieved in magazines by purchasing ad space in specific geographic editions of national or regional magazines. B. Choose a specific target audience that an advertiser might want to reach. Discuss how magazines and/or newspapers could be used to reach this particular market in a cost effective manner. First of all it should be noted that selectivity is an inherent advantage of advertising in many magazines. Most magazines are published for special-interest groups and allow advertisers to target segments of the population that are of interest to them. In addition to selectivity based on interests or topic, magazines can also provide demographic and geographic selectivity. This can be done through editorial content as well as through special demographic and geographic editions offered by many publications. Many magazines are also offering greater selectivity through processes such as selective binding and ink jet imaging. Readers can be targeted by postal code, metropolitan area, region or demographics. Students should be asked to choose a product or service targeted at a specific market and discuss how magazines are an effective way to reach this group. They might even contact a magazine and ask for a media kit which usually provides very detailed information on how the magazine can reach specific target audiences and users of various products and services. Newspapers have the advantage of offering advertisers geographic selectivity since they can reach areas or cities of specific interest to them. However, newspapers are not a selective medium in terms of demographics or lifestyle characteristics. One way advertisers can increase selectivity of newspapers is by advertising in certain sections of the paper such as the sports, food, entertainment or business section. Within a local market area advertising in specific geographic or zone editions of a paper can enhance selectivity. Many newspapers in large metropolitan areas offer zone editions so local retailers can reach readers in their trading area. Again, students might be encouraged to contact a local newspaper (even the college paper) and request a media kit or information on advertising rates. C. If you were purchasing magazine advertising space for a manufacturer of snowboarding equipment, what factors would you consider? Would your selection of magazines be limited to snowboarding publications? Why or why not? In purchasing magazine space to advertise snowboarding equipment the media planner would obviously want to know what publications are best suited for reaching snowboarders and their advertising space rates. Consideration should also be given to the amount of advertising for snowboarding equipment that appears in these publications and the problem of getting the company’s ad noticed among all the competing ads. North American marketers of snowboarding equipment limit their advertising to publications that focus specifically on this market such as Snowboard since virtually all of the readers of these publications are snowboarders and there would be very little, if any, wasted circulation. Companies might also consider running ads in skiing magazines such as Ski, Skiing or Powder as readers of these publications may also be snowboarders. However, one problem of advertising in snowboarding or skiing publications is the high amount of competition from ads for other companies’ equipment which may make it difficult for the company’s ad to get noticed. Consideration also has to be given to the number of snowboarders who may be viable prospects for the equipment but do not read any of the snowboarding skiing publications. To broaden its reach, the company might want to look at other magazines that reach snowboarders such as general sports publications (e.g., Sports Illustrated), outdoor magazines, or other publications that reach this age and lifestyle group. A problem the company faces in advertising in these general publications is that of wasted circulation as many of the readers may not be snowboarders. Thus, advertising in general sports or outdoor magazines may not be as cost-effective as the more narrowly targeted snowboarding or skiing publications. D. Discuss why companies brands choose to publish their own magazines. Do you agree or disagree with critics who call some of these custom magazines “phony publishing”? Some companies publish their own magazines because they are a very good way to provide detailed information to their customers. The company controls all of the editorial content in a custom magazine and thus can provide readers with what ever type of information they feel is appropriate and, of course, is beneficial to the company. Custom magazines are valuable to a company such as Sony since it carries so such as wide variety of electronic products ranging from televisions and video equipment to stereos and digital cassette players. Custom magazines allow these companies such as Sony to provide readers with advertising as well as other forms of information in a manner that is more cost effective than media advertising. Some people in the publishing industry are very critical of custom magazines and refer to them as phony publishing because they are controlled entirely by the advertiser and sometimes represent themselves as independent publications. The basis of the criticism stems from the fact that the companies who publish the magazines also control the editorial content and thus can write articles that are biased in favour of the company and its products or services. If consumers are not aware of the fact that the company publishes the custom magazine, they may interpret this favourable information as coming from a neutral, objective source and thus attribute more credibility to the stories. On the other hand, if the companies make it clear to consumers that they are publishing the custom magazines and they still choose to read them, then it is difficult to criticize them. E. The number of magazines has increased substantially in the past five years. What could have caused this recent trend? As Figure 12-8 shows, Canadian magazines experienced tremendous growth in comparison to the USA, and the trend is fairly strong and consistent from about the time the Internet grew. As advertising revenues statistics indicate, it appears that newspaper revenue is being lost to Internet revenue. Consequently, personal reading of print publications might be substituted from newspaper to magazines, as consumers receive more of their news information from the Internet. With greater use of media with less selectivity, it appears advertisers are looking for some avenues for some selectivity in their plans, a key strength of magazines. Thus, publishers noting their customers’ preferences respond to the new found demand with some creative supply options. Finally, as a couple of examples suggest, building on Canada’s growth in the global cultural market, Canadian publishers are expanding internationally. F. What factors could explain the lower readership of newspapers compared to a few years ago? The growth of the Internet represents both a challenge and opportunity for newspapers. Newspapers are a source of information but also a form of entertainment. With the growth of the Internet and online services, more consumers will be spending time “surfing the net” which means they may be spending less time reading newspapers. People only have so much time available for leisure activities such as reading or watching TV and the Internet is likely to cannibalize some of the time that might have been spent reading a newspaper. Newspapers are responding to this challenge by making their publications available online. Some studies have shown consumers are comfortable with the idea of reading newspapers over the Internet. This means that it will be very important for publishers to make their newspapers available online. However, there are still many problems associated with issues such as audience measurement and the ways to sell advertising on these electronic versions of the publications. IMC Exercise Choose a specific consumer or business magazine and analyze it from an advertising perspective. If time permits you might write or call the publication to request a media kit from the publisher. Your report should include an analysis of the following: • The target audience for the magazine in terms of both demographics and life style of its readers. • The percentage of the magazine’s pages devoted to advertising versus editorial content. Is there a clutter problem in the magazine? • A breakdown of the types of products and services advertised in the magazine. Why do you think these advertisers are attracted to this particular publication? • An analysis of the editorial climate and mood created by the publication and how it affects who chooses to advertise in it. How might the editorial climate of the magazine affect readers processing of the advertisements? IMC Comprehensive Project Students should analyze how magazines and newspapers might be used as part of the media plan for their project. The specific assignment is as follows: IMC Project Assignment for Chapter 12 Analyze the role of magazines and newspapers in the media plan for your product or service. Your analysis should focus on how magazines and newspapers can be used to reach the target audience and help achieve your media objectives. What percentage of your media budget will be devoted to magazines and newspapers? What class of magazines and specific publications do you plan to use and why? If you plan to use newspaper advertising what are some of the factors you need to consider in making effective use of this medium? You should consult a source such as Canadian Advertising Rates and Data to get rate information on the magazines or newspaper you plan to use. You might also consider contacting some of the publishers to request media kits on their magazines. Solution Manual for Advertising and Promotion: An Integrated Marketing Communications Perspective George E. Belch, Michael A. Belch, Michael A. Guolla 9780070891302