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Chapter 5: Demographics and Media Planning SUMMARY Now we will explore the pivotal role of demographics in media planning. Demographics encompass factors like age, gender, income, education, and ethnicity, crucial in defining our target audience. Over the years, demographics have evolved significantly. Traditional family models like 'Leave It to Beaver' have shifted with more women joining the workforce. Ethnic diversity is growing, influencing media planning. Two key strategies in media planning stand out: the underdelivery approach, addressing shortfalls in ethnic media, and the marketing vs. media approach, recognizing the importance of specific ethnic groups. Additionally, we discuss the economic impact of targeting, where understanding cost trade-offs based on demographics is essential. SWEEPSTAKES Now, let's apply the insights from Chapter 5 to a real-world example. Imagine you're running a sweepstakes campaign, like the Danimals sweepstakes featuring Dylan and Cole Sprouse, stars of the Disney Channel's "Suite Life on Deck." In this case, your target audience primarily consists of younger viewers who enjoy shows like these. Understanding your audience's demographics, in this case, age and interests, is crucial. You'd tailor your advertising strategy to focus on platforms and channels popular among this demographic, such as Disney Channel or online platforms where younger audiences are active. It's about maximizing your campaign's effectiveness by aligning your message with the right audience. Chapter 6: Geography's Role in Planning SUMMARY Geography plays a significant role in determining where and how we allocate resources. We analyze sales data by geography using the BDI/CDI method, a valuable tool that helps us identify market strengths and weaknesses. We plot our results on a quadrant chart, distinguishing areas of strength and opportunity. The Brand Opportunity Index (BOI) helps us prioritize growth markets effectively. We also explore the impact of distribution, which can significantly affect market performance. Additionally, we discuss how different media can be applied to various geographical levels, optimizing our media planning strategies. Understanding the economies of scale and the benefits of national advertising are also key takeaways from this chapter. SWEEPSTAKES Now, let's consider how the principles from Chapter 6 relate to our sweepstakes campaign. In the case of the Danimals sweepstakes, geographic targeting plays a significant role. You want to ensure that your campaign reaches areas where the Disney Channel is accessible, as this is where your target audience is most likely to be. Geographic analysis, as discussed in Chapter 6, helps you identify regions where your sweepstakes may have higher engagement potential due to the channel's availability. Additionally, considering legal regulations that may vary by location, like eligibility and prize distribution, becomes crucial in ensuring your campaign complies with

local laws and preferences. These chapters provide essential guidance for optimizing your sweepstakes campaign by aligning demographics and geography with your promotional efforts, just as we've seen in the Danimals example. ___ **Slide 2 (Chapter 5 - Application to Sweepstakes Advertising):** - As previously stated, demographics play a pivotal role in media planning. - In the context of our real-world example, the Danimals sweepstakes featuring Dylan and Cole Sprouse, the target audience was younger viewers, primarily fans of the Disney Channel. - Demographics come into play here, focusing on factors like age and interests. - So, what was the advertising strategy for this sweepstakes? - To maximize effectiveness, the campaign primarily focused on platforms and channels that are immensely popular among the target demographic. - This means utilizing the Disney Channel itself and related networks for ad placements. - Now, let's talk about content. How do you engage a younger audience effectively? - The key was to create content that's not only engaging but also age-appropriate. - It's all about making the message resonate with kids and teenagers. - And to make it even more appealing, they brought in young Disney Channel stars like Dylan and Cole Sprouse, who were already familiar to the target audience. . Now, let's move on to Chapter 6 and its relevance to sweepstakes advertising. **Slide 4 (Chapter 6 - Application to Sweepstakes Advertising):** *Title Slide: "Chapter 6 - The Role of Geography in Sweepstakes Advertising"* we're shifting our focus to Chapter 6 and exploring how geography becomes a critical factor in sweepstakes advertising.

- Our real-world example, the Danimals sweepstakes, serves as a perfect case study. - The first aspect we need to consider is geographic targeting. - To reach the right audience, it's essential to identify regions where the Disney Channel, the primary platform for promoting the sweepstakes, is accessible. - Advertising efforts were prioritized in areas where the channel was readily available to viewers. - But it's not just about accessibility; it's about engagement potential. - Geographic analysis helped identify regions with a higher concentration of enthusiastic Disney Channel viewers. - More intensive advertising efforts were directed towards these regions. - And let's not forget about legal compliance. - Sweepstakes often come with variations in legal regulations by location, such as eligibility and prize distribution. - To ensure everything was above board, the campaign adapted its rules and prize structure accordingly. - Ultimately, the goal was to optimize the sweepstakes campaign. - This meant aligning demographics and geography. - Data-driven insights were used to allocate the budget effectively, concentrating more resources on regions with a high potential for participation.

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— Chapter 5 Defining target audience Nothing is more important in building an effective media plan than properly defining the target market and audience. An efficient execution of an improperly targeted media plan is not going to matter. As brand manager. you need to ensure that the media plan and the creative execution are working together. If the agency's creative group is crafting commercials for an upscale, suburban soccer mom while the media group is working on an efficient media plan aimed at a downscale. rural. single mom. then your advertising program is likely to be ineffective and maybe even offensive. The term target can have a wide variety of uses and meanings. A target market typically refers to the geog phie market you are considering for your advertising. Some advertisers demographie target. whereas others use target audience to mean just the media target. In this chapter. we use the term target audience to mean the media audience Arriving at the right target audience appears on the surface to be a simple exercise. but it takes careful crafting and tremendous coordination to get the most out of your marketing budget. The target you choose must make sense from a business perspective. a marketing perspective, a media perspective. and a creative perspective. Unless all your stars are aligned. your spaceship will likely hit an asteroid. For Example. in the late 1990s. Chef Boyardee changed its target emphasis to teen-aged boys, who made up the largest consumer category of the brand. Message strategy was crafted and tested. and a media plan was fully developed. The program resulted in a double-digit decline in brand sales for Chef Boyardee. But doesn't targeting your hest consumers make sense? The answer is, only if they are buying the product. In this case, mom still bought the brand and. Although kids were the ultimate consumers, mom was still making the purchase decision. When the target was subsequently changed to favor mothers. brand sales began to rise. The moral is that you must start with the right objectives before moving toward a proper target. Start with the right objectives Isn't getting the proper target as simple as finding out who is using the brand and getting your message to them? As we saw in the Chef Boyardee situation. Teen bosses may be the consumption target, but they are rarely neara grocery store to buy the product. Obviously, understanding who uses your brand is paramount to the targeting process, but it is not the best place to begin.

The place to begin to decline the target is with the behavior you want to change. This behavior may be included in the creative brief but is many times told out of the media discussion. For example, you may have a marketing objective of increasing the user base of your brand. You need to attract new users. If your media plan targets heavy users of the brand, are you going to meet that goal? Of course not. It is important to outline the specific objective that seeks to accomplish before evaluating the appropriate media target. As we will see. The media planning group should be right in the midst of defining the target. but it is more than strictly a media exercise. Let's take a look at the soup category. Campbell's soup dominates the U.S. market. so the company must try to expand the category in order to attain growth. Campbett's can do this either by getting more people to eat cat soup or by getting current users to use it more frequently in recipes. Brands such as Progresso and Healthy Choice need current soup users to switch to their brands. Other brands, such as Lipton and Knor. look for niche markets: Lipton wants people who will cook with dry soup, and Knorr wants people who rarely if ever use prepared soups. As brand manager, you need to assess the strengths and weaknesses of the brand in question. If your charge is to grow the brand by 5 percent. then you have a number of ways to get there. One of the most likely ways to accomplish this goal is to get your current users to use your brand more often. In this ease. you would target your current user base. You may also have to attract new users away from other brands (stealing share) or grow the category. This would lead to a target that might not necessarily be your brand's existing audience. Perhaps there is an ethnic niche that hasn't been mined. Or there may be a purchase of dynamite at play, where the influencer. rather than the actual purchaser. drives the business. Again, all your goals must align. Start with the business goal. which is typically growing the business at X percent. Then ask yourself how you are going to get there. From this point. you should assess your brand versus the category and the competition. Is the product category growing at the same rate as the brand? Is there a gap between your brand and the category that could lead to a potential source of business? Or is there some sort of competitive threat or opportunity that would lead to a growth opportunity to the brand? Once these issues are raised with both the agency and the bran group. you can begin to define the proper target audience. Tools for defining target audience A number of secondary research tools can and in defining the media target. Over the years. There have been several improvements in linking actual brand purchase data to media behavior. These have led to a recent rise in the ability to model schedules and to determine the sales impact potential of various mcdia alternatives. Historically, the two nationally syndicated research studies used by media planners have been those of Mediamark Research Inc. (MRI) and Simmons Market Research Bureau. Both annual studies were initially designed to support the magazine industry with sales and audience data. MRI has now become the standard for most brand media planning. and Simmons has moved

into the custom research arena. Simmons recently teamed up with MasterCard to offer brand purchase data on an aggregate basis--a very powerful tool for goods that are not Acked by panel data from the Nielsen Company or Information Resources, Inc. 's (IRI) InfoScan. Niclsen and IRI are the two services that track manufacturers' ' brand movements through grocery store chains. Both have powerful databases of purchase behavior. which are used in helping media planners to understand the purchase dynamics of a multitude of brands and categories. MRI is currently the preferred national media planning tool. It provides information on more than 500 categories and 6.000) brands. MRI is the most widely used syndicated research service for determining magazine readership. Measuring 235 magazine titles for readership. MRI uses a "recent reading" technique with logo cards and a "sort board" with which respondents sort logos based on their reading habits of the past month. MRI aln collects information on television. cable. rachel networks and formats. newspaper readership. and Internet usage MRI's sample is 26.0%1 adults aged 18 and older (18+). so it is highly reliable. MRI surveys twice a year. so most media planners use the MRI Doublebase, which has 50,000 respondents as the key mecha targeting tool. The Doublehase is linked to other segmentation schemes such as PRI/M (Claritas 's market segmentation system). Spectra, and NPI). which have developed consumer segmentation analyses that divide the population into common groups based on geography, demographics. and purchase bchav-iors. A typical segmentation study may have as many as 60 discrete groups. This brings us to the second major media planning tool—one used in the packaged-goods industry. Nielsen and Spectra have developed a tool that bridges the gap between retail tracking and consumer targeting. This tool connects actual product purchase behavior with Spectra's lifestyle segmentation. Spectra's lifestyle segmentation grid allows the brand manager to analyze consumer behavior not only for media but for consumer promotion as well. With this segmentation scheme becoming very popular for brands. Spectra has become much more important in the media planning process with its link to MRI data. Using this system, the media planner can get actual brand purchase data that can be linked to media behavior. Until this time, media planners used MRI for both media and marketing data. Now media planners can confirm MRI marketing data and use the same MRI data for media planning. The Simmons National Consumer Survey (NCS) is another brand planning tool that is particularly powerful in the retail sector. It offers much the same data as MRI but is more extensive in terms of its own segmentation schemes. It is also a nice double-check for media planners to use in conjunction with MRI. There are two local market tools available primarily for local retail plan-ning. Scarborough Research, a service in joint partnership with the Nielsen Company and Arbitron, Inc., measures local media markets for the leading

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75 U.S. markets. The Media Audit is a competitive product that offers a much deeper market list at 86 markets, but not quite the level of detail in terms of advertisers measured. Both are excellent sources for analyzing local market activity and can be manipulated to include custom regions. Those are the key secondary resources used in broad-based media planning. Once a plan is developed, media buyers use specific audience measurement tools for negotiation purposes. The key broadcast sources are Nielsen for television and cable and Arbitron for radio. Recently, there has been a move toward primary research studies for the brand that can be geo-coded by either a PRIZM or Spectra database and linked back to other studies such as MRI. Target groups and target audience Keep in mind that not every target group can be reached by the media. For example, if you are selling dog food, you might wish to target dog owners: all dog owners and only dog owners. But there is no advertising medium that reaches all of them and only them. Even the media aimed at dog owners. such as Dog Fancy; reach some persons who do not have a dog. These people may still read the magazine even though they do not have a dog. perhaps because they do not have enough room for one or they travel too much. or they may have lost a dog. And, of course. even this publication cannot reach all owners of dogs. And there may be people who buy dog food who do not have a dog: perhaps they donate the food to a local humane shelter. So you need to have a target group. but you also need to specify a target audience: a group that can be reached by the media and that can be clearly defined. At the same time. You also want a communication target. That may be the same as the target audience, but at times it might not be. Again. if you want to target dog owners. that is a target audience: households with dogs. But it's unlikely that the entire household is buying food for their dog. The principal purchasing agent is the communication target: the person who actually goes to the store to buy dog food. The heavy user definition Now that you have the right tools, how do you go about declining an audi-ence? There are a number of ways to look at an audience. We have identified some of these from the marketing objectives. An important way to look at your audience profile is in terms of consumption. The Pareto principle states that 20 percent of the audience represents 80 percent of the consumption. There is a heavy-user segment for nearly every brand. The heavy user may not represent 80 percent of consumption, but there is usually a strong ratio that is typically in the 2- to-1 range for usage-to-users ratios. The procedure of looking at the heavy, medium, and light users of a brand is an excellent analysis tool and a viable way to targel (sce Tables 5. 1 and 5.2). Let's look at Hunt's tomato sauce. Here, the heavy user for tomato sauce represents 17 percent of the user base but accounts for 50 percent of the usage. This might suggest that Hunt's must not lose the heavy-user group because it is a small yet vital part of the category. The real opportunity may be in targeting those other 83 percent of the users to get them to use the brand more often.

You can extend the heavy-user analysis to look for gaps between how your brand attracts users and how the category attracts users. In this Hunt's example, suppose that the category of heavy users is concentrated in the age range of 25 to 34, but Hunt's heavy users are 35 to 49. This means that Hunt's has an opportunity to grow the brand by attacking this usage gap. Another gap to analyze is the gap between competitive brands. For example, There is a definite difference in usage between Hunt's and its major competitor. Del Monte. After assessing the reason for this difference. the brand can determine if this gap is something that advertising can impact or if it is the result of a product trait. The heavy-user concept is certainly one that packaged-goods brand managers use regularly. As well. Retail and business-to-business brand managers can use this theory to segment their audiences. For example, a grocery retailer knows that a mom with kids is likely to spend more on groceries than a single retired adult. The grocery retailer may use basket size thow many products and subsequently dollars a person is buying from the store) as a barometer of a heavy user. So. a shopper who spends $200 on an average visit is worth more than the one who spends $50 per visit. With sophisticated retail databases so prevalent in today's retail landscape. This type of analysis is relatively easy to conduct. In the business-to-business world. transactions aren't usually as frequent as in retail or packaged goods. Nevertheless. there is still a size dimension. that relates to heavy usage. One way that business-to-business marketers can evaluate their sales database is to see how large the sales are in rank order. or to have their financial department help them assess the profitability of each customer in terms of sales versus customer support required to service that customer. Fach of these methods can be used to arrive at some form of ranking of heasy to light usage or of profitable to less profitable customer. Lifestyle and life stage segmentation Lifestyle and Life Stage Segmentation Beyond the usage method of targeting, there are a number of lifestyle and life sage assessment methods that affect media targeting. It is possible to get into your target audience by looking at their lifestyles and lite sages. We noted that the key tools for assessing lifestyles and life stages are PRIZM and Spectra. Both of these research tools define hestyle largely by where you live and how affluent you are. For example, The lifestyle of a consumer who lives in an upscale suburb is very different from that of a consumer living in a downseale urban area. This type of analysis helps put a face on your target and may suggest that you need different media approaches to reach various lifestyle groups. Another way to look at your target group is by their life stage. Consumer patterns of behavior are sometimes dictated by where you are in your life. There is a huge difference between a 25-year-old mother of two and a 25-year-old working woman with no kids, In many cases, life stages serve as marketing milestones that require different media approaches. For example, if you are a senior in college. it is likely that credit card companies have been soliciting you, because they know you will be getting a job soon and establishing credit. Similarly, new parents receive all sorts of coupons for various baby products as well as banking products to save for their children's education.

Let's look at an example of lifestyles and life stages of users of PAM Cooking Spray (Table 5,3). The PAM brand attracts an older and more affluent audience. The challenge for the PAM brand is to generate a new base of users with a younger audience. Generations as a target We have discussed various demographie and brand usage approaches to targeting. One other method of targeting is to find common ground among various generations of consumers. Generations are brief periods of time that are connected with popular culture. Consumers of the same generation are connected not only by age but by the various milestones they have reached together. Some unifying characteristics include music. fads, inventions. poli-tics, and social movements. For example, the 1960s ushered in the British invasion of rock stars to the United States, led by the Beatles. World War I colored two generations: The first has been termed the G.I. Generation because its members fought in the war as adults; these Americans were later referred to as the "Greatest Generation '' for defeating the Axis of Evil. The second generation impacted included those who were children during WWII: dubbed the Silent Generation, these Americans grew up in families that were preoccupied with the war. Table 5.4 offers a list of U.S. generations for the past 100 years. Generations can be a very effective method of targeting. Members of these groups are connected not only demographically but also emotionally and historically. Many times an advertiser will choose music or images that stir emotions within a particular generation. From a media perspective, it is important to be sensitive to the demographic nuances of generations as well as to patterns of culture, either of which may be a good forum for delivering an advertising message. Behavioral targeting Another way to target your market is by how its members behave. This type of targeting is very popular in the online world where it is possible to track the websites someone is visiting based on real-time. For example, if you have just visited a website on border collies. you are likely to be a pet owner and receptive to a new dog food brand. That is how behavioral targeting works in the online world. But this type of targeting is not exclusive to cyberspace. Off-line, you can target people who drive Corvettes. Or you can target men who play golf. The idea of behavioral targeting is to have a relevant message for someone at the time it is most relevant to them-that is, when they are actually demonstrating or behaving in a way that indicates your brand is important to them. This type of targeting can be stretched to more than just activities. You might consider targeting bargain hunters, those people who clip coupons or visit websites that sell discounted goods. In this way you are discovering some behavior outside of the brand's purchase dynamics that might be a good fit for the audience. Purchased vs influencer So far we have talked about the brand in terms of who is buying the product.

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For packaged goods, this is typically the mother in a household. But she is not always the one consuming the products. Whereas our secondary research tools do an excellent job of defining the purchaser, they do not necessarily define the actual consumer of the product. To understand this dynamic, the brand needs to do primary research to understand whether or not there are influences that tip the scale beyond the actual purchaser of the product. For many ills, the child in the household exerts brand influence. Many households purchase private-label cereal and put that circle in the branded box so children will think it is from their favorite branded source. In James McNeal's book The Kids Market: Myths and Realities, the author offers estimates of children's influence on parents' spending for various items. These range from items such as toys, candy, and video games where you might guess the children's influence on purchasing is high. to items where children have smaller influences. such as sporting goods. sunglasses, and salad dressing (see Table 5.5). The challenge for the brand manager and the media group is to determine how to balance these influences. In the case of cereal, do you target mothers or do you target only the children? Of course, you would like to do both, but if you do not have enough funds, which one do you pick? Or should you blend the funds in a ratio, say, 70 percent for mothers and 30 percent for children? These issues certainly need to be resolved before the media plan can be fully developed. The issue of purchase influence is not confined to mothers and children. Many household purchases from the family car to the house to vac made with varying degrees of influence from both heads of the household. Recent trends in health care show that adult children assert influence over their now-senior parents. So the issue of purchase influence is very far reaching and can be the key decision in the media targeting process. Other brand influencers The issue of brand influence is not just the domain of brand purchaser versus brand user. In the retail and service area, the employee exerts a huge influence on the delivery of a service and is the key to customer satisfaction. As a result, a retailer or service brand manager often makes sure that the employees are a media target for the advertising. Sometimes retail or service advertising is based around a promise made to consumers. which employees must fulfill. For example, a grocery chain ran this promotion: if you aren't checked out within five minutes, they will give you a discount off their groceries. To ensure that the employees were up for the challenge, the marketing manager ran an advertising campaign saluting the great employees of the store. This campaign led to a big increase in store pride on the part of the employees, so when the promotion hit, they were more than ready to execute it.

The world of business-to-business marketing has a very complicated set of influences. Because the purchase of a business item for your company doesn't involve your own money, it comes with an entirely different dynamic. For example, when a company buys a computer, the user of the computer wants something he or she can be comfortable with; the information technology (IT) group wants something that fits into their overall IT framework: Mac leanne pringp » anto to mininmi/e costs, and the (TE) wants the greatest productiong, All of these customers have influence over the purchase. In mang cares, the actual purchaser (the person who writes the check has the lead amoem of influence over the purchase. So, as a business-business brand manager, it is important to walk the achenising agency and the media group through the sales process so that deg soderand its various components Growing ethnic diversity In the golden age of iclession. the media target was lauryl cast to dischem. Take a look at Leave In to Beaver and you have your audience. It consisted of a Caucasian family with a working husband. a stay-at-home mom, and two kids. Of course. that was 1960). The times have changed a lot since then. Everyone knows that more women now work than stay at home. although that ligure has topped out at about 60 percent. according to the latest U.S. Census Bureau data. The larger trend in the United States is the ethnic diversity of the population. There are many large markets. such as Los Angeles and Miami. where whites are not the majority. The most rapid growth in the population is coming from Hispanic and Asian populations. followed by African Americans Obviously. These growth patterns have a lot of hearing on media planning and targeting. Ethnic audiences do watch. listen to. and read media that would be considered general-market media: nevertheless. Each ethnic group also uses specific media that are tailored to its specific culture. The media planning dilemma is to determine when additional resources should be funneled into ethnic media. There are two schools of thought on this issue. The first is to determine what percentage of the ethnic population is underdelivered by the general-market media and then to make up that difference in ethnic media. For example, if you were targeting beer-drinking men. you might schedule a commercial on Monday Night Football. If MNF delivers a 12 rating for all men but only an & rating for Hispanic men. There is a 33 percent short fall for Hispanic men. You can either accept this shortfall or look for programming that will balance the delivery for Hispanic men. Assessing under delivery of sarious target groups is an excellent form of media analysis. This example suggests that the current buy of Monday Night Football might not be enough if Hispanie men are a key part of your target. This brings us to the second school of thought. which is marketing versus media. If Hispanic men are a crucial target audience. then you should market to them. Scheduling support in ethnic media is as much a political statement as it is a method of reaching the right audience. It means

that you recognize the importance of this group. and that that recognition has an impact that goes well beyond the impact of the standard media analysis. It is important in ethnic markets to understand the media impact of the plan in terms of media delivery. If an ethnic segment is growing and is important. then develop a marketing program to cultivate that group. That is where the brand manager and the media team need to work together to ensure that all aspects of strategic thought are represented before proceeding. Economic impact of targeting We have looked at media targeting from the perspective of who is the best audience to reach in order to make your business grow: There are also economic implications of targeting. Each decision you make on defining your target audience has an effect on the cost of media. Thus, assessing the cost impact of your target decision is crucial to finalizing your target audience. In your analysis of various target segments you will discover that each segment consumes media in a different way. This consumption leads to various cost trade-offs as you finalize your target audience. For example, Research indicates that women watch more television than men. Therefore, The cost of reaching a certain number of men through television is more than the cost of reaching the same number of women. Suppose you decide that it is important to reach both men and women based on the purchase influence dynamics of the brand. If you change the target audience for the media plan from women to adults, you raise your costs by more than 10 percent. Why? You are paying a premium to reach men. This same dynamic holds true for age. Older adults watch more television than do younger adults. It costs dramatically more. based on cost per rating point. to reach adults aged 18 to .34 than it does to reach adults aged 55 and over. If you change your target from the 18 to 49 group to the 18 to 34 group for a television plan. you will have to pay another 5 to 10 percent in costs. The harder the group is to reach, the more it costs to reach them, which seems like a pretty basic maxim. The curve ball here is that some media are designed to reach a very narrow audience rather than a broad one. This holds true for the regular television networks. but it does not necessarily apply to cahle, where programming is very specific (see Table 5.6). Television and newspapers are very much alike: the broader the audi-ence, the lower the cost to reach them. Radio is just the opposite. Radio formats are tailored for narrow age cells. Each station is trying to own a key demographic. On radio, the tighter the audience. the lower the cost. For example, if you are targeting all men with a radio buy. you would likely need to purchase a news station for the older men and a rock station for the younger men. If you are just targeting young men. you could cut the news and reduce your costs considerably Magazines have similar dynamics. There are broad-reach publications. such as Time. Sports Illustrated, and Good Housekeeping. Il you are targeting just people who like spicy food. though, you might be better off with Chili Pepper magazine. The Internet is eut from the same cloth as magazines. with large search engines as the broad- reach vehicles and individual sites as niche properties.

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The other economic implications of targeting involve your media budget. If you are like most brand managers. you usually do not have enough resources to do what you want to do. Every brand is under pressure to deliver profits. and media support is one of the casiest budget outs because it is one of the variable expenses. If you are faced with marketing a national cereal brand with only $3 million for advertising. and the competition spends $1.5 million. you have some tough challenges. Your $3 million will not go far against a broad "mothers'' target. but it is certainly enough to generate some noise in the children's market. Or you may want to tackle an ethnic market with your limited budget. Therefore, when working with the media-planning group. it is critical that you understand the cost impact dynamics of a target. The target audience is the cornerstone of the media plan. Defining the proper target is crucial for success. It begins with setting the right objectives and then using the tools at your disposal to better identify the audience. Once you have weighed your options from both the perspectives of opportunity and economies, you are ready to finalize this aspect of the media plan. Chapter 6 Geography’s role in planning Where your product is marketed is just as important as to whom your product is marketed. Whetheryour brand is international or found only in the corner grocery store. When it comes to media planning geography is an essential strategic issue. How you define where you want to advertise and how much weight you give to one market versus another are key questions in deciding resource allocation. Geography ties in to the target audience definition. As mentioned in Chapter 5. PRIZM or Spectra data can be mapped to provide a look at regional pockets of strength or weakness for a brand's target market. Then. as the brand manager. you can decide whether to support geography that has a high concentration of customers or to go fishing for new customers. Before we get into geographie analysis and the impact of geography on media costs and media vehicle selection. We first need to define our geography. How to define geography You. the brand manager. tell the media planning group that you want to "heavy-up" (or apply more advertising weight 10) Birmingham. Alabama. The media planning group walks away thinking that you simply want to advertise in the Birmingham designated marketing arca (DMA). You. on the other hand. are thinking that the media planning group is looking at the Birmingham Information Resources. Inc. (IRI's) InfoScan market. which consists of seven different DMAs (sec Table 6. 1). Obviously, you have a problem. One of the most common problems a brand manager faces is matching up marketing areas to media planning geography. This may sound fundamental. but it is a crucial arca that is often overlooked until it is too late. or until a critical mistake is made.

The media planner will usually define geography with the television DMA Irom Nielsen. A DMA is a group of counties that get the majority of their television viewing from the same home market. There are 210 DMAs in the Nielsen television system. DMAs are fairly static but changes can occur. For example, at different times in Sarasota. Florida. was both its own DMA and a part of the Tampa/St. Petersburg DMA. depending upon how strongly its local station performed in its home market. Although counties may shift from one DMA to another. DMAs are fairly consistent from year to year. A second geography. or geographic unit. used by media planners is the metropolitan statistical area (MSA). An MSA is a central metropolitan area as designated by the U.S. Census. Each MSA comprises a certain number of counties and is smaller than a DMA. Radio stations typically use the MSA as their geography for their signal strength. Some brands use the MSA as their trading area because the MSA contains a considerable amount of census data that can be used to analyze the area. There are approximately 280 MSAs in the United States. Packaged-goods marketers use either Nielsen panel data or IRI data to analyze sales information. Each of these sources uses broader marketing areas than either a DMA or an MSA. To describe their geography. Nielsen and IRI use approximately 60) market areas. which incorporate the 210 DMAs Regardless of the source you are using. It is important to match up these market areas with DMAs before proceeding into media planning. Thus, when you say "Birmingham." you will get all the DMAs in the area and not just the 40 percent of the total marketing area that lies in the Birmingham DMA. If you are a brand manager of a retail chain. then you define your market by the store's trading area. A trading area is a geographic area based on where your customers actually live or work. For example, Most fast-food restaurants use a three-mile trading radius as their standard for defining their individual stores trading arcas. Other retail stores may draw from a wider area. but most retailers have a specific part of the market that makes up the majority of their customers. To market effectively to this group. a retail brand manager conducts a trade arca analysis. This is usually done by calculating the point-of-sale system used by retailers to capture customer nimes and sldreses. Table 6.2 shows i /ip cock in lysis loreal fast-liox chicken restaurant in (icorgia. As Table 6.2 shows, a concentration of sales comes from just a few zip codes. This provides the media planner with information to make an intelligent decision on a variety of media. Perhaps there is a billboard location that makes sense in this area. Or there may be a need to provide inserts or direct mail with coupon offers to area residents. Geography can play a role in business-to-business marketing as well. The difference in business marketing compared with consumer marketing is that the decision process can involve more than one market. For example, a cet-lular phone company that markets to the offshore oil industry found that the users of their service lived in rural markets near the coasts of Louisiana and Texas: the decision makers, on the other hand. working on the oil rigs with the workers. lived in more-urban markets such as Houston. New Orleans. and Baton Rouge. In addition, the

headquarters for most of the oil companies were in a western suburban area of Houston, more than 100 miles from the coast. In this ease. the brand manager had to develop a different strategy for users of the service versus corporate headquarters. So, any goods or services will have geographie influences. whether they are national, based on a local market. or even as micro as a city block. Regardless of your brand's situation. the same discipline and tools he should use to determine the appropriate geographic media approach. How to analyze geography Now that everyone is working with the same definitions, it is time to analyze your sales by geography to determine strengths and weaknesses. The classic method is to develop a BDI/CDI analysis. BDI stands for brand development index, which tells how strong a market's sales are in relation to its population size. This index is the percentage of your brand's sales compared to the percentage of the population in a certain market. Suppose you have 3.4 percent of your sales in Dallas. a city that represents 1.7 percent of the population of the United States. The BDI would be 200 for your brand (3.4 ÷ 1.7 x 100).An index of 100 means the brand sales in that market mirror the popula-tion. The index is less than 100. then the brand is not consumed up to the per capita level: if the BDI is over 100. consumption is greater than the per capita level. CDI stands for category development index. Just like a BDI. a CDI is the percentage of category sales compared to the percentage of the population. You use the CDI as a measure of potential. whereas the BDI is a measure of actual brand strength. The best way to look at a BDI/CDI analysis is to graph it in a quadrant chart. Exhibit 6.1 shows a quadrant chart with each grid reflecting a different relationship between the brand and the category. In quadrant I. hoth the brand and category are strong. This is a good area to defend. It shows that the BDI is much stronger than the CDI. Which means that the only brand growth here would be limited to growing the category. In quadrant Iii. The category is stronger than the grand. This is the area of opportunity. And quadrant TV shows that hoth the brand and category are weak. This is an arca where you will avoid spending advertising dollars. One last analysis involves creating your own brand opportunity index (BOl). This is done by dividing the CDI by the BDI. For example, you have a brand where Atlanta has a CDI of 120 but a BDI of 80. That would correspond to a BOl of 150(120 ÷ 80). On the other hand, Orlando has a CDI of 120 but a BDI of 150. then the BOl of 80(120 ÷ 150) might make it less attractive as a growth market than Atlanta. even though hoth the BDI and CDI would put Orlando in the top quadrant (see Table 6.3). Both Nielsen and IRI research show that advertising has the best opportunity to"grow" a brand where it has a strong BOI. So. once you calculate your BDI and CDI and put them in a quadrant chart. calculate your BOl for the final opportunity analysis. The same BDI/CDI analysis can be done in the retail as well as the business-to-business arena. In retail. you may want to look at BDI/CDI on a market level. not just on a trading arca basis. Because the number of stores can determine the strength or weakness of a market. retailers use a sales-per-trading-arca analysis to evaluate one store versus another. This can he done by

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simply calculating the sales of the store and dividing by the number of households within the store's trading are: Factoring in distribution The BDI/CDI analysis is a classic one. but before finalizing your market "heavy-up" decision, you should dig a bit deeper to understand the reason behind the numbers. Suppose that in the Atlanta example. where your BDI is only 80, your brand was in less than 50 percent of the available points of distribution. Now the opportunity market that you thought you had may not be the one after all until you gain full distribution. For packaged-goods products. The term for distribution is all commodity volume (ACV). This is a fancy name for the percentage of the distribution channel in which the brand is available.Distribution is an important element when looking at sales by market. Distribution. or the lack thereof. may be one of the reasons why a grande performs the way it does. One way to equalize the effects of spotty distribution is to do a sales-per-distribution-point analysis. This analysis looks at the sales-velocity-per-distribution percentage. It may uncover where a brand is performing well yet has distribution weaknesses. This can be a good tool for the brand manager to use with the sales group to shore up any weaknesses in the distribution area. For example, suppose that your brand has 2 percent of its sales in Dallas/Fort Worth. Which has roughly 2 percent of the U.S. population. You would say that Dallas is an average market with a BDI of 100. But if you found that you had your brand in only half the available retail outlets in Dallas. then you would say that Dallas actually has a BDI of 200 in the outlets where your brand is available. Based on this analysis. Dallas looks like a great market. once you gain that crucial missing amount of distribution. From a media planning perspective, understanding the distribution of the brand is critical in selecting either markets to "heavy-up" or test markets. Before just blindly proceeding with the BDI/CDI analysis. step back and ask about the hrand's distribution. Applying media to geography Now that you and your team understand what markets you want to target and are working from the same market definitions. you can begin to analyze what media to apply to various levels of geography. Although most media can be purchased nationally, regionally. or locally. cach medium has its geographie nuances. Let's review the major media and how they can be purchased at various geographic levels. Television airtime can be purchased on a DMA basis locally or on a network television basis nationally. The major networks- ABC. CBS. NBC. and Fox-can even offer broad regional

coverage based typically on liveWith the exception of USA Toder: the Wall Street Journal, and the national edition of the New York Times, newspaper space cannot be purchased nation-ally. Nevertheless. there are products that come within a newspaper that you can purchase. Free- standing inserts (FSIs) run in the Sunday newspaper and carry a wide variety of coupons. The largest purveyor of PSIs is a company called Valassis. You can create a national. regional. or local buy using these inserts. Parade magazine is a newspaper and space can he pur offer the opportunity to market: insert-only companies such as Online advertising can he on graphic level. A Wch portal lik program support to the widest engines such as Google use of Our-old-home. media 100H buses are. for the most part. a pace on a rolling basis, that is. try. Beyond these standard 00l banners, beach logos, telephone me extremely local. inserts. Parade magazine is another vehicle that is distributed in the Sunday newspaper and space can be purchased as in any other magazine. Newspapers after the opportunity to market on a micro level. targeting inserts by /zip code: insert-only companies such as ADVO provide the same service. Online advertising can be purchased at all. including work/wide. geographic levels. A Weh portal like Yahoo! offers any level of banner or other program support to the widest or narrowest geography possible. Search engines such as Google also offer these opportunities. Out-of-home media (0OH) - billboards and signs on subways and buses are. for the most part. a local medium. Still. you can buy advertising ''pace on a rolling basis. that is. on bus routes that cover much of the country. Beyond these standard 00H media. alternative media such as airplane banners. beach logos. telephone-booth advertisements. and bathroom ads are extremely local. Economy of media by geography We have had a cursory look at how media can be purchased on various levels of geography. There are economies of scale moving from local to national levels of support. Because each medium is a hit different in its local-versus-national purchase. advertising placement than to buy a number of markets on a local basis. The rule of thumb for calculating when network television becomes more cost efficient than buying spot television is when the brand is available in approximately two thirds (66 percent) of the states in the United States. Prime-time and sports programming have the lowest national-to- local breakeven point. which is usually at 66 percent. Morning. daytime. and evening news programs can be slightly higher than this level. but the two-thirds rule is a good one to go by. Because cable is not as efficient as television on a local basis. its national-to-local breakeven point is very low. If you are in the top live media markets in the United States, it is less expensive to purchase national advertising than to buy just those five markets. The national-to- local breakeven point for cable is around 25 percent of the United States, although it can be even lower if you are comparing some very inefficient local markets.

In Table 6.4. we have radio and magazine at similar breakeven points: hoth are at 33 percent of the United States. Yet there is a subtle distinction in the radio analysis. Local radio typically comprises 60)-second commercial units. Many local radio stations have gone to unit-rate pricing, where it costs the same to purchase a 60- or a 30-second commercial: as a result. 30-second commercial units are becoming less common locally. On the other hand.national network radio charges 50 percent of the 60-second commercial rate for a 30-second commercial. making network radio much more likely to have 30-second units. So the breakeven point for radio uses a 60-second commercial locally and a 30-second commercial nationally. Now that you know it is more efficient to purchase national rather than local advertising for your brand. even if the brand does not have national distribution. should you be concerned that you are advertising where the brand is not available? This decision can be a double-edged sword. but there are certainly more reasons to advertise nationally than not if you have the opportunity. Beyond the cost implications. National commercials or advertisements get more favorable placement in a given program or publication than local ads: studies have shown that national advertising can have upwards of 25 percent more impact or retention value for your commercial message. From a marketing perspective. This type of advertising can help seed your brand in future expansion areas so you may not have to spend as much once you gain that distribution. In today's retail climate. if you can land distribution in a chain like Wal-Mart. you have a national brand instantly. Geographic planning is a key element in media planning. The first step in the process is to understand your market-area definitions. From there. you can analyze your brand's strengths and weaknesses. Next, develop your BDI/ CDI analysis. Determine how you are going to treat different market groups. Then look for economies of scale as you rot out your brand nationally The next chapter deals with another cornerstone of good media planning. the seasonal issues of brand consumption and media costs.

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