Market Strategies and Differentiation Session 7 PDF

MARKET STRATEGIES AND DIFFERENTIATION Session 7 1 Traditional Media Agenda Welcome Review: Integrated Marketing Communications Topis: Traditional Media “Flipped Classroom” Task #6  What is a Promotional Mix? Why do we call it Integr...

MARKET STRATEGIES AND DIFFERENTIATION Session 7 1 Traditional Media Agenda Welcome Review: Integrated Marketing Communications Topis: Traditional Media “Flipped Classroom” Task #6  What is a Promotional Mix? Why do we call it Integrated Marketing Communication now? Think of and comment on an example of: Advertising CIM REVIEW Publicity Public relations Personal Selling Sales Promotion Newspaper NEWSPAPERS - They are the oldest form of Media. The first advertisement appeared in the English newspaper "The Times Handlist", in 1625 Newspapers were more the writing arm of a political ideology than a lucrative business. Even so, publishers tried to finance themselves with advertising to "separate". The evolution of the ads, in most of them there were no graphic elements, there was only text. Its space within the pages also grew, and its statements and illustrations became more sophisticated. Cooperative Advertising - Retailer and manufacturer splitting costs  El restaurador universal del cabello de la Señora S.A. Allen. Flor de Ramillete de Bodas. El Imparcial El Imparcial (1885) El Corte Inglés, en sus orígenes. El Sol (1917 y 1918) Fuente: yorokobu.es/anuncios-antiguos/ Magazines MAGAZINES It is a way to reach the target market since their audiences are very specialized. The cost per lead is lower. Revista Vogue, 1893 Revista National Geographic, 1888 Radio  RADIO The best way to reach the local public. 75% of radio revenues are from advertisements. Orson Welles's "War of the Worlds" - The Power of Radio TV  TELEVISION Open TV, Independent Stations, Cable TV, Satellite TV. They reach a wide and varied market. Advertising time is quite expensive. Informercial: An ad of 30 minutes or more that looks more like a TV show than a sales pitch. Statista 16 17 18 OUTDOOR MEDIA It is a very flexible and low-cost media. Reach a wide and varied market. Billboards Inflatable Characters Planes in the sky Signs in the mall or bus stops By metro/means of transport "Human banners" 20 21 ALTERNATIVE MEDIA Carts in supermarkets, interactive kiosks in malls, mini-movies on the internet, posters in bathrooms. Etc. 23 24 INTERNET The internet has become the largest means of advertising. It represents 60% of all advertising expenditure. 80% OF LATIN AMERICANS ACCESS SOCIAL NETWORKS Search engine advertising: Google Adworks Banners On Social Media Email Advergaming Etc.  Middle Advantages Disadvantages Geographic selectivity and flexibility, short- Low demographic selectivity. Few readers Newspapers term advertiser commitments, news value and immediacy, short waiting time. besides the buyer. Good reproduction, geographical Long-term commitments, lack of urgency, Magazines selectivity, selectivity of markets, long advertising life, several readers. long wait times. Zero visual treatment, short advertising life of the Low cost, message immediacy, is Radio message, a lot of frequency is required, scheduled promptly, portable. advertising saturation. Ability to reach a large and varied audience, low Short message life, high cost of campaigns, long Television cost per thousand, creative opportunities, waiting times for production, advertising selectivity of markets for cable TV. saturation. Short message, lack of demographic Repetition, moderate cost, Outdoor media selectivity, high level of audience geographic selectivity. distraction. Media with greater growth, ability to reach the Not all consumers have access to the Internet target audience, ability to measure results, high creativity. internet, advertising saturation. Basic Concepts Scope:Number of people who have contact with or consume the media (How many people will it reach) It is expressed as rating, circulation, readership, etc. Frequency: Number of times the ad is placed in an advertising vehicle, during a cycle. (Number of repetitions) Given the limited budget, the choice is between emphasizing reach or privileging frequency. MEDIA MIX RATING: SHARE: 𝑇𝑜𝑡𝑎𝑙 𝑇𝑉𝑠 𝑃𝑜𝑤𝑒𝑟𝑒𝑑 𝑂𝑛 𝑇𝑜𝑡𝑎𝑙 𝑇𝑉𝑠 𝑡𝑢𝑛𝑒𝑑 𝑡𝑜 𝑎 𝑐ℎ𝑎𝑛𝑛𝑒𝑙 = × 100 = 𝑇𝑜𝑡𝑎𝑙 𝑒𝑥𝑖𝑠𝑡𝑖𝑛𝑔 𝑇𝑉𝑠 𝑇𝑜𝑡𝑎𝑙 𝑇𝑉𝑠 𝑃𝑜𝑤𝑒𝑟𝑒𝑑 𝑂𝑛 Efficiency indicators Cost per Millions:What it costs us to reach a thousand people for each ad inserted. 𝐶𝑜𝑠𝑡 𝑜𝑓 𝑡ℎ𝑒 𝑎𝑑 CPM = 𝐴𝑑𝑖𝑒𝑛𝑐𝑖𝑎 × 1,000 Cost Per Point Rating (CPPR):It indicates what it costs to earn a rating point with a particular vehicle. 𝐶𝑜𝑠𝑡 𝑜𝑓 𝑡ℎ𝑒 𝑎𝑑 CPPR = 𝑅𝑎𝑖𝑡𝑖𝑛𝑔 CPC The cost associated with a consumer clicking on an ad displayed on the web. Effectiveness indicators GRP (Gross Rating Points o puntos de raiting brutos): Frequency by Rating. A measure of the “noise” generated. They are obtained per purchase cycle. Example: 10 insertions in the program "Tardecito" whose rating is 15, gives us a GRP of 150. Gross Impresions Indicate how many times it has impacted the audience. It is obtained by multiplying the GRPs by the target audience and dividing the result by 100. Continuity patterns Constant (or continuous) Intervals (flight) Choosing the Continuity Pattern Pulsation Concentration Determine which days we insert Guideline design ads during a cycle. Number of cycles the campaign Campaign duration will cover Classroom Activity REFERENCIAS VIDEOS: The History of Advertising in 60 Seconds: https://mashable.com/2014/10/03/advertising- history-60-seconds/ Radio Days - Martians invasion. Dir. Woody Allen - 1987: https://www.youtube.com/watch?v=VBmLFjwmqSo &t=1s Brahma - https://www.youtube.com/watch?v=jAJIdC9YRmk&t =1s Corona - https://www.youtube.com/watch?v=kt_PMj2ccMU Se prohíbe la reproducción total o parcial de esta obra por cualquier medio sin previo y expreso consentimiento por escrito del Instituto Tecnológico y de Estudios Superiores de Monterrey. D.R.© Instituto Tecnológico y de Estudios Superiores de Monterrey, México. 2020 Ave. Eugenio Garza Sada 2501 Sur Col. Tecnológico C.P. 64849 Monterrey, Nuevo León | México