MKTG 477 1st Edition Lecture 31Outline of Last Lecture I. Rating/ShareII. DMAsOutline of Current Lecture I. GRPsII. Cost Per Thousand (CPM)III. Cost Per Thousand – Target Market (CPM-TM)IV. Media Scheduling Current LectureApril 15, 2015 – Media 1. What other media concept is a rating equivalent to?a. Rating = # of individuals/homes tuned into a program / # of homes with a TV (on or off)i. This is the same as Reach as a percent (Reach %)2. GRP = Reach (%) x Frequencya. (Reach % same thing as rating)3. CPM (cost per thousand)a. The media cost to reach 1,000 consumersi. Grey’s Anatomy (on rating sheet handout)1. (2,000 / 82,000) x 1000 = $24.392. ^ = (2,000 / 82) = $24.39b. Note how the cost to reach 1,000 viewers increases as you refine (more narrowly define)your target market i. e.g. P25 – 54 vs. P18+ on rating sheet1. ($2,000 / 55,000) x 1,000 = $36.364. CPM-TM (cost per thousand target market)a. Media cost to reach 1,000 consumers from target market (TM)i. (Cost of placing ad in medium / # of target market individuals reached) x 1,000ii. Always going to more expensive than CPM 1. CPM-TM > CPM5. Calculate GRP for the following media plan for Spokane market:a. Target market is Men and Women, ages 25-54b. Buy 4 ads on Grey’s Anatomyc. Buy 2 ads on Super Nannyd. Buy 2 ads on Extreme Makeovere. Buy 1 ad on Desperate HousewivesThese notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.i. Calculations:13.2 x 4 = 52.84.8 x 2 = 9.67.8 x 2 = 15.612.5 x 1 = 12.5ii. 52.8 + 9.6 + 15.6 + 12.5 = 90.5 GRP1. Bonus question: what’s the minimum amount of time to execute this plan? (How long would it to have 90.5 GRPs?)a. 4 Days: one program is on Thursday, one on Friday, and the other two on Sunday, so four days minimumb. Could be spread over any amount of time thoughf. How much would this plan cost? (Cost of the buy?)i. Calculations:4 x 2,000 = 8,0002 x 500 = 1,0002 x 1,250 = 2,5001 x 2,000 = 2,000ii. 8,000 + 1,000 + 2,500 + 2,000 = $13,5006. Media Scheduling (how the promotional budget is distributed over time)a. Continuousi. Steady, constant promotion expenditure over timeii. Appropriate uses1. Laundry detergent, personal hygiene, etc.b. Pulsingi. Steady promotion expenditure with some “bursts”ii. Appropriate uses1. Soft drinksc. Flightingi. Inactive promotional spending with some “busts”ii. Appropriate uses1. Toys, seasonal products,
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