Background Analysis and Insights into Media Consumption - Essay Example

Audi A1 Media Plan Table of Contents Background Analysis and Insights into Media Consumption 3 Media objective 6 TargetAudience 9 Media Mix and Supporting Rationale 10 Media schedule 13 Budget allocation 14 Evaluation 17 Reference List 19 Background Analysis and Insights into Media Consumption The sum of entertainment and information taken by a person of a group of individuals is called media consumption. The information includes television, internet, magazines, newspaper, and radio (Sissors, 2002). Organizations are now applying different strategies so that their product or service isn’t just getting watched but also turn into sales. In the year 2010, the brand Audi became the modern and latest image of the prestige car sector. This is the result of decades of single minded brand building. From being an outsider, then turning into an eminence competitor, Audi has established the agenda in the prestige sector. Audi’s ‘innovation’ and ‘engineering excellence’ has overtaken BMW and Mercedes in term of reputation. The above graph shows that over the time period of 1999 till 2011 the brand image of Audi has immensely increased giving a very tough competition to its competitors like BMW and Mercedes. The decisive measure of marketing attainment is the commercial success of the brand. Over the last 25 years, the Audi’s Sales have amplified tremendously. Value sales have increased by 1,325% and Volume sales have gone up by 452% and Audi is the only one to increase its share in the market at this rate. People have become adapted to the repetitive use of the expression, the ‘information society’, to describe the current era. This is the age of information and the rate of access to information is accelerating day by day. Every day people are exposed to a large number of information in the form of advertisement mainly from the television, newspapers and internet. A human brain can manage a certain amount of information, so not all the information humans get exposed to be processed (Kelley, 2004). Different people are attracted to different information; this attraction is based on needs and desires. For this reason every organization targets a special target audience, who are persuaded to buy a product or a service. This is a digitally driven and networked society, media strategies are changing at an accelerating pace, and the internet has become a great tool of media consumption these days. Laptops, Smart phones and continues connectivity to the internet has provided huge opportunities to the advertisers’ to convey their messages to the masses (Gail, 2007). The above graph is a comparison of brand measure “innovative models” between Audi, BMW and Mercedes. The graph clearly shows that Audi is increasingly adapting new and innovative techniques resulting in more innovating models. People consume a huge amount of media every day via radio, television, computer and mobile phones. According to a research it is estimated that the flow of information through different media sources is estimated to be 6.9 zetta bytes per year. Media objective The main media objective of Audi is that the launch of Audi A1 should add to the brand image of Audi, for many it is a huge risk for a prestige car company to launch a car in A0 category, but Audi’s main media objective is to turn this risk into an advantage, an opportunity to enter in the A0 car category and boost the brand image as well. Audi’s Media Objectives include not to put A1 as a cheap car “a cheap Audi” but to present it as a better car in the small car class. Just like apple did with iPod shuffle. The objects also include capturing the market share of small cars; Audi viewed the small car sector as an opportunity to extend its brand in the small car sector. By introducing a new version of a small car with better technology, economy and driving experience. Other media goals are to increase sales in the small car sector as it’s the biggest chunk of the automobile industry (Scott, 2008). Media Planning objectives can be categorized as marketing goals, advertising and media. Marketing goals are called, “high-level " goals, which describes the objectives and advertising strategy and tactics necessary to achieve the objectives. A common goal of marketing is to achieve increased sales or market share (Katz, 2010). Good marketing goals are the goals that are measurable, such as increased sales by 2% next year. It simply means that the goal is to increase sales is too vague and does not contribute to downstream advertising and media objectives. Another purpose of marketing could be the repositioning of a product through advertising of brand attributes such as price and nutrition for breakfast cereal. Also includes setting goals for marketing effectiveness evaluation of the campaigns success after completion. Outcome measures include ad awareness, remembrance and sympathy. The other measures the attitude of the brand are, sales and market share. Reaching the goals of the media within budget is also relevant (Barban, 1993). Advertising objectives fit marketing goals, but specific to the domain, instead of the elements of the marketing mix. For example, if the objective of marketing is to increase sales, and we know that brand awareness is a precursor for sale as one of the objectives of advertising can be useful to increase brand awareness. But if consciousness is already high, a goal most appropriate marketing to enhance brand preference, in which case a suitable target advertising, to improve brand position. Similarly Audi is a prestige brand, everyone knows Audi, in the case of A1 Audi is tapping into a new market, to be successful Audi must make sure the target sales are achieved, for that excessive advertising trough different media sources will be done for example Television and Internet, not only adding to the brand image but also entering and gaining share in A0 car category. Decisions on marketing goals have a downstream effect on Media planning. For example, if a company is conducting a "push strategy" good packaging, where some results of the push strategy in print ads in Progressive grocer, Grocery Supermarket Business and Marketing, while a pull strategy is set better results for Family Circle, Womans Day and Good Housekeeping. Push and pull strategies, also differ markedly in their relative allocation of the costs of personal selling, sales promotion and consumer promotions at dealerships. For a total promotion budget set, when a large part of the funds go to “below the line” pass operation, this necessarily reduces the “above the line” spending on consumer advertising. In turn, this would leave insufficient funds to successful TV advertising campaign, which the newspaper advertising and radio, which are cheaper than television. Even in this simple example, it is clear that initial marketing targets have a major impact on subsequent decisions on media and therefore the objectives of the media. Therefore, cannot emphasize enough the importance of setting marketing objectives first. Target Audience One of the cornerstones of marketing is segmentation. The products and services do not appeal equally to everyone and this leads to groups of individuals, households or businesses that have a higher than the average potential absorption or uptake advertising offers (Brierley, 2002). Target markets can be configured in many ways, based on any or all personal demographics, geographic location, product users and buyers of a product or non-buyers. The target audience of A1 were all A0 (small car) customers. A0 cars are small, economical and good quality for money cars. A0 cars cover almost 25 % of all the car industry the rest of the 75% is divided between the prestige cars, sedans and multi carriers. The age group of the target market for the Audi A1 lies between 25 to 40 years. The people who are keen to do research over the internet using social media services (i-e. forums, blogs, Facebook, Twitter, etc.). The nature of targeted persons is unique i-e do not follow other people and wants to look different from others. The Audi A1 is targeted to be a second or third car in the household, therefore, the targeted persons for the Audi A1 are not the heads of the family, rather, they should use the car for their own-self. Both sexes i-e male and female of the above characteristics are being targeted by the Audi A1. As per a study made in 2009, the 38 % of the Audi users said, they use the car for its easy customization. The 37 % said, they purchase it due to the car’s performance and price. And 29 % of the users like the colors of the Audi A1. A0 is the largest sector of the car industry and after the economic crash, the car industry observed a downfall in sales. This was seen differently by Audi; Audi took the great step of changing a weakness into strength and planned to launch an A0 category car, which is the largest chunk of car sales globally. This was also a risk for Audi as its status in the car industry is of a prestige car and Audi stand among the BMW and Mercedes Benz. Launching an A0 car could damage the status of Audi permanently, but its marketing strategy was to change this threat into an opportunity. Media Mix and Supporting Rationale Planning messages and designing media mix strategies include five vital assessments. 1. The marketer should assess the communication objectives which already have been proven for the particular organization and for important public associations in terms of timing, credibility perceptions information opportunities, motivation, reach effectiveness and cost per contact. Staffing and funding resources also should be considered as factors. 2. Choosing media that complement a message requires an understanding of the pros and cons of each mass medium. 3. Contemplation involved in making and designing the media mix strategies is learning participants media use behaviors. For instance, “scanning and surfing” disturbs the message flow, utter profusion of media content strives for attention, and typical psycho-graphic and demographic data often are insufficient in antedating audience’s media behaviors. 4. New technologies appear to advance rapidly, and practitioners swiftly must adapt them and also learn how to take advantage of them. 5. Media ownership concerns such as mergers and splintering affect change in, personnel, content and media routines. The media mix will be an all together a new strategy, as Audi is a prestigious car company and launching an A0 category car could damage its brand image Audi will make A1 redefine its prestige. The Audi A1 is priced 20% more than all the other A0 category cars and that extra premium is because it is an Audi. Audi should portray A1 as a new Audi with huge technological advancements none of the other A0 category car has. In the case of the Audi A1 the media mix used will be Newspapers, television Commercials, internet (Social media), Goodwill/Brand ambassadors (sports figures, singers/celebrities, beauty queens, personalities) and Car shows and exhibitions. Television: This most common and most effective way to convey the idea and the message. Internet: This medium is now becoming more and more popular and its effectiveness can be evaluated in real time, advertising through car websites, famous and the most viewed car blogs and most of all advertising through social media is the latest and the most effective way of reaching the customers and in the case of Audi A1this medium will also be used. Brand Ambassador/Celebrity endorsement: As Audi has a status of a prestige car manufacturer, which is entering in the A0 category car market. So, in a way Audi is putting its reputation at risk, which can be tackled through celebrity endorsement. Relating an actor or a famous sports personality will add more to the media mix. Newspaper: Newspaper will also be used as it is also a very effective way of communicating with the customers. Car shows/ Car exhibition: Car shows will be the most appropriate medium for releasing news about Audi A1 to create hype in the car market. The media mix will explain Audi A1 is a big idea condensed; it will portray that as the technology advances the size gets smaller, the Sam approach Apple used with iPod shuffle. The 20% premium is a reminder of A1 being an Audi. A1 is small but it’s still an Audi with all the things that makes an Audi, nothing less. Media schedule The ratio of the target audience exposed to the media campaign at least once in a specified time period is defined as reach. Reach is known as coverage in the UK, a term which attractively expresses the connotation of reach. Theses six months will be divided into two parts; one is pre-advertising, which is before the launch of the Audi A1, this time frame will be used to create hype among the buyers this two month time will be like a teaser trailer of the buyers. The Second period will be of four months, post advertising which be done after the launch of Audi A1, because in the initial month of the launch the sales will help the company to know if the sales are according to their prediction or not. In both cases this after launch media schedule will help in increasing the sales of Audi A1. That is, it is a measure that counts all the unique households (or people) that are covered by the campaign. For the media schedule of Audi A1 all the factors such as reach, gross rating and frequency will be integrated together. There are different benefits and drawbacks of more than ten diverse media types, stretching from radio, newspapers, outdoor and the internet. The mixture of media types for a campaign is particular, but is determined by mostly by the budget and advertising media objectives. The selection of media mix will also be influenced by the media objectives (Kelley, 2004). For example, a media campaign that needs a high reach, but a modest frequency should focus on newspaper and television insertions. Though, if high frequency is mandatory and lesser reach is suitable then radio and outdoor advertising are appropriate. Audi in the case of A1 can use differentiation focus strategy in a whole new ways, it is going to launch A1 as an A0 category car without losing the prestige of Audi, and this prestige will be the differentiating factor among the competitors, even at a 20% additional premium. Budget allocation Theoretically, media budget assessments can be evaluated by marginal rules of economic theory. Spending on each communication method is amplified till any additional increase decreases profits (Danaher, 1991). Likewise, the allocation of total budget between diverse approaches is such that each tool is used to the level where all marginal revenues are equal. The media budget allocation of an Audi A1 is characteristically a subgroup of the higher marketing and sales budget. Advertising is just another part of the marketing and sales effort. Funds disbursed on advertising are an investment in image building and sales. To keep the media budget in line with marketing and promotional goals, an organization should start by answering these vital questions: Who is attracted in buying the product and who is the target consumer and what are the exact demographics of the buyer? Frequently it is beneficial to combine a buyer profile to give the theoretical indication of a "target consumer" a personality and a face that can be utilized to form the advertising message. What media category will be maximum beneficial in attainment of the target audience? What is essential to make the target audience to buy the product? Does the product offer itself to emotional or rational demands? Which demands are likely to encourage the target audience? What is the association concerning the impact of media campaigns on product purchases and advertising expenses? In simple words, how much profit is likely to be earned for each dollar spent on advertising? While launching a new car and in A0 category Audi has to make sure that A1 increases the status of Audi instead of destroying it. In the total budget, 50 % will be spent on television and celebrity endorsement, 25 % of internet and social media advertising, 15 % of newspapers and 10 % on car shows and exhibitions. This budget is not just estimation, after the Launch the Audi A1 is expected to become the number one selling car in the A0 category leaving all its competitors behind. In the particular case the sale of the car is massively depends on the media planning and its execution. Evaluation As media purchases are created for historical/previous data (frequently for comparable time period in the previous year), media managers must work with forecasts of audience measures in future time periods. But this was the first car of its type and Audi doesn’t have the data to compare with. So what Audi should do is to take the data of the best selling A0 category car and based on it redesign the media plan of the Audi A1. Due to this, the real audience attained (for instance measured by Gross Rating points or reach) may vary from the projected audience. For instance, assume that media buying’s are made with the aim to reach 500 television Gross Rating Points over a 5 week period amongst the target audience. A Media planning software would naturally be used to access previous AC Nielsen ratings data to attain a mix of time slots and programs that end in the essential 500 GRPs, although keeping within the budget and time constraints. Planning might be done anywhere concerning one year and one month onwards of the time the ads actually go to air Soon after the conclusion of the campaign, it is likely to get the definite ratings data and relate this with the projections, a method identified as post-analysis. Evaluation of media success is not restricted to Gross Rating Points. It could involve an evaluation of market share or sales or ad awareness targets with what was truly attained. The UK-based firm, Millward Brown specializes in advertising awareness, tracking and provides examples where Gross Rating Points correlate well with ad awareness. This enables them to give advice about the required number of Gross Rating Points needed to achieve an awareness target. In turn, awareness can be linked to more tangible marketing objectives like sales or market share via an econometric model. If the actual audience attained is 500 Gross Rating Points or higher than the advertiser is happy with their purchase. If not, and the actual audience is only 350 GRPs, then the advertiser may request a “make good” from the media supplier. This exercise is very common in the television industry. In the example presented here, the advertiser is 50 Gross Rating Points short of their target, which would be made up with spare ad inventory that is available at the stations who delivered the original campaign. Reference List Barban A. M., S.M. Cristol, F.J. Kopec (1993). Essentials of MediaPlanning: A Marketing Viewpoint, 3rd ed. Lincolnwood, ILNTC Business Books. Brierley S. (2002). The Advertising Handbook, 2nd ed. UK Routledge, London. Danaher P.J. (1991). A Canonical Expansion Model for Multivariate Media Exposure Distributions: A Generalization of the Duplication of Viewing Law, Journal of Marketing Research, 283:361–363. Gail Edmondson, (2007). “VW Wheels, Porsche Driver?” BusinessWeek Europe Katz, H. (2010) The Media Handbook, 4th edition, Routledge. Kelley L.D., D.W. Jugenheimer (2004). Advertising MediaPlanning: A Brand Management Approach Armonk, NYM. E. Sharpe. Scott G. Dacca, (2008). The Advanced Dictionary of Marketing: Putting Theory to Use Oxford University Press. Scissors J.Z., R.B. Baron (2002). Advertising MediaPlanning, 6th ed. Chicago, IL McGraw-Hill. Read More