Media Strategy

Analysis of the Effects of Media Strategies on Consumer buying Behaviour


Academic Paper, 2017
243 Pages

Excerpt

BRIEF CONTENTS

1 Media: An Introduction

2 Media Strategies

3 Consumer Purchase Behaviour

4 FMCG Industry

5 Analysis of the effect of media strategies on consumer purchase behaviour with special reference to FMCG products

PREFACE

The influence of media on consumer behaviour is profound. The billions of dollars spent in advertising each year attest to the impact of media on consumer purchasing and buying preferences. The ability of media to shape consumer trends and tastes through media such as movies, television shows and music is all-pervasive. New media such as Internet sites accelerates consumer receptivity to products through comments made on websites and blogs.

Media is such a part of our daily lives that we don’t even realize it's influencing us in big and small ways. Media use in advertising is purposely designed to elicit a change in consumer action, belief and perception. It unabashedly woos us to buy products we don’t need and trust wholly with product claims that are puffery or exaggerated.

Almost every one grows up in the world which is flooded with the mass media e.g. television, advertising, films, videos, billboards, magazines, movies, music, newspaper, and internet. Of all marketing weapons, media advertising is renowned for its long lasting impact on viewer’s mind, as its exposure is much broader. As a promotional strategy, advertising serves as a major tool in creating product awareness in the mind of a potential consumer to take eventual purchase decision. Advertising through all mediums influence audiences.

Today’s modern environment, media advertisements have become one of the major sources of communicational tool between the manufacturer and the user of the products. A company cannot make dream to be a well known brand until they invests in their promotional activities, for which consumer market have been dominating through advertisements. As the primary mission of advertiser is to reach prospective customers and influence their awareness, attitudes and buying behaviour.

In today’s dynamic world, it is almost impossible for advertisers to deliver advertising message and information to buyers without use of advertising. Certainly, this may be because of the globalization and accessibility of hundreds of channels for the viewers of this modern era. Now a day, due to globalized economy, this made available a bulk of marketing stimuli to the modern consumers. More often consumerism describes the way of equating personal happiness, with purchasing material possessions and consumption in excess of one’s need.

The main purpose of media advertising itself is to persuade audience (viewers, readers, or listeners) to take some action with respect to products, ideas, or services (Curtis, 2012). The success of media advertisements can be determined by the consumer’s final decision to consume the said products or service, in oppose to the competitors. In correlation, consumer behavior indicates the act of acquiring, using and disposing of products, services, ideas, or experiences whilst includes the search for information and actual purchase. The outlets of mass media include, but not limited to billboards, Internet, magazine, television, and radio. Mass media advertising generally dwells on multiple outlets and tends to be consistent when it comes to visually branding their image. This serves the purpose of generating consumer’s association with specific value and concepts with the company’s products.

It has studied the relation of advertising and media planning and its impact on effectiveness of promotion activities. Advertising is a very important communication tool, highly visible and more effective. It helps to create awareness, remind, persuade to buy and retain the existing customers. People in markets feel that is the need of the time for business. There are different media available in the market like print, electronic and outdoor. Out of many media available and their unique features, the task of media planner has become difficult and risky. For effective advertising programme in present situation the need for strategic media planning is strongly felt. The media planning is “a process of designing a course of action that shows how advertising time and space will be used to contribute to achievement of marketing objectives. Media Planning covers media objectives, selection of media, scheduling of media, budgeting and coordination. Proper media planning ensures the required information is communicated to the target group wherever they live as per their convenience and at reasonable cost. The objective must be fulfilled effectively. It contributes in achievement of advertising objective properly. Without adequate media planning the whole purpose of advertising may be defeated. To a good extent advertising effectiveness depends upon media planning and its effectiveness.

Chapter - I MEDIA : AN INTRODUCTION

"Mass Advertising can help build brands, but authenticity is what makes them last. If people believe they share values with a company, they will stay loyal to the brand ".

HOWARD SCHULTZ

OBJECTIVES

The objectives of this lesson are to help you to understand :

- The meaning and concept of Media Advertising and communication
- Role and importance of Media
- Types of media Vehicles
- Characteristics of Media

STRACTURE

1.0 Introduction

Organizations have always deployed strategies for their various operations in business. Strategic positioning is a favoured technique that is portrayed as relevant in order to achieve a sustainable competitive advantage (Porter, 1996). Media were added to the pool of strategic activities in the last decade. Companies are now rethinking their business strategies due to the rise of media (Fraser & Dutta, 2008; Peters et al., 2013). It is a powerful phenomenon that changed the social interaction globally. Therefore, Media strategy is crucial for companies today to engage in social networks in order to be competitive on the market towards products and services (Burkhalter et al., 2014; Othman et al., 2013; Kaplan & Haenlein, 2010; Larson & Watson, 2011). The usage of media for communication with customers is inevitable nowadays, whether it is for advertising products or services, answering consumer questions and complaints or for information purposes. Media strategy is changing the way businesses are conducted with representing a low-cost platform for personal branding (Dutta, 2010), and regardless of the company size or industry, media marketing has become a mandatory element of a company’s marketing strategy (Hanna et al., 2011).

The media advertisers make appeals to the target audience to make them respond positively to their marketing offers. The trends all over the world are indicating that the use of media advertisements as a communicating tool is increased year by year through different media channels. The consumers are exposed to a wide variety of advertisements of various companies and through different media vehicles. So Companies use advertising to establish a basic awareness of the product or service in the mind of the potential customer and to build up knowledge about it (Morden, 1991). Marketers believe that effective media advertising creates or augments the perceived degree of differentiation among brands. This will increase brand “loyalty” which, in turn, will reduce demand elasticity's, increase mark-ups of price over marginal cost, increase barriers to entry and reduce consumer welfare (Bain, 1956; Comanor and Wilson, 1979). The specialty of effective media advertising is that it is capable of generating the need for a product which otherwise may not be felt by the consumers.

Almost every one grows up in the world which is flooded with the mass media e.g. television, advertising, films, videos, billboards, magazines, movies, music, newspaper, and internet. these are all marketing weapons, the effective media advertising is renowned for its long lasting impact on viewer’s or consumer's mind, as its exposure is much broader. Advertising is a subset of promotion mix which is one of the 4P’s in the marketing mix i.e. product, price, place and promotion. As a promotional strategy, media serves as a major tool in creating product awareness in the mind of a potential consumer to take eventual purchase decision. Media advertising, sales promotion and public relations are mass-communication tools available to marketers. Advertising through all mediums influence audiences. Media can influence not only the individual’s attitude, behaviour, life style, exposure and in the long run, even the culture of the country. The evolution of media advertisement dates back into the ancient times. Societies used symbols, and pictorial signs to attract their product users. Over centuries, these elements were used for promotion of products.

In the early ages, these were handmade and were produced at limited scale for promotions. Later on, this phenomenon gained strength more intensively for promotional purposes. Today’s modern environment, effective Media advertisements have become one of the major sources of communicational tool between the manufacturer and the user of the products. Media Advertising has multiple roles in that it is not only used by firms to create awareness among customers for their products and services, but also as a tool to build a strong image for brands by dramatizing and presenting their products and services in such a way as to attract customers’ attention. The marketer will be almost failing if the targeted audience is not having awareness of the goods and services. This is so because consumers are going to buy only the goods and services they are aware of. Therefore almost all the marketers have to see that their customers choices and made aware of their offerings through effective media strategies.

1.1 Media Advertisement as A Communication Process

The figure no: 1.1 is the basic model of communication process which starts from sender and ends with receiver which even include responses and feedback. In the same way media advertising is also a communication process in the sense that a marketer tries to communicate to the targeted audiences or the consumers.

Figure - 1.1: Elements in the Communication Process

Abbildung in dieser Leseprobe nicht enthalten

Here the sender of the message is marketer. Whereas the receiver is the targeted audiences to whom the message is sent.

Sender: When advertising is viewed as a communication process the sender of the message is the marketer or advertisers who prepares the advertisement with a specific objective in mind.

Receiver: The receiver of the message in the case of advertisement is the consumer or the targeted audience for whose awareness all the effort of advertisement is undertaken.

Encoding: The sender i.e. a marketer or the advertiser prepares or encodes the message that he is desirous of passing to the targeted audience. He does this depending upon his understanding of the targeted audiences, what message he desires to pass on and amount of creativity he can use.

Decoding: The receiver decodes the message depending on his understanding level which is influenced by large number of factors such as education, perception, attitude, learning, past experience, etc.

Media: The marketer uses the media so that the message reaches the targeted audience at the right time and in the right frame. For the same a marketer uses media such as television, newspaper, magazines, radio, banner, mobiles and internet. It is very important here to know the actual media habits of the prospective customers so that accordingly the media related strategy can be framed.

Message: The marketer always desires that his message is loud and clear. This is the stage where marketer wishes that an advertising professional is hired so that the money spend on the advertising do not go in vain.

Response: It is nothing but the action of the prospective customer which may range from mere awareness of the product to final decision to buy. Even if there is a change in opinion about a product or a customer is coached how to use the product or at least convinced the product is of superior quality we can say the very purpose of the advertisement is achieved.

Feedback: Marketers are interested in knowing whether the message has reached or not. Even if it has reached, marketer is interested in knowing if the message has reached in the right perspective. For the same surveys are carried out to make a detail inquiry to collect customers’ knowledge.

Noise: When an advertisement is carried out and the customer is exposed to the media in which advertisement is carried out there are chances that the media may not be able to fulfil the very purpose of its making because of noise present in the environment. This noise in extreme case can be the rigidity of opinions and perceptions, the way information is analyzed, huge amount of clutter, etc because of which actual product’s advertisement is not heard.

1.2 AIDA model

Marketing communication ,especially media advertising is meant for group of users of products called the target audience. After identifying the target audience, it must determine the response desired. The ultimate response desired is of course the buying of the products or services. It must know the decision making process that leads the target audience from its present position to a higher state of readiness to buy. the effectiveness of media advertising depends upon to what extent the advertising message is received and accepted by the target audience. Most of research has identified that an advertisement to be effective has to

- Attract attention
- Secure interest
- Build desire for the product and finally
- Obtain action

This is one solitary reason behind the great divergence between the number of people exposed to the media advertisement and those who ultimately take the purchase decisions. At this stage, other elements of marketing mix, especially distribution become crucial.

Media advertisement communicates an idea, a message or a belief . An advertisement would be effective only if the media audience accepts that message and is motivated to take the required action.

AIDA stands for

- A -- Attracting A ttention

- I -- Rousing I nterest

- D -- Building D esire

- A -- Obtaining A ction

Media advertising as a communication medium can in most cases effectively perform the first three functions. in the case of direct action advertising , it must also translate desire into action, unaided by any other promotional instruments.

Attention: The layout is the most important factor that directs attention to an advertisement .Typography and colours used in the layout can rivet us .The size of the advertisement compels us to attracted to it. In media advertisement -filled world, it need to be quick and direct to grab people's attention. Use powerful words, or a picture that will catch the reader's eye and make them stop and read what you have to say next. With most office workers suffering from e-mail overload, action-seeking e-mails need subject lines that will encourage recipients to open them and read the contents.

Interest: This is one of the most challenging stages in the AIDA model: It create the attention of a chunk of final target audience, but can engage with them enough so that audience will want to spend their precious time understanding your message in more detail? Gaining the reader's interest is a deeper process than grabbing their attention. They will give you a little more time to do it, but ads must stay focused on their needs. This means helping them to pick out the messages that are relevant to them quickly. So use bullets and subheadings, and break up the text to make points stand out.

Desire: The Interest and Desire parts of the AIDA model go hand-in-hand. As advertisement building the reader's interest, audience also need to help them understand how and what ads offering for them. The main way of doing this is by appealing to consumers personal needs and wants. It must create a desire for the product or service being advertised. It sis function of appeals used for the motivation of the people.

Action: Finally, be very clear about what action ads want readers to take. the logical end of the desire aroused is to buy the product.

1. Products are associated with the company
2. The message is repeated
3. Certain immediate action appeals are used

The attention stage is cognitive stage .In this stage, the target audience is exposed to the message, which, when received by tem causes a cognitive response awareness. The interest and desire stage are the effective stages which effect the attitude and bring about an intension to buy. AIDA model suggests only the desirable qualities in media advertising copy as a communication tool.

1.3 Media has been defined by experts as follows.

The marketer uses the media so that the message reaches the targeted audience at the right time and in the right frame. For the same a marketer uses media such as television, newspaper, magazines, radio, banner, mobiles and internet. It is very important here to know the actual media habits of the prospective customers so that accordingly the media related strategy can be framed with "A plan of action by an advertiser for bringing advertising messages to the attention of consumers through the use of appropriate media".

"Media is defined as “the mix of media that carry the advertisers’ message to the target audience and forms an important link between the firms and customers”. There are different media available in the market like print, electronic and outdoor. For effective advertising programme in present situation the need for strategic media planning is strongly felt , so that media planning play a Vitol role in building of media strategy. "The media planning is “a process of designing a course of action that shows how advertising time and space will be used to contribute to achievement of marketing objectives"."Media strategic Planning covers media objectives, selection of media, scheduling of media, budgeting and coordination"."Proper media planning ensures the required information is communicated to the target group. The objective must be fulfilled effectively. Without adequate media strategic planning the whole purpose of advertising may be defeated".

1.3.1 Why study media?

A marketer or an advertiser who is desirous of bringing about any kind of awareness amongst the consumers or target audiences has to first of all focus on the media option available at his disposal. Further a marketer or an advertiser makes analysis regarding the medium that is affordable and feasible to use. Effective advertising is possible only if suitable media are available. Thus studying and scrutinizing different media becomes inevitable for a marketer or an advertiser.

1.3.2 Role of Media in Advertising

In advertising the term media refers to communication vehicles such as newspapers, magazines, radio, television, billboards, direct mail, and the Internet. Advertisers use media to convey commercial messages to their target audiences, and the media depend to different degrees on advertising revenues to cover the cost of their operations. While the media are valued for their informational and entertainment functions, they also provide an important business function as a vehicle for advertising The media are usually classified into either mass or niche media. Newspapers, magazines, television and radio are considered mass media because they deliver messages to a widespread, anonymous audience. The wide coverage of the mass media makes them ideal vehicles for advertisers who need to reach a large audience. Advertising media such as cable television and direct mail are often viewed as “niche” media because they reach a narrowly defined audience with unique demographic characteristics or special interests.

1.3.3 Media Objectives

An objective can be defined as "something toward which efforts are put achieve it. Whatever the concerned party wants to achieve and for that efforts are put is called objective.Every organization should have objectives to provide a framework for action. Now, for media the objective is whatever the media advertiser wants to achieve through the media advertisements. In media advertising, the well-developed campaign has aims and goals. Good objectives provide the advertiser with guidance and direction for the development of the campaign. Further the objective helps in evaluating the actual performance of the media advertising whether it has been achieved or not.The objectives are divided generally in two groups and these direct and indirect action objectives.

Direct-action objectives are when efforts are put and results are achieved. These are easily measured in terms sales, profits, number of customers attracted etc.

Indirect action objectives are when efforts are put but the result is not direct or immediate. The effect is in long run. When advertising is made to develop image of the company, changing consumers’ behaviour and developing public- corporate relations is called indirect action objectives. No immediate effect can be attributed to such ads in most situations. In other words, the evaluation process for ads with indirect-action (communication) objectives is much more subjective than is the case for the sales or action-oriented advertising effort. There may be many objectives of media advertising for the company time to time when they are giving advertisements. The objectives also vary situation to situation. However, the main objectives of advertising are summarized as follows:

(a) To create Awareness

The first objective of advertising is to create awareness among customers regarding the products or services the company offers for them first time. The customers are not knowing about the new product or service has been launched by the company. At that time the advertisement is given with the objective to inform them regarding the efforts of the company. This objective is only to create awareness of the prospects. For example, when a company introduces its new model of a car first time and interested to inform customers regarding this.

(b) To Remind the Customers

When the advertiser gives advertisement second time or repeatedly its objective is not to inform first time to create awareness but to remind regarding the first advertisement. Further, when the company is interested to inform its existing customers regarding its products or services already existing in market is to remind the customers. They should not forget the offers of the advertisers. This helps in keeping update knowledge of the customers regarding products availability in the markets. Most of the companies are giving advertisement with this objective in market competitive situation.

(c) To Persuade Customers

The advertiser is giving advertisements with the interest to remind them repeatedly so that it would become difficult for them to avoid advertisement. One day sooner or later they have to pay attention and agree for the products of the company. The efforts are to make them agree for buying the products of the company. The objective is to persuade them for the desired action. Only thing is that if time taken by the customer to get persuade is longer than it may be costly for the advertiser due to repeated advertisements for longer period.

(d) To Retain Existing Customers

Another objective of advertising is to retain the existing customers. The company is interested to keep its existing customers regarding products attributes, new changes, improvements etc. They should continue with their products and should not change over to the products of their competitors. It is very easy to lose a customer but difficult to retain a customer. In markets, the companies are putting their sincere efforts in advertising with the objective to keep their customers well intact. With retaining the customers the company can sustain its sales, profits and market shares.

(e) To Neutralize Competition

In markets the companies are facing stiff competition in most of the areas. It has become very difficult for them to carry out their business effectively and efficiently. It is a matter of survival, growth, stabilise and excel in their business. Every competitor is putting sincere efforts to taken the advantage. For fighting this situation the advertisers are giving advertisements with the objectives to keep them in the race in the market. Therefore, the objective of advertising given is to neutralize competition effect. From the situation of the market, it has been observed that the objectives of the companies are not same all the times. These vary from time to time. But the objectives are out of the above mentioned objectives individually or in combination.

1.3.4 Different types of Media and Vehicles

Organisations use the services of a variety of media in order that they can deliver their planned messages to target audiences. These are print media, electronic media and other media . Within each of these classes there are particular media types. within the electronic media there are television and radio, and within the print class there are newspapers and magazines. Within each type of medium there are a huge number of different media vehiclesthat can be selected to carry an advertiser’s message. In print there are consumer and business-oriented magazines and the number of specialist magazines is expanding rapidly. This provides opportunities for advertisers to send messages to well-defined homogeneous groups that improves effectiveness and reduces wastage in communication spend. One of the key tasks of the marketing communications manager is to decide which combination of vehicles should be selected to carry the message to the target audience.

I. Print Media:
- Newspapers
- Magazines

II. Electronic Media:
- Television
- Radio

III. Outdoor media
- Booklets and Brochures
- Billboards

IV. New Age Media:
- Mobile Phones
- Computers
- Internet
- Electronic Books

I. Print media

Newspapers and magazines are the two main types of media in this class. They attract advertisers for a variety of reasons, the most important of which is that print media are very effective at delivering a message to the target audience. Most people have access to either a newspaper or a magazine. They read in order to keep up to date with news and events or to provide themselves with a source of entertainment. People tend to have consistent reading habits and buy or borrow the same media vehicles regularly. For example, most people read the same type of newspaper(s) each day and their regular choice of magazine reflects either their business or leisure interests, which are normally quite stable. This means that advertisers, through marketing research, are able to build a database of the main characteristics of their readers. This in turn allows advertisers to buy space in those media vehicles that will be read by the sort of people they think will benefit from their product or service. The printed word provides advertisers with the opportunity to explain their message in a way that most other media cannot. Such explanations can be in the form of either a picture or a photograph, perhaps demonstrating how a product is to be used. Alternatively, the written word can be used to argue why a product should be used and detail the advantages and benefits that consumption will provide the user.

In reality, advertisers use a combination of these two forms of communication. The print media are most suitable for messages designed when high involvement is present in the target market. These readers not only control the pace at which they read a magazine or newspaper but The media also expend effort to read advertisements because they care about particular issues. Where elaboration is high and the central processing route is preferred, messages that provide a large amount of information are best presented in the printed form. Magazines are able to reach quite specialised audiences and tend to be selective in terms of the messages they carry. In contrast, newspapers reach a high percentage of the population and can be referred to as a mass medium. The messages that newspapers carry are usually for products and services that have a general appeal.

a) Newspapers

Expenditure on newspaper advertising increased steadily in the 1980s, but fell back sharply with the recession in the early 1990s. Since 1986, newspaper readership has fallen, but the biggest shift has been away from the popular press with some movement towards the quality press. In 2000 expenditure on newspaper advertising reached £5 billion or 30% of the total UK advertising spend (Advertising Association, 2001).

- Strength s

Newspaper advertisements are seen positively by readers because they are in control of the speed and depth of reading of the newspaper. This means that they choose which advertisements to read. This facilitates what is referred to as comparison shopping. Newspapers provide wide exposure for advertisements, and market coverage in local, regional or national papers can be extensive. These media vehicles are extremely flexible as they present opportunities for the use of colour and allow advertisements of variable sizes, insertions and coupons.

- Weaknesses

The combination of a high number of advertisements and the small amount of reading time that readers give to newspapers means that most newspaper advertisements receive little exposure. Statistics show that newspaper circulation has fallen behind population growth; furthermore, teenagers and young adults generally do not read newspapers. Advertising costs have risen very quickly and the competition to provide news, not just from other newspapers but other sources such as cable, satellite and terrestrial television, means that newspapers are no longer one of the main providers of news. One of the consequences of this has been the development of price wars between many of the broadsheets, with The Times and Sunday Times leading the battle by discounting the Sunday and Monday papers at various times. Printing technologies have advanced considerably during the 1980s and 1990s, but the relatively poor quality of reproduction means that the impact of advertisements can often be lost.

b) Magazines

The number of consumer magazines has grown considerably and competition is intense. Advertising revenue grew by 3% (Advertising Association, 2001) in 2000, whereas business magazines increased The media by over 6%. Business magazines attract nearly twice as much advertising revenue as the consumer sector, despite being highly fragmented and complex. The fastest growing part of the consumer magazine market has been the men’s lifestyle sector, where titles such as Loaded, FHM and Men’s Health have established themselves quickly. The signs in 2001 are that this growth has levelled off.

- Strengths

The visual quality of magazines is normally very high, a result of using top-class materials and technologies. This provides advertisers with greater flexibility in the way in which the visual immersion is used to present their messages, which can be used to create impact and demand the attention of the reader. The large number and wide range of specialised titles means that narrow, specific target audiences can be reached much more successfully than with other media vehicles. For example, messages concerning ski equipment, clothing and resorts will be best presented in specialist ski magazines on the basis that they will be read by those who have an interest in skiing, and not knitting, snooker or fishing. Magazines can provide a prestigious and high-quality environment, with the editorial providing authority, reassurance and credibility to the advertising that they contain. Magazines are often passed along to others to read once the original user has finished reading them. This longevity issue highlights the difference between circulation (the number of people who buy or subscribe to a magazine) and readership (the number of people who actually read the vehicle, perhaps as a friend or partner at home, in a doctor’s waiting room or at the instigation of a department head or workplace superior).

- Weaknesses

Magazine audience growth rates have fallen behind the growth in advertising rates. Therefore the value of advertising in magazines has declined relative to some other types of media. The long period of time necessary to book space in advance of publication dates and to provide suitable artwork means that management has little flexibility once it has agreed to use magazines as part of the media schedule. Apart from specialist magazines, a single magazine rarely reaches the majority of a market segment. Several magazines must be used to reach potential users. Having reached the target, impact often builds slowly, as some readers do not read their magazine until some days after they have received it. The absolute and relative costs associated with magazines are fairly high, particularly costs for general interest magazines (GIMs). For special interest magazines (SIMs), however, they allow advertisers to reach their target audiences with little waste and hence high levels of efficiency. One final form of print media yet to be discussed concerns directories. Advertising expenditure on directories has continued to increase. One of the largest consumer directories is Yellow Pages, or Yell as they are now called as they have diversified across new media (e.g. Yell.com).

II. Electronic media (Broadcast media)

Broadcast media are quite young in comparison with the printed word. Fundamentally, there are two main forms of broadcast, television and radio, to which attention will be given here. Advertisers use these classes of media because they can reach mass audiences with their messages at a relatively low cost per target reached. Approximately 98% of the population in the United Kingdom has access to a television set and a similar number have a radio. The majority of viewers use television passively, as a form of entertainment; however, new technological applications, such as digitalisation, indicate that television will be used proactively for a range of services, such as banking and shopping. Radio demands active participation, but can reach people who are out of the home environment.

Broadcast media allow advertisers to add visual and/or sound dimensions to their messages. The opportunity to demonstrate or to show the benefits or results that a particular product can bring gives life and energy to an advertiser’s message. Television uses sight, sound and movement, whereas radio can only use its audio capacity to convey meaning. Both media have the potential to tell stories and to appeal to people’s emotions when transmitting a message. These are dimensions that the printed media find difficulty in achieving effectively within the time allocations that advertisers can afford. Advertising messages transmitted through the broadcast media use a small period of time, normally sixty, thirty or twenty seconds, that the owners of the media are prepared to sell. The cost of the different time slots varies throughout a single transmission day and with the popularity of individual programmes. The more listeners or viewers that a programme attracts, the greater the price charged for a slice of time to transmit an advertising message. This impacts upon the costs associated with such advertising. The time-based costs for television can be extremely large. For example, the average station price for a thirty second spot on Coronation Street was £140,000 (June 2000).

However, this large cost needs to be put in perspective. The actual cost of reaching individual members of the target audience is quite low, simply because all of the costs associated with the production of the message and the purchase of time to transmit the message can be spread across a mass of individuals, as discussed earlier.

The costs associated with radio transmissions are relatively low when compared with television. This reflects the lack of prestige that radio has and the pervasiveness of television. People are normally unable, and usually unwilling, to become actively involved with broadcast advertising messages. They cannot control the pace at which they consume such advertising and as time is expensive and short, so advertisers do not have the opportunity to present detailed information. The result is that this medium is most suitable for low-involvement messages. Where the need for elaboration is low and the peripheral processing route is preferred, messages transmitted through electronic media should seek to draw attention, create awareness and improve levels of interest. As the television and radio industries become increasingly fragmented, so the ability to reach particular market segments improves. This means that the potential effectiveness of advertising through these media increases. These media are used a great deal by consumer markets, mainly because of their ability to reach mass audiences. Messages targeted at other organisations need to be delivered by other media that are more selective and controlled more effectively.

a) Television

There has been above-inflation growth in television advertising expenditure since the early 1990s. Annual growth in 2000 was 11%, fuelled partly by dotcom branding and associated flotation activities. This growth has stopped abruptly in 2001 and station average prices have been falling by anything up to 30%, causing major difficulties for the various television owners. The number of households connected to cable networks represented 14% of all homes by December 2000. More importantly, the percentage of homes connected as a percentage of the number of homes that could be connected has risen from 21% in 1996 to 25.4% in 2000. This slow but increasing acceptance of cable television should encourage advertisers, who will be able to target their audiences much more easily and communicate with them with less wastage.

- Strengths

From a creative point of view this medium is very flexible and the impact generated by the combination of sight and sound should not be underestimated. Consumer involvement and likeability of an advertisement is dependent upon the skill of the creative team. The prestige and status associated with television advertising is higher than that of other media: in some cases, the credibility and status of a product or organisation can be enhanced significantly just by being seen to be advertising on television. The costs of reaching members of large target segments are relatively low, so the medium is capable of a high level of cost efficiency.

- Weaknesses

Because the length of any single exposure is short, messages have to be repeated on television in order to enhance learning and memory. This increases the absolute costs of producing and transmitting television commercials, which can be large, making this medium the most expensive form of advertising. Television audiences are increasingly fragmented as the number of entertainment and leisure opportunities expands. For example, terrestrial television networks are suffering from the competition from cable and satellite broadcasters plus video recorders and other sources of entertainment. This proliferation of suppliers has led to television clutter. In order to keep viewers, programmes are now promoted vigorously by television companies and a variety of techniques are being used to prevent viewers from channel grazing (switching). The trend towards shorter messages has led to increased clutter. Management flexibility over the message is frustrated, as last-minute changes to schedules are expensive and difficult to implement. The only choices open to decision makers are either to proceed with an advertisement or to ‘pull’ it, should circumstances change in such a way that it would be inappropriate to proceed.

b) Radio

There has been a rapid increase in the number of commercial radio services offered in the United Kingdom since 1973. Advertising expenditure on radio has recovered from a dip in the mid-1980s and in real terms levelled out in 1992. By 2000 radio advertising revenue more than doubled to reach £595 million, reflecting increased interest and enthusiasm for what is often regarded as an underestimated yet versatile medium.

- Strengths

Radio permits specialised programming, which in turn attracts selective audiences. Radio is a mobile medium (that is, one that can travel with audiences), so that messages can be relayed, for example, even when shoppers are parking their cars near to a shopping precinct. The production costs are low and radio has great flexibility, which management can use to meet changing environmental and customer needs. If it is raining in the morning an advertiser can implement a promotional campaign for umbrellas in the afternoon. From a creative point of view the medium needs the active imagination of the listener. Radio has a high level of passive acceptance and the messages that are received are more likely to be retained than if they were delivered via a different medium. This combination of features makes radio an excellent support medium.

- Weaknesses

Because there is an absence of visual stimuli, the medium lacks impact and the ability to hold and enthuse an audience. Levels of inattentiveness can be high, which means that a large number of messages are invariably ignored or missed. When this is combined with low average audiences high levels of frequency are required to achieve acceptable levels of reach.

III. Outdoor media

The range of outdoor media encompasses a large number of different media, each characterised by two elements. First, they are observed by their target audiences at locations away from home. Secondly, they are normally used to support messages that are transmitted through the primary media: broadcast and print. Outdoor media can, therefore, be seen to be a secondary, but important support media for a complementary and effective communications mix. Media spend on outdoor advertising declined in the earlier 1990s after steady growth in the 1980s. Growth returned to the sector as the UK economy moved out of recession and then in the latter half of the 1990s expenditure exploded, doubling in just four years to reach £823million by 2000 (Advertising Association, 2001). Outdoor media consist of three main formats: street furniture, such as bus shelters; billboards, which consist primarily of 96 and 48 sheet poster sites; and Transit, which covers the Underground, buses, taxis and aerial signs (hot-air balloons). Outdoor media accounted for approximately 4.8% of total advertising expenditure in 2000, and have been taking an increasing percentage of organisations’ media spend. One of the main reasons for the surge in interest was the arrival of dotcom brands and their use of outdoor media to drive traffic to particular Web sites.

In addition to this many dotcom brands tried to float on the stock market, buoyed up by the huge wave of expectation that new media companies brought for a short period. Outdoor media was a cost-effective method of reaching potential investors with a short message. Other reasons for the growth in outdoor expenditure are that it can reinforce messages transmitted through primary media, act as a substitute media when primary media are unavailable (e.g. tobacco organisations deprived of access to television and radio) and provide novelty and interest (electronic, inflatable and three-dimensional billboards) which can help avoid the clutter caused by the volume of advertising activity.

a) Billboards and street furniture

These are static displays and, as with outdoor media generally, they are unable to convey a great deal of information in the short period of time that people can attend to the messages. However, advances in technology permit precise targeting of poster campaigns on a national, regional or individual audience basis, or by their proximity to specific outlets, such as banks, CTNs (confectioner, tobacconist and newsagent) and off-licences. Evaluation through the POSTAR system allows for measurement of not only the size and type of audience but also the traffic flows, travel patterns and even how people read posters.

- Strengths

One of the main advantages of this medium springs from its ability to reach a large audience. This means that most members of a target audience are likely to have an opportunity-to-see (OTS) the message, so the cost per contact is very low. It has become recognised that outdoor media can provide tremendous support to other tools in the media mix, particularly at product launch, as back-up and when attempting to build brand name recognition. The medium is characterised by its strong placement flexibility. Messages can be placed geographically, demographically or by activity, such as on the main routes to work or shopping. The potential impact is high, as good sites can draw the eye and make an impression. Gross rating points (GRPs; see main chapter) can be developed quickly by reaching a large percentage of the target audience many times in a short period.

- Weaknesses

Messages transmitted by this medium do not allow for the provision of detailed information. Posters are passed very quickly and the potential attention span is therefore brief. This means that the message must be short, have a high visual impact and be capable of selling an idea or concept very quickly. Printing and production lead times are long; therefore whilst control over message content is high, the flexibility in delivery once showings are agreed can be a limiting factor. The final disadvantage of outdoor media to be discussed is that the effectiveness of message delivery is very difficult to measure and, in an age when accountability is becoming an increasingly important factor, this drawback does not help to promote the usage of this medium.

IV. New Age Media

New media are different from traditional media on a number of grounds but the most important difference is the time that elapses between message receipt and response. With new media the time is very short; response might be virtually instantaneous, and in other cases the audience may be the proactive source of the dialogue. This is unlike traditional media, where a response may be delayed for long periods: minutes, hours, days or even months. Advertisers can target tightly clustered audiences with well-defined messages. Soon advertisers will be able to refine messages so that personal messages can be presented to individual members. This will extend any dialogue on the basis that the audience is active, interested and involved. The Goldfish Guides were one of the first examples of this new era of communication. Customers can request information about a range of products (often diverse) and within 48 hours will receive a colour brochure designed and printed to each individual’s particular requirements (Dickenson, 1998).

One of the major benefits of this system is that customers will receive information when they want to make purchase decisions and advertisers can now get their products in front of prospects at the right time without having to rely on distributors and dealers, whose concern is make a sale rather than push a particular manufacturer. There are two types of new media: off-line and on-line. Off-line media are self-contained units of information (e.g. television ads, CD-ROMs) and usually have a physical presence and are hence more consumer friendly. On-line media are dynamic information communication links that are capable of providing refreshed and updated information (e.g. the Internet). Tele text facilities have expanded as the number of homes able to receive the service increases. Viewers can leaf through pages of text via their television and telephone, select products and services and purchase them for delivery to their home. The facsimile machine is being used increasingly in the business-to-business sector. Its ability to send personalised messages and for receivers to respond and make inquiries or raise objections has been recognised, particularly by those organisations that are adopting direct marketing approaches into their strategy. Added advantages of this new media are its speed of transmission, low absolute costs and the ability to present visual stimuli.

- Strengths

The major strength of the medium rests with its ability to induce an immediate dialogue and to engage individuals with highly reduced levels of communication noise. Participants choose to use the medium, and as such are actively rather than passively involved. Interactive media allow for high levels of personalised or tailored message content.

- Weaknesses

With just two in ten PCs having a modem, digital television starting to gain acceptance and barely 40% of homes passed by cable technology, the reach of interactive media is at present limited. However, this is changing quickly as both advertisers and consumers become familiar with the benefits and costs fall further.

1.3.5 Characteristics of different types of media

Abbildung in dieser eseprobe nicht enthalten

1.3.6 Impact Of Media

You have seen in the earlier sections the tremendous impact of the media on people. Just as a coin has two sides, the impact of mass media also can be positive or negative. Now let us list some of the positive and negative effects of media.

Abbildung in dieser eseprobe nicht enthalten

1.4 Indian Advertising Industry

The earliest of ads that can be seen, appeared in newspapers, from England around the early 1700s. With a beginning like that, Indian advertising has come a long way in today's fast growing tech savvy world in the 21st century. During this journey, it saw the launch of independent advertising agencies, entrance of multinational companies and beginning of India’s only advertising school, MICA (Mudra Institute of Communications, Ahmedabad). This section highlights the salient features of the advertising industry in India and how globalization has played a key role in making Indian advertising industry so impotent. After the tough time of global economic recession, a great fall out was seen in global advertising industry but now it seems to recover and thanks to growth in ad spend of developing countries. Global advertising spending will rebound to reach almost 450 billion US dollars by the end of 2010, and hit 500 billion dollars in 2012, according to the media buying group Zenith Optimedia forecast. Markets in developing countries like India are predicted to grow much faster than developed markets, accounting for almost 36 per cent of all advertising. This can be attributed to following facts about India:

1. It represents almost one-sixth of the global population.
2. It is the fifth largest economy in the world
3. It is one quarter of the earth’s urban humanity
4. It stands for one –third of the world’s democratic population.
5. It is the second largest among the developing economies

It is the first massive, complex society to successfully transit from a socialist economy to a market economy; The following table clearly depicts the significant growth in advertising industry in India

Indian advertising has been placing more emphasis on the importance of both recall and persuasion as brand differentiating messages. Another factor that needs to be considered is the language in the country.

1.5 Growth Of Indian Media Industry

The process of communication to target audience in an Indian market is more complex because communication takes place across multiple contexts, which differ in terms of language, literacy, and other cultural factors. In addition, media differ in their effectiveness in carrying different appeals. The upper middle class in India, unlike the rural market, is well aware of global brands via exposure to global media. A number of media options are available among Indians. Infect we are living in a clutter of different media which are competing with each other for their advertising revenue. The media wise advertising expenditure from 1996 to 2008 reveals that newspapers and TV owned over 90 percent of the Indian ad market, while all other media ad expenditure accounted for almost nothing. By 2010, TV and newspapers still own the biggest share, but some other media grow strong, such as the Internet.

India’s media and entertainment industry grew 15 per cent annually in the last five yearsAnd according to areport by the global consultancy firm KPMG and the Federation of Indian Chambers of Commerce. Growth rates in entertainment and media industry will increase in 2010 as economic conditions are expected to gradually improve.

The media wise advertisement expenditure in India from 1996 to 2010 (projected) reveals that the advertisement expenditure in television media is highest when compared to other Medias followed by Print.

MEDIA AND ENTERTAINMENT INDUSTRY IN 2017 GREW BY ALMOST 13% TO REACH INR 1.5 TRILLION: FICCI - EY REPORT 2018

The Indian Media and Entertainment (M&E) sector reached almost INR1.5 trillion (US$22.7 billion) in 2017, a growth of around 13% over 2016. With its current trajectory, it is expect to cross INR2 trillion (US$31 billion) by 2020, at a CAGR of 11.6%. The digital segment led growth, demonstrating that advertising budgets are in line with the changing content consumption patterns.

The M&E sector continues to grow at a rate faster than the GDP growth rate, reflecting the growing disposable income led by stable economic growth and changing demographics. The report states that subscription growth outpaced advertising growth in 2017 but advertising will continue to grow till 2020n led by digital advertising.

The report estimates that approximately 1.5 million consumers in India today are digital only and would not normally use traditional media. It is expected that this customer base will to grow to ~4 million by 2020 generating significant digital subscription revenues of approximately 20 billion. Going forward, micropayments, enabled through the Unified Payment Interface (UPI) and Bharat Interface for Money (BHIM) platforms developed by the National Payments Corporation of India (NPCI) will further accelerate subscription revenues for entertainment content.

FICCI President, Mr. Rashesh Shah said that the Indian Media and Entertainment (M&E) industry has been hitting new milestones and has stepped onto a matured phase at a growth rate of 11.6% CAGR.

"The need is to promote India as an entertainment hub to the world, facilitate policy change for the betterment of the Indian M&E industry as well as create and encourage platform for Business-to-Business interface and dialogue," added Mr. Shah.

Mr. Farokh Balsara, Partner and M&E Leader, EY India, stated, "Indian M&E sector reached INR1.5 trillion in 2017 led by digital. With digital subscribers expected to reach 20 million by 2020, has Indian M&E reached its digital tipping point? We now need to re-imagin the future of Indian M&E sector."

[...]

Excerpt out of 243 pages

Details

Title
Media Strategy
Subtitle
Analysis of the Effects of Media Strategies on Consumer buying Behaviour
Course
Ph.D
Author
Year
2017
Pages
243
Catalog Number
V435637
ISBN (eBook)
9783668778863
ISBN (Book)
9783668778870
Language
English
Tags
Media, Strategy, Consumer, Influence, Buyer, Seller, Advertising
Quote paper
Rambabu Lavuri (Author), 2017, Media Strategy, Munich, GRIN Verlag, https://www.grin.com/document/435637

Comments

  • No comments yet.
Read the ebook
Title: Media Strategy


Upload papers

Your term paper / thesis:

- Publication as eBook and book
- High royalties for the sales
- Completely free - with ISBN
- It only takes five minutes
- Every paper finds readers

Publish now - it's free