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Belch: Advertising and<br />

Promotion, Sixth Edition<br />

V. Developing the<br />

Integrated Marketing<br />

Communications Program<br />

Figure 10-9 Survey of buying power index<br />

10. Media Planning and<br />

Strategy<br />

The BDI compares the percentage of the brand’s total U.S. sales in a given market<br />

area with the percentage of the total population in the market to determine the sales<br />

potential for that brand in that market area. An example of this calculation is shown in<br />

Figure 10-10. The higher the index number, the more market potential exists. In this<br />

case, the index number indicates this market has high potential for brand development<br />

(see Appendix B for targeted cities).<br />

3. The category development index (CDI) is computed in the same manner as the<br />

BDI, except it uses information regarding the product category (as opposed to the<br />

brand) in the numerator:<br />

CDI = Percentage of product category total sales in market × 100<br />

Percentage of total U.S. population in market<br />

The CDI provides information on the potential for development of the total product<br />

category rather than specific brands. When this information is combined with the BDI,<br />

a much more insightful promotional strategy may be developed. For example, consider<br />

the market potential for coffee in the United States. One might first look at how well<br />

the product category does in a specific market area. In Utah and Idaho, for example, the<br />

category potential is low (see Figure 10-11). The marketer analyzes the BDI to find<br />

how the brand is doing relative to other brands in this area. This information can then<br />

be used in determining how well a particular product category and a particular brand<br />

are performing and figuring what media weight (or quantity of advertising) would be<br />

required to gain additional market share, as shown in Figure 10-12.<br />

While these indexes provide important insights into the market potential for the<br />

firm’s products and/or brands, this information is supplemental to the overall strategy<br />

Percentage of brand sales in South Atlantic region<br />

BDI = Percentage of U.S. population in South Atlantic region × 100<br />

= 50%<br />

× 100<br />

16%<br />

= 312<br />

© The McGraw−Hill<br />

Companies, 2003<br />

Population Effective Buying Income Retail Sales<br />

Metro Area<br />

1/1/01<br />

Total<br />

Pop.<br />

1/1/06<br />

Total<br />

Pop.<br />

%<br />

Change<br />

2001–<br />

1/1/06<br />

Total<br />

Hshlds.<br />

%<br />

Change<br />

2001–<br />

2005<br />

Total<br />

EBI<br />

%<br />

Change<br />

2000–<br />

Average<br />

Household<br />

EBI ($)<br />

2006<br />

Total Retail<br />

Sales<br />

%<br />

Change<br />

2001–<br />

Retail Sales<br />

Per<br />

Household ($)<br />

Buying Power<br />

Index<br />

County (000s) (000s) 2006 (000s) 2006 ($000) 2005 2000 2005 ($000) 2006 2001 2006 2001 2006<br />

OREGON<br />

CORVALLIS 78.7 81.1 3.0 30.9 4.4 1,854,799 30.6 47,993 60,026 992,224 31.9 25,423 32,111 .0253 .0263<br />

BENTON 78.7 81.1 3.0 30.9 4.4 1,854,799 30.6 47.993 60,026 992,224 31.9 25,423 32,111 .0253 .0263<br />

EUGENE-SPRINGFIELD 326.0 343.0 5.2 137.7 6.4 6,555,563 25.9 40,234 47,608 5,760,107 20.8 36,864 41,831 .1118 .1124<br />

LANE 326.0 343.0 5.2 137.7 6.4 6,555,563 25.9 40,234 47,608 5,760,107 20.8 36,864 41,831 .1118 .1124<br />

MEDFORD-ASHLAND 183.9 198.5 7.9 80.2 9.4 3,698,500 28.2 39,366 46,116 5,323,418 36.8 53,074 66,377 .0725 .0769<br />

JACKSON 183.9 198.5 7.9 80.2 9.4 3,698,500 28.2 39,366 46,116 5,323,418 36.8 53,074 66,377 .0725 .0769<br />

PORTLAND-VANCOUVER 1,948.3 2,125.2 9.1 835.6 9.9 52,817,163 35.6 51,205 63,209 36,596,371 26.1 38,160 43,797 .7474 .7940<br />

CLACKAMAS 342.9 372.6 8.7 141.7 9.8 10,102,780 35.8 57,611 71,297 4,621,412 12.8 31,730 32,614 .1288 .1343<br />

COLUMBIA 44.0 48.9 11.1 18.4 12.2 973,958 34.4 44,179 52,933 421,167 36.4 18,823 22,890 .0126 .0136<br />

MULTNOMAH 666.2 688.8 3.4 287.1 3.9 15,876,995 26.6 45,390 55,301 16,090,416 32.2 44,054 56,045 .2665 .2751<br />

WASHINGTON 455.4 507.4 11.4 198.4 12.6 14,049,490 40.1 56,921 70,814 9,554,319 19.0 46,041 48,661 .1945 .2076<br />

YAMHILL 86.5 97.3 12.5 33.8 14.2 1,949,382 36.9 48,097 57,674 960,790 15.2 28,169 28,426 .0265 .0281<br />

CLARK, WASH<br />

PORTLAND-SALEM CONSOLIDATED<br />

353.3 410.2 16.1 156.2 17.4 9,864,558 45.3 51,050 63,153 4,848,267 38.4 26,332 31,039 .1185 .1353<br />

AREA 2,300.7 2,507.5 9.0 979.9 9.9 60,054,928 35.0 49,892 61,287 42,004,281 26.1 37,370 42,866 .8604 .9116<br />

SALEM 352.4 382.3 8.5 144.3 10.1 7,237,765 30.6 42,276 50,158 5,407,910 25.8 32,784 37,477 .1130 .1176<br />

MARION 289.1 312.2 8.0 118.1 9.7 5,934,535 30.2 42,308 50,250 5,193,924 26.5 38,135 43,979 .0976 .1014<br />

POLK 63.3 70.1 10.7 26.2 12.0 1,303,230 32.2 42,130 49,742 213,986 12.2 8,153 8,167 .0154 .0162<br />

TOTAL METRO COUNTIES 2,536.0 2,719.9 7.3 1,072.5 8.2 62,299.232 32.0 47,640 58,088 49,231,763 25.5 39,590 45,904 .9515 .9919<br />

TOTAL STATE 3,464.9 3,702.3 6.9 1,465.3 8.0 78,533,444 30.3 44,416 53,595 62,519,210 24.5 37,014 42,666 1.2320 1.2726<br />

Source: Sales & Marketing Management, September 2001.<br />

Figure 10-10 Calculating<br />

BDI<br />

311<br />

Chapter Ten Media Planning and Strategy

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