Affinity (AI) , % — index of correspondence. Correspondence between target audience frequency and general readership reach is calculated on the basis of the index and it is expressed in percentage. The correspondence index that is less than 100 means that different target audiences will contact an advertising message placed in the publication. When a ffinity equals to 200 it means that representatives of target audience have chance to see an advertising message in this or that publication twice more often than all the other readers. This index is very important for specialized publications.

Аverage frequency — that is average frequency of contacts with target audience. An average number of target audience representatives with an opportunity of advertising appeal in the period of advertising campaign is determined on the basis of the index.

Circulation — that is circulation of a printed publication. The term “circulation” itself is not recommended to use. Audience of one issue is frequently used instead that is characterized by number of target audience representatives involved in reading the issue.

Cost Per Rating Point (CPP), $ — it means cost of 1% of publication target audience information. The index defines correspondence between model placing cost of a certain size and the given issue reach.

Cost Per Thousand (CPT), $ — cost of 1000 readership traffic units information of an advertising medium (it is calculated similarly to CPP). The lower the CPT is the cheaper is informing of a target audience for an advertiser.

Effective Reach — it means efficient reach. Minimum number of target audience representatives to be reached by different advertising mediums for achieving aims of an advertising campaign on the condition of effective frequency is identified by the index.

Effectivе Frequency — it means effective frequency. Minimum number of an advertising block contacts with a target audience during the period of an advertising campaign necessary to have gained planned respond (brand recognition, change of the attitude to the brand etc) is identified by the index.

Frequency — it means frequency. Number of one target audience representative with an advertising message over a certain period of time is calculated with the help of the index.

Gross Rating Point (GRP) , %, — it means amount of all publications reach where commercial information has been placed in over a certain period of time with a glance of exposure frequency in the selected publications. It is possible to get high GRP under conditions of different frequency and reach indices. Conventional degree received characterizes the number of rating points on target and no target audience. Size of GPR is limited by financial opportunities of an advertiser and communication capacity of the publication.

Reach (target) , % —it is a correspondence between readers from a certain target audience (for instance, physicians) from a certain publication and a number of readers of all the publications aiming at target audience. Reach 3+ means that percentage of target audience representatives who have had an opportunity to see an advertising message not less than three times while Reach 3 is percentage of target audience representatives who have seen an advertising message only three times.

Ratio (ratio SoV/SoS) — is an index that defines a ratio between shares in TRP and shares of Ad1. The higher the ratio is, the more effective resources are invested. In the case the Ratio <1 investments exceed shares of rating interests.

SoV in TRP (Share of Voice in TRP) —is a share of a medicine voice in a group conditioned by selected TRP medicines against total size of TRP acquired by all the medicines of a certain group.

SoS (Share of Spend) — is a share of medicine voice in a group conditioned by the volume of advertising investments invested in a medicine against total volume of advertising investments in a certain group.

Target rating point (TRP) , % — is an amount of target publications reach meant for a certain target audience where commercial information is placed during a certain advertising campaign taking into account exposure frequency in publications.

Weighted Target Rating Point (wTRP) — is an index of TRP aiming at respond of placement and advertising blocks sizes by a target audience.

First of all you should decide what medications from the list are to be intensively advertised and which ones are to be subjected to supporting advertising campaign.

Feature example

Problem situation. A company Pharma - Pharma ( conventional name) has operated on the pharmaceutical market of Ukraine for three years. Let's imagine that today it is autumn of the year 2011 (further in the text current period is accepted as year 2011 and future period as year 2012). All the management had been changed and new managers have faced a problem to plan an advertising budget for the year 2012. According to the first stage a list of medications supposed to be promoted via specialized mass media should be made up.

There are five medicines in the company Pharma - Pharma backlog portfolio, but we are going to promote only two brands via specialized mass media namely Allhealer and Superferment. Detailed information on the following medicines is available in the table bellow.

Table 1. Promoted brands description

 

The main task of the second stage is analyses of the situation formed around the brand . It is also necessary to take into account competitors' activity in order to correct communication strategy (media targets and media criteria etc.)

So let's consider every step in a more detailed way:

Step 1. Situational analyses or analyses of the current state of the advertising activity of the brand and competitive environment. Initially it is necessary to determine communication targets as well as their indices that had been planed.

After that while describing target audiences (if promotion was aimed at more than one specialist category) it is necessary to take into account their crossover as well as peculiarities of media preferences of specialist groups in the period of advertising campaign. The source of information is based on research of MTI: «MediaTrustIndex », SBC Consulting Company.

After that we highly recommend to compile a complete list of competitors for each medicine (based on your ATC GROUP and other ATC groups) and to carry out further analyses of your medicines as well as of your competitors' ones. It is necessary to focus on the analyses of competition in the group. The key criterion of the stage while the analysis is being conducted is advertising investments volume.

It is necessary to use data on advertising activity from the project 4 М: «Medical MassMedia Monitoring», SBC Consulting company, an advertising budget for specialized press to plan.

You should take into account the following issues on the stage:

All the groups are divided into the following groups according to competitive activity indices:

Low competitive groups: the number of players in the group is limited; each player's contribution is approximately the same and there is no influence on each other.

Such competitive situation is considered to be favorable since all the actions targeted at the planned product are dependent on the strategy selected by a company and not subjected to the influence of competitors.

Highly competitive groups: the groups feature numerous number of players but there are only some influential among them affecting alignment of competitive forces (according to SoS index). Before taking a dare to carry out an advertising campaign in highly competitive group it is necessary to estimate strengths, resources and potential of the company as well as to determine the crucial criterion that is minimal line of resources involved in group participation. Results of the project 4M: «Medical MassMedia Monitoring» SBC Consulting company, appear to be data for the index.

The results of the actions described above, allow realising character and peculiarities of players' behaviour in the group and correspondently it assists in advertising resources distribution for the future period of planning with a glance of seasonal fluctuations of advertising investments. What should be taken into account while estimating actions of the players is communication channels employed by the competitors. The problem turns out to be extremely burning since all the leading publications (with good media indices) are stuffed with commercial information. Under the circumstances there is a question whether the company-advertiser with a limited advertising budget will manage to look appropriately in such a competitive environment and whether the key message will be delivered to a target audience.

The first step is winded up by the actions. It is necessary to proceed to the analyses and media audit only after having done all the recommended procedures

Step 2. I t is media audit namely detailed analyses of media mix efficiency employed in the previous period. To achieve the aim it is necessary to calculate the following indices (Pic. 2):

The main sources for the calculation are the results of research work and software solutions on the basis of SBC Consulting company projects.

Feature example

Before planning a budget for the medicines of PHARMA-PHARMA managers should analyze the situation formed in the previous period in connection with their brands, they also should estimate level of set aims fulfillment as well as to research market and competitors.

We analyze the situation of the current period for every medicine to be promoted in the specialized mass media.

Preliminary results are introduced in the table 2

Table 2. Situational analyses of the current period

It is necessary to carry out a competitive analysis (Table 3). We should point out that the medicine Superferment has not been promoted in the current period but we implement competitive analyses regarding the medicine anyway. To get to know market better one should know his competitors. Let's consider all the competitors for the brand Supeferment as well as advertising market state in specialised mass media targeting at pharmacists since communication is to be directed at the very target audience in the planned period.

Table 3. List of competitors

Due to the data of the project 4M we can analyse competition formed in the previous year in the specialised mass media.

J01 Group

There are 42 participants in the group which had invested more than $ 791 000 (all the prices are given in open-rate i.e. discounts and bonuses are not taken into account). The category is characterized by well-defined group of leaders and it indicates in its turn high level of competition and necessity to determine minimum line of participation in the group.

The influential group of big players has been formed within the frame of ATC category and it testifies to highly competitiveness of the group. It is clear that having worked out an ambitious strategy of promotion and a budget of 5-10000 there is a big chance to get lost in advertising stream without achieving set goals.

Medicines belonging to the group J01 have been promoted in 24 publications though two publications are the publications where the target audience is pediatricians, and the rest 22 publications are targeted at physicians (Graph. 1).

So the results of Allhealer medicine activity and of its main competitors in the year 2010 were as follows (Table 4):

Table 4. Annual advertising investments of the brand and its main competitors

Not all the competitors were promoted in the publications with the target audience of pediatricians. The very medicine is Antibiotic C. There are different types of players in the group (detailed description is presented on the picture 3.1). To compete with the leaders of the group it is necessary to have budget at least not less than $30000 and for competition with followers and group participants- not less than $15000.

А 09 Group

There was directed an advertising pressure of more than $55000 (Graph. 2) at the target audience of pharmacists in 2010. Seven brands were promoted in specialized mass media. There is a well-defined leader, its followers and petty players.

The brands were promoted via five publications (Graph. 3).

Let's define three most dangerous competitors for us. Since we are planning to actively promote the medicine Superferment, our competitors are Ferment A., Ferment B and Ferment C (Table 5).

Table 5. Annual advertising investments of the main competitors of the medicine Superferment

Having analyzed strategies of the competitors it is possible to generalize that the main activity starts in the second and fourth quarter (most of all these are public holidays such as Easter and New Year Holidays). For us to compete with the group of three it is necessary to have an advertising budget not less than $10 000

Media audit

Due to the project MTI which studies perception of specialized mass media by different target audiences, we have got an opportunity to carry out a media audit for each brand of the company Pharma-Pharma as well as their competitors. Let's carry out a media audit for all the medicines of our company and every target audience.

Group J01, physicians

We should calculate main media indices for the brand Allhealer as well as main indices of the competitors. Let's bring all the indices for the medicine Allhealer together into the table 6.

Table 6. Media indices of advertising investments of the medicine Allhealer, target audience is physicians

Conclusion

Promotion of the medicine Allhealer to the target audience that is physicians might be stated in the following way. According to the results of the year made up a group of three leaders. Ratio of gained TPR to advertising investments exceeded 1 and it proves that high TRP index has been gained despite the low CPP index. Nevertheless SoV of the medicine Allhealer might be increased at the account of selection of publications with wider reach of the target audience. It should be taken into consideration while setting goals and tasks for an advertising campaign for the future periods.

Group J01, pediatricians

Similar actions are to be taken for the target audience- pediatricians ( Graph. 5 , table 7)

Let's calculate all the indices for the medicine.

Table 7. Main Media indices of advertising investments of the medicine Allheale r, target audience is pedi atricians

Conclussion

Successful strategy of the medicine Allhealer was worked out last year in specialized mass media with pediatricians as a target audience. That's why it is necessary to take into account while preparing a new strategy the results that have been achieved.

Group А 09, pharmacists

Media audit for the medicine Superferment has not been carried out because the brand was not promoted in the previous period. In order to understand state of the market we should estimate media mixes used by the players of A09 group ( Graph. 6 ).

Conclusion

The most dangerous competitors for the medicine Superferment are Ferment A, Ferment B and Ferment C. They all have a big share of TRP in the group. But in fact, the efficient media mix was chosen by only one of them- Ferment B. Sufficient resources are necessary to achieve high TRP indices and to be able to compete with the group of three leaders. All the factors should be taken into account in the development of a media strategy for the brand Superferment in future periods.

 

The further step is an advertising campaign goal setting that is literally making a decision as for the direction to head and what to expect in the output. The very goals define the criteria of making decisions and enable estimating final results and overall advertising campaign efficiency. As a rule the goals are predetermined by the general media strategy and the strategy of the company has been worked out on the market

Goals of an advertising campaign should be concrete and well defined without any ambiguity as well as pragmatic, realistic and achievable. The goals should be measurable in order to be aware of the efficiency an advertising campaign has achieved.

For example:

•  to increase target audience reach on N percents and to maximize TRP on N points;

•  to decrease advertising budget on N $ without decreasing target audience reach;

•  to increase share of SoV, SoS to achieve leadership in the group on N percents;

•  to increase frequency of contacts with target audience in N times;

Thus having analyzed situation in the group, determined target audience and set the task it is possible to proceed to the strategies. The following behavior strategies in a group can be distinguished (pic. 3).

Having defined targets and strategies it is necessary to estimate the financial resources once more. While choosing goals and strategies as well as means and media mechanisms of communication of a company one should follow the principle as follows: ratio between price per a contact, quality and efficiency.

Taking into account seasonal prevalence of the demand on a medicine , promotion strategy and other market factors it is also necessary to set terms, to define territory and type of an advertising campaign. Description of advertising campaigns is introduced below (pic. 4 ).

Feature example

Having carried out the analyses of the previous period it is time to proceed to future actions planning. Let's define target audiences to direct communication at for the medicines Allhealer and Superferment. We should also set goals and work out communication strategy. Results are introduced in the table 8.

Table 8 . Goals and strategies of the advertising campaign in specialized mass media

Medicine	Target Audience	Goals of an advertising campaign (set for the period the advertising campaign is being carried out)	Advertising campaign strategies	Advertising campaign terms	Territory	Advertising campaign type
All healer	Physicians	To maximize TRP half as much (to gain 660 rating points) by means of media mix formation from the publications with target audience high reach	To follow a strategy of a challenger	01.01.11- 31.12.11	Ukraine	Irregular intervals and achievement of maximum target audience reach
All healer	Pediatricians	To keep achieved results on the same level: TRP not less than 830 rating points and CPP not more than 75	To follow a strategy of a challenger	01.01.11- 31.12.11	Ukraine	Irregular intervals and achievement of maximum target audience reach
Superferment	Pharmacists	To gain maximum TRP index	To follow a strategy of a leader	01.01.11- 31.12.11	Ukraine	Directed impulse and achievement of maximum target audience reach

Media planning process for the products belonging to one and the same portfolio should be started with determination of necessary budget range for the portfolio. Interval between minimum budget essential for the portfolio and maximum possible (on the condition the budget is spent wisely).

It is necessary to start with drawing up budgets for the medications and target audiences in the case there are some of them before we determine the budget for the portfolio. We shouldn't forget the goals we set for every medication and to use competitive environment analyses data received on the second stage while determining portfolio minimum and maximum budget. Minimum level of participation in the competitors struggle in the group is meant to be minimum budget. Minimum budget is the amount maximum low to start any activities because otherwise we would like a grain of sand in the sea on the background of other players. Maximum budget is such an amount of advertising investments which enables to achieve maximum results and any further advertising budget increase doesn't increase communication efficiency. If to employ another approach towards setting initial task and to distribute existing budget among the portfolio products besides we have to take one more step in this case. After having determined budget range you should compare it with the existing budget (Picture 5).

Having determined required budget range we may get to selection of the most suitable media mix. One should bear in mind all promotion campaign tasks and goals for every medication while choosing publications for media mix. Taking into account required budget and media indices worked out on the second stage we choose maximum suitable media mix combinations. Combination matching can hardly be carried out manually as the process is very time-consuming. SBC PressPlanner solves the tasks automatically with the help of one click and significantly simplifies and accelerates media planning process. SBC PressPlanner realizes rapidly search of suitable combinations of publications for different target audience with a glance at desired media indices and advertising budget.

 

Having considered all possible publication combinations we select maximum optimal one for every medication according to goals and media indices. If we know desired advertising frequency we work out required budget for every medicine. If a medicine has a few target audiences, in this case all the above actions are carried out for every target audience separately, budget for this medication equals to total score of budgets for target audiences.

Т hereby we have a media plan at the end of the stage for all the medications of the portfolio with all main media indices ( including necessary advertising budgets for each medication and target audience).

Feature example

Let's plan media strategy for each medication .

Allhealer medicine media plan

We start media strategy planning with necessary budget range determination. Analysis of JO1 group was carried out on the second stage and goals and strategies were worked out on the third stage. As a result we define minimum annual budget required for set goals achievement (minimum participation level) that constitutes $ 30 000. Target audience of pediatricians is prevailing for the medicine Allhealer and there fore it is necessary to divide total budget –$ 20 000 in 2:1 coinsurance for benefit of pediatricians target audience. Thus minimum budget for the target audience of pediatricians is $ 20 000 and $ 10 000 for physicians.

Applying SBC PressPlanner program we define maximum budgets choosing publication combinations with optimal reach indices. Maximum amount of the budget for physicians target group constitutes $ 68 000 and pediatricians target group- $ 72 000.

We carry out selection of optimal matching combinations within required budget range with the help of SBC PressPlanner.

The preference is given to the combinations fully satisfying promotion goals. As a result we have got a media plan. The selected combination of publications for physicians target audience enabling to achieve the following indices (one-time display in the combination of publications) ( Picture 6).

We should implement this media mix four times a year. It is necessary to emphasize that usage of other publications in the media mix and variants (for example, covers) significantly increased output cost. Change of publication size influences media indices. It has been noticed that usage of commercial materials in a media mix, which size is less than the whole sheet increases TRP indices. As TRP Maximization is a goal set in the promotion, let's consider with the help of other settings of SBC PressPlanner program, three variants of commercial materials placement within selected publication combination with implementation of different sizes of publications.

•  Variant 1. To place only the whole block of commercials in every advertising publication during a year to have as a result twelve full sheets of commercials over the year.

•  Variant 2. The following scheme should be used in every publication as the whole sheet of commercials - two times , half a page - four times and as a result we have six full pages and twelve halves of commercials.

•  Variant 3. It is recommended to place commercials over a year, which size constitutes the whole page- only once and half a page- six times. In the end of the year we get three whole pages and eighteen halves of commercials.

It is no use of considering variants of commercial placement with the size less than half a page taking into account the fact that JO1 group is one of the high competitive groups and usage of small advertising space will not give us positive results. Media indices are worked out for each of suggested variants ( Table 9).

Table 9. Media indices for different variants of publication combination placement for the medicine Allhealer. Physicians are target audience.

Parameter	Fact	Variant 1	Variant 2	Variant 3
Ratio	1,27	1,56	2,25	2,57
SoS, %	4,68	6	6	6
SoV, %	5,96	9	13	14
Ad I on the basis of selected combination of publications for physicians	31211,4	37852,32	37852,32	37852,32
TRP as for the medicine Allhealer	438,5	665,68	998,4	1164,32
CPP	71,18	56,86	37,91	32,50

 

Lets display all the received indices in a diagram form ( Graph. 7)

Taking into account medication Allhealer promotion goals for physicians target audience, we choose the third variant of commercials placement. Budget will constitute in this case $ 37852,32 . While carrying out media planning we shouldn't forget about commercials placement during the planned period. Distribution of commercials within the period including determined advertising campaign type is reflected in the table 10 and picture 7.

Table 10. Media plan for the medication Allhealer for 2011, physicians are target audience

Publication	Quarter 1	Quarter 2	Quarter 3	Quarter 4
Journal for physicians 1	one whole sheet of paper	two halves of a sheet of paper	one half of a sheet of paper	three halves of a sheet of paper
Journal for physicians 2	three halves of a sheet of paper	one whole sheet of paper	one half of a sheet of paper	two halves of a sheet of paper
Journal for physicians 3	two halves of a sheet of paper	three halves of a sheet of paper	one half of a sheet of paper	one whole sheet of paper

 

We carry out the same actions for pediatricians target audience. First of all we select the following combination ( pic. 7 ).

We should implement the selected media combination five times a year. Variants of commercials placement are the same as for the publications for physicians.

• Variant 1. To place only the whole block of commercials in every advertising publication during a year to have as a result 15 full sheets of commercials over the year in three publications.
  
• Variant 2. The following scheme should be used in every publication - the whole sheet of commercials - two times , half a page - six times and as a result we have six full pages and eighteen halves of commercials.
  
• Variant 3. It is recommended to place commercials over a year, which size constitutes the whole page- only once and half a page- four times and a quarter of a sheet- eight times. In the end of the year we get three whole pages and twelve halves and twenty four quarters of a sheet of commercials.

Now let's work out media indices for each placement variant

Table 11 . Media indices for placement variants of medicine Allhealer publications combination , pediatricians are target audience

Parameter	Fact	Variant 1	Variant 2	Variant 3
Ratio	1,26	1,32	1,98	2,93
SoS, %	8,37	7,98	7,98	7,98
SoV, %	10,51	10,51	16	23
Ad I on the basis of selected combination of publications for pediatricianc	62218,62	59048,65	59048,65	59048,65
TRP as for the medicine Allhealer	833,76	832,5	1332,08	2144,63
CPP	74,62	70,93	44,33	27,28

 

Lets display all the received indices in a diagram form ( Graph. 9 ).

Achievement of set goals is sufficient for the first variant but if to take into account the fact that it is possible to gain higher indices for the same advertising budget we should consider the second variant. The third variant is not considered as there are no quarters of a sheet of paper of commercials in the media mix. Managers claim that it will negatively affect the medicine image. Medicine promotion require budget for pediatricians target audience equals to $ 59048, 65. Let's form media mix in the course of the time with a glance at advertising campaign determined time.

Table 12. Media plan for medication Allhealer for 2011, pediatricians - target audience

Publication	Quarter 1	Quarter 2	Quarter 3	Quarter 4
Journal for pediatricians 1	one whole sheet, two halves of a sheet of paper	two halves of a sheet of a paper	one half of a sheet of paper	one whole sheet, one half of a sheet of paper
Journal for pediatricians 2	three halves of a sheet, a half of a sheet of paper	one whole sheet of paper	one half of a sheet of paper	one whole sheet, two halves of a sheet of paper
Journal for pediatricians3	two halves of a sheet, two halves of a sheet of paper	a half of a sheet of paper	one half of a sheet of paper	one whole sheet, two halves of a sheet of paper

 

Hereby the budget required for medicine Allhealer promotion equals to total budget for the medicine promotion within two target audiences - pediatricians and physicians : 37852,32 + 59048,65 = $ 96 900,97

Media plan for Superferment medicine

First of all it is necessary to plan media strategy for Superferment medicine. Minimal budget required for participation in the struggle for consumers among competitors' strategic groups (leaders, group makers and niche players) has already been determined on the second stage. Group leaders are the main competitors of the medicine Superferment and there fore minimal budget should be not less than $ 10 000.

SBC PressPlanner program selected several combination variants and the most suitable one is represented in the picture 8.

In order to achieve set goals and implement worked out strategies during a year it is necessary to realize publications combination four times over the period. Let's consider three variants of commercial placement within the selected combination of publications.

•  Variant 1. To place only the whole block of commercials in every advertising publication during a year to have as a result eight full sheets of commercials over the year in two publications.

•  Variant 2. The following scheme should be used in every publication - the whole sheet of commercials - two times , half a page - four times and as a result we have four full pages and eight halves of commercials.

•  Variant 3. It is recommended to place commercials over a year, which size constitutes the whole page- only once and half a page- three times and a quarter of a sheet- six times. In the end of the year we get two whole pages and six halves and twelve quarters of a sheet of commercials.

Now let's work out media indices for each placement variant.

Table 13 . Media indices for placement variants of medicine Superferment publications combination , pharmacists are target audience

Parameter	Variant 1	Variant 2	Variant 3
Ratio	0,89	1,2	1,66
SoS, %	26	26	26
SoV, %	23	31	43
Ad I on the basis of selected combination of publications for pharmacists	23472	23472	23472
TRP as for the medicine Allhealer	464	696	1160
CPP	50,59	33,72	20,23

 

Let's display all the received indices in a diagram form ( Graph. 10 ).

 

With a glance at the fact that Superferment will be promoted as a market leader, a product manager suggests that commercial materials also make up image of the medicine and it is inappropriate to place commercials on the quarters of the blocks. That's why we chose the second variant. We should also bear in mind while media planning that it is necessary to place commercials during the whole planned period. Seasonal prevalence of the group (the second and fourth quarter) has been noticed in the process of the analysis on the second stage. Now we represent distribution of commercial materials in the course of time taking into account determined type of advertising campaign

Table 14. Media plan for medication Superferment for 2011, pharmacists - target audience

Publication	Quarter 1	Quarter 2	Quarter 3	Quarter 4
Journal for pharmacists 1	One half of a sheet of paper	one whole sheet, one half of a sheet of paper	One half of a sheet of paper	one whole sheet, one half of a sheet of paper
Journal for pharmacists 2	One half of a sheet of paper	one whole sheet, one half of a sheet of paper	One half of a sheet of paper	one whole sheet, one half of a sheet of paper

 

If to suggest that the actions of the main competitors remain the same as in the previous period, we will manage to achieve the highest TRP index among our competitors with the help of worked out media plan ( Graph. 12 ).

Advertising budget for Superferment medicine promotion constitutes $ 23 471.

Read more about Stage 4

Portfolio total budget calculation

We are getting down to the final fifth stage having already known accurate amount of investments required for worked out strategy implementation. All total budgets for medicines are added to figure out one total portfolio budget.

Read more about Stage 5