USING THE COMPUTER AS A PLANNING AID IN AN APPLIED MARKETING COURSE Developments in Business Simulation & Experiential Exercises, Volume 12, 1985 50 USING THE COMPUTER AS A PLANNING AID IN AN APPLIED MARKETING COURSE Richard Kagel, Brigham Young University ABSTRACT Instructors teaching in applied areas, such as marketing planning and strategy, continually look for new techniques that simulate an actual business environment. The case study method is the traditional model used to make the subject matter as professionally realistic as possible. An applied area that we teach is media planning and strategy. We use the traditional case study method. We remain convinced that no other approach provides as good a learning environment for this complex subject. Students in our course must deal with the many planning variables that make up an advertising media plan. Most of these, such as, the reach and frequency goals of an effective strategy, require a great many mathematical calculations that are, normally in professional settings, handled by computers. The computer, in media planning, has created a mini-Industry devoted to analyzing, restructuring and modeling the information provided by syndicated research companies. These service organizations, such as Telmar, Interactive Marketing Systems (IMS), and Marketronics, are becoming very important to media planners. We struggled with the task of introducing the use of the computer to our students as a media planning aid, as it might be available in professional settings. We asked the media service companies for help in terms of on-line computer time. The response was that if we were willing to pay like regular clients, they would accommodate us. Of course, the costs involved precluded following this line any further. We then inquired about the possibility of companies helping us set up our own system on microcomputers. The answer was no, because of the protected nature of the simulations used in media modeling. We then looked at the possibility of finding published software that would provide the models we needed to give our students the hands-on experience that would simulate actual media planning activities. We would be willing to buy the computers to match the software. There was no published software to be found. The only reasonable alternative left was to buy our own microcomputer and program it ourselves. This has proved to be a highly satisfactory solution. We now have the capacity to tailor-write computer programs to match the specifications of our case studies. Writing programs is hard work, involving long hours, but we feel that we have made a successful start. The students seem to respond well to generating their own marketing data and we may even have added some new interest to an old teaching method. At least the students are using the computer in a similar way that professional media planners would. This alone seems to justify the time arid expense involved in the course development process. For a copy of an example case and the accompanying computer listing, write to: Professor Richard Kagel Brigham Young University E-509 HFAC Provo, Utah 84602 USING THE COMPUTER AS A PLANNING AID IN AN APPLIED MARKETING COURSE Instructors teaching in applied areas, such as marketing planning and strategy, continually look for new techniques that simulate an actual business environment. The case study method is the traditional model used to make the subject matter as professionally realistic as possible. An applied area that we teach is media planning and strategy. We use the traditional case study method. We remain convinced that no other approach provides as good a learning environment for this complex subject. Students in our course must deal with the many planning variables that make up an advertising media plan. Most of these, such as, the reach and frequency goals of an effective strategy, require a great many mathematical calculations that are, normally in professional settings, handled by computers. The computer, in media planning, has created a mini-industry devoted to analyzing, restructuring and modeling the information provided by syndicated research companies. These service organizations, such as Telmar, Interactive Marketing System (IMS), and Marketronics, are becoming very important to media planners.1 We struggled with the task of introducing the use of the computer to our students as a media planning aid, as it might be available in professional settings. We asked the media service companies for help in terms of on-line computer time. The response was that if we were willing to pay like regular clients they would accommodate us. Of course, the costs involved precluded following this line any further. We then inquired about the possibility of the companies helping us set up our own systems on microcomputers. The answer was no, because of the protected nature of the simulations used in media modeling. We then looked at the possibility of finding published software that would provide the models we needed to give our students the hands-on experience that would simulate actual media planning activities. We would be willing to buy the computers to match the software. There was no published software to be found. The only reasonable alternative left was to buy our own microcomputer and program it ourself. This has proven to be a highly satisfactory solution. We now have the capacity to tailor-write computer programs to match the specifications of our case studies. Writing programs is hard work, involving long hours, but we feel that we have made a successful start. The students seem to respond well to generating their own marketing data and we may even have added some new interest to an old teaching method. At least the students are using the computer in a similar way that professional media planners would. This alone seems to justify the time and expense involved in the course development process. Developments in Business Simulation & Experiential Exercises, Volume 12, 1985 51 The following case is one example we have developed to provide students with as realistic learning experience as possible. The case objectives were to have students buy newspaper space for a client based on specified marketing and media goals and to teach the use of four media planning variables: unduplicated reach2, circulations, cost per thousand (CPM)4, and newspaper coverage5. These four terms were defined in textbooks available to students. In laboratory classes, the use of the computer was taught and students were able to generate the information they felt most important in making the marketing decisions. The complete case and computer listing follows. The program was written on a Radio Shack Model III in TRSDOS Basic and can be adapted easily for use on other microcomputers. DOWNEY SAVINGS AND LOAN NEWSPAPER MEDIA CASE Downey Savings and Loan, founded in 1945, is a statewide association with 25 offices in Southern California and has 20 offices in the San Francisco Bay Area. Assets are currently $1.3 billion. The company has been steadily growing and this coming fiscal year management hopes to boost assets by 5 percent. Currently, Downey has an advertising budget for the Bay Area of $350,000: 50% radio, 25% direct mail, and 15% outdoor. The advertising budget will be increased to $400,000 in order to introduce newspapers into the media mix. $140,000 of the budget will be used strictly for newspapers. The company hopes that this amount will adequately cover the bay area market where the 20 offices are located. The target consumer is similar to Downeys prime competitor, Home Savings and Loan. Downeys Bay Area locations are: East San Jose (3), San Jose (2), San Francisco (2), Oakland (2), Berkeley (1), Palo Alto (2), Hayward (1), Fremont (1), Antioch (1), Walnut Creek (1), Concord (1), Livermore (1), Martinez (1), Milpitas (1), Richmond (1), Sunnyvale (2), San Mateo (2), Redwood City (2), Menlo Park (1), Cupertino (1). Management has decided that the size of the ads would be the same in each location (½ page or 1050 lines). Downey’s sales department has also indicated that the major thrust of business over the years has occurred during the months of September/October, December/ January, March/April, June/July, especially the last and first 10 days between these months, i.e., (20th of September through the 10th of October). Your Assignment: Budget the $140,00D to determine what buys would give the best coverage of each segment of the market. Determine the relative importance of coverage (reach), audience duplication and cost per thousand. Use the computer assistance program to help you make this determination. Include your printouts with the final report. Get a map of the Bay Area and determine where the offices are, relative to media coverage. (Use the most recent Standard Rate and Data Service edition available). Determine the demographic/psychographic profile of the Downey customer using the Simmons Market Research Bureau data in the library. Use the case study format provided. Other possible sources include U.S. Census Data and Sales and Marketing Management Survey of Buying Power. For Monday, turn in a type written report listing the Bay Area newspapers you would want to consider in the campaign, including circulation, coverage cost per 1D50 lines. This will be used for your computer assisted analysis. Report Format for Mondays Assignment Newspaper Circulation Coverage Cost per 1D50 Lines Case Study Format 1. Title Newspaper Media Plan for (client’s name) 2. Map Include a map of clients marketing region with offices pin pointed. This is a good place to begin so you understand the geographic problems related to covering your market. As you refine and develop your buys, you might color-code areas of map which are covered by certain newspapers. 3. Target Market Define customer profile 4. Style or Technique Use inductive reasoning. State major points in opening summary. Don’t make your plan into a suspense story with a surprise on each succeeding page. Here’s one way to present your summary of the plan: A) Problem Statement: Considering managements goal to Increase assets by 5% during the coming year, which newspapers should be used to maximize coverage (reach) and number of insertions in Our market areas with _____________ annual budget? B) State objectives and major decisions: Discuss coverage goals. Was budget large enough to make insertions every week in the year? Enough for every month in every market? Did you buy a paper in every market shares? Be as positive as possible in pointing out the strengths of your planning genius. If you encountered budget limitations, show how you solved the problem. C) Newspapers selected: List each paper of newspaper group and give rationale for your selections. Give major reasons why you chose the Mercury News, i.e., income, circulation, marketing coverage, etc. D) Newspapers rejected: Which (if any) major newspaper groups did you reject? List each. Give rationale for decision. E) Timing: Considerable care and planning should be given here based on the parameters given in the case. a) When did you advertise? What part of the week? Whet part of the month? b) Frequency...how often did you make insertions? Did you skip any month? Developments in Business Simulation & Experiential Exercises, Volume 12, 1985 52 5. Total Expenditure for Each Newspaper Newspaper Name Budget Allocated % of Total a) Daily Reporter $ 00,000 b) $ 00,000 c) $ 00,000 d) $ 00,000 e) $ 00,000 ______ $120,000 100% 6. Price Paid per Individual Ad Based ( ) Lines Newspaper Name Morning or Evening Piper Sunday Paper a)Daily Reporter Morning - $0000.00 $0000.00 Minimal $ 00.00 Minimal b)Daily Babble Morning & Evening Combo No Buy $0000.00 Minimal $ 00.00 c)Daily Shadow Evening - $0000.00 $0000.00 Minimal $ 00.00 Minimal d)Daily Tempest Morning & Evening Combo $0000.00 $0000.00 Minimal Minimal $ 00.00 7. Flow Chart The purpose is to give a graphic description of media buy. B. Monthly Budget Summary List monthly summary of newspaper expenditures. Give information about each paper including: A) number of insertions B) sub-total of budget allocation year-to-date C) percent budget allocation 9. Appendix Computer summaries6 SAMPLE PRINTOUT OF COMPUTER PROGRAM RICHARD KAGEL 04/04/83 02:32:46 565-B9-7B90 COMPUTER ASSISTED PROJECT FOR DOWNEY SAVINGS AND LOAN CASE Cost/per Newspaper Circ. Coverage 1050 Lines CPM SAMPLE NEWS 35000 34 456.76 13.05 DAILY WIT 3549 35 345.67 97.40 EX POST FACTO 25000 25 356.73 14.27 ESTIMATED UNDUPLICATED REACH: Unduplicated reach for 3 newspapers in BAY AREA: 67.83 Verified in my presence, HAL the computer Developments in Business Simulation & Experiential Exercises, Volume 12, 1985 53 REFERENCES 1Jack A. Sissors and Jim Surmanek, Advertising Media Planning, 2nd Ed., (Chicago, Ill,: Crain Books, Inc., 19B2), 362. 2Represents, through statistics the probabilities of a percentage of the homes or people with a media vehicle, usually over a four week period. reach % of vehicle A + (plus) reach % of vehicle B (-) minus reach % of vehicle A x (times) reach % vehicle B combined reach of vehicles A and B From Donald W. Jugenheimer and Peter B. Turk, Advertising Media, (Columbus, Ohio: Grid Publishing, Inc., 1980,), 1B4. 3The audience size of a newspaper is commonly measured in terms of the number of copies distributed per issue. This number, which is called circulation, includes all copies delivered to subscribers as well as those bought at newsstands or from other sellers. From Roger D. Wimmer and Joseph R, Dominick, Mass Media Research, An Introduction, (Belmont, CA: Wadsworth Publishing Co., 1983), 305 4Cost per Thousand (CPM) is a device for comparing media and is normally calculated on a weighted basis by media planners. general formula cost x (times) 1,000 CPM = circulation From Anthony F. McGann and J. Thomas Russell, Advertising Media, A Managerial Approach, (Homewood, Ill.: Richard D. Irwin, Inc., 1981), 92. 5The percentage of persons (or homes) covered by a medium. From Jim Surmanek, Media Planning, A Quick and EAsy Guide, (Chicago, Ill.: Cram Books, Inc., 1980), 132. 6From case material developed by Dennis Martin, Brigham Young University. Table of Contents Volume 12, 1985 One Step Beyond Naiveté: Laboratory Simulation of Strategic Management Predicting Performance Over the Course of the Simulation Congruency of Critical Performance Factors in Simulated and Real World Environments: An Exploratory Study Stimulating Learning and Creating Course Involvement Through the Use of Debates A Novel Approach to Writing Texts ABSEL Revisited: In-Class Student Involvement Increases Learning Bus-Sim Micro: An Introductory Business Simulation Demonstration Solutions Diversified: And Experiential Introduction to Management Information Systems Simulating Rigorous Analysis in Stimulation Gaming The Use of Decision Support Systems (DSS) and Operations Research/Management Science (OR/MS) Techniques to Enhance the Learning Experience of Students Participating in Computerized Simulation Problems Associated with the Administrative Use of Student Ratings Enthusiasm Awareness in the Experiential Classroom Participation Expectations of Students in Experiential Settings Using the Computer as a Planning Aid in an Applied Marketing Course Integrating Microcomputers in the Marketing Curriculum Through the Use of Marketing COMPUPROBS Giving Students Experience in Team Report Writing Description and Results of an Experiential Approach in the Teaching of Business Policy Using Real World Experiences as an Experiential Activity: the Page Technique A Guide to Writing Microcomputer Simulations The Development of a Microcomputer Distributed Processing Business Game A Monte-Carlo Approach to Interactive Gaming Single Case Experimental Design as an Alternative to the Conventional Approach Learning Theory and Research Design: How Has ABSEL Fared? Criticisms of the Use of Simulations in Economics: A Rebuttal Using the General Management Game in the Business Policy Course General Management Policy Simulations: Which Games are Popular, and Why do Professors Stop Using Games? Business Policy Content and Teaching Methods: Comparisons of the Hegarty and Summers and Boyd Findings Let's Talk to the Experiential Authors A Computerized Logistics Game for Micros Effects of Contextual Factors on Bargaining Decisions of Experiential Group Representatives The Linking of a Collective Bargaining Simulation and a Business Simulation Game - A Case Study Students are Surrogates in Arbitration Studies AIRWAYS: A Microcomputer Simulation of a Service Industry A Proposed Interactive Inventory Control Simulation Microcomputer Demonstration Exercises for a Course on Creativity and Problem Solving Processing Skills for Teachers, Trainers and Managers Developing the Competencies of Resistance to Stress and Accurate Self-Assessment Raising Elizabeth: Socializing Girls to Aspire to Careers as Managers, Secretaries or Corporate Wives Factors Influencing Perception: Gaining Understanding Through Experience Painless Computer Simulation The Effects of Differential Grade Weights on Business Game Learning levels An Investigation of the Validity of a Recommendation for Experiential Exercise Debriefing Simulation and Experiential Practices of Faculty: A Data-Based Workshop The Live Case Study: Filling the Gap Between the Case Study and the Experiential Exercise A Reactive Microcase Pedagogy Advantages of a Multigame Simulation Course Using the Logistic Function to Score Computer-Supported Games A Simulation Model to Calculate Session Time for Running Simulation Models in a Shared Resource Environment On the Core Size of Small Task Groups and the Cause for the Core Size to Emerge