in
this issue
PPI
(Purchase Potential Index) OR the truth about the media habits
of your customers
Please click the link BELOW to get a look at your crystal ball
(Purchase Potential Index)! The PPI is a boring name for a very
exciting and comprehensive report about each and every one of
your customer groups. The Index measures the likelihood of your
particular customer group or neighborhood type to use a
particular media. The number that is used as the baseline is
100, so if your customer measures 121 that means they have a 21%
greater likelihood to use a particular media than the average US
citizen.
Okay, that is boring, but when we can look at array of
factors like: viewed basic cable last week, viewed CNN, viewed
The Movie Channel, read Cooking Light, read Field and Stream,
read TV Guide, reads the Sunday Newspaper, listens to radio from
7p-12am on the weekdays, listens to all news channel on radio,
watches Fraiser, watches Mad About You, watched X- Files last
week, watched TV 4pm-430pm on weekdays, watches TV Sunday
7pm-11pm, views Primetime on ABC, views ESPN NFL Preseason, and
on and on it goes.
The reports that I have included in the link amount over 345
media behaviors (researched factors), and how those factors
relate to our neighborhood type 1E or the PROSPEROUS BABY
BOOMERS. We can apply this report to any of the top five Acorn
groups, and what emerges is an incredibly comprehensive media
pattern which provides us with every angle and view we could
ever need to determine how to target these customers on
television, radio, and print.
See
An Example of The Index And Its Predictive Power
Quick
Links...
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Dear Reader,
Our past clients' have spent hundreds of thousands of
dollars (beginning stage of media roll-out) just
learning which television markets are the best
performing areas for sales. Remember-HUNDREDS OF
THOUSANDS OF DOLLARS just to reach this level or phase
of knowledge. If these clients had utilized this
research (Customer Profiling), they would not have
wasted 35% of their media dollars on non- performing
useless media buys (media buyers would not advertise
this fact to you). That figure or percentage could
probably rise as high as 50% of all the media money they
spent, assuming the other 50% spent yielded high
profitable results so they didn't go broke!
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Luck
is Not Collateral
This is really treacherous and dangerous territory, and
can put your entire initial marketing/sales venture at
extreme risk. Why? Because the cost of learning where
your best customers are is extremely high. So high, as a
matter of fact, it could undermine you ever reaching
this phase of development.
Instead of risking 35% to 50% of your precious media
dollars and wasting away on useless media buys, why not
test through low-cost media (print, radio, direct mail.
etc.) FIRST, and create a customer list of 2500- 5000
customer records? THEN-research who your customers are,
where they are, how they behave, and GO STRAIGHT to
where they are located?
Last
Week's Newsletter-Issue 29: Why Guess And Throw Your
Money Away? Predict The Markets That Have The Greatest
Number of Your Potential Customers »
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The Match Game is a Powerful Ally-Use It!
You can rely on the expert advice of your media buyer to
take the demographic, psychographic, and marketing
information that you now have at hand (this has cost you
a fraction of the money most clients spend to gain the
same information), and create a media plan for the best
placement of your commercial in particular markets,
and/or on national cable. That's one level of expertise
that will pay in dividends.
Another level of development to pick the best media-
have your media buyer take the customer profiles, and
give it to the local/national sales/research departments
of the various television stations. You want to see how
good a match there is between your customer profiles
with the station's viewer profiles.
A third level of development can be obtained through
a study called Purchase Potential Indexes or PPI. The
PPI index measures the likelihood of any of your
customers/neighborhood groups to involve themselves in a
variety of media. To put it in plain language how likely
are your customers going to watch certain kinds of media
(Please review the featured article on the left column
of this newsletter). You can uncover the most valuable
media properties where you would show your TV
commercials, print your ads, or broadcast your radio
spots.
See
An Example of The Index And Its Predictive Power »
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Bingo is the Magic Word and The Holy Trinity
If you have the expert opinion of your media buyer, a
match between the station's viewership and your customer
profiles, and an index which shows the likelihood is
high your customers watch that particular station you
have a-BINGO!
This is not subjective information. This is as
scientific as you can get in the Art and Science of
Media Placement. When you find all THREE of these
measurements (Holy Trinity of Media Buying) coming up
with the same match, and some will be contradictory by
the way, you are as close as you can get in predicting
an outcome. All of this before you actually buy the
media and get results.
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Media Costs are Your Greatest Expense-Strip off
Your Blinders
This process will save you thousands of media dollars,
and in the lifetime of a marketing venture hundreds of
thousands in wasted media purchasing. Additionally, it
will lead you to utilize the right media, in the right
place, and in the right time. For instance Juneau, AK.
in our study shows a 75% odds that our advertising will
be successful. However the cost of electronic media in
Juneau is prohibitive-given any type of odds. So direct
mail, print, local newspaper and magazines make sense in
this situation, and opens up a tremendous opportunity
that would have been ignored had we relied ONLY on
electronic media to evaluate a market's worthiness to
reach our customers.
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