Glossary

Average Frequency
This is the average number of exposures to your advertising message by your target audience. You can arrive at your Average Frequency by dividing your total Gross Rating Points by your Total Reach.

Cost Per Thousand
This is a standard measurement used for determining the cost effectiveness for a specific medium. It compares the cost of the advertisement to the number of impressions to your target audience. You can arrive at your CPM by dividing the media cost by the target impressions (in thousands).

Discretionary Income
This is money left over from disposable income once necessities are paid for. This income is often used for "luxuries" such as electronic gadgets, recreational activities, vacations, luxury cars, etc.

Disposable Income
This is income available after taxes have been paid. This money is used to pay for necessities such as food, utilities, clothing, housing, and transportation.

Effective Frequency
This is the number of advertising exposures deemed necessary in your marketing plan objectives to generate the required response from your target market.

Effective Reach
This is the reach deemed necessary in your marketing plan objectives to generate the required response from your target market.

Frequency
This is the number of exposures your target market has to your marketing message.

Gross Margin

  • Gross sales - Cost of goods sold = Net sales
  • Net sales / Gross sales = Gross Margin
The Gross Margin can usually be found in industry data.

Gross Rating Points
Gross Rating Points (GRP) measure the total volume of delivery of your message to your target audience. It is equal to the percent Reach to your target audience times the Frequency of exposure. To arrive at your total Gross Rating Points, add the individual ratings for each media vehicle you are using. You may also get GRP by dividing your gross Impressions by the population base and multiplying the answer by 100.

Impressions
Every exposure to your advertising message is an "impression." Gross Impressions (similar to GRP) account for each exposure an individual target prospect has to your message. Net Impressions (similar to Reach) count only the first impression to your message.

Integrated Marketing Communications
This is a concept of marketing communications that recognizes the added value of assuring that all communication vehicles (including sales force, customer services, and any other employees who have customer contact) portray a clear and consistent message about the company, business, or product that follows and illustrates the company's vision and mission.

Product Life Cycle
The five stages of a product's life include:

  1. Introduction, during which costs typically exceed revenue
  2. Growth, during which sales rapidly increase
  3. Maturity, during which there is more competition, pricing tends to decline, and product loyalty is emphasized in advertising
  4. Saturation, during which sales slow and advertising strategy shifts to reinforcement
  5. Decline, at which point the market has shrunk and advertising and distribution costs are cut drastically to reduce losses

Rating Points
This is the audience size of the medium expressed as a percentage of the universe (the "universe" is the single market or geographic region you are targeting), also referred to as percent coverage. If you use a medium once, then the Rating is the same as its Reach.

Reach
This is the total number of individual prospects exposed to your message. It is usually stated as a percentage of the target market. It is also referred to as net, cume, or cumulative.

Seasonality
This is a product's predisposed seasonal fluctuations, such as the need for cold medicines in winter, roses on Valentine's Day, sunscreen and swimsuits in summer.

Total Reach
This is the number of individual prospects exposed to at least one of your advertising messages. You can arrive at your Total Reach by dividing your Gross Rating Points by your Average Frequency.


Tools
These forms are in Microsoft Excel, Word, and Adobe Acrobat formats and can be used and/or edited freely. Some of the Word worksheets are protected as "forms," but with no password. Simply select "Unprotect Form" from the "Tools" menu in Word to edit the text and layout of the document.

Planning Forms

Trade Show Planning Checklists
Web Site Promotion
Scheduling and Budget Forms