Radio Terminology: Understanding the Sales Pitch

Negotiating to Win (Part 1)

Negotiating to Win (Part 2)

Negotiating to Win (Part 3)- Tactics

The Power of Television Advertising

The Six Essentials of Radio Planning

Advertising / Media Articles

“Your guide to better marketing and advertising.”


Radio Terminology: Understanding the Sales Pitch
By Lisa Pickles

When examining the advertising mediums available to your business, there are a number of factors to evaluate. In order to effectively weigh the pros and cons of each advertising medium, you must understand that medium’s specific terminology. Today, we will discuss radio.

When working with radio sales representatives, there are specific terms and industry jargon to investigate. You may be pitched a radio campaign that has great reach, high frequency on a station that has big cume and is just coming off a good book. What does that mean?

To start, let’s look at some general radio terminology that radio sales representatives will use to sell their station to your business.

• First, radio is measured by Arbitron surveys. These surveys are published quarterly and measure radio listeners in a given market. The Metropolitan Statistical Area is defined by the U.S. Government’s office of Management and Budget. These are commonly referred to as Metros.

• When reviewing a radio schedule, you will notice that radio is measured by Arbitron and sold in dayparts. Standard radio dayparts consist of AM Drive (6am-10am), Midday (10am-3pm), PM Drive (3pm-7pm) and Evening (7pm-12m).

• Many times if your business is new to advertising on radio, you may be offered a ROS Schedule. This means run of station. Run of station schedules consist of commercials that are scheduled to run across multiple dayparts with no fixed position.

• Always be cautious of run of station orders. The concern is with the spot rotation. If you order 10 spots over the course of a week, you want to make sure that two commercials run a day. In radio, the goal is to have commercials that are distributed equally across dayparts and days of the week.

Next the radio sales team will discuss statistical research describing why their station fits the needs of your business. Below are some key terms to aide in evaluating whether or not the station truly fits your target audience.

• AQH (Average Quarter Hour) Audience – This term refers to the average number of people who listen to a station for at least five minutes within a quarter hour during a specific daypart.
• AQH (Average Quarter Hour) Rating – The rating is the average quarter hour audience expressed as a percentage of the population being measured.
• Cume Audience – The total number of different people in a specific target who listen to a station during a daypart.

When negotiating with a radio station, always ask to see their audience or ratings in terms of your target audience. For example, Women 25-54 have very different listening habits then Men 18-49. In choosing, select those stations that format and audience best enable you to reach your target effectively.

Lisa Pickles is a Senior Media Buyer/Planner at Harmelin Media, the eighth largest independent media buying firm in the United States. Ms. Pickles may be reached at
610-668-7900 ext. 219 or lpickles@harmelin.com

Negotiating to Win (Part 1)
By Dave Yost
Senior Media Buyer/Planner
Harmelin Media - Philadelphia, PA

Whether you are discussing a compensation package for a new job, buying a car, changing your cell phone plan or putting together a media buy it is important to know how to negotiate. Negotiation can lead to elation if you win or anguish if feel you were taken advantage of.

The key to any negotiation is to do your homework.

First you must know your adversary. What is their personality like? What is their negotiation style? Are they the decision maker? Try and anticipate what they will ask for and if they have a hidden agenda. Anticipate your opponent's responses to any tactics you employ.

Second you must support your arguments with facts. Information equals Power. Always try and know more about the issue you are negotiating than your opponent. Information can intimidate.

Third you must clearly define your goals. Decide before you sit down to negotiate what exactly you are trying to achieve. Be as specific as possible. Form arguments that will accomplish these goals.
Fourth you must draw the battle lines. Any negotiation will involve compromise. It is very important to decide in advance what position you will not retreat beyond. Even if a negotiation goes poorly; do not allow yourself to go above or below a certain point.

Fifth you must be prepared to say "NO" and walk away. "NO" is the single most powerful word in any negotiation. DO NOT BE AFRAID TO USE IT. Conversely, do not be afraid of being told "NO". You do not get what you do not ask for. What is the worst that could happen?

Please look for Part 2 in the next issue when I explain the types of negotiation power and specific ways to gain that power in order to get what you want. Until then remember: everything is negotiable and the more you do it the easier it becomes.

Dave Yost is Senior Media Buyer/Planner at Harmelin Media, a Media Buying firm in Philadelphia. www.harmelin.com or 610-668-7900.

Negotiating to Win (Part 2)
By Dave Yost
Senior Media Buyer/Planner
Harmelin Media - Philadelphia, PA

In Negotiating to Win Part 1 we discussed how to prepare for a negotiation by doing your homework. In this section we will discuss the six types of power, what negotiation strength helps you to achieve and how to read and control body language.

The six types of power are outlined below:

1. LEGITIMATE POWER - this type of power is defined by title or position. Typically it is the decision maker or the person with the final say.

2. REWARD POWER - this type of power offers some type of benefit to your opponent for agreeing with your stance. For example, a person possessing this type of power might say: "If you reduce the cost of your widget to a point lower than that of your competitor I will buy more ultimately increasing your profits."

3. PUNISHMENT POWER - this type of power is the exact opposite of Reward Power. It will negatively affect your opponent for disagreeing with your stance. For example, a person possessing this type of power might say: "If you increase the cost of your widget to a point higher than that of your competitor I will not buy any widgets from you which will impact your companies profits."

4. SITUATION POWER - various situations allow power to be gained by one party. For instance, if one side has a time deadline you can gain power by waiting towards the last minute so your opponent is pressured to make a deal.

5. EXPERTISE POWER - If you are the authority on something your opponent cannot challenge your points. An example is challenging a Nobel Prize winner in nuclear physics on atomic energy. They are the authority so they have the credibility.

6. INFORMATIONAL POWER - If you have collected more information than your opponent you become the expert and gain Expertise Power.

Before you begin your negotiation, you will want to determine what types of power both you and your opponents possess. Work on giving yourself an advantage in as many types of power as you possibly can.

You will also want to negotiate from a position of strength verses weakness. One party will typically have the upper hand entering a negotiation. Negotiation Strength is closely related to power. You may posesss power going into a negotiation, but if you do not know it or do not use it than you have no strength. Perception is reality; give the impression of strength even if you do not really have it. Finally try and turn weakness into strength.

Body language can be the most helpful indication of your opponent's strengths and weaknesses in a negotiation. Look for these non-verbal gestures; they can be a sign of nervousness/annoyance, honesty/dishonesty or confidence/lack of confidence. Non-verbal communication is usually more accurate than verbal communication. Be careful because it works both ways. Make sure you watch your own body language.

Part 3 in the Negotiating to Win series will discuss specific negotiation tactics to increase your negotiation power, strength and abilities.

Dave Yost is Senior Media Buyer/Planner at Harmelin Media, a Media Buying firm in Philadelphia. www.harmelin.com or 610-668-7900.

Negotiating to Win (Part 3)- Tactics
By Dave Yost
Senior Media Buyer/Planner
Harmelin Media - Philadelphia, PA

In Negotiating to Win Part 2 we discussed the six types of negotiating power, the differences between negotiation strength and negation power and body language. In this section we will discuss specific negotiation tactics to increase your negotiation power, strength and improve your abilities.

It is important to be familiar with the key negotiation tactics are outlined below:

1. LYING - Do not lie, instead... "stretch the truth," "exaggerate," "withhold information" or "play dumb." Be prepared to suffer the consequences for your actions and statements. One lie often begets another.

2. FIRST OFFERS - NEVER ACCEPT ONE! Initial offers are intentionally inflated to leave room to negotiate. Make sure you always go one extra round in any negotiation even if you think the other party will not move.

3. PROMISES - Never make offers or promises you cannot live up to. Your long-term credibility will be destroyed. Over deliver on your promises whenever possible; it can increase your power the next time you negotiate with the same party.

4. SMALL STEPS - It is very difficult to find a common ground, win-win compromise in one step. Take several small steps in a negotiation, always keeping in mind your ultimate goal. Break down the situation into smaller components and work on each one.

5. THE BIG PICTURE - Negotiations often hinge on one major item and a lot of smaller, less important items. Attack the smaller issues first in order to get both sides saying "yes." Once both sides are agreeing, it will be easier to deal with the larger issue at hand.

6. HIGHER AUTHORITY - Have someone in the background (not part of the negotiation) who must give final approval of any deal you make. Use this higher authority to stall if you are stuck or to gain more concessions at a later date.

7. GOOD COP / BAD COP - Have one person "out for blood" and the other friendly to the cause of the opponent. This allows someone on your team (the good cop) to play peacemaker and try to bring the sides together.

8. PLAY DUMB - disarm your opponent by appearing not to know what they are talking about. This can often soften a hostile opponent or catch them off guard. Additionally it can cause your opponent to take you lightly, leaving them open for attack.

9. STRIKE QUICKLY - The values of a concession you make diminish soon after it is made. Always ask for something in return for your concession IMMEDIATELY. If you wait, your initial concession will not seem as important to your opponent.

10. TIME PRESSURE - Use time to your advantage. Shorten the timetable to force a decision by your opponent. Extend the timetable to gain power; if your time line is longer than your opponents for reaching an agreement, you have the advantage.

11. FLINCHING - Visibly react to any proposal placed in front of you. This action conveys dissatisfaction to your opponent.

12. WITHDRAW AN OFFER - If your opponent tries to squeeze you for a little too much, withdraw something that has already been agreed upon. Usually this will cause them to back off immediately.

13. RELUCTANT BUYER - Show disinterest in what your opponent is offering, even if it is the greatest thing you have ever seen.

14. KEEP PUSHING - Always go an extra round. Statements like "This is not acceptable" and "You will have to do better than that" go a long way. Always be prepared with a counter-offer on the spot.

15. "NO" - Be prepared to walk away from a negotiation. Never enter a negotiation feeling you must come to an agreement; this makes you powerless.

In conclusion, it is important never to lose sight of your ultimate goals, especially when caught up in a heated negotiation. Practice often, always go an extra step and learn to enjoy per swaying and influencing people.

Dave Yost is Senior Media Buyer/Planner at Harmelin Media, a Media Buying firm in Philadelphia. www.harmelin.com or 610-668-7900.

The Power of Television Advertising
By David Yost

True or False?
1. Television reaches more people than any other medium (i.e. Radio, Newspaper, Internet, Magazines)
2. Adults spend more time with Television each day than any other medium.
3. Television advertising has the best perception among adults.
4. More adults learn about products from Television than any other medium.

All the above statements are TRUE.

In advertising, it is important to reach as many people in your target as possible. The more people who see or hear your message, the greater the chance you have of creating a lasting brand or selling a product or service. Television reaches 93% of adults in the United States. All other mediums reach significantly less. On a daily basis, Radio reaches 76%, Newspaper reaches 63%, Magazines reach 42% and the Internet only reaches 35% of adults. Television also reaches a more desirable adult market, one with higher incomes and more education.

On average, adults spend an astounding 253 minutes watching Television each day. That is almost double the next closest medium, Radio, with 128 minutes. Adults spend 45 minutes a day on the Internet, 30 minutes reading the Newspaper and 19 minutes reading Magazines.

Television advertising is also perceived by adults as the best and most prestigious form of advertising. 78% feel it is the most influential medium, 74% believe it is the most exciting, 66% feel it is the most persuasive and 49% believe it is the most authoritative. Depending on the product or service, Television can add a sense of legitimacy that cannot be as easily achieved by other mediums.

Finally, Television is extremely informative due to its ability to simultaneously transmit both visual and audio messages. 52% of adults learn about products and services primarily from Television. Much fewer adults are informed by other forms of media: Magazines 17%, Newspapers 15%, Internet 10% and Radio 6%.

A company that would benefit most from the use of TV would be one whose advertising goal is to reach people with higher incomes or decision makers while building a brand or driving traffic to a retail location. It is also important the company can sell to, or service, the entire market. Law Firms, Retail Store chains, Utilities and Transportation companies, among many others, typically benefit from the broad reach and prestige of TV advertising.
As powerful as Television can be, it is not the right choice to achieve every company's advertising objectives. While it is great at reaching decision makers of companies, creating an image for a company and delivering information quickly, it can be cost prohibitive. Additionally, Television covers an entire market. A small retailer with a trading area of a mile or two will experience a lot of waste using Television.

As with any advertising, it is critical to first clearly detail your objectives and then decide the best way to achieve them. Television can be a powerful tool and very important part of any advertising campaign if used effectively.

David Yost is Account Executive for Viacom Station Sales (CBS, UPN). He can be reached at P:215-574-5769, e-mail: djyost@cbs.com

The Six Essentials of Radio Planning
By Dave Yost

When planning a radio buy, it is very important to identify the exact consumer you want your message to reach. Answer the following questions before starting the buying process:

1. What are you advertising? Know your product. A new company or new product needs to run much more TRPs (Targeted Rating Points-The sum of all rating points achieved in a market for a particular spot schedule) than an average campaign. An average number of TRPs per week should be in the 125 to 175 range. For a new product the TRP range should be between 200 and 250 in order to break through the clutter.
2. Who do you want to reach? A target audience for your commercial spot is not just based on age and gender demographics. Information such as income level, ethnic composition, spending habits as well as many other characteristics are just as important. For instance, a dipper manufacturer may look to target Women age 18 to 34 who have a young child in the home and are the primary shopper.
3. What Reach and Frequency levels do you want to achieve? Reach is the percentage of a certain target market that will hear your radio spot. Frequency is the number of times that segment will hear it. Radio, in general is a frequency medium so you must decide if the schedule will be running in conjunction with other forms of media (i.e. TV, Cable, Print, Out of Home, etc.) and at what TRP levels. A good weekly reach should be between 50% and 65% while the weekly frequency should be a minimum of three.
4. What should your budget level be? In order to decide if your allotted budget will achieve campaign objectives you must rely on historic market Cost Per Points (CPPs-the cost to achieve one rating point in a specific market at a specific time) and media buyers who know market trends. Current market conditions play an important role in CPP estimation. For example, if you want to buy a four week campaign at 150 TRPs per week you will be buying a total of 600 TRPs. When you multiply the number of TRPs against the CPP of the market you will get your budget. If the market CPP of Philadelphia radio is $250 for the 1st Quarter of 2001, (1Q01), then your budget would be $150,000 for the four week campaign. 150 TRPs x $250 x 4 weeks = $150,000.
5. What is the timing of the buy? Decide what the length of the campaign will be, when it should start and if hiatus weeks are necessary to most effectively meet the goals of the buy. Adjusting these elements may allow you to extend the length of a campaign without spending additional money.
6. What is the geographic market or markets? Do you need the entire market to be covered for your campaign or is a specific region or county most important? Will you be paying to cover portions of the market you do not need thus creating waste? County radio station rankers become important in station selection when less than the entire market is needed. By selecting stations that do well in a particular county you are trying to isolate, you are utilizing the best stations for your buy.

While many other factors need to be considered, these questions are essential to putting together a comprehensive radio plan. The most important factor is knowing the market because trends change much quicker than research alone can identify.

Dave Yost is Senior Media Buyer/Planner at Harmelin Media, a media buying firm in Bala Cynwyd, PA