Measuring the Effectiveness of the

Promotional Program

Measuring the Effectiveness of the

Promotional Program

McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.

Chapter 19Advertising And Promotion, 6/E

- Belch

Group 8Integrated Marketing Communications

Aditya GSN Indrajit Bage N Krishna Chaitanya Neeraj Panghal Prateek Jaiswal Silpa Kamath

Chapter Objectives

1.To understand reasons for measuring promotional program effectiveness.

2. To know the various measures used in assessing promotional program effectiveness.

3. To evaluate alternative methods for measuring promotional program effectiveness.

4. To understand the requirements of proper effectiveness research

Pros and Cons of Measuring Effectiveness

Objections of creativesObjections of creatives

Evaluate alternative strategies

Evaluate alternative strategies

Avoid costly mistakesAvoid costly mistakes

Increase efficiency in general

Increase efficiency in general

Disagreement on what to test

Disagreement on what to test

Research problemsResearch problems

Cost of measurementCost of measurement

Determine if objectives are achieved

Determine if objectives are achieved

TimeTime

Advantages Disadvantages

How to test• Testing guidelines• Appropriate tests

How to test• Testing guidelines• Appropriate tests

Measuring Advertising Effectiveness

When to test• Pretesting• Posttesting

When to test• Pretesting• Posttesting

Where to test• Laboratory tests• Field tests

Where to test• Laboratory tests• Field tests

What to test• Source factors• Message variables • Media strategies• Budget decisions

What to test• Source factors• Message variables • Media strategies• Budget decisions

Pretesting Methods

On-air Tests

Dummy Ad VehiclesConsumer Juries

Portfolio Tests

Physiological Measures

Theater Tests

Rough Tests

Concept Tests

Readability Tests

Comprehension and Reaction Tests

Laboratory Field

Posttesting Methods

Recall TestsRecall Tests

Inquiry TestsInquiry Tests

Association Measures

Association Measures

Single-Source Systems

Single-Source Systems

Tracking Studies

Tracking Studies

Recognition Tests

Recognition Tests

MethodsMethods

Where to Test

In the Field

In the Lab

Positioning Advertising Copy Test (PACT)

1. Provide measurements relevant to objectives of advertising

2. Require agreement on how results will be used

3. Provide multiple measures

4. Be based on a model of human response to communications

5. Consider multiple versus single exposure to the stimulus

6. Require alternative executions to have same degree of finish

7. Provide controls to avoid biasing effects of exposure context

8. Take into account basic considerations of sample definition

9. Demonstrate reliability and validity

Test Points

3.Finished art or commercial pretesting

3.Finished art or commercial pretesting

1.Concept Testing1.Concept Testing

2.Rough Testing2.Rough Testing

4.Market testing (posttesting)

4.Market testing (posttesting)

Occurs at Various Stages

Occurs at Various Stages

Concept Testing

Explores consumers’ responses to ad concepts expressed in words, pictures, or symbols

ObjectiveObjective

Alternatives are exposed to consumers who match the target audience

Reactions & evaluations sought through focus groups, direct questioning, surveys, etc.

Sample sizes depend on the number of concepts and the consensus of responses

MethodMethod

Qualitative and/or quantitative data evaluating and comparing alternative concepts

OutputOutput

Rough Art, Copy, and Commercial Testing

Number of ads that can be evaluated is limited

Preference for ad types may overshadow objectivity

Consumer may become a self-appointed expert

A halo effect is possible

Cost effectiveness

Endorsements by independent third parties

Achievement of credibility

Comprehension and Reaction Tests

Consumer Juries

Control

Advantages Disadvantages

Rough Testing Terms

Photomatic RoughPhotomatic Rough

Animatic RoughAnimatic Rough

Live-action RoughLive-action Rough

TermsTerms

Pretesting Finished Print Ads

Based on syllables per 100 words

Other factors also considered

Readability Tests

Readability Tests

A laboratory method

Includes test and control ads

Portfolio test have problems

Portfolio Tests

Portfolio Tests

Distributed to random sample homes

Product interest may still bias results

Dummy Advertising

Vehicles

Dummy Advertising

Vehicles

Pretesting Finished Broadcast Ads

Theater Tests

• Measures changes in product preferences

• May also measure . . .• Interest in and reaction

to the commercial• Reaction from an

adjective checklist• Recall of various

aspects included• Interest in the brand

presented• Continuous reactions

On-Air Tests

• Insertion in TV programs in specific markets

• Limitations are imposed by “day-after recall”

• Physiological Measures

Physiological Measures

Eye trackingEye tracking

Pupil dilationPupil dilation Galvanic skin response

Galvanic skin response

Brain wavesBrain waves

TestingTesting

Market Testing Print Ads

Recall TestsRecall Tests

Inquiry TestsInquiry Tests Recognition TestsRecognition Tests

Tracking StudiesTracking Studies

TestingTesting

Posttests of Broadcast Commercials

Test marketing

Day after recall tests

Persuasive measures

Diagnostics

Comprehensive measures

Single-source tracking

Tracking studies

Testing

Problems With Current Research Methods

Essentials of Effective Testing

Use a consumer response modelUse a consumer response model

Use pretests and posttests

Use pretests and posttests

Use multiple measures

Use multiple measures

Understand and implement

proper research

Understand and implement

proper research

Establish communications

objectives

Establish communications

objectives TestingTesting

Measuring Effectiveness of Other Programs

Shopping cart signageShopping cart signage

Ski resort-based mediaSki resort-based media

In-store radio and televisionIn-store radio and television

Other mediaOther media

Non-traditional

media

Non-traditional

media

Sales promotions

Sales promotions

Sponsor-ships

Sponsor-ships

Exposure methodsExposure methods

Tracking measuresTracking measures

Measuring Effectiveness + Efficiency

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