1. 8 Measuring the Effectiveness of the Promotional Program

2. © 2005 McGraw-Hill Ryerson Limited Chapter Objectives To understand reasons for measuring promotional program effectiveness. To know the various measures used in assessing promotional program effectiveness. To evaluate alternative methods for measuring promotional program effectiveness. To understand the requirements of proper effectiveness research.

3. © 2005 McGraw-Hill Ryerson Limited Measuring Advertising Effects Product Quality Promotion Distribution Competition The Economy Price Policy SALES SALES?

4. © 2005 McGraw-Hill Ryerson Limited For and Against Measuring Effectiveness Reasons to Measure Reasons Not to Measure Problems With Research Creative Objections Cost of Measurement Disagreement About What to Test Avoid Costly Mistakes Evaluate Strategies Increase Efficiency of Advertising in General Determine If Objectives Are Achieved Problems With Research Cost of Measurement Disagreement About What to Test Avoid Costly Mistakes Evaluate Strategies Increase Efficiency of Advertising in General Determine If Objectives Are Achieved

5. © 2005 McGraw-Hill Ryerson Limited Measuring Advertising Effects PRETESTING –Concept tests –Rough testing COMMERCIAL TESTING –Consumer juries –Physiological measures –Theatre tests MARKET TESTING –on-air (split run cable) tests –Recall and Recognition tests (day after)

6. © 2005 McGraw-Hill Ryerson Limited The Testing Process 3.Finished Art or Commercial Testing 1.Concept Testing 2.Rough Testing 4.Market Testing (Post- testing) 2.Rough Testing 1.Concept Testing Occurs at Various Stages

7. 8 Concept Testing

8. © 2005 McGraw-Hill Ryerson Limited Concept Generation and Testing Qualitative And/or Quantitative Data Evaluating and Comparing Alternative Concepts Explores Consumers’ Responses to Ad Concepts Expressed in Words, Pictures, or Symbols Alternatives Are Exposed to Consumers Who Match the the Target Audience Reactions and Evaluations Are Sought Through Focus Groups, Direct Questioning, Surveys, Etc. Sample Sizes Depend on the Number of Concepts and the Consensus of Responses Explores Consumers’ Responses to Ad Concepts Expressed in Words, Pictures, or Symbols Alternatives Are Exposed to Consumers Who Match the the Target Audience Reactions and Evaluations Are Sought Through Focus Groups, Direct Questioning, Surveys, Etc. Sample Sizes Depend on the Number of Concepts and the Consensus of Responses Objective Method Output

9. © 2005 McGraw-Hill Ryerson Limited Research House (Canada)

10. © 2005 McGraw-Hill Ryerson Limited Concept Testing Limitations: –Sample sizes are small (not quantifiable) –Consumers become instant “experts” –Members may not represent the target market –Results may seem definitive than they are Company example

11. 8 Commercial Testing

12. © 2005 McGraw-Hill Ryerson Limited Rough Art, Copy, and Commercial Testing Number of Ads That Can Be Evaluated Is Limited Preference for Ads 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 AdvantagesDisadvantages Number of Ads That Can Be Evaluated Is Limited Consumer May Become a Self-appointed Expert A Halo Effect Is Possible Control Cost Effectiveness Endorsements by Independent Third Parties Achievement of Credibility Comprehension and Reaction Tests

13. © 2005 McGraw-Hill Ryerson Limited Consumer Juries Potential viewers evaluate ads 50 to 100 participants Overall reaction to each ad And rank ordering of ads Examples of questions: 1. Which ads would you most likely read? 2. Which headlines interests you the most? 3. Which ad convinces you of the product’s quality? 4. Which ad did you like best? 5. Which ad did you find most interesting? Company example

14. © 2005 McGraw-Hill Ryerson Limited

15. Starch Test Used for print Ads Asses what people saw Measures what they remember Used to compare ads

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17. Physiological Tests of Finished Ads 1.Pupil dilation 2.Galvanic skin response 3.Eye tracking 4.Brain waves

18. © 2005 McGraw-Hill Ryerson Limited Pupil Dilation Size of Subjects pupils are measured –Action  Dilation –Disinterest  Constriction Male Female Nude Female Nude Male Nude Infant

19. © 2005 McGraw-Hill Ryerson Limited Pupil Dilation - Camera

20. © 2005 McGraw-Hill Ryerson Limited Galvanic Skin Response Measures sweating GSR responds to: feelings attention may indicate: long-term recall effectiveness

21. © 2005 McGraw-Hill Ryerson Limited GSR Devices

22. © 2005 McGraw-Hill Ryerson Limited Brain wave activity (EEG) Measures brain wave activity 1. Alpha activity is bad Associated with Inactivity, resting & sleeping So: avoid ads with high alpha 2. Hemispheric lateralization Distinguishes between activity in the different hemispheres of the brain Tells you what people are attending to

23. © 2005 McGraw-Hill Ryerson Limited Cap

24. © 2005 McGraw-Hill Ryerson Limited

28. Eye Movements Measures what is looked at Method Eye camera and advanced electronics Output: –Eye movements tell what is seen –And what will be… comprehended recalled

29. © 2005 McGraw-Hill Ryerson Limited Device

30. © 2005 McGraw-Hill Ryerson Limited

32. Theater tests –Product preferences –Interest in the commercial –Reactions (an adjective checklist) –Recall of particular aspects –Interest in the brand –Continuous (frame-by-frame) reactions

33. © 2005 McGraw-Hill Ryerson Limited Theater Test

34. © 2005 McGraw-Hill Ryerson Limited Theater Test – Continuous Reaction Measures

35. © 2005 McGraw-Hill Ryerson Limited Theater Test – Recall Measures

36. 8 Market (Post) Tests

37. © 2005 McGraw-Hill Ryerson Limited Broadcast Tests On-air tests –TV programs in specific markets –Day-after recall Split Cable studies –Ad run in one area, but not another –One ad in one area, different ad in the other –Day after recall –SALES

38. © 2005 McGraw-Hill Ryerson Limited 1. Please look over these pictures and words from a TV commercial. (Announcer) Remember Jared from Name? Turns out he has inspired a lot of people. (Singer) …You’re still looking good. He’ll show you the way. His name is Jared, and he’ll lead you to Name. 2. Do you remember seeing that commercial on TV? Yes No Not sure 3. How interested are you in what that TV commercial is trying to tell you or show you about what's being advertised? Very interested Somewhat interested Not interested 4. How does it make you feel about what's being advertised? Good OK Bad Not sure 5. Please check any of the following if you feel they describe that commercial. Amusing Appealing Familiar Fast moving Pointless Seen a lot

39. © 2005 McGraw-Hill Ryerson Limited Summary 4 Basic Types of Ad Research: –Concept tests –Pilot tests –Post tests Each has it’s own use –Use the one appropriate for what you want to know

40. © 2005 McGraw-Hill Ryerson Limited Quote of the day Advertising people who ignore research are as dangerous as generals who ignore decodes of enemy signals. David Ogilvy (Ogilvy & Mather)