Measuring the Effects of a Campaign MKT 846 Professor West

Agenda Measuring the Impact of IMC PACT Principles Testing Methods IMC Audit

General Thoughts Accountability is a must in today’s business environment! Be prepared to demonstrate your worth Gap analysis Is there a difference between what customers expect from a brand (based on brand messages) and what they actually experience? Is your marketing communications sending the right message?

General Thoughts If you’ve done your homework then measuring effectiveness is easy Begins with objective setting Evaluation ultimately entails testing whether specified objectives have been met Concept testing and concurrent testing allow you make adjustments along the way and minimize the risk Predicting what communications efforts will succeed or fail is a lot like picking stocks.

General Thoughts Why do you evaluate a campaign? To determine if the strategy worked. If it didn’t, what went wrong? To quantify and justify the return on investment. To make changes in the future. When is it done? Risk & Reward

Measuring the Impact of IMC What do we know about the effectiveness of IMP programs relative to the effectiveness of program elements? Recent studies have begun to shed light on the interactive effect of communications methods.

Measuring the Impact of IMC Tests of recall and memory of online and television advertising alone or in combination Design: 4 groups, Ad exposure while visiting a web page on ESPN.com, Ad exposure during an episode of Who Wants to Be a Millionaire, Ad exposure while watching TV and visiting the web page, No exposure to the ad (control group) Results: There was a synergistic effect when TV and online were used in combination leading to a 9 percent gain in recall, a 48 percent increase in recognition of the online ads. Conclusion: Online supports TV commercials and vice versa (Online Publishers Association & IntelliQuest)

Measuring the Impact of IMC Tests of recall and memory of online and television advertising alone or in combination Design: Online exposure, TV exposure, Print exposure, a combination of exposures Conclusion: Online supports TV and print ads (Consortium: Microsoft, Marketing Evolution, ARF, and Unilever)

Measuring the Impact of IMC Nextel When sales began to slide it sought to identify which MC functions were producing the best returns Analysis revealed that web advertising had been the most cost-effective in producing sales leads Budget allocation was revised and 100 percent of the budget was allocated online (full-screen pop-ups, special offers…) Increased the number of calling plans sold while reducing the cost per sales lead from $35 to $11

PACT Principles: Provide measurements are relevant to the objectives of the advertising. Require agreement about how the results will be used in advance of each specific test Provide multiple measurements and look for convergence Consider how people respond to communication

Marketing Communication Model Sender Feed bac k Sender Noise Filter M AEAE Medium/Channel

Basic Communication Model Six key elements: Sender – the source of the message Message – the information being communicated either verbally or nonverbally Receiver – the recipient of the message Common experiences (represented by the overlapping fields of experience) – allows communication to occur. Feedback loop – the recipient’s response to the message Noise – anything preventing the sender from getting the message to the receiver or vice versa

Information Processing McGuire Model Testing Ad Effectiveness Exposu re Attentio n Comprehe nsion Accepta nce/ Yielding Purcha se Retenti on Circulat ion, Reach Listener Recogni tion Recall, Checkli sts Attitude, Purchase Intent Delayed Recall Scanne r Data

Hierarchy of Effects Models Models: Stages:AIDADAGMAR Innovation/ Adoption Information Processing Think (Cognitive) AttentionAwareness Knowledge AwarenessExposure Attention Comprehensi on Feel (Affective) Interest Desire Liking Preference Conviction Interest Evaluation Yielding Retention Do (Behavioral) ActionPurchase Trial AdoptionBehavior

Persuasive Communication Motivated to Process? Involvement Relevance, etc. Motivated to Process? Involvement Relevance, etc. Ability to Process? Issue familiarity Arousal, etc. Ability to Process? Issue familiarity Arousal, etc. Nature of Cognitive Processing Mostly Mostly Mostly FavorableUnfavorable Neutral Thoughts Thoughts Thoughts Nature of Cognitive Processing Mostly Mostly Mostly FavorableUnfavorable Neutral Thoughts Thoughts Thoughts Cognitive Structure Change New cognitions adopted Different responses Cognitive Structure Change New cognitions adopted Different responses Persuasion: enduring positive attitude change Persuasion: enduring positive attitude change Boomerang: enduring negative attitude change Boomerang: enduring negative attitude change Temporary attitude shift Temporary attitude shift Peripheral cue present? Source characteristics Visual imagery Executional elements Peripheral cue present? Source characteristics Visual imagery Executional elements Retain Initial attitude Retain Initial attitude Yes No Elaboration Likelihood Model

The FCB Planning Grid ThinkingFeeling High Involvement 1. Informative (thinker) Investments, House, Appliances Think – Feel - Do Implications Test: Recall, Diagnostics Media: Long copy, reflective vehicles Execution: Information, Demonstration 2. Affective (feeling) Jewelry, Cosmetics, Apparel, Sports Car Feel– Do – Think Implications Test: Attitude Change, Arousal Media: Large space, Image specials Execution: Impact Low Involvement 3. Habit Formation (doer) Food, Household Items, Cleaners Do – Think – Feel Implications Test: Sales Media: Small spaces, 10 sec radio, POS Execution: Reminder 4. Self-Satisfaction (impulse) Cigarettes, Liquor, Candy, Magazines Do – Feel – Think Implications Test: Sales Media: Billboards, Newspaper, POS Execution: Attention getting

PACT Principles: Consider whether the advertising stimulus should be exposed more than once Do you remember how many exposures it takes to have an impact? Consider the fact that finished copy can be more soundly evaluated than rough copy, and require that alternative executions be tested in the same degree of finish Apples versus oranges problem

PACT Principles: Provide controls to avoid biasing effects of exposure context Primacy and recency effects Take into account basic considerations of sample definition Target audience, Geographic representation, Random sampling, Demonstrate reliability and validity Use experimental procedures

The Value of Pretesting (Concept testing) McCollum Speilman Worldwide studied 4,637 on-air commercials used to build normative measures. Percentage

Market Testing of Ads (Concurrent Testing) Inquiry tests Measure ad effectiveness based on the number of inquiries generated – web visits, coupons returned, phone calls, etc… Split-run tests are used to compare different version of the ad or running the same ad in different media.

Market Testing of Ads (Concurrent Testing) Recognition Tests Starch Ad Readership Report lets advertisers assess the impact of an ad in a single issue of a magazine over time, or across different issues. Measures 25,000 ads in more than 400 issues across more than 100 magazines and newspapers per year. The value of norms and measures of reliability make this a widely used means of testing.

Market Testing of Ads (Concurrent Testing) Recall tests Gallup & Robinson MIRS (Magazine Impact Research Service) and Burke Day-After-Recall Can be used to assess an ad’s impact on memory Once again, the normative value is very important Suggestive brand names (Keller, Heckler, and Houston) Tend to facilitate recall of the brand benefits (initial brand positioning) However, they inhibit recall of subsequent claims (more difficult to introduce a new attribute at a later time). Jack-in-the-Box, Old Spice, Kentucky Fried Chicken, Oldsmobile

How are recognition and recall related? NIPO Study (Netherland’s Institute of Public Opinion) The average correlation between recognition and recall of print ads is very high (r =.95) Recall stems from recognition Likeable and interesting ads doubled recall scores Creative ads were more effective at enhancing preference and recall than larger ads

Market Testing of Ads (Concurrent Testing) Tracking Studies One of the most useful and adaptable forms of posttesting Involves taking measurements at regular intervals A standard set of questions is used Brand Metrics: awareness, recognition, recall, brand perceptions, attitudes toward the ad and/or brand, purchase intention Relationship Metrics: lifetime customer value, recency of purchase, frequency of purchase, monetary value, referral index, share of wallet Sample sizes range from 250 – 500 cases per period Can be used to measure the differential impact of budget size and scheduling as well as copy execution and media selection

Performance Measures (Evaluative Testing) An effective campaign is one that meets or exceeds its objectives. The more closely the objectives are aliened with sales and profit the better they are. Remember, MC is only one of many elements of the mix that can impact sales. Others include: Product performance Pricing Distribution Competition

Performance Measures (Evaluative Testing) Measuring performance requires baseline measures Tracking studies are very useful in establishing baseline and performance measures

IMC Audit Organization Infrastructure Is managing brand reputation and stakeholder relationships a cross-functional responsibility? Are the strengths and weaknesses of all MC tools considered? Is internal marketing utilized consistently and effectively? Do our agencies communicate with one another?

IMC Audit Interactivity Does our media plan have a balance between mass and interactive media? Is there facilitation of customer inquiries and complaints? Are customer databases being used to capture information to facilitate relationship building? Are customer databases easily accessible and user- friendly?

IMC Audit Mission Marketing Is the organization’s mission evident in its MC plans? Does our mission provide a reason for customers to believe our message and support the company? Are philanthropic efforts concentrated in one specific area?

IMC Audit Strategic Consistency Are company-created brand messages strategically consistent? Do we periodically review all brand messages for consistency? Do we consider what brand message is being sent by our pricing, distribution, product performance, and customer- service

IMC Audit Planning and Evaluating Do we use SWOT analysis in MC planning? Are we using a zero-based approach? Are we fully leveraging intrinsic brand-contacts before investing in new brand-contact points? Do we have a tracking study to monitor relationships with customers and other stakeholders? Are we maximizing the unique strengths of various MC functions? Is the overall objective of our MC program to create and nourish profitable relationships with customers and stakeholders?