1. MeasuringMeasuring the Effectiveness of the Promotional Program MeasuringMeasuring the Effectiveness of the Promotional Program 19 McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.

2. Pros and Cons of Measuring Effectiveness Objections of creatives Evaluate alternative strategies Avoid costly mistakes Increase efficiency in general Disagreement on what to test Research problems Cost of measurement Determine if objectives are achieved Time Advantages Disadvantages

3. Evaluating Alternative Strategies

4. Measuring Effectiveness: Marketers’ Views IssueAgree MPM is a key priority for today’s technology companies. 90% I am dissatisfied with our ability to demonstrate marketing programs’ business impact and value. 80% It is important to define, measure, and take concrete steps in the area of advertising accountability. 61.5% I can forecast the impact on sales of a 10% cut in marketing spending. 37%

5. 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

6. Pretesting Methods On-air Tests DummyDummy Ad VehiclesConsumer Juries Portfolio Tests Physiological Measures Theater Tests Rough Tests Concept Tests Readability Tests Comprehension and Reaction Tests LaboratoryField

7. Posttesting Methods Recall Tests Inquiry Tests Association Measures Single- Source Systems Tracking Studies Recognition Tests Methods

8. Posttesting the Value of a Sponsorship

9. Test Your Knowledge Laboratory methods of testing for advertisement effectiveness generally offer high control but low _____. A)realism B)external validity C)costs D)generalization E)value

10. Where to Test In the Field   In the Lab

11. 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

12. Test Points 3.Finished art or commercial pretesting 1.Concept Testing 2.Rough Testing 4.Market testing (posttesting) Occurs at Various Stages

13. Concept Testing Explores consumers’ responses to ad concepts expressed in words, pictures, or symbols Objective 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 Method Qualitative and/or quantitative data evaluating and comparing alternative concepts Output

14. RoughRough Art, Copy, and Commercial TestingArt 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 AdvantagesDisadvantages

15. Rough Testing Terms Photomatic Rough Animatic Rough Live-action Rough Terms

16. An Animatic Example from Airwalk *Click outside of the video screen to advance to the next slide

17. Spot Resulting from Animatic Rough *Click outside of the video screen to advance to the next slide

18. Pretesting Finished Print Ads Based on syllables per 100 words Other factors also considered Readability Tests A laboratory method Includes test and control ads Portfolio test have problems Portfolio Tests Distributed to random sample homes Product interest may still bias results Dummy Advertising Vehicles

19. Test Your Knowledge _____ is a method of testing ads by placing them randomly in certain copies of regularly distributed magazines. A)Vehicle source testing B)Burke's reflection test C)A Flesch test D)Dummy advertising vehicle testing E)A contextual test

20. 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

21. Eye tracking PupilPupil dilationdilation PupilPupil dilationdilation Galvanic skin response Brain waves Testing

22. Market Testing Print Ads Recall Tests Inquiry Tests Recognition Tests Tracking Studies Testing

23. Starch-Scored Sports Illustrated Ad

24. Posttests of Broadcast Commercials Test marketing Day after recall tests Persuasive measures Diagnostics Comprehensive measures Single-source tracking Tracking studies Testing

25. Comprehensive Testing by Ipsos-ASI

26. Problems With Current Research Methods

27. Essentials of Effective Testing Use a consumer response model Use pretests and posttests Use multiple measures Understand and implement proper research Establish communications objectives Testing

28. Test Your Knowledge Good tests of advertising effectiveness must address the nine principles established by PACT. One of the easiest ways to do this is to follow a decision sequence model. The first step in the model is to: A) Understand the appropriate research B) Create a model that uses multiple measures C) Establish communication objectives D) Decide whether to use posttests or pretests E) Develop a consumer response model

29. Measuring Effectiveness of Other Programs Shopping cart signage Ski resort-based media In-store radio and television Other media Non- traditional media Sales promotions Sponsor- ships Exposure methods Tracking measures

30. Measuring Effectiveness + Efficiency