Presentation on theme: "Evaluating an Integrated Marketing Program"— Presentation transcript:
1 Evaluating an Integrated Marketing Program Chapter 15
2 What should be evaluated? Short-term outcomes (sales, redemption rates)Long-term results (brand awareness, brand loyalty)Product specific awareness (new product or extension, company)Awareness of the overall companyAffective responses (liking the company, and positive brand image)
3 EvaluationPretest measuresConcurrent measuresPost test measures
5 Difficulties in Evaluating Advertising Influence of other factors on behaviourDelayed impact of advertisingConsumers change their mind in the storeWhether or not the brand is in evoked setGoal of ad may be to build brand equity, not increase sales so what you intend to measure is important to clarify.
6 Advertising Tracking Research Track ads after launchNielsen IAGMillward BrownMonitorsBrand performanceAdvertising effectivenessSpecific time testContinuous trackingA common method of evaluation involves tracking an advertisement by one of the advertising research firms, such as Nielsen IAG or Millward Brown. These tracking services monitor an ad’s performance and measure its effectiveness. Tests can be performed at specific times or continuously. Nielsen IAG, for instance, offers a syndicated database of real-time brand and ad performance based on more than 210,00 television program episodes and 250,000 commercials. Nielsen conducts thousands of surveys daily measuring viewer engagement with TV programs and effectiveness of ads.
7 Concept Testing Aimed at content of a marketing piece. What is evaluated?Verbal messagesMessage and meaningTranslations for international copyProduct placement in adsValue of a sales promotional effortsFocus groups may be usedConcept testing instruments:Comprehension and readability testsReaction tests
8 Copytesting Used when marketing piece is finished or in final stages Portfolio test – print communicationTheater test – television/mass media communicationMethods used:Focus groupsCan be mall intercept
9 CopytestingCopytesting can be used to determine if viewers comprehend this ad and what their reaction to it is.
10 Copytesting Criticisms of copytesting Support of copytesting Some agencies do not use themCan stifle creativityFocus groups may not be a good judgeSupport of copytestingIssue of accountability -Majority support copytesting because clients want support for ad decision
11 F I G U R ECopytesting principles of Positioning Advertising Copytesting (PACT)Testing procedure should be relevant to objectives.Researchers should agree on how the results will be used in advance.Multiple measures should be used.The test should be based on some model or theory of human response to communication.Testing procedure should allow for more than one exposure.In selecting alternate ads to include in the test, they should be at the same stage in the process as the test adThe test should provide controls to avoid biases.Sample used for the test should be representative of the target sample.Testing procedure should demonstrate reliability and validity.Source: Based on PACT document published in the Journal of Marketing, (1982) ,Vol. 11, No. 4, pp
13 Emotional Reaction Tests Used for material designed to solicit emotions.Difficult to measure emotions with questions.Warmth Meters are usually used as am instrument
14 Sample Graph from a Warmth Meter 30-Second TV Advertisement Ad section that elicited negative emotions
15 Cognitive Neuroscience Measures brainwave activityBetter indicator of respondent’s true reactionDoes not rely on self-reporting, like emotional reaction testsCompanies experimenting with neuroscienceEmSense, NeureoFocus, Sands ResearchFrito-LayPower of cognitive neuroscienceReveals physiological reactionsUnderstand how information is being processedCognitive neuroscience measures brainwave activity and is the latest advance in advertising research. It is a better indicator of a person’s true reaction since it does not rely on self-reporting. A number of companies are experimenting with cognitive neuroscience. Frito-Lay used cognitive neuroscience to examine a particular ad that was rated inappropriate by a focus group. The neuroscience research showed women loved the ad. The power of neuroscience is that it reveals physiological reactions. It provides information on where the information is being processed in the brain and what consumers do with the information they receive. Instead of rely on self-reporting, cognitive neuroscience hopes to measure reactions accurately.
16 Online Evaluation Metrics Click-throughs primary measurementLength of engagementDwell timeRedemption ratesResponse ratesSalesWeb chatterThe online environment provides a number of metrics that cannot be obtained with other media, especially so quickly. Web metrics can be obtained in almost real-time. The primary measure of online ads is click-throughs, which is the number of people who click on the ad and go to the Web site. Length of engagement is a newer metric that measures how long a person stays at a Web site, regardless of where they are on the site. Dwell rate measures the proportion of ad impressions that result in users engaging with an ad. Dwell time measures the amount of time users spend engaged with a particular ad. Redemption rates and response rates can be used to measure ad effectiveness, as well as sales. Companies can also monitor Web chatter to see how many times the brand name is being mentioned and what is being said about the brand.
17 Response rates to offers Test markets Purchase Simulation tests F I G U R EBehavioural MeasuresSalesRedemption ratesResponse rates to offersTest marketsPurchase Simulation tests
18 Direct marketing responses. Redemption rate of sales promotion offers. F I G U R EResponses to Marketing Messages that can be TrackedChanges in salesTelephone inquiries.Response cards.Internet inquiries.Direct marketing responses.Redemption rate of sales promotion offers.Coupons, premiums, contests, sweepstakes
19 Test Markets Used to assess: Advertisements (different versions in different markets)Consumer and trade promotionsPricing tacticsNew productsCost effective method of evaluation prior to large-scale launch.Resembles actual situation.Design test market to model full marketing plan.Length of test market is a concern.Competitive actions must be considered
20 Purchase Simulation Tests Bias in purchase intention questionsSimulated purchase testsResearch Systems CorporationDoes not rely on opinions and attitudesAnother behavioral measure is purchase simulation tests. Purchase intention questions are biased with more people saying they will buy a product than actually do. Simulated tests are more accurate. Research Systems Corporation is a primary provider of simulation tests. It does not rely on opinions and attitudes. Research Systems Corporation uses a controlled lab and a simulated store to study consumer purchases. Subjects are given various scenarios or shown particular ads then asked to shop as they normally would at their store.
21 Recall Tests Day-after recall (DAR) Unaided recall Aided recall Factors affecting recall:Respondent’s age affects recall scoresMedium used also plays a factor
22 Recall Tests - Items tested Product name or brandFirm nameCompany locationTheme musicSpokespersonTaglineIncentive being offeredProduct attributesPrimary selling point of communication piece
23 Sample Recall Test 30-Second TV Advertisement for Pet Food
24 Recall Decay Magazine Ad vs. Television Ad Source: Magazines Canada’s Research Archive