2. Chapter 15: MEASURING THE EFFECTIVENESSof PROMOTION and IMC 15.1

3. Issues in Measuring the Effectiveness or Promotion and Integrated Marketing Communications (IMC) DIFFERENCE BETWEEN MARKETING RESEARCH & PROMOTION RESEARCH Marketing Research Marketing Research Systematic Gathering, Recording Interpretation of Info Related to All Marketing Mix Variables Systematic Gathering, Recording Interpretation of Info Related to All Marketing Mix Variables Promotion Research Promotion Research Specialized Form of Marketing Research Specialized Form of Marketing Research Focuses on Development and Performance of Promotional Materials Focuses on Development and Performance of Promotional Materials Serious Issues in Judging Research Serious Issues in Judging Research Reliability Reliability Validity Validity Trustworthiness Trustworthiness Meaningfulness Meaningfulness15.2

4. Issues in Measuring the Effectiveness or Promotion and Integrated Marketing Communications (IMC) (con’t) ACCOUNT PLANNING vs. MEASURING EFFECTIVENESS Account Planning Contrasts Traditional Promo Research Account Planning Contrasts Traditional Promo Research Planner Assigned to Work w/Account Exec on Client’s Business Planner Assigned to Work w/Account Exec on Client’s Business Puts Research & Measurement in a Different More Prominent Role Puts Research & Measurement in a Different More Prominent Role Firms that Put More Emphasis on Account Planning : Firms that Put More Emphasis on Account Planning : Do More Qualitative and Naturalistic Research Do More Qualitative and Naturalistic Research Includes Use of Video, Audio Tapes and Photography to Investigate Issues More Holistically Includes Use of Video, Audio Tapes and Photography to Investigate Issues More Holistically15.3

5. Issues in Measuring the Effectiveness or Promotion and Integrated Marketing Communications (IMC) (con’t) FUNDAMENTAL ISSUES IN MESSAGE EVALUATION Motives and Expectations Motives and Expectations Dimensions of Message Assessment: Factors that Get Measured Dimensions of Message Assessment: Factors that Get Measured Impart Knowledge to Receivers Impart Knowledge to Receivers Shape Attitudes Shape Attitudes Attach Feelings and Emotions Attach Feelings and Emotions Legitimize the Brand with Resonance Test Legitimize the Brand with Resonance Test15.4

6. Measuring the Effectiveness of Advertising PRETEST EVALUATIONS OF ADVERTISING EFFECTIVENESS Communications Tests Communications Tests Magazine Dummies Magazine Dummies Theater Tests Theater Tests Thought Listings Thought Listings Attitude Change Studies Attitude Change Studies Physiological Measures Physiological Measures Eye Tracking Eye Tracking Psychogalvanometer Psychogalvanometer Voice Response Analysis Voice Response Analysis Commercial Pretest Services Commercial Pretest Services15.5

7. Measuring the Effectiveness of Advertising (con’t) MARKETPLACE EVALUATION OF ADVERTISING: PILOT TESTING Pilot Testing - Pursuing Message Evaluation with Experimentation In The Marketplace Pilot Testing - Pursuing Message Evaluation with Experimentation In The Marketplace Split-Cable Transmission Split-Cable Transmission Split-Run Distribution Split-Run Distribution Split-List Experiment Split-List Experiment15.6

8. Measuring the Effectiveness of Advertising (con’t) MARKETPLACE EVALUATION OF ADVERTISING: POST TESTING Post Test Message Tracking Post Test Message Tracking Recall Testing Recall Testing Recognition Testing Recognition Testing Awareness and Attitude Tracking Awareness and Attitude Tracking Behavior-Based Evaluation Behavior-Based Evaluation –Inquiry/Direct Response Measures –Tracking Measures Commercial Services Commercial Services15.7

9. The Problem with Measurement: How Many Ads Have You Seen Featuring a Kid and a Puppy? 15.8

10. Measuring the Effectiveness of Advertising (con’t) FINAL THOUGHT ON MESSAGE TESTING No Method is Perfect No Method is Perfect Challenges of Reliability, Validity, Trustworthiness, and Meaningfulness Challenges of Reliability, Validity, Trustworthiness, and Meaningfulness Advertisers Think Consumers Anticipate New TV Commercials Like an Anticipated Feature Film Advertisers Think Consumers Anticipate New TV Commercials Like an Anticipated Feature Film15.9

11. Measuring the Effectiveness of Internet Advertising WEB MEASUREMENT FACTORS Hits Hits Click-Through Click-Through Pages Pages Visits Visits Users Users15.9

12. There are Specialized Measures for Researching Web Sites

13. Measuring the Effectiveness of Internet Advertising (con’t) WEB MEASUREMENT TOOLS WEB MEASUREMENT TOOLS Log Analysis Software - Tracks Users Log Analysis Software - Tracks Users Site Could Determine Which Page is Popular and Expand on It Site Could Determine Which Page is Popular and Expand on It Track Behavior of People Track Behavior of People Reach Reach Sampling Sampling Tracking Software Tracking Software Data Projected to Universe of Users Data Projected to Universe of Users Reach Figure Reach Figure –Systematic Biases –Some Have Problems Applying Reach 15.12

14. Measuring the Effectiveness of Internet Advertising (con’t) TECHNICAL ASPECTS OF THE INTERNET MEASUREMENT PROCESS THE CACHING COMPLICATION IN INTERNET MEASUREMENT INTERNET MEASUREMENTAND PAYMENT 15.13

15. Measuring the Effectiveness of Direct Marketing and e-Commerce THESE PROMOTION TOOLS ARE THE EASIEST TO MEASURE INDIRECT/DIRECT RESPONSE MEASURES INQUIRIES AND SALES RESPONSES - MAY BE PARTIONED BY GEODEOMGRAPHIC NATURE OF RESPONDENTS DATA-RICH DIRECT MARKETING AND e-COMMERCE ALLOW FOR PROFITABILITY ANALYSIS 15.14

16. Measuring the Effectiveness of Sales Promotion PRE TESTING SALES PROMOTION WITH CONSUMERS Ballot Method Ballot Method PRE TESTING SALES PROMOTION IN THE TRADE CHANNEL POST TESTING SALES PROMOTION 15.15

17. Measuring the Effectiveness of Sponsorship, Point-of-Purchase, and Supportive Communications SPONSORSHIP Number of People Attending is Easily Obtained Number of People Attending is Easily Obtained Televised Gives proxy Measure of Exposure Televised Gives proxy Measure of Exposure Research firms Offer Services to Calculate Efforts Research firms Offer Services to Calculate EffortsPOINT-OF-PURCHASE Changes in Sales is Legitimate and Appropriate Changes in Sales is Legitimate and Appropriate SUPPORTIVE COMMUNICATIONS Rely on Recall Rely on Recall Difficult to Test Effectiveness of Some Supportive Tools Difficult to Test Effectiveness of Some Supportive Tools15.16

18. Measuring the Effectiveness of Public Relations and Corporate Advertising ONE ATTITUDE ABOUT MEASURING THE EFFECTS IS THAT IT SHOULDN’T EVEN BE TRIED COUNT THE NUMBER OF MEDIA EXPOSURES CREATED BY PR PROGRAM MEASURE CHANGES IN AWARENESS OR ATTITUDE 15.17

19. Why is the Effectiveness of a Corporate Campaign Difficult to Measure? 15.18

20. Measuring the Effectiveness of Salespeople and the Personal Selling Effort OBJECTIVE CRITERIA Total Dollar Volume of Sales - Judge Against Order Size & Expenses Total Dollar Volume of Sales - Judge Against Order Size & Expenses Repeated Small Orders May Be a Great Cost to Firm Repeated Small Orders May Be a Great Cost to Firm Non-Selling Tasks May Be Critical to Long Range Plans Non-Selling Tasks May Be Critical to Long Range Plans Subjective Criteria Subjective Criteria May be Difficult to Operationalize May be Difficult to Operationalize Management Must be Willing to be Flexible and Allow Individual Styles to Manifest Themselves Management Must be Willing to be Flexible and Allow Individual Styles to Manifest Themselves Criteria Relating to Team Relationships is a Difficult One Criteria Relating to Team Relationships is a Difficult One15.19

21. Measuring the Effectiveness of the Overall IMC Program SINGLE SOURCE TRACKING MEASURES Provides Info from Individual Households Provides Info from Individual Households Combines Grocery Store Info and Household Info Combines Grocery Store Info and Household Info IDENTIFYING EXPOSURE TO AN IMC EFFORT Media Exposure Media Exposure Product (Brand) Impressions Product (Brand) Impressions Personal Contact Personal Contact15.20