1. Part 5 Principles: IMC and Total Communication Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 19-1

2.  Why and how is marketing communication evaluation conducted?  Can you list and explain the stages of message evaluation?  What are the key areas of media evaluation?  How are IMC tools, campaigns, and programs evaluated? Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall19-2

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4.  What makes a marcom message effective?  Many executive believe advertising is only successful if it produces sales.  Others believe advertising should emphasize long- term brand building.  If advertising delivers the desired communication effects, but sales don’t increase, was the advertising ineffective? Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall19-4

5.  Principle: “If you can’t measure it, you can’t manage it.”  Some evaluation is informal and based on the judgment of experienced managers.  Evaluation should be “planned in” to any campaign.  Measurement tracks consumer responses with structured feedback like response cards and calls. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall19-5

6.  Formal evaluation is necessary. ◦ Financial stakes are high: production of a :30 spot averages $200,000; national media costs several million. ◦ Advertising optimization: reducing the risk failure through testing, analyzing, tracking performance, and making changes to increase performance. ◦ Identify best practices: what works and what doesn’t, so brand advertising continues to improve. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall19-6

7.  Testing is used to predict results. Sample ads are tested before they run.  Monitoring is used to track performance. Does anything need to be changed?  Measurement is used to evaluate the results. The results, or actual effects, are measured after the campaign runs. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall19-7

8. Developmental research Pretesting to see if an idea will work, or another is better. Concurrent research Tracking studies and test marketing to see how the campaign is unfolding and how messages and media are working. Post-testing research Comparing the impact of campaign after it’s over against a benchmark, baseline, or other starting point. Diagnostic research Taking apart an ad to see what elements are working and which aren’t; examining frame by frame or piece by piece. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall19-8

9.  It’s difficult to measure advertising’s effect on sales. ◦ Other factors affect sales, such as pricing, distribution, competition. ◦ Effects are delayed; it’s hard to link sales to advertising.|  Communication effects an be measured as surrogate measures for sales impact. ◦ Examples include awareness of the advertising, purchase intention, preference, or liking.  Good evaluation plans, as well as effective promotional work, are guided by a model of how people respond to advertising. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall19-9

10. (Facets of Effects Model here) Good evaluation objectives are based on a model of human responses to an advertisement that identifies key effects, as noted here in the Facets of Effects Model. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall19-10

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12.  Companies conduct research and perform diagnostic methods to identify an ad’s strong and weak points: ◦ Ameritest: brand linkage, attention, motivation, communication, flow of attention and emotion through the commercial. ◦ COMSCORE ARSgroup: persuasion, brand/ad recall, communication. ◦ IPSOS-ASI: recall, attention, brand linkage, persuasion, (brand switch, purchase probability), communication. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall19-12

13.  Testing companies… ◦ Mapes and Ross: brand preference change, ad/brand recall, idea communication, key message delivery, like/dislike, believability, comprehension, desire to take action, attribute communication. ◦ Millward Brown: branding, enjoyment, involvement, understanding, ad flow, brand integration, feelings to ad, main stand-out idea, likes/dislikes, impressions, persuasion, new news, believability, relevance ◦ RoperASW: overall reaction, strengths and weaknesses, understanding, clutter-busting, attention, main message, relevance, appeal, persuasiveness, purchase intent. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall19-13

14.  Concept Testing Compares the effectiveness of various message strategies and their creative ideas (the Big Idea).  Pretesting Helps marketers make final go/no-go decisions about finished/nearly finished ads using photoboards or animatics.  Diagnostics Designed to diagnose strengths and weaknesses of ideas to improve work still in development, or to learn more in order to improve subsequent advertisements. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall19-14

15.  Coincidental Surveys ◦ In broadcast media, random calls to target market determine station choices, ads they’ve seen/heard, brand perceptions.  Tracking Studies ◦ Every 3 to 6 months, measure top-of-mind brand awareness. ◦ Brand tracking tracks the performance of the brand.  Test Markets ◦ Evaluates product variations, campaign or media elements. ◦ Generally two or more markets with markets as controls. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall19-15

16.  Breakthrough: Attention Measures interest, enjoyability, liking.  Engagement tests Eye-tracking as readers scan ads.  Understanding and comprehension tests Used to determine if consumers understood the message.  Memory tests Recognition test, recall tests, unaided and aided recall. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall19-16

17.  Brand linkage tests A test of whether the brand is associated with a message in memory.  Emotion test Here, an fMRI measures brain activity.  Likability tests Is the message relevant, important, enjoyable, entertaining, fun? Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall19-17

18.  Persuasion tests Intention to buy or motivation is measured.  Inquiry tests Measure the number of responses to an ad. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall19-18 Pacific Life uses an image of a leaping whale to reflect its image of a confident insurance company.

19.  Many retail outlets use scanners to tally purchases and collect consumer buying information.  Scanner research is also used to see what type of sales spikes are crated when certain ads and promotions are used in a given market.  Using single-source research, advertising and brand purchase data come from the same households, linking advertising to sales. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall19-19

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21.  Advertising has little chance to be effective if no one sees it.  Key media questions: ◦ Did the plan actually achieve reach and frequency objectives? ◦ Did the newspaper and magazine placements run in positions expected and produce the intended GRP and CMP levels? ◦ Did the advertisers get what they paid for? Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall19-21

22.  Verifying audience measurement estimates is a challenge.  Services including Experian Simmons, Arbitron, MediaMark provide data.  Video recorders and DVRs raise new issues. What do viewers see and remember as they skip through commercials? Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall19-22

23.  Out-of-home media For outdoor, traffic counts don’t equal exposure.  New media For Web or Internet advertising, what is measured and how does it compare to traditional media: hits, click-throughs, minutes spent?  Alternative or guerilla marketing is even more difficult to equate to traditional media. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall19-23

24. This outdoor board attracted attention because of its interesting visual and its challenging idea. Research based on traffic counts find it difficult to account for the emotional impact of messages like these. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall19-24

25.  Return on investment (ROI) ◦ This is hard to calculate because many factors affect sales. ◦ How do you determine whether you are over-advertising or under-advertising?  Wearout ◦ Here, recall stabilizes or declines and irritation increases until there’s no or less response. ◦ This can be a combination of creative impact and media buying.  Media optimization ◦ The goal is optimum media performance getting the most impact for the investment. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall19-25

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27.  Evaluation is the final and, in some respects, the most important step in an advertising campaign.  It determines whether the campaign met its message and media objectives.  An IMC campaign is measured in terms of its overall impact on the brand, but the pieces are still evaluated to determine individual effectiveness. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall19-27

28.  Certain marketing communication functions such as public relations and sales promotion, do some things better than other areas.  An integrated plan uses the best tools to accomplish the desired effect. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall19-28 As this planning meeting illustrates, evaluation must be planned into the campaign from the very beginning.

29.  Advertising Advertising is particularly effective in accomplishing such objectives as creating exposure, awareness, and brand image, and delivering brand reminders.  Direct response  The objective is to generate an immediate behavior response (transaction, buy).  Use toll-free numbers, mail-in coupons, Web site or email address, an offer in the copy.  Response is easy to measure in terms of effectiveness and ROI. ◦ Total responses divided by total mailed = response per thousand (RPM) Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall19-29

30.  Sales promotion ◦ It may be necessary to evaluate both trade and consumer promotions. ◦ Payout analysis compares the costs of a promotion to the expected sales. ◦ Breakeven analysis finds the point at which the total cost of the promotion exceeds the total revenues. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall19-30

31.  Public relations ◦ Evaluates success in getting out the message in terms of output and outcomes. ◦ Output: materials produced and distributed; how many press releases ran. ◦ Outcomes: acceptance and impact of materials; changes in public opinion. ◦ Content analysis determines favorability of coverage. ◦ Public opinion studies ask whether attitudes, behaviors, or knowledge have changed. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall19-31

32. Website evaluation Performance indictors include:  Traffic volume ◦ Page views ◦ Site visitors  Click-through rates ◦ Ads are sold as pay-per click.  Cost per lead ◦ An attempt to measure ROI using a conversion rate, or percentage of visitors who complete desired action. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall19-32

33. Retail advertising  Objective: generate store traffic ◦ Simple counts of people at promotions and events  Objective: visibility ◦ Participation counts at events, or “how-to” classes ◦ Sign-up and fill-out forms  Objective: loyalty ◦ Participation in frequency clubs or loyalty programs Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall19-33

34. B2B marketing  Objective: generate response/sales leads ◦ Lead count based on calls, emails, and cards returned to the advertiser.  Objective: conversion rates ◦ Count the number of leads who make a purchase.  Nonprofit organizations ◦ Evaluation in this area is an emerging field. ◦ There are no standard guidelines here. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall19-34

35. International  It is difficult to evaluate because of the number of markets, distance, cost and variety of cultures.  Evaluation should focus initially on pretesting to help head off major problems due to unfamiliarity with: ◦ culture ◦ language ◦ consumer behavior Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall19-35

36.  Advertising has two types of effects: ◦ Instantaneous: the consumer responds immediately. ◦ Carryover: delayed impact.  Any evaluation of campaign effectiveness must be able to track both types of effects over time. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall19-36

37. The synergy problem  It’s difficult to evaluate and estimate the impact of synergy.  Brand tracking can measure campaign effectiveness by adding and taking away ingredients, and studying the effects of those changes. As a class: Review “A Principled Practice: Can a Broken Guitar Really Hurt United?” How might the message effects be measured in this case? Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall19-37

38. Connecting the dots The challenge is to look at the big picture rather than individual pieces and parts. 1. Start by defining the campaign objectives. 2. Next, adequately and realistically measure the campaign’s performance against those objectives. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall19-38

39. Bringing it all together  Advertisers continue to search for evaluation methods that bring all the individual metrics together to efficiently and effectively evaluate and predict communication effectiveness.  The ultimate goal is to arrive at holistic, cross-functional metrics that are relevant for integrated communication.  Many pieces are still missing in the evaluation of advertising, not to mention more complex IMC programs. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall19-39

40. “The Colorado Pass Club Comes to Pass ” Key lessons:  All successful campaigns must be evaluated to determine their success.  This IMC program monitors all marketing communication messages to evaluate their effectiveness.  As a class: What others can you think of? Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall19-40