1. Copyright © 2012 McGraw-Hill Companies, Inc., All right reversed McGraw-Hill/Irwin 18 Measuring the Effectiveness of the Promotional Program

2. Reasons to Measure 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 18-2

3. Evaluating Alternative Strategies 18-3

4. Measuring Advertising Effectiveness How to test Testing guidelines Appropriate tests How to test Testing guidelines Appropriate tests 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 18-4

5. Testing Methods 18-5

6. Where to Test In the Field In the Lab 18-6

7. 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 18-7

8. 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 18-8

9. Test Points 3.Finished art or commercial pretesting 1.Concept Testing2.Rough Testing 4.Market testing (posttesting) Occurs at Various Stages 18-9

10. 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 Sample sizes depend on the number of concepts and consensus of responses Method Qualitative and/or quantitative data evaluating and comparing alternative concepts Output 18-10

11. Focus Groups Appeal Results easily obtained, observable, immediate Multiple issues can be examined In-depth feedback is obtained Drawbacks Results not quantifiable Sample size too small Group influence may bias responses Some members may dominate discussion Participants become instant “experts” Members may not represent target market Results may be given too much weight 18-11

12. Rough Art, Copy, & Commercial Testing Number of ads that can be evaluated is limited Preference for ad types may overshadow objectivity Consumer may become 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 18-12

13. Rough Testing Terms Photomatic Rough Animatic Rough Live-action Rough Terms 18-13

14. Pretesting Finished Print Ads Based on syllables per 100 words Other factors also considered A laboratory method Includes test and control ads Portfolio test have problems Sent to random sample homes Product interest may bias results Portfolio Tests Readability Tests Dummy Advertising Vehicles 18-14

15. 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 18-15

16. Pretesting Finished Broadcast Ads Theater Tests On-Air Tests Physiological Measures 18-16

17. Physiological Measures Eye tracking Pupil dilation Galvanic skin response Brain waves 18-17

18. Market Testing of Ads Recall Tests Inquiry TestsRecognition Tests Tracking Studies Testing 18-18

19. Starch Ad Recognition Scores Noting Score Brand-associated Score Read Most Score 18-19

20. Posttests of Broadcast Commercials Test marketing Day after recall tests Persuasive measures Diagnostics Comprehensive measures Single-source tracking Tracking studies Testing 18-20

21. Comprehensive Testing by Ipsos-ASI 18-21

22. Essentials of Effective Testing Use a consumer response model Use both pretests and posttests Use multiple measures Understand & implement proper research Establish communications objectives 18-22

23. Test Your Knowledge Good tests of advertising effectiveness must address the nine principles established by PACT, that we just reviewed on the previous slide. 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 18-23

24. 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 18-24