Chapter 13 Evaluating an Integrated Marketing Program

Evaluation Categories o Message evaluation techniques o Physical design of ads and marketing materials o Cognitive elements o Affective elements o Behavioural intentions o Respondent behaviour evaluations o Conative elements o Measurable with numbers o Customer actions

Matching Methods with IMC Objectives o Match objectives with evaluation tools o Before and after analyses o Levels of analyses o Short-term o Long-term o Product-specific o Corporate level o Affective, cognitive, or conative o Plan evaluation prior to campaign o Use multiple measures

Evaluation o Pretest measures o Concurrent measures o Post test measures

Concept Testing o Aimed at content of a marketing piece. o What is evaluated? o Verbal messages o Message and meaning o Translations for international copy o Product placement in ads o Value of a sales promotional efforts o Focus groups may be used o Concept testing instruments: o Comprehension and readability tests o Reaction tests

Copytesting o Used when marketing piece is finished or in final stages o Portfolio test – print communication o Theater test – television/mass media communication o Methods used: o Focus groups o Can be mall intercept

Copytesting o Criticisms of copytesting o Some agencies do not use them o Can stifle creativity o Focus groups may not be a good judge o Support of copytesting o Issue of accountability o Majority support copytesting because clients want support for ad decision

Emotional Reaction Tests o Used in conjunction with affective advertisements o Used for material designed to solicit emotions o Difficult to measure emotions with questions o A warmth monitor is one method used to measure emotions o Emotional reaction tests are self-reported instruments

Sample Graph from a Warmth Meter 30-Second TV Advertisement Ad section that elicited negative emotions

Physiological Arousal Tests o Measure fluctuations in a person’s body o There are three main types of physiological tests: o Psychogalvanometer – sweat o Pupillometric test – pupils of eyes o Psychophysiology – brain waves and currents o Cannot be faked easily

Purchase Simulation Tests o Simulated purchase tests o Research Systems Corporation is a leading marketing research firm that specializes in this type of research o Does not rely on opinions and attitudes o Bias in purchase intention questions is an issue

Types of Recall Tests o Day-after recall (DAR) o Unaided recall o Aided recall

o Product name or brand o Firm name o Company location o Theme music o Spokesperson o Tagline o Incentive being offered o Product attributes o Primary selling point of communication piece F I G U R E Recall Tests - Items tested

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Factors Affecting Recall Scores o Attitude towards advertising o Prominence of brand name o Brand used by respondent o Institutional ads o Use or Familiarity of the brand to respondent o Respondent’s age

Sample Recall Test 30-Second TV Advertisement for Pet Food

Recall Decay Magazine Ad vs. Television Ad Source: Magazines Canada’s Research Archive

Recognition Tests o Respondents shown marketing piece and are asked if they recognize it (if they have seen it before, where, when, how many times, etc.). o Good for measuring reaction, comprehension and likability. o Often used with recall tests, but different then recall tests

Using celebrities such as the Dixie Chicks increases recall and recognition through greater interest in and liking of the ad. Copyright 2013 Pearson Canada Inc.

Sales and Response Rates o Measuring sales with UPC codes o Scanner data o Retailers o Manufacturers o A change in this measure could also be caused by other factors

o Changes in sales o Telephone inquiries. o Response cards. o Internet inquiries. o Direct marketing responses. o Redemption rate of sales promotion offers. o Coupons, premiums, contests, sweepstakes F I G U R E Responses to Marketing Messages that can be Tracked

Test Markets o Used to assess: o Advertisements (different versions in different markets) o Consumer and trade promotions o Pricing tactics o New products o Cost effective method of evaluation prior to large-scale launch – e.g. Canadian Tire loyalty program. o Resembles actual situation. o Design test market to model full marketing plan. o Length of test market is a concern. o Competitive actions must be considered

o Testing procedure should be relevant to objectives. o Researchers should agree on how the results will be used in advance. o Multiple measures should be used. o The test should be based on some model or theory of human response to communication. o Testing procedure should allow for more than one exposure. o In selecting alternate ads to include in the test, they should be at the same stage in the process as the test ad. o The test should provide controls to avoid biases. o Sample used for the test should be representative of the target sample. o Testing procedure should demonstrate reliability and validity. Source: Based on PACT document published in the Journal of Marketing, (1982),Vol. 11, No. 4, pp F I G U R E Copytesting Principles of PACT

Methods of Evaluating Public Relations Number of clippings - Clippings found compared to the number of news releases sent out – e.g., 400 news releases, resulting in 84 clippings would have a 21% return Number of impressions, based on the number of views/subscribers of a broadcast medium. Adverting equivalence technique Comparison to public relations objections E.g., enhance firm image through a proactive strategy E.g., change firms image through a reactive strategy

Evaluating the IMC Program o Greater demand for accountability o ROI of advertising and marketing o Difficulties in measuring and defining ROI

Source: Paul J. Cough, “Study: Marketers Struggle to Measure Effectiveness,” Shoot, Vol. 45, No. 29 (August 20, 2004), pp T A B L E Definitions of ROI for Marketing Definition of ROI Percent Using Incremental sales from marketing66% Changes in brand awareness57% Total sales revenue from marketing55% Changes in purchase intentions55% Changes in market share49% Ratio of advertising costs to sales34% Reach/frequency achieved30% Gross rating points delivered25% Post-buy analysis comparing the media plan to its delivery21%

Difficulties in Evaluating Advertising o Influence of other factors on behaviour o Delayed impact of advertising o Consumers change their mind in the store o Whether or not the brand is in evoked set o Goal of ad may be to build brand equity, not increase sales so what you intend to measure is important to clarify.