Agency Management Lecture 14 2/25/2011Agency Management – Ruia – TYBMM 2010

Lecture break ups DateLecture topicAssignment Feb 24thSales Promotion Feb 26thMeasuring Ad Effectiveness + case studies March 2 nd Final Presentations begin

Measuring Ad Effects

Reasons to measure Every strategy, every tactic requires a measurement tool to ascertain the way ahead– This helps avoid costly mistakes and evaluate alternative strategies Measuring how an ad campaign has worked also helps increase the efficiency of advertising in general Deeper understanding of market trends and why they exist

Ways of measurement Break Even Analysis – Covering the total cost of the promotion by the total revenue generated – Break even is when the cost is covered evenly – Everything above is profit Conversion studies – The number of inquiries about a product that get converted into actual purchase – Measured by advertising mechanisms like “Mail back postcards”, “Clip out coupons”, “1-800 numbers” Response Rate – Response that an ad gets, measured by various tools

Ways of measurement Attitude Measurement Test – How favorable is the attitude towards the product before and after Triple Associate Test – Measures effectiveness of campaigns rather than individual ads – Measures association that people have towards the product category in terms of name, slogan and theme Sales Effect – Sales effects can be measured holistically by tracing response. Comparision is done with past sales to measure effectiveness

Case Studies Methodology 1.Understand the problem scenario 2.Identify the basic problem 3.Introduction Explain your understanding of the case Include any research insight that you have Do a SWOT for the situation/brand 4.Communication goals/objectives – What you want to achieve with your plan

Case Studies 5.Positioning statement – What is the brand image that you want to capitalize on or create 6.Key Message – In a sentence explain the main purpose of your plan or the main solution to the problem 7.Audience – Define your audience in detail Demographic and psychographic 8.Communication Strategy – What IMC Mix do you want to use, when, over what period, what kind of budget 9.Evaluation strategies – How you can account for your plan and understand from its failures and wins

Case Study - I – Shinai, a Chinese brand of consumer electronic devices, is launching a new Android in the market,Gomex. This android will have the latest Froyo technology and a host of features that the current reigning champions, Samsung Galaxy and HTC offer. It has a decent screen size at 3.2 inches and good battery life. Device a launch pad plan for the product, after fixing its market price, and the kind of audience it should target. Also define a clear positioning stand that the brand should take, along with a marketing plan that adheres to the positioning.

Case Study - II – ICC Cricket World Cup is looking at introducing branded merchandise in the market. This merchandise (Tee shirts, caps, mugs, track pants, sweat bands) will be priced moderately, affordable enough at Rs 200 to Rs 600. Make a communication plan for this utilizing the optimum mix of media, defining a budget and what evaluation criteria you will use.

That’s it!