Measuring the Effectiveness of the Promotional Program © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Marketer’s Views Toward Measuring Effectiveness © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

The objectives of creative Evaluate alternative strategies Avoid costly mistakes Increase efficiency in general Disagreement on what to test Reasons for and Against Measuring Effectiveness © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Research problems Cost of measurement Determine if objectives are achieved Time AdvantagesDisadvantages Research problems Cost of measurement Determine if objectives are achieved

Where to test Laboratory tests Field tests Where to test Laboratory tests Field 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 When to test Pretesting Posttesting When to test Pretesting Posttesting What to test Source factors Message variables Media strategies Budget decisions What to test Source factors Message variables Media strategies Budget decisions How to test Testing guidelines Appropriate tests How to test Testing guidelines Appropriate tests What to test Source factors Message variables Media strategies Budget decisions What to test Source factors Message variables Media strategies Budget decisions Measuring Advertising Effectiveness © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

On-air Tests Dummy Ad Vehicles Consumer Juries Portfolio Tests Physiological Measures Theater Tests Rough Tests Concept Tests Reliability Tests Comprehension and Reaction Tests Pretesting Methods © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin LaboratoryField Dummy Ad Vehicles Consumer Juries Portfolio Tests Physiological Measures Theater Tests Rough Tests Concept Tests Reliability Tests Comprehension and Reaction Tests

Recall Tests Inquiry Tests Association Measures Single-Source Systems Tracking Studies Recognition Tests Inquiry Tests Single-Source Systems Association Measures Recall Tests Field Posttesting Methods © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Methods

Posttesting the Value of a Sponsorship © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Test Your Knowledge © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Laboratory methods of testing for advertisement effectiveness generally offer high _____ but low _____. A)control; generalizability B)external validity; internal validity C)control; costs D)generalizability; costs E)costs; value

Positioning Advertising Copy Testing (PACT) © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 1. Provide measurements relevant to objectives of advertising 2. Require agreement on how results will be used before each test 3. Provide multiple measures (Single measures aren't adequate) 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 the same degree of finish 7. Provide controls to avoid the biasing effects of exposure context 8. Take into account basic considerations of sample definition 9. Demonstrate reliability and validity

3.Finished Art or Commercial Testing 1.Concept Testing 2.Rough Testing 4.Market Testing (Post- testing) 2.Rough Testing 1.Concept Testing The Testing Process © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Occurs at Various Stages

Qualitative and/or quantitative data evaluating and comparing alternative concepts Explores consumers’ responses to ad concepts expressed in words, pictures, or symbols Alternatives are exposed to consumers who match the target audience Reactions and evaluations are sought through focus groups, direct questioning, surveys, etc. Sample sizes depend on the number of concepts and the consensus of responses Explores consumers’ responses to ad concepts expressed in words, pictures, or symbols Alternatives are exposed to consumers who match the target audience Reactions and evaluations are sought through focus groups, direct questioning, surveys, etc. Sample sizes depend on the number of concepts and the consensus of responses Concept Testing © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Objective Method Output

Rough Art, Copy, and Commercial Testing © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Number of ads that can be evaluated is limited Preference for ad types may overshadow objectivity Consumer may become a 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 Number of ads that can be evaluated is limited Consumer may become a self-appointed expert A halo effect is possible Control Cost effectiveness Endorsements by independent third parties Achievement of credibility Comprehension and Reaction Tests

Photomatic Rough Animatic Rough Live-action Rough Photomatic Rough Animatic Rough Rough Testing Terms © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Terms

An Animatic Example from Airwalk © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin *Click outside of the video screen to advance to the next slide

Resulting Spot from the Animatic Rough © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin *Click outside of the video screen to advance to the next slide

Based on syllables per 100 words Other factors also considered A laboratory method Includes test and control ads Portfolio test have problems Based on syllables per 100 words Other factors also considered A laboratory method Includes test and control ads Portfolio test have problems Pretesting Finished Print Ads © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Readability Tests Portfolio Tests Dummy Advertising Vehicles Distributed to random sample of homes Product interest may still bias results Distributed to random sample of homes

Test Your Knowledge © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin _____ 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

Theater Tests Measures changes in product preferences May also measure... Interest in and reaction to the commercial Reaction from an adjective checklist Recall of various aspects included Interest in the brand presented Continuous (frame-by- frame) reactions Measures changes in product preferences May also measure... Interest in and reaction to the commercial Reaction from an adjective checklist Recall of various aspects included Interest in the brand presented Continuous (frame-by- frame) reactions On-Air Tests Insertion in TV programs in specific markets Limitations are imposed by “day-after recall” Physiological Measures Insertion in TV programs in specific markets Limitations are imposed by “day-after recall” Physiological Measures Theater Tests Pretesting Finished Broadcast Ads © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Eye tracking Pupil dilation Galvanic skin response Brain waves Eye tracking Galvanic skin response Pupil dilation Physiological Measures © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Testing

Recall Tests Inquiry Tests Recognition Tests Tracking Studies Recall Tests Recognition Tests Inquiry Tests Market Testing Print Ads © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Testing

Starch-Scored Sports Illustrated Ad © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Test marketing Day after recall tests Persuasive measures Diagnostics Comprehensive measures Single-source tracking Tracking studies Single-source tracking Test marketing Comprehensive measures Diagnostics Persuasive measures Day after recall tests Market Testing Broadcast Commercials © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Testing

Comprehensive Testing by Ipsos-ASI © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Problems With Current Research Methods © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Use a consumer response model Use pretests and posttests Use multiple measures Understand and implement proper research Establish communications objectives Use multiple measures Use pretests and posttests Use a consumer response model Essentials of Effective Testing © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Testing

Test Your Knowledge © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Good tests of advertising effectiveness must address the nine principles established by PACT. One of the easiest ways to do this is to follow a decision sequence model. 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)the decision whether to use posttests or pretests E)develop a consumer response model

Shopping cart signage Ski resort-based media In-store radio and television Other media Shopping cart signage Ski resort-based media In-store radio and television Other media Measuring the Effectiveness of Other Programs © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Non- traditional media Sales promotions Sponsor- ships Exposure methods Tracking measures Exposure methods

Measuring the Effectiveness of Other IMC Program Elements © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin