Integrated Marketing Communications Lecture 11 Research and Evaluation 2: other marcomms tools

OBJECTIVES To understand the nature and role of research and evaluation in relation to other marcomms tools To understand the nature and role of research and evaluation in relation to other marcomms tools To outline research issues at the varying stages of a marcomms plan To outline research issues at the varying stages of a marcomms plan To explain the types of research and data collection methods that are appropriate and available at each stage To explain the types of research and data collection methods that are appropriate and available at each stage To explain how research and evaluation of marcomms can add value and how it can be used to improve marketing performance To explain how research and evaluation of marcomms can add value and how it can be used to improve marketing performance

Scope of IMC research Traditionally measures focussed on advertising element Traditionally measures focussed on advertising element Advent of IMC means: Advent of IMC means: –Other marcomms tools will need to be evaluated –Degree of integration needs to be assessed

Research and Evaluation Sales Promotion Sales Promotion Public Relations Public Relations Personal Selling Personal Selling Direct Marketing Direct Marketing Sponsorship Sponsorship Evaluating Integration Evaluating Integration

Research and Evaluation: Sales Promotion Can be complicated due to: Can be complicated due to: –Nature and diversity of objectives e.g. stimulating immediate action, enhancing brand equity/positioning –Techniques e.g. coupons, sampling –Targets – consumers, sales staff, retailers –Role of intermediaries e.g. retailers may need to implement

Research and Evaluation: Sales Promotion Timing: pre, post and tracking? Timing: pre, post and tracking? –Pre: developmental –Post: financial –Tracking: longer term impact

Research and Evaluation: Sales Promotion - Pre testing (developmental) Picton and Broderick (2005) Picton and Broderick (2005) –How good is the general idea? objectives –Will it appeal to target audience? Call to action –Is it unique or a me-too? –Can it be clearly presented/understood? AIDA –Will it be cost effective and efficient? ROI Piloting/test marketing should be used to identify potential problems Piloting/test marketing should be used to identify potential problems Impact on brand image/position should be assessed Impact on brand image/position should be assessed

Research and Evaluation: Sales Promotion – post testing Test results against objectives Test results against objectives Can be qualitative or quantitative Can be qualitative or quantitative Can include sales type measures, financial analysis Can include sales type measures, financial analysis Could be related to awareness, brand attitudes/perceptions etc. Could be related to awareness, brand attitudes/perceptions etc. Technology (bar code/scanner data) Technology (bar code/scanner data) Methods will vary depending on targets e.g. Methods will vary depending on targets e.g.

ObjectivesTests Manuf. to reseller Stock/try new products Stock/try new products Increase shelf space/display Increase shelf space/display Tracking studies (stock levels) Tracking studies (stock levels) Retail audits Retail audits Reseller to consumer Sales Sales Trial Trial Increase usage Increase usage Informal feedback Informal feedback Sales and stock levels Sales and stock levels Manuf. to consumer Sales Sales Trial Trial Increase usage Increase usage Coupon redemption Coupon redemption Self-liquidating offers Self-liquidating offers Retail audits Retail audits Manuf. to sales force Sales Sales New clients New clients Boost morale Boost morale Sales against target Sales against target New Business New Business

Public Relations Corporate PR Corporate PR –Corporate image –Recruitment –Crisis management Marketing PR Marketing PR –Actual activities undertaken (quantity not effect) –Audience reaction (effect not behaviour) –Audience behaviour (behaviour/action)

Public Relations: CPR Mostly ongoing research, tracking studies likely to be used to measure attitudes towards the organisation, or goodwill Mostly ongoing research, tracking studies likely to be used to measure attitudes towards the organisation, or goodwill Cuttings services can measure volume of media coverage, but not impact or behaviour e.g. Labour Party ‘Shylock’ advert generated £300,000 worth of advertising spend in media coverage/PR Cuttings services can measure volume of media coverage, but not impact or behaviour e.g. Labour Party ‘Shylock’ advert generated £300,000 worth of advertising spend in media coverage/PR

Public Relations: MPR Marketing PR harder to gauge effectiveness as it often works with other marcomms tools in a supportive role Marketing PR harder to gauge effectiveness as it often works with other marcomms tools in a supportive role Pre and post measures should be taken Pre and post measures should be taken Quantitative tests such as cuttings service, awareness can be measured Quantitative tests such as cuttings service, awareness can be measured Qualitative can include perceptions, feelings towards products/brands etc. Qualitative can include perceptions, feelings towards products/brands etc.

Personal Selling Evaluation can occur for: Evaluation can occur for: –The function as part of the marcomms mix –The person who is doing the selling Individual sales staff will need to be set targets that collectively will help achieve the marcomms objectives, as they relate to sales. Individual sales staff will need to be set targets that collectively will help achieve the marcomms objectives, as they relate to sales.

Personal Selling: salesperson Input measures: Input measures: –Cost –Knowledge and skills e.g. product and market knowledge –Calls e.g. number of, type (persuasive, order taking, promotional etc) Output measures: Output measures: –Sales –Profitability –Customer accounts – number, size, new, profitability

Personal Selling: marcomms mix Measures could include: Quantitative Measures could include: Quantitative –Sales volume –Sales value –Effectiveness of different channels –Integration with other marcomms tools –Relationships developed/maintained Qualitative

Direct Marketing One of the easier marcomms tools to evaluate as spend and revenue are more precisely connected due to the nature of the activities One of the easier marcomms tools to evaluate as spend and revenue are more precisely connected due to the nature of the activities Evaluation should include: Evaluation should include: –pre and post measures –Quantitative and qualitative research

Direct Marketing Pre testing includes: Pre testing includes: –Creative approaches –Incentive –Test marketing Post testing includes: Post testing includes: –ROI –Sales value/volume –Profitability –Response by media/target/incentive/creative etc

Sponsorship Easy to measure activity but not effect/ impact Easy to measure activity but not effect/ impact Quantitative measures easy to assess e.g. crowd size at sponsored sports event Quantitative measures easy to assess e.g. crowd size at sponsored sports event Qualitative tests need to examine impact, attitudes etc, so tracking studies may be useful Qualitative tests need to examine impact, attitudes etc, so tracking studies may be useful

Sponsorship Like PR, effect can be measured in terms of media coverage/costs (as if it were advertising) Like PR, effect can be measured in terms of media coverage/costs (as if it were advertising) E.g. Ellen MacArthur sponsorship by B & Q cost them £2-£3million, media coverage of recent success generated an estimated £100million worth of exposure E.g. Ellen MacArthur sponsorship by B & Q cost them £2-£3million, media coverage of recent success generated an estimated £100million worth of exposure

Evaluating Integration To what extent is a campaign integrated? To what extent is a campaign integrated? Picton and Broderick talk about ‘levels of integration’ from tactical (e.g. ad hoc integration between one or two elements of the marcomms mix) to strategic – a holistic approach taken at the highest level Picton and Broderick talk about ‘levels of integration’ from tactical (e.g. ad hoc integration between one or two elements of the marcomms mix) to strategic – a holistic approach taken at the highest level Another approach is to evaluate in terms of element e.g. Another approach is to evaluate in terms of element e.g.

Evaluating Integration Promotional Mix Integration Promotional Mix Integration –Integrated objectives and activities at marcomms mix level Promotional/Marketing Mix Integration Promotional/Marketing Mix Integration –Through the line approach –Promotional activities integrated with the rest of the marketing mix

Evaluating Integration Creative Integration Creative Integration –Using creative themes/strategy across the marcomms tools –Clear positioning approach articulated and applied across marcomms mix and campaigns Information/database Information/database –Use at analysis and planning stages –Can be instrumental in implementing DM campaigns/activities

Evaluating Integration Intra-organisation Intra-organisation –Linking departments internally, ensuring customer focussed approach –Some organisations may treat e.g. marketing, sales, PR as separate functions (with objectives, budgets, staff etc) which will need co-ordinating Inter-organisation Inter-organisation –Integration of all external agencies working on marcomms e.g. advertising, sales promotion etc. –Developing a ‘virtual’ agency

Evaluating Integration Internal/external audience integration Internal/external audience integration –Internal audiences (e.g. staff) will see consumer facing communication so integration should work at this level too Corporate/product integration Corporate/product integration –Equally, product (marketing) and corporate communication will overlap in public’s minds Geographical Geographical –May be vital in global marketing situations to use common branding, themes etc, if not actual executions

Any Questions?