1. Part 5 Principle: IMC and Total Communication Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall 1-1

2. 1. Why is it important to evaluate brand communication effectiveness? 2. What role do campaign objectives play in the measurement of campaign success? 3. What are the key ways in which post-campaign evaluation is conducted? 4. What are some key challenges faced in evaluating IMC effectiveness? Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall1-2

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4. First things first: the campaign objectives  Typically, a brand communication campaign has multiple objectives.  For example, one (attitudinal) objective may be to change brand perceptions.  Another (behavioral) objective may be to make people engage in some way with the brand. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall1-4

5. First things first: the campaign objectives  Regardless of the number of objectives, the must be established up front, because they provide the all- important framework for evaluating whether a campaign was a success.  Campaign objectives and evaluation work hand in hand. In the absence of solid campaign objectives, evaluation becomes a much murkier task. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall1-5

6. The campaign purpose: brand building  Determining advertising’s impact on sales can be very difficult because of the impact of other environmental factors.  Sales are not the only reason brands advertise.  One of the major objectives of advertising is to create higher levels of brand awareness among consumers. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall1-6

7. The campaign purpose: brand building  Marketers intend their messages to accomplish a variety of goals.  Brand communication can be deemed successful when set objectives—attitudinal, behavioral, or both—have been met. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall1-7

8. Why evaluation matters  All campaigns require multiple, formal evaluation mechanisms.  These should be “planned in” to any campaign.  If you can’t measure it, you can’t manage it.  The sheer costs of brand communication demand evaluation in order to judge its effectiveness. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall1-8

9. How evaluation fits into the stages of brand communication testing  A complete understanding of the strength of your brand communication is accomplished through testing, monitoring and measurement.  The results of preliminary testing should be available before large sums of money are invested in finished work or media buys. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall1-9

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11.  How do we find out whether brand communication was effective?  How do we know whether the messaging worked?  Questions about impact are critical, and must be addressed. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall1-11

12. Brand messaging impact is measured in terms of communication effects—the mental responses to a message that serve as surrogate measures for sales impact. These can include: 1. Brand awareness 2. Knowledge of what a brand offers 3. Liking of a brand 4. Intent to purchase a brand Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall1-12

13. Experts in message evaluation  Many research companies specialize in measuring the various dimensions of effectiveness.  The most successful have conducted so many tests that they have developed norms for common product and service categories.  Norms allow planners to determine whether a message has performed above or below the category average in terms of “moving the needle.” Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall1-13

14. Tracking Studies  Conducted from the time a campaign is launched until after it has concluded.  Involves the collection of information from random samples of consumers who live in markets where they were exposed to a campaign. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall1-14

15. A beautifully done image for John West, a British beer, uses a simple photograph of the top of a can. It takes on new meaning when the can’s rings are associated with the rings in water from a fishing bobber. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall1-15

16. Scanner analysis  Many retail outlets use scanners to tally purchases and collect consumer buying information.  Scanner research is also used to see what type of sales spikes are crated when certain ads and promotions are used in a given market. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall1-16

17.  Using single-source research, advertising and brand purchase data come from the same households, linking advertising to sales.  The result is single-source data because brand communication exposure and brand purchasing data come from the same household source. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall1-17

18. Memory tests  In a recognition test, people are asked whether they remember having seen a message before.  In a recall test, respondents who have seen a message are asked to report what they remember from the ad about the brand. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall1-18

19. Inquiry tests These measure the number of responses to an advertisement or other form of brand communication. Examples: 1. Calls to a toll-free number 2. An e-mail or website visit 3. A coupon return 4. A visit to a dealer 5. An entry in a contest 6. A call to a salesperson Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall1-19

20.  Pacific Life uses an image of a leaping whale to reflect its image of a confident insurance company.  Is it effective?  Does it work? Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall1-20

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22.  IMC synergy exists when all campaign components work together to create a solid and understandable brand meaning.  The overarching campaign impact is strongest when the right mix of IMC tools is used.  Before overarching campaign synergy is measured, evaluation usually is conducted on a tool-by-tool basis. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall1-22

23.  Advertising can accomplish objectives including increased brand awareness, improved brand image.  The tracking study is the most common posttesting evaluation technique used to evaluate advertising. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall1-23

24.  Evaluation should be based on measurable objectives set at the beginning of campaign planning.  Practitioners typically track the impact of a public relations campaign in terms of successful output and outcome. As a class: What are some examples of outputs? Examples of outcomes? How do you know the difference? Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall1-24

25.  Sales promotion managers need to evaluate the impact of consumer, retailer, and other promotions.  A payout analysis compares the costs of a promotion to the forecasted sales generated by the promotion.  A break-even analysis determines the point at which the total cost of a promotion exceeds the total revenues generated. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall1-25

26.  Direct marketing mechanisms are the easiest IMC tools to evaluate in terms of message efficiency and in terms of return on marketing investment.  The primary objective of direct-marketing communication is to drive a transaction or generate some other type of immediate behavioral response, such as a donation or visit to a dealer. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall1-26

27. Evaluation of digital IMC components Performance indicators include: 1. Page views 2. Click-through rates 3. Cost per lead 4. Conversion rate Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall1-27

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29.  Advertising has little chance to be effective if no one sees it.  Key media questions: ◦ Did the plan actually achieve reach and frequency objectives? ◦ Did the newspaper and magazine placements run in positions expected and produce the intended GRP and CMP levels? ◦ Did the advertisers get what they paid for? Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall1-29

30. Media optimization  A major challenge in media planning is media efficiency—getting the most for the money invested.  Media planners operate with computer models of media optimization to make decisions about media selection, scheduling, and weights. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall1-30

31.  Verifying audience measurement estimates is a challenge.  Services including Experian Simmons, Arbitron, MediaMark provide data. As a class: How do you define “impact?” If audience members have been exposed to marketing communication, does it mean they have paid attention to it? Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall1-31

32.  Out-of-home media For outdoor, traffic counts don’t equal exposure.  Digital media Evaluation is complex. Analytic firms are developing more sophisticated evaluation programs.  Alternative media Even harder to measure; many obstacles remain. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall1-32

33. This outdoor board attracted attention because of its interesting visual and its challenging idea. Research based on traffic counts find it difficult to account for the emotional impact of messages like these. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall1-33

34. Newspaper readership measurement For newspapers and other traditional media, assessment is more straightforward. Newspapers measure their audiences in two ways: 1. Circulation or number of subscribers 2. Readership or number of readers Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall1-34

35. Magazine readership measurement  Rates are based on the guaranteed circulation that a publisher promises to provide.  Magazine circulation is the number of copies of an issue sold, not the readership of the publication.  Magazines also offer advertisers figures for their total audience. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall1-35

36. Measuring the broadcast audience  Coverage is similar to circulation for print media.  Ratings, as delivered by Arbitron, are re-visited post-campaign by marketers to ensure that the radio medium delivered.  For television, A. C. Nielsen data help advertisers understand the audience that a campaign actually delivered. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall1-36

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38. Measuring ROI  Advertisers continue to improve how they measure brand communication ROI.  How much spending is too much?  The best way to answer this question is to use test marketing. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall1-38

39. The synergy problem  Another challenge with evaluating campaigns is estimating the impact of synergy.  The most common way of measuring total impact is the brand tracking approach.  Planners must consider other messages and contact points beyond the brand communication campaign. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall1-39

40. The synergy problem As a class: Review “A Principled Practice: Can a Broken Guitar Really Hurt United?” How might the message effects be measured in this case? Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall1-40

41. Digital challenges  Marketers must start digital measurement planning with the desired business outcomes in mind.  Marketers must also develop the right digital key performance indicators.  Digital communication evaluation must be phrased so that broader business leaders can understand it. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall1-41

42. International challenges  International brand communication is difficult to evaluate because of market differences.  Evaluation should focus initially on pretesting to help head off major problems due to unfamiliarity with: ◦ different cultures ◦ languages ◦ consumer behaviors Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall1-42

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44. How should evaluation methods be matched to the original campaign objectives? Here’s an example from a recent UPS campaign:  Objective 1: Breaking through Awareness  Objective 2: Breaking the Inertia Trance  Objective 3: Breaking the Relevance Trance For details, see Chapter 19 of your text. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall1-44

45.  Advertisers continue to search for evaluation methods that bring all the individual metrics together to efficiently and effectively evaluate and predict brand communication effectiveness.  The ultimate goal is to arrive at holistic, cross- functional metrics that are relevant for integrated communication.  Many pieces are still missing in the evaluation of complex IMC programs. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall1-45

46. “Results of Colorado’s Gut Check”  More than 500,000 “gut checks” calculated on the LiveWell Colorado website.  More than 100,000 website visitors—a 540 percent increase compared to traffic prior to the campaign.  Facebook page attracted more than 16,000 fans, an increase of 13,000 before the campaign. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall1-46

47. “Results of Colorado’s Gut Check”  Most importantly, attitudes have shifted.  Coloradans gained a better understanding of obesity from before the campaign’s implementation.  Conclusion: Educational campaigns can increase public understanding of obesity as a personal health issue, and facilitate behavior change toward improved prevention of obesity. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall1-47