1. Evaluation of Effectiveness LECTURE-27

2. Chapter Questions  What are the common methods of measurements  The control and evaluation process  Evaluating Effectiveness  Stages of Copy Testing  Media Evaluation  Campaign and IMC Evaluation

3. Control and Evaluation  The strategy formulation and implementation processes are a prelude to control and evaluation. This process involves an examination of the organization’s performance for the purpose of determining: 1. How well the organization has done 2. What actions should be taken in the light of this performance.

4. Common Methods Of Measurement  Six of the most common methods of measurement used for control and evaluation purposes: 1. Return on investment (ROI) 2. Sales growth and/or market share 3. Costs 4. New product development 5. Relation ship with stakeholders 6. Management performance

5. The control and evaluation process

6. Evaluating Effectiveness Types and stages  Developmental research  Concurrent research  Post testing research  Diagnostic research  Factors to be evaluated  Communication effects  Sales impact  Copy-testing services  Developed norms for product categories

7. Stages of Copy Testing  Message strategy  Concept testing  Pretesting  Diagnostics

8. Stages of Copy Testing During Execution: Concurrent Testing  Tracking studies  Attitude tests  A favorable or unfavorable disposition toward a person, thing, idea, or situation.  Wave analysis  A series of interview during a campaign.  Consumer diaries  A group of representative consumers keep a diary during a campaign & record activities related to brand purchased & brand used.

9. Stages of Copy Testing During Execution: Concurrent Testing  Tracking studies  Pantry checks  A researcher goes to homes in the target market and asks what brands or products they have purchased or used recently.  Test marketing  Testing product variations, as well as elements of a finished ad, a campaign, or a media mix in two or more potential markets.

10. Posttesting: After Execution Research  Memory tests  The assumption that an advertisement leaves a mental residue with the person who has been exposed to it.  Recognition test  Recall test  Persuasion tests  The basic format is to ask consumers how likely they are to buy a specific brand.  Likability tests  Test used to check any of the method better able to predict sales impact.

11. Posttesting: After Execution Research  Inquiry tests  Measure the number of responses to an advertisement.  Scanner research  Scanner at the checkout to collect consumer information.  Single-source research  Use of electronic media, researchers are closer to showing a casual relationship between advertising and sales.

12. Media Evaluation  Evaluating audience exposure  Check estimates in media plan against vehicle performance  Critical evaluation is whether reach and frequency objectives were obtained

13. Media Evaluation  Evaluating audience exposure  Advertising ROI and Media efficiency  Return on investment  The cost of creating and running advertising vs. revenue it generates  Wearout  The point where the advertising gets no response or less response.  Media optimization

14. Campaign and IMC Evaluation Marketing Communication Evaluation  Direct response  Evaluate ads containing elements that can be returned by using direct- response counts

15. Campaign and IMC Evaluation Marketing Communication Evaluation Direct response Sales promotion  May be necessary to evaluate both trade and consumer promotions  Payout plan  Breakeven analysis

16. Campaign and IMC Evaluation Marketing Communication Evaluation  Direct response  Sales promotion  Public relations  Examine the success of the program in getting the message out to the target in terms of output and outcomes

17. Campaign and IMC Evaluation IMC Consistency  New discipline  Can be evaluated using IMC audit  Content analysis  The material produced by an organization.  Mystery shopping  Visit a retail store to observe and record interaction & communication pattern.  Phantom phone calls  Phone or email to observe and record interaction & communication pattern.

18. Campaign and IMC Evaluation Special Advertising Situations  Retail advertising  Generate store traffic  Simple counts  Visibility  Participation counts  Sign-up and fill-out forms  Loyalty  Participation counts

19. Campaign and IMC Evaluation Special Advertising Situations  Retail advertising  B2B advertising  Lead count based on calls, e-mails, and cards returned to the advertiser  Conversion rates

20. Campaign and IMC Evaluation Special Advertising Situations  Retail advertising  B2B advertising  International advertising  Evaluation should focus on pretesting  Helps correct major problems before miscommunication

21.  Marketing Management – A South Asian Perspective by Philip Kotler, Kevin Lane Keller, Abraham Koshy & Mithileshwar Jha, 13th Edition, Published by Pearson Education, Inc.  Advertising Principles & Practice by Wells, Moriarty & Burnett Published by Pearson Education, Inc.  Principles of Advertising & IMC by Tom Duncan 2 nd Edition, Published by McGraw-Hill Irwin.  Principles of Marketing by Philip Kotler & Gary Armstrong Thirteenth Edition, Published by Prentice Hall Bibliography

22. The End: “Leave everything a little better than you found it ”