1. Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Chapter 18 Measuring the Effectiveness of the Promotional Program

2. Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Arguments for and Against Measuring Effectiveness Reasons to measure effectiveness Avoid costly mistakes Evaluate alternative strategies Increased advertising efficiency Determine if objectives are achieved Reasons effectiveness measures are not taken Costs involved Research problems Disagreement on what to test Objections of creative department Lack of time 2

3. Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. What, Where, and How to Test What to Test Source factors Message variables Media strategies Vehicle option source effect: Differential impact of an advertising exposure on the same audience depending on the media option used Budgeting decisions Where to Test Laboratory tests: People are brought to a particular location where they are shown ads and/or commercials Testing bias: People may scrutinize the ads much more closely than they would at home Field tests: Tests under natural viewing situations Carried out with the realism of noise, distractions, and the comforts of home How to Test Positioning Advertising Copy Testing (PACT): Improves the research used in preparing and testing ads by: Providing a better creative product for clients Controlling the cost of TV commercial 3

4. Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Testing Process  Concept generation and testing  Rough art, copy, and commercial testing  Pretesting of finished ads  Market testing of ads 4

5. Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Figure 18.5 - Weaknesses Associated with Focus Group Research 5

6. Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Types of Rough Art, Copy, and Commercial Tests  Comprehension and reaction tests: Assess the reaction an ad generates to ensure that it is not offensive  Consumer juries: Use consumers representative of the target market to evaluate the probable success of an ad 6

7. Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Limitations of the Consumer Juries Method  Consumer may become a self-appointed expert  Number of ads that can be evaluated is limited  Halo effect: Overall rating is influenced by the judgment on one or few characteristics of the ad  Preferences for types of advertising may overshadow objectivity 7

8. Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Figure 18.8 - Gallup & Robinson’s Impact System 8

9. Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Portfolio Tests  Expose a group of respondents to a portfolio consisting of control and test ads  Limitations  Factors other than advertising creativity and/or presentation may affect recall  Ability to recognize the ad when shown may be a better measure than recall 9

10. Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Readability Tests  Communications efficiency of the copy in a print ad is tested without reader interviews  Flesch formula: Assesses readability of a copy by determining the average number of syllables per 100 words  Limitations  Copy may become too mechanical  Direct input from receiver is not available 10

11. Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. New Print Pretesting Measures  PreTesting Groups’ People Reader methodology  Provides mocked-up magazines to consumers and measures their responsiveness to each ad  Uses hidden cameras to record behavior  Link  Uses a comprehensive set of diagnostic questions to evoke viewer reactions to the ads 11

12. Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Pretesting Finished Broadcast Ads Theatre testing-Participants are invited to view pilots of proposed TV programs Advantages Establish norms indicate how an add will fare against competition Brand preference measure is supported by actual sales results Disadvantages Artificial environment Contrived measure of brand preference, change is recognizable Group effect may influence a viewer’s reaction On-air test-Commercials are inserted into actual TV programs in certain markets. Recall: Number of persons able to recall the ad and/or its message 12

13. Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Physiological Measures  Indicate receiver’s involuntary response to the ad  Pupil dilation  Pupillometrics: Measures dilation and constriction of the pupils in response to stimuli  Galvanic skin response (GSR)  Electrodermal response (EDR): Measures the skin’s resistance or conductance to a small amount of current  Brain Waves  Electroencephalographic (EEG): Determine electrical frequencies in brain  Alpha activity: Degree of brain activation  Hemispheric lateralization: Distinguishes between alpha activity in the left and right sides of the brain  Brain scan imaging - Examine physiological reactions to ads and brands 13

14. Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Posttests of Print Ads Advantages of inquiry tests Implementation is inexpensive Provide some feedback about the general effectiveness of an ad or medium used Disadvantages of inquiry tests Inquiries may not be a true measure of the attention- getting or information- providing aspects of an ad Ineffective for comparing different versions or specific creative aspects of an ad 14

15. Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Posttests of Broadcast Commercials Advantages of day-after recall tests Natural setting provides a more realistic response profile Provide norms that allow advertisers to compare how well their ads are performing Persuasive and diagnostics measures are also available Disadvantages of day-after recall tests Have limited samples, high costs, and security issues Favor unemotional appeals Program content may influence recall Respondents are aware of the test and will be more attentive Recall is not a measure of acceptance or predictive of sales 15

16. Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Factors That Make or Break Tracking Studies Properly defined objectives Alignment with sales objectives Properly designed measuresConsistencyRandom samplesContinuous interviewing Evaluate measures related to behavior Critical evaluative questions asked early to eliminate bias 16

17. Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Factors That Make or Break Tracking Studies Measurement of competitors’ performanceSkepticism about questions asking where the ad was seenBuilding of news value into the studyMoving averages spot long-term trends and avoid seasonalityData reported in terms of relationshipsIntegration of key marketplace events with tracking results 17

18. Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Problems with Current Research Methods  Accomplishing some factors important to good copy testing require more effort  Most current methods do little more than provide recall scores  Lab measures - Artificial and vulnerable to testing effects  Field measures - Result in a loss of control 18

19. Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Essentials of Effective Testing  Establish communications objectives  Use a consumer response model  Use both pretests and posttests  Use multiple measures  Understand and implement proper research 19

20. Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Measuring the Effectiveness of Nontraditional Media Much less effective than claimed Shopping cart signage Measures are combined with sales tracking data to evaluate its effectiveness Ski resort-based media Software has been introduced to measure the effectiveness In-store radio and television Resources are available to measure impact of IMC elements Other media 20

21. Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Measuring the Effectiveness of Sponsorships Monitor the quantity and nature of the media coverage obtained for the sponsored event Estimate direct and indirect audiences Exposure methods Evaluate the awareness, familiarity, and preferences produced by sponsorship based on surveys Tracking measures 21