Measuring the Effectiveness of the Promotional Program 2007

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

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

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

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

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

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

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

Test Your Knowledge 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 © 2007 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

Positioning Advertising Copy Testing (PACT) 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 © 2007 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

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

Concept Testing Objective Explores consumers’ responses to ad concepts expressed in words, pictures, or symbols Alternatives are exposed to consumers who match the target audience Method 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 Output Qualitative and/or quantitative data evaluating and comparing alternative concepts © 2007 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

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

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

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

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

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

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

Pretesting Finished Broadcast Ads Theater Tests On-Air Tests • Measures changes in product preferences • Insertion in TV programs in specific markets • 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-byframe) reactions • Limitations are imposed by “day-after recall” • Physiological Measures © 2007 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

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

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

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

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

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

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

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

Test Your Knowledge 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 © 2007 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

Measuring the Effectiveness of Other Programs Sales promotions Shopping cart signage Nontraditional media Ski resort-based media In-store radio and television Other media Sponsorships Exposure methods Tracking measures © 2007 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

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