Chapter 19 Measuring the Effectiveness of the Promotional Program © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Chapter 19Chapter 19Chapter 19Chapter 19

Measuring the Effectiveness of the Promotional Program

© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Today

Measuring Promotion Effectiveness Why do we measure the effectiveness of

promotion

Reasons for and Against Measuring EffectivenessReasons to MeasureReasons to Measure Reasons Reasons NotNot to Measure to Measure

Problems With ResearchProblems With Research

Creative ObjectionsCreative Objections

Cost of MeasurementCost of Measurement

Disagreement About What to Test


Avoid Costly MistakesAvoid Costly Mistakes

Evaluate StrategiesEvaluate Strategies

Increase Efficiency of Advertising in GeneralIncrease Efficiency of Advertising in General

Determine If Objectives Are Achieved


Problems With ResearchProblems With Research

Cost of MeasurementCost of Measurement



Avoid Costly MistakesAvoid Costly Mistakes

Evaluate StrategiesEvaluate Strategies

Increase Efficiency of Advertising in GeneralIncrease Efficiency of Advertising in General



Where to test• Laboratory tests• Field tests


When to test• Pretesting• Posttesting






What to test• Source factors• Message variables • Media strategies• Budget decisions


How to test• Testing guidelines• Appropriate tests

How to test• Testing guidelines• Appropriate tests



Measuring Advertising Effectiveness

On-air TestsOn-air Tests

Dummy Ad VehiclesDummy Ad VehiclesConsumer JuriesConsumer Juries

Portfolio TestsPortfolio Tests

Physiological MeasuresPhysiological Measures

Theater TestsTheater Tests

Rough TestsRough Tests

Concept TestsConcept Tests

Reliability TestsReliability Tests

Comprehension and Reaction Tests


Pretesting MethodsLaboratoryLaboratory FieldField

Dummy Ad VehiclesDummy Ad VehiclesConsumer JuriesConsumer Juries

Portfolio TestsPortfolio Tests

Physiological MeasuresPhysiological Measures


Rough TestsRough Tests

Concept TestsConcept Tests

Reliability TestsReliability Tests



High control but low generalizability

Recall TestsRecall Tests

Inquiry TestsInquiry Tests

Association Measures


Single-Source Systems


Tracking Studies

Tracking Studies

Recognition Tests

Recognition Tests

Recognition Tests

Recognition Tests

Inquiry TestsInquiry Tests






Field Posttesting Methods

MethodsMethods

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

3.Finished Art or Commercial Testing




1.Concept Testing1.Concept Testing

2.Rough Testing2.Rough Testing

4.Market Testing (Post-testing)

4.Market Testing (Post-testing)

2.Rough Testing2.Rough Testing

1.Concept Testing1.Concept Testing

The Testing Process

Occurs at Various Stages

Occurs at Various Stages

Qualitative And/or Quantitative Data Evaluating and Comparing Alternative ConceptsQualitative And/or Quantitative Data Evaluating and Comparing Alternative Concepts

Explores Consumers’ Responses to Ad Concepts Expressed in Words, Pictures, or SymbolsExplores Consumers’ Responses to Ad Concepts Expressed in Words, Pictures, or Symbols

Alternatives Are Exposed to Consumers Who Match the the Target AudienceAlternatives Are Exposed to Consumers Who Match the the Target Audience

Reactions and Evaluations Are Sought Through Focus Groups, Direct Questioning, Surveys, Etc.Reactions and Evaluations Are Sought Through Focus Groups, Direct Questioning, Surveys, Etc.

Sample Sizes Depend on the Number of Concepts and the Consensus of ResponsesSample Sizes Depend on the Number of Concepts and the Consensus of Responses

Explores Consumers’ Responses to Ad Concepts Expressed in Words, Pictures, or SymbolsExplores Consumers’ Responses to Ad Concepts Expressed in Words, Pictures, or Symbols

Alternatives Are Exposed to Consumers Who Match the the Target AudienceAlternatives Are Exposed to Consumers Who Match the the Target Audience

Reactions and Evaluations Are Sought Through Focus Groups, Direct Questioning, Surveys, Etc.Reactions and Evaluations Are Sought Through Focus Groups, Direct Questioning, Surveys, Etc.

Sample Sizes Depend on the Number of Concepts and the Consensus of ResponsesSample Sizes Depend on the Number of Concepts and the Consensus of Responses

Concept Testing

ObjectiveObjective

MethodMethod

OutputOutput

Rough Art, Copy, and Commercial Testing

Number of Ads That Can Be Evaluated Is Limited


Preference for Ads Types May Overshadow ObjectivityPreference for Ads Types

May Overshadow Objectivity

Consumer May Become a Self-appointed Expert


A Halo Effect Is PossibleA Halo Effect Is Possible

Cost EffectivenessCost Effectiveness

Endorsements by Independent Third Parties


Achievement of CredibilityAchievement of Credibility

Comprehension and Reaction TestsComprehension and Reaction Tests

Consumer JuriesConsumer Juries

ControlControl

AdvantagesAdvantages DisadvantagesDisadvantages





A Halo Effect Is PossibleA Halo Effect Is Possible

ControlControl

Cost EffectivenessCost Effectiveness



Achievement of CredibilityAchievement of Credibility

Comprehension and Reaction TestsComprehension and Reaction Tests

Photomatic RoughPhotomatic Rough

Animatic RoughAnimatic Rough

Live-action RoughLive-action Rough

Photomatic RoughPhotomatic Rough

Animatic RoughAnimatic Rough

Rough Testing Terms

TermsTerms

Based on Syllables Per 100 WordsBased on Syllables Per 100 Words

Other Factors Also ConsideredOther Factors Also Considered

A Laboratory MethodA Laboratory Method

Includes Test and Control AdsIncludes Test and Control Ads

Portfolio Test Have ProblemsPortfolio Test Have Problems

Based on Syllables Per 100 WordsBased on Syllables Per 100 Words

Other Factors Also ConsideredOther Factors Also Considered

A Laboratory MethodA Laboratory Method

Includes Test and Control AdsIncludes Test and Control Ads

Portfolio Test Have ProblemsPortfolio Test Have Problems

Pretesting Finished Print Ads

Readability Tests

Readability Tests

Portfolio Tests

Portfolio Tests

Dummy Advertising

Vehicles

Dummy Advertising

Vehicles

Based on Syllables Per 100 WordsBased on Syllables Per 100 Wordscreated including articles, and test and non-test adscreated including articles, and test and non-test ads


•Measures changes in product preferences

•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-by-

frame) reactions

•Measures changes in product preferences

•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-by-

frame) reactions

On-Air TestsOn-Air Tests

•Insertion in TV programs in specific markets

•Limitations are imposed by “day-after recall”

•Physiological Measures

•Insertion in TV programs in specific markets

•Limitations are imposed by “day-after recall”

•Physiological Measures


Pretesting Finished Broadcast Ads


Inquiry TestsInquiry Tests Recognition Tests

Recognition Tests

Tracking StudiesTracking Studies Recall TestsRecall Tests

Recognition Tests

Recognition TestsInquiry TestsInquiry Tests

Market Testing Print Ads

TestingTesting

Starch-Scored reflect.com Magazine Ad

+

Noted score– the percentage of readers who remember seeing the adSeen-associated score—the percentage who remember seeing or reading any part of the ad identifying the product or brandRead most score—the percentage of readers who report reading at least half of the copy portion of the ad.

The Reflect.com ad did well in the first of these two categories, but not as well (10%) in the read most categories.

Starch-Scored Nature’s Accents Ad

+

Natures Accents did well on the noted and advertiser associated measures, particularly in respect to the Reflect.com ad shown in the previous slide

Test MarketingTest Marketing

Day After Recall TestsDay After

Recall TestsPersuasive Measures

Persuasive Measures

DiagnosticsDiagnostics

Comprehensive Measures


Single-source Tracking


Tracking Studies

Tracking Studies



Test MarketingTest Marketing



DiagnosticsDiagnostics

Persuasive Measures

Persuasive Measures

Day After Recall TestsDay After

Recall Tests

Market Testing Broadcast Commercials

TestingTesting

Comprehensive Testing by Ipsos-ASI

+

Ipsos-ASI provides a variety of research services for print and broadcast measurement, including diagnostics and comprehensive measures

Use a Consumer Response ModelUse a Consumer Response Model

Use Pretests and Posttests


Use Multiple Measures


Understand and Implement

Proper Research

Understand and Implement

Proper Research

Establish Communications

Objectives


Objectives


Objectives


Objectives





Use a Consumer Response ModelUse a Consumer Response Model

Essentials of Effective Testing

TestingTesting

Chapter 20Chapter 20

International Advertising and Promotion

© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Barca's most difficult game is about to begin

Competition Has Become Global and Marketers Must Be Able to Compete Globally

Competition Has Become Global and Marketers Must Be Able to Compete Globally

International Markets Offer Growth Opportunities for Many Companies


Many Companies Rely on Foreign Markets to Survive, Particularly Those With Small Domestic Markets


Domestic Markets for Many Products and Services Are Stagnant








Reasons for the Importance of International Markets

Markets such as China offer strong growth opportunities for many companies

+

EconomicEnvironmentEconomic

Environment

DemographicEnvironment


CulturalEnvironment

CulturalEnvironment

CulturalEnvironment

CulturalEnvironment

EconomicEnvironmentEconomic

Environment



The International Environment

InternationalMarketing

And

PromotionalDecisions

InternationalMarketing

And

PromotionalDecisions

Political/LegalEnvironment

Political/LegalEnvironment

International Economic Environment

Economic environment

• Stage of economic development• Economic infrastructure• Standard of living• Per capita income• Distribution of wealth• Currency stability• Exchange rates


• Stage of economic development• Economic infrastructure• Standard of living• Per capita income• Distribution of wealth• Currency stability• Exchange rates

International MarketingAnd Promotional Decisions


International Cultural Environment

Cultural environment

• Language• Lifestyles• Values• Norms and customs• Ethics and moral standards• Taboos

Cultural environment

• Language• Lifestyles• Values• Norms and customs• Ethics and moral standards• Taboos



International Demographic Environment


• Size of population• Number of households• Household size• Age distribution• Occupation distribution• Education level• Employment rate• Income level


• Size of population• Number of households• Household size• Age distribution• Occupation distribution• Education level• Employment rate• Income level



International Political/Legal Environment

Political/legal environment

• Government policies• Laws and regulations• Political stability• Nationalism• Attitudes toward multinational

companies

Political/legal environment

• Government policies• Laws and regulations• Political stability• Nationalism• Attitudes toward multinational

companies



Global Marketer’s Dilemma

Should we offer the same product,

marketing, and advertising

throughout the world?

Should we adapt the product, marketing, and advertising to each of

several societies throughout the world?

Lower Costs With Less in Planning and Control Lower Costs With Less in Planning and Control

Global Marketing and Advertising Advantages

Economies of Scale in Production, Distribution Economies of Scale in Production, Distribution

Lower Advertising and Production Costs Lower Advertising and Production Costs

Ability to Exploit Good Ideas Worldwide Ability to Exploit Good Ideas Worldwide

Ability to Introduce Products Quickly, Worldwide Ability to Introduce Products Quickly, Worldwide

Consistent International Brand, Company Identity Consistent International Brand, Company Identity

Simplification of Coordination and Control Simplification of Coordination and Control

Lower Costs With Less in Planning and Control Lower Costs With Less in Planning and Control

Economies of Scale in Production, Distribution Economies of Scale in Production, Distribution

Lower Advertising and Production Costs Lower Advertising and Production Costs

Ability to Exploit Good Ideas Worldwide Ability to Exploit Good Ideas Worldwide

Ability to Introduce Products Quickly, Worldwide Ability to Introduce Products Quickly, Worldwide

Consistent International Brand, Company Identity Consistent International Brand, Company Identity

Gillette Used Global Advertising to Launch the Mach3

Legal Restrictions May Make It Difficult to Develop an Effective Universal Appeal

Legal Restrictions May Make It Difficult to Develop an Effective Universal Appeal

Media Availability or Usage May Vary by Country or Region


Consumers Needs and Usage Patterns Often Vary by Country or Region


Differences in Culture, Market and Economic Conditions Make It Difficult to Use Global Advertising








Problems With Global Advertising

Brands can be adopted for visual appeal, avoiding problems of translating words into many languages


Brands promoted with image campaigns playing to universal appeals such as sex or wealth


High-tech products, new to the world, not steeped in the cultural heritage of the country of origin


Products with with a nationalistic flavor if the country has a favorable reputation in the field


Products appealing to a market segment with universally similar tastes, interests, needs, and values

Products appealing to a market segment with universally similar tastes, interests, needs, and values









When is Globalization Appropriate

Globalization Often Works

Best For:

Globalization Often Works

Best For:

Saab used a global campaign since its customers are similar around the world

+

+

British Airways Uses Global Advertising

Standardizing Products


“Think Globally, Act Locally”


Localizing Ad Messages


Differences in Language




Differences in Market Conditions


Differences in Cultural












Global Products, Local Messages

An In-between ApproachAn In-between Approach

Adapt Messages to Respond ToAdapt Messages to Respond To

Use of Pattern Advertising

Use of Pattern Advertising

Continental Airlines Used Pattern Advertising to Promote Its Businessfirst Class

++

International Media Selection Issues

Widely Differing Characteristics

Widely Differing Characteristics

CostCost

CoverageCoverage

RestrictionsRestrictions

AvailabilityAvailability

QualityQuality

Media Information Problems

Media Information Problems

CostCost

ReliabilityReliability

CirculationCirculation

AudienceAudience

AvailabilityAvailabilityCostCost

CoverageCoverage

RestrictionsRestrictions

AvailabilityAvailability

QualityQuality

International Media Provide Broad Coverage

+

Market MaturityMarket Maturity

Trade StructureTrade Structure

Economic DevelopmentEconomic Development

Consumer PerceptionsConsumer Perceptions

RegulationsRegulations

Trade StructureTrade Structure

Consumer PerceptionsConsumer Perceptions

Market MaturityMarket Maturity

Economic DevelopmentEconomic Development

Foreign Market Sales Promotion Programs

Major Creation ConsiderationsMajor Creation Considerations

Documents

Chapter 19 Measuring the Effectiveness of the Promotional Program © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin