Evaluation of Effectiveness

LECTURE-27

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

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.

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

The control and evaluation process

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

Stages of Copy Testing

Message strategy

Concept testing

Pretesting

Diagnostics

Stages of Copy TestingDuring 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.

Stages of Copy TestingDuring 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.

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.

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.

Media Evaluation

Evaluating audience exposure

Check estimates in media plan against vehicle performance

Critical evaluation is whether reach and frequency objectives were obtained

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

Campaign and IMC EvaluationMarketing Communication Evaluation

Direct response Evaluate ads containing elements that can be returned by using direct-response counts

Campaign and IMC EvaluationMarketing Communication Evaluation

• Direct response

• Sales promotion

May be necessary to evaluate both trade and consumer promotions

Payout plan

Breakeven analysis

Campaign and IMC EvaluationMarketing 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

Campaign and IMC EvaluationIMC 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.

Campaign and IMC EvaluationSpecial Advertising Situations

Retail advertising Generate store traffic Simple counts

Visibility Participation counts Sign-up and fill-out

forms

Loyalty Participation counts

Campaign and IMC EvaluationSpecial Advertising Situations

Retail advertising

B2B advertising

Lead count based on calls, e-mails, and cards returned to the advertiser

Conversion rates

Campaign and IMC EvaluationSpecial Advertising Situations

Retail advertising

B2B advertising

International advertising

Evaluation should focus on pretesting

Helps correct major problems before miscommunication

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 2nd Edition, Published by McGraw-Hill Irwin.

Principles of Marketing by Philip Kotler & Gary Armstrong Thirteenth Edition, Published by Prentice Hall

Bibliography

The End:

“Leave everything a little better than you found it ”