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

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

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Page 1: Measuring the Effectiveness of the Promotional Program © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Measuring the Effectiveness of the Promotional ProgramMeasuring the Effectiveness of the Promotional Program

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Page 2: Measuring the Effectiveness of the Promotional Program © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Marketer’s Views Toward Measuring Effectiveness

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Page 3: Measuring the Effectiveness of the Promotional Program © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

The objectives of creativeThe objectives of creativeThe objectives of creativeThe objectives of creative

Evaluate alternative strategies

Evaluate alternative strategies

Evaluate alternative strategies

Evaluate alternative strategies

Avoid costly mistakesAvoid costly mistakesAvoid costly mistakesAvoid costly mistakes

Increase efficiency in general

Increase efficiency in general

Increase efficiency in general

Increase efficiency in general

Disagreement on what to test

Disagreement on what to test

Disagreement on what to test

Disagreement on what to test

Reasons for and Against Measuring Effectiveness

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Research problemsResearch problems

Cost of measurementCost of measurement

Determine if objectives are achieved

Determine if objectives are achieved

TimeTime

AdvantagesAdvantages DisadvantagesDisadvantages

Research problemsResearch problems

Cost of measurementCost of measurement

Determine if objectives are achieved

Determine if objectives are achieved

Page 4: Measuring the Effectiveness of the Promotional Program © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Where to test• Laboratory tests• Field tests

Where to test• Laboratory tests• Field tests

When to test• Pretesting• Posttesting

When to test• Pretesting• Posttesting

Where to test• Laboratory tests• Field tests

Where to test• Laboratory tests• Field tests

When to test• Pretesting• Posttesting

When to test• Pretesting• Posttesting

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

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

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

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

Measuring Advertising Effectiveness

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Page 5: Measuring the Effectiveness of the Promotional Program © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

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

Comprehension and Reaction Tests

Pretesting Methods

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

LaboratoryLaboratory FieldField

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

Comprehension and Reaction Tests

Page 6: Measuring the Effectiveness of the Promotional Program © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Recall TestsRecall Tests

Inquiry TestsInquiry Tests

Association Measures

Association Measures

Single-Source Systems

Single-Source Systems

Tracking Studies

Tracking Studies

Recognition Tests

Recognition Tests

Recognition Tests

Recognition Tests

Inquiry TestsInquiry Tests

Single-Source Systems

Single-Source Systems

Association Measures

Association Measures

Recall TestsRecall Tests

Field Posttesting Methods

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

MethodsMethods

Page 7: Measuring the Effectiveness of the Promotional Program © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Posttesting the Value of a Sponsorship

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Page 8: Measuring the Effectiveness of the Promotional Program © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Test Your Knowledge

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

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

Page 9: Measuring the Effectiveness of the Promotional Program © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Positioning Advertising Copy Testing (PACT)

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

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

Page 10: Measuring the Effectiveness of the Promotional Program © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

3.Finished Art or Commercial Testing

3.Finished Art or Commercial Testing

3.Finished Art or Commercial Testing

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

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Occurs at Various Stages

Occurs at Various Stages

Page 11: Measuring the Effectiveness of the Promotional Program © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

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 target audienceAlternatives are exposed to consumers who match 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 target audienceAlternatives are exposed to consumers who match 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

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

ObjectiveObjective

MethodMethod

OutputOutput

Page 12: Measuring the Effectiveness of the Promotional Program © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Rough Art, Copy, and Commercial Testing

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Number of ads that can be evaluated is limited

Number of ads that can be evaluated is limited

Preference for ad types may overshadow objectivity

Preference for ad types may overshadow objectivity

Consumer may become a self-appointed expert

Consumer may become a self-appointed expert

A halo effect is possibleA halo effect is possible

Cost effectivenessCost effectiveness

Endorsements by independent third parties

Endorsements by independent third parties

Achievement of credibilityAchievement of credibility

Comprehension and Reaction TestsComprehension and Reaction Tests

Consumer JuriesConsumer Juries

ControlControl

AdvantagesAdvantages DisadvantagesDisadvantages

Number of ads that can be evaluated is limited

Number of ads that can be evaluated is limited

Consumer may become a self-appointed expert

Consumer may become a self-appointed expert

A halo effect is possibleA halo effect is possible

ControlControl

Cost effectivenessCost effectiveness

Endorsements by independent third parties

Endorsements by independent third parties

Achievement of credibilityAchievement of credibility

Comprehension and Reaction TestsComprehension and Reaction Tests

Page 13: Measuring the Effectiveness of the Promotional Program © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Photomatic RoughPhotomatic Rough

Animatic RoughAnimatic Rough

Live-action RoughLive-action Rough

Photomatic RoughPhotomatic Rough

Animatic RoughAnimatic Rough

Rough Testing Terms

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

TermsTerms

Page 14: Measuring the Effectiveness of the Promotional Program © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

An Animatic Example from Airwalk

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

*Click outside of the video screen to advance to the next slide

Page 15: Measuring the Effectiveness of the Promotional Program © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Resulting Spot from the Animatic Rough

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

*Click outside of the video screen to advance to the next slide

Page 16: Measuring the Effectiveness of the Promotional Program © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

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

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Readability Tests

Readability Tests

Portfolio Tests

Portfolio Tests

Dummy Advertising

Vehicles

Dummy Advertising

Vehicles

Distributed to random sample of homesDistributed to random sample of homes

Product interest may still bias resultsProduct interest may still bias results

Distributed to random sample of homesDistributed to random sample of homes

Page 17: Measuring the Effectiveness of the Promotional Program © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Test Your Knowledge

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

_____ 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

Page 18: Measuring the Effectiveness of the Promotional Program © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Theater TestsTheater Tests

•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

Theater TestsTheater Tests

Pretesting Finished Broadcast Ads

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Page 19: Measuring the Effectiveness of the Promotional Program © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Eye trackingEye tracking

Pupil dilationPupil dilation Galvanic skin response

Galvanic skin response

Brain wavesBrain waves Eye trackingEye tracking

Galvanic skin response

Galvanic skin responsePupil dilationPupil dilation

Physiological Measures

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

TestingTesting

Page 20: Measuring the Effectiveness of the Promotional Program © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Recall TestsRecall Tests

Inquiry TestsInquiry Tests Recognition Tests

Recognition Tests

Tracking StudiesTracking Studies Recall TestsRecall Tests

Recognition Tests

Recognition TestsInquiry TestsInquiry Tests

Market Testing Print Ads

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

TestingTesting

Page 21: Measuring the Effectiveness of the Promotional Program © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Starch-Scored Sports Illustrated Ad

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Page 22: Measuring the Effectiveness of the Promotional Program © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Test marketingTest marketing

Day after recall tests

Day after recall tests

Persuasive measures

Persuasive measures

DiagnosticsDiagnostics

Comprehensive measures

Comprehensive measures

Single-source tracking

Single-source tracking

Tracking studies

Tracking studies

Single-source tracking

Single-source tracking

Test marketingTest marketing

Comprehensive measures

Comprehensive measures

DiagnosticsDiagnostics

Persuasive measures

Persuasive measures

Day after recall tests

Day after recall tests

Market Testing Broadcast Commercials

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

TestingTesting

Page 23: Measuring the Effectiveness of the Promotional Program © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Comprehensive Testing by Ipsos-ASI

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Page 24: Measuring the Effectiveness of the Promotional Program © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Problems With Current Research Methods

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Page 25: Measuring the Effectiveness of the Promotional Program © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Use a consumer response modelUse a consumer response model

Use pretests and posttests

Use pretests and posttests

Use multiple measures

Use multiple measures

Understand and implement

proper research

Understand and implement

proper research

Establish communications

objectives

Establish communications

objectives

Establish communications

objectives

Establish communications

objectives

Use multiple measures

Use multiple measures

Use pretests and posttests

Use pretests and posttests

Use a consumer response modelUse a consumer response model

Essentials of Effective Testing

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

TestingTesting

Page 26: Measuring the Effectiveness of the Promotional Program © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Test Your Knowledge

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

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

Page 27: Measuring the Effectiveness of the Promotional Program © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Shopping cart signageShopping cart signage

Ski resort-based mediaSki resort-based media

In-store radio and televisionIn-store radio and television

Other mediaOther media

Shopping cart signageShopping cart signage

Ski resort-based mediaSki resort-based media

In-store radio and televisionIn-store radio and television

Other mediaOther media

Measuring the Effectiveness of Other Programs

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Non-traditional

media

Non-traditional

media

Sales promotions

Sales promotions

Sponsor-ships

Sponsor-ships

Exposure methodsExposure methods

Tracking measuresTracking measures

Exposure methodsExposure methods

Page 28: Measuring the Effectiveness of the Promotional Program © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Measuring the Effectiveness of Other IMC Program Elements

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin