Measuring the Effectsof a Campaign

MKT 846

Professor West

Agenda

Measuring the Impact of IMC PACT Principles Testing Methods IMC Audit

General Thoughts

Accountability is a must in today’s business environment! Be prepared to demonstrate your worth

Gap analysis Is there a difference between what customers expect from

a brand (based on brand messages) and what they actually experience?

Is your marketing communications sending the right message?

General Thoughts

If you’ve done your homework then measuring effectiveness is easy Begins with objective setting Evaluation ultimately entails testing whether specified

objectives have been met Concept testing and concurrent testing allow you make

adjustments along the way and minimize the risk Predicting what communications efforts will succeed

or fail is a lot like picking stocks.

General Thoughts

Why do you evaluate a campaign? To determine if the strategy worked. If it didn’t, what went

wrong? To quantify and justify the return on investment. To make changes in the future.

When is it done? Risk & Reward

Measuring the Impact of IMC

What do we know about the effectiveness of IMP programs relative to the effectiveness of program elements?

Recent studies have begun to shed light on the interactive effect of communications methods.

Measuring the Impact of IMC

Tests of recall and memory of online and television advertising alone or in combination Design: 4 groups,

Ad exposure while visiting a web page on ESPN.com, Ad exposure during an episode of Who Wants to Be a Millionaire, Ad exposure while watching TV and visiting the web page, No exposure to the ad (control group)

Results: There was a synergistic effect when TV and online were used in

combination leading to a 9 percent gain in recall, a 48 percent increase in recognition of the online ads.

Conclusion: Online supports TV commercials and vice versa

(Online Publishers Association & IntelliQuest)

Measuring the Impact of IMC

Tests of recall and memory of online and television advertising alone or in combination Design:

Online exposure, TV exposure, Print exposure, a combination of exposures

Conclusion: Online supports TV and print ads

(Consortium: Microsoft, Marketing Evolution, ARF, and Unilever)

Measuring the Impact of IMC

Nextel When sales began to slide it sought to identify which MC

functions were producing the best returns Analysis revealed that web advertising had been the most

cost-effective in producing sales leads Budget allocation was revised and 100 percent of the

budget was allocated online (full-screen pop-ups, special offers…)

Increased the number of calling plans sold while reducing the cost per sales lead from $35 to $11

PACT Principles:

Provide measurements are relevant to the objectives of the advertising.

Require agreement about how the results will be used in advance of each specific test

Provide multiple measurements and look for convergence

Consider how people respond to communication

Marketing Communication Model

Basic Communication Model

Six key elements: Sender – the source of the message Message – the information being communicated either

verbally or nonverbally Receiver – the recipient of the message Common experiences (represented by the overlapping

fields of experience) – allows communication to occur. Feedback loop – the recipient’s response to the

message Noise – anything preventing the sender from getting

the message to the receiver or vice versa

Information Processing

McGuire Model Testing Ad Effectiveness

Expos

ure

Attent

ion

Compreh

ension

Acceptance/

Yielding

Purch

ase

Retention

Circulation,Reach

Listener

Recognition

Recall,Checkl

ists

Attitude,Purchase

Intent

Delayed

Recall

Scanner

Data

Hierarchy of Effects Models

Models:

Stages: AIDA DAGMARInnovation/Adoption

Information Processing

Think(Cognitive)

Attention Awareness

Knowledge

Awareness ExposureAttention

Comprehension

Feel(Affective)

Interest

Desire

LikingPreferenceConviction

Interest

Evaluation

Yielding

Retention

Do(Behavioral) Action Purchase

TrialAdoption Behavior

Persuasive CommunicationPersuasive Communication

Motivated to Process?•Involvement•Relevance, etc.

Motivated to Process?•Involvement•Relevance, etc.

Ability to Process?•Issue familiarity•Arousal, etc.

Ability to Process?•Issue familiarity•Arousal, etc.

Nature of Cognitive Processing

Mostly Mostly MostlyFavorable Unfavorable Neutral Thoughts Thoughts Thoughts

Nature of Cognitive Processing

Mostly Mostly MostlyFavorable Unfavorable Neutral Thoughts Thoughts Thoughts

Cognitive Structure Change•New cognitions adopted•Different responses

Cognitive Structure Change•New cognitions adopted•Different responses

Persuasion:enduring positiveattitude change

Persuasion:enduring positiveattitude change

Boomerang:enduring negative

attitude change

Boomerang:enduring negative

attitude change

Temporaryattitude shift

Temporaryattitude shift

Peripheral cue present?•Source characteristics•Visual imagery•Executional elements

Peripheral cue present?•Source characteristics•Visual imagery•Executional elements

RetainInitial attitude

RetainInitial attitude

Yes

Yes

Yes Yes

YesNo

No

No

No

The FCB Planning Grid

Thinking Feeling

High

Involvement

1. Informative (thinker)

Investments, House, AppliancesThink – Feel - Do

ImplicationsTest: Recall, DiagnosticsMedia: Long copy, reflective vehiclesExecution: Information, Demonstration

2. Affective (feeling)Jewelry, Cosmetics, Apparel, Sports CarFeel– Do – Think

ImplicationsTest: Attitude Change, ArousalMedia: Large space, Image specialsExecution: Impact

Low

Involvement

3. Habit Formation (doer)

Food, Household Items, CleanersDo – Think – Feel

ImplicationsTest: SalesMedia: Small spaces, 10 sec radio, POSExecution: Reminder

4. Self-Satisfaction (impulse)

Cigarettes, Liquor, Candy, MagazinesDo – Feel – Think

ImplicationsTest: SalesMedia: Billboards, Newspaper, POSExecution: Attention getting

PACT Principles:

Consider whether the advertising stimulus should be exposed more than once Do you remember how many exposures it takes to have

an impact? Consider the fact that finished copy can be more

soundly evaluated than rough copy, and require that alternative executions be tested in the same degree of finish Apples versus oranges problem

PACT Principles:

Provide controls to avoid biasing effects of exposure context Primacy and recency effects

Take into account basic considerations of sample definition Target audience, Geographic representation, Random

sampling, Demonstrate reliability and validity

Use experimental procedures

The Value of Pretesting (Concept testing)

McCollum Speilman Worldwide studied 4,637 on-air commercials used to build normative measures.

0

5

10

15

20

25

30

35

40

Failure Success

Not pretested

Pretested

Market Testing of Ads (Concurrent Testing)

Inquiry tests Measure ad effectiveness based on the number of

inquiries generated – web visits, coupons returned, phone calls, etc…

Split-run tests are used to compare different version of the ad or running the same ad in different media.

Market Testing of Ads (Concurrent Testing)

Recognition Tests Starch Ad Readership Report lets advertisers assess the

impact of an ad in a single issue of a magazine over time, or across different issues. Measures 25,000 ads in more than 400 issues across more than

100 magazines and newspapers per year.

The value of norms and measures of reliability make this a widely used means of testing.

Market Testing of Ads (Concurrent Testing)

Recall tests Gallup & Robinson MIRS (Magazine Impact Research

Service) and Burke Day-After-Recall Can be used to assess an ad’s impact on memory Once again, the normative value is very important

Suggestive brand names (Keller, Heckler, and Houston) Tend to facilitate recall of the brand benefits (initial brand

positioning) However, they inhibit recall of subsequent claims (more difficult to

introduce a new attribute at a later time). Jack-in-the-Box, Old Spice, Kentucky Fried Chicken, Oldsmobile

How are recognition and recall related?

NIPO Study (Netherland’s Institute of Public Opinion) The average correlation between recognition and recall of

print ads is very high (r = .95) Recall stems from recognition Likeable and interesting ads doubled recall scores Creative ads were more effective at enhancing preference

and recall than larger ads

Market Testing of Ads (Concurrent Testing)

Tracking Studies One of the most useful and adaptable forms of posttesting Involves taking measurements at regular intervals A standard set of questions is used

Brand Metrics: awareness, recognition, recall, brand perceptions, attitudes toward the ad and/or brand, purchase intention

Relationship Metrics: lifetime customer value, recency of purchase, frequency of purchase, monetary value, referral index, share of wallet

Sample sizes range from 250 – 500 cases per period Can be used to measure the differential impact of budget

size and scheduling as well as copy execution and media selection

Performance Measures (Evaluative Testing)

An effective campaign is one that meets or exceeds its objectives.

The more closely the objectives are aliened with sales and profit the better they are.

Remember, MC is only one of many elements of the mix that can impact sales. Others include: Product performance Pricing Distribution Competition

Performance Measures (Evaluative Testing)

Measuring performance requires baseline measures Tracking studies are very useful in establishing

baseline and performance measures

IMC Audit

Organization Infrastructure Is managing brand reputation and stakeholder

relationships a cross-functional responsibility? Are the strengths and weaknesses of all MC tools

considered? Is internal marketing utilized consistently and effectively? Do our agencies communicate with one another?

IMC Audit

Interactivity Does our media plan have a balance between mass and

interactive media? Is there facilitation of customer inquiries and complaints? Are customer databases being used to capture information

to facilitate relationship building? Are customer databases easily accessible and user-

friendly?

IMC Audit

Mission Marketing Is the organization’s mission evident in its MC plans? Does our mission provide a reason for customers to

believe our message and support the company? Are philanthropic efforts concentrated in one specific area?

IMC Audit

Strategic Consistency Are company-created brand messages strategically

consistent? Do we periodically review all brand messages for

consistency? Do we consider what brand message is being sent by our

pricing, distribution, product performance, and customer- service

IMC Audit

Planning and Evaluating Do we use SWOT analysis in MC planning? Are we using a zero-based approach? Are we fully leveraging intrinsic brand-contacts before

investing in new brand-contact points? Do we have a tracking study to monitor relationships with

customers and other stakeholders? Are we maximizing the unique strengths of various MC

functions? Is the overall objective of our MC program to create and

nourish profitable relationships with customers and stakeholders?