Transcript Chapter 19
19 Measuring the Effectiveness of the Promotional Program McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved. Pros and Cons of 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 Objections of creatives Time Evaluating Alternative Strategies Measuring Effectiveness: Marketers’ Views Issue Agree MPM is a key priority for today’s technology companies. 90% I am dissatisfied with our ability to demonstrate marketing programs’ business impact and value. 80% It is important to define, measure, and take concrete steps in the area of advertising accountability. 61.5% I can forecast the impact on sales of a 10% cut in marketing spending. 37% Measuring Advertising Effectiveness What to test • • • • Source factors Message variables Media strategies Budget decisions How to test • Testing guidelines • Appropriate tests Where to test • Laboratory tests • Field tests When to test • Pretesting • Posttesting Pretesting Methods Laboratory Field Consumer Juries Dummy Ad Vehicles Portfolio Tests On-air Tests Physiological Measures Theater Tests Rough Tests Concept Tests Readability Tests Comprehension and Reaction Tests Posttesting Methods Recall Tests Association Measures Tracking Studies Methods SingleSource Systems Recognition Tests Inquiry Tests Posttesting the Value of a Sponsorship Test Your Knowledge Laboratory methods of testing for advertisement effectiveness generally offer high control but low _____. A) realism B) external validity C) costs D) generalization E) value Where to Test In the Field In the Lab Positioning Advertising Copy Test (PACT) 1. Provide measurements relevant to objectives of advertising 2. Require agreement on how results will be used 3. Provide multiple measures 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 same degree of finish 7. Provide controls to avoid biasing effects of exposure context 8. Take into account basic considerations of sample definition 9. Demonstrate reliability and validity Test Points 1.Concept Testing 2.Rough Testing Occurs at Various Stages 3.Finished art or commercial pretesting 4.Market testing (posttesting) 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 & evaluations 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 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 Rough Testing Terms Animatic Rough Terms Photomatic Rough Live-action Rough An Animatic Example from Airwalk *Click outside of the video screen to advance to the next slide Spot Resulting from Animatic Rough *Click outside of the video screen to advance to the next slide 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 homes Product interest may still bias results 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 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 reactions • Limitations are imposed by “day-after recall” • Physiological Measures Physiological Measures Galvanic skin response Pupil dilation Testing Brain waves Eye tracking Market Testing Print Ads Inquiry Tests Recognition Tests Testing Tracking Studies Recall Tests Starch-Scored Sports Illustrated Ad Posttests of Broadcast Commercials Day after recall tests Tracking studies Persuasive measures Diagnostics Testing Comprehensive measures Single-source tracking Test marketing Comprehensive Testing by Ipsos-ASI Problems With Current Research Methods Essentials of Effective Testing Use a consumer response model Establish communications objectives Testing Understand and implement proper research Use pretests and posttests Use multiple measures 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) Decide whether to use posttests or pretests E) Develop a consumer response model Measuring 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 Measuring Effectiveness + Efficiency