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Chapter 17 Measuring The Effectiveness of Integrated Marketing Communications Objectives • To understand reasons for measuring promotional program effectiveness • To know the various measures used in assessing promotional program effectiveness Chapter 17 : Measuring the Effectiveness of IMC Objectives • To evaluate alternative methods for measuring promotional program effectiveness • To understand the requirements of proper effectiveness research Chapter 17 : Measuring the Effectiveness of IMC The Measuring Advertising Effectiveness Debate • Reasons for measuring advertising effectiveness • Reasons for not measuring advertising effectiveness Chapter 17 : Measuring the Effectiveness of IMC Reasons for Measuring Advertising Effectiveness 1. Avoiding costly mistakes – – – Understanding how well money is being spent Opportunity loss due to poor communications Measuring the effectiveness of poor communications Chapter 17 : Measuring the Effectiveness of IMC Reasons for Measuring Advertising Effectiveness 2. Evaluating alternative strategies – Which strategy is most effective 3. Increasing the efficiency of advertising in general – Problem with losing sight of the message and expecting the audience to understand Chapter 17 : Measuring the Effectiveness of IMC Reasons for Not Measuring Advertising Effectiveness 1. Cost • • Timing Proper spending to gain increased exposure on the right message 2. Research problems • Isolating the effects of promotional elements Chapter 17 : Measuring the Effectiveness of IMC Reasons for Not Measuring Advertising Effectiveness 3. Disagreement on what to test • Different objectives for stages in PLC, industry and different people in the firm 4. The objections of creative • • The more creative an ad, the more successful Testing impairs creativity Chapter 17 : Measuring the Effectiveness of IMC Decisions for Measuring Advertising Effectiveness • What to test • When to test • Where to test Chapter 17 : Measuring the Effectiveness of IMC What to Test • Creative decisions – The creative theme/idea can be tested – To see the reaction and different message appeals of the target audience – Reinforcing the brand position in the target’s mind – Using a variety of creative tools Chapter 17 : Measuring the Effectiveness of IMC What to Test • Media decisions – Using research to determine the most effective media vehicle – Vehicle option source effect • People perceive ads differently depending on their context – Evaluating Flighting v. Pulsing or continuous scheduling Chapter 17 : Measuring the Effectiveness of IMC What to Test • Budgeting decisions – Examining the effect of budget size on advertising – Sales are not an indicator of effectiveness because they ignore the other elements of the marketing mix Chapter 17 : Measuring the Effectiveness of IMC When to Test • Pretest – Taken before the campaign is implemented – Can occur at any time from idea generation to final implementation – Feedback is relatively inexpensive with pretesting – Potential that message may not be communicated as effectively as the final product Chapter 17 : Measuring the Effectiveness of IMC When to Test • Post – Designed to : • 1. Determine if the campaign is accomplishing its predetermined objectives • 2. Serve as input into the next period’s situational analysis Chapter 17 : Measuring the Effectiveness of IMC Where to Test • Laboratory tests – Advantage is control by the researcher – Disadvantage is the lack of realism, testing bias • Field tests – Tests of the ad or commercial under natural viewing circumstances Chapter 17 : Measuring the Effectiveness of IMC Methods of Measuring Advertising Effectiveness • Concept generation and testing • Rough art, copy, and commercial testing • Pretesting of finished ads • Market testing of ads Chapter 17 : Measuring the Effectiveness of IMC Concept Generation and Testing • Concept testing – Conducted early in campaign development – To explore the targeted consumers response to a potential ad or campaign • i.e. Focus groups and mall intercepts Chapter 17 : Measuring the Effectiveness of IMC Rough Art, Copy, and Commercial Testing 1. Comprehension and reaction tests • Conveying meaning intended by assessing responses 2. Consumer juries • Uses consumers to evaluate the probable success of an ad • • • • Self-appointed expert Limited evaluation of the number of ads Halo effect Specific ad preferences overshadowing objectivity Chapter 17 : Measuring the Effectiveness of IMC Establishing a Program for Measuring Advertising Effectiveness • Problems with current research methods – Requiring two similar measures to ensure reliability – Tests should use the target audience to assess an ad’s effectiveness – Consistency in reliability and validity Chapter 17 : Measuring the Effectiveness of IMC Establishing a Program for Measuring Advertising Effectiveness • Essentials of effective testing – – – – – Establish communications objectives Use a consumer response model Use both pretests and posttests Use multiple measures Understand and implement proper research Chapter 17 : Measuring the Effectiveness of IMC Measuring the Effectiveness of Other IMC Tools • Sales Promotion effectiveness – Four advertising applications/communication goals: attention, comprehension, persuasion, and purchase – Assessing the attention, cognitive and emotional responses – Measurement of switching and loyalty Chapter 17 : Measuring the Effectiveness of IMC Measuring the Effectiveness of Other IMC Tools • Public Relation Effectiveness: evaluation tells management 1. How to assess what has been achieved through public relations activities How to measure PR achievements quantitatively How to judge the quality of PR achievements and activities 2. 3. Chapter 17 : Measuring the Effectiveness of IMC Measuring the Effectiveness of Other IMC Tools • Public Relation Effectiveness – – – – – – Measuring the effectiveness of PR Management by objectives Matching objectives and results Personal observation and reaction Public opinion and surveys Internal and external audits Chapter 17 : Measuring the Effectiveness of IMC Measuring the Effectiveness of Other IMC Tools • Direct Marketing Effectiveness – For direct marketing programs that do not have an objective of generating an immediate behavioral response, traditional measures of advertising effectiveness can be applied Chapter 17 : Measuring the Effectiveness of IMC Measuring the Effectiveness of Other IMC Tools • Internet Marketing Effectiveness – Exposure measures • • • • • • Hits Viewers Unique Visitors Clicks (click-throughs) Click-through rate Impressions/Page views Chapter 17 : Measuring the Effectiveness of IMC Internet Marketing Effectiveness • Processing and communication effects measures – Online Measuring – Recall and Retention – Non-Response – Surveys – Panels – Sales – Tracking Chapter 17 : Measuring the Effectiveness of IMC