Transcript Ch. 19 and 20

Chapter 19
Measuring the Effectiveness of the
Promotional Program
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Today
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Measuring Promotion Effectiveness
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Why do we measure the effectiveness of
promotion
Reasons for and Against Measuring
Effectiveness
Reasons to Measure
Reasons Not to Measure
Avoid Costly Mistakes
Cost of Measurement
Evaluate Strategies
Problems With Research
Increase Efficiency of
Advertising in General
Disagreement About What
to Test
Determine If Objectives
Are Achieved
Creative Objections
Measuring Advertising
Effectiveness
What to test
Where to test
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Source factors
Message variables
Media strategies
Budget decisions
How to test
• Testing guidelines
• Appropriate tests
• 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
Reliability Tests
Comprehension and
Reaction Tests
High control but
low generalizability
Field Posttesting Methods
Recall Tests
Tracking
Studies
Association
Measures
Methods
Recognition
Tests
Single-Source
Systems
Inquiry Tests
Positioning Advertising Copy Testing
(PACT)
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
The Testing Process
1.Concept Testing
2.Rough Testing
Occurs at
Various Stages
3.Finished Art or
Commercial Testing
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 the Target Audience
Method
Reactions and Evaluations Are 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
TestingComprehension 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 Ads Types
May Overshadow Objectivity
Rough Testing Terms
Animatic Rough
Terms
Photomatic Rough
Live-action Rough
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
created
including
articles,
and
test
Based on
Syllables
Per 100
Words
and non-test ads
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 (frame-byframe) reactions
• Limitations are imposed by
“day-after recall”
• Physiological Measures
Market Testing Print Ads
Inquiry Tests
Recognition Tests
Testing
Tracking Studies
Recall Tests
Starch-Scored reflect.com Magazine Ad
Noted score– the percentage of
readers who remember seeing the
ad
Seen-associated score—the
percentage who remember seeing
or reading any part of the ad
identifying the product or brand
Read most score—the
percentage of readers who report
reading at least half of the copy
portion of the ad.
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The Reflect.com ad did well in the
first of these two categories, but not
as well (10%) in the read most
categories.
Starch-Scored Nature’s Accents Ad
Natures Accents did
well on the noted and
advertiser associated
measures, particularly in
respect to the
Reflect.com ad shown
in the previous slide
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Market Testing Broadcast
Commercials
Day After
Persuasive
Recall Tests
Tracking
Studies
Measures
Diagnostics
Testing
Comprehensive
Measures
Single-source
Tracking
Test Marketing
Comprehensive Testing by Ipsos-ASI
Ipsos-ASI provides a
variety of research
services for print and
broadcast
measurement,
including diagnostics
and comprehensive
measures
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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
Chapter 20
International Advertising and
Promotion
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Barca's most difficult game is about to begin
Reasons for the Importance of
International Markets
Domestic Markets for Many
Products and Services Are Stagnant
Many Companies Rely on Foreign Markets to Survive,
Particularly Those With Small Domestic Markets
International Markets Offer
Growth Opportunities for Many Companies
Competition Has Become Global and
Marketers Must Be Able to Compete Globally
Markets such as China offer strong growth
opportunities for many companies
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The International Environment
Economic
Environment
Cultural
Environment
International
Marketing
And
Promotional
Decisions
Demographic
Environment
Political/Legal
Environment
International Economic Environment
Economic environment
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Stage of economic development
Economic infrastructure
Standard of living
Per capita income
Distribution of wealth
Currency stability
Exchange rates
International Marketing
And Promotional Decisions
International Cultural Environment
Cultural environment
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Language
Lifestyles
Values
Norms and customs
Ethics and moral standards
Taboos
International Marketing
And Promotional Decisions
International Demographic Environment
International Marketing
And Promotional Decisions
Economic environment
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Size of population
Number of households
Household size
Age distribution
Occupation distribution
Education level
Employment rate
Income level
International Political/Legal Environment
International Marketing
And Promotional Decisions
Political/legal environment
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Government policies
Laws and regulations
Political stability
Nationalism
Attitudes toward multinational
companies
Global Marketer’s Dilemma
Should we offer
the same
product,
marketing, and
advertising
throughout the
world?
Should we adapt the
product, marketing, and
advertising to each of
several societies
throughout the world?
Global Marketing and Advertising Advantages
Economies of Scale in Production, Distribution
Lower Costs With Less in Planning and Control
Lower Advertising and Production Costs
Ability to Exploit Good Ideas Worldwide
Ability to Introduce Products Quickly, Worldwide
Consistent International Brand, Company Identity
Simplification of Coordination and Control
Gillette Used Global Advertising to Launch the
Mach3
Problems With Global Advertising
Differences in Culture, Market and Economic
Conditions Make It Difficult to Use Global Advertising
Consumers Needs and Usage
Patterns Often Vary by Country or Region
Media Availability or Usage May
Vary by Country or Region
Legal Restrictions May Make It
Difficult to Develop an Effective Universal Appeal
When is Globalization Appropriate
Brands can be adopted for visual appeal,
avoiding problems of translating words
into many languages
Brands promoted with image campaigns
playing to universal appeals such as sex
or wealth
Globalization
Often Works
Best For:
High-tech products, new to the world,
not steeped in the cultural heritage of
the country of origin
Products with with a nationalistic flavor
if the country has a favorable reputation
in the field
Products appealing to a market segment
with universally similar tastes, interests,
needs, and values
Saab used a global campaign since its
customers are similar around the world
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British Airways Uses Global Advertising
Global Products, Local Messages
An In-between Approach
Standardizing
Products
Localizing Ad
Messages
“Think Globally, Act
Locally”
Adapt Messages to Respond To
Differences in
Language
Differences in
Cultural
Use of Pattern
Advertising
Differences in
Market Conditions
Continental Airlines Used Pattern Advertising
to Promote Its Businessfirst Class
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International Media Selection Issues
Quality
Coverage
Widely Differing
Characteristics
Restrictions
Availability
Availability
Reliability
Circulation
Audience
Cost
Cost
Media
Information
Problems
International Media Provide Broad Coverage
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Foreign Market Sales Promotion Programs
Major Creation
Considerations
Economic Development
Market Maturity
Consumer Perceptions
Trade Structure
Regulations