Chap 18 - Measuring the effectiveness of a promotional program- BUAD471

Reasons to measure effectiveness

• Avoid costly mistakes

• Evaluate alternative strategies

• Increase advertising efficiency

• Determine if objectives are achieved

Reasons to not measure effectiveness

• Costs involved

• Research problems: difficult to isolate the contriibution of each marketing element

• Disagreement on what to test

• Creative department objections

• Lack of time

What to test

• Source factors: effectiveness of spokesperson used

• Message variables: message of content and how it is communicated

• Media strategies: which media class generates most positive results

• Vehicle option source effect: Impact of the same message depending on what vehicle is used

• Budgeting decisions

Pretests

Measures taken before the campaign is implemented. Exploring potential outcomes before major spending

Posttests

Occur after the ad or campaign has been in the field to evaluate what actually happened

Laboratory tests

People brought to a controlled location. Higher testing bias, people scrutinize ads more closely than at home.

Field tests

Tests under natural viewing conditions. Account for noise, distractions, repetition, competitve messages and program context.

Problems with lab measures

Artifical enviornments are vunerable to testing effects and bias

Problems with field measures

• Loss of experimental control

• Can require more effort

• Concerns about reliability and validity measures must extend to online and digital measures as well

Essentials of effective testing

• Establish communication objectives

• Use a consumer response model (base testing on how humans process and respond to stimuli)

• Use both pre and post tests

• Use multiple measures

• understand proper research design

Stages of ad development

1. Concept generation and testing

2. Rough art, copy and commercial testing

3. Pretesting finished ads

4. Market testing (posttesting)

Portfolio testing (print ad pretesting)

Expose respondents to a portfolio of control and test ads. Ads yielding highest recall considered most effective

Limitation: Factors other than ad quality may affect recall

Readability tests (print ad pretesting)

Assess copy efficiency using the flesch formula (average syllables per 100 words) Test copy without reader interviews.

Limitation: becomes mechanical, no direct receiver input

Theater testing (broadcast ad pretesting)

Participants view TV pilots, brand preference changes measured.

Advantage: established norms

Disadvantage: Artifical enviornment

On air tests (broadcast ad pretesting)

Commercials inserted into actual TV programs in test markets. Most common metric is recall.

A/B testing (broadcast ad pretesting)

Test two versions of an ad to determine which is more effective before full launch

Consumer juries

Use consumers representative of the target market ro evaluate probable ad success

Comprehension tests: does the ad convey intented meaning

Reaction tests: Ensure the ad is not offensive or misunderstood

Recall tests (posttesting)

Measure how well consumers remember an advertisement after exposure

Recognition tests (starch)

Determines recognition of print ads and reader involvement

Most common posttest of print ads

Inquiry tests

Measure effectiveness based on inquiries generated from the ad

Tracking studies

Measure the effects of advertising on awareness, recall, interest, attitudes toward the ad/brand, and purchase intentions over time

Test marketing

Measure advertising in specific representative test markets before releasing nationally

Advantage: realism

Disadvantage: Time consuming and effective

Measuring effectiveness of sales promotion

• Scanner data: Captures shoppers weekly transactions

• Awareness tracking studies: Montior awareness levels

• Sales tracking

• In store heat map sensors

Measuring effectiveness of nontraditional media

• Print vs online: measures effects on memory and behavior across each medium to compare effectiveness

• Parking lot based media: Measures ad impressions and advertising recall, combines with sales tracking

• In store radio and television

• Digital attribution

Measuring event sponsorship effectiveness

Exposure methods: Monitor quantity and nature of sponsored event media coverage. Estimate direct/indirect audiences

Tracking measures: Evaluate awareness, familiarity, and preferences produced by sponsorship based consumer surveys