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Measuring the Effectiveness of the Promotional Program © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Marketer’s Views Toward Measuring Effectiveness © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Reasons for and Against 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 The objectives of creative Time © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Measuring Advertising Effectiveness What to test • • • • Where to test Source factors Message variables Media strategies Budget decisions How to test • Laboratory tests • Field tests When to test • Testing guidelines • Appropriate tests • Pretesting • Posttesting © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 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 © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Field Posttesting Methods Recall Tests Tracking Studies Association Measures Methods Recognition Tests Single-Source Systems Inquiry Tests © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Posttesting the Value of a Sponsorship © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 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 © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin The Testing Process 1.Concept Testing 2.Rough Testing Occurs at Various Stages 3.Finished Art or Commercial Testing 4.Market Testing (Posttesting) © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 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 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 © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 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 © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Rough Testing Terms Animatic Rough Terms Photomatic Rough Live-action Rough © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 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 of homes Product interest may still bias results © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 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 © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Physiological Measures Galvanic skin response Pupil dilation Testing Eye tracking Brain waves © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Market Testing Print Ads Inquiry Tests Recognition Tests Testing Tracking Studies © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Recall Tests Starch-Scored Sports Illustrated Ad © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Market Testing Broadcast Commercials Day after recall tests Tracking studies Persuasive measures Diagnostics Testing Comprehensive measures Single-source tracking Test marketing © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Comprehensive Testing by Ipsos-ASI © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Problems With Current Research Methods © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Essentials of Effective Testing Use a consumer response model Establish communications objectives Use pretests and posttests Testing Understand and implement proper research Use multiple measures © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Measuring the 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 © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Measuring the Effectiveness of Other IMC Program Elements © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin