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 targets 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 periods 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 ads 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
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

1. 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