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Measuring the Effectiveness of the Promotional Program

McGraw-Hill/Irwin

2004 The McGraw-Hill Companies, Inc., All Rights Reserved.

Measuring the Effectiveness of the Promotional Program


Why to test What to test When to test Where to test How to test

Why to Test

Avoiding costly mistakes Evaluating alternatives strategies Increasing the efficiency of advertising in general Determining if objectives are achieved.

Why NOT to Test


Cost Research problem Disagreement on what to test The objections of creative Time

What to Test

Source factors: spokesperson. Message variables: message & means. Media strategies

Media decision Vehicle option source effect Scheduling: fighting vs. pulsing or continuous

Budgeting decisions

When to Test

Pretesting

Pros: feedback is relatively inexpensive. Cons: less effective than final ads; time delay. the current objective & the next objective Ex. Lowes

Posttesting

Where to Test

Laboratory tests

Pros: control. Cons: lack of realism testing bias. Pros: realism. Cons: lack of control; competitors; sabotage; take more time and money.

Field tests

How to Test

PACT (Positioning Advertising Copy Testing)


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


Concept generation testing Rough art, copy, and commercial testing Pretesting of finished Ads Market Testing of Ads

Concept Generation Testing Focus Group

A focus group is a gathering of 6 to 10 people who are invited to spend a few hours with a skilled moderator to discuss a product, service, organization, or other marketing entity. Useful exploratory step Avoid generalizing the reported feelings of the focus-group participants to the whole market.

Focus group research in progress

Rough Art, Copy, and Commercial Testing


Comprehension and reaction tests Consumer juries

Comprehension and Reaction Tests

Concerns: (1) whether the ad or commercial conveys the meaning intended; (2) the reaction the ad generates. Personal interview, group interview, focus groups.

Consumer Juries

Procedure Pros: control & cost effectiveness Cons:

The consumer may become a self-appointed expert. The number of ads that can be evaluated is limited. A halo effect is possible. Preferences for specific types of advertising may overshadow objectivity.

Pretesting of Finished Ads

Pretesting finished print messages


Portfolio tests Readability tests Dummy advertising vehicles Theater tests On-air tests Physiological measures

Pretesting finished broadcast Ads


Portfolio Tests

Procedure Assumption: ads that yield the highest recall are the most effective. Weaknesses

Many factors may affect recall, ex. testing bias, product interest and interviewer instruction. Recall may not be the best test.

Readability Tests

Flesh formula Consider: syllables, length, familiarity. Copy is best comprehended when sentences are short, words are concrete and familiar, and personal references are drawn. Pros: offer objective standard. Cons: too mechanical, no feedback, no creativity.

Dummy Advertising Vehicles


Procedure Pros: more real than the portfolio test. Cons: testing bias; product interest.

Theater Tests

Procedure Pros: control; the established norm; identify strong or weak commercials. Cons:

Too artificial Participants collaboration Group effect

On-Air Tests

Insertion in TV programs in specific markets Limitations are imposed by day-after recall Sources of measurement errors:

The position of the ad The adjacent program content The number of commercials shown

Physiological Measures

Pupil dilation Galvanic skin response Eye tracking Brain waves


Alpha activity Hemispheric lateralization

Physiological Test Measures


Pupil dilation
Instrument: pupilometer
Dilation associated with action Constriction indicates disinterest

Subject
Male Female Nude Female

Stimulus Object

Nude Male

Nude Infant

Physiological Test Measures


Galvanic skin response (GSR) [aka Electodermal response (EDR)]

GSR/EDR characteristics:
Sensitive to affective stimulation May present a picture of attention May measure long-term recall Useful in measuring effectiveness

Eye Movement Research


Objective:
To track eye movements to determine . . .
What readers read on print ads Where attention is focused in TV commercials

Method:
Eye movements are tracked using . . .
Fiber optics Digital data processing Advanced electronics Print ads and material Billboards Commercials

Scan paths on

Output:
Relationships among what is . . .
Seen Recalled Comprehended

Using EyeTracking to test ads

Using EyeTracking to Test Banner Ads

Many Internet users largely ignore banner ads. Static banner ads elicited no reactions in the traditional physiological measures and animated ads elicited a mild response, with both types being less effective than television advertising. Viewers eyes first went to the text on the news sites, ignoring graphics and ads, but they later viewed as many as 45 percent of the banners thought only for an average of one second.

Brain Wave Research


The electroencephalograph (EEG) Alpha activity
Degree of activation Alpha states associated with
Inactivity Resting Sleeping

Hemispheric lateralization
Distinguishes between activity in the: Left hemisphere of the brain
Processes visual stimuli

Right hemisphere of the brain


Processes verbal stimuli

Marketing Testing of Ads

Posttests of print ads

Posttests of broadcast commercials


Inquiry tests Recognition tests Recall tests

Day-after recall tests Persuasive measures Diagnostics Comprehensive measures Test marketing Single-source tracking studies Tracking print/broadcast ads

Inquiry tests measure the effectiveness based on inquires generated from ads appearing in various print media

Informal inquiry of customers, prospect Ads in successive issues, same medium Split-run tests, different ads, same medium Runs of same ad, different media

Ad Response Methods
Methods used frequently or very frequently by 2705 respondents
INDIRECT METHODS Return reader service cards Save ads for reference Discuss advertising products with others Pass ads on to others for possible action DIRECT METHODS Send back reply cards/coupons Contact vendors' websites Telephone manufacturers Telephone local distributors/reps Go to magazine websites Stop at vendors' trade show exhibits Discuss products with sales reps Send faxes to vendors Contact distributors' websites Send e-mail messages Mail notes to vendors
41% 35%

30%
26% 31% 28% 23% 22% 21% 20% 20% 17% 15% 10% 6%

0%

10%

20%

30%

40%

50%

Recognition tests (Starch Readership Report)


Noted Score percentage of readers who remember seeing the ad Seen-associated score percentage of readers who recall seeing or reading any part of the ad identifying the brand Read-most score percentage who report reading at least half of copy portion of ad

Purports to measure . . .
Pulling power of elements of the ads Effectiveness of competitors ads Comparison of alternative executions of ads Readership score indications of involvement

Critics identify potential problems . . .


False claiming of recognition Interviewer sensitivities and biases Low reliability and validity of scores

A Starch Scored Advertisement

Gallup-Robinson Magazine Impact Research Service - Magazines placed in homes and


respondents are asked to read them. A telephone interview is conducted a day later.
Measures: Proven Name registration percent who can accurately recall the ad Idea Communication number of sales/copy points they can recall Favorable buying attitude extent of favorable purchase reaction to brand or company

Recall Tests

Pros: readers involvement; distinctiveness of ads; test is not strong enough. Suggestive brand names Correlation between recall and recognition Ads with higher recall: likable, interesting, creative, larger.

Limitations of Recall Measure

Since recall tests best reflect the degree of attention and interest in an ad, claims that the tests predict the ads impact on sales may be going too far. Recall is a necessary but not sufficient measure. It is unwise to look to recall for an accurate assessment of commercials sales effect.

Day-After Recall Tests

The procedure is to telephone 150 to 300 program viewers the day after a television commercial appears. They are asked if they can identify the brand correctly, they are then given the product category and brand and asked if they recalled the commercial. They are then asked for anything they can recall about the commercial, what was said, what was shown, and what the main idea was.

Day-After Recall Tests

Cons

Limited samples, high costs, and security issues. DAR test may favor unemotional appeals. Program content may influence recall. A prerecruited sample may pay increased attention to the program and the ads.

Persuasive Measures

Taking a brand preference, purchaseintent or frequency of purchase measure when the video is delivered and then again the next day.

Diagnostics

Designed to garner viewers evaluations of ads, as well as how clearly the creative idea is understood and how well the proposition is communicated. Rational and emotional reactions to the ads are also examined.

IPSOS-ASIs Next*TV (Comprehensive Measures)

Objective:

To assist in testing commercials to determine:

Potential for impacting sales How ad contributes to brand equity How it aligns with existing ad strategies, objectives How to optimize effectiveness

Method:

Consumers view videotape programs in their homes Ads are imbedded in the programs Day-after recall and persuasion scores Purchase intent and frequency Brand equity differentiation Relevance, communication and reaction diagnostics

Output:

Test Marketing

Procedure Ex. Seagram & Time uses three years to measure the effects of advertising frequency on consumers buying habits. Cons: cost, time, competitors reaction.

Single-Source Tracking Studies

Track the behaviors of consumers from the television set to the supermarket checkout counter. Procedure Pros: control, ability to measure directly the ads effects on sales.

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