Chapter 19 Chapter 19 Measuring the Effectiveness of the Promotional Program © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Jan 20, 2016
Chapter 19Chapter 19Chapter 19Chapter 19
Measuring the Effectiveness of the Promotional Program
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Today
Measuring Promotion Effectiveness Why do we measure the effectiveness of
promotion
Reasons for and Against Measuring EffectivenessReasons to MeasureReasons to Measure Reasons Reasons NotNot to Measure to Measure
Problems With ResearchProblems With Research
Creative ObjectionsCreative Objections
Cost of MeasurementCost of Measurement
Disagreement About What to Test
Disagreement About What to Test
Avoid Costly MistakesAvoid Costly Mistakes
Evaluate StrategiesEvaluate Strategies
Increase Efficiency of Advertising in GeneralIncrease Efficiency of Advertising in General
Determine If Objectives Are Achieved
Determine If Objectives Are Achieved
Problems With ResearchProblems With Research
Cost of MeasurementCost of Measurement
Disagreement About What to Test
Disagreement About What to Test
Avoid Costly MistakesAvoid Costly Mistakes
Evaluate StrategiesEvaluate Strategies
Increase Efficiency of Advertising in GeneralIncrease Efficiency of Advertising in General
Determine If Objectives Are Achieved
Determine If Objectives Are Achieved
Where to test• Laboratory tests• Field tests
Where to test• Laboratory tests• Field tests
When to test• Pretesting• Posttesting
When to test• Pretesting• Posttesting
Where to test• Laboratory tests• Field tests
Where to test• Laboratory tests• Field tests
When to test• Pretesting• Posttesting
When to test• Pretesting• Posttesting
What to test• Source factors• Message variables • Media strategies• Budget decisions
What to test• Source factors• Message variables • Media strategies• Budget decisions
How to test• Testing guidelines• Appropriate tests
How to test• Testing guidelines• Appropriate tests
What to test• Source factors• Message variables • Media strategies• Budget decisions
What to test• Source factors• Message variables • Media strategies• Budget decisions
Measuring Advertising Effectiveness
On-air TestsOn-air Tests
Dummy Ad VehiclesDummy Ad VehiclesConsumer JuriesConsumer Juries
Portfolio TestsPortfolio Tests
Physiological MeasuresPhysiological Measures
Theater TestsTheater Tests
Rough TestsRough Tests
Concept TestsConcept Tests
Reliability TestsReliability Tests
Comprehension and Reaction Tests
Comprehension and Reaction Tests
Pretesting MethodsLaboratoryLaboratory FieldField
Dummy Ad VehiclesDummy Ad VehiclesConsumer JuriesConsumer Juries
Portfolio TestsPortfolio Tests
Physiological MeasuresPhysiological Measures
Theater TestsTheater Tests
Rough TestsRough Tests
Concept TestsConcept Tests
Reliability TestsReliability Tests
Comprehension and Reaction Tests
Comprehension and Reaction Tests
High control but low generalizability
Recall TestsRecall Tests
Inquiry TestsInquiry Tests
Association Measures
Association Measures
Single-Source Systems
Single-Source Systems
Tracking Studies
Tracking Studies
Recognition Tests
Recognition Tests
Recognition Tests
Recognition Tests
Inquiry TestsInquiry Tests
Single-Source Systems
Single-Source Systems
Association Measures
Association Measures
Recall TestsRecall Tests
Field Posttesting Methods
MethodsMethods
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
3.Finished Art or Commercial Testing
3.Finished Art or Commercial Testing
3.Finished Art or Commercial Testing
3.Finished Art or Commercial Testing
1.Concept Testing1.Concept Testing
2.Rough Testing2.Rough Testing
4.Market Testing (Post-testing)
4.Market Testing (Post-testing)
2.Rough Testing2.Rough Testing
1.Concept Testing1.Concept Testing
The Testing Process
Occurs at Various Stages
Occurs at Various Stages
Qualitative And/or Quantitative Data Evaluating and Comparing Alternative ConceptsQualitative And/or Quantitative Data Evaluating and Comparing Alternative Concepts
Explores Consumers’ Responses to Ad Concepts Expressed in Words, Pictures, or SymbolsExplores Consumers’ Responses to Ad Concepts Expressed in Words, Pictures, or Symbols
Alternatives Are Exposed to Consumers Who Match the the Target AudienceAlternatives Are Exposed to Consumers Who Match the the Target Audience
Reactions and Evaluations Are Sought Through Focus Groups, Direct Questioning, Surveys, Etc.Reactions and Evaluations Are Sought Through Focus Groups, Direct Questioning, Surveys, Etc.
Sample Sizes Depend on the Number of Concepts and the Consensus of ResponsesSample Sizes Depend on the Number of Concepts and the Consensus of Responses
Explores Consumers’ Responses to Ad Concepts Expressed in Words, Pictures, or SymbolsExplores Consumers’ Responses to Ad Concepts Expressed in Words, Pictures, or Symbols
Alternatives Are Exposed to Consumers Who Match the the Target AudienceAlternatives Are Exposed to Consumers Who Match the the Target Audience
Reactions and Evaluations Are Sought Through Focus Groups, Direct Questioning, Surveys, Etc.Reactions and Evaluations Are Sought Through Focus Groups, Direct Questioning, Surveys, Etc.
Sample Sizes Depend on the Number of Concepts and the Consensus of ResponsesSample Sizes Depend on the Number of Concepts and the Consensus of Responses
Concept Testing
ObjectiveObjective
MethodMethod
OutputOutput
Rough Art, Copy, and Commercial Testing
Number of Ads That Can Be Evaluated Is Limited
Number of Ads That Can Be Evaluated Is Limited
Preference for Ads Types May Overshadow ObjectivityPreference for Ads Types
May Overshadow Objectivity
Consumer May Become a Self-appointed Expert
Consumer May Become a Self-appointed Expert
A Halo Effect Is PossibleA Halo Effect Is Possible
Cost EffectivenessCost Effectiveness
Endorsements by Independent Third Parties
Endorsements by Independent Third Parties
Achievement of CredibilityAchievement of Credibility
Comprehension and Reaction TestsComprehension and Reaction Tests
Consumer JuriesConsumer Juries
ControlControl
AdvantagesAdvantages DisadvantagesDisadvantages
Number of Ads That Can Be Evaluated Is Limited
Number of Ads That Can Be Evaluated Is Limited
Consumer May Become a Self-appointed Expert
Consumer May Become a Self-appointed Expert
A Halo Effect Is PossibleA Halo Effect Is Possible
ControlControl
Cost EffectivenessCost Effectiveness
Endorsements by Independent Third Parties
Endorsements by Independent Third Parties
Achievement of CredibilityAchievement of Credibility
Comprehension and Reaction TestsComprehension and Reaction Tests
Photomatic RoughPhotomatic Rough
Animatic RoughAnimatic Rough
Live-action RoughLive-action Rough
Photomatic RoughPhotomatic Rough
Animatic RoughAnimatic Rough
Rough Testing Terms
TermsTerms
Based on Syllables Per 100 WordsBased on Syllables Per 100 Words
Other Factors Also ConsideredOther Factors Also Considered
A Laboratory MethodA Laboratory Method
Includes Test and Control AdsIncludes Test and Control Ads
Portfolio Test Have ProblemsPortfolio Test Have Problems
Based on Syllables Per 100 WordsBased on Syllables Per 100 Words
Other Factors Also ConsideredOther Factors Also Considered
A Laboratory MethodA Laboratory Method
Includes Test and Control AdsIncludes Test and Control Ads
Portfolio Test Have ProblemsPortfolio Test Have Problems
Pretesting Finished Print Ads
Readability Tests
Readability Tests
Portfolio Tests
Portfolio Tests
Dummy Advertising
Vehicles
Dummy Advertising
Vehicles
Based on Syllables Per 100 WordsBased on Syllables Per 100 Wordscreated including articles, and test and non-test adscreated including articles, and test and non-test ads
Theater TestsTheater Tests
•Measures changes in product preferences
•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-by-
frame) reactions
•Measures changes in product preferences
•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-by-
frame) reactions
On-Air TestsOn-Air Tests
•Insertion in TV programs in specific markets
•Limitations are imposed by “day-after recall”
•Physiological Measures
•Insertion in TV programs in specific markets
•Limitations are imposed by “day-after recall”
•Physiological Measures
Theater TestsTheater Tests
Pretesting Finished Broadcast Ads
Recall TestsRecall Tests
Inquiry TestsInquiry Tests Recognition Tests
Recognition Tests
Tracking StudiesTracking Studies Recall TestsRecall Tests
Recognition Tests
Recognition TestsInquiry TestsInquiry Tests
Market Testing Print Ads
TestingTesting
Starch-Scored reflect.com Magazine Ad
+
Noted score– the percentage of readers who remember seeing the adSeen-associated score—the percentage who remember seeing or reading any part of the ad identifying the product or brandRead most score—the percentage of readers who report reading at least half of the copy portion of the ad.
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
Test MarketingTest Marketing
Day After Recall TestsDay After
Recall TestsPersuasive Measures
Persuasive Measures
DiagnosticsDiagnostics
Comprehensive Measures
Comprehensive Measures
Single-source Tracking
Single-source Tracking
Tracking Studies
Tracking Studies
Single-source Tracking
Single-source Tracking
Test MarketingTest Marketing
Comprehensive Measures
Comprehensive Measures
DiagnosticsDiagnostics
Persuasive Measures
Persuasive Measures
Day After Recall TestsDay After
Recall Tests
Market Testing Broadcast Commercials
TestingTesting
Comprehensive Testing by Ipsos-ASI
+
Ipsos-ASI provides a variety of research services for print and broadcast measurement, including diagnostics and comprehensive measures
Use a Consumer Response ModelUse a Consumer Response Model
Use Pretests and Posttests
Use Pretests and Posttests
Use Multiple Measures
Use Multiple Measures
Understand and Implement
Proper Research
Understand and Implement
Proper Research
Establish Communications
Objectives
Establish Communications
Objectives
Establish Communications
Objectives
Establish Communications
Objectives
Use Multiple Measures
Use Multiple Measures
Use Pretests and Posttests
Use Pretests and Posttests
Use a Consumer Response ModelUse a Consumer Response Model
Essentials of Effective Testing
TestingTesting
Chapter 20Chapter 20
International Advertising and Promotion
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Barca's most difficult game is about to begin
Competition Has Become Global and Marketers Must Be Able to Compete Globally
Competition Has Become Global and Marketers Must Be Able to Compete Globally
International Markets Offer Growth Opportunities for Many Companies
International Markets Offer Growth Opportunities for Many Companies
Many Companies Rely on Foreign Markets to Survive, Particularly Those With Small Domestic Markets
Many Companies Rely on Foreign Markets to Survive, Particularly Those With Small Domestic Markets
Domestic Markets for Many Products and Services Are Stagnant
Domestic Markets for Many Products and Services Are Stagnant
International Markets Offer Growth Opportunities for Many Companies
International Markets Offer Growth Opportunities for Many Companies
Many Companies Rely on Foreign Markets to Survive, Particularly Those With Small Domestic Markets
Many Companies Rely on Foreign Markets to Survive, Particularly Those With Small Domestic Markets
Domestic Markets for Many Products and Services Are Stagnant
Domestic Markets for Many Products and Services Are Stagnant
Reasons for the Importance of International Markets
Markets such as China offer strong growth opportunities for many companies
+
EconomicEnvironmentEconomic
Environment
DemographicEnvironment
DemographicEnvironment
CulturalEnvironment
CulturalEnvironment
CulturalEnvironment
CulturalEnvironment
EconomicEnvironmentEconomic
Environment
DemographicEnvironment
DemographicEnvironment
The International Environment
InternationalMarketing
And
PromotionalDecisions
InternationalMarketing
And
PromotionalDecisions
Political/LegalEnvironment
Political/LegalEnvironment
International Economic Environment
Economic environment
• Stage of economic development• Economic infrastructure• Standard of living• Per capita income• Distribution of wealth• Currency stability• Exchange rates
Economic environment
• Stage of economic development• Economic infrastructure• Standard of living• Per capita income• Distribution of wealth• Currency stability• Exchange rates
International MarketingAnd Promotional Decisions
International MarketingAnd Promotional Decisions
International Cultural Environment
Cultural environment
• Language• Lifestyles• Values• Norms and customs• Ethics and moral standards• Taboos
Cultural environment
• Language• Lifestyles• Values• Norms and customs• Ethics and moral standards• Taboos
International MarketingAnd Promotional Decisions
International MarketingAnd Promotional Decisions
International Demographic Environment
Economic environment
• Size of population• Number of households• Household size• Age distribution• Occupation distribution• Education level• Employment rate• Income level
Economic environment
• Size of population• Number of households• Household size• Age distribution• Occupation distribution• Education level• Employment rate• Income level
International MarketingAnd Promotional Decisions
International MarketingAnd Promotional Decisions
International Political/Legal Environment
Political/legal environment
• Government policies• Laws and regulations• Political stability• Nationalism• Attitudes toward multinational
companies
Political/legal environment
• Government policies• Laws and regulations• Political stability• Nationalism• Attitudes toward multinational
companies
International MarketingAnd Promotional Decisions
International MarketingAnd Promotional Decisions
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?
Lower Costs With Less in Planning and Control Lower Costs With Less in Planning and Control
Global Marketing and Advertising Advantages
Economies of Scale in Production, Distribution Economies of Scale in Production, Distribution
Lower Advertising and Production Costs Lower Advertising and Production Costs
Ability to Exploit Good Ideas Worldwide Ability to Exploit Good Ideas Worldwide
Ability to Introduce Products Quickly, Worldwide Ability to Introduce Products Quickly, Worldwide
Consistent International Brand, Company Identity Consistent International Brand, Company Identity
Simplification of Coordination and Control Simplification of Coordination and Control
Lower Costs With Less in Planning and Control Lower Costs With Less in Planning and Control
Economies of Scale in Production, Distribution Economies of Scale in Production, Distribution
Lower Advertising and Production Costs Lower Advertising and Production Costs
Ability to Exploit Good Ideas Worldwide Ability to Exploit Good Ideas Worldwide
Ability to Introduce Products Quickly, Worldwide Ability to Introduce Products Quickly, Worldwide
Consistent International Brand, Company Identity Consistent International Brand, Company Identity
Gillette Used Global Advertising to Launch the Mach3
Legal Restrictions May Make It Difficult to Develop an Effective Universal Appeal
Legal Restrictions May Make It Difficult to Develop an Effective Universal Appeal
Media Availability or Usage May Vary by Country or Region
Media Availability or Usage May Vary by Country or Region
Consumers Needs and Usage Patterns Often Vary by Country or Region
Consumers Needs and Usage Patterns Often Vary by Country or Region
Differences in Culture, Market and Economic Conditions Make It Difficult to Use Global Advertising
Differences in Culture, Market and Economic Conditions Make It Difficult to Use Global Advertising
Media Availability or Usage May Vary by Country or Region
Media Availability or Usage May Vary by Country or Region
Consumers Needs and Usage Patterns Often Vary by Country or Region
Consumers Needs and Usage Patterns Often Vary by Country or Region
Differences in Culture, Market and Economic Conditions Make It Difficult to Use Global Advertising
Differences in Culture, Market and Economic Conditions Make It Difficult to Use Global Advertising
Problems With Global Advertising
Brands can be adopted for visual appeal, avoiding problems of translating words into many languages
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
Brands promoted with image campaigns playing to universal appeals such as sex or wealth
High-tech products, new to the world, not steeped in the cultural heritage of the country of origin
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 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
Products appealing to a market segment with universally similar tastes, interests, needs, and values
Brands can be adopted for visual appeal, avoiding problems of translating words into many languages
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
Brands promoted with image campaigns playing to universal appeals such as sex or wealth
High-tech products, new to the world, not steeped in the cultural heritage of the country of origin
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 with with a nationalistic flavor if the country has a favorable reputation in the field
When is Globalization Appropriate
Globalization Often Works
Best For:
Globalization Often Works
Best For:
Saab used a global campaign since its customers are similar around the world
+
+
British Airways Uses Global Advertising
Standardizing Products
Standardizing Products
“Think Globally, Act Locally”
“Think Globally, Act Locally”
Localizing Ad Messages
Localizing Ad Messages
Differences in Language
Differences in Language
Differences in Language
Differences in Language
Differences in Market Conditions
Differences in Market Conditions
Differences in Cultural
Differences in Cultural
Differences in Market Conditions
Differences in Market Conditions
Differences in Cultural
Differences in Cultural
“Think Globally, Act Locally”
“Think Globally, Act Locally”
Localizing Ad Messages
Localizing Ad Messages
Standardizing Products
Standardizing Products
Global Products, Local Messages
An In-between ApproachAn In-between Approach
Adapt Messages to Respond ToAdapt Messages to Respond To
Use of Pattern Advertising
Use of Pattern Advertising
Continental Airlines Used Pattern Advertising to Promote Its Businessfirst Class
++
International Media Selection Issues
Widely Differing Characteristics
Widely Differing Characteristics
CostCost
CoverageCoverage
RestrictionsRestrictions
AvailabilityAvailability
QualityQuality
Media Information Problems
Media Information Problems
CostCost
ReliabilityReliability
CirculationCirculation
AudienceAudience
AvailabilityAvailabilityCostCost
CoverageCoverage
RestrictionsRestrictions
AvailabilityAvailability
QualityQuality
International Media Provide Broad Coverage
+
Market MaturityMarket Maturity
Trade StructureTrade Structure
Economic DevelopmentEconomic Development
Consumer PerceptionsConsumer Perceptions
RegulationsRegulations
Trade StructureTrade Structure
Consumer PerceptionsConsumer Perceptions
Market MaturityMarket Maturity
Economic DevelopmentEconomic Development
Foreign Market Sales Promotion Programs
Major Creation ConsiderationsMajor Creation Considerations