Post on 14-Jan-2016
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Measuring the Effectsof a Campaign
MKT 846
Professor West
Agenda
Measuring the Impact of IMC PACT Principles Testing Methods IMC Audit
General Thoughts
Accountability is a must in today’s business environment! Be prepared to demonstrate your worth
Gap analysis Is there a difference between what customers expect from
a brand (based on brand messages) and what they actually experience?
Is your marketing communications sending the right message?
General Thoughts
If you’ve done your homework then measuring effectiveness is easy Begins with objective setting Evaluation ultimately entails testing whether specified
objectives have been met Concept testing and concurrent testing allow you make
adjustments along the way and minimize the risk Predicting what communications efforts will succeed
or fail is a lot like picking stocks.
General Thoughts
Why do you evaluate a campaign? To determine if the strategy worked. If it didn’t, what went
wrong? To quantify and justify the return on investment. To make changes in the future.
When is it done? Risk & Reward
Measuring the Impact of IMC
What do we know about the effectiveness of IMP programs relative to the effectiveness of program elements?
Recent studies have begun to shed light on the interactive effect of communications methods.
Measuring the Impact of IMC
Tests of recall and memory of online and television advertising alone or in combination Design: 4 groups,
Ad exposure while visiting a web page on ESPN.com, Ad exposure during an episode of Who Wants to Be a Millionaire, Ad exposure while watching TV and visiting the web page, No exposure to the ad (control group)
Results: There was a synergistic effect when TV and online were used in
combination leading to a 9 percent gain in recall, a 48 percent increase in recognition of the online ads.
Conclusion: Online supports TV commercials and vice versa
(Online Publishers Association & IntelliQuest)
Measuring the Impact of IMC
Tests of recall and memory of online and television advertising alone or in combination Design:
Online exposure, TV exposure, Print exposure, a combination of exposures
Conclusion: Online supports TV and print ads
(Consortium: Microsoft, Marketing Evolution, ARF, and Unilever)
Measuring the Impact of IMC
Nextel When sales began to slide it sought to identify which MC
functions were producing the best returns Analysis revealed that web advertising had been the most
cost-effective in producing sales leads Budget allocation was revised and 100 percent of the
budget was allocated online (full-screen pop-ups, special offers…)
Increased the number of calling plans sold while reducing the cost per sales lead from $35 to $11
PACT Principles:
Provide measurements are relevant to the objectives of the advertising.
Require agreement about how the results will be used in advance of each specific test
Provide multiple measurements and look for convergence
Consider how people respond to communication
Marketing Communication Model
Basic Communication Model
Six key elements: Sender – the source of the message Message – the information being communicated either
verbally or nonverbally Receiver – the recipient of the message Common experiences (represented by the overlapping
fields of experience) – allows communication to occur. Feedback loop – the recipient’s response to the
message Noise – anything preventing the sender from getting
the message to the receiver or vice versa
Information Processing
McGuire Model Testing Ad Effectiveness
Expos
ure
Attent
ion
Compreh
ension
Acceptance/
Yielding
Purch
ase
Retention
Circulation,Reach
Listener
Recognition
Recall,Checkl
ists
Attitude,Purchase
Intent
Delayed
Recall
Scanner
Data
Hierarchy of Effects Models
Models:
Stages: AIDA DAGMARInnovation/Adoption
Information Processing
Think(Cognitive)
Attention Awareness
Knowledge
Awareness ExposureAttention
Comprehension
Feel(Affective)
Interest
Desire
LikingPreferenceConviction
Interest
Evaluation
Yielding
Retention
Do(Behavioral) Action Purchase
TrialAdoption Behavior
Persuasive CommunicationPersuasive Communication
Motivated to Process?•Involvement•Relevance, etc.
Motivated to Process?•Involvement•Relevance, etc.
Ability to Process?•Issue familiarity•Arousal, etc.
Ability to Process?•Issue familiarity•Arousal, etc.
Nature of Cognitive Processing
Mostly Mostly MostlyFavorable Unfavorable Neutral Thoughts Thoughts Thoughts
Nature of Cognitive Processing
Mostly Mostly MostlyFavorable Unfavorable Neutral Thoughts Thoughts Thoughts
Cognitive Structure Change•New cognitions adopted•Different responses
Cognitive Structure Change•New cognitions adopted•Different responses
Persuasion:enduring positiveattitude change
Persuasion:enduring positiveattitude change
Boomerang:enduring negative
attitude change
Boomerang:enduring negative
attitude change
Temporaryattitude shift
Temporaryattitude shift
Peripheral cue present?•Source characteristics•Visual imagery•Executional elements
Peripheral cue present?•Source characteristics•Visual imagery•Executional elements
RetainInitial attitude
RetainInitial attitude
Yes
Yes
Yes Yes
YesNo
No
No
No
The FCB Planning Grid
Thinking Feeling
High
Involvement
1. Informative (thinker)
Investments, House, AppliancesThink – Feel - Do
ImplicationsTest: Recall, DiagnosticsMedia: Long copy, reflective vehiclesExecution: Information, Demonstration
2. Affective (feeling)Jewelry, Cosmetics, Apparel, Sports CarFeel– Do – Think
ImplicationsTest: Attitude Change, ArousalMedia: Large space, Image specialsExecution: Impact
Low
Involvement
3. Habit Formation (doer)
Food, Household Items, CleanersDo – Think – Feel
ImplicationsTest: SalesMedia: Small spaces, 10 sec radio, POSExecution: Reminder
4. Self-Satisfaction (impulse)
Cigarettes, Liquor, Candy, MagazinesDo – Feel – Think
ImplicationsTest: SalesMedia: Billboards, Newspaper, POSExecution: Attention getting
PACT Principles:
Consider whether the advertising stimulus should be exposed more than once Do you remember how many exposures it takes to have
an impact? Consider the fact that finished copy can be more
soundly evaluated than rough copy, and require that alternative executions be tested in the same degree of finish Apples versus oranges problem
PACT Principles:
Provide controls to avoid biasing effects of exposure context Primacy and recency effects
Take into account basic considerations of sample definition Target audience, Geographic representation, Random
sampling, Demonstrate reliability and validity
Use experimental procedures
The Value of Pretesting (Concept testing)
McCollum Speilman Worldwide studied 4,637 on-air commercials used to build normative measures.
0
5
10
15
20
25
30
35
40
Failure Success
Not pretested
Pretested
Market Testing of Ads (Concurrent Testing)
Inquiry tests Measure ad effectiveness based on the number of
inquiries generated – web visits, coupons returned, phone calls, etc…
Split-run tests are used to compare different version of the ad or running the same ad in different media.
Market Testing of Ads (Concurrent Testing)
Recognition Tests Starch Ad Readership Report lets advertisers assess the
impact of an ad in a single issue of a magazine over time, or across different issues. Measures 25,000 ads in more than 400 issues across more than
100 magazines and newspapers per year.
The value of norms and measures of reliability make this a widely used means of testing.
Market Testing of Ads (Concurrent Testing)
Recall tests Gallup & Robinson MIRS (Magazine Impact Research
Service) and Burke Day-After-Recall Can be used to assess an ad’s impact on memory Once again, the normative value is very important
Suggestive brand names (Keller, Heckler, and Houston) Tend to facilitate recall of the brand benefits (initial brand
positioning) However, they inhibit recall of subsequent claims (more difficult to
introduce a new attribute at a later time). Jack-in-the-Box, Old Spice, Kentucky Fried Chicken, Oldsmobile
How are recognition and recall related?
NIPO Study (Netherland’s Institute of Public Opinion) The average correlation between recognition and recall of
print ads is very high (r = .95) Recall stems from recognition Likeable and interesting ads doubled recall scores Creative ads were more effective at enhancing preference
and recall than larger ads
Market Testing of Ads (Concurrent Testing)
Tracking Studies One of the most useful and adaptable forms of posttesting Involves taking measurements at regular intervals A standard set of questions is used
Brand Metrics: awareness, recognition, recall, brand perceptions, attitudes toward the ad and/or brand, purchase intention
Relationship Metrics: lifetime customer value, recency of purchase, frequency of purchase, monetary value, referral index, share of wallet
Sample sizes range from 250 – 500 cases per period Can be used to measure the differential impact of budget
size and scheduling as well as copy execution and media selection
Performance Measures (Evaluative Testing)
An effective campaign is one that meets or exceeds its objectives.
The more closely the objectives are aliened with sales and profit the better they are.
Remember, MC is only one of many elements of the mix that can impact sales. Others include: Product performance Pricing Distribution Competition
Performance Measures (Evaluative Testing)
Measuring performance requires baseline measures Tracking studies are very useful in establishing
baseline and performance measures
IMC Audit
Organization Infrastructure Is managing brand reputation and stakeholder
relationships a cross-functional responsibility? Are the strengths and weaknesses of all MC tools
considered? Is internal marketing utilized consistently and effectively? Do our agencies communicate with one another?
IMC Audit
Interactivity Does our media plan have a balance between mass and
interactive media? Is there facilitation of customer inquiries and complaints? Are customer databases being used to capture information
to facilitate relationship building? Are customer databases easily accessible and user-
friendly?
IMC Audit
Mission Marketing Is the organization’s mission evident in its MC plans? Does our mission provide a reason for customers to
believe our message and support the company? Are philanthropic efforts concentrated in one specific area?
IMC Audit
Strategic Consistency Are company-created brand messages strategically
consistent? Do we periodically review all brand messages for
consistency? Do we consider what brand message is being sent by our
pricing, distribution, product performance, and customer- service
IMC Audit
Planning and Evaluating Do we use SWOT analysis in MC planning? Are we using a zero-based approach? Are we fully leveraging intrinsic brand-contacts before
investing in new brand-contact points? Do we have a tracking study to monitor relationships with
customers and other stakeholders? Are we maximizing the unique strengths of various MC
functions? Is the overall objective of our MC program to create and
nourish profitable relationships with customers and stakeholders?