Measuring The Effectiveness of Integrated Marketing Communications

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Chapter 17

• Measuring The Effectiveness of Integrated
  Marketing Communications

2
Objectives

• To understand reasons for measuring promotional
  program effectiveness
• To know the various measures used in assessing
  promotional program effectiveness

3
Objectives

• To evaluate alternative methods for measuring
  promotional program effectiveness
• To understand the requirements of proper
  effectiveness research

4
The Measuring Advertising Effectiveness Debate

• Reasons for measuring advertising effectiveness
• Reasons for not measuring advertising
  effectiveness

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Reasons for Measuring Advertising Effectiveness

• Avoiding costly mistakes
• Understanding how well money is being spent
• Opportunity loss due to poor communications
• Measuring the effectiveness of poor communications

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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

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Reasons for Not Measuring Advertising
Effectiveness

• Cost
• Timing
• Proper spending to gain increased exposure on the
  right message
• Research problems
• Isolating the effects of promotional elements

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Reasons for Not Measuring Advertising
Effectiveness

• Disagreement on what to test
• Different objectives for stages in PLC, industry
  and different people in the firm
• The objections of creative
• The more creative an ad, the more successful
• Testing impairs creativity

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Decisions for Measuring Advertising Effectiveness

• What to test
• When to test
• Where to test

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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

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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

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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

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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

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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

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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

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Methods of Measuring Advertising Effectiveness

• Concept generation and testing
• Rough art, copy, and commercial testing
• Pretesting of finished ads
• Market testing of ads

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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

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Rough Art, Copy, and Commercial Testing

• Comprehension and reaction tests
• Conveying meaning intended by assessing responses
• 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

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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

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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

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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

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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

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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

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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

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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

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Internet Marketing Effectiveness

• Processing and communication effects measures
• Online Measuring
• Recall and Retention
• Non-Response
• Surveys
• Panels
• Sales
• Tracking