09 Lecture

Department of Marketing1

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Lecture Week 9

Measuring the Effectiveness of the IMC program

and Direct Marketing

Integrated Marketing Communication MAR23


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Learning Objectives students should be able to:

To discuss the importance of, and reasons for, measuring the effectiveness of marketing communications.

To apply some guidelines used in measuring IMC effectiveness.

To compare and contrast industry-developed criteria for evaluating IMC effectiveness against alternative methods.

To outline the benefits and limitations of evaluation.


Evaluation and Measurement of Brand Messages Questions markets frequently ask Did our MC spending help generate more sales and profits? Was our MC budget spent in the most effective way?

Ways to obtain answers: To measure and evaluate brand messages and customer

interactions. This includes generating feedback on brand strategies and

the different brand messages and campaigns that are used. 70% mkt execs did not know what return they were getting


Benefits of Measurable Objectives

Enable companies to quantify the effectiveness of MC efforts and to assess whether their MC budget has been spent wisely.

Increase corporate accountability.

Provide feedback that can be used to examine why MC efforts worked or did not work → provide important opportunities for corporate learning.

Help determine the difference between reality and MC expectations.


Objectives of MC Evaluations & Measurement MC evaluation and measurement can be undertaken at different

stages:During the development of the brand-message strategies. After the completion of a campaign.The objectives are to:Predict / determine results (i.e. identify the changes in behaviour /

attitudes created by an offer / promotion / campaign / company response / other types of brand messages).

Reduce risk. Provide direction. Determine the extent to which MC programs have met their

specified objectives. Determine how successful the MC campaign was at providing a

return on investment. BUT not all MC messages will be evaluated or measured. Why

not? Cost!!!


Reasons For and Against Measuring Effectiveness

Objections from creative personnel

Objections from creative personnel

Evaluate alternative strategies

Evaluate alternative strategies

Avoid costly mistakesAvoid costly mistakes

Increase efficiency of IMC Increase efficiency of IMC Disagreement on what to

testDisagreement on what to

test

Research problemsResearch problems

Cost of measurementCost of measurement

Determine if objectives are achieved

Determine if objectives are achieved

TimeTime

ForFor AgainstAgainst


Typical Circumstances when Measurement & Evaluation Occur

Company has a large/ sizeable media budget. Company could suffer financially if the media messages fail

to achieve the MC objectives. A lot of money / resources/ staff time are involved.

In these circumstances, the cost of measurement and evaluation is typically warranted.

Option: Rigorously test the selling concepts / creative strategies used as the basis of MC campaigns → apply general concept and not test individual messages .


Measuring the Effectiveness of a Behaviour Change Campaign – The Transport Accident Commission’s Road Safety Campaign.

2009 McGraw-Hill Aust Pty Lty


How to test• Testing guidelines• Appropriate tests

How to test• Testing guidelines• Appropriate tests

An Overview: Measuring Advertising Effectiveness

When to test• Pretesting: concept, lab, field, focus group• Post testing TAC input road toll, ROI

When to test• Pretesting: concept, lab, field, focus group• Post testing TAC input road toll, ROI

Where to test• Laboratory tests (lack of realism, not at home) Telstra• Field tests (at home real, distractions, view)

Where to test• Laboratory tests (lack of realism, not at home) Telstra• Field tests (at home real, distractions, view)

What to test• Source factors, tiger woods Nike• Message variables • Media strategies,class• Budget decisions, sale

What to test• Source factors, tiger woods Nike• Message variables • Media strategies,class• Budget decisions, sale


Pre-testing Methods

On-air Tests

Dummy Ad VehiclesConsumer Juries

Portfolio Tests

Physiological Measures

Theater Tests

Rough Tests

Concept Tests

Readability Tests

Comprehension and Reaction Tests

Laboratory Field


Post-testing Methods

Recall TestsRecall Tests

Inquiry TestsInquiry Tests

Association Measures

Association Measures

Single-Source

Systems

Single-Source

Systems

Tracking Studies

Tracking Studies

Recognition Tests

Recognition Tests

MethodsMethods


Post-testing the Value of a Sponsorship

Companies such as Lowe’s use field testing to determine the impact of their IMC programs.In this instance, Lowe’s (an American home improvement centre, sponsored a NASCAR.

Lowe’s used field experiments to determine the effectiveness of its various forms of advertising: TV spots, Newspaper ads, circular catalogs, and sponsorship of the NASCAR auto racing.

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1. Provide measurements relevant to objectives of advertising2. Require agreement on how results will be used3. Provide multiple measures 4. Be based on a model of human response to communications5. Consider multiple versus single exposure to the stimulus6. Require alternative executions to have same degree of finish7. Provide controls to avoid biasing effects of exposure context8. Take into account basic considerations of sample definition9. Demonstrate reliability and validity

Positioning Advertising Copy Test (PACT)

PACT defines copy testing as research ‘which is undertaken when a decision is to be made about whether advertising should run in the marketplace. Whether this stage utilises a single test or a combination of tests, its purpose is to aid in the judgment of specific advertising executions’


3.Finished art or commercial pretesting: testing of finished ad/sales promotion/ direct marketing piece. It allows for changes to be made based on feedback.

3.Finished art or commercial pretesting: testing of finished ad/sales promotion/ direct marketing piece. It allows for changes to be made based on feedback.

1.Concept Testing: undertaken very early during the development of the campaign (e.g. positioning statements/ copy/ headlines/ illustrations/ typeface/ colours/ package designs etc.)

1.Concept Testing: undertaken very early during the development of the campaign (e.g. positioning statements/ copy/ headlines/ illustrations/ typeface/ colours/ package designs etc.)

2.Rough Testing: test how the concept is being portrayed at a fairly early stage in development. Important when designs are very costly to bring to full completion (e.g. advergames).

2.Rough Testing: test how the concept is being portrayed at a fairly early stage in development. Important when designs are very costly to bring to full completion (e.g. advergames).

4.Market testing (post-testing): There are a variety of techniques that can be used to evaluate a message after it has been implemented.

4.Market testing (post-testing): There are a variety of techniques that can be used to evaluate a message after it has been implemented.

Overview of Various Testing MechanismsOverview of Various Testing Mechanisms


Concept Testing (pre-test)

Explores consumers’ responses to ad concepts expressed in words, pictures, or symbols

ObjectiveObjective

Alternatives are exposed to consumers who match the target audience

Reactions & evaluations sought through focus groups, direct questioning, surveys, etc.

Sample sizes depend on the number of concepts and the consensus of responses

MethodMethod

Qualitative and/or quantitative data evaluating and comparing alternative concepts

OutputOutput


Photomatic rough: successions of photographs often showing real people/scenery, etc. with still frames and simulated movement.

Photomatic rough: successions of photographs often showing real people/scenery, etc. with still frames and simulated movement.

Animatic rough: includes a succession of drawings/cartoons, rendered artwork, still frames and simulated movement.Animatic rough: includes a succession of drawings/cartoons, rendered artwork, still frames and simulated movement.

Live-action rough: employs live motion, stand-in talent often with nonunion crews, limited props and opticals, and location settings.Live-action rough: employs live motion, stand-in talent often with nonunion crews, limited props and opticals, and location settings.

Terminology Associated with ‘Rough Testing’


Rough Art, Copy, and Commercial Testing (pre-test)

Number of ads that can be evaluated is limited

Preference for ad types may overshadow objectivity

Consumer may become a self-appointed expert

A halo effect is possible

Cost effectiveness

Endorsements by independent third parties

Achievement of credibility

Comprehension and Reaction Tests personal interview, group interview, focus grp, 50-200, no one std procedure

Consumer Juries: consumers representative of the target market, rank

Adv according to preferences,

Control

Advantages Disadvantages


Based on syllables per 100 words Flesch formula,

Based on syllables per 100 words Flesch formula,

Other factors considered including human interest appeal etc.

Other factors considered including human interest appeal etc.

A laboratory methodA laboratory method

Includes test and control adsIncludes test and control ads

Portfolio tests have problemsPortfolio tests have problems

Pretesting Finished Print Ads

Readability tests

Readability tests

Portfolio tests

Portfolio tests

Distributed to random sample of homesDistributed to random sample of homes

Product interest may still bias resultsProduct interest may still bias results

Dummy advertising

vehicles

Dummy advertising

vehicles


Pretesting Finished Broadcast Ads

Theater 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 reactions

On-Air Tests

Insertion in TV programs in specific markets

Limitations are imposed by “day-after recall” uses recall as primary measure of effectiveness

Physiological Measures (are used less often) pupil dilation, brain waves, eye tracking, skin response,


Scanner Market Tests

Scanner market test: “a tracking of a household’s purchases” (Duncan, 2005, p. 714).

Panel of household members are recruited and given a buyer identification card (like frequent-buyer card) and divided into test and control groups.

Newspaper ads and commercials are specially designed to be received by the test households → marketers need to formulate agreements with newspapers and cable TV channels.

Extent of promotional impact is measured as the difference in purchases between control and test groups.


Theatre Tests

Theatre tests: “people are invited to a location for the purpose, they are told, of critiquing a TV program, but actually for the purpose of evaluating their response to a brand message” (Duncan, 2005, p. 713).

Pre-viewing questionnaire: preferences for specific brand categories + demographics.

Post-viewing questionnaire: asked about program and any commercials they remember (recall) + asked to indicate brand preferences.

Difference in pre and post preference scores = measure of persuasion.

Results need to be compared to norms!!


Measuring Physiological Responses

Emotional feelings can influence physiological responses.If consumers are not willing or able to express their emotional

feelings then sometimes it is feasible to measure their physiological responses.

It is argued that these measures theoretically eliminating biases associated with voluntary measures.

However, they are not commonly used because of cost and problems interpreting the data.

Galvanic skin response Pupil dilation measure Eye-tracking instrument Measurement of brain waves (EEG)


Market Testing Print Ads

Tracking Studies: Tracking the effects of the ad campaign by taking measurements at regular intervals.

Inquiry tests: measure effectiveness on the basis of inquiries generated from ads/IMC material appearing in various print media (e.g. number of coupons returned/ phone calls generated). Can include evaluation of successive runs/ split-run tests / comparison across media.

Weaknesses: inquiries may not be a true measure of the capacity of an ad’s attention-grabbing ability or its ability to provide information etc. Consumers may lack the time, need, interest to pursue ad content.

Recall tests: Designed to test consumer recall of ads. (e.g. Ipsos ASI Next*Print test or the Gallup & Robinson Magazine Impact Research Service (MIRS).

Research suggests the presence of a very strong correlation between recall and recognition (r=0.96 and 0.95 for newspapers and magazines respectively).

Likeability and interest in ads can increase both recall and recognition.


Example of Recall Tests: Gallup & Robinson Magazine Impact Research Service (MIRS)Objective: Tracking recall of advertising (and client’s ads)

appearing in magazines to assess performance and effectiveness.

Method: Test magazines are placed in participant’s homes and respondents are asked to read the magazine that day. A telephone interview is conducted the second day to assess recall of ads, recall of copy prints, and consumer’s impressions of the ads. Sample size = 150.

Output: Three measurement scores:1. Proven name registration - % respondents who can

accurately recall the ad2. Idea communication – number of sales points the

respondents can recall3. Favourable buying attitude – the extent of favourable

purchase reaction to the brand / corporation.


http://commercial-archive.com/node/145242

Student Question: How could IKEA evaluate this magazine ad?


Market Testing Print Ads (cont.)

Recognition tests: a commonly used post-test method to assess the impact of an ad in print medium.Starch Ad Readership Report Note the use of established norms and the benefits to reliability and validity when multiple insertions are evaluated. The Starch method is one of the more commonly employed posttest measures of print ads. It uses three measures including: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.Starch measures have been used in the magazine industry for many years, and have become one of most commonly employed measures of advertising effectiveness.


Example of the Starch Method

http://edsites2.itechne.com/Acp3Images/edDesk/0b531cdd-eaf7-4c3e-82a7-1980552a775c/AboutStarch.pdf


Market Testing Broadcast Commercials

Test marketing*Test marketing*

Day-after recall tests

Day-after recall tests

Persuasive measures

Persuasive measures

DiagnosticsDiagnostics

Comprehensive measures*

Comprehensive measures*

Single-source tracking*

Single-source tracking*

Tracking studiesTracking studies TestingTesting

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Common Post-tests for Broadcast Commercials

The most common posttesting methods for broadcast commercials include a combination of: day-after recall tests, persuasion measures, and diagnostics.

Day-after recall (DAR) tests: % of surveyed viewers who can remember seeing a particular ad.

Weaknesses: high costs, small samples, security of ad as it may be seen by competitors. Other limitations include:

Some argue that the method may favour unemotional appeals because respondents need to verbalise the message.

Program content mat influence recall.

Pre-recruiting a sample may influence their attention levels.


Post-tests for Broadcast Commercials

Persuasive measures: 1. Ask the respondent to select a brand that they would like to win in a draw. 2. Show the commercial. 3. Ask the question again.

Can also include measures of purchase intent and frequency-of-purchase criteria.

Diagnostics: designed to determine: viewers’ evaluations of the ads how clearly the creative idea is understood how well the proposition is communicated.

Rational and emotional reactions are also examined.


Tracking Studies (print & broadcast)Tracking studies used to measure: awareness, recall, interest,

and attitudes towards the ad as well as purchase intentions.Techniques used: personal interviews, phone surveys, mall

intercepts, mail surveys.Methodology: Sample size typically range from 250-500 per time

period. Time periods are usually quarterly or biannually. Provide invaluable date for assessing current programs and

planning for the future. Advantages: can be tailored to each specific campaign/situation.Can be used to evaluate differential impact of different budget

sizes, the effects of different media schedules, and various IMC tools not just advertising.

Offer a high degree of reliability and validity IF they are designed well.


Tracking Studies: Critical Factors to Consider 1. Properly defined objectives must be set.2. Alignment with sales objectives.3. The design of the measures must consider: sample size, protocols

to ensure consistency across interviews, time between tracking periods, and utilisation of random sampling techniques.

4. Across tracking periods there must be consistency of the sampling plan → replication is important.

5. Continuous interviewing (not seasonal).6. Evaluate measures related to behaviour.7. Critically evaluate questions asked - ? Bias + ? questions about

were ads were seen/heard.8. Measure competitor’s performance.9. Report data in terms of relationships not as isolated facts.10. Include time points of key marketplace events so that the impact of

these can be more easily seen.


Summary of the Essentials of Effective Testing

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 TestingTesting


Measuring Effectiveness of Other Programs

Shopping cart signageShopping cart signage

Ski resort-based mediaSki resort-based media

In-store radio and televisionIn-store radio and television

Other mediaOther media

Non-traditional

media

Non-traditional

media

Sales promotions

Sales promotions

Sponsor-ships

Sponsor-ships

Exposure methodsExposure methods

Tracking measuresTracking measures


Measuring the Effectiveness of the IMC Program

Process measures

Process measures

SynergySynergy

ROIROI

The auditThe audit

• Media interactions• Interactions between communications mix elements

• Media interactions• Interactions between communications mix elements

• Return on brand Investment• Return on touchpoint investment

• Return on brand Investment• Return on touchpoint investment

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Direct Marketing Learning Objectives , you should be able …

To describe the development and reasons for growth of direct marketing communication.

To discuss the role of direct marketing in relation to an IMC program.

To outline the link between databases and direct marketing communication.

To outline some of the advantages and disadvantages of direct marketing communication.


RadioRadio

Direct sellingDirect selling

Magazine & newspaperMagazine & newspaper

Direct mailDirect mail

TelemarketingTelemarketing

TV sellingTV selling

Direct Marketing Defined

“Direct marketing is a system by which organisations communicate directly with target customers to generate a response or transaction. This response may take the form of an inquiry, a purchase or even a vote” (p. 464).It has also been defined as “a database-driven process of directly communicating with targeted customers or prospects using any medium to obtain a measurable response or transaction via one or multiple channels”.The term ‘direct marketing” encompasses: marketing research, segmentation, evaluation.

“Direct marketing is a system by which organisations communicate directly with target customers to generate a response or transaction. This response may take the form of an inquiry, a purchase or even a vote” (p. 464).It has also been defined as “a database-driven process of directly communicating with targeted customers or prospects using any medium to obtain a measurable response or transaction via one or multiple channels”.The term ‘direct marketing” encompasses: marketing research, segmentation, evaluation.

Direct-response media: the media used to implement the communication process.


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Interactive Nature of Direct Marketing Increase interactivity → increase persuasiveness. Uses intrusive media (e.g. telemarketing / spam) → can create negative

perceptions BUT it is one of the fastest-growing MC functions. WHY is it growing so fast? Technological advances → easier and less costly to interact with

customers. (e.g. customer databases + computer technology enable strategic tailoring of direct-response programs to different users).

Social changes (e.g. many consumers are time poor → direct response saves time and is easier).

Internet access + Toll-free numbers → easier to contact an organisation.

Increased use of consumer credit cards → easier to complete transactions over the phone/internet.

Advent of direct-marketing syndicates (e.g. specialise in list development, statement inserts, sweepstakes etc).


AdvertisingAdvertising

Sales promotionSales promotion

Public relationsPublic relations

Personal sellingPersonal selling

InternetInternet

Support mediaSupport media

Direct marketing combines with . . .

Direct marketingDirect marketing


Myer Direct Marketing



Objectives of Direct Marketing

Usually aimed at obtaining some sort of direct response from consumers/prospects → the objectives for direct marketing programs are typically behaviours or conative outcomes.

e.g. requests for more information, actual sales, test-drives, votes, contributions…..

Objectives are usually defined as the number of responses (as a %) of all those who were sent the offer.

Generate new sales (e.g. move prospects through the decision-making process → motivate trials / sampling / visiting showrooms). Most direct-marketing programs are designed to generate a transaction.

Retain and grow current customers (e.g. personalise offers). The effectiveness can be accurately measured. If assessment is done well the company can compute the profitability

of each customer. Fits well with the growing move towards greater accountability within

companies.


Objectives of Direct MarketingProduce leads: provides inexpensive way to send messages that enable

potential customers to show their interest in a particular brand product.

Lead qualification: provides a means of screening prospects to ensure they are worth spending more money on to generate a sale.

Cross-selling other products – current customers have strong potential for purchasing related products

Other objectives include: build image + maintain customer satisfaction. to inform/educate customers in an attempt to lead to future actions. Strengthen brand relationships: provides a means to gather

customer-profile data (e.g. offer a premium if they provide certain types of information – wants / needs/ lifestyles / attitudes / beliefs – related to a specific product category).

Promote social action: used as a means of eliciting support (e.g. unite behind a cause to bring about some good for an individual or community).


Direct Marketing Processes Research Segmentation Message creation Selection of media vehicles to deliver message Response Process

Transaction

Distribution

Fulfilment

Follow-up Updating of customer database


Developing a Database: Sources of Information

List rental servicesList rental services

Direct marketingAssociations e.g.

Aust. Direct Marketing Association

Direct marketingAssociations e.g.

Aust. Direct Marketing Association

Online search behaviours e.g. Sensis

media, Google

Online search behaviours e.g. Sensis

media, Google

Postal services e.g. Australia Post

Postal services e.g. Australia Post

Syndicated research e.g. Roy Morgan Research

Syndicated research e.g. Roy Morgan Research

Bureax of statistics e.g. ABS

Bureax of statistics e.g. ABS

SourcesSourcesCredit bureaux – have their own credit cards

and credit departments e.g Standard and Poors.

Credit bureaux – have their own credit cards

and credit departments e.g Standard and Poors.

Retail transaction histories

Retail transaction histories


A Comprehensive Consumer Database

Name

Address/postcode

Telephonenumber

Length ofresidence

Age

Gender

Maritalstatus

Familydata

Education

Income

Occupation

Transactionhistory

Promotionhistory

Inquiringhistory

Uniqueidentifier



Effective Databases

RFM ScoringRFM Scoring

FrequencyFrequency

RecencyRecency MonetarytransactionsMonetary

transactions

RFM stands for the recency, frequency, and monetary transactions between the company and the customer.

The goal is to have data that is recent. Marketers also want to know how recently people have purchased and how much money they spent.

Analysis of this information can identify trends and buying patterns that will help in the establishment of better relationships and meeting consumer needs.


A Direct Response Print Ad

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Direct mailDirect mail CataloguesCatalogues

Broadcast media

Broadcast media

Electronic teleshoppingElectronic

teleshopping

InfomercialsInfomercialsHomeshoppingHomeshopping

Print mediaPrint media

Telemarketingand SMS

Telemarketingand SMS

Direct Marketing Media

MediaMedia


Porsche Targets Prospects with Direct Mail

2009 McGraw-Hill Aust Pty Lty Belch & Belch USA 2009


Seasonal Catalogues



Unwrapped Catalogue



Ezibuy Catalogue



Telemarketing and SMS

InboundInbound

Telephone calling by the marketer or marketer’s agent to individual prospects, seeking purchase, subscription, membership, or participation by the call recipient.

Marketers facilitate and invite prospects to call a central location via a long distance number, by a toll-free 800 number, or a fixed-cost 900 number.

OutboundOutbound


Australian ‘Do Not Call Register’https://www.donotcall.gov.au/

“Exempt organisations include: charities or charitable institutions educational institutions religious organisations government bodies registered political parties independent members of parliament political candidates. Market and social researchers will still be permitted to call when

conducting opinion polling and standard questionnaire-based research. However, these calls are subject to the industry standard for telemarketing and research calls”.

https://www.donotcall.gov.au/consumerfaq.cfm#exemptAccessed Sept 15th, 2008


One-stepOne-step

• The medium is used to obtain an order

• Goal is to generate an immediate sale

Examples:

• Reply paid coupons

• 1-800 numbers

• The medium is used to obtain an order

• Goal is to generate an immediate sale

Examples:

• Reply paid coupons

• 1-800 numbers

Two-stepTwo-step

• The medium is used for inquiry and to qualify prospects

• Follow up with a second medium to complete the sale

• Also known as permission marketing

• The medium is used for inquiry and to qualify prospects

• Follow up with a second medium to complete the sale

• Also known as permission marketing

Direct Marketing Strategies


Forms of Direct Selling

Repetitive person-to-person: salesperson

visits buyers home, job, other location to sell

frequently purchased items (e.g. Amway).

Nonrepetitive person-to-person: salespersonvisits buyers home, job, other location to sell

infrequently purchased items (e.g. insurance)

Party Plans: a salesperson offers products or

Services to groups of people through home or

Office parties and demonstrations

(e.g. Tupperware, Nutrimetics, Mary Kay)



Thailand T-Shirt Direct MailObjective: Consumers were sceptical about our claim of “Confidence to remove stains in 1 wash”. So, mailers and

sampling activities were needed to prove to consumers that Breeze Excel actually delivered on its promise.

Solution:A t-shirt wrapped box that contained a product sample was mailed

to select women’s social groups across Thailand (including rural areas that are typically hard to reach with TV and press).

The recipients found the box wrapped in the gift which had become dirty in the mail out. So…. the recipients could use the enclosed sample to get their free gift to look clean again.

Reinforces the product promise that one wash would remove the stains.


Direct marketing advantages and disadvantages

DisadvantagesDisadvantages

AccuracyAccuracy

Image factorsImage factors

Content supportContent support

Selective reachSelective reach

Segmentation capabilitySegmentation capability

Frequency potentialFrequency potential

FlexibilityFlexibility

TimingTiming

PersonalisationPersonalisation

EconomyEconomy

AdvantagesAdvantages

Measurement of effectivenessMeasurement of effectiveness


Concerns Raised by Direct Marketing

Intrusiveness

Protection of Privacy Prospect / Customer Knowledge of information: Collected How it will be used How it will be stored who will have access to the information How they can withdraw their name / information and how

easily this can be done.


How Companies Can Protect Customer’s Privacy Educate employees about the company’s privacy policies. Ensure employees know how to implement privacy policies

and how to answer customer questions in this area. Appoint a chief privacy officer. Conduct periodic audits of the company’s online and off-line

privacy practices. Actively promote the company’s privacy policy. Encourage customers to visit sites that educate consumers

about their privacy rights. Educate employees of the dangers of credit-card fraud.


Ethics & IssuesHave you ever been irritated by an organisation having information about you or your family?

QuestionWhat tactics could the company have used to help you feel less irritated?

Discussion Forum Question: Think About It


Evaluating Direct Marketing Effectiveness

DM specific measures

• Cost per order (CPO)

DM specific measures

• Cost per order (CPO)

Non-behavioural objective

Non-behavioural objective

Traditional measures

• Brand awareness

• Brand attitude

• Other measures of brand health

Traditional measures

• Brand awareness

• Brand attitude

• Other measures of brand health

MeasuresMeasures

Behavioural objectiveBehavioural objective



Case Study of the Week

Direct Marketing Campaign for a financial institution


Considering our precious, live cargo – and our need to get it in front of the CFO's, CEO's and owners of our target companies – all pieces were delivered via courier. Additionally, this allowed us to avoid the gatekeeper who could have reacted in any number of ways. Within weeks, 401(k) Squared had secured a $10M account and was in discussions with a number of large companies to manage their 401(k) accounts, ranging in size from $500k to $20M. Always nice setting the fish on the hook.


Headline (outside): If someone's not watching over your 401k, it won't thrive either.

Subhead (inside): A 401k plan is a living, breathing investment that requires constant attention and management to flourish.


Copy (inside): When your 401k plan is bundled with other investments through an insurance provider or paycheck service, you simply don't get that kind of personal service. 401k2 specializes in managing 401k plans full-time, designing programs to maximize returns for the business owner. You'll work directly with the managing partner at 401k2 who will take the time and care to make a targeted plan and to keep it that way. Because we're an independent advisor, we're able to offer and recommend the products that are ideal for your specific business and situation - not a prepackaged, one-size-fits-all solution. Call us and we'll explain more today. 401k2. We live and breathe this stuff


Summary and Conclusions

Research to measure the effectiveness is important to the IMC program.

Not enough companies systematically test their programs. Problems exist with current research methodologies. A variety of research methods – including pretesting and

posttesting – were outlined It is important that effectiveness measures are linked to

campaign objectives. As advertisers continue to search for more cost efficient

means of reaching markets, direct marketing and the internet continue to grow

Advantages of direct marketing include the ability to tightly segment, high level of message personalisation as well as excellent cost efficiency

09 Lecture

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