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Measuring the Effectiveness ofthe Promotional Program

19

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

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Measuring the Effectiveness of

the Promotional Program Why to test

What to test

When to test

Where to test

How to test

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Why to TestAvoiding costly mistakes

Evaluating alternatives strategies

Increasing the efficiency of advertisingin general

Determining if objectives are achieved.

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Why NOT to Test Cost

Research problem

Disagreement on what to test

The objections of creative

Time

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What to Test Source factors: spokesperson.

Message variables: message & means.

Media strategies Media decision

Vehicle option source effect

Scheduling: fighting vs. pulsing orcontinuous

Budgeting decisions

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When to Test Pretesting

Pros: feedback is relatively inexpensive.

Cons: less effective than final ads; timedelay.

Posttesting

the current objective & the next objective

Ex. Lowes

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Where to Test Laboratory tests

Pros: control.

Cons: lack of realism testing bias.

Field tests

Pros: realism.

Cons: lack of control; competitors;sabotage; take more time and money.

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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

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The Testing Process Concept generation testing

Rough art, copy, and commercialtesting

Pretesting of finished Ads

Market Testing of Ads

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Concept Generation Testing -

Focus Group Afocus groupis a gathering of 6 to 10

people who are invited to spend a few

hours with a skilled moderator to discuss aproduct, service, organization, or othermarketing entity.

Useful exploratory step Avoid generalizing the reported feelings of

the focus-group participants to the wholemarket.

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Focus group research in progress

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Rough Art, Copy, and

Commercial Testing Comprehension and reaction tests

Consumer juries

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Comprehension and Reaction

Tests Concerns: (1) whether the ad or

commercial conveys the meaning

intended; (2) the reaction the adgenerates.

Personal interview, group interview,

focus groups.

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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 mayovershadow objectivity.

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Pretesting of Finished Ads Pretesting finished print messages

Portfolio tests

Readability tests Dummy advertising vehicles

Pretesting finished broadcast Ads

Theater tests On-air tests

Physiological measures

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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 interviewerinstruction.

Recall may not be the best test.

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Readability Tests

Flesh formula

Consider: syllables, length, familiarity.

Copy is best comprehended when sentencesare short, words are concrete and familiar,and personal references are drawn.

Pros: offer objective standard. Cons: too mechanical, no feedback, no

creativity.

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Dummy Advertising Vehicles

Procedure

Pros: more real than the portfolio test.

Cons: testing bias; product interest.

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Theater Tests

Procedure

Pros: control; the established norm;

identify strong or weak commercials.

Cons:

Too artificial

Participants collaboration

Group effect

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On-Air Tests

Insertion in TV programs in specificmarkets

Limitations are imposed by day-afterrecall

Sources of measurement errors:

The position of the ad The adjacent program content

The number of commercials shown

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Physiological Measures

Pupil dilation

Galvanic skin response

Eye tracking

Brain waves

Alpha activity

Hemispheric lateralization

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Physiological Test Measures

Pupil dilation

Instrument: pupilometer Dilation associated with action

Constriction indicates disinterest

Subject Stimulus Object

Male

Female

NudeFemale

NudeMale

NudeInfant

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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

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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 Scan paths on

Print ads and material Billboards Commercials

Output: Relationships among what is . . .

Seen Recalled Comprehended

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Using EyeTracking to test ads

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Using EyeTracking to TestBanner Ads

Many Internet users largely ignore banner ads.

Static banner ads elicited no reactions in thetraditional physiological measures andanimated ads elicited a mild response, withboth types being less effective than televisionadvertising.

Viewers eyes first went to the text on the newssites, ignoring graphics and ads, but they laterviewed as many as 45 percent of the banners thought only for an average of one second.

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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

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Marketing Testing of Ads

Posttests of print ads Inquiry tests Recognition tests

Recall tests Posttests of broadcast commercials

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

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Inquiry testsmeasure the effectivenessbased on inquires generated from adsappearing in various print media

Informal inquiry of customers, prospectAds in successive issues, same mediumSplit-run tests, different ads, same medium

Runs of same ad, different media

Ad Response Methods

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Ad Response MethodsMethods used frequently or very frequently by 2705

respondents

41%

35%

30%

26%

31%28%

23%

22%

21%

20%

20%

17%

15%

10%

6%

0% 10% 20% 30% 40% 50%

Mail notes to vendors

Send e-mail messages

Contact distributors' websites

Send faxes to vendors

Discuss products with sales reps

Stop at vendors' trade show exhibits

Go to magazine websites

Telephone local distributors/reps

Telephone manufacturers

Contact vendors' websitesSend back reply cards/coupons

DIRECT METHODS

Pass ads on to others for possible action

Discuss advertising products with others

Save ads for reference

Return reader service cards

INDIRECT METHODS

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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

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A Starch Scored Advertisement

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Gallup-Robinson Magazine Impact ResearchService- Magazines placed in homes andrespondents are asked to read them. A telephone

interview is conducted a day later.

Measures:

Proven Name registration percent who can accuratelyrecall the ad

Idea Communication

number of sales/copy pointsthey can recall

Favorable buying attitude extent of favorablepurchase reaction to brand or company

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Recall Tests

Pros: readers involvement;distinctiveness of ads; test is not strong

enough. Suggestive brand names

Correlation between recall and

recognitionAds with higher recall: likable,

interesting, creative, larger.

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Limitations of Recall Measure

Since recall tests best reflect the degree ofattention and interest in an ad, claims that

the tests predict the ads impact on sales maybe going too far.

Recall is a necessary but not sufficientmeasure.

It is unwise to look to recall for an accurateassessment of commercials sales effect.

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Day-After Recall Tests

The procedure is to telephone 150 to 300program viewers the day after a television

commercial appears. They are asked if theycan identify the brand correctly, they are thengiven the product category and brand andasked if they recalled the commercial. They

are then asked for anything they can recallabout the commercial, what was said, whatwas shown, and what the main idea was.

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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 increasedattention to the program and the ads.

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Diagnostics

Designed to garner viewers evaluations

of ads, as well as how clearly the

creative idea is understood and howwell the proposition is communicated.

Rational and emotional reactions to the

ads are also examined.

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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

Output: Day-after recall and persuasion scores

Purchase intent and frequency

Brand equity differentiation

Relevance, communication and reaction diagnostics

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Test Marketing

Procedure

Ex. Seagram & Time uses three years to

measure the effects of advertisingfrequency on consumers buying habits.

Cons: cost, time, competitors reaction.

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Single-Source Tracking Studies

Track the behaviors of consumers fromthe television set to the supermarket

checkout counter. Procedure

Pros: control, ability to measure directly

the ads effects on sales.