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Chapter 17

Chapter 17 . Measuring The Effectiveness of Integrated Marketing Communications. Objectives. To understand reasons for measuring promotional program effectiveness To know the various measures used in assessing promotional program effectiveness. Objectives.

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Chapter 17

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  1. 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 Chapter 17 : Measuring the Effectiveness of IMC

  3. Objectives • To evaluate alternative methods for measuring promotional program effectiveness • To understand the requirements of proper effectiveness research Chapter 17 : Measuring the Effectiveness of IMC

  4. The Measuring Advertising Effectiveness Debate • Reasons for measuring advertising effectiveness • Reasons for not measuring advertising effectiveness Chapter 17 : Measuring the Effectiveness of IMC

  5. 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 Chapter 17 : Measuring the Effectiveness of IMC

  6. 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 Chapter 17 : Measuring the Effectiveness of IMC

  7. 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 Chapter 17 : Measuring the Effectiveness of IMC

  8. 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 Chapter 17 : Measuring the Effectiveness of IMC

  9. Decisions for Measuring Advertising Effectiveness • What to test • When to test • Where to test Chapter 17 : Measuring the Effectiveness of IMC

  10. 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 target’s mind • Using a variety of creative tools Chapter 17 : Measuring the Effectiveness of IMC

  11. 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 Chapter 17 : Measuring the Effectiveness of IMC

  12. 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 Chapter 17 : Measuring the Effectiveness of IMC

  13. 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 Chapter 17 : Measuring the Effectiveness of IMC

  14. Post Designed to : 1. Determine if the campaign is accomplishing its predetermined objectives 2. Serve as input into the next period’s situational analysis When to Test Chapter 17 : Measuring the Effectiveness of IMC

  15. 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 Chapter 17 : Measuring the Effectiveness of IMC

  16. Methods of Measuring Advertising Effectiveness • Concept generation and testing • Rough art, copy, and commercial testing • Pretesting of finished ads • Market testing of ads Chapter 17 : Measuring the Effectiveness of IMC

  17. 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 Chapter 17 : Measuring the Effectiveness of IMC

  18. 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 Chapter 17 : Measuring the Effectiveness of IMC

  19. 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 ad’s effectiveness • Consistency in reliability and validity Chapter 17 : Measuring the Effectiveness of IMC

  20. 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 Chapter 17 : Measuring the Effectiveness of IMC

  21. 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 Chapter 17 : Measuring the Effectiveness of IMC

  22. 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 Chapter 17 : Measuring the Effectiveness of IMC

  23. 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 Chapter 17 : Measuring the Effectiveness of IMC

  24. 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 Chapter 17 : Measuring the Effectiveness of IMC

  25. 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 Chapter 17 : Measuring the Effectiveness of IMC

  26. Internet Marketing Effectiveness • Processing and communication effects measures • Online Measuring • Recall and Retention • Non-Response • Surveys • Panels • Sales • Tracking Chapter 17 : Measuring the Effectiveness of IMC

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