Measuring the Effects of a Campaign

1. Measuring the Effectsof a Campaign MKT 846 Professor West

2. Agenda • Measuring the Impact of IMC • PACT Principles • Testing Methods • IMC Audit

3. 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?

4. 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.

5. 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

6. 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.

7. 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)

8. 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)

9. 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

10. 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

11. Marketing Communication Model Medium/Channel MM Noise Filter AE

12. 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 Basic Communication Model

13. Purchase Retention Acceptance/ Yielding Attention Comprehension Exposure Delayed Recall Scanner Data Attitude, Purchase Intent Listener Recognition Recall, Checklists Circulation, Reach Information Processing • McGuire Model Testing Ad Effectiveness

14. Hierarchy of Effects Models

15. Persuasive Communication Temporary attitude shift • Motivated to Process? • Involvement • Relevance, etc. Yes No • Peripheral cue present? • Source characteristics • Visual imagery • Executional elements Yes No • Ability to Process? • Issue familiarity • Arousal, etc. Yes No Nature of Cognitive Processing Mostly Mostly Mostly Favorable Unfavorable Neutral Thoughts Thoughts Thoughts Retain Initial attitude • Cognitive Structure Change • New cognitions adopted • Different responses No Elaboration Likelihood Model Yes Yes Boomerang: enduring negative attitude change Persuasion: enduring positive attitude change

16. The FCB Planning Grid

17. 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

18. 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

19. The Value of Pretesting (Concept testing) • McCollum Speilman Worldwide studied 4,637 on-air commercials used to build normative measures. Percentage

20. 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.

21. 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.

22. 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

23. 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

24. 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

25. 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

26. Performance Measures (Evaluative Testing) • Measuring performance requires baseline measures • Tracking studies are very useful in establishing baseline and performance measures

27. 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?

28. 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?

29. 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?

30. 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

31. 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?