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Evaluation and control

Evaluation and control. Lecture 1 0 Mamurjon Rahimov Uuooi.org Wiut.uz. I know that half of the money I spend on advertising is wasted, the trouble is I don’t know which half. John Wanamaker. Difficulties in Evaluating Advertising. Influence of other factors on behaviour.

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Evaluation and control

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  1. Evaluation and control Lecture 10 Mamurjon Rahimov Uuooi.org Wiut.uz

  2. I know that half of the money I spend on advertising is wasted, the trouble is I don’t know which half. JohnWanamaker

  3. Difficulties in Evaluating Advertising Influence of other factors on behaviour

  4. Difficulties in Evaluating Advertising Delayed impact of advertising

  5. Difficulties in Evaluating Advertising Consumers change their mind in the store

  6. Difficulties in Evaluating Advertising Goal of ad may be to build brand equity, not increase sales so whatyou intend to measure is important to clarify.

  7. An IPA report stated that 23 per cent of finance directors said that if business costs were under pressure they would cut marketing and advertising before anything else. Farrow, cited in Fill, 2006

  8. Why to evaluate? • Improved decision making

  9. Why to evaluate? • Risk reduction

  10. Why to evaluate? • An improved campaign

  11. Why to evaluate? • Cost savings

  12. Why to evaluate? • Improved decision making • Risk reduction • An improved campaign • Cost savings • Accumulated wisdom

  13. Roberto Goizueta speaks on the importance of ACCUMULATED WISDOM.

  14. None of the currently available evaluation procedures can be considered as perfect measures. However, it is far better to acknowledge their imperfections and use them to the best effect and gain insights rather then not to evaluate at all. • Reliance on evaluation measures should never be to the extent that they replace executive judgement. They should aid it, but not act as a substitute for it. Pickton and Broderick, 2005

  15. Each element within the marketing communications mix can be evaluated in terms of: • Efficiency – _ _ _ _ _ _ _ _ _ _ _ _ • Effectiveness – _ _ _ _ _ _ _ _ _ _ • Economy – _ _ _ _ _ _ _ _ _ _ _ _

  16. Message Evaluations TWO BROAD CATEGORIES: • Message Evaluation Program

  17. Message Evaluations TWO BROAD CATEGORIES: • Message Evaluation Program • Evaluating Respondent Behaviours

  18. Message Evaluations TWO BROAD CATEGORIES: • Message Evaluation Program considers: • COGNITIVE: Recall, Recognition…(often both quantitative and qualitative)

  19. Message Evaluations TWO BROAD CATEGORIES: • Message Evaluation Program considers: • COGNITIVE: Recall, Recognition…(often both quantitative and qualitative) • AFFECTIVE: Peripheral cues such as emotion, attitude…(typically qualitative)

  20. Message Evaluations TWO BROAD CATEGORIES: • Message Evaluation Program considers: • COGNITIVE: Recall, Recognition…(often both quantitative and qualitative) • AFFECTIVE: Peripheral cues such as emotion, attitude…(typically qualitative) • Evaluating Respondent Behaviours: • Observing and measuring visible customer actions: store visits, inquiries, purchases (typically quantitative)

  21. Match Method with IMC Objective • Conduct Pre and Post test analyses • Levels of Analysis: • Short-term outcomes (sales, redemption rates)

  22. Match Method with IMC Objective • Conduct Pre and Post test analyses • Levels of Analysis: • Short-term outcomes (sales, redemption rates) • Long-term results (brand awareness, loyalty and equity)

  23. Match Method with IMC Objective • Conduct Pre and Post test analyses • Levels of Analysis: • Short-term outcomes (sales, redemption rates) • Long-term results (brand awareness, loyalty and equity) • Product-specific awareness

  24. Match Method with IMC Objective • Conduct Pre and Post test analyses • Levels of Analysis: • Short-term outcomes (sales, redemption rates) • Long-term results (brand awareness, loyalty and equity) • Product-specific awareness • Corporate Awareness

  25. Match Method with IMC Objective • Conduct Pre and Post test analyses • Levels of Analysis: • Short-term outcomes (sales, redemption rates) • Long-term results (brand awareness, loyalty and equity) • Product-specific awareness • Corporate Awareness • Affective Responses (like/dislike)

  26. Evaluation and control Lecture 10/Part 2 Mamurjon Rahimov Uuooi.org Wiut.uz

  27. MESSAGE EVALUATIONS • Storyboarding to develop • Test in focus group • Market Test

  28. MESSAGE EVALUATIONS - Approaches • CONCEPT TESTING: • Focus on content of ad and impact thereof on customer • Usually Focus Groups • COPY TESTING • Used when piece is near finished, prior to production • PORTFOLIO TEST: display print ads • THEATRE TEST: display TV ads • Mall intercept technique (pre-test)

  29. MESSAGE EVALUATIONS - Approaches • RECALL tests: • What do you recall over a span of time as well as information about the ad(s) that they remember • Day-after recall (DAR) • Unaided recall • Aided recall • RECOGNITION tests: • Give copy of ad and ask if they recognize or have seen it before • Attitude and Opinion • Emotional Reaction • Physiological Arousal • Persuasion

  30. Items Tested for Recall • Product name or brand • Firm name • Company location • Theme music • Spokesperson • Tag line • Incentive being offered • Product attributes • Primary selling point of communication piece

  31. EVALUATION CRITERIA Establish Quality Evaluation Criteriasuch as PACT (positioning advertising copytesting) • Should be relevant to objectives being measured • Agreement on how the results will be used • Use multiple measures to evoke more precise evaluations • Test should be based on some theory or model of human behaviour • Consider multiple exposures • Validity necessitates that comparative tested ads are in the same stage of their development process • Adequate Controls to prevent biases and external factors • Samples must be “representative” • Tests should be Reliable and Valid (generalizable)

  32. BEHAVIOURAL EVALUATIONS • Sales and redemption rates • Test Markets • Purchase Simulation Tests

  33. EVALUATING PR • Count clippings (hits) – clipping servicesΔ of company name count in relation to news release activity • Calculate number of impressions (hits) – subscriber count within medium • Advertising equivalence technique – find every place company name mentioned in print and broadcast media divided into the cost to produce if it was planned advert.

  34. EVALUATING THE OVERALL IMC PROGRAM • Peter Drucker identified goals that define overall well-being of a company: • Market Share • Level of Innovation • Productivity • Physical and Financial Resources • Profitability • Manager performance and development • Employee performance and attitudes • Social Responsibility • IF these goals are being reached, the IMC plan is likely in good order.

  35. Evaluation of sales promotions • Pretesting sales promotions with consumers • Pretesting sales promotions in the trade channels • Posttesting sales promotions

  36. Evaluation of personal selling • Qualitative (subjective evaluations of salesperson’s attitude, product knowledge, customer knowledge, appearance, absenteeism, presentation skills) • Quantitative can vary from purely behaviour-based (control the input e.g. how many calls were made) to purely outcome-based (measure the output e.g. how many sales were generated) control strategy.

  37. Evaluation of PR • Input indicators – measure PR efforts (e.g. number of news stories disseminated, trade meetings organised, brochures sent etc.) • Output indicators – measure the result of PR activity in terms of media coverage and publicity (e.g. press space, TV time devoted to the company, readership levels, etc.) • Achievement indicators – measure the extent to which a pre-specified objective has been met with a public of interest (e.g. the share of target audience that has been reached, changes in awareness and knowledge, evolution of image etc.)

  38. Evaluation of sponsorship • Exposure • Communications results • Feedback from participating groups

  39. Evaluation of integration x x x x x x x

  40. Ethics in marketing communications

  41. ? What is ethics

  42. ethics   (noun) the study of what is morally right and what is not (from Cambridge Advanced Learner's Dictionary)

  43. Some notion of morality, of “right” and “wrong” Ethics

  44. Ethics… OK, but… • Who decides what is “right” and what is “wrong”? • Is there an absolute “truth”? • Or is it a process of negotiation? • Is it “culturally specific”? • Are there any basic principles?

  45. What might be some unethical marketing practices? “Getting people to buy or want things they don’t really need”

  46. …some products that are harmful to the people that buy them • Tobacco • Drugs • Alcohol • Sweets/sugary foods/Chocolates • Fatty food • Gambling

  47. May 31 - World No Tobacco Day

  48. What might be some unethical marketing practices? “Selling products in a way that may be hurtful or offensive to some people”

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