Chapter 19

This chapter talked about the issues involved in measuring the effects of advertising and promotions. These issues include reasons for testing, reasons companies do not test, and the review and evaluation of various
research methodologies.

And the following conclusions were drawn:
(1) Advertising research to measure effectiveness is important to the promotional program,
(2) Not enough companies test their ads, and
(3) Problems exist with current research methodologies.

In addition some ways were suggested to accomplish effective studies. All marketing managers want to
know how well their promotional programs are working. This information is critical to planning for the next period, since program adjustments and/or maintenance are based on evaluation of current strategies. Problems often result when the measures taken to determine such effects are inaccurate or improperly
used.

Throughout the chapter, we talk about the importance of measuring the effectiveness of the promotional program and the value of measuring their contribution to the program’s success. A number of studies have been implemented to determine the combined effects of two or more media as well as their synergistic impact. Companies as large as Microsoft, spend millions of dollars on communications, or employ large research agencies to measure effectiveness. Heart-wear, a small jewellery manufacturer with almost no advertising budget, relies to a large degree on word of mouth and its Internet site as the primary means of creating awareness and interest in the brand. By tracking visitors to its site, Heart-wear was able to determine the impact of having its product appear in various publications, thus getting an indication of the value of publicity.

In February 2002, Heart-wear page requests ranged from a low of 5 to as high as 726 per day, with an average of 199. In March, the average number dropped. Then the jewellery was shown in various magazines—not as an ad but with someone wearing the product or just with a small print name mention. As can be seen, the appearances in Teen People, YM, and US Weekly significantly increased the number of hits to almost 4,000 each time the jewellery appeared. The actual exposures were minimal but still led to significant
increases in visits, with lower numbers associated with no exposure periods. The August and September spikes were associated with appearances in Victoria’s Secret catalogue mailings, with each increase correlated with the mailing period. Sales figures also correlated highly with the site visits.

The Heart-wear example is just one more indication of the value of measuring the effectiveness of the impact of various IMC elements. Perhaps just as important, it indicates that the excuse of not measuring due to costs has little or no merit.

All the advertising effectiveness measures discussed here have their inherent strengths and weaknesses. They offer the advertiser some information that may be useful in evaluating the effectiveness of promotional efforts. While not all promotional efforts can be evaluated effectively, progress is being made.

This chapter demonstrated that testing must meet a number of criteria (defined by PACT) to be successful. These evaluations should occur both before and after the campaigns are implemented. A variety of research methods were discussed. Many companies have developed their own testing systems. There has been an
increase in testing through the Internet. Single-source research data were discussed. These single source systems offer strong potential for improving the effectiveness of ad measures in the future, since commercial
exposures and reactions may be correlated to actual purchase behaviours.

It is important to recognize that different measures of effectiveness may lead to different results. Depending
on the criteria used, one measure may show that an ad or promotion is effective while another states that it is not. This is why clearly defined objectives and the use of multiple measures are critical to determining the true
effects of an IMC program.

Media, Planning and Strategy

Internet and Interactive Media

                       

Creative Strategy: Planning and Development

Advertising creativity is the ability to generate fresh, unique, and appropriate ideas that can be used as solutions to communications problems. It is important for ads to be appropriate and effective. A creative idea must be relevant to the target market. A lot of advertisement agencies understand how important is to develop creative and different ad campaign that communicates relevant information.

The Creative Challenge

The job of the creative team is challenging because each marketing challenge is different and every advertisement campaign may require disparate creative approaches. Numerous guidelines have been suggested for creating effective advertising, yet there is not one great way of doing it. As copywriter Hank Sneiden notes in his book Advertising Pure and Simple: ‘Rules lead to dull stereotyped advertising, and they stifle creativity, inspiration, initiative, and progress. The only hard and fast rule that I know of in advertising is that there are no rules. No formulas. No right way. Given the same problem, a dozen creative talents would solve it a dozen different ways. If there were a sure-fire formula for successful advertising, everyone would use it. Then there’d be no need for creative people. We would simply program robots to create our ads and commercials and they’d sell loads of product—to other robots’

The Creative Process

Young’s model of the creative process contains five steps:

1.       Immersion: Gathering raw material and information through background research and immersing yourself in the problem.

2.       Digestion: Taking the information, working it over, and wrestling with it in the mind.

3.       Incubation:  Putting the problems out of your conscious mind and turning the information over to the subconscious to do the work.

4.       Illumination: The birth of an idea—the “Eureka! I have it!” phenomenon.

5.       Reality or verification:  Studying the idea to see if it still looks good or solves the problem; then shaping the idea to practical usefulness.

Young’s process of creativity is similar to a four-step approach outlined much earlier by English sociologist Graham Wallas:

1.       Preparation:  Gathering background information needed to solve the problem through research and study

2.       Incubation:  Getting away and letting ideas develop

3.       Illumination:  Seeing the light or solution

4.       Verification: Refining and polishing the idea and seeing if it is an appropriate solution.

Account Planning

Most of the agencies now use account planning, which is a process that involves conducting research and gathering all relevant information about a client’s product or service, brand, and consumers in the target audience.

Inputs to the Creative Process: Preparation, Incubation, Illumination

Background Research

The creative specialist should understand and research about about general trends, conditions, and developments in the marketplace, as well as on specific advertising approaches or techniques that might be effective.

Product/Service-Specific Research

This is done using studies conducted on the product or service, the target audience, or a combination of the two. Quantitative and qualitative consumer research such as attitude studies, market structure and positioning studies such as perceptual mapping and lifestyle research, focus group interviews, and demographic and psychographic profiles of users of a particular product, service, or brand are examples of product-specific preplanning input.

Qualitative Research Input

Various quantitative research studies and qualitative research techniques such as in-depth interviews or focus groups can provide the creative team with valuable insight at the early stages of the creative process. Focus groups are a valuable research tool whereby consumers from the target market are led through a discussion. They tell us why and how consumers use a product or service, what is important to them in choosing a particular brand, what they like and don’t like about various products or services.

The California Milk Processor Board has used both quantitative and qualitative research in developing the popular “Got milk?” advertising campaign. Focus groups and survey research studies were conducted to help understand companion foods that are consumed with milk and how consumers react to the effect of “milk deprivation,” which is the key idea behind the humorous ads in the campaign

Research helped in the development of the popular “got milk?” campaign

Inputs to the Creative Process: Verification, Revision

This evaluates ideas generated during the illumination stage, rejects inappropriate ones, refines and polishes those that remain, and gives them final expression. Techniques used at this stage include directed focus groups to evaluate creative concepts, ideas, or themes.

Creative Strategy Development

Advertising Campaigns

Most ads are part of a series of messages that make up advertising campaign, which is a set of interrelated and coordinated marketing communication activities that center on a single theme. Determining the unifying theme around which the campaign will be built is an important part of the creative process, as it sets the tone for the individual ads and other forms of marketing communications that will be used. A campaign theme should be a strong idea, as it is the central message that will be communicated in all the advertising and other promotional activities

Copy Platform

The written copy platform specifies the basic elements of the creative strategy. Different agencies may call this document a creative platform or work plan, creative brief, creative blueprint, or creative contract.

Basic outline could be:

1.             Basic problem or issue the advertising must address

2.             Advertising and communications objectives

3.             Target audience

4.             Major selling idea or key benefits to communicate

5.             Creative strategy statement (campaign theme, appeal, and execution technique to be used)

6.             Supporting information and requirements

The Search for the Major Selling Idea

One of the most important parts of creative strategy is determining the major selling idea of the ad campaign. As A. Jerome Jeweler states in his book Creative Strategy in Advertising: The major selling idea should emerge as the strongest singular thing you can say about your product or service. This should be the claim with the broadest and most meaningful appeal to your target audience. Once you determine this message, be certain you can live with it; be sure it stands strong enough to remain the central issue in every ad and commercial in the campaign.

The major selling idea behind this Polaroid commercial is that the picture is only the beginning of the story

Some of the best-known approaches that can guide the creative team’s search for a major selling idea are:

1.             Using a unique selling proposition

The concept of the unique selling proposition (USP) was developed by Rosser Reeves.Reeves noted three characteristics of unique selling propositions:

•        Each advertisement must make a proposition to the consumer. Not just words, not just product puffery, not just show-window advertising. Each advertisement must say to each reader: “Buy this product and you will get this benefit.”
•        The proposition must be one that the competition either cannot or does not offer. It must be unique either in the brand or in the claim.
•         The proposition must be strong enough to move the mass millions, that is, pull over new customers to your brand

2.             Creating a brand image

In many product and service categories, competing brands are so similar that it is very difficult to find a unique attribute to use as the major selling idea. The creative strategy used to sell these products is based on the development of a strong, memorable identity for the brand through image advertising

3.             Finding the inherent drama

Another approach is finding the inherent drama or characteristic of the product that makes the consumer purchase it. The inherent drama approach expresses the advertising philosophy of Leo Burnett, founder of the Leo Burnett agency in Chicago. Burnett said inherent-drama “is often hard to find but it is always there, and once found it is the most interesting and believable of all advertising appeals.”

4.             Positioning

The basic idea is that advertising is used to establish or “position” the product or service in a particular place in the consumer’s mind. Positioning is done for companies as well as for brands.

Advertising Design: Theoretical Frameworks and Types of Appeals

The chapter deals with the designing of an advertising campaign by the account executives. The chapter is divided into two parts:

In the first part, we will see three different advertising theories or approaches that guide the advertising campaign design. These theories are

Advertising Theories

1. Hierarchy of Effects Model
2.  Means-End Theory
3.  Visual and Verbal Imaging

Hierarchy of Effects Model

The hierarchy effect model deals with the six steps that a buyer follows while making a purchase decision. The model has number of similarities with the tri component attitude model. These six steps of persuasion are as follows:

• Awareness
• Knowledge
•  Liking
• Preference
• Conviction
• Purchase

Means – End Theory

The means end theory states that an advertisement must contain a message or means that leads the

consumer to a desired end state. It is a basis of a model called MECCAS = means end conceptualization of Components for Advertising Strategy. The five elements stated in the model are as follows:
·         Products Attributes

·         Consumer Benefits                                                                    

·         Leverage Points

·         Personal Values

·         Executional Framework

Types of personal values

Equality	Inner peace	Self-fulfillment	Wisdom
Excitement	Mature love	Security	Happiness
Freedom	Personal accomplishment	Self-respect	Comfortable Life
Fun, exciting life	Pleasure	Sense of belonging	Social Acceptance

E.g.: Means-End Chain for Milk

Attributes	Benefits	Personal Values
Low Fat	Healthy	Self-Respect
		Wisdom
Calcium	Healthy Bones	Comfortable Life
		Wisdom
Ingredients	Good Taste	Pleasure
		Happiness
Vitamins	Enhanced ability	Excitement
		Pleasure
		Fun

Verbal vs. Visual Imaging

1.     Verbal - The greater emphasis is given on words in some of the advertisements in order to evoke the response from the target market

2.   Visual – The visual imagery is considered to be more effective than the verbal message. Visual imagery is stored both as pictures and words in brain and this dual processing increases recall level. Also the visual imagery is considered to be a universal language for the advertisers as an image will depict the same thing for audience belonging to different geographical and cultural settings. However the meaning of a word maybe different for different people. In this respect, the visual imagery is very effective.



In the second part, we will describe seven major types of appeals used by the advertisers.

Fear Appeal

Advertising Appeals
Fear Appeal - Degree of Fear created is considered important by number of advertisers to create desired impact.The way fear works can be described by behavioral response model 

Humor Appeal

     Humor Appeal – The Humor appeal is considered to be very effective to cut  through the clutter

      ·     Used in 30% of the ads

      ·      Should be directly related to customers

Reasons for using Humor in ads

• Captures attention
• Holds attention
• Often wins creative awards
• High recall scores
• Consumers enjoy funny ads
• Evaluated as likeable ads

Music Appeal: Easily linked to emotions, memories and other experiences music is considered to be very effective in increasing the recall level. A jingle is highly effective in a way that even without visual imagery audience can recall the brand associated with the music. Music gains attention and increases the retention of information as it becomes strongly intertwined with the product

• Has intrusive value
• Gains attention and increases the retention
• Can increase persuasiveness of the ad

E.g.: TV ad for Matt uses music appeal

Rational Appeal: Rational appeal follows the assumption that a consumer actively process all the information presented in the advertisement.

•  Based on hierarchy of effects model
• Print media is well suited for rational appeals
• Used by business to business advertisers
• Well suited for complex and high involvement products 

 Emotional Appeal
 1)    Based on three ideas:

Emotional Appeal

•  Consumers ignore most ads
• Rational ads go unnoticed
•  Emotional ads can capture attention

2)  Creatives believe that emotional ads are key to developing brand loyalty

3)  Works well when tied with other appeals

Emotions used in ads:

• Trust
• Reliability
• Friendship
• Happiness
• Security
• Glamour/luxury
• Serenity
• Anger
• Protecting loved ones
• Romance
• Passion
• Family Bonds

Scarcity Appeal: The scarcity appeal tries to convince a customer on the basis of scarcity of a particular product. The scarcity may be in terms of limited availability of product or more often, that product is available only for limited time

• Based on limited supply
• Based on limited time to purchase
• Often tied with promotional tools
• Encourages customer to take action

Sexual Appeal

        Sexual Appeal: The sexual appeal is another kind of appeal which has been used in an innovative way by  number of advertisers

• Breaks through clutter
• Use has increased in ads
• Advertisers shifting to more subtle cues

Structure of an Advertisement

The majority of advertisements follow a particular structure and tend to contain five elements. These are:

• The Promise of a benefit (the headline)
• The spelling out of the promise ( a sub headline)
• Amplification
• Proof of claim
• Action to take

These five parts of the structure of an advertisement must also be contained in the use of the message strategies and executional frameworks.

Establishing Objectives and Budgeting on the Promotional Program

Objectives

§  To recognize the importance and value of setting specific objectives for advertising and promotion.

§  To understand the role objectives play in the IMC planning process and the relationship of promotional objectives to marketing objectives.

§  To know the differences between sales and communications objectives and the issues regarding the use of each.

§  To recognize some problems marketers encounter in setting objectives for their IMC programs.

§  To understand the process of budgeting for IMC.

§  To understand theoretical issues involved in budget setting.

§  To know various methods of budget setting.

The Value of Objectives

§  Communications

o   The advertising and promotional program must be coordinated within the company, inside the ad agency, and between the two. Many problems can be    avoided if all parties have written, approved objectives to guide their actions and serve as a common base for discussing issues related to the promotional program.

§  Planning and Decision Making

o   Promotional planners are often faced with a number of strategic and tactical options in terms of choosing creative options, selecting media, and allocating       the budget among various elements of the promotional mix. Choices should be made based on how well particular strategy matches the firm’s promotional objectives.

§  Measurement and Evaluation of Results

o   An important reason for setting specific objectives is that they provide a benchmark against which the success or failure of the promotional campaign can be measured. Without specific objectives, it is extremely difficult to determine what the firm’s advertising and promotion efforts accomplished.

o   One characteristic of good objectives is that they are measurable.

Determining Promotional Activities

1)      Marketing versus Communications Objectives

                Marketing objectives are generally stated in the firm’s marketing plan and are   statements of what is to be accomplished by the overall marketing program within a given time period. Marketing objectives are usually defined in terms of specific, measurable outcomes such as sales volume, market share, profits, or return on investment. Good marketing objectives are quantifiable realistic and attainable.

                Integrated marketing communications objectives are statements of what various aspects of the IMC program will accomplish. They should be based on the particular communications tasks required to deliver the appropriate messages to the target audience.

                Managers must be able to translate general marketing goals into communications goals and specific promotional objectives.

2)      Sales versus Communications Objectives

a)      Sales-Oriented Objectives

                                                      Fig 1: Factors Influencing Sales

•          Major Problem: Carryover effect

Money spent on advertising do not necessarily have an immediate impact on sales. Advertising may create awareness, interest, and/or favourable attitudes toward a brand, but these feelings will not result in an actual purchase until the consumer enters the market for the product, which may occur later.

b)      Communication Objectives

                                                  Fig 2: Communications Effect Pyramid

                     Fig 3: Effect of advertising on consumers: Movement from awareness to action

DAGMAR: An Approach to Setting Objectives

In 1961, Russell Colley prepared a report for the Association of National Advertisers titled Defining Advertising Goals for Measured Advertising Results (DAGMAR).

The major thesis of the DAGMAR model is that communications effects are the logical basis for advertising goals and objectives against which success or failure should be measured.

Colley proposed that the communications task be based on a hierarchical model of the communications process with four stages:

§ Awareness—making the consumer aware of the existence of the brand or company.

§ Comprehension—developing an understanding of what the product is and what it will do for the consumer.

§ Conviction—developing a mental disposition in the consumer to buy the product.

§ Action—getting the consumer to purchase the product.

1)      Characteristics of Objectives

• Concrete, Measurable Tasks
• Target Audience
• Benchmark and Degree of Change Sought
• Specified Time Period

2)      Assessment of DAGMAR

        Criticisms of DAGMAR

• Problems with the response hierarchy
• Sales objectives
• Practicality and cost
• Inhibition of creativity

Establishing and Allocating the Promotional Budget

1)      Establishing the Budget

While it is one of the most critical decisions, budgeting has perhaps been the most resistant to change. A comparison of advertising and promotional texts over the past 10 years would reveal the same methods for establishing budgets.

Advertisers also use an approach based on contribution margin—the difference between the total revenue generated by a brand and its total  variable costs. But, marginal analysis and contribution margin are essentially synonymous terms.

2)      Theoretical Issues in Budget Setting

                                                                        Fig 4

Assumptions:

•       Sales are a direct measure of advertising and promotions efforts.

•       Sales are determined solely by advertising and promotion.

3)      Sales Response Models

                                                                      Fig 5

4)      Additional Factors in Budget Setting

• Product Factors
•  Market Factors
•  Customer Factors
•  Strategy Factors
•  Cost Factors

5)      Budgeting Approaches

a)      Top-Down Budgeting

                                                                   Fig 6

b)      Bottom-Up Budgeting

                                                                       Fig 7

6)      Other Budgeting Approaches

a)      The Affordable Method: In the affordable method (often referred to as the “all you-can-afford method”), the firm determines the amount to be spent in various areas such as production and operations. Then it allocates what’s left to advertising and promotion, considering this to be the amount it can afford.

b)      Arbitrary Allocation: In this there is no theoretical basis is considered and the budgetary amount is often set by fiat. That is, the budget is determined by management solely on the basis of what is felt to be necessary

c)       Percentage of Sales: Perhaps the most commonly used method for budget setting (particularly in large firms) is the percentage-of-sales method, in which the advertising and promotions budget is based on sales of the product. Management determines the amount by either

(1) Taking a percentage of the sales dollars or

(2) Assigning a fixed amount of the unit product cost to promotion and multiplying this amount by the number of units sold.

Allocating the Budget

1)      Allocation depends on

1. §  Market Size
2. §  Market Potential
3. §  Market Share Goals
4. §  Economies of Scale in Advertising
5. §  Organizational Characteristics

                                I.            The organization’s structure—centralized versus decentralized, formalization, and complexity.

                              II.            Power and politics in the organizational hierarchy.

                            III.            The use of expert opinions (for example, consultants)

                                                                           Fig 8