Session 11-12

Advtg Research, Evaluation of

Campaign Effectiveness and Role of an
Ad Agency
 Learning objectives
1. To understand the components of advertising
research
2. To evaluate alternative methods for conducting
measures of advertising effectiveness
3. To understand the role and functions of a Full
Service Agency
 Advertising Research
Strategic Evaluative

1. Data Collection 2. Strategy Document • Pre-campaign

• Sec. research • Mktg objectives • Mid- campaign

• The product
• Primary • The target audience • Post-campaign
research • The promise and
support
• The brand personality
 Measuring Advertising Effectiveness

What to test Where to test

• Source factors • Laboratory tests
• Message variables • Field tests
• Media strategies
• Budget decisions

How to test When to test

• Testing guidelines • Pre-testing
• Appropriate tests • Post-testing
Testing Methods
 Concept Testing

Objective Explores consumers’ responses to ad concepts

expressed in words, pictures, or symbols

Method Alternatives are exposed to consumers

who match the target audience
Reactions & evaluations sought through focus groups,
direct questioning, surveys
Sample sizes depend on the number of concepts and
consensus of responses

Output Qualitative and/or quantitative data evaluating and

comparing alternative concepts
 Focus Groups
Appeal
• Results easily obtained, observable, immediate
• Multiple issues can be examined
• In-depth feedback is obtained

Drawbacks
• Results not quantifiable
• Sample size too small
• Group influence may bias responses
• Some members may dominate discussion
• Participants become instant “experts”
• Members may not represent target market
• Results may be given too much weight
 Market Testing of Ads

Inquiry Tests Recognition Tests

Testing

Tracking Studies Recall Tests

 Advertising Evaluation Matrix
Instructions
Use this tool to evaluate new advertisements that you currently have in
development.

1. In the "Advertisement Evaluation" tab, change the weighting for each

evaluation criteria to suit your specific needs.

2. For each concept, rank the current potential of each product based on the
scale provided for each parameter.

3. View the Totals at the bottom of the matrix to evaluate the overall potential for
each product.

4. Evaluate which concept may be the most feasible, competitive, etc. in the
current market.
 Concept Concept Concept
Evaluation Criteria Weight
A B C
Engaging - Does the advertisement stop the reader and engage them to learn more about our offering?
Rate on a scale (1-10) 5% 7 8 10
Credibility - Does the advertisement make credible claims and back them up? Will your audience believe
you?
Rate on a scale (1-10) 10% 2 7 7
Impression - Does the ad create a lasting impression? Would the ad be remembered in a future survey?
Rate on a scale (1-10) 15% 5 8 7
Action-Oriented - Does the advertisement have a strong, clear, and obvious call-to-action?
Rate on a scale (1-10) 10% 10 9 7
Significance - Does the advertisement promote features, advantages, and benefits that the target audience
cares about?
Rate on a scale (1-10) 15% 2 7 9
Integrated - Is the advertisement part of an integrated, multi-channel, campaign that reflects our brand &
core messaging?
Rate on a scale (1-10) 5% 7 5 7
Brand (Service) - How effectively does the advertisement promote our 'service' brand attribute?
Rate on a scale (1-10) 10% 7 7 5
Brand (Innovation) - How effectively does the advertisement promote our 'innovation' brand attribute?
Rate on a scale (1-10) 10% 7 8 7
Brand (Quality) - How effectively does the advertisement promote our 'quality' brand attribute?
Rate on a scale (1-10) 20% 7 9 7
Weighted Totals 100% 5.8 7.8 7.3
 The Ad Agency’s Role

Reasons for using an ad agency

• Highly skilled specialists
• Specialization in a particular industry
• Objective viewpoint of the market
• Broad range of experience
Participants in the IMC Process
 Full service agency: Departments and Functions
Board of Directors

Chief executive

Account directors

Account executives

Marketing Media Plng Creative Production Admn

Secretarial
Mktg Space Airtime Copy- Studio TV Print
Research buying Spot writing buying
buying Library

Script Art Hiring Accounts

writing Buying Prodn
co.
 Role of Account Planning in
Devpt and Execution of an Ad Campaign

Initial Briefing Activities

• The budget • Report to the Agency
head
• The company • Report to the deptl heads
• The pdt/service • Preparing the campaign
• Presentation to the client
• Market
 Copy platform
• Distribution  The visual treatment,
• Name  Layout,
 The choice of media,
• Price  The date, sizes and spot
• Packaging duration
 Media vehicle chosen,
• Competition
etc.
 Full-Service Agencies

Planning Performing
Full range of advertising research
marketing
communication Creating
Selecting media
advertising
and promotion
services Producing
advertising

Strategic market Interactive

planning capabilities
Nonadvertising
services Sales
Package design
promotions

Direct Public relations

marketing and publicity
 Agency Services

Account Marketing Creative Mgmt &

Services Services Services Finance

The link Research Creation, Accounting

between department execution
agency and of ads Finance
client May include
account Copywriter Human
Managed planners artists, resources
by the other New
account Media dept. specialists
obtains business
executive generation
media
space, time
Direct Marketing Agency Activities

Direct-Marketing Agency Services

Database
Media services
management

Direct mail Creative capabilities

Research Production
Sales Promotion Agencies

Promotional planning

Creative research

Tie-in coordination

Fulfillment

Premium design and

manufacturing

Catalog production

Contest/sweepstakes
management
 Functions Performed by Public Relations Firms

Strategy Public Special

development affairs events

Generating News releases, Managing

publicity communication crisis

Coordination
Lobbying Research w/promotional
areas
Functions Performed by Interactive Agencies

Interactive Media Creation

Websites
Banner ads
Search engine optimization
Mobile marketing
Social media campaigns
Digital media
 Collateral Services
Typical collateral services
• Marketing research
• Package design
• Consultants
• Photographers
• Printers
• Video production
• Event marketing
Thank you
 Session 13-14
Sales Promotion: Strategies and SP Campaigns
 Learning objectives
1. To understand the role of sales promotion in
company’s IMC programme
2. To examine the various objectives of sales promotion
programmes
3. To examine the types of consumer- and trade-
oriented sales promotion tools
Reasons for sales promotion increases
• Growing power of retailers
• Declining brand loyalty
• Increased promotional sensitivity
• Brand proliferation
• Fragmented consumer markets
• Short-term focus of marketers
• Increased accountability
• Competition
• Clutter
How are sales affected by sales promotion

• Brand switching
• Repeat buying
• Purchasing more or accelerating timing
• Increasing category expansion and
consumption
 Sales promotion design issues
• Promotion choice
• Immediate value offer or delayed value
offer
• Price-cut vs extra value offer
• Product choice
• Choice of market areas
• Promotion timing, duration and frequency
• Rate of discount, Terms and Conditions
 Sales Promotion

“A direct inducement that offers

an extra value or incentive for
the product to the sales force, distributors, or
ultimate consumer with the primary objective of
creating an immediate sale”
 Sales Promotion Vehicles
Consumer-Oriented Trade-Oriented
Samples Contests, incentives

Coupons Trade allowances

Premiums POP displays

Contests/sweepstakes Sales training programs

Refunds/rebates Trade shows

Bonus Packs Cooperative advertising

Price-off deals

Frequency programs

Event marketing
 Sale Promotion Concerns

Negative impact of sales promotions

• Fewer dollars to build brand equity
• Encourages consumers to purchase on the basis of price
• Detracts from the value of the brand
 Objectives of Consumer-Oriented
Promotions

Increase
consumption of an
established brand

Obtain trial Defend (maintain)

and purchase current customers

Enhance IMC
Target a
efforts and build
specific segment
brand equity
 Sampling Methods

Door-to-door

Methods Direct mail

In-store
On package

Events

Newspaper/magazine insert

Other methods
 Sampling

Sampling Works
Best When

Products are
Purchase cycle
Products are of divisible and can
is relatively
relatively low be broken into
short so the
unit value, so small sizes that
consumer can
samples don’t reflect the
soon purchase
cost much products features
again
and benefits
 Contests and Sweepstakes

Promotion where winners are

Sweepstakes determined purely by chance.
Cannot require proof of purchase
as a condition for entry

Winners chosen by random selection from pool of

entries or generation of a number to match those
held by game entrants

Consumers compete for prizes or money on the

basis of skills or ability

Winners determined by judging entries

Contest or ascertaining which entry is closest
to predetermined criteria
 Trade Oriented Promotions

Obtain distribution for new

products
Objectives
Maintain support for
established brands

Encourage display of
products

Build retail inventories

 Types of Trade Oriented Promotions

Contests and incentives

Co-op Advertising
Types
Trade allowances

POP displays

Sales training

Trade shows
 Cooperative Advertising

Trade-oriented cooperative advertising

• The cost of advertising is shared by more than one
party
Forms
• Horizontal
• Ingredient-sponsored
• Vertical
Thank you
 Session 15
Public Relations, Publicity and
Corporate Advertising
 Learning objectives
1. To recognize the role of PR, publicity, and corporate
advtg in promotional mix
2. To understand the reasons for corporate advtg
3. To understand the different forms of corporate advtg
 Public Relations Defined

A management function
Which evaluates public attitudes
And identifies the policies and procedures
Of an organization with the public interest
And executes a program of action (& communication)
To earn public understanding and acceptance
 Determining Public Relations Audiences

Internal or Associated External or Independent

• Employees • The Media
• Stockholders and • Educators
Investors
• Civic & Business
• Community Members Organizations
• Suppliers and • Governments
customers
• Financial Groups
 Marketing Public Relations Functions
• Build market excitement before media ads break
• Defend products at risk, give consumers reason to buy
• Create ad news where there is no product news
• Introduce a product with little or no advertising
• Provide a value-added customer service
• Build brand-to-customer bonds
• Influence the influentials
• Improve ROI
 Implementing the PR Program

Press
Releases

Press
Interviews
Conferences

PR Tools

The
Exclusives
Internet
Community
Involvement
 Advantages of Public Relations

Credibility

Image Cost
Building Savings

PR
Provides

Avoidance
Selectivity
of Clutter
Lead
Generation
 Corporate Advertising

An extension of the PR function

Does not promote a specific

product or service

Promotes the organization

Assuming a position
Image Seeks
on an issue or
enhancement involvement
cause
 Objectives of Corporate Advertising

Create a positive
image for the firm
Communicate
Establish
the
diversified
organization’s
company identity
viewpoint

Objectives

Help newly
Boost employee
deregulated
morale
industries
Smooth labor
relations
 Types of Corporate Advertising

Image Advertising General Image Ads

Positioning Ads
Event
Sponsorships
Sponsorship
Recruitment
Advocacy
Advertising Financial Support

Cause-related
Advertising
 Change in Corporate Identity
Reasons
• Changes in ownership structure
• Change in corporate strategy
• Change in competitive position
• Change in External environment
 Changing the name from MICO to Bosch

MICO
• MICO (Motor Industries Company Ltd) started by Bosch in India
in 1951
• Known for quality and reliability for more than 50 years in India
• Majority customers in semi-urban and rural areas

BOSCH
• Robert Bosch GmbH with revenue of 47 bn euros in 2010
• Founded in Stuttgart, Germany
• By changing the corporate brand to “Bosch”, amalgamating the
local brand with its global partner

“Multiplicity of audiences, messages, business divisions, media

at to the complexity in communication”
 Communication of change in Corporate
Identity
• Strategic Communication
• Constituency-focused approach
• Dual branding
• Integrated messaging
• Measurement
 Constituency focused approach to
communicating change in Corporate Identity

CONSTITUENCIES MESSAGES MEDIA

Primary Secondary
Customers All Corporate advtg Advtg,
Constituencies Product advtg Direct Contact program,
Direct marketing
All Media Public relations Press releases,
Constituencies Interviews,
Familiarization trips
Opinion Customers Meeting social and Advtg, One-to-one
Leaders political expectations Meetings
Communities NGOs, Media Building local Philanthropy, Events
connect
Employees Customers, De-identification with
Families old, Identification
with new
Thank you
 Session 17-18
Direct Marketing, Digital & Interactive Media
 Learning objectives
1. To understand the strategies and tactics involved in
direct marketing
2. To understand the role of the Internet and interactive
media
Direct Marketing
 Direct Marketing Defined

…an interactive system of marketing which

uses one or more advertising media to effect
a measurable response and/or transaction
at any location
 Growth of Direct Marketing
• Changing marketing environment
• Cost efficiencies
• Target marketing
• Database technologies
• Technological advances
• Effectiveness measures
 Direct Response Media
• Direct mail
• Catalogs
• Broadcast media
• Infomercials
• Teleshopping
• Print media
• Telemarketing
Digital and Interactive Media
Internet Communications Objectives
• Create Awareness
• Generate Interest
• Disseminate Information
• Create an Image
• Create a Strong Brand
• Stimulate Trial
• Create Buzz
• Gain consideration
 Advertising on the Internet
• Banner ads
• Sponsorships
• Pop-ups/Pop-unders
• Interstitials
• Links
• Paid search
• Behavioural Targeting
• Contextual ads
• Rich Media
 Internet Search Advertising
Search Engine Marketing
• The entire set of techniques and strategies used to
direct visitors from search engines to marketing web
sites
Paid Placement
• Text-only ads targeted to keyword search results on
search engines
• Offered through programs such as Google AdWords,
Yahoo Search, or Microsoft Bing
• Sometimes referred to as paid placement, pay-per-click,
cost-per-click advertising
 Internet Search Advertising
Behavioral Targeting
• Targeting online ads to consumers based on their Web
searching behavior
Contextually Targeted Ads
• Text ads targeted to the content of web pages using programs
such as Google AdSense and Yahoo Search Content
• Placement of ads determined by content of the web page
where they are shown
Organic Search Optimization
• Using a range of techniques to improve how well a site or page
is listed in search engines for specific topics
 Paid Search
Online search-based advertising
• Advertiser pays only when a Web surfer clicks on their link
from a search engine page
• Search ads appear in a specified, sponsors-only area near
the search results for that phrase
Advertisers bid on search keywords
• Prices for popular search terms
• Background check - $1.18 per click
• Car loan - $1.34 per click
• Refinance - $4.46 per click
 Social Media

• Online technologies and practices that people use to

share content, opinions, insights, experiences,
perspectives and media themselves
• Created, initiated, circulated and used by consumers
intent on educating one another about products,
brands, services, people and other topics of interest
 Examples of Social Media

Social networking MySpace, Facebook, Twitter

Creativity work sharing • Video (youtube)
• Photos (Flickr)
• Music (Jamendo)
User-sponsored blogs Cnet.com
Company-sponsored • Blogs
sites • Cause/help sites (Dove
Campaign for Real Beauty)
Business networking LinkedIn
Collaborative Wikipedia
Commerce communities Ebay, Amazon
 Measures of Internet Effectiveness
• Clicks
• Post-click conversions
• Cost per conversion
• Unique visitors
• Average frequency
• Frequency to Conversion Radios
• Ad exposure time
• Ad interaction rate
• View-through rate
• Visits
• Webpage eye tracking
• Offline sales lift
• Cross-media models
Traditional Measures of Effectiveness

Tracking ROI

Sales

Recall and
Surveys
retention
Thank You