BS Thesis In Business Administration Methods of Product - Skemman

success. This criterion needs to be specific, measurable (quantitative), and bounded by
time. It is also important that the criterion be reasonable in light of the current situation
in the marketplace (Pavlou & Stewart, 2000).
As well as the goals, the effectiveness of advertising is divided into two components:
communicative and economical effectiveness.
In evaluating the communication effectiveness determine the level of impact of
advertising on consumers. Some researchers use the concept of “psychological
effectiveness”. This paper considers advertising as a marketing communication channel
to influence the consumer; therefore, we shall stick to the concept of “communicative
effectiveness”. Communicative effectiveness determines the communicative impact of
the advertising message on the target audience: what brand image has been formed,
change in brand awareness (recall and recognition), how accurately the advertising
message has been communicated, etc. (Van Riel & Fombrun, 2007, p. 7).
Economic effect is sometimes also called the sales effect (Kotler & Keller, 2006, p.
584). However, in this paper shall be used the concept of “economic effect”
(Braithwaite, 1928) since it reflects better the impact of advertising on all the range of
economic metrics, while the concept of “sales effect” can be interpreted as rather
narrow – the advertising effectiveness in terms of profit. The economic effect involves
an assessment of the economic feasibility of investments made. Economical
effectiveness usually depends on the communication effectiveness, in other words, the
level of sales depends on the psychological impact of advertising on consumers.
Typically, various commercial organizations set similar objectives and tasks for
advertising companies, therefore, when evaluating the effectiveness, along with an
assessment of the specific task performance the same set of metrics can be used.
A comprehensive method for evaluating the effectiveness of online advertising
offered by the author is intended to review the more complete set of communication
and economic performance metrics (see Table 1) and their relationship with the use of a
single software tool for data collection. The method is based on identification of unique
Internet users affected by advertising with the software tool, with subsequent fixation
of all users’ movements and actions at the stage of interaction with advertising
information.
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