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652 Belch: Advertising and Promotion, Sixth Edition Figure 19-22 Heart-wear.com hits, 2002 4,500 US Weekly (Issue 385) YM (July 2002) US Weekly (Issue 386/387) 4,000 VI. Monitoring, Evaluation, and Control Teen People (May 2002) 3,500 3,000 Victoria’s Secret .... 19. Measuring the Effectiveness of the Promotional Program 2,500 2,000 1,500 1,000 500 0 © The McGraw−Hill Companies, 2003 27-Sept-02 22-Sept-02 17-Sept-02 12-Sept-02 7-Sept-02 2-Sept-02 28-Aug-02 23-Aug-02 18-Aug-02 13-Aug-02 8-Aug-02 3-Aug-02 29-July-02 24-July-02 19-July-02 14-July-02 9-July-02 4-July-02 29-Jun-02 24-Jun-02 19-Jun-02 14-Jun-02 9-Jun-02 4-Jun-02 30-May-02 25-May-02 20-May-02 15-May-02 10-May-02 5-May-02 30-Apr-02 25-Apr-02 20-Apr-02 15-Apr-02 10-Apr-02 5-Apr-02 31-Mar-02 26-Mar-02 21-Mar-02 16-Mar-02 11-Mar-02 6-Mar-02 1-Mar-02
Belch: Advertising and Promotion, Sixth Edition VI. Monitoring, Evaluation, and Control 19. Measuring the Effectiveness of the Promotional Program and the value of measuring their contribution to the program’s success. Also departing from the specific focus on advertising are the awards given by the London-based Institute of Practitioners, which in 2002 opened the competition for the first time to nontraditional media as well as public relations, sales promotions, and other entries. 45 As noted throughout the chapter, a number of studies have been implemented to determine the combined effects of two or more media as well as their synergistic impact. Before we close, we would like to cite one final example of the impact of a combination of media. This case is particularly interesting because it demonstrates that companies do not have to be as large as Microsoft, spend millions of dollars on communications, or employ large research agencies to measure effectiveness. Heart-wear, a small jewelry 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 (see Figure 19-22). In March, the average number dropped. Then the jewelry 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 jewelry 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 catalog 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. Summary This chapter introduced you to 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. We arrived at a number of conclusions: (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, we reviewed the criteria for sound research and suggested some ways 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. 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 provided by syndicated research firms such as Ipsos-ASI, MSW, Arbitron, and A. C. Nielsen. Many companies have developed their own testing systems. There has been an © The McGraw−Hill Companies, 2003 increase in testing through the Internet. Single-source research data were discussed. These singlesource 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 behaviors. 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.
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IN2 Name and Company Index Belch: A
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