Advertising

Research,
Promotion and
Media
Submitted by: Group 7
Anirban Gupta (1411075)
Ankit Mishra (1411356)
Ankur Agrawal (1411357)
Gaurav Gulati (1411090)
Mohit Aggarwal (1411169)
Nitesh Jain (1411384)
Subir Roy (1411197)

Advertisement Response
categories

Advertisement recognition

Recall of the commercial

Measure of commercial
persuasion
Impact on purchase behaviour

Advertisement
Recognition

Recognition: It means whether respondents in the survey can

recognise the advertisement as one they have seen before.
Method: The Questionnaires are sent to the target consumers.
Target consumers are based on the brand that is under study.
Selected people are asked if they had watched a specific
advertisement (Television or the print). Their response gets
converted to scores, which is the measure of ad recognition. It is
expressed in percentage of people who responded affirmatively.
Example: We consider the set of people who watched a particular
cricket world cup match. The selected consumers are asked about
the Lays Ad in the match and if they are able to recognize the ad,
this would be considered as an affirmative answer. Hence, Lays Ad is
considered as recognized.

Day after recall measure

(DAR)

Method: Viewers, the day after television a commercial

appears, are asked if they can remember any ad. In case they
do remember the ad under study, they are asked to further
describe what they remember. Then further in-depth
questions are asked like
What was shown
What was said
What the main idea was.
DAR is based on the percentage of viewers who watched the
cricket match, before and after the Lays commercial was
shown, who remembered something specific about it. E.g. the
Limitations:
office
environment shown in the ad initially
Extremely low test correlations have been found when
commercials from same product class are studied
DAR score are unduly affected by the nature of the
program and whether the viewers like the particular
program

Recall, Recognition and

effectiveness of Advertisements
Journal: Differential age-related processing limitations in
recall and recognition tasks. Psychol Aging, 1997
By Whiting WL 4th, Smith AD
Recall requires greater processing capacity than recognition
Older adults have greater processing-capacity limitations than
younger adults.
Journal: How TV advertising Works: A Meta-Analysis of 389
Real World Split Cable TV Advertising Experiments | Journal of
Marketing Research 1995 |
by Leonard M Lodish, Magi D Abraham, Stuart Kalmenson, Jeanne
Livelsberger , Beth Lubetkin, Bruce Richardson And Mary Ellen Stevens

Many of the variables did not differentiate among the sales effects
of different advertising treatments. However, changing
Brand, copy and media strategy in categories with many purchase
occassions in which store-merchandising is low increases
The likelihood of TV advertising positively affecting sales

Persuasion/ the forced exposure

Measures how brand preference changes among consumers after exposure to an

advertisement in a theatre. Started by Horace Schwerin and Paul Lazarsfeldin
1950s and is now done by McCollum/ Spielman, ASI, and ARS

The McCollum/ Spielman Test

1. The test uses a 450 person sample, spread over four geographically
dispersed locations. Respondents are recruited and are asked to come to a
central location where they are seated in a groups of 25 in front of television
monitors and respond to a set of demographic and brand/product-usage
questions that appear on the screen.

2. The respondents view a half hour variety program featuring four professional
performers. At mid point in the program seven commercials, including four
test commercials, are shown in pattern like the one diagrammed below
Performer
Performer
Performer
Performer
P

T
1

T
2

T
3

T
4

S
C = Constant Commercials
Commercials

T = Test

Result of exposure : Clutter/ Awareness score (percentage who recalled that the
brand was advertised) is measured by asking unaided brand name recall
question.

Persuasion/ the forced

exposure (contd)
2nd Exposure :The four test commercials are then exposed a
second time, surrounded by program material, in the below
mentioned pattern
Program
Intro

T
1

T
Program

T
Program

T
Program

Program

Result of second exposure: of An attitude shift (AS) measure is

obtained by comparing the pre exposure preference and post
exposure preferences.
Areas where the test is used for:
1. Comprehension of a message or a slogan
2. Communication of secondary copy ideas
3. Evaluation of demonstrations, spokesperson, message
4. Perception of brand uniqueness or brand differentiation,
5. Irritating or confusing elements,
6. Viewer involvement

Purchase behaviour
Coupon stimulated purchasing:
o Test group is exposed to a set of commercials and
a questionnaire on the commercial is given for
completion.
o Test group is given a packet of redeemable
coupons.
o The selling-effectiveness score is calculated as the
ratio of purchases by viewer shoppers divided by
the purchases by control shoppers.
Split-cable tests:
o Panellists have a device connected to their TV sets
which allows channel selection to be monitored
and substitute one advertisement by another.
o This tests allows us to measure the impact of
specific ads, set of ads, the levels of advertising
budget, the interaction with promotion etc.

TRACKING STUDIES
Studies track changing views of a single set of consumers to
measure interest
Purpose
1.
To evaluate and reassess the advertising campaign
2.
Help with diagonsis, if the campaign is not working well
.Measures tracked in brand tracking studies
1 Brand awareness
2 Usage
3 Brand attitudes
4 Perceptions
5 Purchase intent

TRACKING STUDIES
Measures

Awareness:
o Tracked through brandrecall and recognition measures.
o A brand that it is easily recalled is generally more likely
to be considered for purchase decision
Usage:
o Measured usingfrequency of usage, recency and total
spending in the product and brand category
o These brand tracking studies tell us about
1) Consumer purchase behaviour 2) Preferences 3)
Market share

TRACKING STUDIES
Measures

Brand Attitudes and Perceptions:

o Questions related to brand image and brand associations
that consumers develop owing to their own experience
with the brand and exposure to the brands message
through advertisements and promotional programs.
Purchase intent:
o Brand health is indicated by the likelihood to buy a brand
or switch to a competitor brand.
o These questions help with understanding consumers
preference towards aspecific product or brand, reason
for the purchase, price, time and other relevant factors
that affect the purchase decision, so that they can help in
predicting the actual purchase behaviour.

TRACKING STUDIES
Requirements

Measure the right variables

o Variable Track the most important variables for future growth.
o Provide information which helps in identifying growth opportunities and aid
in monitoring progress against growth goals.
Provide a leading indicator
o They should provide a leading indicator of a brands growth prospects
o Measure customer satisfaction or brand image that are leading indicator of
upcoming upcoming changes in a products or a brands market position
before hard revenue numbers and market share convey growth or decline.
Track performance reliably over time
o They should provide a platform to measure how brands, consumers, and
markets change over time. To ensure that these studies must provide
reliable measures over time.
o New types of information drive reasonable changes in tracking studies Question phrasing and order should be changed, though cautiously, to
avoid the risk of measures being changed but there are times when new
types of information drive reasonable changes in tracking studies.

Copy test
Ability to predict advertising
How do copy tests differ?
response

Advertisement used

Frequency of exposure
Where the exposure occurs
How respondents are obtained
Geography

Copy testing methods

Qualitative Research: Focused-group research, depth interviews

Audience Impression: Open-ended questions designed to tap

audiences impression

Adjective Checklist: Determine how warm, amusing, irritating or

informative the respondent feels the ad is

Eye Movement: Point on print ad where eye was fixed

Physiological Measurement: Heart beat, facial expressions, muscle

movement

Budget Decision
Finding optimal advertising budget is not easy!
How should budget then be decided?
Budget should be increased or decreased on the basis of its
effectiveness
Forced exposure testing can give optimal number of
exposures per month
Direct ways of calculating optimal budget
Regression analysis of internal sales and advertising data
Field experimentation
Split-cable experimentation
Advertising and promotion expenditure as percent of sales is
correlated with its market share and market growth

Media Research
How to measure effectiveness? Cost of insertions per thousand

Print vehicle audience

Recent-Reading method: Did you read the book in the past week
/ month

Reading-habit method: How many issues did you read?

Through the book read: Extensive personal interview to decide

the nature of read
Broadcast vehicle audience?

People Meter: Attached to television set to record change of activity

that lasts
more than 30 seconds

Diary Panel: A household takes note of viewing activity

Consumer Generated Media

Filter: Aggregated news sites about brand, product or company
Fanatics: Die-hard fans of a brand
Facilitators: Online forums and bulletin boards to build
community
Firecrackers: People whose work go viral online

Various Types of
PROMOTION
activities
1.Personal Selling- Direct contact between company
representatives and those who make purchase decisions.
2.Direct Marketing- Sending mail directly to customer.
3.Advertising- Non personal paid promotion using mass
media.
4.Public Relation- Uses third party sources and
particularly news media
5.Sponsorship- Supporting an event, activity and
organization by providing money
6.Sales promotion- Uses short term techniques often in
the form of incentives
7.Digital Communications- Any communication made
using digital services like web, cell phone etc.

SALES PROMOTION
The American Marketing Association (AMA) defines sales
promotion as The media and non-media marketing pressure
applied for a predetermined, limited period of time at the level of
consumer, retailer, or wholesaler in order to stimulate trial,
increase consumer demand, or improve product availability.

In short sales promotion can be

described as
Short term Measure
Targets End Consumer
Inducement to intermediaries or
consumers
Accelerating Tool for creating
immediate Sales, inventory, new
launch
Source- Scott A. Nielsen, John Quelch, and Caroline
Henderson, Consumer Promotion and Accelearation of
product purchases in Research Research on Sales

SALES PROMOTION
Types AND EXAMPLES
Consumer

Trade

Manufactur
er to
Consumer

To
Marketing
Intermedia
ries

Pull
Strategy
ExamplesCouponing,
Sampling,
Value Pack,
Price Pack,
Refund,
Premium

Push
Strategy
ExamplesAllowances
, Coupons,
Financing
Incentives

Retailer
Retailer to
Customer
Pull
Strategy
ExamplesDisplays,
Free
Goods,
Loss
Leaders

Promotion
Partnership
Manufactur
er and
Retailers
Push/ Pull
ExamplesTie in
promotion

Sales promotion Trap

Our Firm
All other firms

Cut Back
Promotions

Maintain
Promotions

Cut Back
Promotions

Higher Profits for

All

Market Share goes

to our firm

Maintain
Promotions

Market share goes

to all other firms

Market Share stays

constant; profits are
low

PROMOTIONS AS MARKET
TRANSACTIONS

Source- Promotion as market transaction in Journal of Management and Marketing Research, Vol.
13, May 2013
Authored by- Nagasimha Balakrishna Kanagal

The study lays out the definition and conceptualization of

promotions as market transactions. This involves defining
promotions as well as defining transactions and placing
transactions as a part of the market sequencing of exchanges,
transactions and contracts.
CONCEPTUALIZATION OF TRANSACTION REALM OF
CONSUMER SALES PROMOTIONS
1.
2.
3.
4.

Promotion Exchange Dynamics

Promotion exchange measurement
Promotion exchange mechanics
Market contracts at promotions

PROMOTIONS AS MARKET
TRANSACTIONS (Contd..)

Source- Promotion as market transaction in Journal of Management and Marketing Research, Vol.
13, May 2013
Authored by- Nagasimha Balakrishna Kanagal

CONCEPTUALIZATION OF MARKET REALM OF

PROMOTIONS
Marketing objectives that sales promotions address would emanate
from broader communication objectives of the brand; these
communication objectives would in turn be derived from the
marketing objectives of the product category or the firm given the
understanding of the market context, competitor and consumer.

Empirical Study: Big Bazar

Implications for marketers
The study lays out implications for marketers and infers that
promotions have an important role to play in transactional
marketing in all four aspects demand management, market
potential realization that also results in demand, market

Promotion AS A
MARKETING STRATEGY

The 2 major types of promotion part of marketing strategy are

Advertising
This decision has long-term effects, Companies spend
more time and resource on advertising research.
Greater risk and uncertainty in advertising research.
Advertising is more emotional in nature and objective is
to create enduring brand image.
Sales Promotion
Affects the company in short term
Objective is to appeal to the consumers rational mind
rather than being emotional.

SALES PROMOTION
RESEARCH
Source of Study- Impact of Sales Promotion Tools on Consumers
Purchase Decision towards White Good (Refrigerator) at Durg and Bhilai
Region of CG, India Soni Neha1 and Verghese Manoj2 1Department of
Management, GD Rungta College of Science and Technology, Bhilai C.G.,
INDIA 2Department of Management, R.C.E.T, Bhilai C.G., INDIA
Research Question:
Do the sales promotion tools have significant impact on consumer
purchasing decision.
Research Objectives:
i.

To identify various sales promotion tools influencing consumer

purchase decision.

ii.

To find the impact of sales promotion tools on purchase decision

towards the product.

iii. To find most influencing sales promotion tools on purchase decision.

SALES PROMOTION
RESEARCH
Hypothesis:
H1: Price packs have significant impact on consumer purchase
decision
H2: Rebate has significant impact on consumer purchase
decision
H3: Offer has significant impact on consumer purchase decision
H4: Premium has significant impact on consumer purchase
decision
H5: Contest has significant impact on consumer purchase
decision

SALES PROMOTION
RESEARCH
Research Design: Descriptive and Causal
Research Instrument: Questionnaire
Data Source: Primary
Measurement Technique: 5 point Likert Scale

SALES PROMOTION
RESEARCH
Data Analysis
1. Factor Analysis
Significant variables are considered in multiple regression
2. Multiple regression
Strength of association tested.
3. Hypothesis Testing
significance of association tested through t and F test.

Scanner data analysis

To save time for sales promotion market research,
marketers can opt for analysing available consumer data
from companies like Nielsen, IRI who has a large wealth
of customer database from retail outlet scanning data.
These data can be analysed to understand which kind of
promotion will fulfil the marketers sales objective in the
best manner and which customers they should target.

Linking Sales promotion,

advertising & Media
Budget Allocation
Introductory Phase- Consumer Sales Promotion
Growth Stage- Advertisement for branding
Maturity Stage- Advertisement as reminder and
promotion for loyalty

Coordination of Ad and promotion theme

Sales promotion tools to communicate brands unique
attributes to reinforce advertisement campaign
Media Advertisement to draw attention to sales
promotion program

Media Support and timing

Coordination among Sales Promotion and ad campaign and

media to create awareness, interest and favorable attitude

urnal:
Zeinolabedin Rahmani, Payame Noor University, Sari, Iran Hamidreza Salmani
javeri, Islamic Azad University, Tehran, Iran Amin Allahbakhsh, Payame Noor
iversity, Babol, Iran | Journal of Business Studies Quarterly 2012|

Brand equity

provides a considerable competitive

advantage, because it lends significant competitive barriers.
Brand equity is developed by increase in perceived quality,
increase in brand loyalty and brand awareness that each of
them couldnt be made or destructed in short term period, but
they could be made in long term period by well-designed
investment. In order to reinforce the views and beliefs that is in
concerned with brand, advertising help to have a powerful
brand loyalty Promoting events with long-term
goals can
provide brand equity which is helped to provide powerful,
desired and unique connections (koler, 2008). On the other
hand, price reduction in short term period such as amount of
percentage may not be suggested for providing brand equity,
even if they increase the sale in short term period

Relationship between advertising and sales

promotions with brand equity dimensions and
brand equity

Source: Review the Impact of Advertising and Sale Promotion on Brand Equity | Journal of Business
Studies Quarterly 2012|

Questions