PROMOTIONAL

MANAGEMENT
Pragya Jhavar
The City College
Agenda
 Advertising Department
 Role and Selection of Advertising Agencies

 Advertising Budget

 Advertising Evaluation

 Advertising Effectiveness
Advertising Department
 Usually present in large organizations as an
in-house department under marketing
 Responsible for advertising and promotional
activities of all products/services in
centralized companies
 In multi-product, decentralized system,
operates under product or brand
management
Advertising Department:
Centralized System
Company
President

Human
Production Finance Marketing Research &
Resource
Department Department Department Development
Development

Marketing Product Advertising Sales

Research Planning Management Management
Advertising Department:
Centralized System
 Basic Functions of Advertising Department:
 Planning and Budgeting: Develop advertising and
promotion plans in line with marketing objectives,
strategies and budget
 Administration and Execution: Advertising manager
responsible for organization, supervision and control of
department. Works closely with production, media, copy,
art and sales promotion
 Co-ordination within company: Co-ordinate with other
marketing functions, particularly market research and sales
 Co-ordination with ad agencies and services: Outside
agencies and services used in addition to in-house to place
ads, prepare POS material etc.
Advertising Department:
Decentralized System
Vice President
Marketing

Sales Product Marketing

Management Management Services

Advertising Marketing
Brand Manager -1
Department Research

Ad Agency Sales Promotion

Brand Manager -2 Package Design

Ad Agency Merchandising

Brand Manager -3

Ad Agency
Advertising Department:
Decentralized System
 Used in large corporations with many product lines and
brands
 Each brand assigned to brand manager who is fully
responsible for brand including planning, budgeting,
sales, advertising, profit performance etc.
 Brand managers work closely with ad agency and
specialist service providers
 Different brands of the same company also compete
with each other for market share
 An additional layer of management may be added
above the brand managers to co-ordinate their efforts –
category management system
Advertising Department:
Decentralized – Category Mgmt
In-House Agencies
 Agency is set up, owned and operated by
advertiser
 May be used exclusively or combined with
outside agencies
 Reduce advertising and promotion costs

 Can also provide related work such as sales

presentations, package design, P.R. etc.
 Also have increased knowledge and
understanding of market, but less skilled
Comparison of Advertising
Organization Systems
Organizational system Advantages
Centralized •Facilitated communications
•Fewer personnel required
•Continuity in staff
•More top-management
involvement
Decentralized •Concentrated managerial
attention
•Rapid response to problems
and opportunities
•Increased flexibility
In-house agencies •Cost savings
•More control
•Increased coordination
Disadvantages
•Less involvement with and
understanding of overall
marketing goals
•Longer response time
•Inability to handle multiple
product lines
•Ineffective decision making
•Internal conflicts
•Misallocation of funds
•Lack of authority
•Less experience
•Less objectivity
•Less flexibility
Types of Ad Agencies
 Can range from one- or two-person
operations to large organizations with over
1000 employees
 Vary on services offered and functions
performed
 Can be classified into:
 Full service agencies
 Creative boutiques
 Media buying services
Full Service Agencies
 Offer clients full range of marketing,
communications and promotions services
including planning, creating and producing the ad;
performing research; and selecting media
 Also offer non-advertising services such as
strategic market planning; sales promotion, direct
marketing and interactive capabilities; package
design; and P.R. and publicity
 Made up of multiple departments that provide

these activities
Full Service Agencies
Full Service Agencies -
Departments
 Account Services
 Link between the ad agency and its clients
 Account executives responsible for understanding
the advertiser’s marketing and promotions needs
and interpreting them to agency personnel
 Also responsible for coordinating agency efforts in
planning, creating and producing ads
 Present agency recommendations and obtain
client approval
Full Service Agencies -
Departments
Full Service Agencies -
Departments
 Marketing Services
 Research Department
 Gathers, analyses and interprets information that will
be useful in developing clients’ advertising
 May conduct primary or secondary research or obtain
syndicated research and interpret
 Send information to other agency personnel working
on that account
 May also design and conduct research to pretest the
effectiveness of ads in consideration
Full Service Agencies -
Departments
 Media Department
 Analyses, selects and contracts for space or time in
the media that will be used to deliver advertising
 Develops cost-effective media plan that
communicates effectively with the right audience
 Media specialists must know about media reach, rates
and how well they match target market
 Sales Promotion Department
 Specializes in developing contests, premiums,
promotions , point-of-sale material and other sales
materials
 Direct marketing specialists, package designers
and PR/Publicity department may also be present
in the agency
Full Service Agencies -
Departments
Full Service Agencies -
Departments
 Creative Services
 Responsible for creation and execution of
advertisements
 Copywriters – Conceive ideas for the ads and
write the headlines, subheads and body copy.
Also determine the basic theme or appeal and
prepare rough initial visual layout
 Art Department – Responsible for how the ad
looks. Layouts prepared for print ads while
storyboards for TV ads by art directors and
graphic designers
Full Service Agencies -
Departments
 Production Department – Responsible for providing
the finished product. Coordinate or outsource
printing, engraving, photography, typography etc.
For broadcast production, may supervise casting,
studio selection, director choice etc.
 Traffic Department – Coordinates all phases of
production to see that the ads are completed on
time and all deadlines for submitting the ads to the
media are met. Can also be part of media or
account management or a separate department
Full Service Agencies -
Departments
Full Service Agencies -
Departments
 Management and Finance
 Carries out basic administrative functions such as
accounting, finance and human resources
 Also attempts to generate new business
Agency Organization and
Structure
 Organizational structure of agencies based on
clients’ needs and internal requirements
 Two common structures:
 Departmental System
 Each function is set up as a separate department and is
called on to perform its specialty and serve all of the agency’s
clients
 Provides employees with the opportunity of developing
expertise in serving a variety of accounts
 Group System
 Individuals from each department work together in groups to
service particular accounts
 Employees become very knowledgeable about the client’s
business and there is continuity in servicing the account
Other Types of Agencies &
Services
 Creative Boutiques
 Agency that provides only creative services
 Developed in response to clients’ needs who
have other functions internally
 Client may seek outside creative talent because it
believes an extra creative effort is required
 Full-service agencies may also sub-contract work
when they are too busy or want to avoid full-time
employees on their payroll
Other Types of Agencies &
Services
 Media Buying Services
 Independent companies that specialize in the
buying of media, particularly radio and TV time
 Clients usually develop their own media strategies
and plans and hire the buying service to execute
them
 May also help to plan media strategy
 Media buying services receive large discounts as
they buy media space in bulk
 Paid a commission or fee for their work
Selection of Ad Agency
 Depends on various factors:
 Full-service or specialized
 Whether advertiser requires bouquet of services or
some specialized services
 Compatibility
 Fitness of the agency for the advertiser’s purpose
based on its merits, demerits, accreditation, available
resources, methods of handling accounts etc
 Agency Team
 The attitudes, thinking, experience and personalities of
the agency personnel such as copywriters, art
directors, media experts, production managers etc
Selection of Ad Agency
 Agency Stability
 How long the agency has been in existence
 Services
 The services rendered by the agency, such as cost
accounting, general agreements, project estimates etc, that
enhance the efficiency and credibility of the agency
 Creativity
 Style, clarity, impact, memorability and action of the
communication
 Compensation
 The charge the agency levies for its services
 Problem-Solving Approach
 Whether the agency can work in a focused manner towards
the clients’ objectives and develop plans and actions to
fulfill them
Evaluation of Ad Agencies
 Substantial amounts of money spent on
advertising and promotion
 Thus, criteria required to determine
accountability of expenditures and quality of
agencies
 Agencies can be evaluated using 2 types of
assessment:
 Financial Audit
 Qualitative Audit
Evaluation of Ad Agencies
 Financial Audit
 Designed to verify costs and expenses, the no. of
personnel hours charged to an account, payments
to media and outside suppliers
 Focuses on how the agency conducts its business
 Qualitative Audit
 Focuses on the agency’s efforts in planning,
developing and implementing the client’s
advertising program and results achieved
 Subjective and informal
Advertising Budget
 One of the most critical decisions facing
marketing managers
 Many managers fail to realize importance of
advertising and promotional, thus slashing
budget when it is required most
 Theoretical basis for budgeting still based on
old-school thought:
 Marginal Analysis
 Sales Response Models
Marginal Analysis

Sales (Rs)

f(A) = Sales
A = Advertising/
promotions expenditures
Mf(A) = Gross margin

Fixed cost of
A
advertising
Advertising/
promotions (Rs) P = Mf(A) – A = Profit
Marginal Analysis
 Sales and gross margins increase up to a
level on increasing advertising budget but
then level off
 Thus, profits start to decline after the optimal
point A, where MC=MR
 Weaknesses:
 Sales are a direct result of advertising and
promotional expenditures and this effect can be
measured
 Advertising and promotion are solely responsible
for sales
Sales Response Models

A. The Concave-Downward B. The S-Shaped Response

Response Curve Function

Range A Range B Range

Advertising C Advertising
expenditures expenditures
Sales Response Models
 The Concave-Downward Function
 Advertising budgets follow law of diminishing returns
 As the amount of advertising increases, the its
incremental value decreases
 Fewer advertising dollars may be needed to create
optimal impact
 The S-Shaped Response Function
 Initial outlays of ad budget have little impact (Range
A)
 Beyond a certain budget, ad and promotion activities
have an effect (Range B)
 Saturation and decline start after optimal incremental
sales are achieved (Range C)
Budgeting Approaches

Top-Down
Approach
Bottom-Up
Approach
Top-Down Approaches
 Affordable Method
 Arbitrary Allocation

 Percentage of Sales

 Competitive Parity

 Return on Investment (ROI)

Affordable Method
 Firm determines amount to be spent on
functions such as production and operations
 Remaining budget amount allocated for
advertising and promotion
 Does not take into consideration marketing
objectives
 Likelihood of under- or over-spending is high

 Common approach among small firms

Arbitrary Allocation
 Budget is determined by management solely
on the basis of what is felt to be necessary
 Does not involve any systematic thinking or
objective setting and allocation of funds
accordingly
 Budget completely dependent on
management thought
 Common in small firms, but also used in
bigger firms occasionally
Percentage of Sales
 One of the most commonly used methods of budget setting
 Advertising and promotions budget based on sales of the
product
 Can be determined in the following 2 ways:
 Method 1 : Straight Percentage of Sales
2009 Total Sales in Rs Rs. 10,00,000
Straight % of sales @ 10% Rs. 1,00,000
2010 Advertising Budget Rs. 1,00,000
Percentage of Sales
 Method 2: Percentage of Unit Cost
2009 Cost per unit to mfr Rs. 4.00
Unit cost allocated to adv. Re. 1.00
2010 Forecasted Sales (in units) 1,00,000
2010 Advertising Budget Rs. 1,00,000
 Projected sales may also be used, as in Method 2

 Percentage changes based on industry

Percentage of Sales
 Advantages:
 Financially safe, keeps ad spending within limits
 Easy to apply
 Disadvantages:
 Based on sales, which reverses the cause-and-effect
relationship between advertising and sales
 Treats advertising as an expense instead of investment
 Leads to stalemate with competition
 Difficult to apply for new products
 May lead to misappropriation of funds in case of weak products
Competitive Parity
 Managers establish budget amounts by matching
the competition’s percentage-of-sales expenditures
 Setting budgets using this method takes advantage
of collective wisdom of the industry
 Stability in marketplace as marketing warfare is
minimised
 Ignores advertising and promotion objectives
 Undermines inherent product differences of
companies
 There is no guarantee that competitor will follow the
same method
 Thus, this method typically used in conjunction with
percentage-of-sales method or other methods
Return on Investment (ROI)
 Advertising and promotion are considered
investments
 Thus, expected to earn a certain return

 Even though it sounds good theoretically,

difficult to assess returns of ads and
promotions
 Depends on the criteria used to measure
returns
Build-Up Approaches
 Objective and Task Method
 Payout Planning

 Quantitative Models
Objective and Task Method
 Uses a build-up approach consisting of three
steps:
 Determining communication objectives to be
accomplished
 Determining specific strategies and plans needed
to achieve them
 Estimating the costs associated with performance
of these strategies and tasks
 Each step should be monitored and
strategies should be changed if they are not
performing as expected
Objective and Task Method
 Advantages:
 Budget driven by objectives to be attained
 Managers closest to marketing effort will have input
into the budget-setting process
 Disadvantages:
 Difficulty in determining which tasks will be required
and the costs associated with each
 Ex. What tasks are required to attain 50%
awareness among target market? How much will it
cost?
Payout Planning
 Payout plan determines the investment value
of advertising and promotion
 Revenues and costs over two or three years
are projected
 Helps in determining how much advertising
and promotion expenditure will be necessary
when return might be expected, based on
expected rate of return
Payout Planning
 For example:
Year 1 Year 2 Year 3
Product Sales 15.0 35.50 60.75
Profit contribution (@$0.50 /case) 7.5 17.75 30.38
Advertising/promotions 15.0 10.50 8.50
Profit (loss) (7.5) 7.25 21.88
Cumulative profit (loss) (7.5) (0.25) 21.63

 Especially helpful to determine advertising

budget for new products
 Not widely used
Quantitative Models
 Involve computer simulation models
employing statistical techniques such as
multiple regression analysis to determine the
relative contribution of advertising budget to
sales
 Have limited acceptance due to many
challenges associated with them
Advertising Effectiveness
 Need to measure effectiveness of advertising
increasing as increasing money allocated for
it
 Reasons to measure effectiveness:
 Avoiding costly mistakes
 Evaluating alternative strategies
 Increase the efficiency of advertising in general
 Determining if objectives are achieved
Advertising Effectiveness
 Problems of measuring effectiveness:
 Cost
 Research problems
 Disagreement on what to test
 Objections of creative department
 Time
Measuring Advertising
Effectiveness
 What to Test
 Source Factors
 Message Variables
 Media Strategies
 Budgeting Decisions
 When to Test
 Pretesting
 Posttesting
 Where to Test
 Laboratory Tests
 Field Tests
 How to Test
What to Test
 Source Factors
 Whether spokesperson is effective and how the
target market will respond to him/her. For eg. Lux
 Message Factors
 Message should be strong enough to attract
target audience or clear enough to help them
evaluate the product
 Should be able to achieve the objectives that it is
the means for
What to Test
 Media Strategies
 Media decisions include:
 Media Class – For eg. Broadcast v. Print
 Subclass – For eg. Newspapers v. Magazines
 Specific Vehicles – Which newspaper or magazine
 Location within Medium – Front page v. Back page
 Budgeting Decisions
 Whether ad budget provides adequate results /
returns
When to Test
 Pretests
 Measures taken before the campaign is implemented
 May occur from idea generation to rough execution to
testing the final version before implementation
 Advantage:
 Feedback is relatively inexpensive
 Changes can be made before money is spent in
development
 Disadvantages:
 Mock-ups, storyboards may not communicate as well as
the finished product
 Emotional aspects of message are difficult to communicate
 Time delays
When to Test
 Posttesting
 Occurs after the ad or commercial has been in the
field
 Designed to:
 Determine if campaign is accomplishing objectives sought
 Serve as input into the next period’s situation analysis
 Advantages:
 Tests the actual advertising or promotion
 Helpful for future planning
 Disadvantages:
 A lot of time, money and effort may be wasted beforehand if
the advertisement or promotion is ineffective
Where to Test
 Laboratory Test
 People are brought to a particular location where they
are shown ads
 Participants’ responses gauged through their answers
to questions by testers or through other parameters
such as pupil dilation, eye tracking or galvanic skin
response
 Major advantage: Control - changes to the ad can be
shown to the respondents easily and inexpensively
and differential impact of each can be assessed
 Major disadvantage: Realism – when people are
brought into the lab, they may scrutinize the ads more
closely than they would at home. Known as testing
bias
Where to Test
 Field Test
 Tests of the ad under natural viewing situations,
complete with the realism of noise, distractions
and the comforts of home
 Take into account the effects of repetition,
program content and presence of competitive
messages
 Disadvantages: Lack of control, competitors may
attempt to sabotage the research, take more time
and money
Where to Test
PRETESTS
Laboratory Methods
Consumer juries Theater tests Readability tests
Portfolio tests Rough tests Comprehension and
reaction tests
Physiological measures Concept tests
Field Methods
Dummy advertising On-air tests
vehicles
POSTTESTS
Field Methods
Recall tests Single-source tests Recognition tests
Association measures Inquiry tests Tracking studies
The Testing Process
 Concept Generation and Testing
 Rough Art, Copy and Commercial Testing

 Pretesting of finished ads

 Pretesting finished print messages
 Pretesting finished broadcast ads
 Posttesting / Market Testing of Ads
 Posttests of print ads
 Posttests of broadcast commercials
Concept Generation and
Testing
 Conducted very early in the campaign
development process
 Positioning statements, copy, headlines
and/or illustrations may all be under scrutiny
 One commonly used method for concept
testing is focus groups
 Consist of 8 to 10 people who discuss the
concept with a moderator to oversee the
discussion
Concept Generation and
Testing
 Advantages of focus groups:
 Results are easily obtained, directly observable and
immediate
 Multiple issues can be examined and consumers can
go into depth in areas they consider important
 Do not require quantitative analysis
 Disadvantages of focus groups:
 Results are not quantifiable
 Sample size may be too small to generalize for the
whole population
 Group influences may bias participants’ responses
Concept Generation and
Testing
 Another method for concept testing is mall
intercepts
 Consumers approached in shopping malls
and asked to evaluate rough ads and/or
copy
 Individuals assess ads through
questionnaires, rating scales and/or rankings
 Can now also be done over the internet

 Not widely used, but gaining popularity

Rough Art, Copy and
Commercial Testing
 Testing of ad in early stages of production
 Most tests at this stage use lab settings, though
some field tests may also be conducted
 Comprehension and reaction tests: Designed to
assess whether ad conveys the meaning
intended and the reaction it generates
 To avoid ads that may produce negative reaction
of consumers or offend them
 May use personal interviews, group interviews
and focus groups
 Sample size typically varies from 50 to 200
respondents
Rough Art, Copy and
Commercial Testing
 Consumer juries: Use consumers representative of
the target market to evaluate the probable success
of an ad
 May be asked to rate a selection of layouts or copy
versions presented on separate sheets using order
of merit method or paired comparison method
 Advantage: Control and cost effectiveness
 Disadvantages:
 The consumer may become a self-appointed expert
 Limited no. of ads can be evaluated
 Halo effect may occur
 Preferences for specific types of advertising may
overshadow objectivity
Pretesting of Finished Ads
 One of the most commonly employed studies
 Uses finished advertisements that have not
yet been presented in the market
 Popular because advertisements in final form
provide better information to the respondents
about their effectiveness
 Changes can be made to ads before they are
presented in the media, if they are not
effective
Pretesting Finished Print Ads
 Portfolio Tests
 Lab method designed to expose a group of
respondents to a portfolio consisting of both control
and test ads
 Respondents then asked what information they recall
from the ads
 Assumption: Ads that yield the highest recall are the
most effective
 Advantage:
 Offers the opportunity to compare ads directly
 Disadvantages:
 Factors other than advertising creativity / presentation may
affect recall. Eg. Interest in product category
 Recall may not be the best test
Pretesting Finished Print Ads
 Readability Tests
 Test the communications efficiency of the copy in a
print ad
 Uses the Flesch formula (developed by Rudolph
Flesch) to assess readability of the copy by
determining the average no. of syllables per 100 words
 Human interest appeal, length of sentences and
familiarity with certain words also considered and
correlated with educational background of target
audience
Pretesting Finished Print Ads
 Suggests that copy is best comprehended when
sentences are short, words are concrete and familiar,
and personal references are drawn
 Advantages:
 Eliminates interviewee bias
 Offers an attractive standard for comparison
 Disadvantages:
 Copy may become too mechanical
 Direct input from receiver is not available
 Contributing elements such as creativity cannot be
addressed
Pretesting Finished Print Ads
 Dummy Advertising Vehicles
 Ads placed in “dummy” magazines developed by
agency
 Magazine contains regular editorial features of
interest to the reader as well as test ads
 Distributed to a random sample of homes in
predetermined geographic areas
 Readers interviewed on their reactions to both
editorial content and ads
Pretesting Finished Print Ads
 Advantages:
 Provides a more natural setting than the portfolio test
 The test more closely approximates a natural reading
situation
 Disadvantages:
 Product interest may bias the results
 Testing effect is not eliminated
Pretesting Finished Broadcast
Ads
 Theater Tests
 Participants are invited to view pilots of proposed TV
programs
 On entering the theater, viewers are told a draw will
be held for gifts and asked to complete a product
preference questionnaire asking which products they
would prefer if they win
 This form also requests demographic data
 After viewing the program and ads, they are asked to
fill a form for evaluation
 Participants the asked to complete a second form for
a draw so that changes in product preference can be
noted
Pretesting Finished Broadcast
Ads
 Advantages:
 Control
 Indicates how one ad will fare against others
 Change in brand preference due to ad can be
determined
 Disadvantages:
 Environment is too artificial
 The brand preference measure is too phony to believe
 Group effect may influence viewers who don’t have
any reactions themselves
 Used by many consumer-product companies as it
allows them to identify strong or weak ads
Pretesting Finished Broadcast
Ads
 On-Air Tests
 Some firms conducting theater tests also insert
the commercials into actual TV programs in
certain test markets
 Day-after recall is used to determine effectiveness
of ad
 Advantage: Natural setting
 Disadvantage: Recall may not be the best
measure of effectiveness
Pretesting Finished Broadcast
Ads
 Physiological Measures
 Involves a lab setting in which physiological
responses are measured
 Indicate the receiver’s involuntary response to the
ad
 Include pupil dilation, galvanic skin response, eye
tracking and brain waves
 Pupil Dilation:
 Measures dilation and constriction of pupils
 Dilation suggests greater interest and preference
Pretesting Finished Broadcast
Ads
 Galvanic Skin Response:
 Also known as electrodermal response
 Measures the skin’s resistance or conductance to a small
amount of current passed between two electrodes
 Response to stimulus activates sweat glands, which
increases conductance of electrical current
 Eye Tracking:
 Viewers asked to view an ad while a sensor aims a beam of
infrared light at the eye
 Beam follows the eye movement and shows the exact spot
where the viewer is focusing
Pretesting Finished Broadcast
Ads
 Indicates which elements of ad are attracting
attention, how long viewer is focusing on them and
sequence in which they are being viewed
 Brain Waves:
 Electrical impulses of brain are used in research
 Alpha activity refers to degree of brain activation. By
measuring alpha level of respondents’ brain,
researchers can determine degree of attention and
information processing
 Hemispheric lateralization distinguishes between
alpha activity in the left and right sides of brain. Right
side processes visual and emotional stimuli and
recognition, while left side processes verbal and
logical stimuli and recall
Posttesting / Market Testing of
Ads
 Enables marketers to find out how their ads
are doing in the field
 More accurate than pretesting as pretests are
conducted on smaller samples and may have
questionable merit in some cases
 All methods are conducted on the field; does
not have any laboratory methods
Posttesting of Print Ads
 Inquiry Tests
 Designed to measure advertising effectiveness on
the basis of inquiries generated
 Inquiry may take the form of the no. of coupons
returned, phone call generated or direct inquiries
 Can also be measured through:
Method Effect
Running the ad in successive issues of the same medium Measures cumulative effects of
campaign

Running split-run tests, in which variations of the ad appear in Examines specific elements of ad or
different copies of the same newspaper / magazine variations on it

Running the same ad in different media Measures effectiveness of the medium

rather than the ad itself
Posttesting of Print Ads
 Advantages:
 Inexpensive to implement
 Provide some feedback about the general
effectiveness of the ad or medium
 Disadvantages:
 Inquiries may not be a true measure of the attention-
getting or information-providing aspects of the ad
 Reader may look at the ad and read it but not be
motivated to inquire at that particular time
 A person with a particular need may respond to any
ad, regardless of its effectiveness
 The ad may be effective in areas such as awareness,
attitude change etc.
Posttesting of Print Ads
 Recognition Tests
 Determine recognition of print ads and compare
them to other ads of the same variety
 3 types of scores:
 Noted score – Percentage of readers who remember
seeing the ad
 Seen-associated score – Percentage of readers who
recall seeing or reading any part of the ad identifying
the product or brand
 Read-most score – Percentage of readers who report
reading at least half of the copy portion of the ad
Posttesting of Print Ads
 Limitations:
 False Claiming – Respondents may claim to have
seen an ad when they did not. May be a result of
seeing a similar ad or to show themselves more
knowledgeable. On the other hand, respondent
fatigue may lead to underreporting
 Interviewer Sensitivities – Respondent may want to
please interviewer or may not have understood
instructions given be the interviewer
 Reliability of Recognition Scores – The smaller the
sample, the more unreliable the findings
Posttesting of Print Ads
 Recall Tests
 Attempt to measure recall of specific ads
 Similar to the test used for pretesting print ads –
portfolio test
 Advantages:
 Can assess ad’s impact on memory
 Disadvantages:
 Interviewer problems
 Reader’s degree of involvement with product and/or
distinctiveness of appeals and visuals may lead to
higher-than-accurate recall
Posttesting of Broadcast Ads
 Day-After Recall Tests
 Test the recall of broadcast ads a day after they are
viewed by the respondent
 Similar to On-Air Test, but after the ad is released in the
field
 Persuasive Measures
 Similar to Theater Test, but conducted in the field
 Accomplished by taking a brand preference measure
when the video is delivered and then again the next day
Posttesting of Broadcast Ads
 Diagnostics
 Designed to take viewers’ evaluation of the ads,
as well as how clearly the creative idea is
understood and how well the proposition is
communicated
 Also examines rational and emotional reactions to
the ads
Posttesting of Broadcast Ads
 Test Marketing
 Many companies conduct tests designed to
measure their advertising effects in specific test
markets before releasing them nationally
 Markets chosen are representative of the target
market
 A variety of factors, such as reaction to the ads,
effects of various budget sizes or special offers,
may be tested
 The ads run in finished form in the media where
they might normally appear, and effectiveness is
measured after the ads run
Posttesting of Broadcast Ads
 Advantages:
 Realism – regular viewing environments are used and
testing effects are minimized
 High degree of control
 Disadvantages:
 Time and cost
 Competitors may discover and intervene in the
research process
Posttesting of Broadcast Ads
 Single-Source Tracking Studies
 Track the behaviour of consumers from the
television set to the supermarket check-out
counter
 Participants in a designated area who have cable
TV and agree to participate in the studies are
given a card
 This identifies their household and gives the
research company their demographics
 Households are split into matched groups; one
group receives the ad while the other does not, or
alternate ads are sent to each
Posttesting of Broadcast Ads
 Their purchases are recorded from the bar codes
of the products bought
 Commercial exposures are then correlated to
purchase behaviours
 Advantages:
 Ability to directly measure ads’ effect on sales
 Disadvantages:
 Only focuses on short-term sales
 Overabundance of data makes it too complicated
 High cost
Tracking Print/Broadcast Ads
 Useful and adaptable form of posttesting
 Involves tracking the effects of the ad campaign
by taking measurements at regular intervals
 Can be used to measure the effects of
advertising on awareness, recall, interest and
attitudes towards the ad and/or brand as well as
purchase intentions
 Yield valuable information to marketing
managers for assessing current programs and
planning for the future
 Sample sizes typically range from 250 to 500
cases per period
Tracking Print/Broadcast Ads
 Advantages
 Can be tailored to each specific campaign/
situation
 A standard set of questions can be used over
time
 Offer a high degree of reliability and validity
 Disadvantages
 Interviewer problems
 Suitability of recall as a measure
Thank You