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1. Chapter - 18
Measuring Promotional
Performance

2. Measuring Promotional
Performance
2
Objectives
 Promotion in Perspective
 Measuring Advertising Performances
 Measuring Sales Promotion Performances
 Measuring Public Relations Performances
 Measuring Personal Selling Performances
 Measuring Direct Marketing Performances

3. Measuring Promotional
Performance
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Advantages and Disadvantages
 Proper utilization of money
 Selection of the best campaign strategy
 Increased efficiency of advertising
 Time and cost
 Difficulty
 Which parameter to test
 Evaluation of creative work

4. Measuring Promotional
Performance
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Promotion in Perspective
 Identify the Test Variables
 Message variables
 Source variables
 Delivery channel
 Decide on the Time of the Test
 Pre-test
 Theater test, portfolio test and on-the-air test
 Post-test
 Recall (aided and unaided) test, recognition test, tracking studies
 Decide on the Location of the Test
 Laboratory test
 Field test

5. Measuring Promotional
Performance
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Measuring Advertising Performances
 Characteristics of an effective advertisement
 It should be able to convey the right message to the target
customers
 It should reach the prospective buyers a sufficient number of times
 It should succeed in generating sales
 It should produce a positive return on the firm’s expenditure on
advertising
 Effectiveness of advertisement can be measured through
 Copy testing/Message testing
 Recognition
 Recall
 Persuasion (Attitude change)
 Purchase behavior

6. Measuring Promotional
Performance
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Measuring Advertising Performances
 Copy Testing / Message Testing
 Purpose of test
 Use of results
 Multiple measurement
 Copy testing model
 Viewing the copy
 Analyzing the copy
 Responding to copy
 Multiple exposure
 Pre-finished and finished copy testing
 Elimination of bias of the respondent
 Valid and reliable

7. Measuring Promotional
Performance
7
Measuring Advertising Performances
 Recognition
 The feelings that something present has been encountered
before
 Recognition tests measure
 Target audience’s awareness of brand
 Points in the ad copy or in the advertisement
 Different tests are
 Mail surveys
 Starch test
 Search a regular reader of a magazine, Whether he has seen or read the
ad before
 Read Most
 Seen Associated
 Noted

8. Measuring Promotional
Performance
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Measuring Advertising Performances
 Recall
 The process of remembering something or recovering
information by mental effort
 Aided recall
 Unaided recall
 Day-After-Recall
 24-72 hours after the telecast of commercial
 Random selection of respondents
 Portfolio test
 Pre-test for print ad
 To decide the ad copy to be released in the media next and
ad stack and sequence
 Respondent bias and product category are two inhibitors

9. Measuring Promotional
Performance
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Measuring Advertising Performances
 Persuasion
 An act intended to bring about a change in customer’s
beliefs, attitudes and behavior towards the brand
 A change in belief can be done in two ways
 A Central Route
 Attention to message in ad, analysis of message on basis of
existing knowledge and form an attitude towards a brand – Long
term effect
 A Peripheral Route
 Attention to the image, sound, language and credibility and
attractiveness of the ad, change in attitude based on superficial
cues – short term effect
 Theater Test
 On-Air-Test

10. Measuring Promotional
Performance
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Measuring Advertising Performances
 Purchase Behavior
 Coupon stimulated purchasing
 Split-cable testing

11. Measuring Promotional
Performance
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Measuring Sales Promotion Performances
 Sales promotion refers below the line promotion (in which no ad
agency is involved) carried to increase the sales of a product
 Increase sales by providing and extra incentives to buy the product
 Consumer sales promotion
 Trade sales promotion
 Communication objective of promotion depends on stages of
product life cycle of that product
 Introduction
 Growth
 Maturity
 Decline
 Short-term tactical tool

12. Measuring Promotional
Performance
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Measuring Sales Promotion Performances
 Parameters used for Measurement
 Direct evaluation – sales volume
 Indirect evaluation – Indicators of sales
 Methods
 Communication Framework Model
 Analysis of a promotion on the basis of how well it was able to
communicate with the target customers on the basis of four
factors
 Gaining attention or making an impression
 Communication of the message in an understandable manner
 Persuasive ability
 Ability to influence purchase behavior
 On-shelf coupons
 On-pack promotions

13. Measuring Promotional
Performance
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Measuring Sales Promotion Performances
 Parameters used for Measurement - Methods
 Scanner Data
 To measure the effect of sales promotions on sales
 Uses baseline procedure to estimate the sales
 Objectives
 To identify short-term increase in sales attributed to a promotion
 To find the possible causes of increase in sales
 To estimate the efficiency of various sales promotions
 To estimate long-term impact on promotion
 To help manufacturers evaluates various sales promotions
 To identify competitors’ successful promotions

14. Measuring Promotional
Performance
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Measuring Sales Promotion Performances
 Parameters used for Measurement - Methods
 Shopper Track
 Consists of an optical eye integrated with a point-of-sale system
 Records number of people walking into the store
 Tracks the movement of customers and purchase made
 Evaluate the effectiveness of various sales promotions carried in the
store
 Other Methods
 The number of inquiries generated regarding the product being
promoted
 Number of coupons redeemed
 Total number of sweepstakes entries registered
 Media-multiplier effect

15. Measuring Promotional
Performance
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Measuring Public Relations Performances
 The activities which the company uses to communicate with its
stakeholders, the media, the public to establish and maintain goodwill of
company
 PR outputs – can be measured by
 Media content analysis
 Cyber space analysis
 Trade shows
 Event measurement and
 Public opinion polls
 PR outtakes – can be measured by
 Surveys
 Ethnographic studies
 Experimental research
 PR outcomes – can be measured by
 Behavior, attitude and preference measurement studies

16. Measuring Promotional
Performance
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Measuring Personal Selling Performances
 Parameters used for Measurement
 Qualitative measures
 Marketing intelligence
 Follow-up activities
 Program implementation
 Communication objectives
 Knowledge of sales persons regarding the product or service he is selling
 The policies of the company and competitors
 Quantitative measures
 Total amount of sales in a period of time
 Number of orders obtained
 Number of new customers acquired
 Methods used for Measuring Effectiveness
 Time utilization
 Comparative performance
 Qualitative measures

17. Measuring Promotional
Performance
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Measuring Direct Marketing Performances
 Parameters used for Measurement
 Cost per order (CPO)
 Methods used for Measuring Effectiveness
 Focus groups
 Eye-tracking for layout

18. Measuring Promotional
Performance
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Summary
 Promotion in Perspective
 Measuring Advertising Performances
 Measuring Sales Promotion Performances
 Measuring Public Relations Performances
 Measuring Personal Selling Performances
 Measuring Direct Marketing Performances

19. Thank you