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Advertising Research, Promotion and MediaSubmitted by: Group 7Anirban Gupta (1411075)Ankit Mishra (1411356)Ankur Agrawal (1411357)Gaurav Gulati (1411090) Mohit Aggarwal (1411169)Nitesh Jain (1411384)Subir Roy (1411197)Advertisement recognitionRecall of the commercialMeasure of commercial persuasionImpact on purchase behaviourAdvertisement Response categoriesRecognition: 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.Advertisement RecognitionMethod: 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 office environment shown in the ad initiallyDay after recall measure (DAR)Limitations:Extremely low test correlations have been found when commercials from same product class are studiedDAR score are unduly affected by the nature of the program and whether the viewers like the particular program

Recall, Recognition and effectiveness of AdvertisementsJournal: Differential age-related processing limitations in recall and recognition tasks. Psychol Aging, 1997 By Whiting WL 4th, Smith ADRecall 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 StevensMany 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 exposureMeasures 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 ARSThe McCollum/ Spielman TestThe 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. 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 T C T C T C T Performer Performer P Q 1 2 3 4 R S C = Constant Commercials T = Test CommercialsResult 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 T T T T Intro 1 Program 2 Program 3 Program 4 ProgramResult 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:Comprehension of a message or a sloganCommunication of secondary copy ideasEvaluation of demonstrations, spokesperson, message Perception of brand uniqueness or brand differentiation,Irritating or confusing elements,Viewer involvementPurchase behaviourCoupon stimulated purchasing: Test group is exposed to a set of commercials and a questionnaire on the commercial is given for completion. Test group is given a packet of redeemable coupons. The selling-effectiveness score is calculated as the ratio of purchases by viewer shoppers divided by the purchases by control shoppers. Split-cable tests: Panellists have a device connected to their TV sets which allows channel selection to be monitored and substitute one advertisement by another. 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 STUDIESStudies track changing views of a single set of consumers to measure interestPurpose To evaluate and reassess the advertising campaign Help with diagonsis, if the campaign is not working wellMeasures tracked in brand tracking studiesBrand awareness UsageBrand attitudesPerceptionsPurchase intent

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

TRACKING STUDIESMeasuresTRACKING STUDIESMeasuresBrand Attitudes and Perceptions: 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:Brand health is indicated by the likelihood to buy a brand or switch to a competitor brand.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 STUDIESRequirementsMeasure the right variablesVariable Track the most important variables for future growth.Provide information which helps in identifying growth opportunities and aid in monitoring progress against growth goals.Provide a leading indicatorThey should provide a leading indicator of a brands growth prospectsMeasure 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 timeThey 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. 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 responseHow do copy tests differ?Advertisement used Frequency of exposureWhere the exposure occursHow respondents are obtainedGeography

Copy testing methodsQualitative Research: Focused-group research, depth interviewsAudience Impression: Open-ended questions designed to tap audiences impressionAdjective Checklist: Determine how warm, amusing, irritating or informative the respondent feels the ad isEye Movement: Point on print ad where eye was fixedPhysiological Measurement: Heart beat, facial expressions, muscle movement

Budget DecisionFinding optimal advertising budget is not easy!

How should budget then be decided?Budget should be increased or decreased on the basis of its effectivenessForced exposure testing can give optimal number of exposures per month

Direct ways of calculating optimal budgetRegression analysis of internal sales and advertising dataField experimentation Split-cable experimentationAdvertising and promotion expenditure as percent of sales is correlated with its market share and market growthMedia ResearchHow to measure effectiveness? Cost of insertions per thousand Print vehicle audienceRecent-Reading method: Did you read the book in the past week / monthReading-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 secondsDiary Panel: A household takes note of viewing activity

Consumer Generated MediaFilter: Aggregated news sites about brand, product or companyFanatics: Die-hard fans of a brandFacilitators: Online forums and bulletin boards to build communityFirecrackers: People whose work go viral online

Various Types of PROMOTION activitiesPersonal Selling- Direct contact between company representatives and those who make purchase decisions.Direct Marketing- Sending mail directly to customer.Advertising- Non personal paid promotion using mass media.Public Relation- Uses third party sources and particularly news mediaSponsorship- Supporting an event, activity and organization by providing moneySales promotion- Uses short term techniques often in the form of incentivesDigital Communications- Any communication made using digital services like web, cell phone etc.

SALES PROMOTIONThe 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 MeasureTargets End ConsumerInducement 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 promotion: Collected papers Ed Katherine Jcoz (Cambridge, MA: Marketing Science Institute, 1984)

SALES PROMOTION Types AND EXAMPLESSales promotion TrapOur FirmAll other firmsCut Back PromotionsMaintain PromotionsCut Back PromotionsHigher Profits for AllMarket Share goes to our firmMaintain Promotions

Market share goes to all other firmsMarket Share stays constant; profits are lowPROMOTIONS AS MARKET TRANSACTIONSSource- Promotion as market transaction in Journal of Management and Marketing Research, Vol. 13, May 2013Authored 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

Promotion Exchange DynamicsPromotion 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 2013Authored by- Nagasimha Balakrishna KanagalCONCEPTUALIZATION 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 share dynamics and market equilibrium.

Promotion AS A MARKETING STRATEGYThe 2 major types of promotion part of marketing strategy are

AdvertisingThis 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 PromotionAffects the company in short term

Objective is to appeal to the consumers rational mind rather than being emotional.

SALES PROMOTION RESEARCHSource 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:

To identify various sales promotion tools influencing consumer purchase decision.

To find the impact of sales promotion tools on purchase decision towards the product.

To find most influencing sales promotion tools on purchase decision.

SALES PROMOTION RESEARCHHypothesis:

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 RESEARCHResearch Design: Descriptive and Causal

Research Instrument: Questionnaire

Data Source: Primary

Measurement Technique: 5 point Likert Scale

SALES PROMOTION RESEARCHData Analysis

Factor AnalysisSignificant variables are considered in multiple regression

Multiple regressionStrength of association tested.

Hypothesis Testing significance of association tested through t and F test.

Scanner data analysisTo 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 & MediaBudget AllocationIntroductory Phase- Consumer Sales PromotionGrowth Stage- Advertisement for brandingMaturity Stage- Advertisement as reminder and promotion for loyalty

Coordination of Ad and promotion themeSales promotion tools to communicate brands unique attributes to reinforce advertisement campaignMedia Advertisement to draw attention to sales promotion program

Media Support and timingCoordination among Sales Promotion and ad campaign and media to create awareness, interest and favorable attitude

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

Relationship between advertising and sales promotions with brand equity dimensions and brand equitySource: Review the Impact of Advertising and Sale Promotion on Brand Equity | Journal of Business Studies Quarterly 2012|Questions