Measuring Advertising Effectiveness


The business advertiser rarely expects orders to result immediately from advertising. Advertising is designed to create awareness, stimulate loyalty to the company, or create a favorable attitude toward a product. Even though advertising may not directly precipitate a purchase decision, advertising programs must be held accountable. Thus, the business advertiser must be able to measure the results of current advertising in order to improve future advertising and must be able to evaluate the effectiveness of advertising expenditures against expenditures on other elements of marketing strategy.

Measuring advertising effectiveness means assessing advertising’s impact on what “intervenes” between the stimulus (advertising) and the resulting behavior (purchase decision). The theory is that advertising can affect awareness, knowledge, and other dimensions that more readily lend themselves to measurement. In essence, the advertiser attempts to gauge advertising’s ability to move an individual through the purchase decision process. This approach assumes, correctly or not, that enhancement of any one phase of the decision process or movement from one step to the next increases the ultimate probability of purchase.

Business marketers should also measure the indirect communication effects of advertising. Advertising affects word-of-mouth communications (indirect effect), and such communications play an important role in buyer decision making. Similarly, advertising indirectly affects buyers on the basis of its impact on overall company reputation and on the sales force’s belief that advertising facilitates their selling tasks. Advertising effectiveness measurement include a procedure for tracking and measuring the impact of advertising on the indirect communication effects.

Advertising effectiveness will be evaluated against objectives formulated in terms of the elements of the buyer’s decision process as well as some of the indirect communication effects. Advertising efforts will also be judged, in the final analysis, on cost per level of achievement (for example, money spent to achieve a certain level of awareness or recognition).

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, Line of Sight

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Treating Employees as Customers


If employees feel valued and their needs are taken care of, they are more likely to stay with the organization. The CEO’s primary job is cultivating a corporate culture that benefits all employees and customers. If you build a company and a product or service that delivers high levels of customer satisfaction, and if you spend responsibly and manage your human capital assets well, the other external manifestations of success, like market valuation and revenge growth, will follow.

 

Many companies have adopted the idea that employees are also customers of the organization, and the basic marketing strategies can be directed at them. The products that the organization has to offer its employees are a job (with assorted benefits) and quality of work life. To determine whether the job and work-life needs of employees are being met, organizations conduct periodic internal marketing research to assess employee satisfaction and needs. Become the best place to work by doing the following:

  • Treating employees as customers;
  • Using employee input and a fact-based approach for decision-making in the design and implementation of human resources policies, programs, and processes.
  • Measuring employee satisfaction and trying to continuously improve the workplace environment.
  • Benchmarking and incorporating best practices.

 

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, Line of Sight