Measures of Recognition and Recall
Assesses whether advertising has successfully influenced brand awareness and influenced brand-related thoughts and feelings
Starch Readership examines reader awareness of advertisements in consumer magazines and business publications
Bruzzone Research Company (BRC)
Conducts online testing of consumer recognition and recall of advertisers in television commercials
Asks subjects if they remember the advertiser’s name when reviewing the ad with anything identifying the brand now removed
Burke’s Day-after recall examines recognition and recall for television
Day-After Recall Testing
The Ipsos-ASI Next*TV Method
The Recall Controversy
Recall simply measures whether an ad is received but not whether the message is accepted
Measures of Emotional Reactions
Provides indicators of whether advertisements have emotionally aroused consumers
Neuroscience and Brain Imaging fMRI Self-Report Measurement
Measures of Persuasion
Represents prebehavioral indicators of whether an advertisement is likely to influence purchase intentions and behavior
The Ipsos-ASI Next*TV Method
ARS Persuasion Method
Determines whether an advertising campaign has affected consumers’ purchases of an advertised brand
Panel members use handheld scanners to enter:
Record store deals
Record in-store features that influenced their purchasing decisions
Push strategy: “pushing” merchandize towards a retailer to carry your brand.
Pull strategy: “pulling” on a consumer to make your merchandise attractive to the consumer.
Push targets the retailers/companies supplying items, and pull strategies target the consumers to entice them towards your products.
Balance of power shift
The balance of power refers to the change of power from manufacturers to supply chains and retailers. Originally, manufacturers had power because of lack of technology, they were able to persuade and use their figures to convince retailers to carry their products. Additionally, tv advertising was especially effective, meaning that even if they didn’t want to carry a specific brand, their customers would request it so they would have to purchase from the manufacturers. However, due to the technological increase and the result of the scanner and other technology, retailers are in control and understanding of what items sell and what items don’t as well as what promotional advertisements and sales work and which don’t. Because of this, they can control the price of contracts and negotiations. On the other hand, not all retailers are in control of their manufacturers. An example is Nike’s power over Foot Locker.
Old and new accounting procedures
Old accounting procedures with respect to promotion gave for the opportunity do count sales promotions as an expense. For instance, if an item normally sells for $1.00, but a promotion is ran that drops the costs to $.90, the $.10 in discounts was subtracted as a sales promotion and not as a loss in revenue. Under the new accounting procedures, (Regulations EITF 00-14 & 00-25) the Financial Accounting Standards Board (FASB) made a rule that dictated the $.10 in discount be subtracted from its revenue. This resulted in companies reported net sales to decrease by 8.5% on average.
What can Sales Promotions do?
Sales promotions are intended to: stimulate sales force enthusiasm for a new, improved, or mature product; invigorate sales of a mature brand; facilitate the introduction of a new product to the trade; increase on- and off-shelf merchandising space; neutralize competitive advertising and sales promotions; obtain trial purchases from consumers; hold current users by encouraging repeat purchases; increase product usage by loading consumers; preempt competition by loading consumers; reinforce advertising.
In other words, promotions aid in mainly short-term goals