M Com 2nd Year Advertising Sales Management Study Material Notes

IMPORTANCE OF EVALUATION OF
ADVERTISING EFFECTIVENESS

It is the time of cut-throat-competition. To succeed in this type of competition and to capture a place in the market, every business and industrial enterprise has to depend upon advertising, Heavy amount is spent every year by these enterprises on their advertising campaign. Therefore, it becomes imperative for the management to evaluate the effectiveness of advertising. Management wants to know the extent to which the advertising programme of the enterprise has been successful. Such evaluation is called the Evaluation of Advertising Effectiveness. Following are the reasons for which the evaluation of advertising effectiveness becomes necessary.

1. Achievement of Advertising Objects. Evaluation of advertising effectiveness helps in the evaluation of achievement of advertising objectives of the enterprise. Some of the important objectives of advertising programme of an enterprise may be as-(i) To increase the goodwill of the enterprise; (ii) To increase the sales of the enterprise; and (iii) To aware the consumers of the products of the enterprise and the enterprise itself.

2. Heavy Expenditure on Advertising Programmes. Advertising is very expensive these days. Heavy amount is spent on advertising these days by all the enterprises. Evaluation of advertising effectiveness helps in deciding whether it is useful to spend such heavy amount of advertising or not.

3. Control on Advertising Expenditure. Evaluation of advertising expenditure helps in controlling advertising expenditure also. Dxpenditure on advertisement must be within limit. so that it may not have any adverse effect on the price of products. To have strict control over advertising expenditure, it is necessary to evaluate its effectiveness.

4. To Study Comparative Usefulness of Various Advertising Media. There are many media of advertisement and an enterprise always wants to advertise through sest media, which media is mo useful for the enterprise, can be decided by evaluation of advertisie effectiveness.

VARIOUS METHODS OF EVALUATION
OF ADVERTISING EFFECTIVENESS

Advertising effectiveness can be evaluated by various methods and an enterprise can adopt any of the methods for the evaluation of advertising effectiveness :

1. Sales Research. Main object of advertising is to increase the sales. So the effectiveness of advertising programmes can be evaluated by evaluating the increase in sales of the enterprise. If the sales of the enterprise increase due to an advertisement, advertisement is said to be effective. If, on the other hand, sales of the enterprise do not increase, advertisement will be said to be in effective.

Under this method of evaluation, two cities with almost equal sales, are selected. Advertisement programme is launched for one city. After a certain time, sales of both the cities are compared. If the sales of the city in which advertisement programme was launched, increase, it is assumed that the programme has been effective in increasing the sales.

2. Memory Test. Memory tests are meant to evaluate the memory and attention value of consumers. There are two methods of memory test : 

(i) Recognition Test. Under this method, advertising copies of some newspapers and magazines are shown to the consumers. While showing these copies, some questions are asked from the consumers regarding advertisement. If the replies to these questions are in favour of advertisement, advertisement is! considered to be effective.  

(ii) Re-call Test. Under this method, advertising copies are not! shown to the consumers. Their advertising memory is tested with the help of some questions regarding product and advertising message for the product. If the answer to these questions are in favour of advertisement of the enterprise, the advertisement is said to be effective. 

3. Awareness Test. Awareness test is widely adopted by the enterprise who want to test the effectiveness of their advertising programme for new products. Under this method, some consumers are selected and asked some questions about brand, trademark of the product and its advertisement. If the answers to these questions are in favour of the products of the enterprise, advertisement is assumed to be effective.

4. Opinion Research. Under this method, some consumers are selected and are asked to express their opinion about the advertisement is quite effective and attractive, it is assumed to be effective,

5. Association Test. Under this method, common sentence or slogan of the advertisement message is repeated before some selected consumers

and they are asked to complete the sentences. If these consumers complete these sentences correctly, the advertisement is assumed to be effective.

6. Electronic Devices. Some Electronic devices have recently been developed to evaluate the effectiveness of advertising programmes. Some important devices are Electronic Scales Techniques etc.

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