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RESEARCH PAPER - I

Measuring Marketing Strategies
This paper discusses the various parameters that have to be considered when using marketing strategies. It also discusses the techniques & variables that are used to measure the effectiveness of any marketing strategies.

Akanksha Bhalla 403 l Telecom l Marketing

INDEX Introduction Marketing Process GAP Analysis Impact of Increase of Advertising Budget Impact of Increase of Sales Force Response Rate Impact of Repetition Methods to Measure effectiveness of the Ads Measuring Brand Strength Conclusion Bibliography 2 3 4 5 6 6 8 10 12 13 13 Page l1 .

which helps induce preference and eventually conviction in consumers towards certain products. allowances for amount of sales etc. press bulletins etc. DISTRIBUTION-PROMOTION MIX: e. sales contests. samples. exhibition.g. Press conference. Promotion intersperses with price.g. PUBLICITY-PROMOTION MIX: e. 4. contests. coupons etc. product. managed & maintained. PRICE-PROMOTION MIX: Promoting by offering price modifications e. 2. Page l2 .e. PRODUCT-PROMOTION MIX: Promoting by changing the basic product e. sweepstakes etc. 3.Increase in Sales and invariably profits are impacted by a lot of marketing activities that take place in conjunction.g. economy packs. This is more B2B 5. COMMUNICATION-PROMOTION MIX: Promotions by strengthening the communication in a short period of time e.g. Promotions are situational i. Some of these factors & parameters that enhance sales include: # Sales Force # Distribution (Different Channels): deliver # Promotions # Product Quality: That meets need & adds Promotions assist in crossing 3 main barriers that the previous 4 functions cannot achieve: PSYCHOLOGICAL BARRIERS: Helps change people perception/preference RISK BARRIERS value # Product Price: offer by consumers # Product Demand # Communication (Advertisements/Media): COMPETETIVE BARRIERS: Helps in High Substitute/Competition Environment influencing preferences Of these the following 4 are very important and need to be fulfilled for a successful launch & exchange of products/services. end of season sales. distribution & communication in the following way: 1. The entire marketing process can understood from the following flow chart: be Price: Value Product: Need Commun ication: Influence Distribu tion: Deliver Promotion is over & above these basic functions. payment on credit. action advertising. they are carried out differently for different product/places etc. 3 for price of 2. With these as basis can demand be created.g.

target segment. product characteristics. ads are finalized Division of the budget allocated Page l3 . The Company’s marketing team based on the budget creates a campaign along with the media house. message & content Media plan. A situational analysis is done based on company’s strength. The selling & distribution decisions Communication plan. The Company’s marketing team based on the budget creates a campaign along with the media house. time etc.IDENTIFY THE OBJECTIVE OF THE FIRM BASED ON THE PRODUCT/SERVICE THAT IS BEING INTRODUCED MARKET RESEARCH ACTIVITIES ARE PERFORMED (Primary Research/Surveys/Interviews & Secondary Research) IDENTFY CLIENT EXPECTATIONS. EVALUATE FEEDBACK (This is based on the analysis of the data collected) The Media-Advertising group is briefed to create a suitable advertising campaign & prepare a promotion plan The Company’s marketing team based on the budget creates a campaign along with the media house. channels.

various marketing tools are used as follows: Each of these parameters helps in reducing the GAP. The forecast may not always be in line with the objective set in terms of amount of sales.From the entire marketing process one can observe that it begins with market research which involves forecasting & trend analysis of the products/services. To bring the observed trend in line with the objective set for sales and minimize the gap between the two. This gap varies from product to product and thus measurement of these becomes essentially important as implementation varies accordingly OBJECTIVE New Product New Markets Promotional Activities GAP Sales Deeper penetration & distribution New Strategies for communication TREND/FORECAST Time Line Page l4 .

5 1 1.g.5 INCREASE IN ADVERTISING BUDGET A linear representation of advertising expenditure & sales is therefore misleading & inadequate as it ignores the other interacting variables.5 1 1.5 1 1. distribution channels to penetrate well in the Market etc. INCREASE IN ADVERTISING BUDGET An increase in advertising expenditure increases sales to some extent. as demand for a product is limited & not indefinite so no additional sales can come by hyping the budged beyond optimum levels. A small advertising budget will not have a substantial impact on consumers to actually make them go & buy the product. an increase in the advertising budget will have NO IMPACT on sales. IMPACT ON SALES VOLUME 8 6 4 2 0 0 0.Analyzing the impact of some factors on sales……: advertisement well as: 1. Beyond the upper limit. HUL & P&G) INCREASE IN SALES FORCE A concave representation of the impact of Increase in Sales force on sales would be apt. An S-Shaped graph represents the impact of 5.5 IMPACT ON SALES VOLUME Impact of Ad Budget Impact of Sales Force 4 3 2 1 0 0 0. 2. if it is not supported by other variables like product quality/value. Extremely large advertising budget are used to target the more difficult customers from whom it is difficult to generate a sales response or in an extremely competitive environment (e. IMPACT ON SALES VOLUME Impact of AD Budget 8 6 4 2 0 0 0. Advertising budget if enhanced beyond the threshold value will increase the purchase responses 4. Small advertising budget if pumped simply creates a little brand awareness and does not create enough push for the target audience to buy the product. however advertising alone CANNOT drive sales. Advertising can however to a large extent provoke buying responses that can be shown from the following graph.5 INCREASE IN SALES FORCE INCREASE IN ADVERTISING BUDGET Page l5 . 3.

5 1 1. their needs/ demands have been well understood. Response rates are high for well-established Products/Businesses because the target customers for these are known.5 2 INCREASE IN SALES FORCE Hence there is a saturation level reached after which sales cannot be enhanced by simply increasing the sales force. It also helps in Cross-selling new product lines to the existing customer base. this is as shown: RESPONSE RATES HIGH WELL ESTABLISHED BUSINESS/ PRODUCT OLD/VERGE OF OBSOLESCENCE PRODUCTS F E E E D B LOW ABSOLUTELY NEW BUSINESS/ PRODUCT A C K Page l6 . It is however important to perform a RESPONSE ANALYSIS. this customer base continues to increase till the optimum level of the number of sales representatives is reached. to check the response rate of customers. Hence it can be said that: RESPONSE RATE ~ (Proportional) SALES Response rate can vary as per the attractiveness . A high response rate makes these markets extremely attractive as it gives organizations a chance to customize offerings thus further extending the phase of attractive markets. Hence any negative change in the response rate can kick start a cascading effect that impacts all the basic parameters in marketing.The concave curve shows that as the sales force increase initially they bring in good prospects (Customers & Orders). 4 IMPACT ON SALES VOLUME 3 2 1 0 Impact of Sales Force 0 0. this is as seen in the diagram. The minute a decline in the rate of response is observed changes are made to all the underlining concepts & strategies by the organizations. RESPONSE The response to a particular product varies from HIGH to LOW. Beyond this increase in sales force will diminish the rate of increase in sales and finally reach a stagnant level where it will have NO IMPACT on the sales at all. The response rate can be directly a measure of sales for that product.

Credibility 2.5 Page l7 . Fear/Humor Other Factors: Distractions. Repetitive: frequency/recall 1. the customer however the consumer measure the communication process on the basis of the following parameters: FOR SENDER 1. 2. SENDER •Organisations media partner FEEDBACK Content. It can put off customers thus bringing down the response rate rapidly. The honesty/sincerity/nonbiased & consistency of the manner in which communication has taken place. This is crucially important as a campaign has a very powerful impact on the consumers. 2. Customer (Response) 5 DEGREE OF PERSUATION 4 3 2 1 0 Impact of Media A Media/advertising campaign is a mode of communication of the product/service to the consumer.Apart from the overall product response organizations also track the response of their MEDIA/ADVERTISEMENT campaigns. Message & Structure •Tag line. Forceful Amount of Information & Order: Simple or cumbersome 5. Wit. 4.5 1 1. The attractiveness created in terms of promotions to create a familiarity & liking of the product Some of the other parameters that measure the content/ message that is sent across include the following: FOR MESSAGE Rationality: Product features & use Emotions: Negative/Positive. 4. If the impact of a campaign starts to be negative organizations make efforts to have it removed immediately as these campaigns have widespread coverage which can start affecting sales almost instantly. impression etc Medium •Personal/NonPersonal •TV/Radio/Print/ In person The response curve can be seen as follows of the level of persuasion created by the mode of communication about the product. Creating perception of Competence/ expertise/experience 3. It can: 1. 3. It can drastically increase the response rate. Response rate measures the success of the media/ad/content in terms of acceptance from 0 0.5 FEAR 2 2. It is important to remember it direct impact on Sales.

satisfaction. helps in penetration. Increase in repetition to certain threshold level increases awareness.Example: The UNICEF AD Campaign about the plight of children in Africa. affection. attraction & liking NEGATIVE EMOTIONS 1. fondness. enjoyment. nervousness. pleasure. Guilt. 2. helps the product to reach out to a larger market. hostility. Exposes Plight of Children & Poverty Generates Negative Emotions Responces from the rich are empathy/ benovalence IMPACT OF REPETITION Repetition of an advertisement is also a measure of successful marketing strategy as repletion can increase response rate & drive sales. Repetition impacts psychology and creates an attraction 2. 4. Hence the categories of emotional reactions that successfully elicit a response and are parameters to measure the manner in which a product has been communicated to its customers are as follows: Page l 8 . anxiousness. It focuses on their standard of living. Fear. The ad generates: POSITIVE EMOTIONS 1. compassion. defensiveness or envious it can be called a high response generating communication media. Love. concern. panic & anxiety. loathing. elation. It is persuasive in nature & helps generate greater recall value. It is essential in a competitive environment where there are multiple brands and brand retention is difficult 3. disgust. recall. regret. tension. shame. tension. 2. hygiene conditions. 3. Some of the advantages of repetition include: 1. worry. rage. The impact of repetition can be mapped on a graph to get a half bell shaped curve. Anger. however it reaches a saturation point beyond which repetition has NO further positive IMPACT Helps them take a decision to lend a helping hand Hence if media can generate responses by generating emotions like: anger. and scarcity of food & water. Repetition helps breakthrough the perception barrier of the consumer and generate liking  preference  conviction towards a particular product. Joy. cheer. happiness. fright. guilty. hate. terror.

It can be shown as follows: High Product Involvement 1st LEARN then Feel then do 1st FEEL then learn then do Low Product Involvement 1st DO then learn then feel 1st DO then feel then learn Page l 9 . promotions etc. expensive electronic goods usually come in the category of HIGH cognition level whereas daily used product come in the category of low cognition. is also highly dependent on a consumer factor called: COGNISTION. will be done by the consumer before buying the product.5 1 WEAR OUT 1.5 INCREASE IN SALES FORCE The impact of Ads. The graph plots are as follows: IMPACT ON SALES VOLUME Impact of Repetition 5 4 3 2 1 0 0 0.on the consumers. Sales force. Repetition. Complex. Cognition is a measure of the amount of research/thought process/analysis of specifications etc. Hence while measuring the effectiveness of the marketing strategies deployed by the organization it is important to group the product as per the cognition levels.

Researchers confirm from the respondents if they have viewed the entire serial following which they test them on: 1. Similar measurement & tests are performed for Print & radio ads as well. Some of the other methods of measuring commercials effectiveness are: # Visiting homes to take interviews. # Recording reaction after tape viewing # Mass viewing at shopping malls & theaters. attitude towards the # Realistic & rationale of the AD was digestible or not 3. Page l 10 . 2. filling questionnaires & encouraging GD’s to find level of involvement. a burke score of above 24% is usually considered effective. material. recall/ content etc. RECALL: If viewers were able to retain the ad shown 2. NATURAL TEST In this mechanism the respondents are made to view ads at different sites in a geographical area. The main focus while conducting a survey is to find out the following: # Recall # Recognition of Brand Name # Respondents Interest # Liking of the AD # Reaction & campaign. 3. amount of information given & awareness created. The parameters on which testing is done is more or less similar e. They are made to fill questionnaires and while viewing their reactions are noted. DAY AFTER RECALL In this technique firms call household in a preidentified area randomly one day after a commercial has appeared on the television. CONTENT: the ad content. Based on this a ‘BURKE SCORE’ is calculated.MECHANISMS TO MEASURE COMMERCIAL (AD) EFFECTIVENESS Some of the techniques used to measure an ad’s effectiveness include: 1.g. RELATED RECALL: If the recall of related / competitors product is better or worse. CONDUCTING SURVEYS In this method a survey is conducted via an email/post.

FACTORS No 1.g. Marketing Support 6. the intangible profit is all deducted from the total profit and only the profit earned from the sale of products based on the BRAND is considered. Market 3. it also helps identify exactly those factors that need to be worked on. Higher models that are based on financial values & structure have also been introduced for using in the industry however is currently beyond the scope of this paper. International Presence Weights of these factors 25% 10% 15% 10% 10% 5% 25% This system helps in decision making. Legal Protection 7. Brand Leadership 2. Some of the parameters that contribute to brand value are as follows: Sr. Page l 12 . Brand Stability 4. Brand Trend 5. Managers then can classify those areas and strategize accordingly to build a greater brand value. Brand multiplier is based on a number of predecided factors and variables these include the following: Apart from these there are a lot of other modules & factors that can be used for calculating Brand Value.MEASURING BRAND STRENGTH Of the many one very often used formula for calculating brand strength is as follows: Brand Value = Brand profit x Brand multiplier To calculate the brand profit all the profit which is associated with the other aspects of business e.

brandingstrategyinsider. companies have to prepare a perfect mix of factors that can boost sales.com Marketing Management & Strategies: By John Graham. # TRP & GRP are important figures that have to be considered while designing the media campaign & finalizing slots for the ad campaigns.frugalmarketing.marketingprofs. This helps organize analyze which area needs improvement. # Nowadays most of these evaluations are done using soft wares that can process the various marketing variables and give the optimum answer. # Marketing a product/service cannot be simply based on 1 or 2 variables or factors.com www. REFERENCES www. # No factor can solely increase sales & thereby profits. a wide range of variables have to be considered before strategizing.com/ www. Tata McGraw Hill Page l 13 . they are deployed after a calculated decision making process. Exponential increase in any factor after some time will have NO IMPACT on increasing sales. # A well balanced & measured marketing mix can largely minimize the gap between the organizations objectives & the actual ongoing trends/forecasts.CONCLUSION # Marketing strategies are not based on simple logic or impulse.