A Different Kind of E-marketing

What is the difference between an opinion and a substantive comment? You don’t know either?

It is difficult at times to separate opinion from fact. This is particularly true when reviewing content that is qualitative. It is more difficult to judge an idea, a plan, or other creative output.

Creativity is an art that is not quantitative. Yet we live in a world of quantitative measurement — at least clients do. So, how can a client and agency direct the assessment of creative output like a promotion plan without relying solely on opinion? And how do you ensure that qualitative evaluation takes place, so that programs are not measured only by their quantitative value?

Here’s a suggestion: Grade your promotions in a manner that focuses on both quantitative value — in terms of efficiency, effectiveness, and expense — and qualitative value — in terms of equity enhancement and execution ease.

By reviewing an idea against these five measures, you consider a full range of factors. This method of review is particularly useful when comparing a number of different ideas or programs. Let’s take a deeper look:

Efficiency: Determine efficiency by finding the promotion’s cost per unit moved, the formula for which is: cost per unit moved = total cost divided by total units moved.

We are all painfully aware that not every consumer promotion pays out in the first year. However, other elements of the marketing mix don’t always pay out either, so this efficiency ranking should be reviewed relative to your other expenditures.

Effectiveness: This is defined as total units moved. It is not enough for a program to be cheap, easy to execute, and integrated with advertising. It must also result in the creation of new customers and volume. This is the true measure of effectiveness. When you do not have the benefit of simple redemption to measure units moved, estimate the lift that you will get from running a promotion, advertising, or other program. You can obtain this data from supplier research or historical precedent.

Expense: This is simply the program’s total cost: media + creative development + redemption. We can never walk away from the reality of the budget. A promotion that gets high marks everywhere else may still be undoable if it costs $50 million to execute.

Equity Enhancement: Though you can’t quantify this, you can determine whether something is (a) consistent with advertising and other communications and (b) image-enhancing and/or value-adding.

By including an equity enhancement “measure,” even the most numbers-oriented client must assess brand-building value in addition to quantitative factors. An on-pack coupon, for example, might be efficient, effective, affordable, and easy, but not image enhancing. But add recipes or usage ideas to it and you might have a program that “does it all.”

Execution Ease: This is the estimated total hours required for completion, which typically are not tracked. Think of time as a “cost.” If too much time is spent on one project, it may inhibit the ability to work on more valuable projects. In today’s culture, prioritization and focus are key.

Try using this grading system on an individual program or an entire promotion plan. Once you identify the positives and negatives, you can determine steps for improvement. When evaluating multiple options, you can create a comparison grid (like the one on pg. 53). If every “E” is equally important to you, create an average score. It is best to create a weighted average based on the importance of each attribute.

It is imperative that the promotions you pursue meet the brand’s objectives. By weighing the importance of each ‘E,’ you will determine which attributes are most important.

In the case of something as simple as a layout, not every “E” will apply. That’s OK. A promotion does not always have to be good at everything, but only succeed the way you want it to — namely, to meet the objectives. If your objective is to gain trial and awareness of a new product, efficiency and execution ease will be less important than effectiveness and equity enhancement. (Expense seems always to be an issue.)

Now that you know the tools, let’s recap:

1. Determine the importance of each ‘E’ attribute based on your objectives. Give each ‘E’ a percentage value, which will add up to 100 percent when combined.

2. Assign a value to each attribute.

3. Lay out your options on a grid, calculate a weighted average, and look most closely at the options that garnered the highest grade.

When all is said and done, the sixth most important “E” is experience. If you’ve been in business for a long time, it can be difficult to explain what you know — you just know it. And never underestimate the value of that.

Sara Owens spent more than a decade at Kraft Foods and ConAgra Frozen Foods, and is currently working as a consultant. Reach her at [email protected].