Methods of measuring the economic and social effectiveness...

Methods for measuring the economic and social effectiveness of advertising

The effectiveness of advertising is made up of its communicative, economic and social effectiveness. In Fig. 8.3 presents a hierarchical model of communicative effectiveness of advertising of hotel services (products), which reflects the need to attract attention, positive emotions, recognition of the brand; motivation, persuasion of the superiority of the brand [33]. The process of forming customer loyalty begins with the purchase of a hotel product and is formed at the time of consumption of the product, depending on the conformity of its quality to the expectations and desires of customers.

This model takes into account such factors as the non-materiality of the advertised services, the high degree of involvement of the consumer in the decision-making process, the significant role of consumer expectations in the formation of loyalty, the subjective nature of the motivation of buyers.

If the evaluation of the communicative effectiveness of advertising requires a phased analysis, a hierarchical approach, then the economic effectiveness of advertising shows the final result in the form of a change in economic

performance indicators of the hotel: turnover, profit, fixed assets, market share, profitability, rate of return, etc.

The simplest models of the economic efficiency of advertising show the ratio of the costs of advertising and the resulting effect in the form of sales. More complex models also take this ratio as a basis, supplementing it with other factors.

Fig. 8.3. Hierarchical model of communicative efficiency of advertising of hotel services (products)

Modern models are non-linear, which allows you to connect together the communicative and commercial components of advertising effectiveness.

For example, the S-shaped function that describes the effectiveness of advertising has the following form (Figure 8.4) [33]:

where Y - the expected result; I - advertising costs; с, у, F, р - coefficients that take into account the share of the firm's voice in the advertising market, based on advertising costs; market share occupied by competitors; popularity and popularity of the brand.

In Fig. 8.4 are reflected:/- advertising costs; Y - Expected result, mt - brand recognition effect without advertising costs; шкс - limit the effectiveness of advertising; the optimal advertising costs will be in the range between/ 0 and/p costs less than/ 0 or larger 1 { , can only slightly affect the advertising result (but the Y axis).

Fig. 8.4. Graphical interpretation of the 5-shaped function

It is necessary to avenge that advertising requires significant expenses and therefore the hotel enterprise needs to constantly evaluate its feasibility, the effectiveness of its individual means of distribution, and determine the level of its impact on target audiences.

When assessing the economic and social effectiveness of advertising there are significant difficulties caused by its complex and contradictory impact on the contact audience. With known components of the design of advertising, the interactions of these components and the contribution they make to the overall result from advertising are practically not studied.

The advertisement of the hotel enterprise is realized as part of the marketing communications complex (see Figure 8.2) and it is extremely difficult to single out its result in the implementation of this complex. Therefore, it is practically impossible to estimate the effectiveness of advertising sufficiently accurately. Too many factors affect the sales volume in addition to the advertising campaign. But the rapid growth in sales after the implementation of the advertising campaign indicates the possibility of obtaining a sufficiently reliable estimate of its effectiveness.

The effectiveness of advertising is largely determined by its quality delivery. To do this, you need to develop a design, broadcast, view, justify the need to prefer the purchase of hotel products in relation to competitors.

Despite the above reasoning, the hotel company still needs to evaluate the effectiveness of advertising. This assessment can be carried out in three main components:

1) evaluation of the effectiveness of advertising policy in general. The degree of awareness about hotel products before and after the advertising campaign is studied;

2) evaluation of the effectiveness and popularity of individual advertising media (advertising media) for different target audiences;

3) evaluation of the effectiveness of individual advertising campaigns.

In this case, an expert approach can be used to evaluate each such component of efficiency, taking into account its importance. Finding a summary of these components will reflect the overall effectiveness of a particular advertising company. This approach can be used both to compare the effectiveness of individual advertising companies of a hotel company, and for comparison with similar companies of competitors.

The economic effectiveness of a particular advertisement can be determined by measuring its impact on the growth in sales volume before and after conducting promotional activities based on operational and accounting data. But the growth in sales is affected by many components, including the quality of hotel products and their price, level of service, etc. This approach yields acceptable results only if the effect of advertising is manifested relatively quickly after its application.

The economic effectiveness of advertising can be reliably estimated only if there is a certainty that all 100% of sales depend on advertising materials.

In practice, you can use the profitability indicator of advertising, i.e. the ratio of the profit received to the cost of advertising. This approach has the same drawbacks as those mentioned above.

It is believed that the best way to determine the impact of advertising costs on sales is the experimental method. In this case, the hotel company selects, for example, three comparable local sales markets, in each of which the volume of allocations for advertising is the same percentage of turnover. Then, in the first market, the amount of allocations for advertising is increased by a fixed share; on the second one they reduce, for example, by 50%, and in the third control market

The appropriations remain unchanged. Data obtained from the experiment on changes in turnover can serve as a basis for further calculations of the economic efficiency of advertising.

Correlation analysis is also used as the most effective method for evaluating advertising. This method is effective in the event that the evaluation of advertising was made for the entire duration of the advertising, and taking into account the inertia. So, if it is revealed that 20% of the effectiveness of advertising falls on the first month, and 40, 30 and 10% respectively for the second, third and fourth months, then taking into account the time lag, the first month is given priority.

An approach based on calculating the effectiveness of advertising costs ( CE1 ) is also useful, but compared to a competitor using the formula

where М |, М 2 - sales volumes of the hotel company and its competitor for a certain time; 3 lt 3 2 - the amount of costs for advertising the hotel company and its competitor, which indicates a higher efficiency of advertising costs for the hotel in relation to the competitor.

Currently, there are no standardized indicators that can estimate the return on investment invested in an advertising company on the Internet. However, often such estimates as the clickthrough rate CTR (Click-Through-Ratio), , which is defined as the ratio of the total number of clicks to the link of the advertising ads to the number of its views for the same period of time, and the conversion rate - To koi , which shows how much the visitors of the ad performed the requested action: made a purchase, registered or subscribed.

In general, to increase the economic efficiency of advertising, you need:

• Plan advertising work before it starts, otherwise it will become impossible to get rid of the effects of extraneous factors, and differentiate the effects of various promotional activities and tools;

• highlight and correct major errors in promotional materials;

• Optimize advertising costs by eliminating ineffective promotional activities;

• compose an effective selling text and properly illustrate it;

• Keep in mind that investing small advertising costs can not lead to a significant return on them.

Advertising of the hotel company also performs a number of social roles, the evaluation of the effectiveness of which is associated with even greater difficulties. Therefore, we shall single out only the most significant social roles of advertising.

First of all, it informs consumers about new and modernized hotel products. It helps consumers compare

quality characteristics of products of competing hotel companies and make the necessary purchases consciously, based on outgoing information from advertising.

Advertising promotes the development of aesthetic ideas, if it is made in accordance with the latest trends in fashion and design.

In the modern consumer society, when the supply of hotel products outstrips demand, advertising not only fulfills the information function, but also contributes to the increase in demand for these products and, especially, corresponding to a certain brand.

When answering the question whether an advertisement is a reflection of public values ​​or contributes to their creation, many authors come to the conclusion that advertising in its development and improvement in some cases contributes to the creation of social values ​​and turns into a kind of instrument of social control and imitation.

Many hotel chains, advertising the dignity of their hotels and their products, contribute to a general improvement in the quality of hotel products of rival networks and independent hotel industry.

The role of advertising is particularly great in the impact on consumers and other interested audiences in the creation and consolidation in their minds of the place and role of a particular hotel enterprise and its leadership in public life, social responsibility to society and the benefits it brings.

In this case, advertising increases the prestige of the hotel company, telling consumers and interested persons that the hotel is a worthy member of society and contributes to the welfare of the region.

Currently, in the harsh conditions of the external environment, the sustainable activity of hotel enterprises is largely determined by the way consumers and society as a whole are treated. In this regard, hotel companies not only focus their activities on the consumer, but also develop their relations with the public, i.e. they seek to make the public their partner.

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