Using the Rossiter-Percy Grid to Identify KPIs - Part 2

Effectiveness of Advertising
"Using the Rossiter-Percy Grid to Identify KPIs - Part 2"
Article No. 8 (by Hideaki Koizumi)

In my previous article, I introduced the use of the Rossiter-Percy Grid to specify KPIs (Key Performance Indicators), which can be used to find these keys to measuring the effectiveness of advertising in a more logical way. And in particular, I explained two of the cells in the chart below; the low-involvement/informational cell and low-involvement/transformational cell. As I mentioned in my previous article, informational products are things that deal with problem removal or help you to cope with some incomplete satisfaction. An example of a low-involvement/informational product is a detergent that removes mold. On the other hand, low-involvement/transformational products are sensory gratifying things, such as a premium ice cream and confection.

Then, what could be the KPIs for high-involvement products? Regarding low-involvement/informational brands, we need to understand that the index will change depending on the stage of the product's lifecycle. Take for instance a HDD recorder which has the most up-to-date functions. Understanding of the product's category will be required at the first stage of the product's lifecycle. After the category needs are realized, what is more important is that consumers understand the benefits of the brand. Unlike low-involvement/informational brands, high-involvement brands need to convince consumers to buy them with confidence prior to purchase. Therefore, KPIs may not only be having 'understanding of the brand's benefits', but also 'CM persuasiveness' to convince consumers to buy.

On the other hand, the situation with high-involvement/transformational brands, such as high-class fashion brands or a luxury cruise line tours, is different from low-involvement in that having only 'CM preference' is not enough. These brands also require consumers to identifying their wants with the brand's benefits. In other words, consumers feel like the brands exist for them, according to Rossiter & Percy. When in contact with an advertisement, consumers need to imagine a situation in which they are using the brand. Therefore, one KPI could be an index that measures, for example, "do you feel the brand exists for you?" The other different point from low-involvement is that 'emotional communications with a sound of reality' is important for high-involvement/transformational brands. But it is rather difficult to create an impression with a sound of reality compared to just communicating a product's functions.

It is not easy to identify KPIs in a logical way as there might be difficulties in figuring out in which cell to locate the brand, or there may be the case in which the brand can be located within two cells. However, one way is to deeply think about the advertiser based on their marketing activities, and then based on this, identify their KPIs.

In my next article, I'll explain about how to measure advertising effectiveness of 'plural' media. So, this would be not only measuring TV and magazine effectiveness, but also sales promotions (SP) and Transit advertising, etc.

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