Wednesday 8 October 2008

Andrea's case 2 writeup

If Internet media is so measurable, how can Heather Yates and Bill Bishop be in such a predicament?
Companies that rely on a large part of their revenue from advertisements on their webpage have to compete for companies. This is the case with Mednet since their service is free of charge, all their revenue comes from advertisements. Even though internet media is measurable it still has competition. Heather and Bill had the challenge of proving and showing Windham how they would produce higher profits. They had to prove the profits using non-financial support for example the reliability of the content in the website.

What does an advertiser want? Sales, leads, brand awareness? What are the best metrics for measuring these? I think the number one thing advertisers want overall is sales that produce profits. Like Baker, sometimes companies concentrate too much on the money and don’t think about how and why the money comes. Advertisers should want to be charged on ads for committed and serious customers. They want consumer to have a positive impression of their company and products. They invest to shape consumers long-term perceptions and attitudes towards a product. They also want proof from a company that their money is being spent to bring in value and money. It definitely does want brand awareness which comes through loyal customers and reputation. Measures of their wants can include ways like the barcode system Mednet used. They can be measured by CTR (click-through rate) to track campaign performance. They use attitudinal research to track consumer attitudal response to advertisements. Reach and frequency a branding metric is also used.

What specific consumer behaviors determine whether or not a business model produces the results an advertiser wants?The time and how often a consumer visits a site could be a determination as for Mednet consumers serious about purchasing advertised products only visit the website during a crisis. At this time they spend more quality time searching through the site. Consumers actually purchasing an item after clicking on the advertisement is a consumer behavior wanted. They also want consumers to recommend their product to friends and family. They want customers to market the quality and satisfaction to others. Consumers who visit a site with an intention of looking for something is wanted.
What steps can MedNet take to address emerging competitive threats?
They can continually have their eye open to threats of new competitors, take advantage of technology shifts, develop new competence, keep up with the pace, detect signals and prediction markets. They need to track consumer trends, behaviors and attitudes. They can track success of their competitors.

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