CASE STUDY #4: MEDNET MRK519-MT. Travis Beitler SN# Professor Duncan Reith
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1 MRK519-MT Travis Beitler SN# Professor Duncan Reith
2 Table of Contents 1. What does an advertiser want? Sales, leads and/or brand awareness? What are the best metrics for measuring each of these and why?... 2 Business Objectives... 2 Budget... 2 Product Life Cycle... 2 Sales Force... 2 Consumers... 2 Campaign Objectives... 3 Coverage... 3 Direct Response... 3 Location... 3 Brand Image... 3 So What is the Right Metrics for Sales, Leads, and Brand Awareness? Prepare the table below that Heather Yates can use to persuade Mahria Baker than Mednet is a better platform than Windham Works Cited... 5 Rubric... 6 TRAVIS BEITLER 1
3 1. What does an advertiser want? Sales, leads and/or brand awareness? What are the best metrics for measuring each of these and why? There is no absolute method to determine what an advertiser wants. Each advertising firm has key strategies they employ in order to generate sales, leads, or brand awareness. Greg Satell from DigitalTonto, describes 3 key areas each firm looks at before deciding on which approach is best for said brand or company: Business Objectives: What are the key business objectives that drive the firms advertising strategy? Campaign Objectives: Individual campaigns need to have set goals that line in with the beliefs of the company or brand Procurement: There has to be a client that is willing to buy your advertising medium (media buyer). (Satell) Business Objectives Each campaign has a key set of operating activities which include: budget, product life cycle, sales force, and consumers. Budget Overall budget determines how much can be spent on specific campaigns. For instance, Anheuser- Busch InBev has a massive advertising budget: sales and marketing in 2014 was $7 billion (Anhueser- Busch InBev, 51). This allows them to produce material across multiple traditional channels as well as through digital channels. Smaller clients - local YMCA s, have to be a bit more careful with their marketing expenditure, preferring smaller, more strategic targeting. Product Life Cycle Short-term Product Cycle Products that consumers purchase based on impulse, or little to no thought process (candy bars, chips). Usually items are bought frequently and are based on consumer s top of mind view of most recent ad High coverage, call to action media (Satell). Long-term Product Cycle Usually products that consist of heavy customer research (electronics, automobiles). Long-term products usually call for brand awareness before shifting to selling the product. Sales Force Products or services that have a particularly effective sales force (Xerox) tend to me more focussed towards brand awareness. Xerox salesforce typically provide FAB (features, advantages, benefits) of their products (photocopiers) through the LinkedIn platform and can measure customer engagement through BM (Brand Monitoring social listening) tools. Hootsuite for instance, measures how frequently consumers are saying positive/negative things about your brand by using keyword searches (a selection of up to 3 keywords). BM tools further allow users to measure based on how often: frequency of visit, when: time of day, how long they view, and where they re viewing from. Consumers Which consumers will purchase the product (target market) and what is the most effective way in reaching them: i.e. millennials through mobile applications, social media. Metrics such as cost per friend can determine how successful the brand engages with its customer base. TRAVIS BEITLER 2
4 Campaign Objectives Is broken down into several areas: coverage, direct response, location, brand image, and awareness. Coverage Determining what kind of coverage your campaign is involved in will effect which audiences you reach mass, or niche Direct Response Also referred to as call to action (Satell). Call to actions are usually sales driven and used for both traditional media: radio, television and outdoor, and digital media: social media blogs, twitter, Facebook. CPA (cost per action) and PPC (pay per click) are typical forms to measure direct response (Satell). Location Where people are in terms to mediums mobile, home, work. Digital is being consumed more frequently through mobile phone, allowing for unique advertising opportunities. 55% of Canadians own a smartphone, and 3 million have purchased one in the last 6 months (Catalyst). Brand Image The stronger the brand the easier it becomes to project a positive image. Digital (social media) has recently become successful with engaging consumers through brand image. Social listening is effective in measuring brand image, and its overall campaign awareness across social media. So What is the Right Metrics for Sales, Leads, and Brand Awareness? Ultimately, there is no one right answer to which metric is best for sales, leads, and brand awareness. Each situation, advertising firm, media buyer, will have specific objectives to measure with. Consider Volkswagen, they would be more or less concerned with first raising awareness with their brands of cars and overall reputation. Their recent fiasco with the diesel engine and carbon emissions ended up battering their credibility. On the other hand, Doritos a short life cycle brand, would be more concerned with sales than awareness. Their advertising media would be broad in nature, measuring customer engagement through social media (cost per friend) and PPC through Google Keyword planner. Their main goal is to push sales frequently, cashing in on consumers impulse for their product. Successful advertising campaigns work through business objectives, campaign objectives, and procurement, to practice the proper metrics for their clients. TRAVIS BEITLER 3
5 2. Prepare the table below that Heather Yates can use to persuade Mahria Baker than Mednet is a better platform than Windham. Metric MedNet Marvel Newspaper Visitors per Month 4,300,000 19,000,000 5,000,000 Impressions per Visitor Cost for Advertising $1,720,000 $430,920 $260,000 CPM $100 - $52.00 Click-Through Rate 3% 1.4% 0.74% Number of Click-Throughs 516, ,000 37,000 Cost per Click-Through $3.33 $0.54 $7.03 Purchase % 6% 2% 12% (Advertising) Cost per Purchase $55.56 $27.00 $58.56 Contribution per Sale $ $45.00 $ New Customers 30,960 15,960 4,440 Income $4,644,000 $718,200 $732,600 Profit $1,204,000 $287,280 $472,600 ROI 170% 66.7% % TRAVIS BEITLER 4
6 Works Cited Anhueser-Busch InBev: 2014 Annual Report " Anhueser-Busch In Bev. Dec 2014: Web. 30 Nov Catalyst. "Canadian Smart Phone Market" catalyst.ca, Web. 05 Dec Satell, Greg. "What do Advertisers Want?" DigitalTonto; 18 Aug Web. 05 Dec Young, Allegra. "MedNet.com Confronts Click-Through" Briefcases Harvard Business School (2007): Web. 05 Dec TRAVIS BEITLER 5
7 Rubric Criteria Possible Marks Discussion of what advertisers want; the best metrics for sales, leads and brand awareness /20 Completed table /45 Total Marks for Case Submission /65 TRAVIS BEITLER 6
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