Generally speaking, an advertiser wants to promote his goods and services in order to generate more sales, to gain leads, and to create brand awareness. These concepts are interrelated. Companies advertise their products through the media in order to catch the attention of potential customers. Such a scheme leads to buyers being aware of the company’s products and eventually will make them decide to try the products. Satisfied consumers will become regular customers and would recommend the product to friends and relatives.
In the long run, this process will create higher revenues, sales lead, and brand awareness. An advertiser would also want to know the processes involved in the advertisement of the company’s products, the expenses incurred, and the impact it creates on the company. The best metrics in measuring sales is through checking out the companies financial statements particularly on the income statement’s sales revenue portion. It can be seen on turnover rates and ROI computations as well. Sales leads and brand awareness can be measured through industry analysis surveys and market share analysis.
Brand awareness is also measured using the number of impressions or click-through approaches. 2. What specific consumer behaviors determine whether or not a business model produces the results an advertiser wants? In the cyberspace, if a consumer surfs through the net and clicks on the advertisements posted by the company, the consumer is either interested or is just curious. If he/she stays longer, explored avidly, and requests for more information or a page that has specific advertisements on it; then the business model is producing the results that an advertiser wants.
In other advertising models such as newspaper advertisements, a consumer’s interest is signified if he/she gives calls or makes inquiries about the product. Furthermore, the model has generated brand awareness if there is an increase in the number of visitors clicking on the sight and availing of the information or the products themselves. 3. What is the best argument Heather Yates can make to justify charging Windham Pharmaceuticals for impressions instead of click-throughs?
Does she have acceptable alternatives? Heather Yates argues that consumers who visit MedNet. com are more resolved to buy the products because it appears on a page with trusted medical information. In the cost-per-thousand impression basis of MedNet, one impression meant that one visitor requested for a page that had specific advertisements on it. Impressions measure the number of consumers who are searching for more information about a specific product by clicking on the product’s banner advertisement.
MedNet focuses on actual buyers and not just click-throughs, Click throughs are just opportunities to get the information to the potential consumer but it does not necessarily generate actual sales; no viable proof is provided. One of the alternatives that Yates has thought about is to increase size of their audience by extending their coverage to alternative healing approaches. This alternative doesn’t seem so viable. 4. What value to the consumer does a general interest site contribute that a niche site can’t? Which is the more defensible business model?
A general interest site provides a wider variety of information. Audiences can navigate around the site and obtain general information; answers to common queries may be obtained from general interest sites. Niche sites attract just specific clients. It is limited to information that is suitable for particular clients. 5. What steps can MedNet take to address emerging competitive threats? In the industry where MedNet belongs, competition is growing stiff. MedNet has to devise ways and means on how it can address such competitive threats.
MedNet can address emerging competitive threats with three possible options; first, they can come up with a more aggressive approach in providing medical information. MedNet will employ doctors and take a more diagnostic, prescriptive position toward site visitors – treating them almost as patients. They could obtain revenue by imposing charges for the content making them less dependent on advertising revenues. The second option is to include alternative health information to the company’s site. Increasing the scope of possible viewers will increase the number of click-throughs which in turn increases revenues.
The third option will be to evolve into a developer and manager of employer websites. This option is quite good because MedNet is known for their trustworthiness and integrity. They can tie up contracts with other companies. These Companies can post advertisements or create linkages with MedNet for a fee. Creating affiliations with other companies do not only generate revenue but also increase the companies’ demographics. The more companies that it is associated with, the greater the possibility of the company being widely marketed and patronized