If people spent their energies on building a better and a more competitive and strategic business model (less “me-too”) they would be recognized more for their business accomplishments.
If you focused more on how to derail your competition versus utilizing your efforts to build your business, you will be known more for spending your energies on your competition, versus building a growing business. By the way, your competition already knows who you are, and they are the one’s taking away your market share because you are not focused the market, but wasting your time focused on them!
butteronabiscuit said: No question, just wanted to thank you for posting the blog I wrote for Phi Tau. Really flattering, and it means a lot. Take care - CGW
No thank YOU! It was a beautiful piece that needed to be shared!
I am extremely passionate about making an impact and creating value in any work I do. I hope to earn my degree and use marketing as a means to make a difference in the professional space, the community, and hopefully the world.
"Being the richest man in the cemetery doesn’t matter to me…Going to bed at night saying we’ve done something wonderful…that’s what matters to me." - Steve Jobs
April 1, 2011
To Whom It May Concern,
I am here to tell you about an outstanding candidate for the inquired position at your company that has all the qualities to win and earn the honor. Nicole West is a very motivated and dedicated young woman who is able to think freely and independently, as well as work well and contribute to a group. She is always pushing herself to succeed and this was very apparent while Nicole was a member of my Corporate Development Committee for the American Marketing Association. She was very timely and professional while still providing insight to the group of 14. She had many creative ideas for marketing techniques for the companies that we were working for.
Continuing to better herself, you will never see Nicole quit. Her ability to aide the group speaks volumes of her capability. This is also all being completed while she earns good grades, provides leadership in multiple organizations, and pay her way through college. The ability to focus is one of her strong traits. It was a pleasure working with her and I hope to do so in the future. Feel free to contact me with any questions about her.
American Marketing Association
Vice President of Corporate Development
Thank you for the reference, Nolan! It is greatly appreciated!
ANALYSIS AND RECOMMENDATION FOR IMPLEMENTING THE MOST EFFECTIVE TYPE OF ONLINE ADVERTISING AT WEST COMPANY
This topic of online advertising is becoming an increasing concern and marketing foundation for modern businesses today. Along with the rapid increase of online users globally, the Internet has become the fastest growing and most utilized advertising medium. “Online advertising accounts for almost 9 percent of all advertising in the United States” (Evans, 2009, p. 1). Online advertising is a form of promotion that uses the Internet to deliver marketing messages to attract customers. The two primary uses for online advertising is brand building and to drive sales. The major benefit of online advertising is the immediate publishing of information and content that is not limited by geography or time. There are multiple types of online advertising; the most appropriate type to implement varies from company to company.
The expansion of internet-based advertising is transforming the advertising business by providing more efficient methods of matching advertisers and consumers. Online communications helps businesses learn considerably more about the online consumer compared to the traditional offline media. Technologies reveal the online user’s location, visited web pages, and personal information from social networking sites. With this knowledge, businesses can use online advertising to adequately and specifically market to their targeted consumer. Additionally, the Internet is a reputable medium for advertising because modern technologies help directly and specifically calculate how effective it is. Businesses have knowledge of the number of visitors, number of paying customers, and how often specific advertisements are clicked on by users. Because of this modern advancement, companies can easily reduce unnecessary advertisements, increase more effective ones, and thus reduce unnecessary marketing costs.
The type of online advertising that a business should implement into its marketing initiatives corresponds to the company’s targeted audience and objective. Businesses should carefully select a type of online advertising that would attract the audience’s attention during an age of high competition and advanced technology. This report will focus on the effectiveness of email marketing, affiliate marketing, and banner advertising.
This report is especially beneficial to companies such as West Company; they should take advantage of an ever growing medium that attracts such a large demographic. Trend-setting companies such as West Company should have online advertising as a vital priority in their marketing initiatives, especially in a modern Internet-dependent world with high consumerism. Management should be aware of the effects online advertising has on their company as well as taking action to implement the most effective type to its marketing initiatives.
Purpose of the Report
The purpose of this report is to (1) analyze the advantages, disadvantages, and effects of various types of online advertising on companies such as West Company, as well as (2) provide recommendations to help management identify the most effective type. “Online advertising offers unique advantages, but what’s missing is an understanding of which executions will have a desired impact” (Plummer, 2007, p.2). By providing this information, decision makers will have better knowledge of how the following types of online advertising would affect their business, and thus enhance their marketing initiatives.
RESULTS OF STUDY
Email marketing is advertising a commercial message directly to an audience using electronic mail. Businesses opt into sending email messages with the purpose to enhance their relationship with customers and to encourage customer loyalty and repeat business. Businesses also hope to acquire new customers or convince current customers to buy through email marketing.
The advantages of email marketing would help effectively target consumers. “Direct e-mail marketing has response rates of 5 percent to 15 percent, exceeding those of online banner ads” (McCabe, 2001, p. 1). Very successful businesses have even reached 40 percent response rates by utilizing opt-in email marketing (Raad). This type of advertising enables companies to attract an enormous number of Internet users with very little cost.
The disadvantages of email marketing could possibly be an obstacle to a business’s marketing goals. This type of online advertising has response rates that are falling because of increased suspicion of spam (McCabe). As the “Internet grows rapidly, consumers are more and more concerned about security and privacy issues” (Raad, 2010, p. 2). Figure 1 shows that 63 percent of email users have never checked their spam box before. The problem with email marketing is the presence of spam false estimations. These estimations include being classified as spam because the recipient has not opted in, suspicious subject or content, and if the company sends many emails within the same day. Figure 2 shows illustrates that 59 percent of email users do not even know some emails considered spam are actually not. Businesses should to use techniques such as opt-in email marketing over spam because spam is sent to anyone and does not target an audience.
Affiliate marketing is advertising in which a business rewards an affiliate for each visitor or customer brought about by the affiliate’s own efforts. It is a joint partnership between the advertiser and the affiliate that runs on a commission basis. The affiliate or third party is financially motivated to use various online marketing outlets to help further their customer outreach and thus increase their reward.
The advantages of affiliate marketing would help effectively target consumers. A benefit of affiliate marketing is that a business only pays the affiliate when specific measurable results, which may include website visitation, sale, or sign up. The responsibility of attracting customers is in the hands of the affiliates, thus downsizing company efforts, time, and bottom line. This type of online advertising reduces costs because only successful advertising is paid for. Additionally, using this type of advertising effectively targets customers that were previously viewing the affiliate webpage. Therefore, a company can adequately target a specific audience by choosing a corresponding affiliate webpage.
The disadvantages of affiliate marketing could possibly be an obstacle to a business’s marketing goals. There is a possibility that a business may experience high commission costs. Another disadvantage of affiliate advertising is “the affiliates may engage in false and misleading advertising in order to get sales commissions. Unscrupulous affiliates may make claims and promises regarding the product and services, which are completely wrong or extremely exaggerated” (“Advantages and Disadvantages of Affiliate Marketing”). The company could receive complaints and lose potential customers.
Banner advertising is online advertising that embeds an advertisement into a webpage. Much like traditional forms of media such as newspapers, businesses pay a webpage’s owner to display a banner advertisement to redirect, attract, and inform the customer of the business’s product.
The advantages of banner advertising would help effectively target consumers. “Costs of banner ads are falling, making them increasingly attractive as compared to traditional print advertisements” (McCabe, 2001, p. 3). These decreasing costs are resulting because of the overwhelming and continuous increase of Internet space. Banner advertisements “have an impact on tradition memory-based measure of effectiveness” (Dreze, 2003, p.1). Banner ads create brand recognition, a vital priority to marketing.
The disadvantages of banner marketing could possibly be an obstacle to a business’s marketing goals. Costs are greatly increased by using banner advertising. The owner of the site on which the advertisement appears gets paid simply for showing the advertisements regardless of whether they generate visitors or customers for the business. Another disadvantage of banner advertisements are that many Internet users regard them as highly annoying because they distract from a web page’s actual content or waste bandwidth. Unfortunately, many web browsers have programs that block banners.
Figure 3, shown on the following page, represents a survey given to 200 potential customers who are avid Internet users and a likely targeted audience of West Company. The survey recipients are between the ages 17 and 25, a targeted age demographic of West Company. Secondary research from Ha states, “Consumers have different attitudes to different online ad formats” (Ha, 2008, p.34). Using my primary research, these potential customers would be more inclined to click on affiliate advertising web pages.
Based on the research done on various types online marketing and the effects they have on a company, the following conclusions have been made:
1. Email marketing is advertising a commercial message directly to an audience using electronic mail.
2. Email marketing has a higher response rate than banner advertisements, usually between 5 to 15 percent and sometimes as much as 40 percent.
3. Email marketing effectiveness and response rates are falling because of increased suspicion of spam. Instead, businesses should to use techniques such as opt-in email marketing over spam because spam is sent to anyone and does not target an audience.
4. Affiliate marketing is advertising in which a business rewards an affiliate for each visitor or customer brought about by the affiliate’s own efforts.
5. Affiliate advertising decreases a business’s bottom line by giving the responsibility of advertising to the affiliate.
6. Affiliate advertising adequately targets a specific audience by choosing a corresponding affiliate webpage.
7. Affiliate advertising can upset and lose customers if the affiliate uses false and misleading advertising to help raise their commission.
8. Banner advertising is online advertising that embeds an advertisement into a webpage. A business pays a web page’s owner to display their banner advertisement to attract, redirect, and inform potential customers.
9. Banner advertising costs are falling because of the overwhelming rise of space on the Internet.
10. Banner advertising efforts can be done poorly, leading to unnecessary advertising on unfit and unrelated web pages and thus unnecessary costs.
Based on the research and conclusions, the following recommendations have been made to help West Company identify the advantages and disadvantages of various online marketing strategies, as well as provide suggestions to help management implement the most effective type of online advertising:
1. No matter the disadvantages, online advertising still remains as one of the best ways to market to the current or potential customer.
2. West Company should implement a mix of online advertising tools to strengthen their marketing initiatives. A well researched mix of modern advertising technologies would better help the company’s goals compared to only implementing one.
3. If West Company were to implement only one type of online advertising to its marketing initiatives, I would recommend undertaking affiliate advertising. Because of West Company’s specific audience and deliberately engaging in an underrated and trendy vibe, the most effective type to sustain this goal is affiliate advertising. West Company can selectively choose what web sites and affiliates to use, thus targeting a specific audience.
4. With the company’s unique essence, blogs, similar sites, complementary and corresponding sites, and social networking platforms would be the most favorable affiliates to pursue.
“Advantages and Disadvantages of Affiliate Marketing”. Street Directory. Streetdirectory, 2012. Web. 10 April 2012.
Dreze, Xavier. “Internet Advertising: Is Anybody Watching?”. (2003): 1-33. Print.
Evans, David S. “The Online Advertising Industry: Economics, Evolution, and Privacy”. Journal of Economic Perspectives (2009): 1-41. Print.
Ha, Louisa. “Online Advertising Research in Advertising Journals: A Review”. Journal of
Current Issues and Research in Advertising (2008): 31-48. Print.
McCabe, B. “Online Advertising: Costs vs. Effectiveness”. (2001): 1-3. Print.
Plummer, Joseph Thorton. The Online Advertising Playbook: Proven Strategies and Tested Tactics From The Advertising Research Foundation. New Jersey: John Wiley & Sons, Inc, 2007. Print.
Raad, Mostafa. “Impact of Spam Advertisement Through E-mail: A Study to Assess the Influence of the Anti-Spam on the E-mail Marketing”. African Journal of Business Management 4.11 (2010): 2362-2367. Print.
Fig. 1. Raad, Mostafa. “The ratio of the people who check the spam box”. African Journal of Business Management 4.11 (2010): 2366. Print.
Fig. 2. Raad, Mostafa. “The ratio of the people who do not know about the false positive estimations in the spam”. African Journal of Business Management 4.11 (2010): 2366. Print.
Wang, Chingning. “Understanding Consumers Attitude Toward Advertising”. Eighth Americas Conference on Information Systems (2002): 1143-1148. Print.
For full version of the report, please contact me via message, email firstname.lastname@example.org, etc.