Online Marketing Vs Business Strategies
by Steven J., antRoar Marketing
I May 2006 one of our clients requested that we supply an intensive Business Strategy outlining our objectives and methods for increasing their brand and customer signups. We did all the research combining "live" interviews with their customers for a better detailed assessment of their requirements.
We dutifully analysed all the data collected, spent a couple of days creating the presentation and arranged a meeting with the CEO and upper management to digest our Business Strategy Report. During the meeting, a few of the upper management people were somewhat confused when we showed that a real benefit would be had if our client deployed a PPC (Pay Per Click) campaign to induce new customers to their services.
We explained that the cost per click for the Google, Yahoo & MSN campaign measured a few cents (0.75) per click. This was met with absolute distain and some laughter for added measure. We asked what the problem was and to our surprise, were told that our clients intent was to run a $1 Million advertising campaign through the mass media, including T.V., radio and news print.
This was for us an eye opener to say the least. Our clients business ran online for the express purpose to sign up new and interested people online, for further online catalogues to be sent to them. From all our research we explained that form their current database of customers 98% of them had used the internet to find our clients business, so it stood to reason that deploying effective online marketing strategies would capture more potential customers as opposed to a mass media campaign. Our client was not listening.
They didn't want to discuss or entertain our online marketing strategy. In fact, one week after our meeting they pulled the plug with us and decide to go it alone with their own online strategy and campaigns. Ok by us. One thing we deem essential is an open and constructive joint participation with management and staff to focus on using the best possible marketing strategy for the best possible outcomes, based on hard facts and analysis. Of course we are not alone in this concept.
Fast forward to August 2007.
We received a call for our old client wanting to discuss the possibility of engaging us as their preferred online marketing agent. We declined of course as our past experience with them was still fresh in our minds, we do have very good long memories and their new manager understood. He understood so well that he explained that their $1 million mass media campaign turned out to be $2.25 million and the results were, well, business breaking, as in, they went broke.
He further explained that their business strategy at that time was conceived and researched by the CEO's friends in business at the footy club association. He suggested that perhaps, in a knowing way, the money would of been better spent following our advice in the first place, to which we agreed whole heartedly.
The upshot is that although an online marketing business can only suggest or recommend strategies based on research and analysis of both their clients business and actual statistics of customer movement online, the actual deployment "ok" could be left to someone that has no interest or internet savvy as it were. In these cases it's best for the online marketing business to exclude itself from any involvement with any business that structures itself in an ego based Highmark content on flexing mussel rather than brains.
So the question is, Does online marketing complement business strategies or does online marketing strictly tend to only online businesses that know the industry and medium?
I May 2006 one of our clients requested that we supply an intensive Business Strategy outlining our objectives and methods for increasing their brand and customer signups. We did all the research combining "live" interviews with their customers for a better detailed assessment of their requirements.
We dutifully analysed all the data collected, spent a couple of days creating the presentation and arranged a meeting with the CEO and upper management to digest our Business Strategy Report. During the meeting, a few of the upper management people were somewhat confused when we showed that a real benefit would be had if our client deployed a PPC (Pay Per Click) campaign to induce new customers to their services.
We explained that the cost per click for the Google, Yahoo & MSN campaign measured a few cents (0.75) per click. This was met with absolute distain and some laughter for added measure. We asked what the problem was and to our surprise, were told that our clients intent was to run a $1 Million advertising campaign through the mass media, including T.V., radio and news print.
This was for us an eye opener to say the least. Our clients business ran online for the express purpose to sign up new and interested people online, for further online catalogues to be sent to them. From all our research we explained that form their current database of customers 98% of them had used the internet to find our clients business, so it stood to reason that deploying effective online marketing strategies would capture more potential customers as opposed to a mass media campaign. Our client was not listening.
They didn't want to discuss or entertain our online marketing strategy. In fact, one week after our meeting they pulled the plug with us and decide to go it alone with their own online strategy and campaigns. Ok by us. One thing we deem essential is an open and constructive joint participation with management and staff to focus on using the best possible marketing strategy for the best possible outcomes, based on hard facts and analysis. Of course we are not alone in this concept.
Fast forward to August 2007.
We received a call for our old client wanting to discuss the possibility of engaging us as their preferred online marketing agent. We declined of course as our past experience with them was still fresh in our minds, we do have very good long memories and their new manager understood. He understood so well that he explained that their $1 million mass media campaign turned out to be $2.25 million and the results were, well, business breaking, as in, they went broke.
He further explained that their business strategy at that time was conceived and researched by the CEO's friends in business at the footy club association. He suggested that perhaps, in a knowing way, the money would of been better spent following our advice in the first place, to which we agreed whole heartedly.
The upshot is that although an online marketing business can only suggest or recommend strategies based on research and analysis of both their clients business and actual statistics of customer movement online, the actual deployment "ok" could be left to someone that has no interest or internet savvy as it were. In these cases it's best for the online marketing business to exclude itself from any involvement with any business that structures itself in an ego based Highmark content on flexing mussel rather than brains.
So the question is, Does online marketing complement business strategies or does online marketing strictly tend to only online businesses that know the industry and medium?
Labels: business strategies, online marketing, research
posted by steven j. ram at
14:46
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