Internet Marketing Simulation Exercise
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INTERNET MARKETING SIMULATION EXERCISEInternet marketing is the process of promoting a business or brand and its products or services over the internet using tools that help drive traffic, leads and sales. Internet marketing provides a platform for a company to sell its goods and services, advertise over the internet and also communicate a message about itself. It also provides marketers and consumers with opportunities for much greater interaction and individualization. It is an effective way of identifying target markets and also discovering a marketing segments wants and needs. In this simulation exercise, the task is to channel investment in online advertising, such that would generate the maximum yield. The first task is to analyze the existing sales data and decide how to make the most of the online advertising budget. Campaign A generates $12000 and costs $1250; that is $9.60 per click. Campaign B generates $32000 and costs $9000 resulting in $3.56 per click. Campaign C generates revenue of $14000 and costs $1750 resulting in $8 per click. Of the three online ad campaigns identified, campaign A is generating the highest revenue per dollar spent. Taking a different look at the three campaigns the next task is to determine which campaign is generating the highest number of clicks per dollar spent. Campaign A generates 600 clicks resulting in 0.48 clicks per dollar, campaign B generates 3000 clicks resulting in 0.33 clicks per dollar and campaign C generates 2000 clicks resulting in 1.14 clicks per dollar. Of the three online ad campaigns identified, campaign C is generating the highest number of clicks per dollar spent.
The next task is to determine the best argument for keeping an ad campaign on DangerField Weekly, an influential business magazine, which is not generating any direct sales for Swazzi. Of the three options provided the most logical reason why the company might want to keep the ad is option 2, which is for prestige and brand awareness. So though the ad is not directly generating any sales, prestige and brand awareness would be the best reason for keeping a low-performing ad in the business magazine. Options 1 and 3 do not necessarily provide a good reason to keep the ad. A recent ad buy at Antler Pacific, a popular website for outdoor adventurers, has been producing strong results during the past three months. The next task is to determine a good reason this ad campaign should be discontinued despite its recent success. Option 2 is the CEOs personal preference and has nothing to do with the company as a whole neither does it provide a good reason to stop the ad, option 3 does not provide an appropriate reason to end a campaign that has been doing well. Option 1 is the best answer choice because the profitable sales could be as a result of the websites seasonal peak season of activity and the current success might not necessarily continueThe next task is to choose a new marketing strategy and I chose to create a website where a community of consumers can share fashion tips. In choosing the purpose of the site, creating a community-based website where people can share fashion tips as well as participate in interactive features, with the idea that Swazzi clothing can be customized and personalized appears to be the best option. Although Option 2 will benefit Swazzi by association with the community, it would not promote brand loyalty nor generate more customers for the company. Option 3 will not allow users to personalize the website and hence would not be the best idea for the company to go with.