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Writing Assignment 6.1:

Chapter 12: Mini-Case Where Should We Place Our Ad?

Galtsetseg Bold

Isabela Cristina de Souza Amorim

Poojan Patel

Sarah Osama Arafa Gaber

Stela Leka

TsungTse Li

University of the Potomac

BUS[Link]VA Marketing Management

Prof. Dina Rady

April 16, 2023

Contents

Introduction 3

Mini-Case Where Should We Place Our Ad? 4

Case Discussion Questions 5

Conclusion 9

References 10
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Writing Assignment 6.1:

Chapter 12: Mini-Case Where Should We Place Our Ad?

In this mini-case a software company has developed a new tax package and is

considering the best way to reach potential customers. One manager suggests using direct mail to

send out brochures and DVDs to potential customers, while another manager suggests using an

email campaign with embedded links to online demos on the company's website. The boss is

indifferent, but concerned about costs, so a third manager compiles cost estimates for each option

from various media providers. The analysis includes cost per thousand, click-thru rates, rate of

purchase, yield, software price, and net income, and provides valuable information for the

company to make an informed decision about the best marketing channel to use for their new

product.
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Mini-Case Where Should We Place Our Ad?

A software company that is fairly well regarded for two large product lines has TurboTax

in its sights. They’ve developed a tax package that they think their current customers will like,

and they think this software will give them a chance to bring new customers to their other

products.

The company has developed an informative, yet succinct, and even somewhat humorous

ad. One of the top managers is saying the company ought to ship out the ad in brochure form,

along with a DVD with a demo file on it, as a form of direct mail. A new manager is thinking

that sounds retro but doesn’t say that; instead, the manager argues that because the product is

high-tech, they should reach out to customers through an email campaign. The email content

would contain several embedded links to online demos on the website.

The boss is indifferent (doesn’t know much about marketing, history, biology, or what a

slide rule is for), but they care about costs. So a third manager called up some media providers

and compiled the following price estimates.

Iacobucci, Dawn. [Link] Marketing Communications and Media Choices (6th ed, pp 232). Cengage Learning.

[Link]
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Case Discussion Questions

1. What do we learn from the cost assessment manager?

We found that the cost of reaching new customers through direct mail campaigns is

higher than reaching existing customers through email campaigns. Making advertisements is

communication between companies, businesses and their customers, where potential and existing

buyers want to receive specific messages in the form of text, images, videos, banners, etc via

many channels.

Using the data provided, the cost estimator found that the direct mail method was more

costly than the email method for both new and existing customers, whereas for new customers,

the electronic. The unit price for selling by mail is higher. Therefore, a cost-effective strategy is

to target new customers via email and to email old customers.

2. Which of the first two managers’ directions (direct mail or email) would you support?

There are positive aspects to both managers' strategies.

Direct mail campaigns can be targeted at specific segments of customers, making them

more effective. It tends to be more expensive, but makes it possible to customize the content with

the client's name, for example, and grab their attention, generating engagement as a result. By

segmenting customers based on their location, demographics, past purchases, and other factors,

businesses create messages that resonate with the customer. This increases the likelihood of a

successful campaign.
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An email marketing campaign, on the other hand, is less costly, reaches a broader

audience, is customizable as well, and makes it easier for the company to analyze the customer

journey from the email to the website until the final purchase is completed. An effective email

marketing campaign should have an attractive subject line, engaging content, and a clear

call-to-action. People receive many emails every day, so creating high-performing email is vital.

If your email is not attractive, it may go unnoticed.

As cost is our determining factor in this case, we would recommend proceeding with an

email marketing campaign based on the attributes listed above. This option would allow the

company to reach a wider audience with the message, while keeping the costs low. Furthermore,

it makes it easier to track results and measure the success of our campaign.

3. What is the strategy? If the company wants to emphasize customer acquisition, what

would you recommend? If the company wants to emphasize customer retention, what

would you recommend?

The best strategy is Email (list in CRM system) for current customers and Email (list

rental) for new customers since they have higher net income compared to other strategies. If the

company wants to emphasize customer acquisition, I would recommend Email (list rental).

Email list rental is a commonly used marketing strategy among businesses. This is because it has

many benefits that can help businesses reach their target audience, increase their brand

awareness, and ultimately drive conversions. One of the main benefits of email list rental is the

ability to reach a larger and more targeted audience than businesses may be able to do on their

own. Additionally, renting an email list can also save businesses time and resources, as they do
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not have to invest in creating their own email list from scratch. In this case, the Email (list rental)

gives the company a net income of $2,500 compared to Direct Email (list rental) that gives a net

income of $500.

If the company wants to emphasize customer retention, I would recommend Email (list in

CRM system). Email marketing has become a proven method for businesses to connect with

their customers and generate new leads. By integrating email into a Customer Relationship

Management (CRM) system, companies can streamline their marketing efforts and easily

manage contact lists. The benefits of such a system include improved targeting and

personalization of email content, automated email campaigns, and the ability to track user

engagement and adjust strategies accordingly. With these advantages, it's no wonder that email in

CRM has become a go-to marketing strategy for many businesses. In this case, the Email (list in

CRM system) gives the company a net income of $4,750 compared to Direct mail (in CRM

system) that gives a net income of $3,250.

4. What else would you like to know for a more thorough assessment?

To make a more thorough assessment, there are several ways to get a more complete

analysis to make the more accurate decision. First, the company can get deep research into their

customer base and the target audience as well. The most important thing to know is their target

customers, is it individuals or business? Students or workers? Based on different target audiences

they can apply the different packages to the group to invest effectively. For example, if the target

customer is an individual and younger generations, the way to approach should be using via
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email instead of traditional ads. By analyzing their customer base and what their targets are, the

company can create the most effective way to market their product.

After knowing their target market and customer base, the company should develop a

marketing plan for 3-6 months regarding budget control and evaluation of each stage. At the

beginning of the product launch, it is the best time to let customers know and try your product,

which company should come up with an iconic event which can differentiate their products from

the market and also make a good impression to the customers at the first glance. After building

the customer base for the products, the company should start thinking to both maintain their user

experience and also attract new customers. At the end when the product becomes stable and

competitive in the market, the concentration of the company will be to optimize the user

experience and feedback to make it a long-term success.

In sum, the best way to make a decision of which way to approach the customers is to

know about target audience, customer behavior, and customer journey before spending any

money into it. The more companies understand their customers, the better their product will

penetrate into the market.

Conclusion

Most companies nowadays use data-driven decision-making, and eventually, align the

data with the strategy.

In this case study, we learned how to decide which strategy is the most suitable one and

analyze how the different variables can impact the assessment.

Initially, we estimated the impact driven by the cost of the product and the impact it will

have on the customer in order to drive decision-making to ultimately increase the revenue.

Cost assessment is a very important driver in the strategy. Yet another factor impacting

decision-making is based on customer reachability and retention.

The first one drives acquisition for the newly launched product, through the strategy. The

customer acquisition strategy defines the means needed to succeed to gain new customers by

approaching them and nurturing them until they become sales-ready and eventually customers.

This means the company should target them and find tools that help reach them online and

offline to promote the product and engage them in the customer journeys. Customer retention

will increase the ability to keep the customers over a period of time, maintaining the relationship

with current customers and encouraging them to be loyal to your business. Retained customers

often spend more and buy more often than new customers because they have and appreciate the

value of the product and brand.

This should all be covered and part of the company strategy, which itself is a continuous

process, a living mechanism that aligns the delivery of the long-term goal of a company with

decision-making.
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References

● Iacobucci, Dawn. [Link] Marketing Communications and Media Choices (6th ed,

pp 232). Cengage Learning.

[Link]

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