Marketing Plan 13 The decrease in traditional advertising also allows for an

Marketing plan 13 the decrease in traditional

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Marketing Plan 13 The decrease in traditional advertising also allows for an increase in digital advertising. The way people receive information has changed substantially over the last few decades. The increase in technology and increased internet capabilities has made the need for digital advertising the biggest change to the way companies’ market. The emergence of social media platforms like Facebook, Twitter, and Instagram have made it essential for companies to advertise on these platforms. Most of the modern consumer time is spent on one of these platforms or another like it on the internet. There has been a decrease in reading traditional print media and most news is read online. Media giants like Netflix, Hulu, and Amazon Prime has decreased TV watching, which also decreases the ability to reach consumers through traditional TV ads. This is requiring a shift in advertising and creating a new budget line for digital marketing. In previous years, none of the OTC companies had any of their budget going to this advertising method, but now they all are spending in this area. The digital market budget will continue to increase as the transition continues. The benefit of digital marketing is that its impact is more quantifiable than older methods, so the impact can be measured and adjusted more efficiently (Laberge, 2017). Allround’s digital marketing spending has already gone from $0 to $2.4 million in just 2 periods. The expectation is that the amount will continue to rise over time and eventually have and equal or larger budget than traditional methods. The OCM group currently uses the highly respected ad agency, Brewster, Maxwell, & Wheeler. They are known for their high-quality product and outcomes, but this comes at a cost of 15% commission. The idea was presented of possibly changing to a different ad agency, and there have been two offers received. The first is Sully & Rodgers who are known for a medium-quality product. The commission on their advertisements are lower than BMW’s at 10%. The other solicitation was made by Lester Loebol & Company who have a low-quality product, but a significantly lower commission at only 5%. The belief is that because the brand recognition for Allround is high, the downgrade in quality theoretically wouldn’t hurt the brand. It would allow for less expense toward advertising. OCM Group has decided that for now they will stay with BMW ad agency but reduce the overall budget for advertising. Digital marketing is the future, but there is still a need for traditional forms of advertising. The introduction of a new product will need to be heavily marketed to drive results and the belief is that the high-quality of advertising will deliver a successful launch. Social Media and Technology Social Media was discussed briefly in the advertising section, but it is crucial that today’s companies understand and utilize social media. A team will be created within the marketing group that will focus solely on creating and maintaining social media pages for the Allround brand.

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