Question

Decision Point: Naperville Expansion Media Plan

After you recommend expanding to Naperville, you and Caffè Gustoso's owners start discussing your plans for marketing the new location. The owners first want to know what type of media you plan on primarily using for your campaign: traditional media such as television, print, radio, and direct mail or online media such as websites, email, online advertising, and social media? The owners see pros and cons with both types of media and need your help to decide -- keeping in mind Caffè Gustoso's goals and financial constraints.

A) Traditional media: television, radio, print, direct mail

B) Online media: website, email, online advertising, social media

Answer 1

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Online media: website, email, online advertising, social media

Decision Point: Choosing Which Type of Website to Use

Up until this point, the owners have felt that creating a website was an unnecessary expense because you can't sell lattes online. However, you know that the first step in online marketing is often the creation of a website, and you feel that Caffè Gustoso would benefit from an online presence. As a first step, you need to decide what type of website to create: a marketing website designed to engage consumers and promote a marketing outcome or a branded community website designed to engage consumers and create a customer-brand community.

Marketing website: Design CaffeGustoso.com to focus on providing information about its products and new locations to promote its offline sales.

Decision Point: Choosing the Type of Online Advertising

With a plan for Caffè Gustoso's website in place, you turn your attention to online advertising. Although the choices seem endless, Caffè Gustoso's small budget requires that you limit your spending as much as possible. You narrow your list down to your top three online advertising choices: search advertising, online display (banner) ads, and website sponsorship.

Which form of online advertising would be most useful for driving traffic to Caffè Gustoso's new locations?

Search advertising

Decision Point: Search Marketing

You sit down with Caffe Gustoso's owners to discuss your online advertising plans. You tell the owners that if they decide to incorporate search marketing into the plan, there are three primary payment options: pay per action, pay per click, and pay per view. Search engines favor pay per view because they earn income each time the ad is displayed to the consumer, whereas pay per click generates income for the search engine only when the ad is actually clicked on. Pay per action generates search engine income based on an action such as a purchase. Search engines often provide preferred placement to ads that generate the most income.

Which form of payment would you recommend for Caffè Gustoso's search marketing?

Pay per action

Mentoring Moment: Types of Online Sites

U.S. online retail sales are growing rapidly and are expected to reach $500 billion by 2018. The impact of the Internet is not limited to sales alone. Almost half of all U.S. sales were either completed online or directly influenced by online research.

To take advantage of the large number of Internet users, a number of companies have emerged that operate only online, such as e-tailers, search engines/portals, content sites, and online social media.

E-tailer: Drugstore.com sells a large variety of products to its online consumers from pet supplies to prescription drugs. Without a brick and mortar presence, all transactions occur online.

Search Engine or Portal: Baidu delivers websites, images, videos, and audio files to its users in the Chinese market based on key term matches.

Content Site: Coffeeandhealth.org, sponsored by the Institute for Scientific Information on Coffee, provides its users with the latest information and research on coffee, caffeine, and health.

Online Social Media: Flixter.com is a website where movie buffs share their opinions about all things film. Users rate films, discuss actors and directors, and share video clips.

Decision Point: Email Marketing

Email marketing, the online counterpart of direct mail marketing, can be a highly personalized, very targeted means of communication. With its very low cost and wide reach, you feel that email marketing must play a major role in Caffè Gustoso's online advertising campaign.

The owners want to send as many emails as possible to potential customers. However, before you send out the first email, you have to choose an email permission strategy.

Opt in

Decision Point: Video Marketing

Your next online advertising recommendation includes posting digital videos on branded websites and on social media sites. You ask the owners to create a series of entertaining, informative videos to deepen consumer engagement with coffee and promote the new Caffè Gustoso locations.

The owners are skeptical about this recommendation and want to know how you plan on measuring the success of the videos. Which metric do you recommend to measure the success of the video marketing campaign?

Purchase

Decision Point: Social Media

The owners and you meet up at the cafe to discuss the last element you recommend for Caffè Gustoso's online marketing plan: social media. They share their concerns with you.

"It seems that everyone is using social media these days, but it's unclear to us as to what the marketing goal of social media really is. We want to spend our limited budget on marketing that produces results, and we just don't understand what social media can do for us. What is your goal for the social media campaign?"

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