Professional Documents
Culture Documents
Galtsetseg Bold
Poojan Patel
Stela Leka
TsungTse Li
Contents
Introduction 3
Conclusion 9
References 10
3
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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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
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
Iacobucci, Dawn. 12.Integrated Marketing Communications and Media Choices (6th ed, pp 232). Cengage Learning.
https://ebooks.cenreader.com/#!/reader/76cc2f86-5bc5-4166-aee1-4c6fcfcf5e62/page/b3310277deeb8cb7b5599f80624c4d49
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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
2. Which of the first two managers’ directions (direct mail or email) would you support?
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.
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
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
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
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
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
Conclusion
Most companies nowadays use data-driven decision-making, and eventually, align the
In this case study, we learned how to decide which strategy is the most suitable one and
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
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
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.
10
References
● Iacobucci, Dawn. 12.Integrated Marketing Communications and Media Choices (6th ed,
https://ebooks.cenreader.com/#!/reader/76cc2f86-5bc5-4166-aee1-4c6fcfcf5e62/page/b33
10277deeb8cb7b5599f80624c4d49