Mednet Case

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Over the past four years MedNet.com has enjoyed significant advertising revenue from Windham Pharmaceuticals. However, as the competition from health websites for both visitors and advertisers has increased, Windham is debating whether to redirect its limited advertising budget elsewhere. Heather Yates of MedNet.com successfully diverted Windham from moving its advertising dollars to the search engine Marvel, but now she is faced with the problem of potentially losing Windham's business to Cholesterol.com. In Yates' argument to Windham regarding its consideration to switch to Marvel, she was able to illustrate some of MedNet.com’s true strengths; integrity, trustworthiness, experience and strong customer retention. She expressed MedNet.com's ability to allow advertisers to easily connect with people in need of medical information, which presents firms like Windham the opportunity to advertise to a targeted audience. The problem her firm now faces stems from the fact that the argument she built against Marvel actually strengthens Windham's case to switch its advertising dollars to Cholesterol.com, an even stronger competitor. Cholesterol.com is a targeted and concentrated website that has the competitive advantage of being the most relevant source for information on the internet regarding cholesterol problems. Yates understands Windham's ultimate communication objective is to provide awareness and knowledge of its product in a clear and enticing manner which ultimately leads to higher revenues. Though Windham understands the importance of brand recognition, the company is mainly focused on increasing sales, and this should be MedNet.com's focus for retaining Windham. Individuals visiting the MedNet.com website are mostly “in-crisis” customers who are highly engaged in the content of Mednet.com. It is because of this that Yates can prove to Windham MedNet.com’s core traffic of customers is more attractive due to the fact these customers are more...
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