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Complex Campaigns Can Benefit From Project Management

04 Wednesday Jan 2012

Posted by Gregory Dean in Marketing Strategy, Marketing Technologies

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Campaign Management, Greg Dean, Gregory Dean, Life Cycle, Marketing Strategy, Marketography, Project Management

Complex cross-media marketing campaigns require a well-organized symphony of coordination and scheduling. Formal project management techniques can greatly increase the timeliness, efficiency, and profitability of a direct marketing campaign. With so many moving parts, it makes sense to leverage traditional project management techniques to command control and guarantee speed-to-market.

In nearly every aspect of our lives, we organize tasks into simple to-do lists. A typical day can be filled with chores and activities identified by an objective and a due date. A formal project—no matter how small—shares common characteristics with larger and more complex projects. In each case, the organization and structure of project management offers the framework necessary for these projects to succeed—on time and within budget. Project management can be scaled to match the scope and complexity of a project. The overall methodology and discipline, as defined in this paper, has become the main ingredients in the recipe for success.

What is Project Management?

A project can be defined as a series of interrelated tasks with a clearly identified timeline and predetermined costs. Larson & Gray (2011) describe a project as a temporary endeavor with an established objective (pg. 5). Moreover, a project has a start date and an end date, predetermined costs, and involves doing something never before realized. The predetermined timeline encompasses a project life cycle. Overseeing the project life cycle is the foundation for project management.

Project management is the coordination and day-to-day direction throughout the stages of a project life cycle. Specifically, project management is the planning, organizing, and directing of tasks and resources for a relatively short-term objective (Hanford, 2010). With an ever-changing, competitive, and fast-paced environment, it is imperative for businesses and organizations to leverage project management for effectively monitoring initiatives and ensuring success.

Speed to market is sometimes the competitive edge that a company needs to make the leap from market follower to market leader.

Project management offers an organization the ability to have higher success rates with lower uncertainty and costs associated with a project (Manu, 2007). In short, project management means an overall product life cycle can be reduced resulting a competitive advantage for an organization. Project management is an important tool for businesses to translate strategies and objectives into realities.

The Project Life Cycle

 The individual phases of a project are organized into a project life cycle. The project life cycle is comprised of several stages. The number of stages varies based on the type of project or specific industry (Larson & Gray, 2011, pg. 7). The basic project life cycle consists of four stages: defining stage, planning stage, executing stage, and closing stage.  Project life cycle management is a granular approach for controlling the logical sequence of activities as defined by a project scope.

Undefined requirements, miscommunication, and lack of sponsorship all contribute to failed projects. A structured project life cycle approach supports a clearly defined scope and objectives while offering the best chance for achieving the project goals. A large percentage of projects fail to deliver because organizations often downplay the importance of project life cycle management. Regardless of the methodology, organizing a project into stages and identifying a project plan derived from a comprehensive project life cycle guarantees success.

During the defining or planning stage, a project undergoes an initiation process. Part of the initiation process includes the challenging task of defining the overall business opportunity (Westland, 2007, pgs. 3-4). In some cases—as it relates to innovative technology-centric projects—the business opportunity can be subjective. The trailblazing Apple iPhone project in 2007 redefined the traditional project life cycle methodology to include a significant research and development initiative to help prove the business opportunity. Without the ability to draw upon previous experience, and particularly market acceptance, Apple’s definition of the business opportunity surrounding the iPhone was assumed (Müller, 2010).

An innovative product, such as the Apple iPhone, requires a unified approach to project management. One slight misstep in any of the project life cycle stages could be the difference between a history-making product launch and an overall corporate embarrassment. Regardless of the chosen methodology, every project life cycle includes a planning phase as the first stage of the project. As proven time and time again by companies such as Apple—planning, research, and critical thinking in the early stages of a project makes for a more effective execution stage. Apple’s 10-to-3-to-1 approach to product research results in a single product design from which a formal project life cycle is developed (Walters, 2008). Critical thinking and research is mandatory in the development of a project life cycle. The planning stage of a project is the foundation for all subsequent stages. Schedules, budgets, and resources are determined at this stage of the project life cycle. A miscalculated budget or misaligned resources can be fatal to a project and devastating to a company and its reputation.

Project Organization

Once designed, planned, and accepted by management, a project must be organized. Three common project management structures used to implement projects are: functional organization, dedicated project teams, and matrix structure (Larson & Gray, 2011, pg. 65). Projects do not fit within the normal framework of an organization. A project by definition has a predetermined time to live, and therefore in conflict with an organization’s day-to-day management of ongoing activities.

The structure and organization required for effective project management is alien to many traditional companies. Regardless, the organization must adopt a structure that will have the least impact on corporate culture. Integrating a project into the existing management framework of an organization provides a high level of flexibility. One notable downside to organizing projects within the functional organization is the pace at which the project moves. Projects take longer to complete when communication follows normal management channels.

In contrast, organizing projects as dedicated teams eliminates the extra layers of management and streamlines communication. The results are faster turn-around times and a unified project team. The cost of a dedicated team, however, sometimes outweighs the benefits. A matrix arrangement leverages the advantages of functional organization and dedicated teams approaches to create a hybrid structure. The three different matrix forms are: weak matrix, balanced matrix, and strong matrix (Larson & Gray, 2011, pgs. 73-74).

Organizational culture is a company’s fingerprint in the industry. Organizational culture is the defining characteristic of a company—it cascades across all projects. An organization’s culture is many times a reflection of its leaders. Leadership is crucial in an organization. A project manager is in a position of leadership. There is a distinct difference between project management and project leadership. As the leader of a project, a project manager can exercise leadership by inspiring and motivating the teams, and by understanding the bigger picture.

Sponsorship is vital in a project. A project sponsor is one of many stakeholders with an active interest in a project. The project sponsor is the liaison between the project manager and the executives. In certain cases when it becomes necessary to acquire more resources or change direction, a project sponsor would most likely be responsible for final approval. Successful projects share a common trait. They all have a strong and common bond between the project manager and project sponsor. Open communication between these two individuals is essential.

Project Team

The five-stage team development model provides the framework for project managers to build an effective team. The five stages defined by Larson & Gray (2011) include: forming, storming, norming, performing, and adjourning (pgs. 377-378). The goal of a project manager during the team-building phase of a project is to develop a cohesive group of individuals with a positive synergy. In an idea situation, a project manager would draw upon a pool of unlimited resources to choose candidates with strong compatibility and cohesion. In lieu of a perfect world, project managers yield to the effectiveness of the five-stage model to develop his or her team.

Before the project team begins the five-stage development process, a recruiting and selection process must take place. Choosing the most capable individuals for a project team ensures success (Kristoff, 2008). A project manager must understand the specific needs of the project before selecting individuals for the project team. Additionally, a project manager should consider the schedule and be sensitive to the pace at which each team member performs. Some team members, while a perfect match for a particular task, might not work comfortably at a pace required by the project timeline.

Work Packages

Objectives, deliverables, and milestones are the first three elements of a project scope. Defining the project objective is the single most important step in developing a project scope.

A well-defined project scope is used to establish a priority matrix. The priority matrix is an effective tool for establishing project priorities. Once the priorities are determined, the project manager can create a work breakdown structure (WBS). The work breakdown structure is a detailed outline of the project. Creating a hierarchical framework of the elements within a project provides a project manager the ability to manage specific costs and efforts associated with each deliverable or subdeliverable.

Project deliverables are known as work packages. Work packages are the most granular level of a work breakdown structure. The project is at the highest level, followed by the deliverables. Each deliverable can have one or more subdeliverables. The work packages of a project can be managed, tracked, and budgeted independently. This allows a project to easily be distributed across virtual teams if necessary. A project manager needs to be aware, however, of work packages that are on the project’s critical path. Any time delays or constraints to tasks on the critical path will affect the overall timeline.

Project Management Software

There are several software packages to help organize and manage projects. Microsoft Project, for example, offers all of the tools and reporting that a project manager would need to handle even the most complex projects. In situations where several projects are running concurrently as part of an overall program, a project manager can manage the project portfolio. Project management software makes if possible to create a work breakdown structure, estimate and manage schedules and costs, and monitor activities.

Managing risks is an important aspect of project management. Project management software provides mechanisms for assessing risks. Change control is often an area for exposing project scope creep. The change control management features in Microsoft Project help track changes and report the cost and time impact a change will have on the overall project. Large integrated projects will benefit from the use of project management software. The reporting capabilities alone will justify the costs.

Project management structure, methodology, and techniques can be applied to any type of project—no matter the size. Every project shares the common characteristics of a beginning and end date, defined set of deliverables, and an overall objective. Project management brings organization and framework to the project to help ensure success. While every aspect of traditional project management may not apply to all projects, the basic principles remain effective and relevant for every situation. Marketers are not exempt from the challenges of budgets, timelines, and competing priorities. Apply project management techniques to gain a competitive edge.

 

References

Hanford, M. (2010). Program management: different from project management. Retrieved March 5, 2011, from http://www.ibm.com/developerworks/rational/library/4751.html

Kristoff, S. (2008). Building a successful project team. Retrieved March 7, 2001, from http://www.suite101.com/content/building-a-successful-team-a41946

Larson, E., & Gray, C. (2011). Project management: the managerial process. New York: McGraw-Hill/Irwin

Manu, K. (2007). The importance of project management in organizations. Retrieved March 7, 2011, from http://www.articlesbase.com/leadership-articles/the-importance-of-project-management-in-organizations-246928.html

Müller, C. (2010). Apple’s approach towards innovation and creativity. Munich: GRIN Publishing GmbH

Walters, H. (2008). Apple’s design process. Retrieved March 6, 2011, from http://www.businessweek.com/the_thread/techbeat/archives/2008/03/apples_design_process.html

Westland, J. (2007). The project management life cycle. Philadelphia: Kogan Page

2011 in review

31 Saturday Dec 2011

Posted by Gregory Dean in Marketing Technologies

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The WordPress.com stats helper monkeys prepared a 2011 annual report for this blog.

Here’s an excerpt:

The concert hall at the Syndey Opera House holds 2,700 people. This blog was viewed about 20,000 times in 2011. If it were a concert at Sydney Opera House, it would take about 7 sold-out performances for that many people to see it.

Click here to see the complete report.

Economic Forces Changed the Printing Industry

21 Monday Nov 2011

Posted by Gregory Dean in Marketing Technologies

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Tags

CTO, DIgital Printing, Economic Forces, Economics, General Environment, Greg Dean, Gregory Dean, Marketography, printing industry, Task Environment, Technological Forces

The printing industry in the United States has enjoyed success in spite of many years of technology stagnation.

A recent wave of innovation has fueled changes that are beginning to affect the organizational environment. Forces specific to the general environment are causing the printing industry to be reinvented, while forces within the task environment are redefining the supply-chain. From production employees to raw material suppliers, everyone’s role, responsibility, and relationship is changing to accommodate the paradigm shift of this five-century-old industry.

Forces within the general environment are driven by the changes surrounding all three segments of the printing industry. Technological forces are the most predominate in the pre-press and press organizations. Pre-press concentrates on the preparation of materials for printing (Brown, 2009). Typesetting, for example, belongs in the pre-press segment of the printing industry. The advent of computers and desktop publishing software has redefined the role of a typesetter. Instead of manipulating the movable type invented by Gutenberg over five centuries ago, a graphic designer uses computers to set type and perform composition tasks.

The press or output segment of the printing industry is facing change due mostly to technological forces. Digital printing technologies are challenging traditional offset and web printing companies by allowing smaller companies to compete in the same market as large commercial printers. The most costly components of print production is addressed and solved with digital printing. The equipment is easier to maintain and waste is virtually eliminated.

The opportunities and threats created by technological forces are cascaded through several other general environment forces (Jones & George, 2007). For example, demographic forces are created by the need for employees with education and skills to match the new technologies. While jobs such as journeyman typesetter have become obsolete, advances in technology defined new positions. The demographic of a graphic designer is in complete contrast to a journeyman typesetter. Typesetting was a trade that could only be mastered by working as an apprentice. Today, graphic designers can learn the skills necessary for this position while attending college or a trade school.

The learning curve necessary to become a proficient digital pressman is minimal. As a result, the average age of a digital pressman is ten years younger than a journeyman offset pressman. Another ripple effect caused by a younger workforce surrounds sociocultural forces. The overall environment and culture in the workplace is changing to suit the personalities, tastes, and interests of a younger demographic.

The overhead and wages necessary to run a successful printing business today is noticeably less than in previous years. Many businesses have made financial cuts to their printing and advertising budgets. This economic force has challenged many of the well-established commercial printing companies. However, the smaller organizations are better poised to burden the financial strain.

The Economic forces resulting mostly from the demand of cost-conscience consumers have created a crowded playing field of competitors. The smaller businesses are beginning to win bids that would have never been considered in the past. Customers that would have never been able to afford traditional printing services are not only leveraging these services, but also in some cases justifying their own installation of digital printing equipment.

The low cost of digital printing has spawned a trend of in-house printing departments. Suppliers sell the raw materials to both commercial printers and in-house facilities, and therefore not affected by the loss of commercial printing to in-house manufacturing. Distributors are removed from the supply chain in an in-house printing environment. The most disconcerting change is that the customers now become competitors. The same economic forces that cause companies to become financially frugal shift direction and expose new revenue streams for in-house production facilities.

Digital printing technologies have reshaped the printing industry. An industry that once enjoyed an exclusive membership has been diluted by technology. Although technology can be interpreted as threat to the printing industry, many opportunities have emerged as a result. Moreover, opportunities for many new entrepreneurs to explore are now possible mostly due to advances in technologies in the printing industry.

The Bureau of Labor Statistics (2008) reports that 69.3% of the printing businesses in the United States employs less that ten people. General environment technological forces are responsible. Sociocultural forces endorse the changes, and demographic forces change the face of the manufacturing workforce in the printing industry—all for the better.

References

Brown, R. (2009). A Capsule History of Typesetting. Retrieved November 16, 2009, from http://www.historybuff.com/library/reftype.html

Bureau of Labor Statistics. (2008). U.S. Department of Labor, Career Guide to Industries, Retrieved November 14, 2009, from http://www.bls.gov/oco/cg/cgs050.htm

Jones, G., & George, J. (2007). Essentials of Contemporary Management. McGraw-Hill Publishing. Boston.

Advertising Media: More Choices Than Ever

09 Tuesday Mar 2010

Posted by Gregory Dean in Marketing Technologies

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advertising media, digital media, electronic media, Internet advertising, magazine advertising, newspaper advertising, print media, radio advertising, television advertising

Advertising media are the delivery mechanisms, or media vehicles, for all non-personal communication. Advertising media includes television, radio, print, and digital media. Each medium has several strengths and weaknesses. It is important to understand the different applications of each medium and the relationship of each communication channel to the target audience. Successful advertising is dependent on delivering a message to the target audience through the most effective advertising medium.

Advertising in the United States precedes the Declaration of Independence by three score and a decade. Advertising Age published a timeline (2005) revealing the past 295 years of advertising in America. The first newspaper advertisement appeared in a Boston Newspaper and was published in 1704. It was composed as a simple classified advertisement to sell an estate in Long Island (Advertising Age, 2005). Throughout the same century, articles and news stories gave way to advertising.

In 1843, Volney Palmer opened the first advertising agency (Holland, 1974). The agency, originating in Philadelphia, could only draw upon print media as a communication channel for their advertising campaigns. The first American-based advertising agency was formed eighty years before advertisers acknowledged the radio as a media vehicle, and over a century before television was invented.

At the turn of the twentieth century, newspaper and magazine advertisements were responsible for the lion’s share of revenue from print media advertising. In 1900, receipts from newspaper and magazine advertising topped 150 million dollars (Sherman, 1900). Advertising agencies found creative ways to position advertising for not only competing with other advertisements, but also vying for time against the articles. Compelling headlines atop an article were no match for a catch phrase and illustration in an advertisement. In his early twentieth century article, Sherman (1900) acknowledged that advertising had become a reader’s priority (p. 3). Individuals were actually reading the advertisements in a publication before they would read the articles.

A few decades into the twentieth century, the radio was beginning to be recognized as a viable alternative to print media. At the very least, radio could be used in conjunction with print media for enforcing a brand. The additional communication channel offered options to advertising agencies never before considered. The concept of cross-media advertising was born.

When television was invented, advertisers were already accustomed to creating advertising messages for electronic media. While it should have been a simple transition, developing marketing campaigns for television introduced several new challenges to advertisers.  The influence of both print and radio advertising is evident in early television advertising. Postwar television advertisements seemed to be nothing more than a spokesperson reading a script, but with the simple visual element of a printed sign or poster resting on an easel.

James Schwoch (1990) attributes the slow transition to the fact that radio performers were tasked with promoting a product on the new medium (p. 55). They were not accustomed to facing a camera while being illuminated by excessive lighting all the while surrounded by large production crews. As a result, television advertisements were nothing more than radio ads with the addition of a moving picture.

In much the same way as electronic media gained the advertising spotlight over print media, digital media has become the communication channel of the twenty-first century. Advertising agencies are only beginning to understand the extensiveness of digital media. Just over forty years ago, the Internet was discovered. The Internet of today in no way resembles the humble beginnings of four decades ago, but rather a powerful communication channel with the combined benefits of both print and electronic media to advertisers. With a plethora of options for delivering an advertising message, media planners are tasked with choosing the media best suited for the advertising campaign.

Depending on geography, a consumer may be exposed to several thousand commercial messages per day (Arens, Schaefer, & Weigold, 2009). Each message is competing for attention, and ultimately to raise awareness about a particular product or service. Every advertiser has the same advantages and disadvantages with advertising media. While advertising is a very crowded playing field, savvy media planners who understand the strengths and weaknesses of each advertising medium level the field. Technology has contributed to the expansion of advertising media from traditional print, through broadcast channels, and into the digital world. Early adopters of new media usually enjoy the benefits of a less crowded playing field, but at the risk of not reaching a broad enough audience. Riding the coattails of technology is a risky proposition usually reserved for the advertisers with products and services attractive to a digital audience. Companies are perceived as trendy or leading edge when using the latest technologies to host and deliver advertising messages.

With several advertising media options, a media planner is tasked with identifying the medium best suited for the campaign. Reach and frequency are considered for each media alternative—weighed against the strengths and weaknesses of each medium—and if deemed a proper fit, added to the media mix for an advertising campaign. The four top-level media alternatives include television, radio, print, and digital. Within each medium are contained specific ingredients of the media mix.

Print media encompasses any message that is produced on printed surfaces (Arens, Schaefer, & Weigold, 2009). Print media includes—but not limited to—newspapers, magazines, billboards, posters, and brochures. Print media is the oldest form of advertising communication. While evidence of print media used in advertising can be traced back to 3000 B.C., developments during the preindustrial age are responsible for the birth of print media in modern advertising.

Magazine advertising is a member of the print media mix. Magazines have been established as one of the best methods for communicating an advertising message to a select audience—second only to direct mail. The articles and editorial within a magazine are written with a particular audience in mind. As a result, any advertising within the magazine will be exposed to the same target audience. Additionally, magazines offer a longer shelf life than many other advertising media.

Magazine advertising, compared to other print media, requires a longer lead-time and advanced planning by advertisers. The frequency at which a magazine is published results in limited exposure and latency between campaigns. As digital media is becoming the preferred publication platform for both publishers and subscribers, hard-copy magazine circulations are declining. One ongoing debate surrounding magazine advertising revolves around the question of whether or not a consumer is willing to pay for access to extra advertising (Depken and Wilson, 2004).

Newspapers attract advertisers that are looking for more frequency and a concentrated reach. George and Waldfogel (2003) explain the importance of advertising in newspapers to consumers that share a similar preference (p. 765). Consumers will sometimes discuss an advertisement with other consumers. The cost of advertising in a newspaper is substantially less than advertising in a magazine. A daily newspaper offers advertisers the ability to reach a local or regional audience quickly and often. Newspaper advertising is not limited to printing within the pages of the actual newspaper, but extends into inserts and supplements using the physical newspaper as a carrier of externally printed content.

Newspaper advertising is idea for advertisers attempting to reach a mass medium. Newspapers are one of the few print media that a consumer may interact. It is not uncommon for a reader to highlight or circle classified advertising and clip coupons from an advertisement in a newspaper. Advertising in a newspaper is less competitive than in a magazine. One reason is because of market relevancy. In a publication such as a magazine, the reader demographic is narrowed to an audience interested in the variety of content contained therein. Every advertiser in a magazine is competing in the same market.

As with any advertising media, there are several shortcomings associated with newspaper advertising. Newspapers are printed on paper not suited for reproducing high quality images and graphics. Inconsistent and inaccurate color is a concern for an advertiser tasked with branding a corporate logo and imagery. A newspaper is responsible for delivering news and information to a local or regional area. Advertising, while an important revenue stream, takes a backseat to articles and editorial. Newspaper ads are typically placed at the discretion of the newspaper editor.

Television and radio are referred to as electronic media. Electronic media offers capabilities not available in print media. By using either television or radio as the media vehicle, advertisers can give their campaigns a voice. In the case of television, advertisements leverage the benefits of full motion and rich audio. Both television and radio have the potential to reach a large audience with an advertising message blurring the lines between informational and entertaining.

Arens, Schaefer, & Weigold (2009) polled adult viewers before concluding that television can stake claim to the most authoritative, influential, persuasive, and exciting of all advertising media (p. 328). The same survey reveals that radio is positioned well below newspapers and magazines in the authoritative and persuasive categories.  Television offers advertisers more options for the creative team to design and distribute an advertising message. Sight, sound, and motion are used in tandem to breath life into an advertising message. Prior to the Internet, television was the only medium that could reach a target audience and touch several senses concurrently.

Broadcast television advertisers can draw upon several advantages electronic media has over other forms of advertising. The mass coverage offered by broadcast television attracts national advertisers. The broadcast television medium has a low cost for exposure. Advertisers weigh the advantages—such as the ability to isolate a market segment by choosing the programming within which the advertising will air—against the various disadvantages associated with broadcast television.

Some disadvantages are not unique to broadcast television, or even electronic media in general. Ad skipping, bypass, or opt-out technology is prevalent in almost every advertising media. A newspaper advertisement can be easily overlooked as a reader chooses to concentrate only on editorial. Radio advertising is bypassed simply by station surfing during commercials. Digital media, the newest member of the media mix, is not immune to ad skipping techniques. An Internet user is in complete control of the browsing experience. They can easily click and move away from the advertising content. Broadcast email leverages automatic filters to trap unsolicited email messages.

Cable television advertising boasts a few advantages over broadcast television advertising. Considering the programming on cable television is more specialized, advertisers can compose a more relevant message and select a more specific target audience. Cable television advertising is also less expensive than broadcast television advertising.

One distinct disadvantage of advertising on cable television is fragmentation. The selection of channels and variety of programming on cable television reduces the audience saturation for each station. The quality of cable television, especially the smaller local stations, is a factor a media planner may consider when developing a strategy.

Satellite broadcast television is competing heavily with cable television for market share. Consumers are not concerned with which option offers less commercials, but rather more channels. When the competitive dust settles, the consumer is mostly concerned with price and value. The average household spends less than one-half of one percent of their budget on television services (Goolsbee and Petrin, 2004, p. 365). Revenue generated from advertising funds television programming.

Radio advertising shares many of the same benefits of television advertising. One difference is the fact that radio is considered a one-on-one medium. An advertiser can format a message and leverage the predictability of a listener. Radio stations concentrate on a specific genre, which in turn attracts a particular market. Satellite radio is a threat to traditional radio. Unlike television, satellite radio is a subscription service with many stations commercial free.

Cost and audience are the two main advantages of radio advertising. Radio stations typically have loyal listener base and the cost to reach the audience is less than television advertising. Considering that radio is only heard, advertisers are challenged with describing a product without the benefit of a visual element. Radio advertisements tend to sound similar, especially if the disk jockeys are the spokespersons on several advertisements.

The Internet has exposed several new concepts to advertisers. Unlike the other advertising media, the Internet requires a consumer to pull or request information. Whether through a link on a popular search engine or typing directly into the address bar of a browser, a consumer invokes a request. In marketing terms, the consumer skips several stages of the purchasing cycled and quickly becomes a prospect or hand-raiser.

The Internet is a fresh new venue for advertisers. The same rules that a media planner would apply to other advertising media hold true for digital advertising. The demographic of Internet user is very broad. A single advertising strategy for each campaign is not practical. Individual web sites have a specific target audience. Advertisers select web sites that attract a target audience within their market, and then purchase space for listings, banner ads, and hyperlinks.

E-Mail advertising is one of the most popular and least expensive forms of advertising. Irresponsible advertisers with a blithe disregard to the long-term effect of oversaturation have created undue challenges for future advertisers hoping to leverage this medium. There are several ways for advertisers to differentiate themselves from solicitors and make it past junk mail filters. Using a CAN-SPAM compliant email service is a must.

Internet advertising is interactive. Individuals can interact with content and provide real-time feedback. The Internet is global. Consumers are using the Internet to become better informed about products and services. Many consumers research a product on-line and compare pricing before making a purchase (Brown and Goolsbee, 2002). The disadvantage of Internet advertising includes the cost to reach a target audience. Search engines use a pay-per-click model and advertisers bid for positioning on the search term results page.

Several mainstream insurance companies advertise across all advertising media. Each campaign is targeted to a specific demographic and delivered using the communication channel most widely accepted by their market. While each advertising media is used concurrently during an advertising campaign, the specific strengths of each medium are leveraged. Brown and Goolsbee (2002) recognize that the Internet fosters price differentiation within the insurance industry (p. 482). Moreover, insurance companies actually encourage consumers to shop pricing of their competitors.

Insurance companies use print media and electronic media to enforce their brand and drive traffic to their web site. The corporate web site is positioned to be their best salesperson on their best day. The Internet has become a virtual extension to many businesses. In addition to a traditional storefront, many insurance companies created a click-and-mortar environment to reach beyond physical boundaries.

Doraszelski and Markovich (2007) report that more than $280 billion was spent on advertising in 2006 (p. 557). The ability of advertisers to recognize the advantages of one advertising medium over another creates measurable results and a guaranteed profit for agencies and the companies they represent. Digital media is currently enjoying the spotlight from advertisers. However, the traditional tried-and-true media vehicles remain a plausible option. Individually, each media is a powerful communication channel. Combined, as in a cross-media campaign, they become exponentially more effective.

References

Advertising Age. (2005). The advertising age timeline. Retrieved March 6, 2010, from http://adage.com/century/timeline/index.html

Arens, W., Schaefer, D., & Weigold, M. (2009). Essentials of contemporary advertising. McGraw-Hill Irwin. Boston.

Brown, J., Goolsbee, A. (2002). Does the Internet make markets more competitive?  [Electronic version]. The Journal of Political Economy, 110(3), 481-507. Retrieved             March 8, 2010, from JSTOR: http://www.jstor.org/stable/3078438

Depken, C., Wilson, D. (2004). Is advertising good or bad? Evidence from U.S. magazine subscriptions. [Electronic version]. The Journal of Business. 77(2) S61-S80 Retrieved  March 3, 2010, from JSTOR: http://www.jstor.org/stable/3663733

Doraszelski, U., Markovich, S. (2007). Advertising dynamics and competitive advantage. [Electronic version]. The RAND Journal of Economics, 38(3), 557-592. Retrieved March 4, 2010, from JSTOR: http://www.jstor.org/stable/25046325

George, L., Waldfogel, J. (2003). Who affects whom in daily newspaper markets? [Electronic version]. The Journal of Political Economy, 111(4), 765-784. Retrieved March 2, 2010, from JSTOR: http://www.jstor.org/pss/3555158

Goolsbee, A., Petrin, A. (2004). The consumer gains from direct broadcast satellites and the competition with cable television. [Electronic version]. Econometrica, 72(2), 351-381. Retrieved March 8, 2010, from JSTOR: http://www.jstor.org/stable/3598906

Holland, D. (1974). Volney B. Palmer: The nation’s first advertising agency man. [Electronic version]. The Pennsylvania Magazine of History and Biography, 98(3), 353-381.             Retrieved March 4, 2010, from JSTOR: http://www.jstor.org/stable/20090872

Schwoch, J. (1990). Selling the sight/site of sound: Broadcast advertising and the transition  from radio to television. [Electronic version]. Cinema Journal, 30(1), 55-66. Retrieved March 8, 2010, from JSTOR: http://www.jstor.org/stable/1224850

Sherman, S. (1900). Advertising in the United States. [Electronic version]. Publications of the American Statistical Association, 7(52), 1-44. Retrieved March 7, 2010, from JSTOR: http://www.jstor.org/stable/2276425

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