Med-net. Com Confronts “Click-Through” Competition The case solution
who will purchase the company’s products more frequently. Further, it can be argued that the customers visiting the website are more willing to purchase the products despite of low their impressions, after having a detailed research on the website.
Despite of Med-net having a low number of impressions, i.e. 516,000 as compared to the number of impressions for Marvel, i.e. 798,000; it does not mean that the total sales revenue on Wind-ham would be higher. One key measure for analyzing the revenue generated through banners based advertising campaign is the sage of coupons, i.e. after clicking on the banner advertisement; the customer would be directed towards a printable coupon, which could be downloaded and used by the customers at pharmacy, which would be ultimately reported by the pharmacy and the advertiser would be able to determine the return on the investment.
The contribution per sale of Med-net is $150 as compared to Marvel with a contribution per sale of $45. Yates can argue that the visitors of the Wind-ham Pharmaceutical will generate more sales, as the contribution per sale of Med-net is greater than Marvel. Thus it can be argued that would it be worth paying a premium to Med-net (i.e. $3.33) as compared to $0.54 to Marvel, as the company would be able to generate significantly higher sales revenue through MedNet.
Question 4
The general interest site is defensive as compared to the specific points, which are listed below:
The information that is uploaded on the site is specific and is scientifically proven with evidence.
- Deals with different customers at the same point through diverse information related to the medical fields.
- The medical information is trusted and accurate because its sources are valid and it comes from reputable institutes and news agencies.
- To ensure reliability; trained employees view the media content.
- It does not facilitate by providing the treatment and ignoring any negative impact.
- It has high visitors rate and low bounce rates.
- The visitors on the website share the company’s website with their friends and family members.
- Advertisers also try to endorse themselves after a successful achievement of the conversion rate.
- Visitors also involve in impulsive buying behavior for friends and family members.
Question 5
To address the competitive threats; Med-net should opt for the following options:
Expand product line: Med-net should go for corporate collaborations for employees’ healthcare solutions, which will provide the company a competitive edge to the company among the niche players in the market. Almost 40% of the employees follow medical information from Med-net.
Work for current model: The consumers have a firm belief that Med-net's prescribed remedies are effective and provide vital results, i.e. to 85% of the population. The advertisers explored and found that if MedNet uploads more content on the website then the lead generation will eventually increase, following which the sales will also increase.......................
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