Disadvantages of the Yellow Pages Marketing Campaign at DiFeo Glass and Mirror Water - Case Study Example

?Letter of transmittal November 26, Michelle DiFeo Glass & Mirror Company Westchester County New York Dear Michelle DiFeo Following my realization that your company has remained royal to the traditional Yellow Pages even in the the wake of new and more efficient online methods of advertisement, it is my sincere hope that you will find this report useful so you may consider changing your marketing strategies. There is no doubt that Yellow Pages has linked you with very many customers in the past, but following the outburst of internet-based marketing, I would like to bring to your attention that the Yellow Pages are slowly becoming obsolete. In this report, I have presented the results of a survey that were conducted within your location and you can only ignore these statistics at your own peril. Apparently, many customers have revealed that they currently rely on online marketing. Furthermore, the report has explained why Yellow Pages are, also, not cost-effective compared to its online counterparts. At the end of the report, there are some recommendations, which we hope will be of much worth in your esteemed company. Regards [Name] Outline: Executive summary Introduction Purpose of the study Scope of the study Sources and methods Results of the survey Conclusion and Recommendation Works Cited Executive summary This study is about Glass & Mirror’s Yellow Pages campaign, which is considered an ineffective marketing campaign. Essentially, the purpose of the study is to gather evidence to show why this method of campaign in not effective. The company, which is owned by Michelle DiFeo, operates within New York’s Westchester County and has relied on the Yellow Pages for marketing since 2004, thereby ignoring other options of advertisement that are being adopted by many companies nowadays especially in the wake of the internet explosion. The study is conducted by issuing questionnaires to a sample of 50 potential customers from the New York’s Westchester County. The results of the study have largely shown that the Yellow Pages are becoming obsolete as it is quickly being taken over by online marketing. In view of these results, the president of Glass & Mirror is recommended to adopt online marketing and to focus on building the company’s brand name. DiFeo Glass & Mirror Water Yellow Pages campaign Introduction DiFeo Glass & Mirror is a wholesale and retail company owned by Michelle DiFeo, located in New York’s Westchester County. The company has used Yellow pages for advertisement campaigns since 2004 and, hence, has continued to ignore other campaign options such as the internet, which have taken the center stage in the advertisement industry. DiFeo has admitted that use of the Yellow Pages is ‘a force of habit’ which is worth her investment, but it is clear that she has spent a staggering amount on them - this study will reveal how this expenditure could be ineffective (Stamoulis 4). DiFeo Glass & Mirror has used Yellow Page advertising as one of its best option for product promoting. In New York’s Westchester County, which is the DiFeo Glass & Mirror’s service area, there are tens of phone books. This means that DiFeo Glass & Mirror has to advertise in a multiple phonebook in order to reach many of those who need its services. As a result, DiFeo Glass & Mirror spends thousands of dollars on Yellow Pages campaign. In this study, this campaign is considered absolutely ineffective. Some of the reasons cited for causing Yellow Pages ineffectiveness include the fact that customers are quickly turning to online advertisements, the cost of a Yellow Pages supersedes its benefit, and because the administration of the Yellow Pages is extremely complex (Stamoulis 5). When estimating the benefits of Yellow pages, measurements such as cost per call, monthly calls per phone book and cost per sale are used. A company cannot achieve the utmost results if this information is not available. If the company relies on the sales representative to get recommendations regarding Yellow Pages advertisements, then it will get biased opinion at its own costs; because sales representatives barely say what will increase their commission. Every month, DiFeo Glass & Mirror’s marketing team adds up the calls that have been received after going though the phone bill, and then sorts the data in a spreadsheet – a very tedious and costly process (Palda 25). Some of its proponents argue that it is effective despite its high cost, since it attracts a direct response. Whether Yellow Pages deserved the staggering budget they are allocated by DiFeo Glass & Mirror is the critical issue that will be addressed in this study. Purpose of the study The purpose of this study is to conduct a survey of the market and establish the reasons why Yellow Pages print advertisement are not effective. The study will involve several respondents who are potential users of Yellow Pages as well as other advertisement media, and analyze the data to support how the Yellow Pages are ineffective. The results of the study will be used to give recommendations to the president of DiFeo Glass & Mirror, regarding why she should abandon Yellow Pages advertisement, and point out some of the alternative avenues she should adopt and the reasons why she should do so. Scope of the study This study is about the reasons why DiFeo Glass & Mirror’s use of the Yellow Pages as a products campaign tool is ineffective. The study is conducted within New York’s Westchester County, which is DiFeo Glass & Mirror’s service area. The selected respondents are potential customers of the products similar to those sold by DiFeo Glass & Mirror. The respondents are selected randomly regardless of which methods of advertisement they prefer. Sources and methods In order to find out why Yellow Pages are ineffective, a survey is conducted within New York’s Westchester County. The sample that is selected includes 50 consumers of the same products from the same region. A questionnaire is administered to the respondents, containing different question regarding effectiveness of Yellow Pages advertisement compared to other methods such as internet advertisements. Both qualitative and quantitative data are gathered and analyzed using different methods including graphs. The responses from the questionnaire are tallied; scores rated and tabulated for all the questions listed in the interview questionnaire. All the questionnaires are structurally standardized with specific questions aimed at getting responses to each objective of the research. A total of 10 questions focusing largely on the effectiveness of Yellow Pages as a product campaign tool are formulated. Results of the survey Out of the respondents who participated in the survey, a staggering 85% revealed that they considered an advertisement in the Yellow Pages ineffective. When the potential customers were asked to state how often they used the Yellow Pages, print version, a meager 5% accepted to have been using them on a daily basis, while a whopping 75% maintained they have never used them. This is, of course, a credible evidence to convince marketers to shift away their advertisement budget from this kind of a print campaign. The respondents were also asked to state where they look for products, and a whopping 91% of the respondents cited Yahoo, Bing, and Google, which are all internet-based (Lohse and Rosen 2). Figure 1: Do you think Yellow Pages are effective? Figure 2: How often do you use the yellow pages? These statistics are shocking and should be an eye opener for DiFeo Glass & Mirror to start investing in internet-based campaign lest the company becomes irrelevant in the wake of the fast growing online marketing (Lyve 12).The statistics show that many customers are relying on the internet to search what they need, and any company that will ignore this habit will be headed for a rude shock as it will lose customers to its competitors. Figure 3: Where do you look for products? Since the internet is a crucial platform that is driving Yellow Pages to its obsolescence; the respondents were asked to state how often they searched products on major search engines such as Bing, Google and Yahoo. The results from this question were appalling too. About 85% maintained that they use them on a daily basis, while10% often used them. These statistics are very realistic considering that billions of searches are conducted on major search engines every month. Indeed, combining these revelations with the fact that millions of potential customers are browsing through social media daily means that every company will have to depart from print media campaigns and adopt online-based marketing strategies (Marjori 12). The other question whose results were wanting asked the respondents what they do with their Yellow Pages phone book. Approximately 95% confessed that they recycled it, threw it away, or used it as a doorstop. Therefore, businesses from New York’s Westchester County, which are not shifting their resources to online marketing, will soon exit the market as competition will blow them off (Lyve 12). Conclusion and Recommendation Following the outburst of online-based internet marketing, many customers have turned to the internet to look for the products they require, and hence abandoned the traditional print media such as the Yellow Pages. In addition, the online marketing has become more effective than its print counterpart; therefore, many traders have adopted it. In a market that is highly competitive, it would be a prudent decision to adopt online marketing to avoid losing customers to the competitors (Neil 10). DiFeo Glass & Mirror is still grappling with the traditional Yellow Pages for marketing its products, but it is the high time it ditches it for more effective online options. The statistics analyzed in this study have clearly shown that the Yellow Pages are quickly becoming obsolete and ineffective. In view of these observations, it is recommended that the president of DiFeo Glass & Mirror implement the following strategies in order to safeguard the company’s competitiveness. Abandon Yellow Pages directories and pay for Search Engine Optimization (SEO), which will optimize the company’s website visibility on search engines. In addition, the company should consider adopting other online marketing options such as Blogs, Video Marketing, Text Message Marketing, Pay- per-Click (PPC), Email Marketing, and Social Media Management, among many other. These methods will guarantee DiFeo Glass & Mirror a more effective marketing, and also reach a very wide audience base. The company should also focus on building its brand. This can be achieved by adopting a variety of marketing strategies including TVs, Bill boards, or even participating in Corporate Social Responsibilities (Marconi 52). Works Cited Lohse Gerald and Dennis, Rosen. “Signaling Quality and Credibility in Yellow Pages Advertising: The Influence of Color and Graphics on Choice.” Journal of Advertising 30.2 (2001): 73-85 Lyve, Alexis P. “Advantages and disadvantages of the Yellow pages.” PowerHomeBiz.com. January 2004. Web. 24 Nov. 2012 Marconi, Joe. The Brand Marketing Book: Creating, Managing, and Extending the Value of Your Brand. New York: McGraw-Hill Professional, 2000. Print. Palda, Kristian. The measurement of cumulative advertising effects. New York: Prentice-Hall, 2008. Print Marjori, Masitto. “Yellow Page Advertising for the Novice” At the Centre (2012). Web. 24 Nov. 2012 Neil, Kokemuller. “The Effects of Advertising in the Yellow Pages” Chron. 2012. Web. 24 Nov. 2012 Stamoulis, Nick. “Why Yellow Pages Will be dead in Five Years.” SEJ Search Engine Journal. 13 Feb 2012. Web. 24 Nov. 2012 Read More