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Analysis on a marketing news story which has appeared in 2013 - Essay Example

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Article Review Article Review Introduction The article chosen for review in this report is titled as “P & G Shifts Marketing Dollars to Online, Mobile: World's Largest Advertiser Says as Much as 35 % of Ad Budget Going to Digital Media”…
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Analysis on a marketing news story which has appeared in 2013
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Analysis on a marketing news story which has appeared in 2013

The review of the article reveals that the company wants to introduce digital marketing as a means of targeting its customer base in the United States. Analysis P & G, like its other competitors, has been following a combination of traditional and innovative marketing strategy for its products. However, keeping in view the market data and research findings of changing trends in consumers’ lifestyle, the management has decided to adjust its strategies accordingly (Serena & Vranica, 2013). After reading the article, it is inferred that the company is planning to spend more on online marketing activities of its products, owing to the fact that a vast number of Americans are expected to prefer spending more time on the internet rather than watching television. This shift in the consumers’ behaviour has in turn influenced P & G’s marketing experts to focus more on digital marketing concept (Serena & Vranica, 2013). The digital marketing concept, which involves the use of internet and mobile as a marketing channel, has been considered by the company as a replacement of its marketing campaigns on television (Ryan & Jones, 2012; Hoffman & Novak, 1996; Egan, 2007). The fact that digital marketing is cheaper and, with consumers spending more time on the internet, is more targeted, the company has aimed at spending one third of its total budget for marketing on the online advertisement and marketing campaigns in the United States (Serena & Vranica, 2013). The decision to switch from television and other traditional marketing channels to internet and mobile can be viewed as an intelligent one, since the marketing mix for the company can be developed in a more prudent manner (Ryan & Jones, 2012). As for instance, by marketing its products online, the company will be able to target its customers and inform them about products in a much more convincing and effective manner. Moreover, it will be possible for the customers to obtain information as per their respective needs, because the review of literature pertaining to digital marketing suggests that internet is an interactive marketing medium and is considered as a many-to-many model, in comparison with traditional one-to-many marketing channels (Silva & Vassiljev, 2011; Ryan & Jones, 2012). According to Hoffman and Novak (1996), internet as a marketing medium is a proficient means of communicating and advertising a product to target customers. Keeping in view the concept of “flow” which is defined as a process of optimal flow by Csikszentmihalyi (1990), Hoffman and Novak (1996) state that “when in flow in a particular Web site, a consumer will be more likely to remember the brand name, feel good about the brand, and be more likely to return on a subsequent occasion.” (p.2) These attributes of internet as a marketing medium have been taken into consideration by P & G’s marketing team, and in this regard the Chief Executive of the company has stated that, “digital is incredibly effective, and we're doing more” (Serena & Vranica, 2013). The fact that there are some brands of the company, such as Tide and Pantene (Serena & Vranica, 2013), which have lost their respective market shares, and as a consequence the company has decided to introduce innovative strategies that may lead to capturing a significant market share in the United States. In addition to this, it is also pertinent to mention here that the company’s Chief Executive regards this strategic move of the ... Read More
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