Thursday, December 8, 2011

Yahoo, Google and Chrysler: How the Internet is Changing Advertising and Marketing



1)     Why are companies like Chrysler now looking more favorably at the Internet as a greater medium for their advertising dollars? What has happened to change their view?

With the development of telecommunications and Internet, it is truly global and its impact is massive. As presented in the case an American spends more than 30% of his/her time in internet. Internet has taken the time of television and other Medias. Case says that 63 % in a survey said that internet is a brand building tool and almost every portion of American household is connected with internet and also there is 50 % growth in internet users. It also talks about huge flow of dollars in online advertising in recent years.


Depending on paper media and television which is almost half century old and following the same path of advertising since so long has been very monotonous. Probably Chrysler is looking more favorable at internet as a greater medium for their advertising dollars because surveys and studies shows how efficient it is to use internet and how people are fascinated towards it. As Roehm says, it may sound like marketing geek, but they like to fish where fish are, its because they are well known about the changed people’s perception from TV and print media’s to internet.

2)      How do Google‘s online and revenue sources and strategy differ from yahoo’s? Which online and strategy is superior for attracting advertising from small companies? For attracting advertising from large companies? Defend your position.

Google has effectively reinvented its online advertising with the targeted, classified text links that we can see everywhere. They have the strategy to go soaring profits from selling those ads and driving high their stock market capitalization to billions. They are generally text based and provide simple and linked results to the peoples search whereas making enormous amount of profit in ads it provides of an organization.

Yahoo performs on, search advertising, online classifieds and a host of commission generating business such as selling SBC and Verzzion broadband subscriptions. They are much visual oriented and easy to relate with and understand. Yahoo’s opportunity is massive and to new user of online marketing it can be more helpful because they are not limited to something, they do almost everything.
To attract small companies for advertising Google’s strategy would work because they have very less to say about themselves at first and they can manage their budget by being precise in text.
Whereas, big companies can use yahoo and have the grand feeling as their brand have by making it much flashier and grand.




3)      If you were in Julie Roehm’s position at Chrysler, how would you distribute Chrysler’s advertising dollars among online and traditional TV and print media? Defend your position.

If I were In Julie Roehm’s position at Chrysler, hopefully someday, I would distribute 50% of the advertising expenses to internet considering internet’s availability and growth and for TV commercials I would allocate 30%, since television as well is a very reputed media to reach people and remaining 20% I would invest on paper and print media because although they are old mediums but still there are people who go for that and also paper and print ads are easy to keep as memo for costumers.

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