Med Net Problem Formation

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Med Net Problem Formation What company/organization is the subject of the problem? Who has responsibility for addressing the problem (usually the protagonist)? • • Heather Yates, VP for Business Development Identify the strategic marketing dimension to the company’s situation. • Value add vs. cost • Effectiveness of communication/advertising • Revenue generation • Med net has to decide how to charge advertisers for putting their message on the website. Price for the product • The product is a marketing communication vehicle. It carries information and persuasion yes, and it delivers an audience (w/profile) to customers/advertisers First 3 bullets are not strategic dimensions, they are outcomes of strategic decisions What is the significance of the problem to the subject? • Click-through (CTR) business model is gaining popularity over MedNet’s impression model (CPM). • MedNet’s Ads - Clients are concerned about the value generated for the money spent. • Competitors like Marvel are wooing customers with low cost per click-through • Condition-specific websites like has a better chance of converting a visitor to a customer. • Setting a price competitive to Marvel’s would drop MedNet’s revenue by 80% • Since advertisements are the only source of revenue, MedNet’s has to rethink their revenue generation strategy to sustain their business. • It is considered as a product problem because they may have to change the value proposition Note that technology is fragmenting the market and disrupting the business model What are the decision options? • Charging for the content, treating site visitors as patients. • Extend coverage of alternative health information • Develop and manage corporate websites What does he/she need to know to make a decision? • Impact on visitors count • Conflict of alternative

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