MARKETING OF SERVICES

Case 03 - “MedNet.com Confronts ‘Click-Through’ Competition”

Submitted by-
Agni Lokayatha (PGP/23/069)
Shubham Meena (PGP/23/175)
Vineet Bajaj (PGP/23/307)
Manasi Shinde (PGP/23/397)
Sarita Uikey (PGP/23/474)
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Q1. What does an advertiser want? Sales, leads, Brand awareness? What are the best
metrics for measuring these?

 In this case, the advertiser wants a call to action, i.e. purchase of the drug advertised
online on Mednet.
 In this case, Wyndham wants sales generated through the leads which come from
the ads displayed on Mednet. By clicking the ad, the user lands on the advertiser’s
website as a lead and converts to a potential sale after the purchase using Mednet’s
code.
 According to the case, the best metric in online advertising is CTR; however, as per
industry standards, the best way to gauge is CPL (cost per lead) as the user has
shown high intent in the product.

Q2. What specific consumer behaviours determine whether or not a business model
produces the results an advertiser wants?

Ans. An advertiser’s ultimate goal is to reach those customers who will be ready to invest in
their product.  Advertisers want to increase their sales and brand awareness through
advertising. Depending upon the business model used for advertising the sales and brand
awareness are probable to increase.  An advertiser uses multiple metrics like CTR (click-
through-rates) and CPM (cost per thousand impressions ) to calculate the return on
investment (ROI).

The dynamic of a buyer is the most significant standard in the purchaser conduct which
incorporates the acknowledgment of the issue, data chasing, data assessment, behaviour,
choice assessment. To rate an effective plan you have to look at customer leads, which is
reliably about their elements like when, how, what and why a customer buys. In an online
circumstance, an effective plan will provoke more taps on the website and to a higher
notoriety of your picture on the Internet. Successful plans of action will guarantee more snap
throughs and site visits. Subsequently these models don't simply focus on high and steady
arrangements yet furthermore on high brand reliability and care. Accordingly, high
transformation rate is the consequence of the brand mindfulness, devotion, rehash buys,
and so forth and these elements are fundamental for a promoter.

Q3. What is the best argument Heather Yates can make to justify charging Windham
Pharmaceuticals for impressions instead of click-throughs? Does she have acceptable
alternatives?

Ans. Heather Yates can justify charging the Windham Pharmaceuticals for impressions
instead of click-throughs by focusing on the average profit contribution per sale by their
website.

MedNet Marvel
Cost per 100 clicks $333 $54
Click to Sales conversion 6% 2%
Cost per sales $55.5 $27
Contribution per sale $150 $45
Contribution per $ spend $2.70 $1.66

The above calculations clearly justify the charging by MedNet on the basis of impressions.
She can also think of charging based on click-throughs at an average click-through price of
$3.33, though this would not make any difference in the amount to be paid by Windham to
MedNet.
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Q4. What value to the consumer does a general interest site contribute that a niche site
can’t? Which is the more defensible Business model?

Ans. The General interest site is more defensible than the condition-specific on the basis of
the following points-

 The information provided in the general interest site is scientifically proven and
evidence-based.
 Caters to multiple consumers at the same time with diverse medical information.
 The material generally contains trusted medical information as it comes from
prominent medical schools and news agencies.
 Medically trained journalists review the viewer generated media to promote reliability.
 Does not provide medical treatment to eliminate the negative impact on consumer's
health.
 Low bounce rate and has serious visitors.
 Visitors tend to share these websites more often with friends and family, thus they
have high consumer confidence.
 Advertisers will prefer a sole platform to promote themselves when the sale
conversion rate is high.
 Visitors may indulge in impulsive buying for family members.

Q5. What steps can MedNet take to address emerging competitive threats?

Ans: Following steps can be taken by MedNet in order to address the competitive threats:

 Product Extension: Employee’s healthcare solutions platform on its website through

corporate collaboration. Therefore, giving a competitive edge from niche players like
cholesterol.com as mentioned in exhibit 3 that 40% of employees allow storing
personal information to MedNet.
 Maintaining current business model: As per the survey, 85% of people feel that
MedNet provides useful remedies and information than advertisers found on
websites while adding more therapy content to the websites will lead to an increase
in the leads and eventually the sales.