Reebook Case Study
ContentsExecutive summary 21. How appropriate was the suggestion from Shiva to Venkatesh to adopt ROMI as the tool to measure and justify continued management support for the SMM initiative? What other tools are used currently to measure SMM initiatives? 32. What is your evaluation of Alex Bossmans approach to a new marketing tool? What are the pros and cons of traditional versus web enabled marketing tools? 53. What long-term strategies, policies and direction should Venkatesh adopt for making SMM the mainstay of Reebok Indias marketing strategy going into the second decade of the millennium? 7Conclusion 9Bibliography 10Executive summaryThis whole assignment is in the description of Venkatesh how to persuade Alex believe that social media marketing is beneficial to the companys sales and how to converse these Facebook likes and followers, YouTube viewer, and the visitor of their website becomes Reebok companys customers. Furthermore, Venkatesh needs to think about other ways on how to make Reebok not just only increase the sales but also increase the brand recognition through social marketing tools by going into second decade of the millennium. This distribution can also give you an idea of the importance of social media marketing for a business in this era of technology development.How appropriate was the suggestion from Shiva to Venkatesh to adopt ROMI as the tool to measure and justify continued management support for the SMM initiative? What other tools are used currently to measure SMM initiatives?There are some challenges on how to measure and calculate the return on marketing investment, particularly when tracking the effect of a few activities. Therefore, the mapping of the return for any one marketing investment will be exceptionally hard to build up. Indeed, even other marketing investment that are not really coordinated at brand or at attracting customers will have shifting degrees of life span and unpredictable effects on the company’s return. (Reibstein, 2015)Therefore, Shiva gave some advices to Venkatesh about the importance of pay attention to the complex of ROMI matters and what is controlling behind the social media. Due to the reason that social media has a lot of pipes such as blog, message, opinion, track fans, tweet, re-tweet and posting to the worldwide what will be closer with the customer and generate sales. Moreover, Shiva had list out the effect sequence on a sheet of paper and explain what will happens when implementing the social media marketing campaign. The first step which is investment (Rupees); second step is action; third step is reaction; fourth steps is non-financial impacts and the final step is get financial impacts. Shiva also pointed it out this process it takes time to wait for a return but totally will get financials impacts while implementing social media marketing. The information come from social media such as customer comments and complaints, followers, likes, web site visitors, negative press, YouTube hits that can be used to understand customer needs and wants in order to improve the Reebok’s product. Although all of this social media investment cannot exactly calculate the quantity of return but it is potential of return on marketing investment, and Shiva justified the non-financial can convert into financial by observe from the basically sales. After that, Shiva’s opinion had let Venkatesh think that in fact of the media marketing investment is actually effective on business return because he found in YOY sales which grew 25 cents and customer personal transfer increased by twice.
In order to measure the social media marketing initiatives, Venkatesh can using the social media platforms such as Facebook, Twitter, YouTube advertisement to get reports of customer preferences. Moreover, through build up social media platform that representatives company’s image that can be changing profile of the Reebok to target and attract new customers from each places. Reebok can call everyone actively participate on leave comments on their website and collect likes on identify which products of they launched is most favorable. (Reibstein, 2015) In order to measure ROMI, Customer Lifetime Value (CLV) is the most important content to calculate ROMI. The key contribution for determining return is to have a comprehension of how much every customers adds to the value of the firm. CLV is commonly used as a part of customer relationship management investigation but on the other hand is basic in evaluating ROMI. (Sungil Lee, 2012)What is your evaluation of Alex Bossmans approach to a new marketing tool? What are the pros and cons of traditional versus web enabled marketing tools?My evaluation of Alex Boss man seem to be too skeptical toward the Venkatesh’s approach of social media marketing. Alex refused the new marketing tools also has his own reasons, because during that time the technology is not developed and advanced so he got no enough confidence in trusting media marketing investment. Moreover, network is likes a virtual world, it let him does not believe about it can be profitable and return from the social media investment. For example, he does not believe the quantity of likes and visitors will be able to convert it to sales, so he did not care about how many visitors and hits on their website.There are some important reason that why Alex will rejected the Vankatesh’s marketing ways. The first thing is Alex does not know how much time it will take to get the real return on sales either in the end there will be no return. The second reason is the risk of implement the media marketing such as get the negative responses from public or need a large of money by invest in social media marketing. The decision perspectives also an important reason that affect Alex to choose which marketing tools. This is because we still need to know about the divisibility of marketing actions and how much to experiment？Furthermore, market synergy also will affect the whole business on the market. So the Reebok Company need to do an experiments to decouple collinearity and to estimate marketing interactions. (Reibstein, 2015)The Pros of social marketing is the most recent technique for purchasing and offering on the web. It overcome a lot of the issues that traditional marketing needs to deal with. First, the pros of social marketing are a lot cheaper than other marketing tools. This is because almost the all online platform are free to use and promote your business. The other advantages of pros social marketing which is promote and expand your brand into bigger audiences. If you have something or have some news or crisp data that you might want to share or inform to your target groups, you can depend on Social Media Marketing for quick action and quick outcomes. On the other sides, the Cons of Social Media Marketing for Business does not generally target people, only target on specific groups or areas. Thus, while a marketing advertisement may achieve a substantial number of individuals, not the majority of the general population it will be interested. There are some traditional marketing tools such as daily papers and magazines, are presently going on the web, so less individuals are reading the printed forms. Moreover, traditional promoting is less effective on the more youthful groups, especially millennials. If the target market is more youthful than around 30, it is best to use non-traditional strategies. Traditional advertising can be unique and creative, but the methods also tend to be more predictable then non-traditional methods. (Gregorio, 2014)