Importance of Online Advertising

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IMPORTANCE OF ONLINE ADVERTISING

Importance of Online Advertising
Kathy Kudler opened Kudler Fine Foods in 1998 to allow people with one place to shop for a broad medley of fresh food one would find at specialty stores. Kathy had success with her store and soon expanded into two other locations and has a vision of further expansion along with creating a mutual relationship with her customers. Although she has developed good plans to help market her stores, she has neglected the importance of online advertising and needs to expand her marketing scheme on her website. The article More Marketing Goes Online (2007) evaluates the increase of electronic commerce and the necessity of online marketing tools. The importance of online marketing is emphasized by the fact that most people use the internet to learn about products and search for the best deals. The internet has become an important source of information for individuals and has grown to encompass a wide variety of uses.
Kudler Fine Foods is a gourmet groceries store located in southern California. Kathy Kudler opened the store because she has a passion for cooking and was tired of driving around town to obtain the ingredients she needed at specialty stores. This store was a place where she could do all her shopping and believed that others who shared her passion for cooking would also appreciate her store. Kathy was met with approval and her store was a success. She quickly opened in other locations in 2000 and 2003.
Kathy plans to continue expanding as well as to create a mutual relationship with her customers. One of the marketing strategies Kudler uses are cooking parties held at the store; where famous chefs are invited to come show visitors how to prepare exquisite meals. Such events draw people into the store to help encourage consumer purchasing. Kudler events are also offered at private residences for a fee.
A shopper loyalty award system is another strategy Kudler uses; where consumer purchases are tracked and points are awarded to the customer who later can trade points in for various high quality rewards. An award system encourages consumer spending and allows Kudler a way of keeping track of a costumer’s purchases to help provide insight as to best satisfy that person’s needs.
Another strategy Kudler is pursuing is the cutback of costs associated with purchasing and storing of goods and lost cost associated with untrained professionals and bad company logistics.

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They are looking at other companies for clues to run their services more efficiently, have trained personnel, and acquired new integrated software systems. The training will help to expand the relationship with the customers as well as create a knowledgeable staff that will work more efficient with the new systems that create a more logistical structure to the company. One of the new integrated software being developed will keep track of consumer’s historical behavior of items purchased.
To get the word out to people about the store, Kudler uses traditional advertising through different medians. Along with marketing through radio, television and the newspaper; Kudler also sponsors public events to create a strong relationship with the community.
Although Kudler Fine Foods has done very well to market their stores, Kudler could benefit by upgrading their website to help promote the store to the public and encourage consumption. Kudler advertises in many medians, but has not taken advantage to advertise in a popular stream: online. Online advertising has advantages by being able to bring “accountability, breadth and the consumer (ABCs)” to marketing (Moore, 2005). “Accountability” allows an organization to know exactly what they are getting for its money. When Kudler invests money into building its website, they have a working site that they can use and will promote their stores. “Breadth” is the ability to track information regarding how well the marketing is working. With the help of online techniques, Kudler will know how many people visit the site and see what areas of the site are being used or not used. “Consumer” is the deliverance of the customer to the company. When people use the site and business picks up and feedback is positive; Kudler will know the effectiveness of their website. Kudler needs to look at marketing through the needs of the consumer: “solution, information, value, and access (SIVA)” (Dev & Schultz, 2005). Designing a website with the proper tools will allow Kudler’s consumers the ability to find ‘solutions’ to their cooking problems, get ‘information’ regarding recipes or events, gain ’value’ by learning new ways to cook, and ‘access’ to any of the helpful site tools at any time or place.
Online tools can allow Kudler the ability to market its store directly to the people they desire to advertise too. Marketing on the web can be helpful in differentiating one’s organization and help to standout from competitors. Successful organizations must have a web portal for their clientele to research their products and services and learn about the company. A tool that Kudler’s website could offer are recipes that include special ingredients found in its store along with customer reviews and feedback. The site should also include a calendar of events of its marketing initiatives and activities. An option to make reservations to hold private cooking lessons online could also help to increase customer inquiries and sales. A place on its website could help promote their shopper loyalty award system where people can sign up. A member can review how many points he or she has awarded to him or her and how many are needed for specific rewards which will help to motivate another visit to the store. A page designated to list some of the stores most popular items could help develop an interest in those products and create curiosity from those who have not yet tried it. An area can be designated for people with questions in an “ask the professional” page with a list of the most frequently asked questions.
Kudler Fine Foods opened in 1998 to allow people with one place to shop for a broad medley of fresh food one would find at different specialty stores. Kathy developed good plans to help market her stores and was able to expand into two other locations. With a vision of further expansion along with creating a mutual relationship with her customers, she needs to expand her marketing to include online advertising with an update to her website. The internet has become an important source of information for individuals and has grown to encompass a wide variety of uses. By taking advantage of the tools a website can bring, Kudler Fine Foods can provide “ABCs” to the company and “SIVA” to the customers and will help to increase Kudler’s return on her investments.

Reference
Dev, C., & Schultz, D. (2005, March/April). Simply SIVA. Marketing Management, 14(2), 36-41. Retrieved February 13, 2007, from University of Phoenix, Week Four reading, rEsource, BSA310-Business Systems.
Moore, D. (2005, January). Online advertising: A survivor's tale. Response, 13(4), 49. Retrieved February 13, 2007, from University of Phoenix, Week Four reading, rEsource, BSA310-Business Systems.
More marketing goes online. (2007, December 3). Credit Union Executive Newsletter, 33(20), 3-4. Retrieved February 13, 2008, from EBSCOhost database.


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