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Mekanism case homework

by: Frederick Notetaker

Mekanism case homework MKTG 5721

Frederick Notetaker
GPA 4.0

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About this Document

1 page summary of the 16 page case
Digital Marketing Strategies and Measurement
Ho Kim, Ph.D.
Class Notes
Mekanism case
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This 2 page Class Notes was uploaded by Frederick Notetaker on Thursday April 7, 2016. The Class Notes belongs to MKTG 5721 at University of Missouri - St. Louis taught by Ho Kim, Ph.D. in Spring 2016. Since its upload, it has received 40 views. For similar materials see Digital Marketing Strategies and Measurement in Marketing at University of Missouri - St. Louis.


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Date Created: 04/07/16
Executive Memorandum Mekanism Engineering Viral Marketing Frederick Eccher Mekanism is a digital media production company that specializes in creating viral marketing campaigns for advertising agencies and their clients, advertisers. Mekanism has grown tremendously from 2007 to 2010. Mekanism’s president, Jason Harris, and CEO, Pete Caban, were contemplating expanding its services to other advertising content and media, in effect becoming a full-service ad agency. The company had enjoyed a 68% in annual growth for 3 years before hitting a 10% growth plateau. This case discusses whether Mekanism should evolve into a full service ad agency or keep its current focus on producing viral marketing campaigns. Viral marketing was initially sought out by small advertisers because of its ability to reach millions of consumers quickly and cheaply. Major advertisers became interested after seeing its success with increased accountability and lower costs. Mekanism had developed a reputation for viral marketing and it quickly became its main revenue generator. As more advertisers hired Mekanism for their marketing needs they wanted more promotion tools to be developed. They started thinking about going full ad agency after a Pepsi-Lipton contract to create viral ads for the Super Bowl and the ad became the most watched on YouTube the day after. This success made Mekanism think of working directly with brand advertisers rather than their agencies. This would mean a closer relationship with advertisers and jumping into more media. But it would be safer to stay in its niche market and not develop a lot more processes which it wasn’t proven to be the best at. Pros of viral marketing much cheaper than traditional media, Cons for the handful of viral campaigns that explode hundreds more have little or no impact at all. Requirements for being successful consistently are storytelling engaging the consumer on a deeper level, management of digital platforms, and building a network of high profile digital influencers to foster brand communities. Measurement of successful campaigns are reach, engagement, buzz and mentions and increased brand sentiment. Now to get back to the case question at hand I would recommend to Mekanism since their clients needed more tools to measure quantifiably the value of the campaigns, the increased demand by their clients and their ability to tap into more markets with their creative team that becoming a full service advertising agency is the smart move. It might be different if there was no demand for it, but the opportunity cost is that eventually a competitor steals clients by copying Mekanisms success and giving the clients the additional tools they want to justify the cost.


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