LOVE Case - Mednet.com Study Example | Topics and Well Written Essays - 500 words

LOVE - Mednet.com - Case Study Example â€Å"A differentiation strategy means that value is provided to customers through the unique features and characteristics of a companys products rather than by the lowest price† (Openlearningworld, 2011). The firm provides value to its customers by allowing them to search for medical information beyond their immediate needs. Differentiation also implies offering a set of meaningful valued differences to distinguish the company’s offering from that of its competitors (Kotler, 2003). The marketing goals of Mednet.com include achieving sales growth, satisfying its customers, increase viewers of the website, and increase its customer base. The firm is currently facing a marketing dilemma due to the fact that one of its largest customers is threatening to bailout on the company and leave for Marvel if the firm does not change its marketing cost formula. The client wants Mednet.com to stop charging for banner impressions. â€Å"Most web businesses generate their revenue via these banner impressions (advertising)† (Essortment.com, 2011). Approximately 80% of the firm’s revenues come from banner impression sales. The first option is to eliminate the banner impression advertising in order to match the pricing strategy of Marvel. This is not the best option because it would drastically reduce the revenues of the company. Executives of the company estimated the company would lose 80% of its current sales. The second option is to keep the current pricing strategy without making any adjustments. A third pricing strategy is to reduce the price structure of the company and substitute the income by adding additional services. â€Å"Pricing is an important strategic issue because it is related to product positioning† (Netmba.com, 2012). When a company charges a price that is too low the customer perception is that the quality of the good or service offered by the firm is low. Mednet.com can change its revenue