- Change in Management of Two Merged Companies
- After the Newsweek magazine merged with Daily Beast website four years ago, the two companies are experiencing shakeup in their management system. The publisher of the magazine and two top editors are leaving the company. The departure of the officials results in a shakeup of the company especially in the managing structure. According to the owner of the organization, the departure of the officials is because of their failure to give the expected results in relation to the advertising program. The officials did not manage to build a brand preference in order to get a considerable number of clients. Their role was to create brand awareness to the public in order to increase the generation of income in the company.
- The owners of the company made a statement concerning the new management system and ensured all potential customers that everything is on the right track. While doing so, the owners were trying to protect the company’s image from having a negative impact to the customers. According to reliable sources, the Newsweek publication encountered a loss of close to $20 million. The other company known as Daily beast had a loss of close to $ 10 million. In order, to support the marketing department of the company, the owners had to convince all the clients that everything is well. The owners issued the statement so that they may keep the merged company’s relationship with the public strong. Creating a strong relationship with potential customers is one of the strategies that the company intends to use in order to support the marketing department.
- After the merging of the two companies, the owners had a strong believe that the management would be able to make suitable strategies that would contribute in creating significant profits. However, the plan did not succeed because the management failed to create effective sales promotion strategies. For the company to achieve its targeted goals, the management had an obligation of applying various promotion tools. Using of various sales promotion tools always help an organization to reach many customers and therefore manage to make many sales as possible. Most of the tools that the management could have used include offering specialty advisement.
- The management had an obligation of making advertisement through various media channels like radios and on televisions. The option of the company to bring new officials in the management is of significant benefit to the company because it will be able to create a new mechanism of promoting its products. Even though the new management will use short-term promotion tools, they will be of significant importance in stimulating a quicker purchase of the company’s products. An example of how the company may use promotion tools is that the management may decide to publish a number of free copies and issue to the public in order to advertise their services in a broad way.
- Considering the fact that both of the two companies made a huge amount of loses, there is a need for the company to use the marketing public relation it may continue supporting the marketing department in creating awareness of their product to more people in the market. According to the owners of the company, the new officers in the management have an obligation of developing a competent advertising strategy that ought to lure more customers to the services of the company. The management of the company may use various tools in order to reach the targeted customers.
- The new management has an obligation of making various events in order to reach all the customers whether in urban or rural areas. This will help many of the clients now about the company’s existence and its new management structure. Hold of various events help a company to associate directly with consumers’ live. This strategy contributes in deepening the relationship of the company with a target market. One of the events that the company may hold includes performing trade shows in various specific geographical areas their sales is low.
- Even thought the company does not have much money considering that both of the merging companies incurred a lot of loss. The new officials in the management have an obligation of developing an advertisement program that will be effective in the next several years. After making the advertisement program, the management ought to consider various issues in order for it to be effective. One of the issues that the management ought to consider is the timing of the advertisement they intend to in various media channels.
- Advertisement may follow a certain timing pattern in order to reach a specific target market. The management should also consider the forgetting rate of potential customers. This means that the less the company makes through sales, the more there is a need to advertise on the services that they offer. In order to gain more profits in future, the new management may opt in considering making continues advertisements. This means that the company may advertise its services continuously for the next several years in order to expand its market.
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