Virtual Advertising

4 Pages 892 Words

Problem Overview

As the Vice President of sales for Zone One Communications you have a dilemma of needing to raise profits for the company, but do it in a way that doesn’t overstep your boundaries and all parties involved could realize gains. One way to do that is through a fairly new technology called virtual advertising. This is putting advertisements in places where it would have been impossible to do before this new technology. They use computers to superimpose advertisements onto the screen so people at home can be exposed to other advertisements and more revenue can be generated. The biggest problems are getting the OK from the schools to do, and paying for the expensive new system.



Diagnosis

The decision making progress needs to involve different stakeholders. The first one to consider is the school that is hosting these events. In this case it is Indiana University and Purdue University. They have sold the rights to broadcast the game, but there are stipulations written into contracts to protect their interests. One would assume that the broadcasting company could not have rivals as game night sponsors to the sponsors of the team. This may include an athletic apparel company and a soft drink company. For example, if Nike sponsored the Boilermakers basketball team, Zone One couldn’t have Reebok as a game night sponsor. The same kind of considerations would have to be considered for virtual advertising.

Zone One, as a whole is the next stakeholder that needs to be considered. They are the ones who are going to be taking on the cost for starting the technology of $25,000. For that they have the final say in implementing the new technology. Before they pay money, Zone One needs to line up sponsors enough to cover the cost of technology and administrative costs involved therein.

One problem that could arise from the utilization of virtual adverti...