E-CommerceAdvertisement & Customer Relationship

Management in the EC

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E-Business Level 2

2013-2014

Try to be the Best

Elements of Lecture

What is an Ad?

Why Ad?

Ad Methods

Ad Strategies

Customer Relationship Management

Web Advertisement

• It is an attempt to disseminate information in order to affect buyer-seller transaction.

Internet Advertising Terminology

Ad views: The number of times users call up a page that has a banner on it

during a specific time period; known as impressions or page views

 Button: small banner that is linked to a

web site. It may contain downloadable software.

 Click: A count made each time a visitor

clicks on an advertising banner to access the advertiser ’s Web site

Internet Advertising Terminology

Hit: a request for data on a web page or file.

 CPM (cost per thousand

impressions): the fee an advertiser pays for each 1,000 times a page with a

banner ad is shown. 

Visit: A series of requests during one navigation of a Web site.

A unique visit: by asking the user to register on placing a cookie on the user’s computer such as forums.

Why Internet Advertising ?

Co

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Speed

Unlimited Information

Coverage wide area

G

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Rapi

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Advertisement MethodsBanners

Advertisement MethodsStandard Ads

Advertisement MethodsEmail and SEO HW

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Advertisement Strategies

Internet-based Ad. Design

Pull (Passive) Strategy

Push (Active) Strategy

Associated Ad Display Strategy

Viral Marketing

Advertisement Strategies

Internet-based Ad. Design: to have a

fantastic design your design should include

the following:

Visually Appealing (i.e. Color, Shape, Size)

Target Specific Group

Use Company Brand

Advertisement Strategies

Internet-based Ad. Design: website

designing factors:

Page Loading Speed

Business Content (clear and concise)

Security and Privacy

Marketing Customer Focus

Advertisement Strategies

Pull (Passive) Strategy: Strategy of waiting for customer passive

access.

This strategy focuses on how we can

attract the customers.

Advertisement Strategies

Pull (Passive) Strategy: Effective and economical when Advertising

to open and Unidentified potential

customers.

Advertisement Strategies

Pull (Passive) Strategy: When there are many web sites open to all

customers, directories are needed that can

guide customers to targeted sites, they

are available on many portals for shopping

and business opportunities such as

yahoo.com

Advertisement Strategies

Pull (Passive) Strategy: Pure advertisement site.

Retail Storefront

Advertisement Strategies

Push (Active) Strategy

Merchants need to actively advertise to

the targeted customers. This kind of

strategy is called push (active) strategy. “It

includes sending e-mails or SMS’s or using

banners, etc.”

Advertisement Strategies

Associated Ad Display Strategy :

Text Links:

Display advertisement that has

relationship with another

advertisement.To view an Example Click Here

Advertisement Strategies

Viral Marketing:

“World-of-mouth” marketing by which

customers promote a product or service by

telling others about it.

Effectiveness and Pricing Advertisement

Click-Through• An attempt to develop a more accountable

way of charging for web advertising. • The payment for a banner ad is based on

the number of times visitors actually click on it, so it is a count made each time a visitor clicks on an advertising banner to access the advertiser’s Website

Effectiveness and Pricing Advertisement

Interactivity

While the payment based upon click-through

guarantee exposure to target ads. It doesn’t

guarantee that the visitor liked the ad or even

spent any substantial time viewing it.

Effectiveness and Pricing Advertisement

Interactivity• The Interactivity model suggests that

basing ad pricing on how the visitor interacts with the target ad. Such as interactivity measure could be based upon • The duration of time spent viewing the ad, • The number of pages of the target ad

accessed,

Effectiveness and Pricing Advertisement

Interactivity• Such as interactivity measure could be

based upon • The number of additional clicks

generated, • Or the number of repeat visits to the

target ad.

Effectiveness and Pricing Advertisement

Actual Purchase

Marketers are interested in outcomes, and the

ultimate outcome is a purchase.

It’s obvious that 1000 people visiting a site is

worth something, but a site that only five

people visit can be worth much more if they

are actually shopping there.

Effectiveness and Pricing Advertisement

Actual Purchase

In an outcome-based approach to pricing,

web advertisers start by specifying exactly

what the marketer would like the target ad

to do.

Effectiveness and Pricing Advertisement

Actual Purchase

Many merchants ask consumers to place their logo

on their web sites.

The companies promise to pay the affiliate a

commission of 5 to 15 percent if customers click on

their logo on the affiliate’s web site and eventually

move to the merchant site to make a purchase.

CRM

What CRM?

CRM

What CRM?

CRM is defined as integrated sales, marketing, and service strategy that precludes lone showmanship and depends on coordinated actions.

CRM

Three phases

of CRM?

CRM

CRM

Acquiring New Relationships

Acquiring new customers demands a great deal of planning.

Research shows that the probability of sales goes up when prospects receive a response to their request within one to three minutes.

CRM

Enhancing Existing Relationships  Companies prove their commitments on a daily basis by taking time to hear customer’s concerns and by developing a service focus.  For example, a buyer who has selected a camera can be offered a tripod. Or an agent can suggest a similar product of better quality (up-selling).

CRM

Retaining Customer Relationships  Retaining customers requires a complete understanding of the needs of the customer and a determination to stay in the relationship.  The business of growing a company can be framed as a matter of getting customers and keeping them. While customer retention is increasingly the focus of companies that operate in a competitive environments, it will likely become an obsession for all companies as customer choice increases and switching costs become lower.

CRM

Why CRM?

CRM

Why CRM?

Use existing relationships to grow revenue: enhance profitability by identifying, attracting, and retaining the best customers.

Use integrated information for excellent service: use customer information to better serve his or her needs.

Introduce more repeatable sales processes and procedures: In order to enjoy continued success, companies must improve consistency in account management and selling.

CRM

Why CRM?

Create new value and instill loyalty: it can be your point of difference, your competitive advantage for the ability to respond to needs and accommodate requests.

Implement a more proactive solution strategy: instead of just gathering data and eventually using it, eliminate issues before they reach the crisis stage.

CRM

Organizing Around the Customer: The New CRM Architecture

1. Are most of the company’s applications designed simply

to automate existing departmental processes?

2. Are these applications capable of identifying and

targeting the best customers, those who are the most

profitable for the organization?

3. Do these applications keep track of when the customer

contacts the company?

Any Question