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E-Commerce Advertisement & Customer Relationship Management in the EC Instructor: Safaa S.Y. Dalloul E-Business Level 2 2013-2014 Try to be the Best.

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Presentation on theme: "E-Commerce Advertisement & Customer Relationship Management in the EC Instructor: Safaa S.Y. Dalloul E-Business Level 2 2013-2014 Try to be the Best."— Presentation transcript:

1 E-Commerce Advertisement & Customer Relationship Management in the EC Instructor: Safaa S.Y. Dalloul E-Business Level Try to be the Best

2 Elements of Lecture What is an Ad?Why Ad?Ad MethodsAd StrategiesCustomer Relationship Management

3 Web Advertisement It is an attempt to disseminate information in order to affect buyer-seller transaction.

4 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

5 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.

6 Why Internet Advertising ?  Unlimited Information  Growing Rapidly

7 Advertisement Methods Banners

8 Advertisement Methods Standard Ads

9 Advertisement Methods and SEO HW: Search about Search Engine Optimization SEO

10 Advertisement Strategies  Internet-based Ad. Design  Pull (Passive) Strategy  Push (Active) Strategy  Associated Ad Display Strategy  Viral Marketing

11 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

12 Advertisement Strategies  Internet-based Ad. Design: website designing factors:  Page Loading Speed  Business Content (clear and concise)  Security and Privacy  Marketing Customer Focus

13 Advertisement Strategies  Pull (Passive) Strategy:  Strategy of waiting for customer passive access.  This strategy focuses on how we can attract the customers.

14 Advertisement Strategies  Pull (Passive) Strategy:  Effective and economical when Advertising to open and Unidentified potential customers.

15 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

16 Advertisement Strategies  Pull (Passive) Strategy:  Pure advertisement site.  Retail Storefront

17 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 s or SMS’s or using banners, etc.”

18 Advertisement Strategies  Associated Ad Display Strategy : Text Links:  Display advertisement that has relationship with another advertisement. To view an Example Click Here

19 Advertisement Strategies  Viral Marketing:  “World-of-mouth” marketing by which customers promote a product or service by telling others about it.

20 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

21 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.

22 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,

23 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.

24 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.

25 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.

26 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.

27 CRM What CRM?

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

29 CRM Three phases of CRM?

30 CRM

31 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.

32 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).

33 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.

34 CRM Why CRM?

35 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.

36 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.

37 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?

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