Instructor: Safaa S.Y. Dalloul
E-Business
Level 2
Try to be
the Best
2013-2014
E-Commerce
Advertisement & Customer Relationship
Management in the EC
Elements of Lecture
What is an Ad?
Why Ad?
Ad Methods
Ad Strategies
Customer Relationship Management
• It is an attempt to disseminate information in
order to affect buyer-seller transaction.
Web Advertisement
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.
Internet Advertising Terminology


Coverage
wide area
Unlimited
Information
Why Internet Advertising ?
Advertisement Methods
Banners
Advertisement Methods
Standard Ads
Advertisement Methods
HW: Search about Search Engine Optimization SEO
Email and SEO
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
opportunities such as yahoo.com
Advertisement Strategies
and
business
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.
Advertisement Strategies
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.
Effectiveness and Pricing Advertisement
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
management and selling.
CRM
consistency
in
account
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?
CRM