Online Advertisement Strategy - Essay Example

? Online Advertisement Strategy of the Introduction Electronic commerce also known as e-commerce is a technology that allows users to buy and sell products and services over digital platforms (Bhasker, 2006). The buying and selling process is however conducted over the online digital platforms such as the computer networks or the internet. Apart from facilitating online buying and selling of products and services, it also plays crucial role in other business domains. For example, e-commerce supports electronic funds transfer, internet banking, supply chain management, online transaction processing, internet marketing, inventory management systems and automated systems of data collection (Botha, 2004). With the colossal development of technology, e-commerce has now become one of the important business tools for small and large business houses across the globe. E-commerce is not just used as the technology for promoting sales, but is also used as a tool for engaging customers and remaining in touch with them (Gao, 2013). Furthermore, e-commerce is one of the cheapest forms of business transaction. Along with that it has mass reach (Goel, 2007). One of the biggest advantages of e-commerce technology is that it has no time limitations and companies can use this technology to carry out business operation across the whole day. The labor cost and delivery time also get reduced to a great extent thereby reducing the overall cost of operation (Alsmadi, Alhami & Alsmadi, 2009). Studies have shown that e-commerce market is growing at a robust rate (Ecommerce-land, 2004). When it started the market value of e-commerce business was considerably less, but according to latest reports, the global e-commerce market has reached $1 trillion reflecting a growth of 21.1% market share. Forecasters have predicted that this year the market will grow further and will touch $1.298 trillion worldwide reflecting a growth of 18.3% (Emarketer, 2013). One of the most surprising forecasts was that the Asia Pacific region will surpass the North American region to become the world’s leading market for the e-commerce business. Figure 1 – Growth Forecast (Source: Gaskell, 2012) Hence, from these facts and figures it is evident that e-commerce market is growing at a steady rate and is an important tool for business houses to embrace development. With a staggering 384 million internet users, e-commerce provides companies with the opportunity to expand business and increase the overall revenue. Therefore it can be affirmed that recommending Mary and Joe Johnson to implement e-commerce technology for their business operation is fully justified. The next sections of the study will throw light on the certain aspects of e-commerce and its associated concepts. Importance and Features of a Website The growth and development of technology have influenced a number of firms across the world to implement new systems for enhancing their overall productivity. The emergence of internet has taken the use of technology for business to the next level. Eminent scholars and industry experts have stated that internet has actually changed the way of business transaction is carried out. Furthermore, it has also played pivotal roles in the improving business communication and the flow of information across the organization hierarchy (Jagoda, 2010). A company considering e-commerce implementation for business transaction should also encompass a website, which is the platform over which business deals will be carried out. A website is defined as a collection of different ‘web pages’ under a single domain name. Websites are powerful and cost effective marketing tools as well. In addition, a company having its own website increases the chances of getting recognized and remains visible in the marketplace. Some of the key features of a website are as follows: - 1. Provide Information: - The most important feature of a website is that it provides information to the users about the subject of concern. It not only offer the users with information about the products and services, but presents information regarding the background of the company, contact information, information about career opportunities in the organization and several other information regarding the activities of the company and its financial information. 2. Feedback from Customers: - Another important feature of a website is the presence of customer feedback forms. In this context, the company can get the feedback of the customers about its offerings or can even take suggestions from the users about the development opportunities. 3. 24*7 Accessibility: - A website can be accessed 24*7 and from any places of the world. However, in order to access the website the user needs to have internet connection as well as a device. It gives greater business opportunity to the users. 4. Provide Customer Service: A website is often used as a platform through which the company can provide customer services. A customer complaint form is generally uploaded in the website where customers can post their grievances or can post their queries. This makes the company more accessible to the customers. Apart from directly offering customer service, a website often takes proactive roles in enhancing the loyalty among the consumers. 5. Navigation and Eye Catching Design: - A website also has navigation features i.e., it allows users to navigate from one page to the other. In addition, a website in general has an eye catching design which helps in increasing the visibility of the company. 6. Acts as an Online Store: - Another vital feature of an online store is that it allows companies to carry out business transactions. A website can be used for the purpose of online selling platform and also allows users to make payments. However, in order to convert a website into a fascinating online store it should have a great navigational feature, an easy to explore shopping cart, customized and personalized features, intelligent use of images and videos to make it more attractive for the users and lastly a website should encompass a search engine with which users can search their desired products or services. Therefore from the above facts it is evident that a website has multiple features and it the same are explored properly can provide marvelous results for the company. A well developed website will not only facilitate online sales, but will also help in incurring and promoting sales through the physical stores. Online Advertisements The shifting trend of consumers and their changing needs has forced companies to modify the existing product strategies. In the similar way, companies have also altered their marketing strategies. One of the apparent emerging trends is the shifting pattern of promotional strategies. Companies nowadays are looking for cost effective promotional tools so as to ensure they remain profitable. As a result of that, companies are currently focusing on online advertisements that provide significant benefits to the organization at low cost. Online advertisements offer the companies with the ability to trace which strategy will be beneficial and which will not work. Another advantage of online advertising is that it has the capability to target mass customer segment (Korper & Ellis, 2000). In addition, measurement of the performance of the online advertisement can be easily carried out. However, it is essential to develop high quality advertisements and alongside the use of the most suitable website for the company. In the context of Mary and Joe Johnson, the company is recommended to use flash advertisements instead of banner ads. This is because banner ads are static and has less ability to grab the attention of consumers. On the other hand, colorful flash advertisements will easily grab user’s attention. Once the advertisement is developed, the next task is to position it in the most appropriate website. Studies have shown that nowadays companies mostly use social media platforms to advertise their products. This is because around 80% of the internet users are using social media platforms to share media content and receive information and along with that the number of social media users is increasing at a robust rate. As a result of that companies are increasing their budget in social media advertisements. Moreover, markets and advertising agencies are incorporating social media strategies for the purpose of obtaining more clients and higher sales. Twitter, Facebook and LinkedIn are the most famous social media websites being used by the marketers. According to reports, Facebook earned revenue of $4.3 billion, LinkedIn has $972 million and twitter earned $288 million, which shows that how business houses around the world are relying on social media platform to promote their business (Hashtags, 2013). Despite enormous opportunities, few business houses still do not believe in the viability of social media promotion. In the similar way, Mary and Joe Johnson, the owners of Book Bunker, do not consider social media advertisements for product promotion because they lack knowledge of social networking sites. Therefore, on request of the client, social media advertisement strategy will not be considered. Apart from social media there are several other websites that provide advertising opportunities at low cost and can be used to reach out to a mass segment. Moreover, social media is growing at a rapid pace but there are some customers who still do not use social media. Hence to target them other websites can be useful. For example, the company can use blogging websites, dating websites, news sites and other gaming sites to promote their offerings. The principal reason for using on these websites is the high traffic. The company will be able to get colossal benefits if succeeds to effectively use the proposed websites. This will allow the company to target mass customers and can simultaneously get benefitted by the opportunities provided. Once the advertisement is designed and websites are selected, the next task is to focus on the keywords and ad-words that will be used for optimizing the advertisement. Keywords and ad-words are the specific words or phrases that are used in advertisements for the purpose of increasing the visibility of the advertisement. Keyword advertisements also refer to the technique in which advertisements are associated with particular terms or phrases. In this context, the company, Book Bunker is involved in selling books. Hence, it is important to associate the keywords with advertisements that supports or remains consistent with the nature of business. Therefore the recommended keywords that can be used by the company are as follows: - “new books” “academic materials” “Story books” Children books” “Cookery books”. “nobles and biography” “Rare books”. With the aforementioned keywords, it is expected that the visibility of the company will increase because the majority of the users who looks for buying online products uses these common keywords to search. Advertisement on Local and Global Scale Advertisements are often divided on the basis of its reach. The two types of advertisements are local and global advertisements. Local advertisements are the advertisements that are generally developed for the purpose of targeting the local consumers or consumers who are close to the area of operation of the consumer. While on the other hand, global advertisements are the type of advertisements that are meant for targeting the overseas audiences. In the context of Book Bunker, the company is recommended to consider advertisements that have the ability to target customers from the global environment. Since, the company has been recommended to employ internet marketing strategy; advertisement on a global scale will not be a cause of concern. Since, internet is connected across the globe and has the ability to reach mass customers; the company has the opportunity to target customers from the other parts of the world. The development of technology has further boosted the opportunity for the companies to take their venture on the global scale. Moreover, when the business can be carried out over the online platforms, there are hardly any difficulties. Therefore it is evident that the company has great scope and high abilities of taking the business on the global scale. However, there are some limitations that a company has to experience when promoting business on a global scale. The major factor is the cost, which will be extremely high for global advertisements. Furthermore, in order to target global customers, a standardized advertisement will not work because there are large cultural differences among the countries and as a result the company needs to carry out in-depth research about the culture of the target countries (Mooij, 2009). It has been observed that the company has a physical store as well, but it will be difficult to target global audiences through the store. Yet, the company has the potential to target global audiences with its online selling platform. In order to promote the online store and increase the incoming traffic, the company also needs to pursue other advertisement strategies apart from internet advertisement. Customer Relationship Management Systems In this turbulent phase of business, companies are putting extra efforts for satisfying the needs of the consumers. One of the major rationales for this activity is to retain the existing customers. Studies have shown that it costs a company nearly five times to attract a new customer in comparison to retain a customer. Thus a cordial relationship between the organization and its customers is extremely important. A good relationship between company and its customers also help in improving the satisfaction among consumers. A satisfied consumer on the other hand become loyal towards the company and sometimes becomes word-of-mouth promoter of the company. Nowadays, apart from offering quality products and services, companies are also taking the advantage of technology to improve satisfaction levels among the consumers. One such tool or technology is the customer relationship management. Customer Relationship Management commonly known as CRM is a model used for the purpose of managing the relationship with customers. CRM involves the use of technology to automate, synchronize and organize marketing, technical service and customer service. It also manages the purchase records, address details and other necessary records of the customer. With this information, CRM software in turn helps a company to analyze different factors and simultaneously tailor its product and services (Buttle, 2012). Figure 2 – Functions and role of CRM (Source: benefitsofcrm, n.d.) Thus, CRM is often dubbed as an essential component of contemporary business management. Moreover, organizations nowadays also devote bulk of resources and energy to the management and setup of CRM capability. One of the biggest advantages of CRM is that it streamlines the offer about what the customer requires and not what the organization has the ability to make. Hence, it is evident that implementation of CRM brings a paradigm shift in the company as their focus shifts from product focus to customer focus. However, the ultimate aim of CRM is to increase the overall profitability of the firm. In the context of CRM, it is achieved by providing better after sales service than the competitors. Furthermore, a good CRM also has the ability to minimize the wastage, costs and customer complaints. CRM also provides market research opportunities to the companies. For example, with the help of this tool a company can carry out a consumer feedback research or an opinion research and on that basis product and service developments can be carried out. Therefore, with the implementation of CRM, the traffic towards the online website and the number of walk-ins into the store of Book bunkers will increase at a rapid pace. It is also necessary for the company to carry out certain activities or pursue strategies that further strengthens the relationship between the company and its customers. So the company is strongly recommended to initiate programs that generate interest among the consumers and makes the customer loyal towards the company. Hence, the company is strongly recommended to offer the loyal customers with special discounts. In addition, the company is also recommended to launch referral programs in which an existing customer referring to a potential customer is entailed to receive an additional 10-15% of discounts. In addition, free gifts from the part of the company during special occasions. Therefore, with the implementation of CRM it is expected that Book Bunker will be able to increase online and physical store sales. Conclusion The study was meant for analyzing and recommending the most appropriate e-commerce solution to the client Mary and Joe Johnson so that they can improve the visibility of their business and at the same time increase the overall sales volume. The company in this context is recommended to use flash based dynamic advertisements, instead of static banner ads. The company is also recommended to advertise on a global scale so that customers from other parts of the world can be targeted. In addition, implementation of CRM will be an added advantage for the firm as it provides them with the opportunity to make the customers loyal. References Alsmadi, I., Alhami, I. & Alsmadi, H. (2009). The Requirements for building an E-commerce infrastructure. International Journal of Recent Trends in Engineering, 2 (2), 7-9. Benefitsofcrm. (n.d.). The benefits of CRM (Customer Relationship Management) systems. Retrieved from http://www.benefitsofcrm.com/. Bhasker, B. (2006). 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