E-Commerce Business to consumer(with a focus on advertising)

For this session we focused on advertising element of the business to consumer model. Companies have to decide whether they are going:
(1) Mass marketing
(2) Market segmentation
(3) One to one marketing


Trust is a major element when it comes to business to consumer marketing. As a result it is necessary for a company to establish high levels of trust with current and potential customers. This is why it is important to have signs and symbols on a website that the customer or potential customers is familiar with.


In order to ensure that the customer is targeted with hte right information it is necessary to undertake some market research. Market research can be undertaken via online surveys, online sampling methods, data 2.0 technology (facebook, blogs etc., hearing from customers online and observing customers online.


There are however limitations to market research. These are:
(a) Accuracy responses
(b) Loss of respondents because of equipment problems
(c) Ethics and the legality of Web tracking




Once market research has been undertaken then the advertisements can be designed to suit the target audience. There are some terminology associated with web advertising. These are:


A) Ad views
B) Button
C) Page
D) Click through
E) CPM
F) Conversion rate
G) Click through rate
H) Click through conversion
I) Hit




Why do companies prefer to advertise online instead of using traditional media such as broadsheet or tabloid newspapers, magazines, TV and radio?


1. Costs
2. Format-can have graphics, animation, sound and text.
3. Timing
4. Ability to personalise ads




There are a number of online advertising methods such as:
(a) Banner ads
(b) Pop up ads
(c) Email advertising
(d) Online newsletters
(e) Advertising in online games


As part of the advertising strategy of the company it is necessary to manage the advertisements. This involves being able to match the advert with specific content. Secondly having the ability to understand the metrics and the impact it has on the content and delivery of the advertisements. Do we want to have three or four adverts that we can rotate depending on the time of day, day of the week or for special occasions throughout a month or season.


Lastly we focused on the problems that surround e-tailing. These are:


(a) Disintermediation and reintermediation
(b) Channel conflict
(c) Determining the right price
(d) Product and service customisation and personalisation
(e) Fraud and other illegal activities
(f) How to make customers happy