Question

1. Why is application integration an important part of running an online business?

2. Why would database management software be an important component of an online business Web site’s technology?

3. What is the key function of a content management system as used in an online business?

4. Name four types of information that might be useful inputs to a customer relationship management (CRM) system.

5.Briefly explain why mobile advertising is growing so rapidly.

6.Explain what online text ads are and briefly describe their advantages over online display ads.

7.What is an ad exchange network and how does it differ from a display advertising network?

8. Briefly define and distinguish between emotional and rational branding.

Answer 1

1) Application integration.

• Application integration is a mechanism which helps in an efficient data flow from one program to another. As well as it also enables the existing data flow between different software by supplying different interfaces for managing different data.
• Application integration is often a difficult process, especially when integration existing legacy application with new applications or web services.
• For a successful Application integration basic requirement

1. Adequate connectivity between platforms
2. Business rules and data transformation logic
3. Flexiblility of business processes
4. Flexibility of hardware,software and business needs.

   Application integration is important to run an online business because of following reasons.

1. Sharing of information : Information sharing is an important assets to every online business organization. With the help of Application integration any data can be flown smoothly through various software and users who are in need of that information get accurate information.
2. rent departments are coordinate with each other because of Application integration and can perform a task efficiently.
3. Simplified IT process : The more simplified It process, the more satisfaction the user derived. Application integration enforces a better techniques combining functionality and information of different application into single package.
4. Availability of multiple opportunities : As the business is online the customer can access the business website from remote location with create more customer base to the business and offer various opportunities to expand the scale of business.
5. Greater Efficiency : Application integration provides the combined and useful information to the department who having responsibility of such activity the efficiency of the work increases. Application integration provides the complete package of following benefit.

• Reduces time efforts,
• improved functionality,
• Better control over activities.

2) Database management software.

• Database management software also called as Database management system (DBMS). DBMS is a system software for a creating and managing databases.
• DBMS provides users and programmers with a systematic ways to create, retrieve, update and manage data.
• DBMS essentially serves as an interface between the database and end users or application programs, ensuring the data is consistently organized and remains accessible.
• DBMS provides a centralized view of data that can be accessed by multiple users,from multiple locations, in a controlled manner.
• DBMS can offer both logical and physical data independence. That means it can protect users and application from needing to know where data is stored or having to be concerned about changes to the physical structure of data.

Database management software is an important component of an online business because of following reasons:

1. Stronger collaboration: In online business there is important to create the collaboration between various department of business. DBMS helps in creating a stronger sense of collaboration between these seperate but connected tasks. The ability to manage the entire customer lifecycle through one piece of software enables employees at different stages of process to update critical order information in real time, keeping the consumer relationship in tact in all stages.
2. Attracting an audience : Online business or ecommerce websites are always attempting to widen their net,pulling in more interested customers to view and purchase their products and services. With new customers comes the potential for additional revenue and client referrals. DBMS helps online businesses pinpoint possibles customers and determine the strategy to push them through the sales funnel based on the information.
3. Maintain a retention rate : While bringing in new consumers it is an important task for any online retailers, their current client base shouldn't be overlooked as it offers its own benefits. DBMS helps web- based businesses can do just that. Retailers can use existing customer profiles to recommend products and services they may enjoy based on previous purchase and interest.

4) Customer relationship management system.

• Customer relationship management (CRM) system uses a database to accumulate information about business prospects and customers, including product needs and purchasing history.
• Various businesses integrate CRM data into their marketing and advertising efforts as well as sales strategies.
• Business can customize the information they collect and store, so configurations and virtually limitless.

Four type of inputs in CRM.

1. Customer information : Anything relative to customer is valuable in CRM system, including personal customer information and demographic data. notes and attachment can capture the details of a service call, customer support needs or warranty information. In this way, the CRM data replaces a paper file as a means of tracking each interaction with customer.
2. Employee information: The CRM system can store vital data, such an employee and commission information, for your internal sales force. Thus CRM also becomes a useful tool for assigning tasks, checking progress and monitoring sales goals and records internally. This feature gives the sales management team a way to monitor activity and allow individual sales representatives to compare their productivity against peers in real time.
3. Contract information : When used to manage prospects the customer relationship management system is invaluable for scheduling follow-up visits to potential customers who are currently under contract with another vendor. through cold calling efforts a sales representative may collect and record contract expiration dates and schedule future calls or visits accordingly with the CRM.
4. Purchasing information : Because of the elaborate records the CRM system keeps on customers and their purchasing habits, many businesses incorporate them into their marketing plans. Reports generated to reveal buying trends focus marketing efforts by pairing customers with the most beneficial products.