E-Commerce and Advertisement in Napster Business - Research Paper Example

E-COMMERCE CASE SCENARIO Napster Business Question No 2 Assume you are a Vice-President of Advertising for Napster. Evaluate which advertising techniques have been successful or not and explain the reasons why. Then, discuss specific proposed online advertising changes you would implement to grow the customer base. Note that these must be specific, for example, if you say ‘use more banner ads’ – you must identify some sites to include, the costs for these sites and reasoning why you chose the sites. To emphasize your research, you must provide at least 2 citations from computer or ecommerce related journals found in the University physical or online library (equivalent of 1000 words). Overview Napster is an inspiration of Shawn supporter, has been launched on June 1st, 1999 as a peer-to-peer online music downloading framework intended for college students. Napster has turned out to be a one of the majority well-liked websites over the internet, maintaining almost 15 million online clients in slight more than a year. Ever since the commencement of this business, there are lots of difficulties and issues from the RIAA as well as music business players. Afterward this business was stopped and after that restarted with new and latest business tactic. In this scenario Napster is far behind from its market contestants, the major reasons are the permissible problems of Napster and then a new and fresh set up of business. In this report as an Advertisement Vice-President for Napster I will discuss some of the prime areas and issues of online advertisement and promotions for the Napster business those can take this business to the supreme dimensions. Market Conditions At the moment Well-liked and fascinating music has turned out to be a billion-dollar global vacation business. In fact, music had the entire qualities of a service; however recent and innovative technology has facilitated the change of music into a valuable product: an album that is put up for sale in the form of tape, compact disc as well as vinyl layouts. Formerly the songs have been on inscribed, presented and created the song albums are comparatively inexpensive to transfer, copy, and sell to customers. However the proper use of web based arrangements and recent technologies have made this overall medium more comfortable. Now we can avail the facility of web based links those are offering us free of cost as well as supreme quality music without the problem of shipping and complex procedure of selling. The web based profitable music industry is in its early epoch and incorporating new enhancements and perfections for the possible business growth and augmentation. The biggest key to success in any business is its promotional strategy as well as ways of advertisement. The business all through the world is incorporating fresh and modern promotional policies and practices (Kuosmanen & Viitanen, 2000) and (Heikkinen & Koskinen, 1998). Napster Advertising The basic goal of advertising is to catch the attention of customers and then to make them purchase/hire company’s products or services no matter they like are in favor of it or not. Additionally, there are lots of invasive advertisements for instance on the TV; in such a situation people can recognize the goals of advertising as well as advertisers and how challenging is it for them to make people buy their products. In this regard, the only way to make people purchase it is to convince them with the help of reasonable and convincing arguments that they in fact need it (Delloway, 2010), (Patti, 1977), (Summers et al., 2003) and (Byzalov & Shachar, 2004)  In case of Napster Business Advertising we are experiencing a lot of aspects and areas to think about. The effect of advertising on the consumers’ optimism concerned with the imaginative quality of recordings is mainly an attractive matter. Receiving the word away regarding our company is significant if we are going to have some achievement. Advertisement of goods and services has altered extensively over the time; however a number of things turn out to be the similar. We require directing our business in a positive radiance as well as setting our businesss name in the intellects of potential consumers. We have to amuse them a bit as well as offer an intimation of the type of knowledge the client will have. As of newspapers to Internet, from viral movements to skywriting, here are a number of means to publicize our business (Pendleton, 2010). Advertising Techniques In this section I will present some of the prime and most famous web advertising techniques. These techniques will be specified to better suit the Napster Business and its overall promotional areas. Here are some of the main advertisement techniques which will be used by the Napster Business in future: E-zines The main and most popular technique is E-Zines that is about sending some information to your customers regarding company’s new offers, endorsement or else concession. It is based on web newsletters that are distributed to the customers for better business accessory. This is a free in addition to more effective business promotional technique for the Napster’s Business (pandecta, 2010). Special Offers This is also a way of attracting customers. In scenario of such advertisement we will present our customers some special offers regarding new goods otherwise services. Like in case of Napster Business we can present our customers some special packages regarding purchase of any music package or else the capability of availing free music offers (pandecta, 2010). Free Services The prime purpose of the implementation of any promotional technique is to attract and facilitate customers. In this scenario Napster Business needs to bring the customers to its site by offering some elevated standard experience for the music. In this scenario offering some free sound tracks can give the feelings of overall quality of business. In this way the customer will be attracted and then the customer pays for the suitable and affordable membership of the business (pandecta, 2010). Articles In this era of technology spreading information about the business is also a vital technique in order to promote the business extensively. In this scenario we can place our business and promotional articles on various business and promotional websites. In this way the business will be proficient enough to get more positive response and attraction from the customers. In this regard we can also use some sort of wiki or else discussions, forums and blogs for our business promotions. In case of Napster Business we can offer articles about business new plans, new music arrivals, discount offers or special offers (pandecta, 2010). Email We are competent to follow our email replies to a definite advertisement by means of an email focus. For Napster Business we will choose a precise remark to be inserted within the email subject intended for each announcement. Though we can demand that a definite expression be inserted inside the email subject, a lot of times it would not be provided. To stay away from this difficulty, we are capable to create a particular email connection that will routinely insert the subject when it is clicked-on. Here we can send our business customer special email or else web content to some mail business like yahoo to send business emails to diverse clients (Web-Source, 2010) and (Summers et al., 2003). Sponsor Ads One more big method to promote our products and services is to execute our business advertisements on other promotional website. This will pull customer to our business website. In this scenario we will have to pay to other business websites for the promotion and business advertisement of our industry. In addition, this medium of advertisement regarding business promotion is not so much expensive (Web-Source, 2010) and (Summers et al., 2003). Social Networks At the moment social networks are one of the widely used approaches and techniques for the business promotion. In this scenario this way of business promotion is used to better target the business customers by placing some attractive ads. For Napster Business we will create a number of forums or else social grouping on some social network websites like Facebook, Twitter, etc (Maddox, 2008) and (onlinemarketingbase, 2010). Question No 4 Napster does business globally, but international ecommerce laws can pose challenges. Analyze two of the main legal challenges you see affecting Napster and how is Napster facing these challenges? (For example: illegal downloading, data protection, privacy laws such as SOX in the US, taxation laws, etc). To emphasize your research, you must provide at least 2 citations from computer or ecommerce related journals found in the University physical or online library. Overview Doing business and working in the practical world involves the similar or possibly bigger official menaces like operating in the actual world. These legal issues as well as hazards take a lot of varieties: like at the moment we are facing a lot of legal issues regarding online business that can be: brand name violation, exclusive rights violation, legal responsibility, official document ownership, violation of privacy, disparage and defamation, etc. An astonishing amount of businesses do not place a Terms & Conditions of Use contract on their business website. That problem or flaw could turn out to be an expensive one. Of those businesses that do place lawful notices, a lot of such documents are terribly imperfect. Unless we specially deny otherwise, we are unreservedly supporting other websites when we connect to them. Therefore, a displeased, ripped off, or inferior client of one of the websites that we connect to could take legal action for “recommending” them (Spencer, 2004) and (Curphey & Araujo, 2006). In this report I will present some of the prime business and ecommerce permissible challenges that Napster business can encounter. The intention of this assessment is to save the Napster business from possible legal problems and diverse business issues: Music Business Legal Challenges The businesses and professions allied to the music are typically influenced by lawful matters on a standard basis: from footage, artist agreements, record download and online music distribution treaties to name safety, exclusive rights law as well as business organization. Legitimate features of the Music Business observes all the official issues like site owner, musicians, artists, engineers, as well as producers convene when making their professions, and presents a focused glance at the significant lawful transformations that have developed as an effect of the move in the music industry environment. The way takes a true-world technique to clarify the official matters that persons working in the music industry countenance at the moment (Gorder & Masur, 2010). Illegal Downloading Business of Napster Business is about the online music downloading, so I have decided to discuss this one of the vital and hot legal issue at present that is, “Illegal Download”. Illegal or Prohibited Download is one of leading problem that is widely producing great problems for music business and as well for artists and music companies. In this scenario United States Digital Millennium Copyright Act is a great deal harsher and deems reproduction of copyrighted songs and music tracks (through the omission of producing a copy intended for our personal utilization) as against the law. The United States Code defends copyright proprietors as of the illegal alteration, copy or delivery of sound recordings, in addition to some digital concerts to the people. In extra wide-ranging words, it is deemed official intended for us to buy a music CD as well as record (rip) it to MP3 files just intended for our personal utilization. In case of uploading these music files by means of peer-to-peer networks would form contravene of the law (Beal, 2010). Recording Industry Association of America or simply RIAA defines the punishments intended for violating the copyright law diverges somewhat determined by whether the violation is intended for lucrative or personal economic benefits. If we suppose being trapped breaching these copyright regulations will outcome in a little money otherwise "admonishment". In the United States the online breach of copyrighted music is capable to be chastised through up to 3 years in jail as well as $250,000 in currency to be paid as penalty. Reiterated criminals are able to be put behind bars up to 6 years. In addition, Persons can be detained courteously accountable, in spite of whether the action is intended for money, intended for actual harms or lost earnings, or intended for legal damages up to $150,000 for each violated copyright (Beal, 2010). In this scenario the Canadian Conservative regime nominated an alteration to the online music Copyright Bill (C-61) during the year 2008. This online music Copyright Bill would have completed evading the entire digital locks unlawful, as well as would observe legal damage award of $500 up to up to $20,000 for each case intended for music downloads, along with other transforms. The government who listed the bill was beaten prior to the bill turned out to be law-making, however (Beal, 2010). From the analysis of all the above mentioned laws along with legal actions we can assess that the application of some strict and tight security for the Napster Business is really necessary. In case of any security breach someone can damage the business records and can take the business to some legal activities and issues. Privacy Issues The business of Napster is based on the online customer data and recording some personal information regarding the customer. This becomes further complicated when business deals with online payment system through credit cards. At this time the overall case becomes highly problematic when customer information is used in a wrong way or hacked by anyone. This section will assess and analyze two main issues that are the online privacy and security for the Napster business. In this scenario we need to be more conscious about the protection of the user data placed at the business website and as well for the possible breaches that might occur to the business databases and customer records. This can engage taking some technological actions and also implementing some sort of effective privacy policy to business website (Ghosh & Swaminatha, 2001) and (Curphey & Araujo, 2006). References Beal, V., 2010. When Is Downloading Music on the Internet Illegal? [Online] Available at: http://www.webopedia.com/DidYouKnow/Internet/2004/music_downloading.asp [Accessed 20 December 2010]. Byzalov, D. & Shachar, R., 2004. The Risk Reduction Role of Advertising. Quantitative Marketing and Economics , 2(4), pp.283-320. Curphey, M. & Araujo, R., 2006. Web Application Security Assessment Tools. IEEE Security and Privacy, 4(4), pp.32-41. Delloway, G., 2010. The role of advertising in modern world. [Online] Available at: http://hubpages.com/hub/The-role-of-advertising-in-modern-world [Accessed 20 December 2010]. Ghosh, A.K. & Swaminatha, T.M., 2001. Software Security and Privacy Risks in Mobile e-commerce. Communications of the ACM , 44(2), pp.51-57. Gorder, D. & Masur, S., 2010. Legal Aspects of the Music Industry. [Online] Available at: http://www.berkleemusic.com/school/course?course%5fitem%5fid=1310779&usca%5fp=t&offer%5fcode=2285 [Accessed 21 December 2010]. Heikkinen, M. & Koskinen, T., 1998. Economics of Artists and Arts Policy: Selection of Papers. Research Reports of the Arts Council of Finland, 22, pp.217-32. Kuosmanen, T. & Viitanen, J., 2000. Advertising as a Signal of Quality in the Popular Music Industry: A Game Theoretical Approach. [Online] Available at: http://www.nomepre.net/timokuosmanen/papers/artisti.pdf [Accessed 20 December 2010]. Maddox, K., 2008. Looking for small-business owners? Try advertising on social networks. Business to Business, 93(8), pp.1-2. onlinemarketingbase, 2010. Modern Online Advertising Techniques Bring Life To Your Business. [Online] Available at: http://onlinemarketingbase.com/modern-online-advertising-techniques-bring-life-to-your-business [Accessed 20 November 2010]. Pandecta, 2010. Free Internet Advertising. [Online] Available at: http://www.pandecta.com/sell.html [Accessed 19 December 2010]. Patti, C.H., 1977. Evaluating the Role of Advertising. Journal of Advertising, 6(4), pp.30-35. Pendleton, E., 2010. Different Ways of Advertising a Business. [Online] Available at: http://www.ehow.com/way_5232214_different-ways-advertising-business.html#ixzz18jVvCftZ [Accessed 20 December 2010]. Spencer, S., 2004. Web Site Legal Issues: Navigating the Landmines. [Online] Available at: http://www.netconcepts.com/legal-risks-of-doing-business-online/ [Accessed 21 December 2010]. Summers, J. et al., 2003. Essentials of Marketing. Australia: Thomosn. Web-Source, 2010. Online Advertising / Web Advertising / Business Advertising. [Online] Available at: http://www.web-source.net/internet_advertising.htm [Accessed 18 December 2010]. Read More