Direct and e-Marketing Essay Example | Topics and Well Written Essays - 1000 words

Direct and e-Marketing - Essay Example One of the basic principles of the Direct Marketing is usage of a database for storing personal customer data and their purchase history. Roll notes that fundamental benefit to the business is that you are able to treat your existing customers in a different way to new prospects and thus create loyalty and maximize profitability. (Roll 2003) So the main purpose of the Direct and e-Marketing for Les Cadeaux Gourmets is to carry out an active strategy and to get more sales from the returned customers. Customer lifetime value (also variously referred to as lifetime customer value or just lifetime value, and abbreviated CLV, LCV, or LTV) is a marketing metric that projects the value of a customer over the entire history of that customer's relationship with a company. Use of customer lifetime value as a marketing metric tends to place greater emphasis on customer service and long-term customer satisfaction, rather than on maximizing short-term sales. (Wikipedia). As Les Cadeaux Gourmets spend some money for advertisement to attract a number of customers, it would be unreasoned to loose them. Calculating customer lifetime value will help company to know exactly how much each customer is worth in dollar terms and therefore exactly how much a marketing department should be willing to spend to acquire each customer. Thus it would be possible to range customers from the most profitable to the least ones and to concentrate the company's efforts on the most profitable customers. Use of customer lifetime value can also help to predict what customers will buy over years. For example, if Mary Smith buys a toy for a 4-year baby in 2005, she will probably order a toy for a 5-year baby in 2006. If Mr. Jones buys bath & body care pieces in March three years in a row, it's possible to make a conclusion that he makes presents for the birthday of his wife and send offering with new products to him in the next March. So Les Cadeaux Gourmets should truck its customers' purchases and use them for planning its advertising campaign. Also the company should monitor customers' responses over time for as long as the relationship with them lasts. Geodemographic profiling uses detailed information based on postcode to match differing lifestyle profiles to the customer database. Postcodes do not resolve down to individual addresses but provide pretty good targeting. Les Cadeaux Gourmets can use geodemographic division of customers into some categories and then offer its goods to each specific category. For example, customers ranking by nationality allows taking into consideration national traditions. Les Cadeaux Gourmets can congratulate customers from Israel with Hanukah, customers from the Middle East with Ramadan and wish other customers Merry Christmas. As a result of this national-specific proposals could be sent to each category. Use of external database with information about postcodes and countries also allows choosing seasonal proposals: in winter there is cold in the US and hot in Australia. Les Cadeaux Gourmets can use this information for advertising of clothes and other season-specific goods. Special databases cover such categories as consumer expenditure, crime statistics, business and employment, and many others. One of the more powerful special databases is called a segmentation system. A segmentation system is useful because it allows users to add another dimension by displaying lifestyle clusters

Finance Project Essay Example | Topics and Well Written Essays - 3250 words

Finance Project - Essay Example Stock options encourage managers to maximize shareholder value. Although stock options were once reserved for upper management, there has been a trend to include more employees. Generally, the future purchase price, or strike price, is equal to the market price of the stock at the time of grant. When an employee exercises options, he or she pays the firm the strike price for the shares, regardless of the then- current market price. Employees usually remain with the firm for a specified period before options vest. Upon vesting, the employees may exercise their options. If an employee leaves the firm, outstanding vested and unvested options are forfeited or cancelled. Options not exercised by a date specified in the option contract will expire. When an employee decides to exercise their stock options, they may either purchase the underlying stock at a discounted price or receive an equivalent cash premium. This transfer from the firm to the employee becomes part of the employee's taxable income for the year. Firms now grant stock options to a much broader range of employees for many reasons. A firm's motivation in implementing a stock option plan includes increased employee productivity, the attraction and retention of valuable human capital, reduction of short-run compensation costs, increased cash flows, and higher levels of book income. Individuals, employers,... Stock options' ultimate value to the employee depends on the future stock performance. Consequently, the stock option value is uncertain at the time of grant. Literature Review Arbitrage pricing arguments can be extended to allow for diversifiable risks. In equilibrium, these risks will be fully diversifiable and have zero prices. Thus every asset can be priced exactly (or approximately) as a linear combination of a relatively small number of common factors. Although this is instructive for introducing basic ideas of arbitrage, aggregation, and diversification, we require a multiperiod framework to capture a range of intertemporal problems. For example, we would like to investigate the term structure of interest rates, complicated multiperiod derivative securities, the dynamics of stock prices, and dynamic hedging strategies. It will turn out that our two-period analysis has laid an important foundation for this analysis. By choosing an appropriate dynamic framework, we can generalize our two-date results, and obtain obvious sophisticated reinterpretations of familiar results. Pastor and Stambaugh (2000) provide further details through an investigation of the portfolio choices of an investor seeking a mean-variance efficient portfolio by comparing the risk based model of Fama, and French (1993) and the characteristic based model of Daniel, K. & Titman, (1-33). They report that there is virtually no difference between the risk- and characteristic-based models, as both lead to similar portfolio choices within the investment universe. (Michael, et.al. 119) While debate continues over explanatory basis of the various multifactor models, the essence of the argument remains the