Module : E-Business and Digital Marketing

Please help on below ALL questions :

Q1 (a) : On what basis should marketing managers decide on the communications mix for an e-commerce site ?

Q1 (b) :

Q1 (c) : What are the key decisions when creating or improving an online community

Table for Lifetime value model for customer base for current system Year 1 Year 2 Year 3 Year 4 Year 5 A Donors 100,000 50,000 27,500 16,500 10,725 B Retention 50% 55% 60% 65% 70% cDonations 100 120 140 160 180 per annum D Total 10,000,000 6,000,000 3,850,000 2,640,000 1,930,500 donations E Net profit (at 2,000,000.0 1,200,000.0 770,000.0 528,000.0 386,100.0 20% margin) F Discount 1 0.86 0.7396 0.636 0.547 rate GNPV 2,000,000.0 1,032,000.0 569,492.0 335,808.0 211,196.7 contribution Cumulative $2,000,000.0 3,032,000.0 63,601,492.0 3,937,300.0 4,148,496.7 NPV contribution Lifetime 20.0 30.3 36.0 39.4 41.5 value at net present value Based on preliminary tests with improved targeting, it is estimated that with the new system, retention rates will increase from 50 to 51 per cent in the first year, increasing by 5 per cent per year as currently. It is estimated that in Year 1 donations per annum will increase from 100 per annum to 120 per annum, increasing by 20 per year as currently. Question Using the example of the lifetime value for the current donor base with the current system, calculate the lifetime value (LTV) with the new system. Table for Lifetime value model for customer base for current system Year 1 Year 2 Year 3 Year 4 Year 5 A Donors 100,000 50,000 27,500 16,500 10,725 B Retention 50% 55% 60% 65% 70% cDonations 100 120 140 160 180 per annum D Total 10,000,000 6,000,000 3,850,000 2,640,000 1,930,500 donations E Net profit (at 2,000,000.0 1,200,000.0 770,000.0 528,000.0 386,100.0 20% margin) F Discount 1 0.86 0.7396 0.636 0.547 rate GNPV 2,000,000.0 1,032,000.0 569,492.0 335,808.0 211,196.7 contribution Cumulative $2,000,000.0 3,032,000.0 63,601,492.0 3,937,300.0 4,148,496.7 NPV contribution Lifetime 20.0 30.3 36.0 39.4 41.5 value at net present value Based on preliminary tests with improved targeting, it is estimated that with the new system, retention rates will increase from 50 to 51 per cent in the first year, increasing by 5 per cent per year as currently. It is estimated that in Year 1 donations per annum will increase from 100 per annum to 120 per annum, increasing by 20 per year as currently. Question Using the example of the lifetime value for the current donor base with the current system, calculate the lifetime value (LTV) with the new system