Professional Documents
Culture Documents
On
The study of reach of DIGITAL
MARKETING IN INDIA
Submitted in partial fulfillment of
MASTER OF BUSINESS ADMINISTRATION (MBA)
Conducted by
APJ AK TECHNICAL UNIVERSITY, LUCKNOW
1
ACKNOWLEDGEMENT
The work done under the title "A RESEARCH REPORT ON REACH OF DIGITAL
MARKETING IN INDIA" represents not just my efforts to realize the goal of learning &
number of people.
Management Lucknow and My Mentor Dr. Ragini Johari for giving me this golden opportunity
to do this wonderful project. It helped me in doing a lot of research and I came to know about so
I am thankful to all the people who have shared their knowledge and cooperation towards my
project.
2
DECLARATION
I SUDHIR KUMAR GUPTA hereby declare that this project report entitled “A study on The
Reach of Digital Marketing in India”, submitted by me, under the guidance of Dr. RaginiJohari,
HOD, of ManagementDepartment, of AnsalTechnical Campus,Lucknow is my own and has not
been submitted to any other institute.
Candidate’s name
3
TABLE OF CONTENT
4
EXECUTIVE SUMMERY
This project says about reach of digital marketing in India. The main purpose of this project is to
aware the people of the modern concept of digital marketing which is cost effective and time
saving concept.
Under this project I have described the concept of marketing, digital marketing and digital
advertising. I have described about the marketing mix, 7P’s of digital marketing, types of digital
advertising. I have given the example of dell and I pod Touch Company about how they used the
The USP of this project is the case study about the companies namely; DELL and I POD
Under this project I have tried to study about the digital marketing in India and its effect, the
importance of digital marketing in the growing world or advanced world. Anybody reading this
project will surely get an insight of digital marketing concept and its growing importance.
5
INTRODUCTION
MARKETING
Marketing Spelled Pronunciation mar kiting which means:
1. The act of buying or selling in a market.
2. The total of activities involved in the transfer of goods from the producer or seller to the
consumer or buyer, including advertising, shipping, storing, and selling. At the beginning of the
century, social life was mostly local. It was followed by a period in which commodities were
produced on a mass scale. Consumer Marketing operated on mass marketing principles and
business primarily concerned itself with how to build the best sales force. At the end of the
century, there is an emerging global culture. The major driver of these changes is technology.
Technological change has moved steadily back focusing on the individual. These changes shape
the possibility and conduct of business. Marketing is especially tied to communication and
transportation revolution. As the tools and reach of marketing increase, the job and
responsibilities of marketers have evolved with them.
PHILIP KOTLER
Philip Kotler formalized this evolution with his book "Marketing Management". His key
stages are production, sales and brand management. Each of these is strongly motivated by
technological opportunities, which permit new methods and new opportunities. A fourth stage, a
focus on the individual customer, is also important. As the new technology of the Internet
develops, it reinforces the new marketing emphasis - which in many ways is a return to business
at the turn of the century.
In today’s technology driven world, a new fast paced
digital economy is emerging. Tomorrow there will be
companies that will exist only inside computer
networks. Most business transactions will be made
electronically, directly from the producer to the
consumer, bypassing the supply chain. In the digital
marketing environment, the consumer becomes an
integral player in the development of the product. In
fact, a consumer might build the product himself from
a wide array of parts provided by the Company. It is e-
6
commerce that is changing the way products and services are conceived, manufactured,
promoted, priced, distributed and sold. The reason being that it is much cheaper; it allows vast
coverage and helps in serving the customer better.
7
LITERAURE REVIEW
The purpose of doing research in the area of digital marketing is because it seem huge,
intimidating and foreign. Businesses are looking for clearer picture to start but do not know
where and how to start doing digital marketing. In today’s time, social media channels such as
Face book, Twitter, Google and other social media firms have successfully transformed the
attitudes and perceptions of consumers and in the end helped revolutionized many businesses.
This was done through measurable vast network of customers with trustworthy data with real-
time feedback of customer experiences. It is much more convenient for businesses to conduct
surveys online with a purpose to get relevant information from targeted groups and analyzing the
results based on their responses. Potential customers can look for reviews and recommendations
to make informed decisions about buying a product or using the service. On the other hand,
businesses can use the exercise to take action on relevant feedback from customers in meeting
their needs more accurately. Digital marketing is the use of technologies to help marketing
activities in order to improve customer knowledge by matching their needs (Chaffey, 2013).
Marketing has been around for a long time. Business owners felt the need to spread the word
about their products or services through newspapers and word of mouth. Digital marketing on
the other end is becoming popular because it utilizes mass media devices like television, radio
and the Internet. The most common digital marketing tool used today is Search Engine
Optimization (SEO). Its role is to maximize the way search engines like Google find your
website. Digital marketing concept originated from the Internet and search engines ranking of
websites. The first search engine was started in 1991 with a network protocol called Gopher for
query and search. After the launch of Yahoo in 1994 companies started to maximize their
8
ranking on the website (Smyth 2007). When the Internet bubble burst in 2001, market was
dominated by Google and Yahoo for search optimization. Internet search traffic grew in 2006;
the rise of search engine optimization grew for major companies like Google (Smyth 2007). In
2007, the usage of mobile devices increased the Internet usage on the move drastically and
people all over the world started connecting with each other more conveniently through social
media. In the developed world, companies have realized the importance of digital marketing. In
order for businesses to be successful they will have to merge online with traditional methods for
meeting the needs of customers more precisely (Parsons, Zinsser, Wait man 1996). Introduction
9
OBJECTIVES OF MARKETING MANAGEMENT
TO Increase the percentage of customers who rate service as "excellent" from 80% to
It is important that marketing objectives and marketing plans support the overall
objectives of the business. Below is an example of how business objectives translate into
10
EVOLUTION OF MARKETING
In a lot of ways, Marketing is as old as civilization itself. From Ancient Greece to our modern
days, culture has based its trading and selling upon communication in order to move products
faster than the man next to him. I've always seen it as a concept much like Darwin's "survival of
the fittest" - or what we will call in this case - "the act of persuasion." Man is undeniably always
trying to outshine others, and when it comes to selling, the concept is not far from it.
Nevertheless, much of the philosophies we know today are rooted in techniques and
developments from the Industrial Revolution. Mass production coupled with advancements in
transportation and technology meant that businessmen needed a better strategy when it came to
the movement of goods. With nations applying laws against monopoly, how exactly does one
sell something when one's competitor is producing the exact same thing? Ash, enter the
Corporations became aware of the need of individuals that would study markets and consumers -
its behavior patterns and steps to be ahead of the game. What started out as a resource that
11
determined what an organization would produce, has transformed into a science that coordinates
why, when and how much of a good will be manufactured and where it will be sold. Companies
went from inward to outward thinking, and our contribution has never been as clear as it is today.
There have been major stages in the history of marketing, which are:
The Trade Era: Production consisted in handmade goods that were limited and generally
The Production Orientation Era: Enter the industrial age. Since goods were scarce,
someone else would want to buy it. This orientation rose to popularity due to shortages in
the market, hence creating the foundation of Jean-batiste Say's famous remark: "Supply
The Sales Orientation Era: After the Industrial Revolution, competition grew and focus
turned to selling. Marketing, branding and sales became an important pillar as outputs
The Marketing Orientation Era: From the second half of the 20th century onward, the
saturation of markets led companies to bestow upon marketers the opportunity to perform
professionals were involved in what the company would produce its distribution channels
and pricing strategy. Employees within an organization were also motivated to acquire
marketing knowledge, which set the grounds to clients obtaining a general brand
experience. But wait, there's more... According to recent publications, two new eras have
12
The Relationship Marketing Era: The focus of companies shifts towards building
customer loyalty and developing relationships with clients. Authors such as Don
Peppers, Martha Rogers and Philip Kotler” were instigators of the importance of creating
bonds, considering that "the cost of attracting a new customer is estimated to be five
1997)
with clients. Businesses are connected to current and potential customers 24/7 and
engagement is a critical success factor. Consider how much marketing has changed in the
last century and will continue to shift as channels of communication, production levels
and a society alter. As markets expand and new marketing platforms emerge, the science
and practice of this profession is being transformed by the minute. What we consider
today to be the fastest way to reach our customers might be obsolete tomorrow. Therein
13
DIGITAL MARKETING
Digital Marketing promoting products and services using digital distribution channels to reach
consumers in a manner relevant, personal and cost-effective. Digital marketing includes many of
the techniques and practices contained within the category of Internet Marketing. More, it
extends beyond this by including other channels with which to reach people that do not require
the use of the Internet. As a result of this non-reliance on the Internet, the field of digital
marketing includes a whole host of elements such as: mobile phones, SMS and MMS, display
and banner ads, digital outdoor. In our present days, digital marketing covers more of traditional
marketing areas such as Direct Marketing by providing the same method of communicating with
an audience but in a digital way. This marketing method is more effective when a marketer
There are two different forms of digital marketing, each of which has its pros and cons, the most
14
Pull digital marketing involves the user having to seek out and directly grab (or pull) the content
while push digital marketing involve both the marketer (creator of the message) as well as the
recipients (the user), the marketer having to send (push) the messages to the users (subscribers)
15
OBJECTIVES OF DIGITAL MARKETING
Increasing sales or leads is a top level digital marketing objective for many businesses because it
improves revenues and is easy to measure. Using key performance indicators (KPI), you can then
benchmark your progress towards achieving your objective and you can track this in your
spreadsheets. An example of a SMART objective would be: “Increase sales by 10% from
existing customers by Dec 2015”
This is another digital marketing objective that can be tracked in Google Analytics. By setting up
goal tracking in Analytics, you will have reports on conversions for your traffic sources,
campaigns, keywords, landing pages, locations and so on. With this data you can then track a
conversion rate objective like: “Improve organic traffic conversion rate by 25% by Nov 2015”
16
3)Percentage of return visitors:-
The New vs. Returning visitors is a metric that is available in Analytics and it is easy to track.
Knowing how many visitors return is an important objective because it helps you see how
effective your business is at visitor and customer loyalty .This helps you to create a specific and
measurable objective that is relevant to your specific industry and an example is: “15% of
visitors should be returners by the end of the year”
Organic traffic is natural traffic from the search engine result pages. It is considered as free
traffic and is distinct from paid traffic. Lots of businesses have the objective to increase organic
visitor traffic by achieving high search engine rankings through implementing search engine
optimization.
To achieve this requires making changes to your website that are effective at improving rankings
and one of the important ones is including keywords in the
Bounce rate in analytics is defined as people who enter your site and leave (bounce) rather than
continue viewing other pages. This is an important measure of the quality of your website,
because almost all businesses want their visitors to complete an action like purchase, contact or
download on their websites .The lower the bounce rate the better and many marketers say that a
bounce rate below 50% is good, however that differs from business to business.
17
Advantages and Disadvantages of the digital marketing
18
PULL Digital Marketing
Blog marketing
This activity refers to the fact that certain people, who have gained enough experience or
researchers choose to make their study, ideas, thoughts, reactions and dilemmas public, by
writing either a weblog accessible to everybody or one with restricted access, set for confidential
issues.
Blogs are seen as an authentic, uncensored way of expressing our ego and get to their final
version, ready to be published, a frequent and chronological one, of personal reflections and
favorite web links. A much newer, integrative concept expresses the shift from personal blogs,
made for our ego and personal experiences to those blogs which are used to the purpose of
professional communication.
A blog is a web page with a frequent set of posts on a subject or a variety of subjects, which,
more often than not, contains links to other Internet sites. They are organized in a reversed
19
The best blog audience is, in fact, the very makers of such diaries. Besides the fact that they are
interested in what the others write, pointing that thing out in their own blogs, they also refer to
those posts. The number of bloggers is steadily rising, since software devices come to be more
and more accessible. On-line blogs have witnessed an important evolution lately, up to 72
million, according to a Technocratic study, the Internet search engine specialized in blogs.
In March 2005 there were almost 8 million blogs, whereas in March 2007 their number increased
nine fold, up to 72 million on-line bloggers. Nowadays, 120,000 blogs are designed daily, as
As to the business field, one can benefit from using blogs so as to transmit information on supply
and demand. As a result, both clients and immediate feedback can be won. New methods of
efficient marketing include the making up of some “viral” companies, focused on the customer’s
needs, as well as challenging programs and competitions, which are meant to help them
disseminate further information. Specialists claim the management of a company can learn a lot
by reading blogs. Thus, they can have feedback information as to what their customers and
We honestly believe that blogging can help each core fragment of what makes up a successful
and viable company. The core needs for any business are as follows: decent ideas; a great
product; visibility; a well-trained team of people who work hard to make the company succeed
You also need good marketing, great customer relations, an awesome sales force, decent
customer support, and a host of other factors. But if you have ideas, a product worth selling, a
solid team behind it, and potential customers, the rest will follow naturally.
20
Creating Great Ideas
Every company has a lot of great ideas waiting to come to the surface. The problem with
bringing those ideas to the surface is threefold: giving ideas space to develop, helping ideas get
Often it takes only one person to come up with a great idea, but it may take 100 or more people
to support and implement that idea. If the idea loses support, the company will need another
Great ideas can increase a business’s costs and people power, but they can also increase a
business’s revenue and marketing power. This is why large companies who live or die by their
great ideas employ researchers who spend their time seeking epiphanies.
The challenge for companies who invest in ideas is often that the best ideas don’t get to the top,
don’t get reviewed, or don’t even get considered. This idea barrier could be killing your
company. A truly open and internally viewable idea blog, or even individual employee blogs that
allow people to float new ideas for peer review, should allow the best ideas to rise to the surface
The next challenge is deciding which great ideas get turned into products. Smart companies hire
people who are able to turn a great idea into a great product. These people, often called product
specialists or product managers, know customers, know the market, and know how to deliver
However, to do their jobs well, product specialists need to talk directly to customers. This is
where focus groups, customer demo days, and other customer-listening techniques come into
21
play. Some companies even employ staff evangelists to work one-on-one with individual
We all know cases in which even the most well-intentioned products underperformed. Relying
on a small sample of customers to reflect what the entire world desires is risky at best and
foolhardy at worst. If we can’t ask everyone in the world what they want, we are unlikely to be
able to deliver what everyone truly desires. With blogging, we can ask—if not the entire world,
then at least our entire blog readership, which are probably connected to and/or reading other
Increasing Visibility
Marketing is all about visibility—making the right people aware of the right product at the right
time.
We can say that marketing is about customers, and he’s right. The hard reality, though, is that
often marketing isn’t about individual customers. Often, it’s about creating a global message to
events, and otherwise helping customers spread the word through incentive programs and
contests. Visibility is also sought through media reports, event sponsorship, and interactive Web
sites.
However, these visibility campaigns lack effectiveness on the one-to-one level. Companies
assume that millions of people will be contacted, but only a small percentage of these people will
respond.
22
This method of marketing has its upside, but it doesn’t do anything to create relationships with
Having a Team
One of the best ways to build a great business is to create the team. Great teams will think up
great ideas, build visibility, and spot defects in products, which they will then correct. They also
can fix just about any problem, given the right resources, and is happy to take on just about any
challenge.
Unfortunately, great teams can be difficult to create and keep motivated. Anyone who’s built
successful teams knows that more often than not some particular “X Factor” will make or break
the team: often the ability to find common ground and common interests can be a make-or-break
issue.
The challenge for companies looking to enable these dynamic teams is in figuring out how to
enable employees to connect based on passion. Passion is an important part of any successful
team—without passion, a team will not only find itself quickly in a rut, but it will likely find its
members unable to gel, have fun, or help the company in a meaningful way.
The boost in high frequency band satellite television and IPTV, the fact that broadcasting mobile
services will be the next important trend in mobile communication and the growing popularity of
peer-to-peer sharing of video files, lead to the advent of new advertising patterns, highly
Thus, television is becoming a more and more personalized environment, allowing a clear
perception of the customers’ preferences. As users have more and more control over the type of
23
advertising they want to watch, their opinions will be of uppermost importance, thanks to
technology. The main reason for which television channels should broaden their horizon
advertisers is the customers’ possibility to choose more and more from what they want to watch,
the time of their watching and the device the chosen program would be on.
Specialists in advertising wish the relationship between them and television channels would
change, given the new content broadcasting policy, fighting for the viewer and demand services
which allow the viewer to skip advertisements. As the content already including advertisements
targets mobile phones, brands and entertainment providers have started to appreciate the value of
Another possible business pattern can be the use of these demand services as a means to manage
a research on a faraway market in order to check people’s interest in new products, a very quick
and cost effective way to get the right feedback from would-be customers.
On the other hand, integrating interactivity offered by SMS service within television programs
outside peak hours can lead to significant profits coming from the viewers who pay while
sending messages from their mobile phones, since they want to have fun, personalize products,
Digital interactive television services developed unevenly during the last year. In some countries,
their diffusion rate went beyond 90% by the end of June 2007. Most of the EU members handed
in National
Plans to the European Commission, shifting from analogical broadcasting to the digital one,
having the year 2012 as deadline, some others established terms later than 2012. And still, there
24
are also member states which have not yet handed in the National Plan concerning the shift from
“U” is the first interactive television in Romania and, besides Unite – clubbing and events brand
– and www.utv.ro it is part of the New Trend Media Company, belonging to the UTI Group. “U”
first broadcast in Romania on the 9th of April 2005. The strong points of the U brand are:
attitude, quality music – Romanian and international hits, dynamism, innovation, and, last but
not least, “U” stands for fun. The target audiences of this channel are the 15-29, up to 35 year
olds.
In order to back a marketing system based on Internet, the pay-per-click network (PPC) was
brought into play, and the one developed by Google is a good case in point. The text models on
the right side of the main slide of the application entail two changes in the traditional relationship
between editors
and advertisers: the latter pay only when advertisements are on and the viewers click on them;
the paid research networks draw a distinction between advertisers and editors (advertisers no
longer get space on the editor’s site in exchange of payment for key words).
For a better knowledge of its public the advertisements on Internet (based on software) can
contain further information on: the targeted public, the money advertising companies are willing
to spend to get to that audience rate (including the cost of each click), which sites are accepted
25
PUSH Digital Marketing
Mobile marketing
On a well-developed market, operators have to face the pressure of finding new opportunities for
Mobile services with their unique capabilities and opportunities were exclusively “bundled”
within the mobile operators’ technology network, a “walled garden” controlled by the mobile
operators with limited access provided to others. The mobile marketing created the fertile ground
for existing to new industry players like mobile application providers, aggregators, and enablers.
The discrete application providers and application solution providers (also known as “mobile
ASPs”) are offering exciting and novel technology for a wide array of mobile initiatives and
mobile management systems. The aggregators are providing single-point connectivity with all
The enablers are providing foundation technology, processes, regulations and related support to
the value activities within each sphere. With the controlled and managed opening of the mobile
26
operator’s walled garden, traditional brands, content owners, and marketing agencies are now
Since entertainment and advertising business are overlapping more and more, the idea that brand
marketing should be budgeted for purchasing mobile content has gained ground lately (Roxana
One a, www.comunic.ro). Advertisers have to find new ways of making their brands and
messages known to a public whose expectations are higher and higher, thanks to a boost in
information. The old-fashioned pattern, which meant direct coverage to its customers no longer,
seems efficient, while advertising agencies are interested in entertaining their customers with a
challenging content. At the same time, mobile services providers are, more often than not,
concerned with drawing into more and more customers, all paying for their content. It will all be
each brand’s concern to create catchy advertising content which subscribers would like to save,
Mobile marketing offers an important means for building up cooperation relationships, since
specialists in mobile marketing use SMS text messages and MMS multimedia messages to get to
their users by means of one of the most personal devices, namely the mobile phone.
For almost a century, phones and voice transmissions were connected to networks. Nowadays,
service providers can convert voice calls in small collections of data, which are later sent on the
Internet, offering the same phone experience as traditional phone operators did, with no further
investment in infrastructure. In order to carry on his work, such a provider only needs good
computers, ran by specialized software. Given the circumstances, the Internet will be our new
One can notice this trend both among the newcomers on the market, but also among the already
existing companies, which add voice options to computer devices. America Online, Apple,
27
Google, Microsoft or Yahoo has added voice services to instant messaging users. E-Bay
purchased the pioneer in IP-Skype phoning for 2, 6 billion dollars. More than that, Skype, whose
technology allows vocal calls for prices representing a small fraction of traditional services costs,
Mobile phones have endless uses within the current socio-economical background, thanks to
their technical advantages, while their providers incorporate as many entertainments, commercial
and media options in their devices. Here are some of the main aspects defining the various uses
of mobile phones
The best thing about mobile marketing is that, unlike mail and e-mail, people tend to read
messages
from their mobile phones: 94% of messages are usually read, within an hour from their
One of the first ways in which mobile phones are used by the specialists in marketing is with the
“ambush” type of advertising, street advertising, since the users passing by posters in the street,
for example, will get messages on certain events and advertising activities. Mobile phones have
Nowadays, advertising campaigns on mobile phones have only come into existence, usually
asking their users to send a text message to a number code. In exchange for that, they get
Since advertising campaigns are interested in exploiting the new social and technological
phenomena
28
to its full, such as blogging and in getting further images for new marketing patterns which
mobile phone users would welcome, provided they were promoted according to their ability of
The leader in technology, Japan, whose 90% of the population owns a mobile phone, has got
used to the technology based on the so-called QR (“quick response”). They are very similar to
code bars, only that they are square and contain much more information (www.imagoo.ro).
These codes connect them to web sites, just like an underground chart, so that the user does not
have to type the web site on the tiny keyboard of his mobile phone.
Commercial communication
Mobile phones have already been widely used by companies for commercial communication or
advertising mechanisms. The latter encourage users to send SMS messages or offer call tones
and music in exchange of sending through SMS the codes from various product packs (coffee,
screens, in a well-thought system encouraging the use and usage of 3G mobile phones.
Consequently, mobile phones should become a means of showing loyalty to their clients at a
The fidelity card, given out when subscribing to a loyalty program can easily be replaced by the
mobile phone, with great benefits for both company and user. The necessary information about
the buyer’s behavior and the things purchased is collected at each card use.
After receiving a code on the mobile phone, the customer can purchase things, which
presupposes code identification and validation, performed by a central data base. As a result of
his purchasing, the user can get fidelity points, which allow him further advantages.
29
Mobile ticketing is a new form of electronic commerce, which allows customers to buy, book,
get and check tickets no matter the time or the place. By mobile ticketing, mobile phones become
an access ticket. Potential applications include: events (concert, theatre, and museum), transport,
When the customer books a cinema ticket through on-line ticketing services, it is transmitted to
him as a 2D code on the mobile phone, and it can be later used as entry ticket. The code is
presented at the entry check point and authenticated by means of a special device.
Mobile payment represents that type of payment by using the mobile phone at the outlet store
instead of credit or debit cards. This system allows for flexibility and easy use. The user goes
shopping and he is going to pay by means of a mobile phone. The bank gives the customer a
personalized code for acknowledgment beforehand, which will then be scanned, while the user’s
Electronic vouchers can be used for special offers, catchy promotions, discounts or other such
things a printed voucher stands for. Electronic vouchers are distributed through Internet, e-mail
or SMS and can be printed at home or just saved on the phone. Vouchers can contain a validity
term for advertising programs set in time. The customer in question gets an SMS containing the
2D code with information on discounts, which stands for a virtual voucher for the shops under
promotion.
The emphasis placed on communication shows that mobile content industry and the broadcasting
one are well aware of the importance of new platforms, such as mobile television and IPTV.
Content makers and the ones that broadcast it need to find out how to better “sell” their product.
30
Both industries consented to the idea that a content especially made for mobiles is to be
preferred. South Cornea and Japan are among the first countries which adopted mobile
television, but the European and North American markets are not far behind
(http://news.softpedia.com).
Since there is an increase in both number and type of mobile television devices, the content
industry needs a simplified technique of format adjustment more and more. Just as television
advertisement and music videos use techniques different from those used by the cinema, films
and video productions are produced in different versions for the various types of mobile devices.
The content has to be divided according to the device and produced into a new version.
Text messaging is an efficient means for television, since it promotes interactivity and creates
addiction. Thus, text messaging campaigns gain more and more ground: they are used in live
sports events, films, breaking news etc. Such campaigns are backed by marketing agencies since,
on condition they are well made, they give television channels key elements concerning the
targeted audience, vital for the already adopted strategies. Moreover, these campaigns are
important for the wireless operators, since respondents pay a small attendance fee to take part in
such campaigns, while operators get a high percentage of that fee (Roxana One,
www.comunic.ro).
Specialists in mobile marketing and text messaging companies claim that the profits of financial
supporters of such a company depend on the way they are put into practice, which means that its
local supporters will not get back their investment so easily, as compared to famous networks
which have a more numerous audience. This drawback can be fought back by identifying some
sponsors for text messaging companies, which would lead to further profits.
31
In this field one can also notice the expansion in the services provided through the advent and
more frequent use of multimedia messaging, especially for video content broadcasting. Since
messaging campaigns become more and more popular, their supporters believe that this
expansion to the premium range can become an efficient marketing tool and a potential profit
Multimedia messaging
This modern form of transmission of information allows offering services such as entertainment,
news, sports events, video games, while also being a personalized marketing tool with immediate
response, which facilitates communication with its customers. Based on the infrastructure of
mobile phoning operators, multimedia messaging gets a positive feedback from its users, even if
problems such as service knowledge, education, prices etc. can still arise.
Even if the service is appreciated, technical problems can still come out, meaning that a single
format for marketing messages which can be sent to all its users cannot be yet developed, due to
performance differences between mobile phones, since only some of them can receive both SMS
and video messages. Moreover, many of those having phones with MMS options can’t grade
their phones to get MMS messages or simply don’t want to access such messages. For this very
reason, one cannot be certain that the messages created and transmitted by the marketers reach
RSS technology (Really Simple Syndication) represents a format especially created to broadcast
the latest news or reports. This means automatically following the changes within a site, its
access being unnecessary if wanting to check if new information was introduced. Nowadays,
32
there are reading applications regarding flows of news in RSS format which let users know, at a
specific time, if there is new information or news on the sites they selected beforehand. Thus,
users can choose the sites they want to watch, and if those sites have the ESS option on (more
and more sites are adopting it), by means of a small program, known as “aggregator”, users can
be alerted whenever their favorite sites come up with something new. RSS technology brings
forth a radical change in the way people can access information. If, so far, the user had to access
information directly (search for a certain site and surf till he got the information needed), RSS
technology allows for rapid spread of that news which is relevant and up-to-date. Some believe
that RSS is the future trend in accessing information, since it has already raised a lot of questions
concerning the future of traditional mass media. This phenomenon has started to be widely
accepted in Romania also, since newspapers such as Ade PC or CHIP already use flows of news
in an RSS format. News portals in RSS format have started to be used such as the one designed
on the web site http://rss.mioritic.ro/, where almost 600 flows of news in RSS format are
available from Romanian sites, either info pages, newspapers, personal diaries, clubs, forums or
* As the market is under constant development, the business practices, under development they
will help remove some obstacles, while others might need special measures from industrial
companies and legislation in order to give their users, content providers and hardware industry
The discovery and adoption of innovative methods in doing business is more and more obvious
in Romania, its market is rapidly catching up with the lagging behind from a technological point
of view, but success is finally assured thanks to the customers’ desire to purchase such new
33
DIGITAL MARKETING STRATEGY MIX
1. Lead Generation
3. Customer Communication
This diagram shows you how to align some of the most common internet marketing strategies to
34
PRIORITY ONLINE MARKETING TACTICS
It is important to choose the tactic with the highest priority. If want to generate leads quickly, the
tactic to use is Google pay per click. Looking at the lead generation column in red, you see that
Google pay per click is the best choice to generate leads. This is because, in most cases, we can
Organic Optimization
Once we have learned the best keywords for Google from pay per click, we can then use the
keywords to search engine optimize your website. Search engine optimization helps you create
an asset of your website and as you get higher rankings you rely less on paying Google for your
advertising.
Content Marketing
When it comes to content marketing, this is where we write articles and add them to your
website; they are how-to articles and informational articles. This is a powerful way of marketing
and has many benefits. Content marketing is definitely the best way to be seen as a thought
leader and delivers more relevant content for search engines to index.
Social Media
We can see that social media also provides a great way to build brand as well as communicating
with customers/prospects. Social media can include blogging, video syndication, participating in
Other Considerations
Everyday new and amazing tools and technologies are introduced to help business leverage the
Internet. On the rise is Mobile Marketing, for example. Application of on-site conversion and
35
measurement tools can help productivity, too. Enhance your site with Live Chat and Click-to-call
features. Users love the instant interaction and sales will show it.
So use this diagram to help you prioritize the use of your digital marketing budget. Share this
with your management team to show the type of tactics that you can use to help the support your
business objectives for the year. As experienced Internet Marketing Consultants, our team can
help you minimize trial & error by customizing your strategic mix based on your competitive
36
7 p’s OF DIGITAL MARKETING
The four P's - Product, Price, Place and Promotion have long been associated with marketing,
but things have changed on the Internet. So along with a change in the nature of the four P’s
there are three new P’s which are relevant to the digital marketer: Presentation, Processes and
Personalization.
1. Product:
Product on the Internet usually changes form online, and the user experiences it
electronically, in the form of text, images and multimedia. Physical goods are usually
presented in the form of a detailed online catalogue that the customer can browse
through. Technology allows the user to virtually touch and feel the product on the
Internet - rotate it, zoom in or zoom out and even visualize the product in different
configurations and combination. Content and software are two avatars of digitized
37
products that can be even distributed over the Internet. On the Internet, E-marketing will
be based more on the product qualities rather than on the price. Every company will be
able to bring down the cost of its products and hence competition will not be on price. It
will rather be on the uniqueness of the product. To be able to attract the customers and
retain them, the company will have to provide nouvelle and distinct products that forces
2. Price:
Price has been drastically changed over the Internet. It lets the buyer decides the price.
Also it gives the buyers information about multiple sellers selling the same product. It
leads to best possible deal for the buyers in terms of price. Pricing is dynamic over the
Internet.
3. Place:
Place revolves around setting up of a marketing channel to reach the customer. Internet
serves as a direct marketing channel that allows the producer to reach the customer
directly. The elimination of the intermediate channel allows the producer to pass the
4. Promotion:
Promotion is extremely necessary to entice the customer to its website, as there are
currently more than one billion web pages. Promoting a website includes both online and
offline strategies. Online strategies include search engine optimization, banner ads,
multiple points of entry, viral marketing, strategic partnership and affiliate marketing.
Presently, the cyberspace is already cluttered with thousands of sites probably selling
similar products. For the customers to know of the Company’s existence and to garner
38
information on the kind of products or services that the company is offering, promotion
has to be carried out. There can be traded links or banner advertisements for the same.
Also the traditional mediums like print, outdoor advertising and television can be used to
spread awareness.
5. Presentation:
The presentation of the online business needs to have an easy to use navigation. The look
and the feel of the web site should be based on corporate logos and standards. About 80%
of the people read only 20% of the web page. Therefore, the web page should not be
cluttered with a lot of information. Also, simple but powerful navigational aids on all web
pages like search engines make it easy for customer to find their way around.
6. Processes:
Customer supports needs to be integrated into the online web site. A sales service that
will be able to answer the questions of their customers fast and in a reliable manner is
necessary. To further enhance after sales service, customers must be able to find out
about their order status after the sale has been made.
7. Personalization:
Using the latest software it is possible to customize the entire web site for every single
user, without any additional costs. The mass customization allows the company to create
web pages products and services that suit the requirement of the user. A customized web
page does not only include the preferred layout of the customer but also a pre selection of
39
UNDERSTANDING THE INTERNET CUSTOMER
Now to be able to use the seven P’s effectively in order to achieve the predefined goals of any
effective if we understand our customers and their true needs. Before adapting marketing
practices to the Internet, the marketer needs to understand the characteristics of the online
customers. The Net users can be classified into five categories depending upon their intention of
Directed Information Seekers: They require specific, timely and relevant information about the
Undirected Information Seekers: These users require something interesting and useful.
Something that can give them an edge, advantage, insight or even a pleasant surprise.
Bargain Hunters: They are of two kinds: One who look for free items on the internet and other
Entertainment Seekers: They see the Web as an entertainment medium of vast breath and
potential and want to explore the medium before the mass gets there.
Directed Buyers: They want to buy something - now. They are sure what they require and just
40
BRAND BUILDING ON INTERNET
Companies that have powerful brand awareness on the web all have sites that help
Consumer demand and expectations are forecast to drive made-to-order or customized products
with rapidly shrinking lead times. Products are configured, as customers want them to be and
provide a high level of reliability, excellent quality, and longer life spans. For e.g. ‘Dell’
computer (www.dell.com) has become a leading company in selling computers because of the
The on-line customer is not a fickle customer, but he is a risky proposition nevertheless. This is
because all his online experience will influence consumer perceptions about the brand. If a
consumer buys a product from a retailer and is involved in an unhappy purchase experience at
the store, he will punish the store. But if the same experience were to occur to him at the
company’s web site, the consequences would be disastrous for the company if he were to share
41
his experience though different user communities using a combination of chat rooms and
electronic mails.
The transformation being brought about the Web revolution is not limited to just the consumer.
The last few years have seen a flurry of suggested business models for doing business in the
Internet era. Will the Internet era signal the death of the retailer? Or will a new intermediary
come into existence? Technological innovations have made possible two interesting
developments - the Choice board system 2 and the Vertical Portal. Choice boards are essentially
design tools and conduits of information, companies that produce the products need not control
them. Dell uses a Choice board system to sell its computers but there are others like Point.com
that uses a Choice board to help customers research and buy wireless phones and accessories.
The market information that a Choice board collects about customer preferences is absolutely
enormous and if the manufacturing company does not control it, the site offering the Choice
board can emerge as a powerful intermediary. Vertical portals armed with sophisticated search
engines, which specialize in a particular industry or product category, and provide customized
information and promote online community development are the next emergent intermediaries.
The sophistication and range of information collected on customer preferences will drive
emergent business models. The Web will thus facilitate the transformation of the companies
42
CRICITAL SUCCESS FACTOR OF DIGITAL MARKETING
Having observed the evolving paradigms of business in the Internet era, there are five critical
Attracting the Right Customer is the first crucial step. Rising digital penetration would mean that
the number of customer visiting particular sites would inevitably go up. While the number of
are the most profitable in terms of revenue transactions and who are the customers who generate
the maximum number of referrals. Here again it is important to note that the majority of online
customers are not seeking the lowest price. Rather they are seeking convenience above
everything else. The power of customer referrals has never been so enormous, since word of the
mouse spreads faster than word of the mouth. E-Bay attracts more than half of its customers
through referrals. Not only do referred customers cost less to acquire than those brought in by
advertising or other marketing tools, they also cost less to support since they use their friends
who referred them for advice rather than using the companies’ own technical desk.
43
Delivering Content Value
Delivering Content Value to engage the user’s interest is the critical importance in retaining
(updates of delivery schedules and e-mail responses). Integral to the concept of delivering proper
Ensuring E-Loyalty
Ensuring E-Loyalty is vital to the success of any online venture. This is because acquiring
customers on the Internet is enormously expensive and unless those customers stick round and
make lots of repeat purchases over the years, profits will remain elusive. Contrary to the general
view that Web customers are notoriously fickle, they in fact follow the old rules of customer
loyalty. Web customers stick to sites that they trust and with time consolidate their purchases
with one primary supplier to the extent that purchasing from the supplier’s site becomes part of
their daily routine. The issue of trust is integral to the issues of privacy and security. Companies
like Amazon.com, which command amazing levels of consumer trust, have used a variety of
encryption tools and simple ethical decisions like not accepting money for publishers for
44
E-Learning to facilitate personalized interactions
E-Learning to facilitate personalized interactions with customers has been the biggest
contribution of the Web to the marketing strategists. Customers in traditional bricks and mortar
stores leave no record of their behavior unless they buy something. In the digital market place,
however technology has made the entire shopping experience a transparent process. For
example, if the customer exits the web-site when the price screen appears, he is a price sensitive
consumer. Such minute tracking of customer behavior has major implications for the world of
advertising. The Internet may soon be used as a test bed for testing prototypes of marketing and
advertising campaigns. By monitoring pages selected, click through, responses generated, and
other indicators, the company would be able to discover which parts of a prospective campaign
would work, thus reducing the risk of a potential flop. This would make it possible for the
company to modify its product offerings much earlier than usual in the product life cycle.
Providing Digital value to the evolving consumer through his life cycle
Providing Digital value to the evolving consumer through his life cycle has become possible
because of customized interactions and emerging business models. These models have often
disturbed the traditional status quo and created new rules of business. The sectors where new
business models will emerge or have emerged are the music industry, the financial services
industry, the travel industry, the relating segment and the publishing segment.
45
BENEFITS OF DIGITAL MARKETING
The reason why internet marketing has become so popular is because they provide three major
1)Convenience: Customers can order products 24 hours a day wherever they are. They don’t
have to sit in traffic, and a parking space, and walk through countless shops to find and examine
goods.
3) Fewer hassles: Customers don’t have to face salespeople or open themselves up to persuasion
1) Quick adjustments to market conditions: Companies can quickly add products to their
2) Lower costs: On-line marketers avoid the expense of maintaining a store and the costs of rent,
insurance, and utilities. They can produce digital catalogs for much less than the cost of printing
3) Relationship building: On-line marketers can dialogue with consumers and learn from them.
46
4) Audience sizing: Marketers can learn how many people visited their on-line site and how
many stopped at particular places on the site. This information can help improve offers and ads.
Clearly, marketers are adding on-line channels to find, reach, communicate, and sell. Internet
47
DIGITAL ADVERTISING
Marketing over
so recently has
started being
used
interchangeably with advertising. Now since the explosion of the internet; advertising paradigms
have been constantly changing. The first Web advertisement was placed on the Hot Wired web
site in October 1994. AT&T, MCI, Sprint, Volvo, Club Med, ZIMA were the first to try it out
and the Internet advertising has come a long way since then.
Online advertising is a form of promotion that uses the Internet and World Wide Web for the
advertising include contextual ads on search engine results pages, banner ads, Rich Media Ads,
Social network advertising, online classified advertising, advertising networks and e-mail
marketing, including e-mail spam. Online video directories for brands are a good example of
interactive advertising. These directories complement television advertising and allow the viewer
to view the commercials of a number of brands. If the advertiser has opted for a response feature,
the viewer may then choose to visit the brand’s website, or interact with the advertiser through
other touch points such as email, chat or phone. Response to brand communication is
48
conventional forms of interruptive advertising, the viewer has actually chosen to see the
commercial.
banners etc.
The proportion of advertising to editorial is A web page would be 91% editorial and
high 9%
Does not evoke immediate action Invokes immediate action as you at-least
need
49
to click on the ad
Response to the action is not immediate First response is immediate as when the
user
page
Advertisements are passively received The user has high attention level and
hence
Advertising does not always target a very This can be very focused
focused audience
on
the
are
Difficult to track the exact number of This is quite possible with Internet
Ads are graphic intensive and avoid copy Both copy and graphics are restricted by
Overload the
50
banner size specifications
Advertising: As far as advertising on the Internet goes, all advertisements will serve to attract the
user's attention and draw him to the company, which is advertising. Build brand awareness:
Direct or indirect methods can be used on the websites to build brand awareness of the different
brands of a company. This is where the Internet scores traditional media and methods as
explained below. Stimulate direct action: Visitors to a company's web site should get involved
with the offerings on the site. Valuable customer information can also be captured and tracked
51
Promote its brands: Promotional give - away or contests generate excitement while
simultaneously promoting your brands online, aiding off - line sale. Building a culture around its
Surrogate advertising: This is another means of surrogate advertising of the company, where all
forms of traditional advertising fail. Surrogate advertising can be proved to be positive in case of
Advertising on the Internet has certain unique features that differentiate it from other forms of
Member registration: Member registration is an efficient tool that is used by firms to create their
database. Such a database may be used to design promotional campaigns. Allowing registered
Online opinion polls: Opinion polls are conducted to obtain the responses from users regarding
the firms' products and services besides including topics of general interest.
52
Newsletters: Regular newsletters are sent especially to registered users. These contain
information about current updates on the site and activities being performed by the company.
Contests and sweepstakes: Contests are useful in attracting new users to websites. They may be
for simple things depending on the product or service being advertised. The prizes offered are in
a wide range and usually have the logo of the company and the homepage address displayed
prominently.
Content: The content of the advertisement can be regularly updated with news regarding the
activities of the firm. A fact-based section showing the manufacturing processes of a company
may also be included. The use of multimedia tools can make this more interactive.
53
E-cards: Users send free cards via e-mail from the site of the company advertising the product.
The card prominently displays the logo or the baseline of the brand. The cards may be for
different occasions such as birthdays, festivals, birthdays, etc. These cards are used to reinforce
brand identity. Star endorsers of the brand may also be included in the picture postcard themes.
Downloads: Downloads may include various utilities for the computer such as icons, desktop
patterns, screensavers, themes, etc. Registered users get the opportunity of downloading
Coupons: Coupons are used to promote sales off-line. Sending discount coupons for the products
54
(D)TYPES OF DIGITAL MARKETING
E-mail advertising: Legitimate Email advertising or E-mail marketing is often known as "option
Affiliate Marketing: Affiliate marketing is a form of online advertising where advertisers place
campaigns with a potentially large number of small (and large) publishers, whom are only paid
media fees when traffic to the advertiser is garnered, and usually upon a specific measurable
The online retailer used its program to generate low cost brand exposure and provided at the
55
Contextual advertising: Many advertising networks display graphical or text-only ads that
correspond to the keywords of an Internet search or to the content of the page on which the ad is
shown. These ads are believed to have a greater chance of attracting a user, because they tend to
share a similar context as the user's search query. For example, a search query for "flowers"
might return an advertisement for a florist's website. Another newer technique is embedding
keyword hyperlinks in an article which are sponsored by an advertiser. When a user follows the
Behavioral targeting: In addition to contextual targeting, online advertising can be targeted based
on a user's past click stream. For example, if a user is known to have recently visited a number of
automotive shopping / comparison sites based on click stream analysis enabled by cookies stored
on the user's computer, that user can then be served auto-related ads when they visit other, non-
automotive sites.
Pay per Click: Search engines place your website on their front page and you pay a set amount
per click-through. Sites like Overture also run bids for certain keywords - the more you bid, the
56
higher your site appears on the first page of the search results. Properly run, these campaigns can
Search Engine Optimization: This is an online advertising service provided by many web media
companies. They will look at your target audience, your competitors and the keywords for your
business and optimize your website content so that it has a much better chance of appearing on
the first page of the search results. You will pay a fee to the consultants for this service. Studies
have shown that many searchers prefer to use the "natural" listings provided by the search
57
Sponsorships: Website sponsorship can come in two formats; regular sponsorship where the
advertiser has a space to place the logo and company message, and content sponsorship where
the advertiser has limited control and submits their own content to the site as well as having an
advert on the page. These sponsorships will be for fixed periods, and need to be on targeted
Online Directories: The online equivalent of Yellow Pages, or Industry Directories, these give
you basic or enhanced listings on the website. Your details will come up if your sector, location
or company name is searched for. Enhanced listings will allow users to click-through to your
site. Online directory listings are often offered in conjunction with an entry in the printed version
of the directory.
Banner Ads: Banner advertising was the first kind of advertising ever done on the net. A banner
can highlight your product/service/offer and by clicking on it the user will be taken to your
website, where you can create a suitable landing page to provide his further information. Banner
spaces are usually sold by impressions, or banner views, but it is sometimes sold by click-thru,
when you pay only when the user clicks on the banner. Usually horizontal bars across the top of
a web page, they offer color, graphics and often animation, together with the ability to click
58
Pop-up Ads: These are the small windows that appear when you first get onto a website. Pop-ups
appear on your screen in full, pop-downs appear on the bar at the bottom of your screen and you
Interstitial Adverts: These adverts sometimes referred to as Bridge Adverts, pop up as you move
between pages on a site. You have no choice as to whether you view them or not, although you
59
Floating Ads: These ads appear when you first go to a webpage, and they "float" over the page
for five to 30 seconds. While they are on the screen, they obscure your view of the page you are
trying to read, and they often block mouse input as well. These ads appear each time that page is
They can take up the entire screen, therefore from a branding standpoint, they are much more
60
Unit cast Ads:A uncast ad is basically a TV commercial that runs in the browser window. It has
enriched audio/video content. The ads can last anywhere from 10 to 30seconds. These ads have
ads cannot -- the ability to click on the ad for more information. These ads are getting very
Takeover Ads: Viewers visiting the website will see a large ad when they first come, and then
the continuity is maintained by reiterating the same message throughout the site in the form of
banners, side bars or buttons. The approach works very well for branding because the brand is
visible to viewers throughout the visit to the site. Click-through rates are also high.
61
Consequences
Individuals find themselves with the same possibilities as mayor newspapers, groups start
Weblogs that compete with global content distributors, and online radio stations emerge. The
cost of broadcasting has never been so low. Everybody with a PC and an Internet connection can
not only access all traditional media from all over the world, but also the micro-content added to
the media landscape by individuals. Millions of people have evolved from being mere media
User Generated Content (UGC), also known as consumer-generated media (CGM), refers to any
material created and uploaded to the Internet by non-media professionals, whether it’s a
profile on Face book. UGC has been around in one form or another since the earliest days of the
Internet itself. But in the past five years, thanks to the growing availability of high-speed Internet
62
access and search technology, it has become one of the dominant forms of global media. It is
The promise of UGC is now being hyper-realized with social media. Sites like MySpace,
Face book, and You-Tube represent the convergence of user commentary with video, photos, and
music sharing, all presented in a simple, user-friendly format, allowing participation on a mass
scale.
63
MARKET RESEARCH
Advertisers are expected to spend Rs. 22,500 million in digital advertising in the year 2009 third
only to TV and Print ads, which is around 5257% more than that in the year 2004, compound
percentage increase of 124% over the last 5 years. This is the new age of advertising.
It is true that people have started realizing that internet can serve as a one stop point for all their
panacea for all their requirements. This has led 70% of the ever users to glue themselves to the
Internet and access it on a regular basis. This is an opportunity for advertisers to exploit this
revolution. But, is it the end of traditional advertising? Is digital advertising effective and
efficient compared to the traditional form?? Does it fulfill the basic objectives of advertising
The problem is that, volumes of consumers are online every day for their personal work, but do
they notice the ads, banners etc. displayed on that webpage, most important what is their
recall/remembrance value. What about the reach of online advertising, is it effective across over
all target groups? We have trusted traditional advertising all these years and it’s a proven
medium that fulfills all the objectives of advertising, can one have the same trust for online
advertising…
64
SOCIAL MEDIA MARKETING
The influence of traditional media and marketing have over consumer perception is waning as
people migrate to the variety of social media technologies for entertainment and to share
information with each other. But these social media outlets are more than another channel
through which to deliver messages to the marketplace. Companies like Dell, Microsoft, Nikon
and Nintendo are successfully using social media and marketing strategies to understand and
engage their audiences more deeply – with demonstrable business results. Social media is
making an impact on all aspects of business communications today. Reliance is the latest
In 2006, social media formats like blogs, photo sites and video sites crossed the threshold from
techno-curiosity to become a bona fide societal trend. Consumers by the millions have embraced
these powerful communication tools to post an opinion, share an experience, and join the online
conversation. These conversations affected many companies, some positively and some
negatively, and raised the awareness of the power social media has to influence business results.
Now we are in an era where companies must take action. The reach and influence of social
Communications has always been the fundamental value of the internet to consumers. Back in
the net’s early days, email was the “killer app” that made the Web a “must-have” and continues
65
to be a mainstay of the online experience. Communication activities split the lion’s share of
consumers’ online time with content, and far outstrip commerce and entertainment.
From the earliest UseNet groups to today’s hot video sharing and social network sites, each new
Email was first practical application of the Internet for most people and it was the first word
of mouth accelerator as it enabled people to connect with family and friends instantly,
Usenet groups and discussion boards made it easy for people to find others with similar
interests and consumers learned that the Internet freed them from the limit of geography and
personal connections. The influence of word of mouth expanded rapidly within the severtical
niches.
Consumer review sites used the discussion board format, but focused discussions around
specific products, such as books at Amazon.com. Consumers embraced the idea of reading
book reviews written by other readers and not relying on professional reviewers’ opinions to
66
Blogs freed consumers from the limited membership of discussion boards. Blog sites like
Blogger made it simple for an average Web user to post his or her opinions to the world
.Armed with a browser, basic typing skills, and a few straightforward Web commands,
anyone can publish their thoughts, rants, or daily journal in a few minutes a day.
Consumers soon learned their conversations aren’t limited to words. Digital photography’s
boom introduced people to sharing their creations, first via email then via first-generation
Digital camcorders and audio/video editing programs like Apple’s I Movie became
affordable and user-friendly versions for home users. People were no longer limited to text or
still photos, and consumer-created video site YouTube quickly bloomed to six million users
Social networks like MySpace skew more toward the social end of the social-to-content
continuum. They combine a selection of social media tools like blogs, photo sharing, etc .to
give the author a platform for expressing their passions and preferences, while at the same
time serving as a central communication hub for a group of friends. Early on, bands would
build online fan communities to promote their music; now brands like Burger King, Toyota,
Adidas, and Cingular create circles of “friends” that become brand building hubs.
67
Social Media Transforms Communications into Content
These new tools blur the line between communications and content. Blogs are a natural example
of how content and communications blend into a single experience. Each entry (or “post” as it is
known) is a short article, essay, news item, etc. But bloggers mean to stimulate feedback and
conversation, as readers add comments and links to other blogs to make a point. This interplay
communications can be so influential they end up taking the story in an entirely new direction.
68
Social Media Begins to Impact Brands
One of the most exciting and powerful forms of social media is the video. Videos are the
ultimate expression of creativity since they can “mash up” (all in one) elements and messages
Social media sites like Orkut, MySpace and Face book are usually seen just as places where
people go to connect with friends and find others with similar interests.
Often the discussions can be positive about your products and the experiences consumers have
had with you, but sometimes they can be very negative. On the one hand, this increases the
number of potential critics and they don’t need to have impressive qualifications or credentials to
be influential.
On the other hand, all of these negative opinions are public and searchable, allowing companies
to prepare a response before a story gets wide coverage. Bloggers at top companies agree that
learning about and dealing with negative stories as they emerge is smarter than waiting until they
69
Driving Business Results with Social Media
There are four primary ways companies can use social media to drive business results:
By Monitoring social media, companies can track how their messages are being interpreted in
the marketplace to understand how the company is perceived and to learn how any responses or
message changes should be approached. This will also provide valuable insight into potential
Monitoring also enables companies to track the evolution of known trends in order to quantify
the ones gaining the most attention and acceptance within their target audience.
Measurement provides the quantitative reporting data on the specific issues and buzz driving
media coverage making it easy to demonstrate the impact of PR and marketing efforts.
But social media also calls for a Discovery approach, in which companies learn what influences
are driving the internet discussions in the marketplace. From this, companies can measure the
growth of many.
70
RESEARCH METHODOLOGY
RESEARCH OBJECTIVES
To compare the trust level of traditional advertising and digital advertising (consumers
point of view)
RESEARCH METHODOLOGY
Research design
This is a descriptive research as it will clarify the doubts about online advertising.
It would give us a clear picture on the effectiveness and reliability of online advertising
Data collection
71
Sample universe
Basis of sampling:
50 numbers in all
Sampling Technique:
Judgmental Non Probability sampling can be used to select the individual units for better
productivity of the questionnaire. A well educated person may be able to reason out the questions
72
DATA ANALYSIS {BASED ON QUESTIONNAIRE}
One can clearly make out that consumers perceive advertisements as a source of information and
Attitude towards
Attitude towards Ads, Informative,
Informative
Ads, Creates 35%, 35%
awareness, 31%, Entetaining
31% Creates awareness
Irritating
Attitude towards
Ads, Entetaining, Annoying
25%, 25% Waste of time
Not many people find advertisements to be irritating, annoying or waste of time. This clearly
shows a positive attitude toward them and hence is a good indication for marketers
As from above survey only 35% think digital marketing as informative purpose while only 3%
BREAK?
From above chart and survey done around 30% watch for informative purpose other 11% just
74
Q.3) WHICH MODE OF ADVERTISING INFLUENCES YOU TO BUY/SUGGEST
PRODUCT?
Influencers influence the decision making process of a potential consumer. Influencers can be
In Mumbai (as the target market is Mumbai) we can infer that friends and relatives are the major
Influencers, Social
Influencers Magazines and newspaper
Media-
Blogs,Forums,Socia Influencers,
Magazines and
Influencers, Online l networking sites, newspaper, 17%, Friends and relatives
advertisement, 6%, 8%, 8%
17%
6%
TV Commercial
Online advertisement
As above seen consumer are more influence by friends and relative of 40%
Where online advertisement is only 6% as survey from different consumer is from friends and
relative.
75
Q.4) WHICH MODE OF ADVERTISMENT WOULD YOU PREFER?
Preference, Online
Ads: Banners, Preference
Email, 17%, 17%
Preference,
OOH: Banners,
Preference, TV
Posters, 18%,
Commercials, 34%,
TV Commercials
18%
34%
Print Ads:
Newspaper,Magazines
Preference, Print OOH: Banners, Posters
Ads:
Newspaper,Magazi
nes, 31%, 31% Online Ads: Banners, Email
Again, one can easily make out that traditional form of advertising has an edge over internet
advertising in terms of consumer preference mode of advertising. Traditional mode got over 31%
preferences than that of internet advertising which is a huge margin. The reason for this is same
Consumers would prefer to check out ATL elements in case there is a need i.e. information
76
Q.5) WHICH MODE OF ADVERTISING YOU TRUST?
17%
RECOMMENDATION FROM
36% CONSUMER
RADIO
31% TV
16% NEWSPAPER
The above is the chart for trust level of advertisement medium from consumer’s point of view.
Again recommendation and traditional advertisement are a leap ahead of online mobile and BTL
form of advertising. One can say that Indian mentality towards online form of advertising is still
Initial Conclusion I
One can confidently conclude that consumers still trust and prefer the traditional form of
77
Q.6) I CHANGE CHANNEL DURING COMMERCIAL BREAKS?
I see/check online
Ads, Its depends,
21%
I see/check online
Ads, Never, 79%
When there were only 2 channels which were “Dodarshan”, consumers didn’t have any choice
but the see the commercial ads in between the programs. That time the impression was very high
Now, with more than 250 TV channels, 20 Radio channels, the consumer has lot of options, he
Of course there are people (21%) who change channels during breaks but not always. In fact,
according to the survey there was no one who change the channel each and every time.
Effectively, 79% of viewers will see the advertisement if the ad is attractive and appealing.
Hence there is a probability of .79 of a consumer viewing the particular advertisement (for
78
communication. As it is, it is the second most trusted mode of communication in the minds of
people.
INTERNET?
26%.
11%
Whereas in case of online advertising, around 63% of consumers ignore it completely, i.e. they
don’t even see them and that of 21% see them if they find it to be attractive. Out of that 26%,
11% said that the intension was not to see those ads, but they didn’t have any option but to see
79
These ads either block the view of the content, or appear right in the middle of the page, or keeps
on floating (moving) around which is considered to be very irritating for the consumers.
Effectively, only 6% saw the online advertisement coz they were of their interest or was
attractive. Some said they liked few ads coz of their interactivity and animation effects. This
Trust levels of online advertisements are at the bottom of the list. Hence considering the trust
levels and the effective impression, one can conclude that it is not an effective mode of
communication.
Initial Conclusion II
Even though the reach of internet is much higher than that of other modes, its ability to attract
consumers for awareness creation is very low. Hence comparatively, traditional modes especially
80
Q.8) YOU USE INTERNET FOR?
Internet usage
Internet usage, Internet usage,
Downloading, 14%,Chatting and Social
14%
Internet usage, E- Networking, 18%,
18% Chatting and Social Networking
Commerce, 1%, 1%
Internet usage, Email
Entertainment,
12%, 12% Information
Entertainment
E-Commerce
Internet usage,
Internet usage, Email, 30%, 30%
Downloading
Information, 25%,
25%
81
Q.9) YOU CANNOT LIVE WITHOUT?
From the above survey mostly youngster about 18/25 years of age has selected computer with
internet with50%
It was strange that mo one selected books as no one can live without online sites.
82
Q.10) DO YOU THINK THAT THE FACE OF ADVT IS TRANSFORMING IN TERMS
AD.CULTURAL IMPACT?
Around 60 % have given positive reply on cultural impact such as standard of living, income etc.
Around 40% have given negative answers as they don’t feel any transformation as during survey
i asked people why they are selecting no some said it is not our Indian culture
83
CONCLUSION
Practically it has been proved through the research that online advertising is neither effective nor
reliable as compared to the traditional medium which is Television commercials and print media
i.e. newspapers and magazines. Also, consumers trust the traditional medium more than that of
online and there is a vast difference in their trust levels. Of course, it could be because of the
Indian culture which is different from the western countries that are more into e-commerce and
prefer to buy things online and they trust the internet more as compared to the other forms.
Therefore, Internet advertising is more successful in those countries. All in vain in India, as we
prefer to tangibles the things that we buy. Being collective we go shopping along with family
In the world of digital advertising, click-through is viewed as the primary measure of advertising
effectiveness. This metric quantifies how marketing communication can be directly linked to
immediate consumer action. But, the metric has certain shortcomings; primary reliance on click-
through does not recognize that in most cases consumers who are exposed to advertising over the
Internet may not currently have a need for the products or services being advertised to them.
Additionally, click-through does not quantify the impact that the exposure of the advertisement
has on a consumer’s attitudes and perceptions of the brand being advertised. Advertisers in the
offline world realize that consumers may not have an immediate need to purchase a product or
84
Realizing this aspect of consumer behavior, a common advertising strategy is to build awareness
of a product and form positive associations (Subliminal effect) between that product and a
consumer over time so that when the need arises to purchase from a given category, a consumer
In most cases, users view banner advertisements as a nuisance as they are engaged in other
activities while they are being exposed to the ads. Additionally, we can assume the most people
exposed to an ad do not have the need for the products being advertised at that time. Therefore,
these ads are less likely to be noticed. In order to have an impact on brand metrics, we can
hypothesize that getting a message in front of someone as quickly as possible, before they scroll
away, is of extreme importance. In addition, the presence of a logo, the size of a logo, and the
size of the banner should all have an impact on the banner’s ability to brand.
Applied appropriately, these characteristics may serve as positive reinforcement and therefore
have a positive impact on branding. Conversely, when applied improperly, these ads may serve
Also, the banner could lay a subliminal effect on the consumer which might drive him to buy the
product or create some association with it. Because it is the subconscious mind that plays the
game here. If one can take target this subconscious mind then definitely it can create a positive
impact on branding.
Last word:
Finally I would like to end by saying that even though the internet has opened up a new avenue
for reaching the end consumer; it is still very much an open field. This is true as there is no fixed
85
way or strategy for marketing on the net. It is still very much an arena where ingenuity and
creative thinking very much rule the roost. Thus marketing as usual has not changed, i.e. it is still
86
CASESTUDY
A) Dell Computer
“I just got a new Dell laptop and paid a fortune for the four-year, in-home service. The machine
Is a lemon and the service is a lie. I'm having all kinds of trouble with the hardware:
And there was no stop to it…it gained momentum…and even more momentum…leading to
dedicated haters
The whole thing started with one post. It was followed another, then there were many. DELL
HELL was started. It ruined the sales of Dell computers. The only reason was, Dell didn’t update
themselves with the internet proceeding. It all happened without the knowhow of dell.
Dell learned fast, they opened their blog Direct2dell, which answers all the queries and problems
about anything and everything about the dell laptops. It was followed by Dell Idea
87
Storm, a collaborative blogging site where one can give their own ideas and discuss about
general technology, computers etc. They blogging was internal as well as external for the
overall development of the company and its image. The whole exercise took 3 years to be back
on track.
Learning
This case study gives us (companies) a good reason to be updated with the happening of the
social networking sites. Blogging and forums are the new influencers of today. They are the
lightening to a fire forest. They form the root of the brand image. One needs to keep a track of
88
B) IPod Touch
Credit Apple’s marketing genius for making its latest generation of iPods, the iPod Touch, and
this season’s likely best-seller in the personal electronics category. Launched on September 5th,
2008 the new generation of iPod incorporates the touch screen seen on the phone, and\ many of
the same display and interactive features including Wi-Fi wireless networking and browsing. It’s
a phone without the phone. With many of phone’s popular features and a starting price of $299,
Apple highlights the new iPod Wi-Fi and YouTube features, on their website. Not surprisingly,
in September, the iPod Touch product page was listed among the top performers for its use of
social media. Featured are plenty of videos, including the keynote address by Steve Jobs
announcing the iPod Touch release, video introductions to iPod Touch software and a guided
89
Apple’s strong Universal Search positioning on Google, while providing a popular source for
Apple’s site also includes a “Hot News” section with information on the top downloads in
iTunes and downloadable information for each of Apple’s products. Apple takes no chances
here. RSS feeds are available for iPod and iTunes. Generally, Apple utilizes the social
networking systems and hardware it helped to popularize as a means to demonstrate and further
Social media is now a vital element when releasing a new product. It can draw customers to your
site, explain and exhibit unique features and benefits, answer questions and generate word-of-
mouth sales. As Apple has demonstrated, video ‘tours’ are particularly effective when
integrated with video press events. The same content can be repurposed for a multitude of
applications. RSS feeds are also a great way to keep customers informed and automatically
updated.
When incorporating social media into your marketing mix, remember a few key lessons that
Apple.com and the iPod Touch have taught us. First, make sure your social media features are
placed intuitively, making them easier to find within your site. If visitors can’t find it, or have to
search too hard, they won’t participate. Second, make sure to accelerate your social media efforts
as your business grows. Customers will expect more from you. If your website expands or is
redesigned, expand and redesign your blogs, discussion boards and social tagging opportunities.
Add video content, podcasts, images and customer feedback elements that will build on (and
90
BIBLIOGRAPHY
WEBSITE:
www.google.com
www.wikipedia.com
www.managementparadise.com
www.managementparadise.com
www.bms.co.in
91
ANNEXURE
{QUESTIONNIARE ON DIGITAL MARKETING IN INDIA}
QUESTIONNAIRE NO:
Informative
Entertaining
Creates awareness
It’s irritating
Annoying
Waste of time
2. For what purpose you watch the TV/Radio commercials during commercial break?
Informative
Entertaining
Creates awareness
It’s irritating
Annoying
Waste of time
92
Friends and relatives
TV Commercial
Online advertisement
TV commercials
Radio
TV
Newspapers
Never
Depends on ad
93
7. Do you see/check online ads/mails when you surf the internet?
Sometimes
Depends on ad
Often
Information
Entertainment
E-Commerce
Downloading
TV
Mobile
Books
94
10. Do you think that the face of advertising is transforming in terms of technological and
cultural impact?
Yes
No
{Signature of respondent}
95