Internet Marketing & Online Sales

Case Study: Facebook and dynamics

History of Internet
It began in early 1960s in USA, where the US Department of Defense was using it as medium for communicating information on research & development in scientific & military fields. Until its commercial explosion in 1990, it was not considered as a marketing tool. In todays world, it is hard to believe in having organization without internet presence. For Advertisers, There is whole new world of potential customer.

Internet Marketing
Web Marketing, Online Marketing or e-Marketing

Two Components of Internet Marketing : 1) B-to-C [B2C]: It refers to Business-to-Consumer 2) B-to-B [B2B]: it refers to Business-to-Business

Ways to Conduct Internet Marketing

Electronic Presence Display Advertising Online Ads Social Media Marketing Search Engine Marketing E-mail

Advantages of Internet Marketing

Advantages to Customers:
Convenience Information Better price Less Hassles

Advantages of Internet Marketing

Advantages to Marketers: Audience sizing Quick Adjustment to market conditions Lower Costs Building Customer Relationship Global Markets

Limitations of Internet Marketing

Limitation of Examining the product Problem of delivery Problem of Confidence Problem of payment

Internet Marketing v/s Traditional Marketing

Online sales

ONLINE SALES
It is a form of electronic commerce whereby consumers directly buy goods or services from a seller over the Internet without an intermediary service The major online sales examples are Amazon, EBay , Infibeam, Flipkart, Naaptol and Letsbuy .

Advantages of Online Sales

Online sales is convenient Online sales helps in information and review Online sales helps in price and selection

Disadvantages Of Online Sales

Fraud and security concerns
Lack of full cost disclosure Privacy Hands-on inspection

 Flipkart is an Indian e-commerce company headquartered in Bangalore, Karnataka Launched in 2007; 5 years ago Created by Sachin Bansal and Binny Bansal 2007 - sold 1st book on Flipkart.com 2010 - added catalogue media & mobile phones & accessories 2011 - cameras, computers, pens & office supplies, computer accessories, home and kitchen appliances, personal care, health care, gaming consoles, audio players and televisions

STRATEGIES
They started it as a small business. Within 4 years flipkart is established and grown as trusted online shop with millions of turnover now. The secret behind their success is simply hard work and willing. The site is easily usable and good looking. They understood that too be successful in India, you need to be the God of Distribution An excellent marketing strategy by flipkart marketing team to increase the sales.

STRATEGIES
They have diversified their product categories, combine that with the cheapest prices on almost every product Flipkart offers Credit and debit card paying system. But interestingly 30% of order placed in cash on delivery system. Cash on delivery make sure no scam or harm in flipkart. Flipkart's reported sales were Rs. 4 Cr in 2008-09, Rs. 20 Cr in 2009-10 and Rs. 75 Cr for 2010-11. In FY 2011-12, Flipkart is set to cross the Rs. 500 Cr. In October and November 2011, Flipkart acquired the websites Mime360.com and Chakpak.com.

STRATEGIES
Speaking on their expansion plans for 2012 and in the next couple of years, Bansal said, As far as the future is concerned, we will look at bigger investments in our supply chain and technology. This should result in larger warehouses and increased automation of our processes.

SOCIAL MEDIA MARKETING

WHAT IS Social Media Marketing ?

Social media represents low-cost tools that are used to combine technology and social interaction with the use of words. These tools are typically internet or mobile based. A few that you have probably heard of include Twitter, Facebook, MySpace and YouTube.

Social Media Marketing

To create an interactive on presence Important & To decide Engage & Active

Which Social Media Networks are right for business: Twitter LinkedIn Facebook Google +

The Role of Social Media Marketing

Way of Communication
Provide an Identity Create relationships

Associate ourselves

YouTube: Social Media Marketing via Video

YouTube has several categories

To determination of what category your product Value & Interaction

Facebook

What Is Facebook?
Facebook is a social utility that connects people. Anyone can join Facebook. Facebook users meet and connect with people and businesses that interest them. People use Facebook to keep up with friends, upload photos and share links and videos.

Facebook Revolution
1 in every 13 people on earth is on facebook. If facebook were a country it will be worlds 3 largest . In 20 minute 1484000 events are posted . In 20 minutes 13,23,000 photos are tagged . In 20 minutes 1 million links are shared . 60 million facebook status updates takes place every day. People spends over 700 billion minutes per month on facebook. There are more than 250 million active users accessing facebook through there mobile devices .

 To reach 50 million user : I. Radio took 38 years II. TV took 13 years III. Internet 4 years IV. IPod 3 years V. Facebook add 10 million users less than 9 months . Facebook tops the chart in generating traffic on internet all over the world . There are real 1.5 Million farmer in world but facebook has 80 million Farmville farmer.

Facebook is fad
Lady Gaga, Justin bieber , Britney spears have more followers than country like Sweden , Greece , Israel , North Korea ,Australia, Chile. 1 in 5 divorce are blamed on facebook . Facebook has overtaken the pornography activities on the web. Babies in Egypt are named after facebook. 70% of local business use facebook for marketing. This is called revolution. We will no longer search for products and services they will find us through social media.

Why Should I Put My Company on Facebook?

Create Brand Identity on Facebook. Encourage people to share your brand with their friends. Refer customers to your company Facebook page. Update all your fans with one message quickly and easily. Upload promotional videos and share them on your site.

Why Facebook Advertising Works

Reach more than 850 million active Facebook users Generate demand for your product with relevant ads Form relationships with your target market with the targeting abilities of Facebook advertising Only reach the users you want to reach by specifying: Country, State, City, Gender, Age, Interest keyword, And more!

Facebook Insight

How facebook Insight help

Facebook insight is an application ,which is available to those who have there ads on facebook or own a page. Facebook insight has became a powerful instrument to achieve operational excellence & decision making. This application is easy to use , reliable . Facebook insight help to take strategic decision related to business. Facebook Insights tagline : Stop Guessing Get the Facts.

SWOT Analysis

Strengths
Currently the Market Leader in Social Networking Largest social network ever, by far A platform for millions of applications, including Zynga Copycats include Companies like Google Has a wide audience - Close to Billion active users Household brand name Highest quality of workforce Has video chat Corporate Business Partners Free Communications Global (NOT IN CHINA) Diverse sources of Revenue

Weaknesses
Liabilities regarding bugs and problems that users face when operating the website Don't get real answers to your problems, have to figure out problems based on FAQs Lack of ability to customize page Flash animation banners are distracting and need to be positioned differently so it won't get in the way of the user

Opportunities
Become a default address book Advertising impact will be an opportunistic approach in reaching target markets globally Way of showing consumer behavior for businesses A way of drawing people into stores by offering promotions etc. to them via the Facebook page Businesses can collect user data through polls and surveys Buy/sell via Facebook marketplace

Threats
New entrants into the industry Privacy settings- leak millions of photos a year Spamming Users get bored easily when using applications and programs(one time usage) Other competitors- twitter

Research

COMMUNICATE WITH CURRENT FRIENDS 9%

USE OF FACEBOOK

PASS TIME 11%

COMMUNICATE WITH PAST FRIENDS 24% CHECK OUT WHAT OTHERS ARE DOING 21% CHAT 18%

UPDATE PROFILE 17%

48% 50% 40% 30% 20% 10% 0% Less than 1 hr

32%

20%

1 -2 hr % use

More than 2 hr

TIME SPENT BY USERS

7%
36%

AGREE NEUTRAL DISAGREE

57%

WILL YOU BE SAD IF FACEBOOK SHUTS DOWN ?

ANALYSIS
AVERAGE FRIENDS:- 200 POST PICTURES OF :- OWN, FRIENDS. SECURITY :- 76% ALLOW ONLY FRIENDS TO SEE THEIR PROFILE. BAD EFFECTS ON SOCIETY:- 26% 1.YOUTH WASTING MORE TIME. 2. MISUSE OF PICTURES. 3. EXTRA-MARITAL AFFAIRS. 4. INTEREST IN OTHERS LIFE.

COMPETITORS
ORKUT:- LAUNCHED ON JANUARY 24,2004. POPULARITY FADED IN 2011. TWITTER:-LAUNCHED ON JULY 15, 2006. USERS:OVER 350 MILLION. LINKEDIN:-LAUNCHED ON MAY 5, 2003. USERS: 150 MILLION. GOOGLE PLUS:-LAUNCHED ON JUNE 28, 2011. USERS:100 MILLION

Video

Hope you enjoyed this presentation

Questions?