A PROJECT REPORT ON

INTERNET AS A MARKETING TOOL

SUBMITTED BY
KARTIK RAICHURA
T.Y.B.M.S. [Semester V]
MITHIBAI COLLEGE
VILE PARLE (!" MUMBAI # $%% %&'
SUBMITTED TO
UNIVERSITY O( MUMBAI
ACADEMIC YEAR
)%%& # )%%'
PROJECT GUIDE
MR. VIKRAM KUMAR
PROJECT REPORT ON
*INTERNET AS A MARKETING TOOL+
SUBMITTED BY
KARTIK RAICHURA
T.Y.B.M.S. [Semester V]
MITHIBAI COLLEGE
VILE PARLE (EST!
SUBMITTED TO
UNIVERSITY O( MUMBAI
ACADEMIC YEAR
)%%& # )%%'
NAME O( PROJECT CO#ORDINATOR
MR. VIKRAM KUMAR
DATE O( SUBMISSION
OCTOBER" )%%&.
DECLARATION
I, Mr. Kartik Raichura , of M,t-,./, C011e2e of TYBMS [Semester V] hereby declare
that I hae com!leted my !ro"ect, titled *I3ter3et /s / M/r4et,32 T001+ i# the $cademic
Year %&&'(%&&). The i#formatio# submitted herei# is true a#d ori*i#al to the best of my
k#o+led*e.
,,,,,,,,,,,,,,,,,,,,,,,,
Si*#ature of Stude#t
[Kartik Raichura]
CERTI(ICATE
I, MR. VIKRAM KUMAR, hereby certify that Mr. K/rt,4 R/,5-6r/ of Mithibai
-olle*e of TYBMS [Semester V] has com!leted his !ro"ect, titled *I3ter3et /s /
M/r4et,32 t001+ i# the academic year %&&'(%&&). The i#formatio# submitted herei# is
true a#d ori*i#al to the best of my k#o+led*e.
,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, ,,,,,,,,,,,,,,,,,,,,,,
Si*#ature .f The /ri#ci!al Si*#ature .f The /ro"ect -o(ordi#ator
[0r. M.1. 2elli#*] [Mr. Vikram Kumar]
ACKNOLEDGEMENT
3irst of all I +ould like to take this o!!ortu#ity to tha#k the Mumbai 4#iersity
for hai#* !ro"ects as a !art of the B.M.S curriculum.
I +ish to e5!ress my heartfelt *ratitude to the follo+i#* i#diiduals +ho hae
!layed a crucial role i# the research for this !ro"ect. 2ithout their actie coo!eratio# the
!re!aratio# of this !ro"ect could #ot hae bee# com!leted +ithi# the s!ecified time limit.
The first !erso# I +ould like to ack#o+led*e is my *uide Mr. V,4r/m K6m/r"
D,re5t0r" MA7 S08t9/res +ho su!!orted me throu*hout this !ro"ect +ith utmost
coo!eratio# a#d !atie#ce. I am ery much tha#kful to them for s!ari#* their !recious
time for me a#d for hel!i#* me i# doi#* this !ro"ect.
1e5t I +ould like to tha#k my !are#ts Mr. S6:-,r R. R/,5-6r/ a#d Mrs. M/;/
S6:-,r. R/,5-6r/ for their stro#* su!!ort a#d coo!eratio#. My cousi# Mr. ###### +ho
o+#s a#d ma#a*es a #umber of +ebsite a#d has bee# i# I#ter#et marketi#* field si#ce
lo#* +as a bo#us for my !ro"ect as he +as al+ays there to *uide me a#d correct me
+he#eer I +as +ro#*. 6e #ot o#ly !roided +ith the i#formatio# but also i#troduced to
fe+ !eo!le +ho +ere +orki#* i# this field.
I am tha#kful to M r. Jeet6 C-,m3/3," CEO 08 J/1/r/m I380te5- (J#I380!" +ho
hel!ed me i# all +ays !ossible. Bei#* a close frie#d of my cousi#, he e#sured that I +as
!roided +ith all the #ecessary i#formatio#.
3i#ally I +ould like to tha#k Mrs. Nee1/ N/,r a#d all my 8r,e3:s +ho hae
hel!ed i# all !ossible +ays i# maki#* this !ro"ect !rese#table.
7ast but #ot the least I +ould like to tha#k t-e A1m,2-t; for al+ays hel!i#* me.
7etter of isit here ..
E<e56t,=e S6mm/r;
I hae u#dertake# the !ro"ect 8I#ter#et as a Marketi#* Tool9 i# order to lear# a#d study
the future of marketi#*. Blah Blah Blah .
Introduction
Evolution of Marketing
$t the be*i##i#* of the ce#tury, social life +as mostly local. It +as follo+ed by a !eriod
i# +hich commodities +ere !roduced o# a mass scale. -o#sumer Marketi#* o!erated o#
mass marketi#* !ri#ci!les a#d busi#ess !rimarily co#cer#ed itself +ith ho+ to build the
best sales force. $t the e#d of the ce#tury, there is a# emer*i#* *lobal culture. The ma"or
drier of these cha#*es is tech#olo*y. Tech#olo*ical cha#*e has moed steadily back
focusi#* o# the i#diidual. These cha#*es sha!e the !ossibility a#d co#duct of busi#ess.
Marketi#* is es!ecially tied to commu#icatio# a#d tra#s!ortatio# reolutio#. $s the tools
a#d reach of marketi#* i#crease, the "ob a#d res!o#sibilities of marketers hae eoled
+ith them.
Kotler formali:ed this eolutio# +ith his book ;Marketi#* Ma#a*eme#t.; 6is key sta*es
are !roductio#, sales a#d bra#d ma#a*eme#t. <ach of these is stro#*ly motiated by
tech#olo*ical o!!ortu#ities, +hich !ermit #e+ methods a#d #e+ o!!ortu#ities. $ fourth
sta*e, a focus o# the i#diidual customer, is also im!orta#t. $s the #e+ tech#olo*y of the
I#ter#et deelo!s, it rei#forces the #e+ marketi#* em!hasis ( +hich i# ma#y +ays is a
retur# to busi#ess at the tur# of the ce#tury.
I# today=s tech#olo*y drie# +orld, a #e+ fast !aced di*ital eco#omy is emer*i#*. I# the
#ear future, it +ould#=t be sur!risi#* to see that there are com!a#ies that e5ist o#ly i#side
com!uter #et+orks. Most busi#ess tra#sactio#s +ill be made electro#ically, directly from
the !roducer to the co#sumer, by!assi#* the su!!ly chai#. I# the di*ital marketi#*
e#iro#me#t, the co#sumer becomes a# i#te*ral !layer i# the deelo!me#t of the !roduct.
I# fact, a co#sumer mi*ht build the !roduct himself from a +ide array of !arts !roided
by the com!a#y. It is e(commerce that is cha#*i#* the +ay !roducts a#d serices are
co#ceied, ma#ufactured, !romoted, !riced, distributed a#d sold. The reaso# bei#* that it
is much chea!er> it allo+s ast coera*e a#d hel!s i# seri#* the customer better.
?ro+th of I#ter#et usa*e a#d <(commerce@
$ccordi#* to the research re!ort of ?oldma# Sachs, I#dia has emer*ed as the seco#d
lar*est I#ter#et market i# $sia after -hi#a +ith A&& millio# users i# %&&'. It estimates
that I#dia# I#ter#et 4sers +ill i#crease by AB&C com!ou#ded a##ual *ro+th rate
D-$?RE from &.' millio# users recorded at e#d of AFFG. $lso the fi*ures of the #umber
of I#ter#et Serice /roiders DIS/sE is e5!ected to i#crease by lea!s a#d bou#ds a#d
March %&&) sees at least B& !riate i#ter#atio#al *ate+ays. $s !er !relimi#ary fi#di#*s of
the 1$SS-.M surey, the total olume of <(commerce tra#sactio#s i# I#dia +as about
Rs.ABA crore i# the year AFFG(FF. .ut of this olume, about Rs.A% crore +ere co#tributed
by retail I#ter#et or Busi#ess(to(-o#sumer tra#sactio#s, a#d about Rs.AAF crore +ere
co#tributed by Busi#ess(to(Busi#ess tra#sactio#s. The surey also reealed that <(
Busi#ess tra#sactio#s i# I#dia are e5!ected to e5ceed Rs.B&& crore duri#* AFFF(%&&&.
.ut of this, about Rs.'& crore could com!rise of retail tra#sactio#s.
3or Busi#ess(to(Busi#ess tra#sactio#s, I#dia# i#dustries are e5!ected to reach o#li#e
!e#etratio# of %C by %&&B a#d GC by %&&G.
The 3i*ure belo+ *ies us a fairer idea of the curre#t +orld i#ter#et usa*e.
ORLD INTERNET USAGE AND POPULATION STATISTICS
As O3 Se> ?%" )%%&.
World Regions
Population
( 2005 Est.)
Population
% of World
Internet Usage,
Latest Data
Usage
ro!t"
2000#2005
% Population
( Penetration )
World
Users %
$fri%a 896,721,874 14.0 % 2&,'(),500 428.7 % 2.7 % 2.5 %
$sia 3,622,994,130 56.4 % &2),0((,)*& 186.1 % 9.0 % 34.2 %
Europe 731,018,523 11.4 % 2)&,2(2,+55 165.1 % 37.4 % 28.5 %
,iddle East 260,814,179 4.1 % 2*,-22,500 305.4 % 8.2 % 2.2 %
.ort" $/eri%a 328,387,059 5.1 % 22&,))+,*'& 107.0 % 68.1 % 23.4 %
Latin $/eri%a01ari22ean 546,723,509 8.5 % )0,(++,0'- 291.31 % 12.9 % 7.4 %
3%eania 0 $ustralia 33,443,448 0.5 % *),(55,)&) 131.7 % 52.8 % 1.8 %
W3RLD 434$L (,-20,*02,)22 *00.0 % +5),)5&,()2 *(5.& % *-.+ % *00.0 %
Source htt!@HH+++.i#ter#et+orldstats.comHstats.htm
<ffectie#ess of the 1et i# Reachi#* .ut to the Masses
The reach of I#ter#et may #ot yet be as +ide as that of other mass media, but *ie# its
u#iIue ada#ta*es, it is u#doubtedly the commu#icatio# medium of the future. Marketers
arou#d the +orld hae from time to time tried to reach their tar*et audie#ces throu*h
arious media. Scie#tific a#d tech#olo*ical ada#ces hae a#d +ill co#ti#ue to create
#e+er media to im!roe commu#icatio#, a#d marketers +ill try to use the same to
effectiely address their audie#ces. I#ter#et is o#e of the latest to "oi# the list of such
media i#e#tio#s.
I3ter3et (/me 9,t- t-e I3:,/3 A6:,e35es
7et us first take a Iuick look at the audie#ce that this medium is tryi#* to reach. The to! G
metros of the cou#try, the sco!e of the I#ter#et as a medium to reach out to a lar*e
#umber of !eo!le is !rese#tly limited. 6o+eer, some of these limitatio#s ca# be
addressed.
A. I#ter#et is aailable i# re*io#al la#*ua*es also. <e# today this medium is lar*ely
co#fi#ed to o#ly those +ho are literate i# <#*lish. Various i#itiaties of com!a#ies like
IT- a#d 677 like <(chou!al a#d i(Shakti hae *ie# a co#siderable boost to er#acular
usa*e of i#ter#et
%. I#ter#et is accessible thou*h other media also a#d #ot o#ly throu*h tele!ho#e li#es. I#
the curre#t sce#ario, the usa*e of i#ter#et mi*ht be domi#ated by tele!ho#e li#es, but
broadba#d a#d cable #et are comi#* i# a hu*e +ay.
B. ?oer#me#t !olicies are aimed at broade#i#* a#d stre#*the#i#* the i#frastructure
reIuired for I#ter#et accessibility.
There could be seeral other modes to i#crease the reach of the I#ter#et. 6o+eer, +ith
the curre#t limitatio#s, the !ro"ectio#s o# I#ter#et usa*e a!!ear to be as follo+s@
C6rre3t Me:,/ 6s/2e -/.,ts 08 t-e I3:,/3 /6:,e35es
TV, !ri#t a#d ci#ema hae !e#etrated the most. I#ter#et i# the media terms is e5!ected to
make a# im!act a#d sho+ its true caliber, but is yet #ot take# as a serious medium.
0oes that mea# that I#ter#et is #ot a# effectie tool for reachi#* out to !eo!leJ .r is it
likely to +ork ery +ell u#der certai# co#ditio#sJ
To u#dersta#d this better, let us com!are I#ter#et a#d other traditio#al media, first from
the customer=s !oi#t of ie+. -urre#t media o!tio#s sere t+o broad be#efits to the
customer@
A. I#formatio#
%. <#tertai#me#t
The reach or !o!ularity of a#y media is related to
A. The e5te#t of be#efits !erceied to be deliered
%. The cost of acIuisitio# of the media itself
I# short, the reach is related to the #et alue !erceied by the customer about that
!articular medium.
.# the basis of the aboe clarificatio#, I#ter#et a!!ears to hae a com!aratiely hi*her
cost of acIuisitio#. 6o+eer, I#ter#et has brou*ht +ith it a ery hi*h de*ree of co#trol to
the media user. 1ot o#ly are there a !lethora of sites cateri#* to eery ima*i#able #eed,
there is also a hi*h de*ree of fle5ibility i# +hat the user is able to do. $ll of this makes
I#ter#et a hi*hly i#teractie media but also a# e5!e#sie o#e.
If the i#ter#et is treated a#d used e5actly like a#y other medium, it is u#likely to yield
ma"or be#efits to the marketer. Its effectie#ess is de!e#de#t #ot o#ly o# the tar*et
audie#ce o#e is talki#* to, but also lar*ely o# the ability of the marketer to make use of
the real ada#ta*es of the 1et like i#teractiity, fle5ibility, ability to mo#itor a#d the like.
1e5t, o#e ca# also ealuate I#ter#et as a media from the marketers= !oi#t of ie+ by +ay
of a similar classificatio#. If ealuatio# as !er the aboe classificatio# is do#e, the
I#ter#et does #ot a!!ear to be a ery ada#ta*eous o!tio# either i# terms of reach or i#
terms of cost(effectie#ess. But I#ter#et has arious other ada#ta*es oer the traditio#al
media +hich ca##ot be #e*lected. These stem mai#ly from the ability of this medium to
allo+ a far more focused tar*eti#* as com!ared to other media.
To Iuickly summari:e the ada#ta*es of the I#ter#et as see# from the !oi#t of ie+ of the
user as +ell as the marketer@
T0 t-e 6ser@
I#ter#et *ies more co#trol i# choosi#* co#te#t. It offers customi:atio# of the co#te#t, the
+ay the user +a#ts to ie+ it. It offers a ariety of o!tio#s for i#formatio# a#d
e#tertai#me#t. It offers a +ide ra#*e to choose from for the user.
It offers treme#dous co#e#ie#ce to the user #ot o#ly i# deliery of i#formatio#, but also
i# allo+i#* him to tra#sact K ofte# i# a seamless ma##er.
The best e5am!le of *ii#* co#trol of co#te#t is the My Yahoo LL serice offered by the
I#ter#et *ia#t, Yahoo I#c. It *ies the user the choice of co#te#t for arious to!ics ra#*i#*
from #e+s to stock o!tio#s to e#tertai#me#t to s!orts a#d "ust about eerythi#*.
T0 t-e m/r4eter@
The I#ter#et offers seeral o!tio#s to a marketer tryi#* to tar*et a !articular commu#ity
It seres #ot o#ly as a cha##el of i#formatio#, but also of !roduct distributio#
It offers a hi*hly i#teractie medium that sometimes De.*. chats, forums, VoI/E is almost
eIual to o#e(to(o#e i#teractio# +ith the audie#ce.
It offers a hi*her leel of ide#tificatio# of the user to the marketer.
It allo+s the marketer to actually li#k his s!e#ds to actio#, a#d !ay o#ly o# actio#
This actio# could be a click o# the ba##er or ee# !roduct !urchased or "ust a ba##er
im!ressio# or !er A&&& im!ressio#s. I# this ability I#ter#et is, i# fact, u#like a#y other
media.
?ie# the !ayme#t o!tio#s a#d hi*h i#teractiity, the I#ter#et offers a medium for hi*h
leel of e5!erime#tatio# at a lo+ cost.
<.*. o#e ca# cha#*e the +hole look of the adertiseme#t +ithi# hours a#d i#crease the
effectie#ess of the commu#icatio# o# the I#ter#et. Ima*i#e doi#* the same +ith a
teleisio# adertiseme#t. Therefore, thou*h the I#ter#et +ith its !rese#t limitatio#s may
#ot be able to match other media i# actually reachi#* out to lar*e #umbers of !eo!le, the
be#efits of this hi*hly customi:able a#d i#teractie medium ca# be used effectiely to
tar*et #iche audie#ces.
This ca# be elaborated a little more by a#s+eri#* the follo+i#* Iuestio#s@
A. 2ho are the !eo!le +ho ca# be reached throu*h the I#ter#etJ
%. 2hich are the !roducts that ca# !ossibly be#efit from marketi#* o# the I#ter#etJ
B. 2hat are the o!tio#s aailable to the marketer to reach out more effectiely to their
audie#cesJ
M. $re there +ays for mo#itori#* effectie#ess of this medium i# order to co#trol it
betterJ
O=er=,e9 08 t-e I3:,/3 I3ter3et Users.
$ccordi#* to the data aailable +ith 1$SS-.M, about )& !er ce#t of I#dia# I#ter#et
users are chiefly fou#d i# the a*e *rou! of AF(BM. $lmost G& !er ce#t of I#ter#et users are
males. It is estimated that the I#ter#et user s!e#ds a# aera*e of A& hours !er +eek o# the
1et, a#d usually ear#s oer )&&& !er mo#th. $lmost 'B !er ce#t of I#ter#et users belo#*
to S<- $AH$%. More tha# '' !er ce#t of such I#ter#et users lie i# to+#s +ith a
!o!ulatio# of oer M& lakhs. <e# today, I#dia# users are most likely to use the 1et for
se#di#* a#d receii#* emails. 6o+eer, i#formatio#( a#d e#tertai#me#t(seeki#* are also
*ro+i#*.
-,5- >r0:65ts /re 1,4e1; .e3e8,5,/r,es 08 t-e I3ter3etA
?ie# that the usa*e of the I#ter#et is hi*hest amo#*st you#*, male audie#ces belo#*i#*
to the lar*er to+#s a#d +ho belo#* to hi*her S<- *rou!s, for this medium to be cost(
effectie, !roducts hai#* similar tar*et *rou!s +ould be#efit the most from this
medium.
The most likely e5am!les that come to mi#d i#clude telecom, fi#a#cial !roducts a#d
serices, !roducts related to e#tertai#me#t like moies D!romotio#s a#d ticketsE, !lays,
co#tests etc, 3M-? !roducts +here the core tar*et audie#ce is you#*er Ddeodora#ts, soft
dri#ksE, co#sumer durables to some e5te#t a#d hi*h(e#d serices like tour o!erators,
airli#e serices, hotels etc.
A:=ert,s,32 0>t,03s /=/,1/.1e 03 t-e I3ter3et.
The I#ter#et offers a ariety of o!tio#s for the marketer to adertise herHhis
!roductsHbra#ds. These i#clude
A. Ba##er ads a#d their ariatio#s
%. <(mailers a#d their ariatio#s
B. S!o#sorshi!s
M. Search <#*i#es
'. $ffiliate marketi#*
I# I#dia, ba##ers still remai# the most !o!ular o!tio#. 6o+eer, +ider o!tio#s are #o+
aailable to the marketer +hich, ee# at the cost of bei#* i#trusie, seres to e#ha#ce the
isibility a#d effectie#ess of the ba##er
The Varia#ts of Ba##ers i#clude @
A. Ba##er $d ( a *ra!hical +eb adertisi#* u#it, ty!ically measuri#* M)G !i5els +ide a#d
)& !i5els tall Di.e. M)G5)&E.
%. Beyo#d the Ba##er ( o#li#e adertisi#* #ot i#oli#* sta#dard ?I3 a#d N/<? ba##er
ads.
B. Butto# $d( a *ra!hical adertisi#* u#it, smaller tha# a ba##er ad.
M. 6TM7 ba##er ( a ba##er ad usi#* 6TM7 eleme#ts, ofte# i#cludi#* i#teractie forms,
i#stead of Dor i# additio# toE sta#dard *ra!hical eleme#ts.
'. Iterstitial ( a# adertiseme#t that loads bet+ee# t+o co#te#t !a*es.
). /o!(u! $d ( a# ad that dis!lays i# a #e+ bro+ser +i#do+.
O. /o! 4#der $d ( a# ad that dis!lays i# a #e+ bro+ser +i#do+ behi#d the curre#t
bro+ser +i#do+.
G. Recta#*le $d ( a#y o#e of the lar*e, recta#*ular ba##er si:es su**ested by the I$B.
F. Rich Media( #e+ media that offers a# e#ha#ced e5!erie#ce relatie to older,
mai#stream formats.
A&. Skyscra!!er $d( a# o#li#e ad si*#ifica#tly taller tha# the A%&5%M& ertical ba##er.
AA. Te5t $d ( adertiseme#t usi#* te5t(based hy!erli#ks.
A%. Surrou#d Sessio# ( adertisi#* seIue#ce i# +hich a isitor receies ads from o#e
adertiser throu*hout a# e#tire site isit.
AB. Vertical Ba##er ( a ba##er ad measuri#* A%& !i5els +ide a#d %M& !i5els tall.
?ie# the hi*hly i#teractie #ature of the I#ter#et, a#d the also fact that u#like other
media it offers a hi*her leel of ide#tificatio# of the user, sim!le direct marketi#* tools
such as email ca# also be used more effectiely. 3or e5am!le, a hi*h(e#d car seller ca#
today easily se#d a# offer to !erso#s ear#i#* oer Rs %'&&& !er mo#th at a ery
reaso#able cost a#d +ithi# a ery short !eriod.
The# a*ai# there are s!o#sorshi!s, +hich ca# be effectiely used to i#crease bra#d
salie#ce a#d ee# cha#*e ima*e.
The other tool o# the +eb +ith e#ormous !ote#tial, a#d +hich has !ossibly #ot bee# used
to its o!timal leel yet by marketers i# I#dia, is the search e#*i#e. Marketers ca# o+#
either !o!ular key+ords or make use of meta(ta*s Dthese are similar to the key+ords
+hich the search e#*i#es uses to catalo*ue arious +ebsitesH!roductsE i# order to *o
hi*her o# the search lists.
The aboe is used by the search e#*i#e *ia#t ?oo*le.com a#d it has rea!ed !rofits so
much so that it is #o+ bei#* ie+ed as a threat by the com!uter *ia#t Microsoft I#c.
O /Ps of Marketi#* o# the I#ter#et
The four /Ps ( /roduct, /rice, /lace a#d /romotio# hae lo#* bee# associated +ith
marketi#*, but thi#*s hae cha#*ed o# the I#ter#et. So alo#* +ith a cha#*e i# the #ature
of the four /=s there are three #e+ /=s +hich are relea#t to the i#ter#et marketer.
A. T-e Pr0:65t o# the I#ter#et usually cha#*es form o#li#e, a#d the user
e5!erie#ces it electro#ically, i# the form of te5t, ima*es a#d multimedia. /hysical
*oods are usually !rese#ted i# the form of a detailed o#li#e catalo*ue that the
customer ca# bro+se throu*h. Tech#olo*y allo+s the user to irtually touch a#d
feel the !roduct o# the I#ter#et ( rotate it, :oom i# or :oom out a#d ee# isuali:e
the !roduct i# differe#t co#fi*uratio#s a#d combi#atio#. The e5am!le of the
aboe ca# be see# at dell.com +here the com!a#y offers the user to irtually feel
eery as!ect of their !roduct before they *o i#to a buy decisio#. Content a#d
software are t+o aatars of di*iti:ed !roducts that ca# be ee# distributed oer the
I#ter#et. .# the I#ter#et, <(marketi#* +ill be based more o# the !roduct Iualities
rather tha# o# the !rice. <ery com!a#y +ill be able to bri#* do+# the cost of its
!roducts a#d he#ce com!etitio# +ill #ot be o# !rice. It +ill rather be o# the
u#iIue#ess of the !roduct. To be able to attract the customers a#d retai# them, the
com!a#y +ill hae to !roide #ouelle a#d disti#ct !roducts that forces the #et
users to !urchase a#d come back for more.
%. T-e Pr,5e has bee# drastically cha#*ed oer the I#ter#et. It lets the buyer decides
the !rice. $lso it *ies the buyers i#formatio# about multi!le sellers selli#* the
same !roduct. It leads to best !ossible deal for the buyers i# terms of !rice. $
+ebsite #amed /riceli#e.com is e5tremely !o!ular as its com!ares the !rice of
ma#y airli#es a#d offers the least !rice to the buyer. The ery famous ba:ee.com
#o+ k#o+# as ebay.i# follo+s the same !ri#ci!les. /rici#* is dy#amic oer the
I#ter#et.
B. T-e P1/5e reoles arou#d setti#* u! of a marketi#* cha##el to reach the
customer. I#ter#et seres as a direct marketi#* cha##el that allo+s the !roducer to
reach the customer directly. The elimi#atio# of the i#termediate cha##el allo+s
the !roducer to !ass the reduced distributio# cost to the customer i# the form of
discou#ts. 0ell -om!uters hae used this strate*y ery effectiely a#d he#ce they
hae bee# able to reduce their !rices of their la!to!s drastically a#d rea!ed hu*e
!rofits.
M. Pr0m0t,03 is e5tremely #ecessary to e#tice the customer to its +ebsite, as there
are curre#tly more tha# o#e billio# +eb !a*es. /romoti#* a +ebsite i#cludes both
o#li#e a#d offli#e strate*ies. .#li#e strate*ies i#clude search e#*i#e o!timi:atio#,
ba##er ads, multi!le !oi#ts of e#try, iral marketi#*, strate*ic !art#ershi! a#d
affiliate marketi#*. /rese#tly, the cybers!ace is already cluttered +ith thousa#ds
of sites !robably selli#* similar !roducts. 3or the customers to k#o+ of the
-om!a#y=s e5iste#ce a#d to *ar#er i#formatio# o# the ki#d of !roducts or
serices that the com!a#y is offeri#*, !romotio# has to be carried out. There ca#
be traded li#ks or ba##er adertiseme#ts for the same. $lso the traditio#al
mediums like !ri#t, outdoor adertisi#* a#d teleisio# ca# be used to s!read
a+are#ess. <mail cam!ai*#s a#d s!ammi#* the -hat rooms o# almost eery
serer has bee# e5!loited to the ma5imum for the cause of !romoti#* their
+ebsite.
'. Prese3t/t,03 The !rese#tatio# of the o#li#e busi#ess #eeds to hae a# easy to use
#ai*atio#. The look a#d the feel of the +eb site should be based o# cor!orate lo*os a#d
sta#dards. $bout G&C of the !eo!le read o#ly %&C of the +eb !a*e. Therefore, the +eb
!a*e should #ot be cluttered +ith a lot of i#formatio#. $lso, sim!le but !o+erful
#ai*atio#al aids o# all +eb !a*es like search e#*i#es make it easy for customer to fi#d
their +ay arou#d. The !ri#ci!le of K.I.S.S D Kee! it sim!le stu!id E is the most im!orta#t
factor that has to be co#sidered +hile !rese#ti#* the o#li#e busi#ess
). Pr05esses -ustomer su!!orts #eeds to be i#te*rated i#to the o#li#e +eb site. $
sales serice that +ill be able to a#s+er the Iuestio#s of their customers fast a#d
i# a reliable ma##er is #ecessary. To further e#ha#ce after sales serice, customers
must be able to fi#d out about their order status after the sale has bee# made. 3or
e.*. 3ed<5 D+++.fede5.comE, the oer#i*ht -ourier -om!a#y allo+s its
customers to kee! track of the !arcel a#d they are +ell i#formed about the !rese#t
+hereabouts of their !acka*e. Similar aria#ts hae bee# used by the ?ot of
I#dia for its S!eed !ost a#d Re*istered $d serices +here you ca# kee! a track of
your !ost by e#teri#* the code that has bee# issued to you.
O. Pers03/1,B/t,03 4si#* the latest soft+are from Broad(Visio# a#d others, it is
!ossible to customi:e the e#tire +eb site for eery si#*le user, +ithout a#y
additio#al costs. The mass customi:atio# allo+s the com!a#y to create +eb !a*es
!roducts a#d serices that suit the reIuireme#t of the user. $ customi:ed +eb !a*e
does #ot o#ly i#clude the !referred layout of the customer but also a !re selectio#
of *oods the customer may be i#terested i#. 3or e.*. YahooL D+++.yahoo.co.i#E
e#tered the I#dia# cybers!ace a#d started its !erso#ali:ed serices. $ re*istered
user of Yahoo ca# #o+ !erso#ali:e the fro#t !a*e +ith all the i#formatio# he
#eeds. 6e ca# read the #e+s of the +orld, add a ta5 calculator, see the +eather
forecasts of his city a#d liste# to his faorite so#*s a#d all this simulta#eously.
I#ter#et Marketi#* Tactics
There are ma#y differe#t tech#olo*ies to facilitate your I#ter#et marketi#* strate*y. Some
of the most commo# a#d effectie tools are@
Se/r5- E32,3es /3: D,re5t0r,es@ Search e#*i#es are o#e of the most !o!ular mea#s of
fi#di#* +eb sites, seco#d o#ly to follo+i#* li#ks o# +eb !a*es.
Search e#*i#es hel! !eo!le fi#d relea#t i#formatio# o# the I#ter#et. Ma"or search
e#*i#es mai#tai# hu*e databases of +eb sites that users ca# search by ty!i#* i# key+ords
or !hrases.
$dertise your messa*e. 2eb directoriesHsearch e#*i#es are i#formatio#, *ate+ays that
hae hi*h traffic a#d are *ood for dis!layi#* adertiseme#t ba##ers. They are used to
fi#d I#ter#et i#formatio# a#d for this reaso#, a!!eal to broad tar*et *rou!s.
E#B,3es D.#li#e ma*a:i#esE@ These !ublicatio#s are focused o# s!ecific to!ics a#d may
be a +ay to reach a tar*et audie#ce i#terested i# that sub"ect. Some com!a#ies hae
*athered the e(mail addresses of !ote#tial customers a#d used these lists to se#d out
!roduct i#formatio# s!ecific to clie#t i#terests.
See# *ood reaso#s to establish a# <(Qi#e
A. <stablishes Trust
%. Bri#*s Visitors Back
B. <stablishes You as a# <5!ert
M. Kee!s -urre#t R /ote#tial -ustomers 4! to 0ate o# 1e+ /roducts R Serices
'. Builds Relatio#shi!s
). $llo+s You to Build a# .!t(I# <mail Marketi#* 7ist
O. Kee!s Your 2ebsite 3resh i# VisitorsP Mi#ds
E#m/,1@ <thical methods of *atheri#* e(mail addresses are throu*h o#(li#e re*istratio#
built i#to your cor!orate 2eb sites, or reIuests for i#formatio# forms that reIuest
submissio# to your o!t(i# lists.
$# alter#atie is to !urchase lists of customer e(mail addresses i#de5ed by s!ecial
i#terests from a !riate com!a#y such as P/ostmaster 0irectP.
.#li#e customers are becomi#* i#creasi#*ly selectie about their relatio#shi!s, the
bra#ds they trust, a#d +hat they co#sider relea#t. 2hile most marketers are a+are of
!riacy issues a#d the risks of S!am, there is still #eed for im!roeme#t. <mail
marketi#* cam!ai*# ma#a*eme#t is still fairly u#so!histicated ee# at the lar*est of
or*a#i:atio#s.
Marketers hae to thi#k about the driers of customer res!o#se a#d !urchase. .er time,
as more is lear#ed about your customer buyi#* behaior, you ca# +ill isolate cam!ai*#
a#d !ro*ram characteristics that drie your customer or isitor res!o#se a#d actio#.
Isolati#* the behaior of hi*h alue customers, busi#ess customers, or the mi#ority of
customers +ho !refer to buy o#li#e +ill be critical. 3or e5am!le, #e+ o#li#e buyers *et
referrals +he# sho!!i#* o#li#e, +hile e5!erie#ced freIue#t buyers !refer search e#*i#es.
A88,1,/te M/r4et,32@ $ffiliate Marketi#* e#ables you to i#crease o#li#e sales by
!romoti#* your !roducts a#d serices throu*h a #et+ork of $ffiliate sites o# a !ayme#t(
by(results basis.
It also !roides the o!!ortu#ity to *e#erate additio#al ree#ue by e5!loiti#* your sitePs
o+# co#te#t to !romote the !roducts a#d serices of other o#li#e Mercha#ts.
$ Mercha#t recruits co#te#t sites to !art#er +ith them as $ffiliates i# e5cha#*e for
commissio#s. $ commo# third !arty !roider such as -ommissio# Nu#ctio# ca# be used.
The Mercha#t !roides their adertisi#* ba##ers a#d li#ks to their $ffiliates a#d assi*#s a
commissio# for each click(throu*h to their site, subscri!tio# to their serice, or !urchase
of their !roducts that is *e#erated from those li#ks.
$ffiliates !lace the tracki#* code for these ads a#d li#ks o# their 2eb sites. This allo+s
clickthrou*hPs to be tracked o#li#e a#d commissio#s to be calculated. If a !roduct or
serice is !urchased, the customer !ays the Mercha#t directly a#d the $ffiliate is !aid a
commissio# for that tra#sactio#. The dati#* *ia#t adultfrie#dfi#der.com has used this
strate*y to the ma5imum a#d has ear#ed millio#s of dollars by !ro!er im!leme#tatio# of
this strate*y.
B/33er A:=ert,s,32@ Ba##er adertisi#* ca# !lay a# e5tremely im!orta#t role +ithi#
your +ebsite strate*y. .#e ca# use ba##er adertisi#* as a mea#s of !romoti#* it=s o+#
!roducts a#d serices, raisi#* a+are#ess, or as a +ay of *e#erati#* ree#ue by selli#*
adertisi#* s!ace o# your o+# +ebsite.
SS
P6r5-/s,32 A:=ert,s,32@ There are curre#tly t+o +idely reco*#i:ed methods of
!urchasi#* ba##er adertisi#*. The rates for these are usually Iuoted o# a cost !er
thousa#d basis or D-/ME. The rates you !ay ca# ary treme#dously as there is curre#tly
#o sta#dard !rice model ( so be !re!ared to #e*otiateL
P/;#Per#Im>ress,03@ This method of !urchasi#* ba##er adertisi#* is based o# a
char*e for the #umber of times someo#e sees your ba##er. There are #o
*uara#tees as to ho+ ma#y isitors +ill come to your site as a result of seei#*
your ba##er> you are sim!ly !ayi#* for the #umber of times your ba##er is
dis!layed. 2ebsites that offer such !ro*rams i#clude !ay!o!u!.com a#d
adclicksor.com
P/;#Per#V,s,t0r@ This method of !urchasi#* ba##er adertisi#* is based o# a
char*e for the #umber of times someo#e isits your site as a result of clicki#* o#
your ba##er. This is a better method of !urchasi#* ba##er adertisi#* as you are
o#ly !ayi#* for results, althou*h e5!ect to !ay a !remium.
P/;#/er(-lick @ The ree#ue model of the I#ter#et *ia#t *oo*le.com has its ery
o+# serice +hich offers certai# share of the !rofit that it makes by the click(thru
that a +ebsite *e#erates from its adse#se codes. The ree#ue model is k#o+# as
*oo*le adse#se a#d almost eery successful +ebsite uses this model to make
!rofits. The ?oo*le adse#se ads ca# be see# o# +ebsites like Times of I#dia,
Mo#eyco#trol.com, Ma#a*eme#t/aradise.com a#d a lot ma#y other re!uted
+ebsites.
Br/3:,32. 2hile -TR a#d cost !er sale relate to direct marketi#* ob"ecties,
a#other +ay of looki#* at ba##er ads is as ;bra#di#*; tools. They create bra#d
a+are#ess, a#d a bra#d ima*e i# the ie+erPs mi#d, +hether or #ot the ie+er
clicks o# the ad. Bra#di#* is ery difficult to measure, but ca# be ery !o+erful.
The aera*e click throu*h ratio o# ba##ers is "ust u#der AC, althou*h +ith a +ell !la##ed
a#d e5ecuted adertisi#* cam!ai*# usi#* effectie ba##ers you ca# i#crease this to as
much as A'C, but be !re!ared to +ork at it.
It is a *ood idea to hae a #umber of differe#t ba##er ideas so that you ca# carry out
small test marketi#* cam!ai*#s +ith each o#e u#til you fi#d those that +ork best.
There are a #umber of key issues that must be co#sidered +he# desi*#i#* a successful
ba##er@
It must hae a# atte#tio#(*rabbi#* headli#e.
It must be sim!le a#d *et your !oi#t across.
It must i#oke actio# Di.e.@ ;-lick here;E
It must do+#load Iuickly.
It must be !laced effectiely o# a +eb site, 7ocatio#, 7ocatio#, 7ocatio#
$#y cam!ai*# is limited by the amou#t of adertisi#* you ca# do de!e#di#* o# the si:e
of your bud*et. Therefore it is im!orta#t that you tar*et your market carefully so as to
ma5imi:e adertisi#* s!e#d o# effectie ba##er cam!ai*#s.
R,5- Me:,/ A:=ert,s,32@ 7ooki#* for +ays to make o#li#e adertisi#* more
com!elli#*, a#d ho!efully thereby more acce!table, marketers hae i#creasi#*ly bee#
tur#i#* to streami#* adertisi#*.
I# effect a#other ki#d of rich media adertisi#*, streami#* adertisi#* comes i# t+o basic
forms.
3irst, it ca# either be !art of a streami#* audio or ideo !ro*ram o# the +eb. 2ith ma#y
!eo!le #o+ liste#i#* to +eb radio or +atchi#* +eb broadcasts, this makes !erfect se#se.
$fter all, eeryo#e is accustomed to *etti#* commercials o# their TV or car radio.
The other cha##el for streami#* adertisi#* is esse#tially a# i#fomercial. -o#sumers ca#
do+#load a streami#* cli! for a !roduct or serice from a marketerPs +ebsite.
T+o #e+ studies rece#tly released su**est that the streami#* adertisi#* market is *oi#*
to boom #o+ a#d i# the years to come. The *ia#t ad selli#* com!a#y mediaturf uses this
method for !roidi#* co#te#t to adertisers
C038ere35es@ By their #ature co#fere#ces are or*a#i:ed for s!ecial i#terests. $dertisi#*
i# co#fere#ce literature, !ri#t a#d electro#ic, is a# e5celle#t +ay to co#tact tar*et
markets.
C011/.0r/t,=e M/r4et,32@ Team u! +ith other busi#ess to@
-ross(!romote ( e.*. setti#* u! li#ks from o#e cor!orate 2eb site to a#other or
offeri#* s!ecial !romotio#s i# !art#ershi! +ith com!leme#tary *oods or serices.
$dertise ( share adertisi#*.
/artici!ate i# "oi#t s!o#sorshi! of ee#ts, i#itiaties, i#formatio#al 2eb
sites, maili#* lists, bulleti# board systems, directories, etc.
7i#k e5cha#*e +ith tradeH!rofessio#als associatio#s to su!!ort credibility of firm,
!roide further market i#formatio# to customers, build their a+are#ess a#d
!re!are them for the actio# of !urchasi#*.
S/1es Pr0m0t,03@ <m!loyi#* methods to stimulate sales throu*h immediate or delayed
i#ce#ties to the customer. If the i#ce#tie is attractie, the !rice@ alue ratio is ad"usted
faourably e#ou*h to affect a sale. This strate*y should i#te*rate +ith the oerall
marketi#* mi5 to bala#ce e5tra sales +ith lo#*(term !rofit moties. <5am!les of sales
!romotio# strate*ies are@
S/m>1,32 ( offeri#* !roduct sam!les, electro#ically.
B036s 088ers ( offeri#* additio#al *oods or serices +he# maki#* si#*le !urchases
De.*. buy(o#e(*et(o#e(freeE.
L,m,te: t,me 088ers ( attracti#* isitors to retur# to a 2eb site.
G/mes 9,t- >r,Bes@ 4seful to kee! !eo!le comi#* back to 2eb sites.
Cr0ss#>r0:65t s/m>1,32@ 2he# a customer makes a !urchase they hae a#
o!!ortu#ity to try out a#other com!a#y=s !roductHserice. $lso, the customer may
hae the o!!ortu#ity to try out more tha# o#e com!a#y=s !roductHserice +hile
testi#* a#other. 4seful for com!leme#tary !roductsHserices.
(e/t6re >r,5,32@ !roidi#* s!ecial !rici#* to those that order electro#ically.
Cr0ss#>r0m0t,03s 9,t- 0t-er 50m>/3,es+ >r0:65tsCser=,5es ( Buy a com!a#y=s
!roductHserice a#d *et a cou!o# for a#other com!a#y=s !roductHserice.
P6.1,5,t;@ The *oal of !ublicity is to hae others talk about the small busi#ess or its
!roducts. It ca# be i#e5!e#sie or ee# free a#d it may hae the !ote#tial to *e#erate far
more i# sales tha# ee# a +ell e5ecuted adertisi#* !la#.
Pr0m0t,03/1 P6.1,5/t,03s@ 3acilitate customer educatio#, +ith the i#te#tio# of buildi#*
cor!orate ima*e a#d ee# bra#d a+are#ess, the small busi#ess may s!o#sor a#dHor
!ublish its o+# electro#ic ma*a:i#e o# the 2eb, e(mail, etc. These are useful i# fields
+here the customer #eeds i#formatio# to deelo! sufficie#t k#o+led*e for moeme#t
throu*h the first three sta*es of the sales !rocess of a+are#ess, i#terest, a#d desire.
$lthou*h time co#sumi#*, they re!lace or com!leme#t the !ri#t ersio#s of
#e+slettersHcor!orate ma*a:i#esHflyers.
S6.s5r,>t,03s@ Busi#ess marketers may use their 2eb sites to e#coura*e isitors to
subscribe to receie re*ular email messa*es from the com!a#y. These messa*es are
called di*ests or #e+sletters, a#d are a cleer +ay for marketers to !ush !roduct #e+s to
+illi#* customers.
C03tr011e:#/55ess e. >/2es@ -leer busi#ess marketers may use their 2eb site to
attract #e+ customers.
They mi*ht !ublish a 2eb !a*e that allo+s customers to do+#load a free trial ersio# of
a soft+are a!!licatio# that e5!ires after a time if #ot !aid for. .r, customers mi*ht
receie a# e(mail messa*e i#iti#* them to isit a !riate 2eb !a*e o# the com!a#y=s
i#tra#et, a#d *ii#* them a !ass+ord. The com!a#y, as a +ay of e#coura*i#* a sale,
offers customers +ho isit the !a*e a !ri:e or e#ticeme#t of some sort.
P6.1,5 (0r6ms@ These are ofte# commu#ity(based or i#terest(based sites that allo+
isitors to commu#icate +ith o#e a#other. $# o!!ortu#ity for small busi#esses to reach to
their i#te#ded tar*et *rou! ia these forums is by !osti#* messa*es or by s!o#sori#* such
a forum. <(mail based forums a!!eal to a +ider audie#ce due to the *reater use of this
a!!licatio# oer 2eb(based forums. 2eb based forums are ada#ta*eous for their
su!erior dis!lay of adertisi#* ima*esHmessa*es
Rese11ers@ Some sites +ill remarket other com!a#ies= !roducts as i#termediaries. The
com!a#ies that host these sites may hae i#ested si*#ifica#t resources i# maki#* them
attractie to the tar*et audie#ce a small busi#ess is i#terested i# attracted. By
!i**ybacki#* o# a#other com!a#y=s efforts, cost(efficie#cies may be reali:ed by
e#*a*i#* i# a reselli#* arra#*eme#t.
E#m/,1 L,34s@ Visitors to a site should hae the o!!ortu#ity to corres!o#d +ith the host
of that site, es!ecially if out of the tele!ho#e area or time :o#e. <(mail li#ks may be
strate*ically !laced throu*hout the site to elicit res!o#se from isitors for at arious
!oi#ts. These are also useful for feedback o# site mai#te#a#ce !roblems.
O3#1,3e S6r=e;s@ I#formatio# may be collected o# the isitors to a 2eb site throu*h
re*istratio# forms, o#(li#e sureys, or throu*h tracki#* of areas of site they isit. These
+ebsites also offer referrals +herei# if you refer someo#e to their site a#d the !erso#
becomes a member the# you are !aid commissio# o# that.
V,rt6/1 M/11s@ 2eb based sites that allo+ com!a#ies to !ost their !roducts or serices
for sale lo#* +ith other com!a#ies. These may be !roduct s!ecific, may be arra#*ed by
com!leme#tary !roducts, or may hae !roducts that are #ot related e5ce!t by their
com!a#ies= desire to attract a similar tar*et audie#ce.
Me/s6reme3t@ The I#ter#et has the u#iIue ability to !roide marketers +ith detailed
i#formatio# about the success of their 2eb marketi#* !ro*rams. -om!a#ies ca# track
isitors to their site a#d collect i#formatio# about them from their 8cookies,9 the# !rocess
this i#formatio# usi#* 2eb site a#alysis soft+are.
-ookies are a ty!e of di*ital ide#tificatio#, +hich is read eery time the user co##ects to
a !ublic 2eb site. The 2eb site ca# collect some ery basic i#formatio# about the user
De(mail address, time of day the site +as accessed, +hich !a*es +ere isitedE a#d use it to
create isitor !rofiles. Visitors ca# the# be ide#tified as 8old9 or 8#e+9 +he# they isit
the site.
-ookies are a# esse#tial !art of ma#y com!a#ies= busi#ess strate*ies. The i#formatio#
collected from them is used to measure site isitors, deelo! user !rofiles, a#d tar*et
adertisi#* K i# much the same +ay that teleisio# allo+s adertisers to tar*et their
messa*e to a certai# demo*ra!hic.
Advertising on the Internet: emerging issues

I3ter3et m,2-t .e / 5/t5-; /:=ert,s,32 me:,6m. B6t" t-ere /re D6,te / 8e9 ,ss6es
t-/t 3ee: t0 .e s0rte: 06t.
$dertisi#* o# the 1et is slo+ly catchi#* o#. I# deelo!ed eco#omies, adertisi#* o# the
1et accou#ts for a#ythi#* bet+ee# see# a#d O.' !er ce#t of the total adertisi#* cake.
3i#e, ho+ lar*e is o#li#e adertisi#* i# I#diaJ
Various estimates !ut the si:e of o#li#e adertisi#* i# I#dia bet+ee# Rs %M crore a#d Rs
%F crore, +hich is much less tha# o#e !er ce#t of the total adertisi#* cake. 2hy is o#li#e
adertisi#* so small i# I#diaJ 2hy are#Pt the adertisers !utti#* their mo#ey o# 1et
adertisi#*J 3or i#sta#ce, 6i#dusta# 7eer=s adertisi#* bud*et is u!+ards of Rs O&&
crore a#d out of this> the com!a#y s!e#ds #ot more tha# Rs %' lakh o# o#li#e adertisi#*.
Is this because 1et !e#etratio# i# I#dia is #ot dee!erJ Yes, to a# e5te#t.
S109 m0t,03
6o+eer, this mi*ht #ot be the case for lo#*. 3or, i#itiaties are o# to i#crease the
#umber of I#ter#et users. It is estimated that I#ter#et subscribers +ill i#crease to arou#d
B' millio# by %&&G from the curre#t fi*ure of o#e millio#.
1ot o#ly that, a drie is o# to make I#ter#et more affordable. 3or i#sta#ce, the Relia#ce
*rou! is !la##i#* to set u! O,G&& cyber kiosks i# Madhya /radesh a#d BS<S is !la##i#*
to !ut u! A,&&& cyber kiosks i# Bombay. $#d the 4K(based 2orldTel, i# !art#ershi! +ith
the Relia#ce *rou!, is +orki#* at buildi#* A,&&& commu#ity I#ter#et ce#tres i# Tamil
1adu.
There is a Iuestio# here, ho+eer. If #umbers are the o#ly factor, the# ho+ is that 1et
adertisi#* has !icked u! i# 6o#* Ko#*, +hich boasts of A.G millio# 1et users com!ared
to some B.' millio# i# I#dia. So, there are other reaso#s +hy o#li#e adertisi#* is *oi#*
throu*h a slo+ motio# i# I#dia.
.#e such reaso# is this@ there is #o official or*a#i:atio# i# I#dia that mo#itors a#d
re*ulates the o#li#e adertisi#* i#dustry. $#d there is #o mecha#ism aailable for
tracki#* ie+ershi! of adertiseme#ts. Says $!ura /urohit, media director +ith the
Mumbai(based 3-B(4lka $dertisi#*@ ;2hile teleisio# has t+o !eo!le meter serices,
Tam DIMRBE a#d I#tam D.R?(M$R?E, there is #o !ossible mecha#ism to e#able
+orki#* out o!timi:ed schedules o# the basis of ad ie+er shi! rather tha# !ro*ramme
ie+ershi!.;
True. .#ly such a mecha#ism ca# hel! to track ad ie+ershi! !atter#s much more
accurately a#d mo#itor teleisio# adertiseme#ts effectiely. The ery reaso# that ad
ie+ershi!s i# o#li#e adertisi#* are #ot mo#itored a#d audited is maki#* Iuite a fe+
cor!orate adertisers *o slo+ i# latchi#* o# to the I#ter#et medium. Says B
Ve#katarama#a#, *rou! media ma#a*er of the Mumbai(based 6i#dusta# 7eer@ ;I am
ske!tical about the ki#d of fi*ures most dot(coms come u! +ith. So, +e +ill be *oi#*
about o#li#e adertisi#* i# a !la##ed +ay.;
$ll these mi*ht become thi#*s of the !ast +ith Iuite a fe+ studies o# o#li#e adertisi#*
i# the !i!eli#e. 3or i#sta#ce, $- 1ielse# is looki#* at rati#* 1et adertisers a#d .R?(
M$R? is !la##i#* to kick off its research o# 1et adertisi#*.
T-e 50st 8/5t0r
$bse#ce of a mo#itori#* mecha#ism a!art, o#li#e adertisi#* has to lie +ith a#other
hurdle. Ma#y adertisers are #ot a+are of the be#efits o#li#e adertisi#* ca# offer oer
the traditio#al media. 2hat #eeds to be do#eJ The adertisi#* i#dustry should take efforts
to educate !ote#tial 1et adertisers about the ada#ta*es of adertisi#* o# the 1et.
Some ste!s hae already bee# take# i# this directio#. 3or i#sta#ce, adertisi#* #et+orks
such as Media%1et, Ri*htsere a#d Mediaturf are doi#* their bid to fuel o#li#e
adertisi#* i# I#dia. Ri*htsere of 6u*hes Soft+are is said to be s!e#di#* #early Rs t+o
crore o# semi#ars, adertiseme#ts a#d road sho+s for creati#* a+are#ess about the
o#li#e adertisi#* co#ce!t.
There is a#other reaso# +hy adertisi#* o# the 1et has #ot really !icked u!. $#d that is
the !erce!tio# that adertisi#* o# the 1et is e5!e#sie. Is this !erce!tio# ri*htJ
-om!are the cost of a ba##er adertiseme#t o# the 1et +ith a teleisio# commercial.
Thou*h the cost of a# adertisi#* cam!ai*# o# the 1et could be a#y+here bet+ee# Rs
A',&&& a#d Rs A.' lakh, adertisi#* i# the !ress or teleisio# +ill cost u!+ards of Rs '&
lakh. 0oes this #ot make adertisi#* o# the 1et chea!J 1o. 3or, +hether adertisi#* o#
the 1et is cost(effectie or #ot de!e#ds o# the alue !er adertisi#* Ru!ee.
That mea#s, it is esse#tial to e5!ress adertisi#* costs o# the 1et i# terms of cost !er
thousa#d D-/TE. 6ere is +hat $mardee! Si#*h, a Mumbai(based media co#sulta#t +ith
Mediaturf.com, has to say@ ;$ thirty( seco#d teleisio# commercial +ill cost bet+ee# Rs
%'& a#d Rs B&& !er thousa#d, +hile a te#(seco#d ba##er o# a re!uted site such as
Rediff.com +ill cost as much as Rs '&& to Rs A,&&& !er thousa#d.;
The im!licatio#@ alue !er Ru!ee s!e#t o# adertisi#* is hi*her i# the case of teleisio#.
That is efficie#cy is hi*her i# the case of teleisio# adertisi#*, +hile i# absolute terms
adertisi#* costs are lo+er as far as the 1et is co#cer#ed.
3i#e, but ho+ are rates fi5ed for adertisi#* o# the 1etJ It is a difficult !oser co#sideri#*
the fact that rates for adertisi#* o# the 1et hae #o ratio#ale behi#d them. 3or i#sta#ce,
Rediff.com "ust ado!ted the i#ter#atio#al rate char*ed by Yahoo.com. .ther +ebsites i#
I#dia "ust took the Rediff.comPs rate as a be#chmark a#d ad"usted their rates accordi#*ly.
But, the issue here is this@ si#ce the #umber of 1et users i# I#dia is limited #o+, these
I#dia# rates are #ot "ustified.
2hat are the emer*i#* tre#ds as far as cost of o#li#e adertisi#* is co#cer#edJ -urre#tly,
rates for a sim!le ba##er adertiseme#t o# the 1et #eed to come do+#. $lready,
Mediaturf is +orki#* i# this directio#. It +a#ts to bri#* do+# the cost of 1et adertisi#*
at least by '& !er ce#t. Mediaturf beliees that +he# the rates come do+#, olumes
should *o u!.
$#d that has bee# the i#ter#atio#al e5!erie#ce. I# the 4S$, +he# the rate for a full
ba##er adertiseme#t fell from 4S TBB.%% to 4S TB&.'% !er thousa#d im!ressio#s, o#li#e
adertisi#* outlays too rose duri#* the same !eriod.
T-e 9/st/2e 8/5t0r
There are other reaso#s +hy adertisi#* o# the 1et is #ot curre#tly see# by adertisers as
cost(effectie. .#e of them is the Iuality of desired res!o#ses. I# ma#y cases, sums s!e#t
o# adertisi#* o# the 1et hae #ot bee# de!loyed !ro!erly. There are i#sta#ces +here
adertiseme#ts hae "ust bee# lifted a#d !ut o# the ba##er. Thou*h there are ma#y early
ada!ters i# I#dia, there is a bi* *a! bet+ee# these ada!ters a#d the mai#stream users.
$#d most adertisers hae too small bud*ets for adertisi#* o# the 1et to be bothered
about +asta*es.
There could be +asta*es i# o#li#e adertisi#*, but o#e should #ot for*et that i#teractiity
is the hallmark of o#li#e adertisi#* a#d here it is !ossible to tar*et the audie#ce by
demo*ra!hy, !sycho*ra!hy a#d tech#o*ra!hy. So, adertisi#* a*e#cies #eed to take i#to
accou#t these factors +hile deelo!i#* strate*ies.
But, +asta*es ca# be elimi#ated a#d o#li#e adertisi#* ca# be made more effectie
throu*h arious strate*ies. Some of them are@ strate*ic tie(u!s, s!o#sorshi!s a#d ba##er
e5cha#*es. 3or i#sta#ce, the 3M-? ma"or -ol*ate(/almolie has e#tered i#to a strate*ic
tie(u! +ith the -alcutta(based 3irst1et Solutio#sP !ortal Ya#tram.com for !romoti#* its
3resh <#er*y ?el tooth!aste o# the !ortal. $#d -oca(-ola has a!!oi#ted 6u#*ama.com,
a# I#dia# !ortal for !romotio#s a#d co#tests, as its e(marketi#* !art#er. -oca(-ola has
*o#e ahead a#d lau#ched a #e+ 2eb !romotio# dubbed Maa:a /u::le to !romote its
!o!ular bra#d Maa:a a#d has also kicked off a series of e(!romotio#s for the 6i#di film
"6um To Mohabbat Kare*a".
Mea#+hile, tie(u!s for ba##er e5cha#*es are also taki#* !lace. 3or i#sta#ce,
Bidorbuy.com has tied u! +ith I#diacar.com a#d I#tel has s!o#sored a festial sectio# o#
Satyam .#li#e.
T/r2et,32 ,m>er/t,=es
$ccurate tar*eti#* is a#other strate*y to elimi#ate +asta*es i# o#li#e adertisi#*.
-urre#tly, such tar*eti#* based o# !arameters such as *eo*ra!hic locatio# a#d search
key+ords is !ossible.
Yes, Satyam .#li#e is offeri#* customised solutio#s here a#d !ortals such as
I#diai#fo.com a#d Rediff.com offer key+ord tar*eti#*. It is !ossible #o+ to measure
cam!ai*# !erforma#ces o# a real(time basis a#d make #ecessary cha#*es. $d #et+orks
such as Ri*htsere are offeri#* such serices based o# their co#ti#uous o#li#e re!orts.
Moreoer, tar*eted adertiseme#ts based o# the !rofile of users are also !ossible. To
make this !ossible, it is esse#tial to hae lists such as re*istered e(mail users a#d such
lists ca# offer !rofiles of users.
But the Iuestio# is ho+ ma#y sites i# I#dia hae a lar*e base of re*istered usersJ /erha!s
Rediff.com has a base of ei*ht lakh re*istered users a#d Nobsahead.com has a base of
about A.'& lakh users.
$#other +ay +asta*es ca# be elimi#ated is by hai#* adertiseme#ts based o# the
co#te#t of the site. -o#sider the e5am!le of a# adertiseme#t from Toyota Motor Sales
o# the +eather site I#tellicast.com. This +ebsite for outdoor recreatio# e#thusiasts has
bee# ru##i#* a cam!ai*# for Toyota Motor Sales a#d this cam!ai*# de!e#ds o# the
+eather. If the +eather is su##y, the solara is sho+# +ith the to! do+#, a#d if it is cloudy
or rai#i#*, the to! is sho+# u!. 6o+ ma#y such ads are isible o# I#dia# +ebsitesJ
/rofili#* tools too should hel! i# cutti#* do+# +asta*es i# o#li#e adertisi#*. Mediaturf
has *o#e a ste! further by beta(testi#* a# adertiseme#t i# a bid to *au*e a# userPs
behaiour, the #umber of times he ie+s a# adertiseme#t a#d his !refere#ces i# terms of
co#te#t +he# he is surfi#* o# a site. .ther +aste(elimi#ati#* strate*ies for o#li#e
adertisi#* are@ co#te5tual selli#* usi#* demo*ra!hic a#d !sycho*ra!hic data to match
ads +ith co#te#t that fits a#d dy#amic customi:atio# or click stream a#alysis that hel!s to
modify adertiseme#ts i# real(time.
O31,3e C03str/,3ts
$s efforts to elimi#ate +asta*es i# o#li#e adertisi#* take off> efforts are also #eeded to
elimi#ate the atte#da#t co#strai#ts. I# o#li#e adertisi#*, o#e ca# stream audio a#d ideo
tech#olo*ies to*ether +ith faster ba#d+idths a#d deliery cha##els i# a bid to !rese#t the
same idea +ith the use of sou#d, music a#d isual ima*ery a#d make i#teractio#s +ith
the ba##er !ossible.
But, this is #ot !ossible i# I#dia, tha#ks to the e5isti#* ba#d+idth !roblems. 6o+eer,
soo# ba#d+idth +ill cease to be a# issue.
0es!ite the ba#d+idth co#strai#t, the -oco(-ola teleisio# commercial is bei#* aired i#
Qee#e5t.com. This i#itiatie has bee# take# by Mediaturf a#d a Ba#*alore(based soft+are
!ro*rammer, +ho hae fou#d a +ay to use the 1et to air commercials +ith the dial(u!
mode a#d thus oercomi#* the ba#d+idth co#strai#t. $#y+ay, +ith massie i#estme#ts
comi#* i# ba#d+idth, there could be a *lut soo#.
Sure, I#dia has a# ada#ta*e i# o#li#e adertisi#*, tha#ks to the fact that o#li#e
adertisi#* de!e#ds so much o# tech#olo*y a#d soft+are !ro*rammi#*.
So, the days of i##oatie ba##ers a#d co#er*e#ce of real(time adertisi#* are #ot far.
But, effectie o#li#e adertisi#* calls for skills i# co#sumer a#d relatio#shi!
ma#a*eme#t.
The !ros!ects are of course bri*ht for o#li#e adertisi#*. <(commerce +ill o#ly hel! the
s!read of o#li#e adertisi#*. <stimates are that i# a cou!le of years o#li#e adertisi#*
could touch Rs B&& crore, t+o !er ce#t of the total ads!e#d i# the cou#try. $#d 1asscomPs
estimates are that o#li#e adertisi#* could touch Rs O'& crore by %&&%.
/roduct a#d serice customi:atio#
-om!a#ies that hae !o+erful bra#d a+are#ess o# the +eb all hae sites that hel!
co#sumers do somethi#* U +hether it=s co#fi*uri#* a com!uter system D+++.dell.comE
o#(li#e or offeri#* !erso#ali:ed serices like suburba# rail+ay !ass ticket i# Mumbai
D+++.rediff.comE. -o#sumer dema#d a#d e5!ectatio#s are forecast to drie made(to(
order or customi:ed !roducts +ith ra!idly shri#ki#* lead times. /roducts are co#fi*ured,
as customers +a#t them to be a#d !roide a hi*h leel of reliability, e5celle#t Iuality, a#d
lo#*er life s!a#s. 3or e.*. V0ell= com!uter D+++.dell.comE has become a leadi#*
com!a#y i# selli#* com!uters because of the customi:atio# facility it !roided o# its site.
The co#sumers could build the o+# com!uter by orderi#* the o+# co#fi*uratio#. 3or e.*.
.# 1ike=s site D+++.#ike.comE, the customer ca# become a re*istered user a#d
customi:e the shoe of his choice. The customi:atio# hi*hli*hts the alue(for(mo#ey
as!ect a#d i#duces the co#sumer to buy a !roduct that meets his o+# reIuireme#t.
U3:erst/3:,32 t-e I3ter3et C6st0mers
1o+ to be able to use the see# /=s effectiely i# order to achiee the !redefi#ed *oals of
a#y or*a#i:atio# it is im!eratie to u#dersta#d the customers.
-ustomi:atio# +ill o#ly be truly effectie if +e u#dersta#d our
customers a#d their true #eeds.
Before ada!ti#* marketi#* !ractices to the I#ter#et, the marketer #eeds to
u#dersta#d the characteristics of the o#li#e customers. The 1et users ca# be
classified i#to fie cate*ories de!e#di#* u!o# their i#te#tio# of usi#* the I#ter#et.
The fie cate*ories of users are@
D,re5te: I380rm/t,03 See4ers@ They reIuire s!ecific, timely a#d relea#t
i#formatio# about the !roducts a#d serices bei#* offered.
U3:,re5te: I380rm/t,03 See4ers@ These users reIuire somethi#* i#teresti#* a#d
useful. Somethi#* that ca# *ie them a# ed*e, ada#ta*e, i#si*ht or ee# a
!leasa#t sur!rise.
B/r2/,3 H63ters@ They are of t+o ki#d. .#e +ho look for free items o# the
i#ter#et a#d other +ho are seeki#* better deals, hi*her discou#ts etc.
E3tert/,3me3t See4ers@ they see the 2eb as a# e#tertai#me#t medium of ast
breath a#d !ote#tial a#d +a#t to e5!lore the medium before the mass *ets there.
D,re5te: B6;ers@ They +a#t to buy somethi#* ( #o+. They are sure +hat they
reIuire a#d "ust lo* o# to the 2eb to !urchase the item.
T-e E=01=,32 V/16e Pr0>0s,t,03s
The alue !ro!ositio#s of *oods a#d serices offered i# the !hysical +orld differ
!oi#tedly from those i# the di*ital +orld. The ultimate aim of the u#iersal marketer is to
!roide a com!lete e#d(to(e#d co#sumer e5!erie#ce(((ri*ht from the !romise to satisfy
his #eed to its deliery. But the !hysical +orld offers o#ly 8/oi#t Solutio#s9 +hich is
basically a solutio# of his #eeds i# terms of fu#ctio#al be#efits. $ credit card, for
i#sta#ce, allo+s co#sumers to satisfy the immediate #ecessity of setti#* a tra#sactio#. But
today=s co#sumers are also looki#* for !rocess a#d relatio#shi! be#efit(((book referrals at
#o e5tra cost or e(mail remi#ders. The !hysical +orld is #ot able to delier these be#efits
because of *a!s i# time, s!ace a#d memory. The +eb, o# the other ha#d !roides all of
these a#d more D8reerse marketi#*, for e5am!le, +here co#sumers seek out e#dors
rather tha# the other +ay arou#d9E by *ii#* the com!a#y the o+#ershi! a#d co#trol oer
all i#teractio#s +ith the co#sumer.
T-e E=01=,32 R,s4 Pr08,1es
The o#(li#e customer is #ot a fickle customer, but he is a risky !ro!ositio# #eertheless.
This is because all his o#li#e e5!erie#ce +ill i#flue#ce co#sumer !erce!tio#s about the
bra#d. If a co#sumer buys a !roduct from a retailer a#d is i#oled i# a# u#ha!!y
!urchase e5!erie#ce at the store, he +ill !u#ish the store. But if the same e5!erie#ce +ere
to occur to him at the com!a#y=s +eb site, the co#seIue#ces +ould be disastrous for the
com!a#y if he +ere to share his e5!erie#ce thou*h differe#t user commu#ities usi#* a
combi#atio# of chat rooms a#d electro#ic mails.
T-e E=01=,32 S6>>1; C-/,3
The tra#sformatio# bei#* brou*ht about the 2eb reolutio# is #ot limited to "ust the
co#sumer. The last fe+ years hae see# a flurry of su**ested busi#ess models for doi#*
busi#ess i# the I#ter#et era. 2ill the I#ter#et era si*#al the death of the retailerJ .r +ill a
#e+ i#termediary come i#to e5iste#ceJ Tech#olo*ical i##oatio#s hae made !ossible
t+o i#teresti#* deelo!me#ts(((the -hoice board system % a#d the Vertical /ortal.
Because -hoice boards are esse#tially desi*# tools a#d co#duits of i#formatio#,
com!a#ies that !roduce the !roducts #eed #ot co#trol them. 0ell uses a -hoice board
system to sell its com!uters but there are others like /oi#t.com that uses a -hoice board
to hel! customers research a#d buy +ireless !ho#es a#d accessories. The market
i#formatio# that a -hoice board collects about customer !refere#ces is absolutely
e#ormous a#d if the ma#ufacturi#* com!a#y does #ot co#trol it, the site offeri#* the
-hoice board ca# emer*e as a !o+erful i#termediary. Vertical !ortals armed +ith
so!histicated search e#*i#es, +hich s!eciali:e i# a !articular i#dustry or !roduct
cate*ory, a#d !roide customi:ed i#formatio# a#d !romote o#li#e commu#ity
deelo!me#t are the #e5t emer*e#t i#termediaries. The so!histicatio# a#d ra#*e of
i#formatio# collected o# customer !refere#ces +ill drie emer*e#t busi#ess models. The
2eb +ill thus facilitate the tra#sformatio# of the com!a#ies form tra#sactio# su!!orters
to customer relatio#shi! ma#a*ers.
Cr,t,5/1 S655ess 8/5t0rs ,3 E#M/r4et,32
6ai#* obsered the eoli#* !aradi*ms of busi#ess i# the I#ter#et era, there are fie
critical success factors that the <(Marketer has to kee! i# mi#d.
Attr/5t,32 t-e R,2-t C6st0mer is the first crucial ste!. Risi#* di*ital !e#etratio#
+ould mea# that the #umber of customer isiti#* !articular sites +ould i#eitably
*o u!. 2hile the #umber of eyeballs or !a*e ie+s has so far bee# co#e#ie#tly
used as a satisfactory measure by most +eb sites, it +ould be foolish to cater to
the +hole s!ectrum of di*ital isitors. -o#te#t has to be ery tar*et s!ecific. The
di*ital com!a#y has to select its tar*et se*me#t by fi#di#* out +hich sectio# of
customers are the most !rofitable i# terms of ree#ue tra#sactio#s a#d +ho are the
customers +ho *e#erate the ma5imum #umber of referrals. 6ere a*ai# it is
im!orta#t to #ote that the ma"ority of o#li#e customers are #ot seeki#* the lo+est
!rice. Rather they are seeki#* co#e#ie#ce aboe eerythi#* else. The !o+er of
customer referrals has #eer bee# so e#ormous, si#ce +ord of the mouse s!reads
faster tha# +ord of the mouth. <(Bay attracts more tha# half of its customers
throu*h referrals. 1ot o#ly do referred customers cost less to acIuire tha# those
brou*ht i# by adertisi#* or other marketi#* tools, they also cost less to su!!ort
si#ce they use their frie#ds +ho referred them for adice rather tha# usi#* the
com!a#ies= o+# tech#ical desk.
De1,=er,32 C03te3t V/16e t0 e32/2e t-e 6ser+s ,3terest is the critical
im!orta#ce i# retai#i#* customer !artici!atio#. This is because co#te#t seres as a
!o+erful differe#tiator. -o#te#t +ould i#clude /roduct e#ha#ceme#ts DSoft+are
!atches for *litchesE, !erso#ali:ed i#teractio#s Dthrou*h customi:ed #ai*atio#
!aths as see# o# the +eb sites of ?M a#d ToyotaE a#d /roblem Resolutio#
Du!dates of deliery schedules a#d e(mail res!o#sesE. I#te*ral to the co#ce!t of
delieri#* !ro!er co#te#t alue is i##oatio#. The retail fi#a#cial serices
i#dustry, for e5am!le, is cha#*i#* ra!idly +ith multi!le !layers "ockeyi#* for
!ositio#. /roduct i##oatio# seres as a key tool to attract #e+ customers.
/riceli#e.com, for e5am!le, has reolutio#i:ed the trael a#d related serices busi#ess
by letti#* i# a form of 8buyer drie# commerce9((((-ustomers s!ecify their desired
!rices a#d com!eti#* com!a#ies the# bid for customer reIuireme#ts. 0elieri#*
!ro!er co#te#t to make e5isti#* customers i# the traditio#al 8brick9 busi#ess s+itch
to 2eb(e#abled tra#sactio#s makes a lot of se#se because i# eery co#ceiable case,
the cost of 2eb(Based tra#sactio#s is a# order of ma*#itude less tha# the traditio#al
+ays a#d is decreasi#* at a faster rate. The cost of a# I#ter#et based ba#ki#*
tra#sactio# is less tha# o#e(te#th the cost of a huma# teller tra#sactio#. It is kee!i#*
this as!ect i# mi#d that I#dia# Ba#ks hae started toyi#* +ith the idea of setti#* u!
I#ter#et kiosks to let their lo+(alue customers settle their ba#ki#* tra#sactio#s at the
kiosk #earest to their !lace.
E3s6r,32 E#L0;/1t; is ital to the success of a#y o#li#e e#ture. This is because
acIuiri#* customers o# the I#ter#et is e#ormously e5!e#sie a#d u#less those
customers stick rou#d a#d make lots of re!eat !urchases oer the years, !rofits
+ill remai# elusie. -o#trary to the *e#eral ie+ that 2eb customers are
#otoriously fickle, they i# fact follo+ the old rules of customer loyalty. 2eb
customers stick to sites that they trust a#d +ith time co#solidate their !urchases
+ith o#e !rimary su!!lier to the e5te#t that !urchasi#* from the su!!lier=s site
becomes !art of their daily routi#e. The issue of trust is i#te*ral to the issues of
!riacy a#d security. -om!a#ies like $ma:o#.com, +hich comma#d ama:i#*
leels of co#sumer trust, hae used a ariety of e#cry!tio# tools ad sim!le ethical
decisio#s like #ot acce!ti#* mo#ey for !ublishers for i#de!e#de#t book reie+s
to mai#tai# the trust of its customers.
E#Le/r3,32 t0 8/5,1,t/te >ers03/1,Be: ,3ter/5t,03s +ith customers has bee# the
bi**est co#tributio# of the 2eb to the marketi#* strate*ists. -ustomers i#
traditio#al bricks(a#d(mortar stores leae #o record of their behaior u#less they
buy somethi#*Ka#d ee# the# the date mi*ht be sketchy. I# the di*ital
market!lace, ho+eer tech#olo*y has made the e#tire sho!!i#* e5!erie#ce a
tra#s!are#t !rocess. 3or e5am!le, if the customer e5its the +eb(site +he# the !rice
scree# a!!ears, he is a !rice se#sitie co#sumer. Such mi#ute tracki#* of customer
behaior has ma"or im!licatio#s for the +orld of adertisi#*. The I#ter#et may soo#
be used as a test bed for testi#* !rototy!es of marketi#* a#d adertisi#* cam!ai*#s.
By mo#itori#* !a*es selected, click throu*hs, res!o#ses *e#erated, a#d other
i#dicators, the com!a#y +ould be able to discoer +hich !arts of a !ros!ectie
cam!ai*# +ould +ork, thus reduci#* the risk of a !ote#tial flo!. This +ould make it
!ossible for the com!a#y to modify its !roduct offeri#*s much earlier tha# usual i#
the !roduct life cycle.
Pr0=,:,32 D,2,t/1 =/16e t0 t-e e=01=,32 503s6mer t-r062- -,s 1,8e 5;51e has
become !ossible because of customi:ed i#teractio#s a#d emer*i#* busi#ess
models. These models hae ofte# disturbed the traditio#al status Iuo a#d created
#e+ rules of busi#ess. The sectors +here #e+ busi#ess models +ill emer*e or
hae emer*ed are the music i#dustry, the fi#a#cial serices i#dustry, the trael
i#dustry, the relati#* se*me#t a#d the !ublishi#* se*me#t. 0i*ital alue is
deliered to the co#sumer by !romisi#* him co#e#ie#ce, allo+i#* the customer
to feel his o+#ershi! of the 2eb e5!erie#ce, a#d *ii#* the customer a se#se of
belo#*i#* that traerses the !hysical bou#daries.
IN
C-/32,32 >/tter3s 08 M/r4et,32
Tr/:,t,03/1 M/r4et,32 VCs I3ter3et M/r4et,32
Marketi#* oer the years more so rece#tly has started bei#* used i#tercha#*eably +ith
adertisi#*. 1o+ si#ce the e5!losio# of the i#ter#et> adertisi#* !aradi*ms hae bee#
co#sta#tly cha#*i#*.
The first 2eb adertiseme#t +as !laced o# the 6ot 2ired +eb site i# .ctober AFFM.
$TRT, M-I, S!ri#t, Volo, -lub Med, QIM$ +ere the first to try it out a#d the I#ter#et
adertisi#* has come a lo#* +ay si#ce the#. 6ere, I +ould attem!t to com!are I#ter#et
$dertisi#* +ith Traditio#al $dertisi#*@
7et=s hae a look@
Traditio#al $dertisi#*@
Traditio#al adertisi#* is static.
S!ace is #ot a restricti#* factor
The !ro!ortio# of adertisi#* to editorial is hi*h sometimes '&@'&.
0oes #ot eoke immediate actio#.
Res!o#se to the actio# is #ot immediate.
$dertiseme#ts are !assiely receied.
$dertisi#* does #ot al+ays tar*et a much focused audie#ce.
$dertiseme#ts are ubiIuitous.
2hereas I#ter#et $dertisi#* @
It is dy#amic +ith multimedia( su!!orti#* te5t a#d *ra!hics ideo sou#d all
to*ether.
S!ace is a !roblem, as re*ards si:e of the ba##ers etc.
$ +eb !a*e +ould be FAC editorial a#d FC adertisi#*.
I#okes immediate actio# as you at(least #eed to click o# the ad.
3irst res!o#se is immediate as +he# the user clicks, the !erso# is directed to other
+eb !a*e +ith more details.
The user has hi*h atte#tio# leel a#d co#ce#tratio# +hile usi#* the #et, a#d he#ce
they #otice the ad. D!lease refer the cha!terE
This ca# be much focused.
$dertiseme#ts catch users +he# they are o# the lookout for some thi#*. 3or
e5am!le the search is for trael o# a search e#*i#e there are ads of trael a*e#ts
o# the #et.
Thus +e see that adertisi#* is cha#*i#* a#d so are the rules for adertisi#* o# the
i#ter#et. So +hile desi*#i#* or formulati#* a#y adertisi#* strate*y for a bra#d o# the
i#ter#et a ma#a*er has to take i# to accou#t factors like@ (
A. The I#ter#et has made a hu*e im!act o# adertisi#*. -om!a#ies should be careful
as re*ards "oi#i#* the IT ba#d+a*o#. They should #ot adertise o# the #et "ust to
!ro"ect themseles as a tech#o say com!a#y or maybe because their com!etitor
is doi#* the same thi#*. It should be a +ell(!la##ed cam!ai*# full of s!ecific
i#formatio# a#d atte#tio# catchi#*.
%. The P#etP char*es are o# the hi*her side Dthou*h there has bee# a stee! decrease i#
the rates i# the last fe+ mo#thsE. 6e#ce !eo!le +ould be +ary of the fact that ads
co#sume a lot of o#li#e +eb time a#d he#ce they aoid clicki#* o# aera*e ads.
Therefore, adertises should be desi*#ed i# such a fashio# that they attract
atte#tio# a#d i#duce !eo!le to click o# the #et.
B. .#e more thi#* +ould be to *e#erate PsearchP s!ecific adertisi#*. This +ould
mea# that if I *ie a search for books o# the search e#*i#e, the ads dis!layed
+ould be related to the books.
M. ?e#erally, !eo!le !erceie the ads to be time co#sumi#* a#d full of u#+a#ted
i#formatio#. -are should be take# to desi*# the ads i# such a +ay that the
i#formatio# they !roide or the hy!erli#ks they !roide to a site *ies adeIuate
a#d s!ecific i#formatio#.
'. The ads a#d the subseIue#t i#formatio# o# the +eb site should be co#sta#tly
u!dated a#d hi*hli*hted i# the ads a#d thus i#duce re!eated clicks o# the ad.
). 7ast but #ot the least> the ads should be desi*#ed so as to attract atte#tio# of
ma5imum #umber of !eo!le a#d i#duci#* them to click, faili#* to do so the
adertiser e#ds u! defeati#* his o+# !ur!ose.
T-e C-/33e1 Str/te2,es 80r :e1,=er,32 D,2,t/1 V/16e t0 56st0mers
The I#ter#et era has sho+# that com!a#ies hae risked dama*i#* relatio#shi!s i# their
!hysical chai# to com!ete i# the electro#ic cha##el. The ubiIuity of the I#ter#et the fact
that cross(li#ka*es are !ossible to a#y de*ree, has mea#t that com!a#ies hae usur!ed the
role of other alue !roiders i# the alue chai# to *ai# com!etitie ada#ta*e. 2he#
com!a#ies !irate the alue chai# of the i#dustry they are esse#tially elimi#ati#* layers of
costs that are build i#to the curre#t distributio# system. 6o+eer !irati#* the alue chai#
does #ot mea# that the #umber of i#termediaries i# the +hole !rocess +ould #ecessarily
decrease. The emer*i#* eco#omic structure of <lectro#ic -ommerce +ould mea# that
!rofits +ould lie i# the i#termediate tra#sactio#s rather tha# i# the fi#al sale of the *ood.
-om!a#ies +ould aim at cutti#* do+# their traditio#al mar*i#s D*ie u! the cost !lus
!rici#* structureE a#d aim at hi*h i#e#tory tur#oer. I# retaili#* !rofitability is
!rimarily.

T-e 5-/11e32e 9,11 1,e ,3 m/3/2,32 t-ese m61t,>1e 5-/33e1s 08 e<>er,e35e
It is likely that most com!a#ies +ill fi#d that they +ill hae to i#te*rate seeral
distributio# cha##els to !roide the customer +ith a seamless !urchase !rocess. The key
challe#*e is thus to e#sure that the !erso#ali:ed #ature of the e5!erie#ce is #ot much
differe#t across cha##els. -a# a# I#ter#et bookseller allo+ its customers to e5!erie#ce
the same ambie#ce o# the #et as it does i# the bookstore or ice(ersaJ If it ca##ot the#
com!a#ies +ill face frictio# amo#* the alter#atie distributio# cha##els a#d the already
established !hysical cha##el mi*ht com!lai# about its !rofitability bei#* affected by
di*ital !urchases. This may be ty!ified by frictio# bet+ee# ehicle dealers a#d the
com!a#y oer orders trou*h a# auto com!a#y=s 2eb site. -om!leme#tary to the !roblem
of ma#a*i#* multi!le cha##els of distributio# is the deelo!me#t of i#frastructure #eeded
to su!!ort such a distributio# #et+ork. The billi#* system a#d !rici#* strate*ies hae to
be !ro!erly frames a#d e5ecuted
Buildi#* Bra#ds .#li#e
.#li#e has al+ays take# a back seat to offli#e i# bra#d buildi#*. Yet o#li#e offers the best
o!tio#s for buildi#* a mea#i#*ful bra#d, o!tio#s that did#Pt e5ist o#ly a fe+ years a*o.
-om!a#ies +ithout a solid di*ital bra#d strate*y are literally bei#* left behi#d as leaders
build #e+ di*ital bra#ds.
Reflecti#* o# the curre#t state of o#li#e adertisi#*, the ma"ority of o#li#e marketers are
doi#* a terrible "ob of buildi#* their di*ital bra#ds. $dertisers are fi*hti#* tooth a#d #ail
to !roduce the +orldPs +orst adertisi#*, actually destroyi#* their e5isti#* offli#e bra#ds
i# the di*ital realm.
3or the most !art, if o#e looks at ads that ru# duri#* to! TV !ro*rams or that a!!ear i#
to! ma*a:i#es, o#e +ill fi#d Iuality i# the adertisi#* Dee# if the ads are a bit dry a#d
bori#*E. But if o#e looks at a to! +eb site a#d ie+s a fe+ do:e# ads, it +ill be ery
difficult to fi#d Iuality adertisi#*. I# effect, the bulk of the ads o#li#e do more harm
tha# *ood to the bra#ds they are tryi#* to build.
I# o#e i#dustry after a#other, a**ressie I#ter#et u!starts are !utti#* established bra#ds at
risk, creati#* ery stro#* bra#d reco*#itio# a#d e#"oyi#* e5!losie isitor *ro+th. The
reaso# may hae less to do +ith the established bra#ds themseles tha# +ith their
ma#a*ers.
Marketers k#o+ +hat a bra#d is i# the !hysical +orld@ the sum, i# the co#sumer=s mi#d,
of the !erso#ality, !rese#ce, a#d !erforma#ce of a *ie# !roduct or serice. These ;B /s;
are also esse#tial o# the 2orld 2ide 2eb. I# additio#, di*ital bra#d builders must
ma#a*e the co#sumer=s o#(li#e e5!erie#ce of the !roduct, from first e#cou#ter throu*h
!urchase to deliery a#d beyo#d. 0i*ital bra#d builders should care about the co#sumer=s
o#(li#e e5!erie#ces for the sim!le reaso# that all of themK*ood, bad, or i#differe#tK
i#flue#ce co#sumer !erce!tio#s of a !roduct=s bra#d. To !ut it differe#tly, o# the 2eb, the
e5!erie#ce is the bra#d.
-o#sider a# e5am!le. If a co#sumer buys li!stick from a retailer i# the !hysical +orld
a#d has a# u#!leasa#t i#(store e5!erie#ce, she is more likely to blame the retailer tha# the
ma#ufacturer. But if the co#sumer !urchases that same !roduct from /rocter R ?amble=s
Reflect.com 2eb site, her +rath is more likely to be directed at /R?. Thus the o#(li#e
marketer=s ob"ectie shifts from creati#* bra#dsKat least as defi#ed i# the off(li#e +orld
Kto creati#* I#ter#et busi#esses that ca# delier com!lete, a#d com!letely satisfyi#*,
e5!erie#ces.
Yet ma#y marketers, !articularly those +hose e5!erie#ce is limited to the off(li#e +orld,
lack a cohere#t frame+ork a#d co#crete methods for achiei#* the broader ob"ecties of
o#(li#e bra#d buildi#*. These marketers #eed a# a!!roach for ali*#i#* the !romises they
make to co#sumers, the 2eb desi*# #ecessary to delier those !romises o#(li#e, a#d the
eco#omic model reIuired to tur# a !rofit. These three eleme#tsKthe !romise, the desi*#,
a#d the eco#omic modelKto*ether form the i#se!arable com!o#e#ts of a successful
I#ter#et busi#ess, or +hat mi*ht be called a di*ital bra#d.
I# o#e i#dustry after a#other, a**ressie I#ter#et u!starts are !utti#* established bra#ds at
risk, creati#* ery stro#* bra#d reco*#itio# a#d e#"oyi#* e5!losie isitor *ro+th The
reaso# may hae less to do +ith the established bra#ds themseles tha# +ith their
ma#a*ers.
Marketers k#o+ +hat a bra#d is i# the !hysical +orld@ the sum, i# the co#sumer=s mi#d,
of the >ers03/1,t;" >rese35e" /3: >er80rm/35e of a *ie# !roduct or serice. These ;B
/s; are also esse#tial o# the 2orld 2ide 2eb. I# additio#, di*ital bra#d builders must
ma#a*e the co#sumer=s o#(li#e e5!erie#ce of the !roduct, from first e#cou#ter throu*h
!urchase to deliery a#d beyo#d. 0i*ital bra#d builders should care about the co#sumer=s
o#(li#e e5!erie#ces for the sim!le reaso# that all of themK*ood, bad, or i#differe#tK
i#flue#ce co#sumer !erce!tio#s of a !roduct=s bra#d. To !ut it differe#tly, o# the 2eb, the
e5!erie#ce is the bra#d.
-o#sider a# e5am!le. If a co#sumer buys li!stick from a retailer i# the !hysical +orld
a#d has a# u#!leasa#t i#(store e5!erie#ce, she is more likely to blame the retailer tha# the
ma#ufacturer. But if the co#sumer !urchases that same !roduct from /rocter R ?amble=s
Reflect.com 2eb site, her +rath is more likely to be directed at /R?. Thus the o#(li#e
marketer=s ob"ectie shifts from creati#* bra#dsKat least as defi#ed i# the off(li#e +orld
Kto creati#* I#ter#et busi#esses that ca# delier com!lete, a#d com!letely satisfyi#*,
e5!erie#ces.
1onsu/ers 4urning to Digital 5rands
Yet ma#y marketers, !articularly those +hose e5!erie#ce is limited to the off(li#e +orld,
lack a cohere#t frame+ork a#d co#crete methods for achiei#* the broader ob"ecties of
o#(li#e bra#d buildi#*. These marketers #eed a# a!!roach for ali*#i#* the !romises they
make to co#sumers, the 2eb desi*# #ecessary to delier those !romises o#(li#e, a#d the
eco#omic model reIuired to tur# a !rofit. These three eleme#tsKt-e >r0m,se" t-e
:es,23" /3: t-e e5030m,5 m0:e1Kto*ether form the i#se!arable com!o#e#ts of a
successful I#ter#et busi#ess, or +hat mi*ht be called a di*ital bra#d.
H09 t0 B6,1: /3: M/3/2e Br/3:s A
6o+ do marketers build a#d ma#a*e di*ital bra#dsJ The marketer=s first *oal should be
to select the core !romise for a truly disti#ctie alue !ro!ositio# a!!eali#* to the tar*et
customers. 3ie of these !romises are es!ecially effectie.
0i*ital bra#ds that make tasksKfrom buyi#* a book to searchi#* for the best !riceK
faster, better, a#d chea!er offer t-e >r0m,se 08 503=e3,e35e. $ma:o#.com, like most
first(*e#eratio# electro#ic busi#esses, is fu#dame#tally built o# this !romise.
Bra#ds that make !eo!le feel like +i##ers i# +hateer actiities e#*a*e them offer t-e
>r0m,se 08 /5-,e=eme3t. <(trade, for e5am!le, !romises to hel! co#sumers ma#a*e their
fi#a#ces successfully. It has *o#e beyo#d the basicsKa !ortfolio of fi#a#cial tools a#d
researchKto offer ma#y hel!ful i##oatio#s, such as securities(tracki#* a#d (alert
serices.
?ames a#d other actiities desi*#ed to e#*a*e Da#d ee# thrillE co#sumers offer t-e
>r0m,se 08 863 /3: /:=e3t6re. .fte# these actiities make use of ;immersie;
tech#olo*ies, +hich, for e5am!le, allo+ electro#ic s!ectators of a maratho# to hear a
ru##er=s heartbeat. 0i*ital bra#ds such as Wuokka S!orts are buildi#* their e#tire
busi#esses arou#d immersie tech#olo*ies.
Such com!a#ies as ?eo-ities D+hich hel!s co#sumers e5!ress themseles by buildi#*
a#d dis!layi#* their o+# 2eb !a*esE offer t-e >r0m,se 08 se18#e<>ress,03 /3:
re5023,t,03.
-lubs or commu#ities offer t-e >r0m,se 08 .e1032,32, as +ell as co#crete ada#ta*es.
2ome#, for e5am!le, ca# e5cha#*e stories a#d ti!s +ith o#e a#other at the iVilla*e.com
site. Mercata.com !roides a more ta#*ible be#efit by a**re*ati#* the !urchasi#* !o+er
of its commu#ity of users a#d thus hel!i#* them *et better !rices for a broad ra#*e of
mercha#dise.
(r0m Pr0m,se t0 De1,=er;
The !romises made by di*ital bra#ds are #ot u#iIue to the I#ter#et, but the medium=s
i#teractie ca!abilities make it easier for di*ital bra#ds to delier o# their !romises
Iuickly, reliably, a#d re+ardi#*ly. They ofte# do so +ith a sco!e that their la#ded
cou#ter!arts +ould be hard(!ressed to match. I# !ractice, this mea#s that !romises must
be tra#slated i#to s!ecific i#teractie fu#ctio#s a#d 2eb desi*# features collectiely
*ii#* co#sumers a seamless e5!erie#ce. Such desi*# features as o#e(click orderi#* a#d
automated sho!!i#* hel! delier the !romise of co#e#ie#ce> collaboratio# tools such as
chat rooms or rati#*s fu#ctio#s make it !ossible to reali:e the !romise of belo#*i#*.
Ma#a*ers should#=t u#derestimate the challe#*es of this tra#slatio# !rocess. 2hat, for
i#sta#ce, does it mea# to build a di*ital bra#d arou#d a !romise of co#e#ie#ce i# the
*rocery i#dustryJ 2hat ki#d of co#te#t, if a#y, do you #eedJ $#d ho+ about chat rooms,
!erso#ali:atio#, o#e(click orderi#*, a#d collaboratie filteri#*J 0i*ital bra#d builders
ca#=t afford to fall short of +hat they hae !romised, si#ce com!etitors are al+ays a click
a+ay, but they +aste ca!ital if they offer more tha# is #ecessary to make sales a#d kee!
customers.
Tech#olo*y dramatically differe#tiates di*ital bra#dsKfor both customers a#d
shareholdersKi# +ays that +ill become i#creasi#*ly clear as they e#ter their seco#d a#d
third *e#eratio#s. To be certai# of ide#tifyi#* all of the desi*#s that make it !ossible to
delier o# a !romise a#d to build a iable eco#omic model, today=s di*ital bra#d builders
must e5!lore at least si5 *rou!s of desi*# tools. These tools are sufficie#tly robust
tech#olo*ically to hel! create a disti#ctie a#d relea#t user e5!erie#ce, a#d they are
be*i##i#* to demo#strate their ability to make mo#ey for the di*ital bra#d builders usi#*
them.
Pers03/1,B/t,03 T001s
Tools such as the soft+are that creates !erso#ali:ed i#terfaces bet+ee# e(busi#esses a#d
customers hold treme#dous !romise for alue e5cha#*e a#d co#te5tual commerce. To be
sure, the alue of !erso#ali:atio# has yet to be fully demo#strated i# !ractice. D3e+er
tha# A' !erce#t of isitors to YahooL hae chose# to set u! a ;My YahooL; !a*e for
themseles.E /erso#ali:atio# tools also !rese#t risks, as +ell as real o!eratio#al
challe#*es, such as ma#a*i#* !riacy, i#trusie#ess, a#d o!!ortu#ity costs. 3or that
reaso#, ma#y !ractitio#ers still Iuestio# the short(term retur# o# i#estme#ts i#
!erso#ali:atio# tools.
C011/.0r/t,=e T001s
They facilitate +ord of mouth, or +hat mi*ht be called ;bra#ded !erso#(to(!erso#
commu#icatio#s;Kfor i#sta#ce, the rati#*s that buyers offer sellers o# eBay, the 7a#ds=
<#d ;sho! +ith a frie#d; feature, Ra*i#* Bull=s discussio# boards, a#d /ert=s iral
marketi#* D+hich e#coura*es co#sumers to e(mail their frie#ds i#structio#s for obtai#i#*
free /ert /lus sam!lesE. -ollaboratie tools such as co#sumer rati#*s, thou*h esse#tial for
co#te#t( a#d commu#ity(orie#ted di*ital bra#ds, are u#derutili:ed.
P6r5-/se#>r05ess Stre/m1,3,32 T001s
They elimi#ate such !hysical(+orld co#strai#ts as the #eed to +alk i#to a store to
!urchase a !roduct. $ma:o#=s o#e(click orderi#* system, for e5am!le, eases tra#sactio#s
by s!ari#* re!eat customers the i#co#e#ie#ce of i#!utti#* tra#sactio# data. /ea!od=s
sho!!i#* lists sae co#sumers time by recordi#* the !roducts they !urchased !reiously.
The fact that most e(sho!!ers dro! out of the buyi#* !rocess duri#* the last clicks
su**ests that im!roeme#ts alo#* these li#es mi*ht be ery +orth+hile.
Se18#ser=,5e T001s
They allo+ customers to obtai# a#s+ers a#d results +ithout the delays a#d
i#co#siste#cies that more ofte# tha# #ot characteri:e huma# efforts to !roide assista#ce.
Such tools i#clude soft+are for tracki#* orders, !re!ari#* stateme#ts, a#d cha#*i#*
addresses o#(li#e. $lthou*h i#cumbe#ts ofte# hae difficulty i#te*rati#* these 2eb(based
tools +ith le*acy systems, the tools are i#dis!e#sable for ba#ks, retailers, a#d other e(
busi#esses that ha#dle lar*e olumes of tra#sactio#s.
D0#,t#;06rse18 >r0:65t :es,23 t001s
They allo+ co#sumers to customi:e !roducts a#d serices, either +ith the hel! of
co#fi*uratio# o!tio#s or from scratch. 0ell -om!uter, for e5am!le, lets customers desi*#
their o+# systems o#(li#e by choosi#* from a ra#*e of o!tio#s> customers of Music.com
a#d 7iste#.com ca# do+#load the music of arious artists o#to a si#*le com!act disc. But
the #eed to create ma#ufacture(to(order systems to ca!ture the !ote#tial of these tools
may make them u#eco#omical i# i#dustries that, u#like soft+are a#d music, are #ot based
o# i#formatio#.
D;3/m,5#>r,5,32 t001s
They oerthro+ the tyra##y of the fi5ed retail !rice, allo+i#* !rices to fit the !articular
circumsta#ces of i#diidual tra#sactio#s. Such tools, +hich come i# ma#y forms, i#clude
eBay=s a#d uBid=s auctio#s a#d /riceli#e=s offer to ;#ame your o+# !rice.; 0y#amic
!rici#*, a !ote#tial ;killer a!!licatio#; i# ma#y cate*ories, could !ermit customers to
make a +ider ariety of trade(offs bet+ee# !rice a#d alue tha# is !ossible i# the curre#t
+orld, +here most sellers offer a si#*le fi5ed !rice to all buyers.
-a# a marketer be trusted +ith se#sitie !erso#al a#d fi#a#cial i#formatio#J -o#sumers
i#creasi#*ly e5!ect their ide#tity a#d !erso#al i#formatio# to remai# co#fide#tial +he#
they *o o#(li#e to sho!, a#d that, cou!led +ith fear of o#(li#e fraud, is +hat sto!s ma#y
co#sumers from ee# co#sideri#* di*ital tra#sactio#s.
Buildi#* Trust
Bri#*i#* the si5 eleme#ts of trust to your I#ter#et alue !ro!ositio#, thou*h, does #ot
automatically lead to dee!, trusti#* relatio#shi!s. That comes throu*h a ste!(by(ste!
!rocess i# +hich the co#sumer a#d marketer e5cha#*e alue. <ach time the co#sumer
olu#teers some !erso#al i#formatio#, the marketer re+ards the co#sumer +ith a more
!erso#ali:ed serice. This mutual *ie(a#d(take ee#tually leads to a# ada#ced
collaboratio# based o# trust.
The research has ide#tified four sta*es of trust buildi#*@
Attr/5t,03
$t the first sta*e, the co#sumer bro+ses the site a#d ee# makes a tra#sactio#. 1o real
relatio#shi! e5ists bet+ee# the marketer a#d the co#sumer, a#d #o#e may be +arra#ted.
The best strate*y is to !roide the co#sumer +ith i#formatio#, +ithout dema#di#* a#y i#
retur#. $t first blush, this may seem like a# imbala#ce bet+ee# +hat marketers *ie a#d
+hat they *et back. But +hat the co#sumer is *ii#* the marketer is somethi#* Iuite
aluable@ time a#d atte#tio#, alo#* +ith a ie+ of ho+ the site is traersed.
The time a#d atte#tio# tra#slates i#to the ;mi#d share; #eeded to create a bra#d
!refere#ce. The aera*e co#sumer o# Ralsto# /uri#a=s 0o* -ho+ 2eb site, +hich offers
#o !roduct for sale, s!e#ds more tha# si5 mi#utes !er sessio# lear#i#* ho+ to care for
!ets. That=s far more timeKa#d co#ce#tratio#Ktha# co#sumers deote to a B&(seco#d
TV ad.
User#Dr,=e3 Pers03/1,B/t,03
$t the seco#d sta*e, co#sumers start sha!i#* 2eb !a*es to their s!ecific tastes. 3or
e5am!le, -0#o+ customers ca# !erso#ali:e their home !a*es +ith faorite artists a#d
+ish lists. The com!a#y sho+s that it is +illi#* to delier some alue to the co#sumer
before *ai#i#* fi#a#cially. -harles Sch+ab #o+ i#ites users to set u! a !erso#al !a*e
throu*h the MySch+ab serice, +here users ca# #ot o#ly track stocks but also *et
customi:ed s!orts #e+s, +eather i#formatio#, a#d ee# cartoo#s. 4sers are#=t reIuired to
o!e# a Sch+ab accou#t to do so.
M/r4eter#Dr,=e3 Pers03/1,B/t,03
I# the third sta*e, marketers be*i# usi#* i#si*hts !roided by co#sumers to beam
i#formatio# back to them. Thus, -0#o+ uses its k#o+led*e of co#sumersKdeelo!ed at
the earlier sta*es of trustKto su**est !roducts they mi*ht like +hich co#sumers the# rate
as either o#( or off(tar*et. $s the !rocess co#ti#ues, -0#o+ lear#s co#sumers=
!refere#ces a#d :eroes i# o# +hat they really like. It is +orth em!hasi:i#* that marketers
should rei# i# their ur*e to make immediate use of data a#d !erso#ali:atio# tech#olo*ies.
This a!!roach takes !atie#ce, a trait lacki#* at ma#y marketi#* or*a#i:atio#s. Too ofte#
they bombard co#sumers +ith !romotio#al offers as soo# as they *et their ha#ds o# a# e(
mail address. 2e su**est a *radual a!!roach, as #othi#* a**raates ma#y I#ter#et users
more tha# u#solicited e(mail.
$ best !ractice is to let the user set the !ace of !erso#ali:atio# a#d co#tact from
marketers. 4ser(drie# !erso#ali:atio# should !recede marketer(drie# offers. Rece#t
research by /rofessor You#*me Moo# of the 6arard Busi#ess School has sho+# that
!remature !erso#ali:atio# ca# backfire. Moo# fou#d that co#sumers +ere less likely to
buy !roducts !itched to them throu*h messa*es if the messa*es +ere based o#
i#formatio# they had #ot *ie# to the marketer themseles. $ccordi#* to ;Is Your 2eb
Site Socially SayJ; a MayUNu#e AFFF 6arard Busi#ess Reie+ article, co#sumers
+ere more likely to buy +he# the messa*e +as !erso#ali:ed a#d based o# i#formatio#
they had olu#teered.
Tr6st#B/se: C011/.0r/t,03
$t the fi#al sta*e, the marketer a#d the co#sumer +ork to*ether closely. The co#sumer
*ies the marketer access to the most se#sitie !erso#al i#formatio# Dfamily, fi#a#ces, or
healthE a#d i# tur# *ai#s customi:ed e5!erie#ces a#d co#sultatie !roblem(soli#*
assista#ce. I# our ie+, ery fe+ o#(li#e marketers hae reached this leel of trust +ith
their co#sumers.
The !ace of alue e5cha#*e aries by i#dustry a#d situatio#. 3or e5am!le, mort*a*e
sho!!ers may !roide fi#a#cial i#formatio# i# their ery first i#teractio# if they #eed a
Iuick a#s+er. I# other situatio#s, the !rocess moes more slo+ly. $#d because costs rise
as marketers *o u! the trust staircase, they must decide "ust ho+ far they #eed to *o to
create the most !rofitable relatio#shi!s. Trust buildi#* at a basic leel may be e#ou*h for
some marketers, !articularly if *reater trust does #ot bri#* *reater s!e#di#* by
co#sumers.
.#ly by sustai#i#* trust ca# marketers e5!ect to establish e#duri#* relatio#shi!s +ith
co#sumers, a#d it is by kee!i#* a ce#tral focus o# that idea that marketers build a alue
e5cha#*e that deliers co#siste#t a#d !ro*ressie mutual be#efits. 2ith the si5 buildi#*
blocks of trust i# !lace, marketers should be able to chart a course for buildi#* *reat o#(
li#e busi#esses.
C/se St6:;
Re:,88.50m
Re:,88.50m is o#e of the !remier +orld+ide o#li#e !roiders of #e+s, i#formatio#,
commu#icatio#, e#tertai#me#t a#d sho!!i#* serices for I#dia#s.
K#o+# for bei#* o#e of the first +ith #e+s a#d !roidi#* accurate a#d trust+orthy
i#formatio#, Rediff.com !roides a# ideal !latform for I#dia#s +orld+ide to co##ect
+ith o#e a#other o#li#e fast. Rediff.com is committed to offeri#* a !erso#ali:ed a#d a
secure surfi#* a#d sho!!i#* e#iro#me#t.
Rediff.com additio#ally offers the I#dia# $merica# commu#ity o#e of the oldest a#d
lar*est I#dia# +eekly #e+s!a!er, I#dia $broad.
3ou#ded i# AFF), Rediff.com is headIuartered i# Mumbai, I#dia +ith offices i# 1e+
0elhi a#d 1e+ York, 4S$
Re:,88.50m is the leadi#* o#li#e #et+ork tar*eti#* I#dia a#d I#dia#s +orld+ide. They
!roide ori*i#al a#d third(!arty bra#ded co#te#t throu*h i#terest(s!ecific cha##els,
e5te#sie 2eb(based commu#ity features such as free e(mail, chat, !erso#al home !a*es
a#d a# I#dia ada!ted search e#*i#e, a#d the lar*est e(commerce !latform i# I#dia. They
hae desi*#ed their 2eb(site offeri#*s by kee!i#* the slo+ access s!eed aailable to
most I#dia# I#ter#et users i# mi#d. Rediff beliees that it has created the o#li#e #et+ork
of choice for I#dia# I#ter#et users, as +ell as created a hi*hly desirable adertisi#* a#d e(
commerce !latform for adertisers a#d mercha#ts res!ectiely.
They beliee that their success to date is attributable to the follo+i#* key success factors@
E. (056s 03 I3:,/ F I3:,/3s 0r1:9,:e@ They sere the o#li#e #eeds for I#dia#
I#ter#et users a#d !eo!le of I#dia# ori*i# +orld+ide a#d hae deelo!ed their !roduct
offeri#*s based o# the dema#ds a#d the reIuireme#ts of their user base. They hae bee#
i# busi#ess si#ce AFF), a#d he#ce hae a lar*e archie of I#dia# focused co#te#t. Rediff
!roides their users +ith@
G Broad ra#*e of commu#ity offeri#*s such as, chat, si#*les cha##el a#d !erso#al
home!a*es that allo+s users to i#teract +ith other I#dia#s +ith similar i#terests>
G Search e#*i#e, +ith tech#olo*y from I#ktomi, that has bee# customi:ed to !roide I#dia
relea#t co#te#t as to! searches for Iueries by users>
G -ha##els that are relea#t to I#dia# i#terest, e * 6orosco!e, -ricket, Si#*les, I#dia#
fi#a#ce, I#dia# music a#d I#dia# moies>
G 4!(to(date #e+s focused o# I#dia, co#sta#tly u!dated by their i#(house editorial staff,
featuri#* i#terie+s +ith seeral leadi#* I#dia# !oliticia#s, moie stars, a#d celebrities>
G $irli#e a#d trai# schedule a#d aailability, thereby elimi#ati#* the #eed for I#dia# users
to Iueue u! i# air!ort a#d trai# statio#s>
G $# easy to u#dersta#d i#terface that strikes the ri*ht bala#ce bet+ee# a# attractie
isual a!!eara#ce a#d fast do+#(load times for !eo!le accessi#* the site +ith lo+ s!eed
modems.
). C0m>re-e3s,=e 031,3e 088er,32@ Rediff beliees that it is ;o#e(sto!(sho!; for I#dia#
I#ter#et users by satisfyi#* all their o#li#e reIuireme#ts. By !roidi#* them +ith locally
relea#t co#te#t, commu#ity fu#ctio#ality, a#d ability to sho! o#li#e, it has bee# able to
attract a#d retai# users o# its site for e5te#ded !eriods. They beliee that their e5te#sie
offeri#*s cou!led +ith their a**ressie bra#di#* !ro*ram hae made them the most
reco*#i:ed I#ter#et bra#d i# I#dia. To hel! adertisers reach the Rediff audie#ces, they
hel! them build their sites, desi*# their ba##ers a#d s!o#sorshi!s a#d lead them throu*h a
com!rehe#sie serice to assist their marketi#* efforts o# the #et.
?. Le/:,32 e#50mmer5e >1/t80rm@ Rediff has created the Rediff Market!lace +hich
!roides I#dia# mercha#ts a *uide a#d effectie +ay to moe from bei#* merely
adertisersHs!o#sors o# their site to selli#* their *oods a#d serices o#li#e.
To demo#strate the alue of this !ro!ositio# they created a Rediff Book Store a#d Music
Store o#li#e a#d the i#itial !ositie results from them has allo+ed them to si*# u! more
mercha#ts.
Till date they hae !ut o#li#e seeral do:e# mercha#ts i# I#dia a#d are #o+ com!leti#*
deelo!me#t of soft+are that +ill allo+ mercha#ts to automatically si*#(u!, create their
o+# store a#d tra#sact busi#ess o# the +eb.
.# the other ha#d they hae created the #ecessary facilities to allo+ their site isitors to
easily search a#d !roide the ri*ht *oods a#d serices i# the Rediff Market!lace.
Pr0m0t,03/1 Str/te2,es
Rediff *e#erally beliees /:=ert,s,32 ,3 m/ss me:,/ like Teleisio#, 1e+s!a!er etc.
$!art from these *e#eral mea#s of adertisi#* it also beliees i# !romoti#* the site
throu*h 9e. >r0m0t,03. The best e(commerce site i# the +orld is +orthless if #o o#e
ca# fi#d it. But, too ofte#, ecommerce start(u!s use shot*u# marketi#*, sim!ly
adertisi#* eery+here, to eeryo#e, i# the ho!e that a fractio# of a !erce#t of those +ho
see the ads +ill res!o#d.
Ma"ority of the Rediff customers come throu*h search e#*i#es, such as Yahoo, ?oo*le,
$ltaVista a#d others. So they see to it that they are *etti#* their site listed, maki#* sure
that their site sho+s u! hi*h i# the list of search results a#d e#suri#* that their site is
listed for s!ecific key+ords +hich is a scie#ce i# itself.
Rediff also beliees i# 0r: 08 M06t- !olicy, a# offli#e strate*y. This ca# be do#e o#ly
if they !roide i##oatie !roducts a#d serices to its customers a#d to see that +hat the
made by them is bei#* fulfilled, more the #umber of !eo!le isiti#* their site more is the
a+are#ess made by them to other !eo!le.
(0r E.2. Rediff offers VRediff Blo*s= a serice that allo+s a user to !ublish their thou*hts
a#d ideas directly o# the +eb. Rediff.com is the first I#dia# +ebsite to offer Blo*s to
I#dia#s +orld+ide usi#* the latest i# the i#ter#et tech#olo*ies.
$ Blo* or a +eb lo* is a !erso#al or co#ersatio#al +ebsite u!dated freIue#tly +ith
ie+s, li#ks, comme#tary a#d such other i#formatio# relea#t to a !articular to!ic. This
could com!rise of li#ks a#d comme#tary from other +ebsites o# to!ics of i#terest such as
+riti#* diaries, !oetry, u!loadi#* !hotos, !roidi#* !ro"ect u!dates, #e+s about a
com!a#y, a !erso# or a# idea a#d ee# fictio#. This serice e#ables the user to e5!ress
his o!i#io#s, be heard a#d make frie#ds o# Rediff.com.
The !rocess of setti#* u! a#d u!dati#* a blo* is ery sim!le. $ll a user #eeds is a
Rediff.com accou#t. Thereafter a blo* ca# be set u! i# three sim!le ste!s, starti#* +ith
e#teri#* a sub"ect, choosi#* a tem!late a#d maki#* a# e#try i#to the blo*.
B6,1:,32 Tr6st
.#li#e users e5!ect certai# thi#*s from the serice !roider i.e. easy to use a#d trouble
free !rocedures like +hile creati#* a #e+ Rediffmail accou#t, the i#formatio# asked by
Rediff to the o#li#e user is ery s!ecific a#d u! to the !oi#t. $ccordi#* to them trust is a#
o#*oi#* "ob, at #o !oi#t ca# they afford to loose a aluable customer. .# its +ebsite they
hae *ot a Rediff Market!lace o!tio# +herei# a customer ca# buy the !roducts o#li#e.
Rediff has *ot this system +hereby if a customer after sho!!i#* is #ot satisfied +ith the
!roduct !urchased from Rediff, they ca# retur# the *oods back to Rediff ee# if they
hae used the !roduct. Rohit Varma, -hief Marketi#* .fficer said that it is these small
thi#*s that o#e has to take i#to co#sideratio# a#d +hich ca# create a se#se of trust i# the
mi#ds of the customers.
C) F H632/m/
The first full(fled*ed +ebsite i# the I#dia# market to start broadcasti#* to cater to this
#eed +as -o#test%2i# D+++.co#test%+i#.comE, #o+ sim!ly c%+.com, kee!i#* i# mi#d
the im!atie#ce leels of users o#li#e. -%2 ed*ed its +ay slo+ly but steadily i#to the
mi#ds a#d o#to the fi#*erti!s of I#dia# users by striki#* barter deals +hich i#oled their
4R7 DI#ter#et addressE bei#* me#tio#ed i# traditio#al media i# e5cha#*e for hosti#*
co#tests a#d !romotio#s o# their site. 2ith e#thusiasm that ra# dee!, but !ockets that
did#Pt, $lok Ke"ri+al, -<., did #ot s!e#d o# the traditio#al adertisi#* a#d /R cha##els
from the time they +e#t lie i# 1oember AFFG. .# the other ha#d, 6u#*ama.com took
the other route, lii#* u!to its #ame +he# it lau#ched i# March FF. .#li#e adertisi#*,
!rofessio#al /R, a#d attractie !romotio#s i# !romi#e#t #et(say commu#ity ha#*outs
like #i*ht clubs a#d cyber cafes i# Bombay, Ba#*alore a#d 0elhi all +e#t to+ards
literally raisi#* a H632/ma about this #e+ +ebsite i# almost #o time at allL
The busi#ess model of sites like -%2 a#d 6u#*ama is sim!le ( they beliee i# the
I#ter#et ma5im@ ;503te3t ,s 4,32;. $#d they kee! that co#te#t fresh. .f course, co#te#t
for them is #ot #e+s a#d features, but co#tests, !romotio#s a#d i#ce#ties re+ardi#*
users for s!e#di#* time o# their sites. $#d there are four ste!s i#oled i# maki#* this
busi#ess model !ay off for them@
Cre/t,32 C03te3t
Both 6u#*ama a#d -%2 hae a**ressie teams that i#teract +ith arious bra#d a#d
marketi#* ma#a*ers to *et more bra#ds o# their sites, +ith hu#dred of bi* bra#ds like
/hili!s, 677, 40V a#d So#y already e#ticed by +hat the medium has to offer. -o#tests
a#d !romotio#s are either created e5clusiely for the 1et, or are o#li#e ada!tatio#s of
e5isti#* traditio#al +orld co#tests.
Attr/5t,32 Users
-%2 has embla:o#ed its bra#d ( their 4R7 ( i#to the mi#ds of curre#t a#d !ote#tial
members by cross !romotio# i# traditio#al media like outdoor, !ri#t, teleisio#, a#d ee#
o# !roduct !acka*i#*. 6u#*ama chose to storm the market a#d create a# ide#tity a#d
bra#d throu*h !hysical co#tact i# the real +orld +here their tar*et audie#ce ca##ot miss
them. S!ecial i#ce#ties to cyber cafe o+#ers also e#sure !romi#e#t dis!lay a#d re+ards
for *etti#* their members to si*# u!.
Kee>,32 Users
By co#sta#tly addi#* #e+ co#tests a#d !romotio#s to their sites, -%2 a#d 6u#*ama
e#sure that their isitors kee! comi#* back. 6u#*ama.com has ee# *o#e to the e5te#t of
*ii#* a+ay !ri:es eery hour, by the hour, +ith oer A&& !ri:es bei#* distributed daily
from their officeL
Se11,32 E;e./11s
Today, -%2 has a database B',&&& stro#* D*ro+i#* at B'C !er mo#thE, all +ith authe#tic
re*istratio# details ( after all fake details mea#s that your !ri:e may #eer reach you.
6u#*ama, thou*h a rece#t e#tra#t, is fast catchi#* u!. $s these #umbers *ro+, these
eyeballs +ill attract adertisers to the sites, bri#*i#* i# adertisi#* ree#ue, either for
ba##ers or for !aid !romotio#s. -%2 already has I#tel adertisi#* o# their !a*es, +hile
the 6u#*ama !a*es are still ba##er(free.
T-e (6t6re
-%2 has already fi#alised !la#s for /a# $sia# reach, a#d are looki#* for strate*ic
!art#ers for the $merica# a#d <uro!ea# market, to become the +orldPs co#test !ortal ( a
o#e(sto! site for co#tests a#d !romotio#s. ;3ree; seems to be a four lettered f(+ord for
1eera" Roy, -<., a#d 6u#*ama.com +ho em!hatically states that his site is #ot a co#test
freebie site ( it is e/romotio#s sites that +ill co#ti#ue hel!i#* bra#ds *et their messa*e to
o#li#e customers throu*h i#ce#ties.
2hateer ta* you !ut o# them ( be it freebies, i#ce#ties, co#tests, !romotio#s, or bra#d(
buildi#* e5ercises i# cybers!ace, there are more eyeballs bei#* attracted, a#d slo+ly but
steadily, more bra#ds bei#* attracted by these eyeballs
(/.m/rt
3abmart is o#e e(tailer, +hich kee!s hitti#* the headli#es ofte#, as much for its #e+
i#itiaties, as +ell as for re!orts that say that Ru!ert Murdoch a#d 0hirubhai $mba#i
hae looked at eIuity stakes i# the e(tailer. So, +hat makes this A&(mo#th(old o#li#e store
clickJ 3abmart +e#t o#li#e o# Se!tember %F last year, a#d !rocessed A% tra#sactio#s i#
its ery first day of o!eratio#. 2hat follo+ed +ere days of stru**le +he# the store
suried o# mi#imal tra#sactio#s. But sho!!ers ke!t trickli#* i#, a#d there +as #o day
+he# 3abmart failed to attract at least o#e reIuest. The store #o+ re*isters about %'&
tra#sactio#s a day, +ith the aera*e tra#sactio# amou#t hoeri#* at arou#d Rs %&&.
$ leadi#* IT ma*a:i#e i# its rece#t surey o# I#dia# e(commerce e#*i#es !icked 3abmart
as the Vbest focused= e(commerce sho!. More rece#tly, readers of Chip ma*a:i#e oted
3abmart the Vbest irtual su!erstore=. 3abmart ack#o+led*es that #ot all e(commerce
e#tures +ill surie a#d e5!ects 8most of them to fall by the +ayside9. Talki#* to
Praxis, K. Vaithees+ara#, Vice(/reside#t, Marketi#*, 3abmart, outli#ed ho+ his
com!a#y=s e(taili#* model is differe#t from hori:o#tal !ortals a#d other e(commerce
e#*i#es. Bei#* a# early moer, a#d #o+ a# established o#e, the 3abmart model is #o+
co#sidered a be#chmark for fi#a#cial i#stitutio#s looki#* at e(commerce e#tures.
6o+ it 0iffers
$ccordi#* to Vaithees+ara#, hori:o#tal !ortals offer all thi#*s to all !eo!le, a#d o#li#e
sho!!i#* +ill remai# a small !art of such e#tures. These !ortals are #ot focussed e(
commerce e#*i#es. 3abmart beliees i# !roidi#* de!th rather tha# +idth. Starti#* +ith
books a#d music, it #o+ offers a +ide collectio# from +ithi# these cate*ories a#d,
accordi#* to Vaithees+ara#, it focuses o# !roidi#* hi*h leels of customer satisfactio#.
The store is desi*#ed o# the Vfi#d +hat you #eed fast= !olicy. Take the bookstore, for
i#sta#ce. $ sho!!er ca# use the o!tio# of searchi#* either by title, or firstHlast #ame of the
author. There is also a# additio#al facility of ada#ced search for those +ho +ould like to
search by combi#i#* t+o or three o!tio#s.
The search o!tio#s are similar for the 3abmart music store. .#ce the customer has
selected the items to be !urchased, heHshe the# clicks o# the Vadd to sho!!i#* cart= ico#
a#d *oes throu*h the e#tire sho!!i#* !rocess. $t the time of co#firmi#* hisHher order, the
sho!!er is *ie# a refere#ce #umber that ca# be used to track order status. 3abmart is
ba#ki#* o# the irtual store=s de!th i# offeri#*s a#d customer satisfactio# i#itiaties to
add alue to its e(taili#* busi#ess. $#d this, it ho!es, +ill be the fi#al differe#tiati#*
factor.
The 3ulfillme#t /rocess
It=s easy to lose a# o#li#e customer. 3or him to !refer a# o#li#e store to a #ei*hbourhood
sho! +ould hae bee# a difficult decisio# i#oli#* a fu#dame#tal behaioural cha#*e.
$#d the e(tailer "ust ca##ot disa!!oi#t the customer i# serice or deliery. I# fact,
3abmart is to shortly i#troduce a# o#li#e call ce#ter Dlie chatE +here a customer ca# *et
i#sta#t feedback o# hisHher Iueries. 3abmart=s fulfillme#t !rocess ca# be broadly
classified i#to@
Sourci#* i#oles collecti#* arious customer orders from +holesalerHdistributorH
!roductio# a*e#cies o# a# o#*oi#* basis.
$t the co#solidatio# sta*e, the sourced items from the +holesaler are se*re*ated
accordi#* to i#diidual orders a#d fi#ally !acked o# the basis of i#diidual
co#si*#me#ts. .#ce the allocatio# of each order is com!leted, shi!me#ts are made
throu*h Blue 0art couriers. The key eleme#t here is 3abmart=s com!letely automated a#d
2eb(based solutio#, +hich +orks o# a irtual i#e#tory model +here 3abmart does #ot
hold a#y i#e#tory at all.
D e l i v e r y
O r d e r C o n s o l i d a t i o n
S o u r i n !
6a2/art 7 6ulfill/ent Pro%ess
The store is still able to meet the deliery commitme#t +ithi# O% hours ty!ically. 3abmart
claims to shi! about F' !er ce#t of its orders +ithi# MG hours, a feat it ca# achiee
because of its ra!!ort +ith the bi* book a#d music com!a#ies i# I#dia. 3abmart also has
a see#(day, #oIuestio#s( asked retur# !olicy u#der +hich customers ca# retur# a#y
items, +ith a small #ote stati#* the reaso# for dissatisfactio#, a#d 3abmart bears all
shi!!i#* e5!e#ses.
The /ayme#t Mecha#ism
The e(tailer has !ut i# !lace t+o ki#ds of security mecha#isms U o#e for debitHcredit card
tra#sactio#s a#d the other for co#fide#tiality of !erso#al details. 3abmart a#d -itiba#k
lau#ched +hat they thou*ht as *t-e 90r1:+s m0st se56re+ !ayme#t !rocess o# the
I#ter#et i# 0ecember AFFF. I# this mecha#ism, the card #umber is #ot !roided to the
o#li#e store but *ie# directly to the ba#k. I# additio#, the customer #eeds to key i# the
/I1 to e#sure that #o misuse of the card is !ossible. $#d si#ce this is do#e o# a# SS7
DSecure Socket 7ayerE e#cry!ted li#k, accessi#* the card #umber +hile it is i# tra#sit is
#ot !ossible. Se#sitie customer details are accessible o#ly to officials i# the ra#k of
Vice( /reside#t a#d aboe a#d #ot to all em!loyees. 3abmart=s !riacy !olicy clearly
states that customer details are #ot sold, re#ted or leased out to third !arties.
2hy 3abmart .utsources
3abmart outsources most fu#ctio#s +hich hae #o direct beari#* o# the customer. 3or
i#sta#ce, hosti#* is ma#a*ed by Bharti Telecom, the !ayme#t *ate+ay is outsourced to
-itiba#k a#d #et+orki#* is i# the ha#ds of 2i!ro a#d -om!aI. $ccordi#* to
Vaithees+ara#, 3abmart has ide#tified four areas likely to im!act a customer@ the bra#d,
the relatio#shi!s +ith book a#d music com!a#ies, the store itself, a#d customer
fulfilme#t.
$ll other fu#ctio#s are outsourced. <e# customer fulfilme#t, to a# e5te#t is ma#a*ed
throu*h outsourci#*. Blue 0art deliers *oods to G'& !oi#ts across the cou#try. Similarly,
e5ecutio# of res!o#ses to 3abmart=s customers is do#e throu*h a# e5ter#al e-RM firm. If
a !ortal is com!ared to a huma# body, all its !arts e5ce!t the brai# ca# be outsourced, a#d
3abmart claims to be the brai#.
.#e freIue#tly asked Iuestio# is ho+ iable is outsourci#*. 2hile it is true that 3abmart
te#ds to s!e#d more resources o# the outsourci#* model, accordi#* to Vaithees+ara#, it
certai#ly !ays, es!ecially +he# the time *ai#ed is co#sidered. If 3abmart had to deelo!
a#d e5ecute all the o!eratio#s by itself, it +ould #ot hae bee# !ossible for the com!a#y
to make the site fu#ctio#al i# si5 mo#ths.
(/.m/rt+s L032 Term V,/.,1,t;
3abmart=s ada#ta*e may be that it is a !ure e(commerce e#ture> adertiseme#t
ree#ues are #ot cou#ted u!o#. I# fact, the store does #ot +elcome ads, e5ce!t those
relati#* to books a#d music. $#y aailable irtual real estate is used for i#(sho! !romos.
2ith i#itial V- fu#di#* of about Rs '.' crore, the o#li#e store rece#tly mo!!ed u!
a#other Rs %' crore +ith seco#d rou#d fu#di#* from e#ture ca!italist
2ith a re*istered customer base that is likely to *ro+, the store is co#fide#t about ree#ue
flo+, a#d Vaithees+ara# says 3abmart ho!es to break ee# by its third year +he# it
e5!ects busi#ess tur#oer to touch Rs M' crore.
$ "e+ellery store +as lau#ched rece#tly, +hile a *rocery sho! is o# the a#il, +ith the
ultimate aim to emer*e as a focused irtual su!erstore. The "e+ellery store, +hich +e#t
o#li#e i# Nu#e +ith about ',&&& items, tar*ets the im!ulsie buyer. $#d "e+ellery
tra#sactio#s are e5!ected to drie u! the aera*e alue of a# o#li#e tra#sactio#. The
*rocery sho! +ill attract o#li#e customers for #eed(based !urchases. 3abmart=s aim is to
achiee a mi5 i# customer demo*ra!hic !rofile U +ith both im!ulsie a#d #eed(based
co#sumers. 3abmart +ould also #eed to *ear u! for com!etitio# from !layers such as
2ith a customer base of oer %',&&&, 3abmart ho!es #ot too ma#y +ill s+itch loyalties.
The e(tailer ho!es to co#solidate further i# the time that com!etitors +ill take to ada!t to
the dy#amics of the 1et busi#ess. Says Vaithees+ara#@ 8There=s #othi#* like time
*ai#ed.9
Thus, +e ca# see that a marketer uses I#ter#et for marketi#* !roducts, its bra#ds
a#d also !romoti#* o#e=s as +ell as others bra#ds a#d buildi#* trust i# the mi#ds of the
customers.. The mea#i#* a#d the defi#itio# of HI3ter3et M/r4et,32I cha#*es from
or*a#i:atio# to or*a#i:atio#. Re:,88 resorts to buyi#* a#d selli#* its !roducts o#li#e a#d
*etti#* ree#ues by the use of adertisi#* other com!a#y=s adertiseme#t o# its +ebsite.
H632/m/ F C03test t0 ,3 deals i# !romoti#* a#d hel!i#* other com!a#y=s i#
buildi#* their bra#ds o#li#e.

CONCLUSION
Be3e8,ts 08 I3ter3et M/r4et,32
I#ter#et Marketi#* is a hot to!ic es!ecially i# these days of i#sta#t results. The reaso#
+hy i(marketi#* has become so !o!ular is because they !roide three ma"or be#efits to
!ote#tial buyers@
E. C03=e3,e35e@ -ustomers ca# order !roducts %M hours a day +hereer they are.
They do#=t hae to sit i# traffic, a#d a !arki#* s!ace, a#d +alk throu*h cou#tless
sho!s to fi#d a#d e5ami#e *oods.
). I380rm/t,03@ -ustomers ca# fi#d reams of com!aratie i#formatio# about
com!a#ies, !roducts, com!etitors, a#d !rices +ithout leai#* their office or
home.
?. (e9er -/ss1es@ -ustomers do#=t hae to face sales!eo!le or o!e# themseles u! to
!ersuasio# a#d emotio#al factors> they also do#=t hae to +ait i# li#e.
I#ter#et Marketi#* also !roides a #umber of be#efits to marketers@
E. 76,54 /:J6stme3ts t0 m/r4et 503:,t,03s@ -om!a#ies ca# Iuickly add !roducts
to their offeri#* a#d cha#*e !rices a#d descri!tio#s.
). L09er 50sts@ .#(li#e marketers aoid the e5!e#se of mai#tai#i#* a store a#d the
costs of re#t, i#sura#ce, a#d utilities. They ca# !roduce di*ital catalo*s for much less
tha# the cost of !ri#ti#* a#d maili#* !a!er catalo*s.
?. Re1/t,03s-,> .6,1:,32@ .#(li#e marketers ca# dialo*ue +ith co#sumers a#d lear#
from them.
$. A6:,e35e s,B,32@ Marketers ca# lear# ho+ ma#y !eo!le isited their o#(li#e site
a#d ho+ ma#y sto!!ed at !articular !laces o# the site. This i#formatio# ca# hel!
im!roe offers a#d ads.
-learly, marketers are addi#* o#(li#e cha##els to fi#d, reach, commu#icate, a#d sell. I(
marketi#* has at least fie *reat ada#ta*es. 3irst, both small a#d lar*e firms ca# afford
it. Seco#d, there is #o real limit o# adertisi#* s!ace, i# co#trast to !ri#t a#d broadcast
media. Third, i#formatio# access a#d retrieal are fast, com!ared to oer#i*ht mail a#d
ee# fa5. 3ourth, the site ca# be isited by a#yo#e from a#y !lace i# the +orld. 3ifth,
sho!!i#* ca# be do#e !riately a#d s+iftly.
The I#ter#et is a !o+erful tool for stre#*the#i#* relatio#shi!s. By offeri#* customers
co#te#t a#d time alue, <(Marketi#* has o!e#ed #e+ istas for marketers. The *reatest
feature of the di*ital eco#omy is that it e#ables the <(Marketer to eradicate ma#
traditio#al barriers before e#teri#* #e+ markets. These barriers i#clude eco#omies of
scale a#d *eo*ra!hic !ositio#i#*. The i##ate stre#*th of a# <(Market comes #ot from the
seamless flo+s of *oods a#d serices from the !roducer to the customer but i# the
*eometrically i#creasi#* retur#s from co#er*i#* ideas a#d tech#olo*ical cha#*e the
stre#*th of o#li#e commu#ities has #eer bee# so *reat, a#d com!a#ies hae used them
to deelo! #e+ markets. 1otice ho+ 7i#u5 distributed free o# the 1et has bee# able to
build u! a faithful customer base. 4ltimately here also the marketer has to reali:e that
#othi#* sells as +ell as a *ood !roduct. But the beauty of the I#ter#et is that it offers
co#sta#t o!!ortu#ities for !roduct e#ha#ceme#t based o# co#ti#uous customer feedback.
-om!a#ies +ho hae tu#ed their busi#ess !rocesses to i#cor!orate these customer
res!o#ses hae bee# able to leera*e the !o+er of the 2eb to *ai# com!etitie
ada#ta*e.
RECOMMENDATIONS
The follo+i#* are a fe+ thi#*s a# i#ter#et marketer ca# do to ma5imi:e the !ote#tial of
his +ebsite@ (
D0m/,3 (/61t Re>/,r U This fu#ctio# directs the +eb isitor to the ri*ht site after
sheHhe !ote#tially may hae ty!ed i# the +ro#* I#ter#et address.
S,te C6st0m,B/t,03@ ( .#e of the +eb(based -RM most im!orta#t ada#ta*es is the
olume of i#formatio# aailable to the bro+si#* customer. 4#fortu#ately, the sheer
olume of i#formatio# ca# be o#e of the +eak#esses of +eb(based -RM desi*#. Sites
that offer customi:atio# features allo+ user to filter the co#te#t they see. The future of
truly +eb(based -RM +ill be the com!letely 8o#e(to(o#e9 +eb sites. 2he# !ro!erly
customi:able o# the first isit, the customer o# a #e5t e#try ca# choose to see o#ly
hisHher o+# !refere#ces. D<5am!le@ yahoo.com> my yahooE
A1ter3/t,=e C-/33e1s U 0iffere#t +ays to co#tact the com!a#y are offered, for
i#sta#ce, <mail, 3a5 toll(free #umbers, /ostal $ddress, -all back butto# a#d Voice
oer I/.
L05/1 Se/r5- E32,3e U $llo+s the isitor to search o# key +ords to Iuickly locate
s!ecific a#s+ers o# the +ebsite.
Mem.ers-,> U The isitor ca# reIuest a !ass+ord. 2ith this !ass+ord he ca#
co#ti#ue surfi#* o# !ass+ord !rotected +eb !a*es +ithi# the +ebsite.
M/,1,32 L,st U To receie more i#formatio#, the isitor ca# add hisHher email address
to a list to receie automated emails.
S,te t06r U The isitor ca# follo+ a tour throu*h the +ebsite.
S,te M/> U This is a hierarchical dia*ram of the !a*es o# the +ebsite, also called a
site oerie+, site i#de5, or site ma!.
I3tr0:65t,03 80r (,rst#T,me Users U Visitors, +ho e#ter the site for the first time,
ca# surf to a# i#troductio# !a*e. This !a*e co#tai#s i#formatio# about 86o+ to use
the site most efficie#tly9
C-/t U $ mai# ada#ta*e of the I#ter#et is its self(*e#erati#* ada#ta*e. By allo+i#*
isitors to i#teract +ith each other a#d +ith the site, they create co#te#t for the site.
$ll this +ill hel! build a relatio#shi! +ith the customer a#d it +ill ultimately hel! the
marketer to achiee his ob"ecties.
I#ter#et has o!e#ed u! #e+ ae#ues for reachi#* the co#sumer. It is true that there
is #eer a fi5ed +ay or strate*y that a marketer ca# use to market its !roducts a#d
serices o# the i#ter#et but it is still ery much a# are#a +here creatie thi#ki#* ca# take
the com!a#y reach #e+ hei*hts. Thus +e ca# say that marketi#* has #ot cha#*ed its
sha!e. It is the same, u#!redictable, u#usual a#d creatie field that #eeds co#sta#t cha#*e
a#d o!e# i#!uts that ca# +ork +o#ders for the com!a#y.
BIBLIOGRAPHY
B004s
Marketi#* Ma#a*eme#t U /hili! Kotler
Marketi#*.-om U Vi"ay Mukhi
<(Busi#ess <sse#tials( Matt 6ai*
M/2/B,3es
Busi#ess Today (MarchB, %&&% subscri!tio#
Art,51es
<co#omic Times( 0ecember A', %&&A
I#dia# <5!ress(Se!tember B, %&&&
Pers033e1
Mr. Vikram Kumar, 0irector, M$W Soft+ares D /ro"ect ?uide E
Mr. Neetu -him#a#i, -hief <5ecutie .fficer, N(I#fo
e.s,tes
+++.rediff.com
+++.hu#*ama.com
+++.fabmart.com
+++."(i#fo.com
+++.marketi#*terms.com
+++.i#ter#et+orldstats.com
W3RLD I.4ER.E4 U8$E $.D P3PUL$4I3. 84$4I84I18
,ar%" &*, 20**
World Regions
Population
( 20** Est.)
Internet
Users
De%. &*, 2000
Internet Users
Latest Data
Penetration
(% Population)
ro!t"
2000#20**
Users %
of 4a2le
$fri%a 1,037,524,058 4,514,400 **',(0+,(20 11.4 % 2,527.4 % 5.7 %
$sia 3,879,740,877 114,304,000 +22,&2+,55- 23.8 % 706.9 % 44.0 %
Europe 816,426,346 105,096,093 -)(,2*&,+&5 58.3 % 353.1 % 22.7 %
,iddle East 216,258,843 3,284,800 (',55&,((( 31.7 % 1,987.0 % 3.3 %
.ort" $/eri%a 347,394,870 108,096,800 2)2,0((,000 78.3 % 151.7 % 13.0 %
Latin $/eri%a 0 1ari2. 597,283,165 18,068,919 2*5,+&+,-00 36.2 % 1,037.4 % 10.3 %
3%eania 0 $ustralia 35,426,995 7,620,480 2*,2+&,'&0 60.1 % 179.4 % 1.0 %
W3RLD 434$L (,+&0,055,*5- &(0,+'5,-+2 2,0+5,00(,005 &0.2 % -'0.- % *00.0 %