INDIAN INSTI.

OF PLANNING & MANAGEMENT

AHMEDABAD. Saturday, 16 th November,2 0 0 8
IM-12*Internet in Intnl.Mktg.Research-
USA/EUROPE/ASIA INTERNATIONAL
MARKETING Dr. PRADIP DESAI
B.E. ,M.B.A. (I.I.F.T.), LL.B., Ph.D.(Management-U.S.A.),CMC
CERTIFIED MANAGEMENT CONSULTANT ( C.M.C.)
CHAIRMAN & C.E.O.
MOUN MARKETING CONSULTANTS
{ EXPORTS -MARKETING-IMPORTS -PROJECT-MGMT. CONSULTANTS}
804, ‘SHILP’ COMPLEX , TEL :0 7 9 -6 6 3 1 0 7 4 0 / 3 0 0 7 1 0 3 0
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AHMEDABAD -38 00 09 RES. : 66 3 1 0 730 /2646 3218
E-MAIL: info @ mouncorp. co.in * WEBSITE: www. mouncorp. co.in/mounconsult.com/
 INTERNET RESEARCH
• China Internet Network Information
Centre(CINIC)statics relesed as under :
• China snatched No.1 position from USA for HIGHEST
no. of Internet connectrions at 253 Million in June,2008
* Out of this 80% are broadband users at 214 million
• Growth is from 123million InternetSubscriber
IN June,2006 I.e.260 % growth in 2 years.
* China with `cn’ domain name is at 12.18 million
replacing Germany with largest no.of national domain
names. I.e. .com .org not included.
 Internet Research ..CONT :
• Netizens in China 206 million check news on Internet
i.e. 81.5% on-line population
• No.of on-line shoppers has reached 63.29mn
i.e. 25 % of the net-users out of which 23.79 mn.
paid money through on-line means.
* This is surprising figure since use of credit card system
is not prevalent in a big way in China.
• Total revenues of China’s Internet Service Providers
(ISP)soared to 40.5 bnYuan(US$5.9bn.)
• Research firm Analysis International reported that this
revenue growth is up by 48.6 %
 Internet Research …cont :
• It is estimated that revenue shall continue to grow
at 30% reaching US$137.5 bn.yuan
( US $ 20 bn.) by 2010
• As per consulting firm Price Waterhouse
Coopers’(PWC) report prepared for client
Interacting Advertising Bureau(ADB),USA
On-line Advertising Revenue alone in 2007, was
US$21.2 bn.(145.2 bn Yuan)
* This shows power of Internet as a Marketing
/Mktg. Research tool in todays networked world.
 Use of Internet in
Mktg./Mktg.Research
• In earlier time for making quick estimates for any
event such as Election Polls etc.Gallops had developed
a Mkt. Research
System which is till today in use called GALLOPS Poll.
• Now,Internet has added a new dimension in
1. Banking/funds transfer/on-line banking
2. Airlines/Railways/Hotel bookings etc.
3. On-line education system e.g. huges network
4. Distance-Learnig Programmes(DLP)by Universities
-earlier called Correspomdence courses e.g.
IndiraGandhi Open University (IGNOU)Courses.
 Internet MARKETING
• One of the 1 st co. to be highly successful was
amazon.com who initiated on-line selling of
Books on various subjects.
• Now, the concept is picked up by many Mail-
order houses(MOH)for selling on-line from books
to household FMCG goods,garments,bed sheets to
Curtains & even high end branded Jewellery,
perfumes & watches also.
• In India,AVA Merchandising is selling on-line
or thro’ TOLL-FREE no.debiting to Creditcard
 Internet Mktg.Research
• Marketing has to determine latent needs & wants
of the prospective customers & convert it into sale
leads leading to sale.
• Customer is th King so in USA free replacement
of goods `NO Questions asked’
was the policy introduced before 4 decades.
• Today,due to competition knowing consumer
preferences has acquired a very prominent positon
in the marketing efforts.Internet is the fastest way
of knowing customer preferences like Gallop poll
 Adv./Dis-adv. of Internet
Mktg.Research
• It is very quickMethod • NOT representative
• It involves least • Respondent biases are
posssible cost & time refelcted in research
• Large no. of • No choice in deciding
respondents assured random samples
• Only a small incentive • Wrong target could
like MB added in a/c. respond- no croos check
* Time taken is less in • Skewed results are seen
data compilation-auto. if care not taken
Internet Research-where to use ?
• In USA as seen earlier Net Advertising is the
highest in the world hence it could be an
effective tool for consumer products mkt.research.
* Apple Computers successfully marketed computers
as per customer configurations on-line in USA
• However, for Industrial products where Technical
parametrers determine buying/selection of
equipments it can not give accurate customer
preferences.Hence,Traditonal Market Research in-
person is must in this case.
Intenet Mktg./ Mktg.Research in
INDIA
• Out of population of 1.05 bn.(105 cr.)about
70 % live in Rural India.
• Now, about 80% of Indian population in rural
areas have an access to receiving TV on a village
community TV set so rural markets are now not
ignorant as before.But Internet spread is still low.
• ITC ( Indian Tobacco co.)introduced Internet
based `CHOUPAL’ concept in villages to know
prices of commodities they are producing &
selling which is a very successful attempt.
 Rural Revolution in INDIA
• On the other hand Mobile has revolutionised
Indian Rural Markets & Mobile connectivity is
strong at @ 250 mn.connections with about 1
millions handsets being added every month.
• This makes China-India as world’s fastest growing
Mobile markets promting cos. Like NOKIA
(Finland based ) to start a big Handsets mfg.unit
at Chennai,India.
* It will be another decade before Internet spreads as
much as China.
-12-