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SCOPE OF E-MARKETING
A Report Submitted Towards The Fulfillment Of The Requirement Of The Two Year Fulltime MBA Curriculum Of Uttar Pradesh Technical Unviersity, Lucknow Session: 2006-2008
Submitted To: Department Of Management Studies Skyline Institute Of Engineering and Technology, Greater Noida Faculty Guide: Mr. Tarun Bose
Submitted By: RAGHUBANSH KUMAR SINGH Roll No.-0615370041 MBA Final Year Batch -2006-2008
I hereby solemnly declare that this work (Research Project Report- “ SCOPE OF EMARKETING) is my own original piece of work. The work in this Project has not been submitted to any other institute or University.
All the information in this Project Report given by me are true and Research based. If there is any fault I will be responsible for that.
RAGHUBANSH KUMAR SINGH
This report would not have been possible without the support and guidance of my teacher. I would express my heart-felt gratitude towards.Mr.Tarun Bose and Mr. Saroj Dash, without whose guidance and support, I would not have been able to understand the objective of the project and this project would not have been complete. He has been really understanding and supportive in explaining all the details with patience. I would express my gratitude towards him for taking time out of him schedule to guide me during the project. I would also like to thank Dr. Kulwant Nehra ,Mrs Rachna Srivastava and Mrs.Ankita Singh.., for giving their valuable suggestions regarding how to go about the dissertation.
(RAGHUBANSH KUMAR SINGH)
TABLE OF CONTENTS
Rationale Introduction • • • Definition Indian Overview Environmental Analysis
Literature Review • • • • Prior Research on Marketing with Internet The Arena of Marketing Research The Art of Database Building The essence of Customer Service
An Insight • • Role of Internet in Marketing Fundamentals of effective marketing on the internet
Research Methodology Data Analysis Results & Findings Discussion • • Recent Trends in Indian Market Indian dot com Scenario
Summary & Conclusion
References Annexure • Questionnaire
USAGE PATTERN AND CONSUMER INCLINATION TOWARDS USING E-COMMERCE. EXPLORING THE COST ASPECTS OF MARKETING ON THE NET PAST AND FUTURE TRENDS OF E-COMMERCE & INTERNET MARKETING AT A GLOBALISED LEVEL IN TERMS OF BUSINESS VOLUME. E Marketing is marketing that utilizes the Internet as a communications and distribution channel.• Internet Glossary RATIONALE Marketing has faced a paradigm shift in 21st century through its amalgamation with IT enabled services. It is generally cost-effective. can help build brand awareness and loyalty. . Objective: TO STUDY THE FEASIBILITY OF E-COMMERCE FOR A WIDE RANGE OF ACTIVITIES SUCH AS ADVERTISING. and if done properly. E-marketing is an upcoming area. E marketing is one of the most effective ways to keep in touch with customers. This includes using email and the Web. CUSTOMER SERVICES ETC.
distribution of public relations information over the Internet. and the Internet when they connect users to an amazingly large information superhighway. These networks are called intranets when they connect people within a company. Marketing research Use of individual interviews. twenty-fourhours service response. provide on-site visits. Electronic marketing is normally associated with Internet marketing. Selling Phoning or visiting prospects and customers and demonstrating product physically or by projective equipment. extranets when they connect a company with its suppliers and customers. . sounds. phones surveys. radio. Digitalization consists of converting text. Videoconferencing with prospect. Provide service five days a week. Underlying electronic business are two phenomena: digitalization and connectivity. access to focus groups over the Internet. enabling customers to purchase their own hospitality and travel products. and image into a stream of bits that can be dispatched at incredible speeds from location to another. Connectivity involves building networks and expresses the fact that much of the World’s business is carried over networks connecting people and companies. send phone. Use of newsgroups of conversation focus groups. Cyber Marketing Design extensive information and put it on the company’s Web page. eight hours a day in the store or over the phone in response to customer calls:. data. Usually only very limited information can be presented. newspapers. access to frequent guest diner and flyer information over the Internet. and magazines. CD brochures linked to your site. which enable the firm to have effective direct marketing campaigns. fax. showing the product on the computer screen. and mailed or and interviewing. Customer Service Provide seven-day. allow customers to co produce their customer service.” How Electronic Marketing will Change Marketing Marketing Activity Advertising Traditional Marketing Prepare print.DEFINITION Electronic marketing is rapidly transforming the way hospitality and travel organizations conduct business. or voice copy and use standard media vehicles such as television. Internet marketing captures data which feeds into the firm’s database. e-mail questionnaires. or e-mail solutions. the database is used to generate profiles and lists. video. and two of the media for direct marketing are the Internet using emails and CD-ROMs with hyperlinks to the Internet.
One important aspect of an Internet site is to enable customers to contact the company and talk with an employee. Dunkin' Donuts is known as much for its great coffee as it is for its donuts on the east coast of the United States." hoping to attract price-sensitive customers to fill up their ships and cruises. One of the advantages of the Internet as a sales channel is that the customer does the work. Thus. thus. For example. Low Airfare is able to keep 92 percent of those who begin a transaction. a representative without going off line. Information is presented in a way . a Web chat option is useful for clients using their home phone line. Morton's Steak House makes its custom-crafted wood-handled steak knives available.com features working with a live agent on its site. making the Internet is an effective and efficient way of taking reservations. someone wanting water sports. Communication One of the important uses of the Internet is communication. By providing personalized service through text chat. hiking. A passenger that wants to explore all options and take twenty minutes to book a reservation can do this on the Internet. the airline does not have the expense of an employee personally going through all the options with the passenger. Cheeseburger in Paradise on Maui sells clothing. Their site features coffee "subscriptions.Selling Hotel. they can contact. If they have a question." allowing customers to receive two pounds of coffee delivered to their door on a monthly basis. For example. the agent works with someone else. The availability of technology to the typical customer has enhanced the opportunities for self-service. In the past Dunkin' Donuts could only distribute their coffee through their stores. While one customer is reviewing his or her options. On-line travel agencies as well as discounters sell a variety of travel products through the Internet. a good Web site allows airline customers to choose their flight. It can provide color views of the destinations and its related activities. Red Lobster sells both live lobsters and complete lobster bakes on its Web site. and make arrangements for special meals. and airline companies are using the Internet to distribute their products directly to the customer. or historical tours can click on the appropriate menu item and get the information needed. select their seats. Continental Airlines sends messages to its frequent travelers referring them to the Web site for specials. Cruise lines and hotel chains also list "specials. The activities may be listed on a menu. Airlines give the option of listing flights from lowest price to highest price. thus. Agents can assistant several on-line customers at on time. Even individual restaurants and smaller chains can sell merchandise over the Internet. LowAirfare. They can distribute low fares over the Internet. This is a much higher average than most travel online agents. For example. Internet technology can enhance customer satisfaction as it allows customers to access services when and where they want without the complications of interpersonal exchanges. Now they have an Internet site that allows them to sell their coffee to customers who have moved from the East Coast and find themselves without a Dunkin' Donuts near them. cruise. The Internet is also a good way to get rid of excess capacity. American Airlines has found that in addition to a telephone number. price-sensitive travelers can choose the flights where the airlines need customers. rather than advertise them publicly and set off a potential price war with a competitor. art museums. Restaurants use their sites to sell merchandise such as gift cards and to take reservations.
and places to dine. From the home page. Each section provides information that will be relevant to the user. A destination marketing organization (DMO) must work to see that the official site is well situated in the main search engines. Hyatt hotels home page provides an example of a home page that is well indexed. such as Courtyard. places to stay. The home page. a section for Travel Professionals. Spain. They know the seller created it. Many hotels offer visual tours and some chains. For example. The English traveler does not have to know Spanish. It is up to the company to communicate directly with the markets they wish to serve. and a Meeting Planning Index. can find out about tourist attractions. Web sites for hotels have the chance to communicate information to a number of different segments. make a reservation. Remember that all a company's potential markets may not think of them as a provider of the service they desire. or order a gift certificate. In addition to being linked to the home page. Thus. Those hotels with a focus on meetings may use one of the meeting software packages such as MeetingMatrix..e. offer visual tours of the different types of hotels they have such as classic. Focus groups are a good way to evaluate the content and accessibility of sites designed for different clientele. Someone using an Internet site should be able to access the page with the information they need in three clicks or less. The task of managing the placement of a site near the top of the search engine lists is becoming more difficult as more and more engines are selling placements. Park Hyatt). a food and beverage director of a hotel can develop a special site for banquets and catering. Optimum Settings. and they are . downtown. For professional users there is a Press Room. The Internet is an excellent medium to communicate what products are offered and the benefits of those products. The Internet allows companies to have a global reach. or Room Viewer. Thus. a site not portraying the desired image of the destination may be the top one in the search engine. the user can go to a specific type of Hyatt (i. as smart hospitality and travel companies will translate their information on their sites into the languages spoken by their target markets. They view it much the same way as they view information received in an advertisement. Providing visual information on the Internet is certainly more cost-effective than printing and mailing out brochures. so that it conies up when someone searches for information on the destination. information that is communicated should be accurate.that will make potential customers want to come to the destination. However. Someone from England traveling to Malaga. can provide information targeted to reach a number of different audiences. allowing the meeting planner to diagram the rooms with their desired set-up and e-mail it to the hotel and facilitating communication between the meeting planner and the convention service manager at the hotel. Discussion with meeting planners has revealed they do not trust information received over the Internet. one must pay to be at the top. If the DMO does not do a good job at managing its presence on search engines. these specialized sites can be submitted to search engines. check on special offers. as well as managing the destination's Web presence. and vacation hotels. Showing seven-year-old photos that were taken after a hotel's last renovation will not create trust with the buyer if they do not accurately represent the present condition of the hotel. Marketing Highlight 16-1 looks at some of the issues of designing a Web site for a tourism destination. someone looking for a place to hold a banquet can come to the hotel's banquet site directly.
Customers have high and rising expectations about how quickly and adequately they should receive answers to questions and complaints sent in by phone or e-mail. Build and actively manage a customer database. and current if it is to attract repeat visits.. When this happens they make greater use of the information and services the site provides. provide on-line auctioning or exchanging. run discussion forums. does the site load quickly or is a customer likely to leave while they are waiting for graphics to load? What is interesting about our page? Why would someone want to return to our page? Why would someone want to advertise on our page? 3. The Internet also provides the opportunity for interactive communication between the customer and the business. once they find out through use of the product that the Internet is an accurate portrayal. relevant. then they view the Internet site as providing accurate information. they should be given a phone number to call and an automatic e-mail option. Too many sites have the goal of having 100 percent electronic communication. 2. select and confirm seat assignments on airlines. changes in flight plans and other information to the customer or per sportive customer. However. The computer can be programmed to book reservations. The company's Web page must be appealing. and they do not include telephone . The company must view its Web page critically and ask a number of questions: Why would someone want to surf to our site? If I view the site using the equipment my customers use. when the user has a question that the computer can not answer or they have a problem they would like to discuss. and Chili's tells where its restaurants are located. provide information. sound. Be easily accessible and quick in responding to customer calls.skeptical. companies need to capture the names of and as much useful information as possible about potentially valuable prospects and customers. Basic principles of electronic marketing are explained in Table 16-2.e. A company can develop a presence on the Internet in at least seven ways. Make sure the Internet user can communicate directly with the company on-line. One advantage of the Internet is that we can communicate automatically. e-commerce). such as links to a map showing the location of the hotel or restaurant. and video. However. The site can be developed to provide valuable help. Companies should consider using state-of-the-art graphics. Develop a clear concept on how the company should take advantage of the Internet. A database permits a company's targeting to be super efficient. A rich customer database can provide the company with a strong competitive advantage. and even deliver "bits" to customers. People like to be able to communicate with other people. provide training. In this era of scarce customers. Holiday Inn books rooms over the Internet. The company can use the Internet to do research. They should add weekly news or features ("coming next week: Chef Lambert's summer barbecue recipes"). Virtual Vineyard provides product expertise and a personal connoisseur to recommend choice wines. Three Basic Principles of Electronic Marketing 1. carry on on-line buying and selling (i. The company can search and rate different groups and individuals for their probability of responding to a given offer or highly tailored offers. and send confirmations of reservations.
personnel to capture data. lead qualification. and so on. This is in part due to the size of business-to-business transactions and the efficiencies the Internet offers businesses. For example. Food supply companies and office supply companies use the Internet to receive orders from customers. The site should also be organized so the users can quickly get to the information they need. or maintenance of customer relationships. one must not forget the customer and the importance of communicating with the customer in the method they desire. or suspects that is accessible and actionable for such marketing purposes as lead generation. It is important to access your Web site the way that most customers will access it. reservations. the Internet is being used to create marketplaces where companies wanting supplies can be matched up with sellers of those supplies. Business-To-Business E-Commerce Business-to-business e-commerce accounts for the majority of Internet commerce. dataprocessing software. and the general manager would all need access to the database. a simple version for low-tech users and a version with enhanced graphics for those who have the technology. A marketing database is an organized collection of data about individual customers. In addition to the marketplaces. each buyer and seller would have to first identify each other and then contact each other. Developing A Marketing Database System To implement successful integrated direct marketing. the searching and contacting is done automatically. Building a database takes time and . food and beverage. They may have simply found the site on a search engine. With the electronic hub. If most of your customers are individual consumers. When designing a Web site. The Internet has also had a significant effect on how database marketing is conducted. sales. reception. This process would have to be repeated each time a transaction took place. user training. Building a database involves investing in central and remote computer hardware. Web Site Development A company's Web site must project its brand image. Some sites offer a choice of formats. in a hotel. As the Internet matures. access the site from a modem. butterfly markets. The system should be user friendly and available to various departments. The buyer receives the benefit of receiving offers from multiple companies. information enhancement programs. In the hospitality industry. Table 16-3 is a summary of the advice of Internet marketing experts regarding the design of a Web site. and the seller has the advantage of being linked with multiple buyers. It should be easy to navigate. Users are not going to wait for graphics to load. accounting. its importance to the hospitality and travel industries will increase. In the absence of these hubs. they will exit. the Internet facilitates one-to-one relationships between a buyer and a seller. communication links.contact information. prospects. if they take too long. Often the preferred method for some communication is not electronic. Thus. design of analytical programs. sale of a product or service. People coming to the company's site may not know anything about the company. These electronic hubs go by the name of vortexes. the site should convey what the company is and what the company has to offer. or net market makers. companies must invest in a marketing database system. The marketplaces match multiple purchasers with multiple sellers.
One hotel offers information on availability and pricing. ♦ Keep on top of the search engines to make sure your site comes up in the top listings. Keep graphics simple and enable your clients to move quickly through the site. Jayne Clark. in an article in USA Today. The Internet has changed the relationship between the hotel and the wholesaler. ♦ Keep up with new trends of communication such as wireless phones. ♦ Hillary Bressler states that a challenge faced by hotels is that sales leads don't trickle down from their corporate Web sites. and other activities creating a package. Ask permission to send information on specials. the wholesaler created extra demand for the hotel. The person that would buy the package was usually not the hotel’s customers. then check the site of two hotel discounters. A "microsite" or page linked to the corporate site to provide information about your hotel can solve this problem. ground transportation. Use automatic response mechanisms when appropriate. The site should convey the company's identity and what it offers. The package would then be advertised and sold through travel agent. ♦ Collect information and e-mail address through a "contact us" area. such as confirmations of reservations. hire outside expertise. ♦ Make sure users can easily navigate through the site and can get back to the home page from every page. Thus. The wholesalers would then bundle the rooms with air. the selling company will achieve substantially higher marketing productivity. THE INTERNET MAKES IT EASY FOR CUSTOMERS TO FIND PRICE INFORMATION Hotel used to sell excess inventory to wholesalers. write that consumers should first check the hotel’s Web site. but makes you call the hotel to make the reservation. Competition should increase in the future as consumer advocates are teaching consumers to check Internet wholesalers. To make matters worse they did not have the hotel's phone number on their site. then call the hotel’s toll free number and ask for any discounts for which . but when it runs properly. PDAs. If you do not have the internal resources to do this. ♦ Remember your clients are coming to you for travel services. Now some wholesalers contract for inventory and simply resell the inventory over the Internet. in direct competition with the hotel. ♦ Make sure you have a "contact us" page on your Web site. over twenty-four hours is too long. Make sure you give clients alternative ways to contact you such as toll-free phone numbers.involves much cost. Tips for Managing and Developing a Web Site ♦ Remember people coming to your site may not know anything about the company. within six hours is desired. ♦ Make sure users can purchase your products over the Web. justifying selling the rooms at a lower rate to the wholesaler. When you are contacted respond quickly. and other devices.
e. which would definitely mean the introduction of newer and faster technology. appliances etc are being net based. with governing laws and jurisdiction set out clearly. Currently all international connectivity is through VSNL and is limited to a very slow speed of 165megabits per second compared to other countries i. Cyber laws People have had problems of non-delivery of orders placed on Rediff on the Net. The largest ISP. Whether the centralized insurance agencies.e. banking. Following her process we came up with the result on the facing page for a weekday room booked two weeks out. Digital identity How can you trust the site you are doing business with? Similarly. The governments role also seems useless when compared to forecasts which promise telephone lines to 15% of the country by 2010!But maybe our internet usage will speed up due to the fact that industries. Legal shelter is extremely imperative for confidence to build up. services i.they might qualify such as the Automobile Association of America or hotel and airline loyalty programs. Business-to-business sites are comparatively better off. And it takes only one scam to shake the confidence from the system. Also. why has it still made no major impact in India? There are many reasons. VSNL. has about two and a half-lakh subscriber. the transactions are normally between known entities that have. as they normally have negotiatedcontracts. Internet usage If computer usage itself is insignificant. E-Business Barriers If e-commerce is so hot. how does the site ensure that you are not using a stolen credit-card number? The answer to this is digital . Then there is the issue of insurance against fraud. But there have been have several applications with the DoT by small ISPs to set up their own gateways. or are actively looking for long business relationships. the introduction of wireless application protocol and generalized radio services internet and other forms of electronic exchange will come onto the scene. will provide low-premium insurance cover to a high-risk. in China the speed is of almost 2 gigabits per second. which are opposed to the very idea of privatization. then go back and recheck the discount sites again. E-commerce happens over the Internet and with low Internet usage. totally intangiblebased area like transaction indemnity anytime soon is anybody's' guess. The lack of a secure online payment mechanism and the continued debate on passing the Digital Signature Act are all major stumbling blocks. Internet usage is almost non-existent. Bandwidth The lack of bandwidth is a major cause for concern. All the other ISPs put together may add an equal number. Also.
you need an extremely trustworthy agency issuing the certificate of identity. homes. To navigate the WWW. pictures. Again. in the case of business-to-business sites. But. sound. schools and governments. point and click graphically interface. art gallery. e-commerce is not a one-man operation that can run from a couple of servers stashed away in a corner in a basement.g. The rates differ. It is used as a market place. No two states have the same sales tax and excise-duty rules. And it’s often a Catch 22 situation. and animation making it a rich communication medium. to issue a digital certificate. has accelerated the growth of the Internet by giving it and is to use. each providing some type of information or service. and because it combines graphical text. house and many more. both in initial investments and in running costs. Hopefully. bandwidth. with everyone waiting for others to start off. Advertising costs The Internet is often likened to a high-speed digital highway with millions passing by every minute. the forms to be filled in differ (so do the rates of bribe). E. Though as industry progresses several companies that offer specialized services have come into existence. SEEC. some one will… The Internet is a computer network that connects millions of computers globally and provides worldwide communications to business. the newest Internet service. because it is to use. the very high cost of building the systems is often the biggest stumbling stone. forms. animation and hypertext links called hyperlinks.certificates. and proper security…All these could add up to quite a big amount. Either of these costs a lot of money. publishing. All these are applicable to business-to-consumer e-commerce. Equally big is the cost of software. New software like Screen Scraping or Legal Wrapping etc have revolutionized infrastructure support system in India. It is based on documents called pages that combine text. Inter-state goods movement regulations Anyone involved in selling and shipping goods across the state borders will testify what a nightmare this can be. Web-hosting services. In case of business to business. The WWW is many things to its millions of users. World Wide Web(WWW). this may not be a major factor. These web pages are prepared using the Hypertext Mark-up Language (HTML). or by clicking on an interesting link seen on some other site. will help online companies to adapt to new technology. Dynamic logistics offers inbound as well as outbound logistics for offline companies that want to go online. .. users “surf” from one page to another by pointing and clicking on the hyperlinks in text or graphics. Setup and infrastructure costs In spite of what many vendors would want you to believe. so that they can see the results and then follow. Having a cool Website will not bring in people. And then there’s octroi. Users are attracted to the WWW because it is interactive. Internet has grown explosively in the 1990s. community center. school. No way! It’s more like a mess of alleyways that no one has ever mapped out. library. People come to a Website either by typing the URL directly in their browser. There is more than four million server computers on the Internet. sound.
it offers a great deal of flexibility in the way information resources can be organized. . Gopher provides a hierarchical.The World Wide Web is non-linear with no top. or no bottom. presented. The WWW uses hypertext transfer protocol (HTTP) and hypertext links. Thus one can: Jump from one link (resource) to another Go directly to a resource if one know the Uniform Resource Locator(URL) Even jump to specific parts of a document No other medium has this big an audience. This tremendous growth of the Internet. 1993 The European Laboratory for Practical Physics in Switzerland (CERN) releases the World Wide Web (WWW).s developments where as follows : 1990 The ARPANET is dissolved Gopher is developed at the University of Minnesota. The 1990. As the Web is not hierarchical and can handle graphics. developed by Tim Berbers-Lee. presented and accessed on the Internet. and described. marketing and even direct distribution of certain goods and information survives. The rapid adoption of the Internet as a commercial medium has caused firms to experiment wi6th innovate ways of marketing to consumers in computers mediated environments.000. has led to a critical mass of consumers and firms participating in global online marketplace. menu-based method for providing and locating information on the Intranet. and its penitential to provide an efficient channel for advertising. This tool mails using the Internet much easier.00. or about 1400 pages of text per second. More than 1. The NSFNET backbone network is upgraded to “T3” which means that it is able to transmit data at speed ofd45 million bits of data per second. The present popularity of the WWW as commercial medium is due to its ability to facilitate global sharing if information and resource. and particularly the World Wide Web. Non-linear means you don’t have to follow hierarchical path to information resources.000 potential educated people access the net. changing the way information can be organized.
The actual e-Business operation can be described as follows: 1.1993-94 The Graphical web browsers Mosaic and Netscape Navigator are introduced and spread through the Internet community. and the e-Commerce site requests the client browser to enable an SSL-protected link. It uses the Web to connect together customers. 4. or the internal authentication database of an Intranet. This is sent for validation to a transaction server connected to all the databases of all the supporting financial institutions. The e-Commerce site (also called the server). 1996 Users in almost 150 countries around the world are now connected to the Internet. 1995 The NSFNET backbone is replaced by a new network architecture. the client’s transaction process is further processed. This link-to-link encryption offers high level of security to the entire process. which radically altos the way application and information can be retrieved. The client chooses to make an online transaction. . The number of computer hosts approaches 30 million What is E Business? E-business is what happens when you combine the broad reach of the Internet with vast resources of traditional information technology systems. requests personal and financial information from the client that is relevant to the authentication and validation of the transaction in process. while increasing reach. Depending on the values returned to the transaction server by the authentication databases. Due to their intuitive nature and graphical interface. these browsers make the WWW and the Internet more appealing to the general public. The site presents the client with the products/services offered 3. Where one can complete the transaction online and integrate the supply chain into transaction management process. displayed and used over the Internet. (For example. American Express or VISA). called VBNS (Vary High-speed Backbone Network System) that utilizes Network Service Providers. the extension of business systems and providing an easy-to-use interface between the external world and the organization. The client uses the web browser on the local terminal to connect to the e-Commerce site via the Internet / Intranet. A team of programmers at Sun Microsystems release an Internet Programming language called Java. E-business really means. the authentication databases of MasterCard. regional networks and Network Access Points (BAPs). suppliers and employees in a way never before possible. 2. vendors.
and profoundly affects the world in which we live. with untold possibilities. The web as a Model of Marketing Communications Firms use various media to communicate with their current and potential customers. The Internet.g. and disseminated on an individual basis. chat) File transfer (ftp) remote login (telnet) Electronic mail (e-mail) Global information access and retrieval systems (e. and revolutionized the society of the time. Most of the communications are one to many.Information can be maintained centrally on a network server and still be displayed. Today.g. the web has the potential of radically changing the way firm do business with their customer by blending together publishing real-time communication broadcast and narrowcast as an operational model of distributed computing. Today. and profoundly affects the world in which we live. Schools use the Intent Sa a vast electronic library. Marketing communications perform three functions: inform. Customization. the net supports – Discussion groups (e.g. a revolution in distributed computing and interactive multimedia is dramatically altering this traditional view of one to many communications. USINET news.Within 30 years. international communication is a fundamental facet of the web.with connectivity in over 100 countries. accessed. These are as followsGlobal dissemination. And even as the Intent offers a single Global Village. some people telecommute over the Intent. allowing them to choose where to live based on quality of life. if threatens to create a 2 nd class citizenship among those without access. not proximity of work. As a marketing and advertising medium. Just as the railroads of the 19th century enabled the Machine age. the Internet has grown to the Information superhighway. The Internet offers an alternative to mass media communication. the Internet takes us into the Information age. vernica gopher and WWW) Why World Wide Web? Six fundamental capabilities of the WWW give it the comprehensive advantage over media.g. Many cities view the Internet as a solution to their clogged highways and fouled air. . some people telecommute over the Intent takes us into the information e. Doctors use the Intent to consult with colleagues half a world away. The new one to one marketing communication model defining the offers a radical departure from traditional marketing environments. archie. remind and persuade. moderated and immoderate mailing lists) Multi-player games and communications systems 9e.
Interaction. Integration.Support for online ordering.One can link on-line activities with internal. inventory and delivery tracking. project co-ordination and co-ordinate information management resulting in enhanced opportunity for joint development for innovative products and services. Collaboration.Two way or multi-channel communication is possible on the net. GROWTH IN THE NUMBER OF WEB SITES . backend processes for maximum impact. purchase orders. Electronics Commerce. and promote new business applications.Seamless access to shared data. You can get immediate and focused feedback from customers and forward the online customer queries to appropriate internal resources so that necessary action can be taken. distribution information and customer interaction across functions.
738 10.000 1. .8 76.264.420 25.30.6 67. Clearly.3 80.DATE 6/93 1/94 6/94 1/95 6/95 1/96 6/96 1/97 6/97 1/98 6/98 1/99 6/99 1/00 6/00 NUMBER OF WEB SITES 130 623 2.4 70.500 5.7 INDIAN OVERVIEW The Indian private sector has already recognized the attractive economics of e-business.000 4.331.676. COM SUTES 1.6 13.843.400 7.5 18.5 4.130 %.0 62.000 2.022 23.4 76. Needless to add.00.0 68.325.000 2.3 31.4 79. that the potential exists. the opportunity (and the need) for Indian businesses to get onto the e-business power curve is really quite high.100 16.117.887.50.3 50.2 69. a piddling size when compared to the world. which is expected to cross $900 billion by the year 2007. The size of the transactions were over the net was Rs10 crore.500 1.000 6.
an automobile company or a fast-moving consumer goods company which has multiple offices with different manufacturing sites and warehouses etc across the country. One of the main reasons is the high entry cost of EDI because of which companies fight shy of trying out. For instance. However. We already see some of this readiness.Unlike in the past. say. infrastructure and manpower ready for ebusiness. is again indicative of the change in the offing. and hence. While the air of optimism persists. legislative. this is becoming less of a problem.Dynamix-a software infrastructure solutions company. Infact . the fact remains that in India Electronic Data Interchange (EDI) has not really taken off. India is ready to boom in ebusiness. A critical issue. government agencies like ports are moving to exchanging documents through EDI and are planning a complete move to accept documents in only EDI. As a result of this. With several private value-added networks (VANs) coming up and with the reach of Internet expanding. Institutions such as RBI and SEBI are considering various ways to make usage of electronic systems mandatory for areas such as interbank settlements. These bills also contain a comprehensive range of provisions that are expected to usher in e-business in India. the fact that EDI-related issues are being addressed by the government. is in the process of helping TELCO to replicate the Ford “just in time technology” The recent announcement of Hindustan Lever indicates that soon all of its cosmetic line will be made available only on the net. collective experience indicates that firms can deploy e-commerce solutions over the current infrastructure and realize significant benefits from them. payment of dividends etc. To add to this government incentive has been minimal in the past. selling from books and shirts to vegetables and soaps. regulatory. it is expected to be resolved once the government passes the Electronic Support Act and the Information Technology Bill. there is much at stake for. To be fair. this is one area that has received focus from the highest levels and there is feverish activity to build bigger bandwidth and crucial payment gateways. bababazaar. where existing attitudes have posed major challenges to adopting a new way of life. but bottlenecks are soon being removed. a major pilot project in the auto industry was successfully completed last year by ACMA (Auto Component Manufacturers Association). Similarly. The lack of infrastructure was a serious impediment. In fact. with one center in each city acting as demonstration/guidance center. as is evident. Therefore. Here. we are not just talking of companies that have static web sites but those which conduct commerce on the net like Color Plus. which will enable online credit card authorization Indeed. . The ratification of financial transactions reconciled without paper via the internet by the Reserve Bank of India. The country needs to get its legal. Rediff-on-the-net and Shoppers Stop. Welcome to the new invasion of technology in the Indian banking system. India Book Shop. doubts persist whether corporate and government in specific will adopt and accept this as quickly as is made out. companies have been more open to taking studied chances. thanks to the extraordinary levels of Internet awareness in the country. with the Internet it has been rather a smooth sailing. paving the way for its wider acceptance.
while the same people feel more at ease with an ATM that shows no emotion and all clients are treated alike. Technology to the extent that it helps to reduce costs is a welcome I India. especially with the insignificant sums of tier transactions. the differentiation had to come from service. There are several stumbling . Internet hits the Indian banking sector Today you send an email or pick up a telephone and your banker lands at your doorstep.” The statistics show that 90% of all new businesses fail. services. For example poorer people who visit banks for their regular banking activities feel that an unequal treatment is meted out towards them as against their richer counterparts. direct bank debits and e-cheques. MOVING “TOWARDS E-BUSINESS…. This automatically put pressure on the institutions to adopt technology as their USP.In developing countries like India with a vast majority of the population living in poor conditions.7-8.. This will be the first payment gateway tailored to meet Indian requirements and will not be subject to all the regulatory concerns that cloud other non-India based payment gateways. The ICICI e-commerce payment gateway will launch a state-of-the-art internet payment system and is set to open the world of e-commerce to many more merchants. But E-Business is not only success stories. some of these new banks on an average send out 500 emails on a daily basis regarding new products. Is technology then the new driver in the Indian financial system? When all the banks and financial institutions are offering the vanilla product. consumers and businesses in India by significantly lowering the cost and complexity of enabling secure transactions over the Net . In countries like India technology acts as a leveler that removes inequality between people of different income groups. They seem o have this effect on most people our age. This will substantially reduce the capital costs of merchants. Welcome to the new invasion of technology in the Indian banking system. While preparing for this topic there were several examples as well as case studies that we reviewed. According to industry estimates. We believe that is a direct result of the failure to plan. debit and smart cards. The gateway offers the flexibility of multiple payment modes including credit. Welcome to the new invasion of technology in the Indian banking system! The liberalization and the technology-invasion have worked wonders for the banking sector. Banking will never be the same again in India. ICICI announced a tie-up with a Compaq-led consortium for setting up the country’s first payments gateway to facilitate secured on-line B2B and B2C e-commerce transactions. or other routine matters. Take the opportunity to plan and increase your chances of success. say bankers. technology plays an important role.The customers credit card number will be protected through hardware cryptographic devises so that the only information available to merchants is a code. If ICICI has shown what technology can do for banks. These like most others left us starry eyed. Internet banking is fast catching up. others have quickly realized the potential and are fast trying to catch up with it. This could be explained by the fact that to process a banking transaction manually it costs around Rs30-40 where as the same transaction on the Internet would cost Rs.
They are: 1. it is extremely important to have latest information and hence e-business is important. 3. 2. This company sells computers to several other enterprises via the internet thus eliminating the middleman and reducing costs by a great deal. service and make sales to their customers via the world wide web. The prices of tickets are no longer fixed but depend upon the place. they offer you the option of designing your own jeans and have them custom made to your choice. destination etc. We have made a comprehensive but necessarily an exhaustive ebusiness model.” Ebay. For example “dell. There are 4 types of businesses that can be carried out over the Internet. In fact. 2. now it is the customer who makes the offer and the organization has to make the counter offer.e-business cannot be just restricted towards being merely a B2b and B2C but with time it has also grown and is clearly even developing as C2C and C2B. Take the example of Levis jeans.com” which sells everything right from music to books on the net.com”. Eg “priceline.e. Whether the decision is an information intensive purchase decision? This will help in a way e.com and price line used by various airlines like delta. 3.com” With the changing times in the age of net . For example “rediff. ebay.g. Eg.blocks that young entrepreneurs have to face. Will customization aid the user ? In products where customization is important then business on the net is very useful.com” and “moving towards the e-business”. Price . B2C : that is Business to Consumer transactions that enable companies to get in touch with.com” 4. is the touch and feel necessary? . e-business would not be advisable. selection and frequency of change in the product ? A product like a personal computer. time of booking. hence. say a commodity like matchbox there is hardly any need for any information before hand while purchasing one. For sale of the product. The basic question to ask is whether to go online or offline? You could judge your business on these criteria1.com . Here we have tried to explain the tribulations that go into creating a “. C2B : that is Consumer to Business transactions where in the consumers specify their requirements and the business tries to meet them. There are several startups that do not meet the “eyeball”. 4. B2B : that is Business to Business transactions that take place on line.g. which keeps on innovating very fast due to technological advancements . C2C : that is customer to Customer transactions where in customers trade within themselves through auctions. Thus the consumer gets the best bargain and businesses face fair competition. and not necessary that the price paid by the passenger boarding the flight will be the same as the rest of the passengers.
” Narayan Murthy d. 5. Hype to reality. There are only 2 companies that provide digital certification ie.e. b. If you are unable to live up to the standards created your credibility is lost. You need a clear “Value Proposition”. Hence if it is a product that appeals to this segment e-business is the right option. It allows you to move across related businesses with ease. .Set a subsidiary in the USA. Try and get a digital certification. CLEAR FOCUS IN A WIDE MARKET IS THE NAME OF THE GAME 2. Create a clear revenue model You should show source of revenue. e. 3. Your idea should have a wide application. What category of customer is the target? In India nearly 70% of the users are in the age group of 25-40 years. in this case one could A . Is there a need for new channels of distribution? 6. i. Scalable: this kind of an idea has a lot of scope and can expand across markets. increase productivity and increase bottom lines. which charge a high price per transaction. Take up secure space with another company C. advertising. Verisign and Thawte. it may cost a bit more but it is worth it as against the risk of losing your brainchild. c. ”Profit is an opinion. “Be distinct in the market place” you have to prove you are better than the others and in what way? f. Is the product of the nature of a slow moving commodity? For products like antiques. So. The First move towards e-business-“the idea” 1. The former does not give certification to Indian companies and the later is soon going to be taken over by the former. it is preferable to go on net since there are larger prospective customers that can be tapped at reduced costs. If not in India patent your idea with an international authority. It helps you to certify the real identity of the merchant. B. paintings etc. You have to analyze what you are offering your customer in terms of value!!!!! An idea which has no impact on society is not a good idea. Tie up with a US agent. It should not be averse to the constant addition of new features to attract eyeballs. Malleable: it can adapt to new markets and can forgo what it had initially started with. 7. Unique and probably offers you “the first mover advantage”. franchise or whatever may be the case. Unambiguous and clear picture of your idea helps reduce cost and cycle time.5. The source must itself have growth powers at least for the next 10-15 years. Patent the idea: “The world is your oyster and entrepreneurs are global people”. A good idea is one which is a. Whether it is from sales. The only real happiness is cash flow. 4. “Keep the HR ratio low ”.
"Anyone who thinks the customer isn't right, should try doing without them for ninety days." 6 .Know your client. On the Internet it is very easy to lose customers. Your client would most probably be from a higher income group and therefore usually a well read and opinionated bunch. These are the kind of people who get you other customers by their word of mouth publicity. A single dissatisfied client can spell disaster as seen in the case of Walmart: the superstore. One dissatisfied customer started a site called “Walmartsucks.com” as a sign of protest against the company and to date this site has attracted the several aggrieved customers of the store and has a million hits a day! 7. Know your competition. E-business faces competition from the real as well as the virtual world. Your competitor is just a click away. You have to be constantly alert and aware of the features being offered by him in order to keep your “critical mass” and retain your “first mover advantage”. 8. “Build a good team”. Your team should have mutually exclusive and collectively exhaustive skills. Team members should be experienced, energetic and enthusiastic. Get members from every field to make up for each other’s deficiency. 9. The team should have a shared vision. “Aspirations that can be achieved asymptotically” Microsoft has a shared vision of one P.c. for every task. This is a vision, which also serves as a continuous ongoing ambition. 10. Identify a clear leader. There should be no diffused authority. There should be only one leader, some one who brings more value to the table than the others. 11. Have a clearly defined value system. A value system is like the rudder in the ship to show you path in times of tribulation. "Even if you're on the right track, you'll get run over if you just sit there." -Will Rogers 12. The most important decision. SHOULD YOU GO IN FOR VENTURE CAPITAL? Clearly identify what stage of funding you are at. Is your business a start-up, initial growth, positioning for going public, seeking a strategic partner, looking for near future acquisition or sale? The options before you are Incubators Incubators are those individuals who fund you from the very nascent stage right from the conception of the idea. Angels Angels are individual private investors who make up a large portion of "informal" venture capital. These investors usually keep their money close to home . They tend to invest small amounts, and they can be difficult to locate because they usually don't belong to networks or trade associations. Angels are found among friends, family, customers, third party professionals, suppliers, brokers and competitors. For the most part, once they invest in two or three deals they are out of money.
Venture Capital These investors are out looking for huge returns not just good ones. Venture capital is extremely hard to get and the competition is fierce. Venture capitalist funds are only about 0.7% people, who come to them for funding. If you can afford it to, if your business model doesn’t warrant it, as far as possible avoid Venture capital for the following reasons. a. If venture capital is resorted to the CEO does not get more than a 10% share in profits. b. If the venture capitalist decides that you are not CEO material though you are a technological genius and though the idea belonged to you they will appoint an alternative CEO who will put an additional strain of 8-10% on the profits. c. You may want to reserve 30% post IPO equity for your employees, which would not be possible should you go in for venture capital. However venture capitals are not all negative and no positive a. Venture capitalists provide you with the necessary finance without which your idea is of no consequence. b. They build your confidence by showing their faith in you and investing in you. c. They connect you with a prospective customer network and key employee network. Exit Strategy Funding Sources want to know how you plan to pay them back. Will the business generate a cash flow large enough to support the debt? Is the product or service so in demand that the company will go public? These questions and more will not only help determine your success, but they will also narrow your search for the lender most likely to fund your request. 13. Prepare an inspirational model of what kind of wealth you want at each stage; right from the angel investor stage to the IPO stage. Having this model ready you are in a better bargaining position. 14. Make sure your interests are protected. Should the venture capitalists appoint another CEO over you Keep a 50% option vested the day after the CEO joins. 15. Do not shop around after you have finalized your venture capital. The venture capital community, especially in India is a small, close knit one and should this word spread no one will be willing to fund you. 16. Plan your supply chain. Online businesses also require huge external infrastructure support systems. The good part is that there are software companies like Euclid,SEEC etc which provide outward as well as inward bound logistics. 17. Hire a lawyer or a consultant to help you negotiate carefully. Today it is possible to offer a host of “anytime, anywhere facilities “ due to the Internet, wireless and mobile paradigm. Facilities that were previously on desktop can be provided at the touch of a button. The aim of entrepreneurship is to make the computer as ubiquitous as electricity. This is possible with the assistance of multimedia and interrupt based alert mechanisms. For example if a person wishes to bid at an auction for a certain price he could have his interrupt based alert mechanism give him an alert signal on his palmtop irrespective of where he might be as the bid draws closer to his offer price. In a
similar manner tickets , books and a host of other items can be bought using the interrupt base alert mechanisms. "Doing business without advertising is like winking at a girl in the dark, you know what your doing, but nobody else does."
Indian Government has liberalized the telecom sector and due to lack of infrastructure facilities in India, there is a tremendous scope of growth in this sector. The Indian IT industry is growing at the rate of 40% per annum. There has been sharp rise in the IT industry if India and is growing at a rate of 40% per annum which shows that there is a great scope for the companies who want to enter this field. Intense competition can be foreseen once the private players are allowed to be ISP’s. About 200 Indian and MNCs are trying to become ISP’s in India so then going to be large competition in this market. OPPORTUNITIES Liberalization of telecom sector Rapidly growing industry. THREATS Instability of government and the erratic government policies Fast technological obsolescence Lack of telecom infrastructure Slow down of Indian economy
LITERATURE REVIEW .
It provides an environment where customers are empowered to control the buying process more effectively. spontaneity. It provides a platform for complete relationship management not just a one time transaction. And probably the quickest way to save time and create business. and cost reduction. " Randall Whiting. and clients. E-commerce includes the creation of an open marketplace. chairman and founder of Commerce Net defines electronic commerce as "the opportunity for companies to electronically exchange information and services that are important to business. Driven by the Internet (also called Internet Commerce'). is through e-commerce.ELECTRONIC COMMERCE Time is money. president and CEO of CommerceNet states that "E-Commerce is about a global electronic marketplace that enables all members of a value chain to interact spontaneously for mutual benefits. The ability to conduct critical back office transactions in a fast. The success of e-commerce has led to its implementation in many important business sectors. receiving and accessing personalized information. retail and transportation industries. Electronic commerce is a big picture phenomenon destined to change business habits in more than one way. secure and reliable way has become as major part of the manufacturing." . interactivity. It is rapidly being adopted in other vertical market sectors. pervasiveness. electronics commerce is rapidly emerging as an entirely new method to conduct business and interact with suppliers. thereby generating income. Jay M. Applying all elements of this new model brings new dimensions of speed efficiency. Tenenbaurn. partners.
Today. from information exchange and relationship building negotiation and contract agreements to transactions and fulfillment logistics. tightly specified message formats and industry standards Store-and-forward massaging to transport messages through an intermediary over a VAN Batch oriented rather than messages operation Internet Commerce Internet commerce revolves managing and conducts a business transaction using the Internet. ordering. goes beyond using the Internet as a transport mechanism and presupposes that participants have web access. the web browser is used as a software client for interactive access to a web server implementing ecommerce. Components of the transaction may include catalog display. EDI is a form of program-to-program communication that lets business applications in different organizations exchange information automatically to process a business transaction. EDI features and technologies differ from those offered by Internet commerce. the main form of e-commerce has been EDI. order fulfillment payment processing and back-end integration. Internet commerce largely consists of web-based e-commerce.TYPES OF ECOMMERCE The two main forms of e-commerce are EDI and Internet-based e-commerce. Internet commerce embraces all stages in the trading cycle. a subset of Internet commerce. but these differences win become less pronounced as Internet commerce matures and as traditional EDI utilizes new Internet-based technology. EDI typically has the following characteristics: Direct application-to-application exchange of information Well-defined. Electronic Data Interchange (EDI) Historically. ELECTRONIC DATA INTERCHANGE AND THE WEB EDI and the WEB . Web commerce. web-based e-commerce is the most widely used form of Internet commerce. Typically. Currently.
One can interact with a remote person in a variety of ways. which makes Internet commerce so popular than EDI. voice. you make them available. both as consumers and as businesses.Sender and Receiver Business relationship Transaction volume Regularity Primary hub use Computer-to-Computer Person-to-Computer Established business partner Established or brand new relationship relationship High Regular replenishment Purchase orders to suppliers Low to moderate Irregular or adhoc Open selling to distributors View inventory and shipping EDI and Web work together Transmit shipping data Advantages of Internet-Driven Electronic Commerce over EDI Internet-Driven Electrode Commerce is running at a rapid growth. Spontaneity . it already has many potential ready users. while doing a transaction. By reaching the markets. or video.There is no need for establishing lengthy predetermined procedures in order to engage in a relationship or transaction. such as by email.Because of the spread of Internet access.The Internet is both a marketplace and a delivery vehicle. These are as follows: Interactivity . . What Internet commerce offers which EDI commerce does not? There are four important characteristics. Pervasiveness . The creation of a marketplace.
Database Building World-wide club Dynamic relationship marketing 3. from gathering research. the Internet has its positive and negative features. explore libraries and encyclopedias all on -line. PROSPECTS OF INTERNET IN MARKETING 1. selling and distribution. Internal communications Intranets Extraneous 6. New product development Collecting new ideas Tailor-made. cost reduction and last but not the least promotion. or make contact with old friends and new friends.Marketing research Market information Competitor information Customer information Miscellaneous information Collect cost saving ideas 2. new product development internal communications. relationship management customer service. Distribution Products services Purchases . There is no doubt about it. You can discover how many cans of Coke are left in a Coke machine the on side of the world.Customer service Self servicing customers Self service customer abuse Self-service cost saving 4. to database building. products 5. Cost reduction Print and distribution Phone calls Customer service Collecting cost saving tips Revenue generation 7. Internet can help marketers in more ways than one. tour a museum. watch live coffee being brewed in a coffee pot. moral and social perspective. Both the organization’s own web site and other organization’s web sites and associated technologies can help marketers in many ways. the Internet has its good and bad aspects in ethical.MARKETING WITH INTERNET The Internet provides an endless array of both useful and useless type of information. Equally in marketing.
Selling Few fairy tale sales stories New markets Small value.8. Promotion Have a presence Interactive advertising Creative sponsorship Sales promotions Public relations Database marketing . big turnover Sales management tool 9.
The next stage.ARENA OF MARKETING RESEARCH There is a lot of marketing research which can be collected on the net ranging from market analysis. which must be purchased. Monitoring an organization’s own web sites visitors can also reveal which competitors visit which pages of your site. There are also several information organisations online that charge per inquiry for delivering an origination’s financial results and analysis of results on-line. new visions and sometimes. the information is used to reduce risk and take better decisions. It is worth getting to know what is available. An organization’s Web site provides useful information. through to creative ideas. the defining of what information is needed is the crucial first stage. brands. The Internet adds a huge resource. industries and individuals can be tracked. Having said that the net still provides a fast and sometimes free resource. so huge that some feel that the Internet alongside other new sources provides too much information for the average manager to cope with. a vast amount of background market information is freely available. Some services are free and others charge for certain sections. The first port of call for competitor information is often the competitor’s Web site as it reveals some thing about the organization. Carrying out word searches for brands. to customer interviews. Finally. Competitor information Whether your own company or a competitor's. It is possible to tap into news groups and discussion groups asking if anyone knows where specific types of information might be found. Commercial sources also offer a wide array of information. newspapers to journals. and its culture. Well. Keeping a log of useful sources is essential.a skill not taught in universities. As with any marketing intelligence and information system. internal newsletters. Next is filling it . monitoring the most popular pages may reveal product preferences among customers and therefore give clues about which products might be worth supporting with heavier promotional spends. Market information The Internet provides a rich resource for research. competitors or even your own organization can reveal what others are saying about your organisation. Members are usually happy to help their net colleagues by pointing them in the right direction. . Some organisations constantly monitor relevant news groups and discussion groups for any comments about their brands/organisation. as much as an organization wants to reveal when it puts up its own site on the Web. the net reveals all. Incidentally. products. new products. From government reports and statistics to tourist’s boards. is finding or souring the information and logging these sources for future use. journals and press clipping services offer search facilities so those articles about specifically named companies. its employees.hard information such as financial results. The net provides a bountiful channel for customer research. The problem is that there is more information available today than ever before. Many newspapers.
a McDonalds on-line visitor's question: 'Why didn’t I get a shamrock on St. Discussion groups. several opportunities arise: Trapping their data onto a database and developing a dialogue. and multimedia and based on a sense of community. The web visitors become collaborators in the creative process e. World-wide club Today's database and relationship marketing technique help to build sophisticated membership clubs. hundred of thousands and sometimes millions of interested visitors entering a particular web site. we still all want to share a sense of society and community'. ART OF DATABASE BUILDING With thousands. The full details of the visitor are usually captured either through registration (when entering the site) or other form filling activities required for competitions.. Patrick's Day?’ prompted a possible new promotional idea for next year. The power of good branding on the net is apparent particularly when more McDonalds customer feedback revealed 'seeing your logo on the Net made me hungry'. Dynamic relationship marketing Marketing now has the opportunity for Dynamic Relationship Marketing to move away from mass images and move towards tailored messages (mass customization) and direct feedback delivering a dreamlike dialogue between the brand and the customer.. 'In today's global village there is something intensely satisfying about forming a part of a world-wide club and discovering shared interests with someone on the other side of the planet… tribal instincts are still strong . free gifts and further information. The Internet provides this opportunity. opens ended. The net can provide a continual dialogue between customer and company.g. new promotions and even cost saving ideas. It has been suggested that brands should be seen as places. member involvement and speedy response all help to create a sense of involvement and a type of 'active ownership' of the brand itself .Customer Information On-line feedback from customers visiting a web site provides the opportunity of carrying out a continual focus group. This does not replace regular face to face focus groups but it does add a rich layer of information. which supports a relationship marketing strategy. Miscellaneous Information On-line research can collect information and ideas about new products.
And if the relationship is invested in and nurtured carefully it will literally be extremely difficult. which not only reduces operating expenses. . The first competitor to implement 1:1 marketing will steal an advantage. it offers a permanent advantage.Dynamic relationship marketing encourages mass customization. for the losers in this competition to catch the winners. if not possible.
Their Web site has generated dissatisfied customers because their problems had apparently been ignored. Nike and US Airways. Self service customer abuse Any customer service can damage customer relations if the responses are slow. to customers to insult them. FAQ's (Frequently Asked Questions) can be answered on line instantaneously. The Web address should also be given out and call us advised that they can also send an email. When calls are intercepted before reaching the operator. find answers to FAQ's (frequently answered questions) on the Web site if preferred. a lack of response will suffice. The problems are aggravated. for example. which allows customers to help themselves. ineffective or non-existent. You don't have to be abusive. the system tells callers which numbers to press for various departments. On the Internet. friendly and personal manner. order brochures and annual reports. however. Sun's round the clock technical document facility.use the record message on the switchboard's automated operator system. Self-service cost savings Self-servicing customers save the organization time and money. In fact customers can service themselves. including Mobil.ESSENCE OF CUSTOMER SERVICES Self service customer service Won-designed Web sites can offer round the clock service for customers who have access to the Internet. request press information. clearly and in a polite. . and some. However it isn't hard to improve as most organisations are starting from a relatively low level of customer service on the web. expectations of speedy responses are high. has decreased customer calls by 20 percent. Paul McFarland reinforces this idea by adding a ‘zero cost way to promote a Web site to an absolutely key target audience' . Only one third of the companies bother to respond within 24 hours. This is particularly true of the Internet. It is possible to build in personalized messages to the customer to check to see that everything is now alt right. when already agitated customers with problem cannot get through or cannot get a clear or friendly answer. didn't bother to respond at all.
AN INSIGHT .
hatemail.slow downloading and slow access. infiltrators and vandals. database abuse. at the same time it can obviously hinder marketers from their tasks. mailbombs.fakemail.addicted. mistaken and maltreated. As there are a lot of advantages of Internet technology.INTERNET IN MARKETING Information technology and technology in general creates advantages and disadvantages. rogue sites. Technology can be used. abused. useless material. The Internet can also hinder marketers in many other ways. viruses E-nasties . slow customer service response Global complications No PR gatekeeper Security . depressed. unwanted enrolment Dumb search engines Unaudited audiences Exhausted audiences . Some of them are as follows: Failed expectations .credit card fraud. overloaded Cyberskivers Trademark hijacking Tax complications . misunderstood. misused.
incomplete sites. Because of the security risk involved in giving credit card details over the Internet. database abuse and rogue sites all present serious problems to marketers. regulatory body's etc. customers. unless the site has exclusive areas or 'members only' areas which are only accessed by member passwords. employees. The Internet gives rise to new unfounded fears since many customers are happy to release their credit card details over the phone. video clips. shareholders.Failed expectations Slow access (getting on-fine). The lack of cable infrastructure combined with the lack of high-speed modems and super fast PCs means that many users cannot download information quickly. Security .credit card fraud Nothing is 100 percent secure. Certainly the incomplete web sites with pages 'under construction' and slow access combined with slow downloading means many users are switching off and not returning again. Credit card fraud. Digitized photographs can take three minutes to download onto a PC. On top of this. slow downloading. infiltrators and vandals. No PR gatekeeper Customers and competition are watching you! Different audiences can access the same message. Moving into new media requires more than placing an existing brand on a web site. This demands new thinking on the part of the public relations team who previously could act as an information gatekeeper and tailor messages specifically for the local community. slow customer service responses. It can take up to ninety minutes to download three minutes of music. Poor quality materials and difficulties of downloading images. combined with a plethora of useless information. Internet is also not an exception. malicious information and useless information are also some of the reasons for disappointment. all create a certain sense of disillusionment and an overriding feeling of failed expectations. incorrect information. Global complications The global nature of the Internet presents two problems in marketing: branding and compliance. There is a real lack of 'net savvy' with lots of poorly designed web sites built without any underbid instructional ~ blueprints. This means that a pressure group has access to the same information which the shareholders might see. many customers are hesitating and not following their electronic enquiries fight through to purchase. pressure groups. . the explosion in users and the subsequent growth of traffic is threatening to clog the system making it difficult to access popular pages at peak times or even get onto the Internet in the first place. The Internet does not live up to its promise currently.. Different audiences or 'publics' have access to the same information on most web sites.
Measuring user hits can be misleading. they could. So. . Ale recipients are informed that they have won. The problem is that one person can roam all over a particular web site and register a click for each page. Downloading multimedia presentations opens up the receiver's computer to the dangers of collecting a virus. sacked. marketers are interested to know about the audience. since one user counts as multiple hits when accessing multiple files or pages on the same web site.Hackers can break into a site and change the content put up a rogue site or satirize your web site. person. item or subject a user can call up a search engine and key in a word. insert thousands of tiny words almost invisible to the eye. seconded etc. Measuring audience sizes currently presents marketers with a problem: many sites report the number of ‘Hits'. Dumb search engines When searching for a particular brand. if a competitor wanted to grab all the Internet traffic aimed at its competitor. A virus can destroy flies and sometimes hiding until it is released later at a specific time. Nasty messages. With a click. or hatemail. Fakemail messages can come from anyone. 100 megabytes of messages and mailbombs have previously brought one organisation's computer system to its knees and led to the organisation's Internet supplier suspending its access. been promoted. are not quite the same as the 'traditional' fakemail since hatemail is real email sent by very angry people to very real people. E-nasties There are other nastics out there on the Internet including Fakemail. Fake email messages seem humorous but can have a devastating effect on some of the recipients. The big worry for anyone using the Internet is catching a virus that will eat into our files and destroy everything. even registering a click if they go back to a page already opened. logos or images. hackers can copy a web site into their directory and alter words. which looks innocent but in fact uses the competitor's name on their site. Some search engines search according to the number of references a particular site might have. Users might mistakenly access the satirical site when looking for the real site. The tiny words could be laid out to form an overall pattern or image. Unwanted Enrolment and viruses. Worse still are the Mailbombs. thereby becoming invisible to the eye but visible to some search engines. Un audited audiences As with any medium. Mailbombs. Another naughty approach is to insert a word repeatedly in the background m the same colour as the background color.
So Microsoft will register their 150 domain names (one for each country). In the vast cyber world. Penthouse. Companies that don't register their names complete with the country of origin suffix leave themselves vulnerable to local laws of name ownership. addresses ending in 'UK' and 'IE' is United Kingdom and Ireland respectively.Exhausted audiences Information fatigue is all around us. the accurate information. Trademark hijacking Internet domain names have a country of origin attached to them e. the easily updateable information. frustrated and increasingly anxious and might just switch off. which increases illness and ultimately poor performance and absenteeism. In fact information fatigue syndrome contributes to stress. in one month. Nielsen Media Research revealed that employees from Apple Computer Inc. The Asian country Turkmenistan has become another country Keen to sell Internet domain name. How to find the relevant information. users can eventually get lost confused. Cyber-skivers Surfing. is now compounded by Information Addiction. AT&T and IBM collectively spent 350 eight-hour workdays visiting the soft porn web site. Where should taxes be paid for goods and services provided over the Internet? In which country does the transaction occur? . browsing and wandering around the Internet can cost time and money: executive time and phone bills as well subscription bills. Tax complications A problem that won't go away. Not all countries allow this kind of trademark hijacking. Almost 100 books are published daily around the world.g. There is too much information out there.
provide timely or updated information to keep them coming back. Timely information To make sure that your site is a regular stop for visitors. Feedback Keep the Web site interactive and try encourage visitors to provide feedback and the service or to provide new information. This can be. Neat design . Think about how the needs of a local customer might differ from a visitor on a different continent. and make sure that the site is well designed and fast to download so that they are not put off by slow speeds. If you are a small company. Provide a service In order to attract new visitors and to keep regular visitors coming back. The problem is that although this might seem like a marketing dream. you will find it useful to write down your marketing tasks . The best way to ensure success is to include all the information a visitor might want. make sure that everyone in the department knows about the Web site and how it works.together with an agenda for actions. you need to provide the visitors with a service. Global requirements Make sure that you provide relevant information for your global audience. Following are few rules to make marketing effective on the Internet so as to compete in the market. you have to tread very carefully and observe the Internet rules of etiquette. With the Internet this means someone should participate in newsgroups. answer e-mail messages and ensure your 'Web site is up to date. Integrate Internet Marketing Try and integrate Web site marketing efforts and budget within the overall marketing for the company.FUNDAMENTALS OF EFFECTIVE MARKETING ON THE INTERNET The Internet provides an excellent communication tool that lets you reach tens of millions of professional users. costs and results. Participate on the Internet One of the best forms of marketing is to go out and be heard. If you are a huge company.for traditional and Internet marketing . as simple as including information on your worldwide distributors or providing pages that are translated into different languages. make sure that you include updated and timely information about your products or services or information that might be useful to your visitors.
others are simple and need only forward planning. if you have spent a lot of effort creating a rich site you could spoil it with too many graphics that take minutes to download. Here are the best ways you can improve the traffic to your site. Use newsgroups to reach-an audience Link to related sites Swap banner advertising Announce your Web presence Use signature flies Provide something for the visitor Select an effective domain name Register your Web site with search engines Submit your Web site to magazine reviews . Increase the number of visitors There are many ways of increasing the number of visitors that come to look at your Web site. Some require effort on your part.Keep the design of your Web pages neat and ensure that there are not too many large image files that would take a long time to download.these traditional marketing methods can be measured and will reach existing customers. It is not worth developing a Web site at the expense of print advertising or mail shots . For example. Don't abandon other channels Treat the Internet as a new opportunity rather than as a replacement for existing marketing and advertising.
and advertisements. an entire industry has grown up around Web-site development. although with substantial benefits. Today. The most effective way to do this is to get your site listed on a variety of "search engines. On the Internet. such as Yahoo! (www. the most common way to advertise your site (and hence. worldwide access.lycos.excite. and the ability to communicate with customers (this is called "interactivity") and create a "community. in particular. You can increase traffic through the smart use of promotions.Correlating Internet with Marketing and Advertising www. You can advertise your site with so-called "banner ads" on other sites. you can create a Web site to attract customers and clients. promotional. it gives you access to many more prospects for a price that is comparable to developing a print-marketing campaign.com few years ago. and the Web is a well-accepted new medium of communication.com)." or places people go on the Web to search for specific Web sites. These four steps comprise the building blocks of advertising-and-marketing on the Internet. Entrepreneurial companies. For companies. companies ranging from industrial giants to emerging startups are using the Internet as a marketing-and-advertising medium. on the Web is through something called a "banner ad". and Excite (www." (which might be a banner ad for an airline or a travel service).com)." While building a great Web site can be expensive. A banner ad is the image that you see at the top of a Web site that says something like "Click here to fly to Jamaica. You can use e-mail to round out your electronic business-building efforts. What follows is a discussion of each. Taken together. such as lower distribution cost. Lycos (www. Advertise Your Site Once you've got a Web site up.toyota. building a Web site was a mysterious and complex task.com)--that help you get listed in these search engines. Today. can benefit tremendously from the use of the Internet as a marketing. no one would have known what this meant. they are unleashing the fastest-growing marketing opportunity since the coming of television a half century ago. In addition to creating your own Web site. it is critical that you publicize the existence of your Web site.submit-it.yahoo. a Web site is becoming as common as a printed brochure. business cards. There are a number of products--including Web-based ones such as Submit-It (www.com). Several years ago. . Build a Web Site The starting point for any company interested in using the Internet as a marketing vehicle is your own Web site. your business). Many small companies overlook this and forget to include their Web-page addresses on printed materials. and advertising tool. Publicizing your site on the Web is also important.
com).simWeb. If you want help getting your ads placed for a reasonable cost on other people's Web sites. there are non-spam ways to use e-mail effectively as a marketing tool. so you should make sure you measure your click-through rate. companies such as Email Publishing (www. the audience that would be interested in getting your company newsletter). Use E-Mail and Promotions Another powerful.doubleclick. a number of advertising agencies are now helping companies--including small and medium-sized ones--develop banner-ad campaigns to compliment their print and other media campaigns. Spam is often perceived as an offensive use of the Internet. However. This is what you really want to have happen. as well as monitor your CPM. there are a number of "ad networks" that help promote banner ads.emailpub." It's one thing to have people see your banner ad." This represents one thousand people actually seeing your banner ad. In addition. the basis for pricing banner ads-is something called a "CPM". as part of assessing your electronic advertising campaign.com) can help you with this task. If you have an audience of people that is interested in receiving information about your company and products on a regular basis (for example. This Internet equivalent of junk mail is called "spam" (named after the famous luncheon meat).com) charge substantially more than low-traffic sites. help you plan and execute "friendly" direct-marketing campaigns on the Internet. and SOFTBANK Interactive Marketing (www. The most common measure of effectiveness--and thus.yahoo. . or simply clogging up your e-mail inbox with garbage.com).makeitsoinc. such as Make It So (www. Not surprisingly. However.com). it gives your Web site and your products or services visibility on other sites on the Web. is the use of e-mail. it drives traffic to your site through users "clicking" on your banner ad and going to your Web site.net). but somewhat controversial source of Internet advertising and marketing. In other words. First. Directmarketing companies. it's another to have them actually click through to your site. I'm sure many of you have gotten unwanted e-mails telling you about amazing new products. DoubleClick (www. These include Link Exchange (www. hightraffic sites such as Yahoo (www. use e-mail to round out your electronic marketing efforts by targeting specific groups of prospects. Second. suggesting money-making schemes. the real measure of effectiveness is something called a "click-through. Other Web sites charge you to put a banner ad on their sites.Putting a banner ad for your Web site on someone else's Web site accomplishes two things. which stands for "cost-per-thousand impressions.linkexchange.
So build a Web site.yoyobiz. many business owners overlook linking the Web to promotions for their companies. albeit judiciously. you will have created something you wouldn't have known could exist in the distant past of two years ago: . Use e-mail. Advertise it with banner ads. or a give away of products or services.Finally. When you run a promotion for your company.com) specialise in bringing promotions to the Internet. such as a twofor-one special. you can often link this to your Web site to expand the scope of the promotion. Once you've done all this. Companies like Yoyodyne (www. it is a great extension of the non-Internet promotion that you are doing. Link promotions to your electronic home. Since the Web is fast becoming the most widely used interactive medium.
setting up a home page is a good way to let the world know what its product and services are. For an organization or institution. e-mail. research data. you wanted to pole the readership for a magazine or conduct a survey to detect the pulse of a selected community. Using forms.INTERNET. where one can post a question and get answered by hundreds of people who participate in these discussions. The Internet also helps disseminate information. There are hundreds of discussion groups and list servers.. what are you doing/have done. etc. where knowledge is the power. Compiling information: This is obviously a special case of getting information. web provides you an opportunity. products. programs such as the Gopher were developed to help present material in some logical fashion. and how. .A NECESSITY TODAY!! We live in the information age. One will be amazed at the amount of information available through the Internet. The Internet helps in three ways: To get information To provide information To compile information To get information: One can get information about people. The best and most inexpensive way to let people know who you are. The most recent and very successful attempt at presenting information over the Internet is the World Wide Web (WWW). you can conduct surveys and get opinion of people across the world. If. To make all of it more easily available to users. organizations. for instance. It is possible to get specialized information from the web. electronic versions of printed media etc from the Internet. Providing information: Most of what you want to provide could be considered as global advertising.
RESEARCH METHODOLOGY .
Ascertain the consumer preferences and satisfaction factor. This is in fact management problem.RESEARCH METHODLOGY • • • • • Objective of the Research accomplished Research Design Data Collection Questionnaire Sampling Procedure OBJECTIVE The objective of research is to find out the market share of different music system player & to find the perception. . The questionnaire was designed in such a way that it could be helpful to solve the research problem i. Identifying and researching one problem may lead to the recognition of other problem and to additional research to help in solving them. analyzing and reporting the information specified in the research problem.e. The objectives of our research are to: • • • • • To identify the market. To ascertain potential market and competition. which will be defined in the due course of the proposal. Then the process involves collecting. product and make an in depth comparison of the same on certain parameters. This management problem has to be translated into research problem. Gather useful information and provide a critical analysis through the use of various techniques. to find out the market share and to find out the preferences of consumers in this industry. To highlight the perception of the consumers for the internet. In order to fulfill the objective of the research a set of questionnaire was developed.
newspapers. exploratory research helped me to gather information from the secondary resources. Surveys Data Collection The whole research based on primary data as well as secondary data. DESCRIPTIVE DESIGN After conducting the exploratory research. I conducted the Descriptive Design using the following methods: QUALITATIVE METHODS: 1. I referred to various magazines. Thus we design our research on a combination basis of Exploratory Research design Descriptive Research design EXPLORATORY RESEARCH As I was unaware of the market for Internet. and industry association reports etc. shopkeepers’ catalogue and the advertisement. for further concrete details regarding scope of e-marketing I resorted to the Descriptive Design of market research. . internet. Under this I have analyzed the consumer behavior on different parameters. Primary Data: Primary data collected through the questionnaire from the various users & non-users of Internet Secondary Data: Secondary data collected through the magazines. The Descriptive design has given me a better insight of scope of e-marketing by bringing to the fore many minute details regarding the consumer preferences. and was able to gather information on the scope of emarketing. It has further helped I in a careful analysis of the secondary data and also refining the desired data by making the objective clearer. Focus Groups QUANTITATIVE METHODS: 1.RESEARCH DESIGN We carried out the research using a combination of primary and secondary data.
The time involved in. average amount kept at home. time. Time and Census versus Sample The time of cost we have just considered is an out lay cost. More often than not. however one or more of number of reason make it impractical or even impossible to take a census. we therefore must take sample. accuracy and destructive nature of the measurement. The time involved in obtaining information of either a census or sample involves the possibility of also incurring an opportunity cost. a wine by a few sips and a restaurant by a first meal and a new acquaintance by an initial meeting. Survey of industrial consumer or of distributor of consumer products are frequently in the form of a census. A sample is the only logical way of obtaining new data from or population of this size. I sample the kind of performance and service we can expect from internet. that is to measure each element in the group or population of interest. I can rarely do this. Accuracy and Census versus Sample The time of cost we have just considered is an out lay cost. there could be no need to sample. If all possible information needed to solve a problem could be collected.Questionnaire: Sampling Procedure Sampling is a necessary and inseparable part of human affair. the time we can take or other reasons. obtaining information from either a census or sample involves the possibility of also incurring an opportunity cost. These reasons involve consideration of cost. and the like) and the population of interest all house hold in India the cost will preclude a census being taken. Cost and Census versus Sample Cost is an obvious constraint on the determination of whether a census should be taken. Census versus Sample It is sometime possible and practicable to take a census. however because of limitations on the amount we can afford to spend. If information in desired on grocery purchase and use behavior (frequencies and amount of purchase of product category. .
g. STEPS IN SAMPLING PROCESS Steps 1. Specify sampling method 5. Specify sampling plan 7. The means of representing the element of the population e. Select the sample To solve my research problem.Accuracy and Census versus Sample A study using a sample may involve sampling error. a census will provide more accurate data than a sample but it is costly and time consuming. Map.g. Unit for sampling which holds the sampling household elements e. Specify sampling frame 3. The number of elements of the population to be sampled is chosen. Determine Sample Size 6. The operational procedure for selection of sampling units are selected. 2. probability / non-probability. Therefore other thing the equal. household.e. a census of all the consumer of music system in Delhi & NCR is taken . Specify Sampling 4. The office and field work necessary for the selection of the sample are carried out. The method by which the sampling unit to be selected is described i. Define population Description The population is define in terms of (a) element (b) Units (c) Extents (d) Time.. city block. telephone directory.
SAMPLE SIZE: • • • Round about 60 correspondents. Reasons for selecting convenient sampling. • • • Time constraint Resource constraint Cost constraint ] . It is based on the convenient sampling.
but our statistics holds a greater percentage of Delhi and NCR region.LIMITATIONS • • • The results through the questionnaire not always correct. But this sample size is too small to be a true representative for population size. which limited the boundaries of our research. Sample size The sample size taken for this market research was 60. But while conducting the research I found that the respondents were maximum in the age category of 18-25. Class limitation The targeted population was in majority from the middle and high income group. Convenient sampling some time leads to the distortion in results. Although I conducted telephonic interviews in different states. Target population The target population for this market group was 18 and above. which affected our inferences on the preference on the internet. The data collected from this sample size cannot be generalized for the population. The sample size of 60 consumers not sufficient for exact results Regional limitations In conducting the market survey on scope of e-marketing I found regional limitations as our research was limited to Delhi and NCR region. Thus adding biasness to the inferences .
DATA ANALYSIS .
Ques: 1 How would you like to make purchase? Options First 88 % 2% 8% 2% Second 4% 16% 50% 30% Third 2% 44% 16% 38% Fourth 6% 38% 26% 30% Directly from shop Through mail order Through Net Through phone Ques: 2 For how many hours on an average you surf the net in a week? 25 frequency 20 15 10 5 0 1--5 6--10 11--15 16--20 21--25 26--30 31--35 Series1 hours .
With the falling of Internet prices from Rs 50 to Rs 5 an hour will you increase the surfing hours? yes 30% no 70% Ques: 4 For what purposes do you surf net? 50 F R E Q U E C Y 40 30 20 10 0 e-mail 44 entertainment information downloading buying things 21 47 29 5 purpose Ques: 5 Have you ever used Internet for purchasing? .Ques3.
y es 10% no 90% Ques: 6 Are you planning to make purchase on net in future? 8% 8% 84% Yes No Cant Say .
Ques 7 What kind of products would you like to buy on net? 50 percentage 40 30 20 10 0 46 32 28 24 18 8 6 14 et te /c d ca ss Ques:8 How often do you click on advertisement on sites? 5 0 frequency 4 0 3 0 2 0 1 0 el ec tro ni c no 56%Series1 0 0 0 -1 4 4 1 --2 0 5 6 p en o th tim erc t f e e Ques:9 Do you feel ads on the net give more insights of product/service than other media? co nd om s so ftw ar e ga rm en ts go od s bo ok s gi ft tic k et s yes 44% >5 2 0 .
Ques:10 Do you receive e-mail from business sites? no 34% yes 66% .
Ques:11 How often do you respond to it? yes 7% no 93% Ques: 12a Mention the factors which motivate you to make purchase on net? percentage of the people 60 50 40 30 20 10 0 56 52 56 24 convinience secrecy wide choice saving of time factors .
RESULTS & FINDINGS .
. and among the rest 90% of people 75% are willing to make purchase through net in the future.FINDINGS 1. There is almost 60% annual increase in companies coming forward to advertise on Net. ‘wide range of choices’ and ‘saving of time’ have emerged as the main factors which motivate people for making a purchase through Net where as ‘security’ and ‘lack of actually feeling the product’ are the main factors which denominate people from making a purchase. All organizations feel that their presence on Net give them better opportunity to inform the customer interactively about their product/service and build strong customer relationship. Among various uses of net. 5. generally around 90% of the people use Internet for email/chat and 95% for gathering information where as only 10% of the people use Net for purchasing. 10. The idea of buying through Net is catching up slowly. 9. out of which 50% don’t reply at all and the other 80% which reply. 6. while it is only 8% for making purchase on the Net. this is around 77% rise in the Internet access. Presently 10% of the people use Net for buying things. Of all the products Books and CDs emerge as favorite products to be bought on the Net with 40% people mandate. On an average people click only 7% of the time on advertisements. ‘Convenience’. 7. Around 56% of the people think that advertisements on Net don’t give more insights of products and services than other media. 66% of the people receive mail from business site. 8. Most of the organisations feel that the environment is highly uncertain but are confident of exponential growth in terms of business through Net. 11. rest 90% are just for the sake of presence out of which 10% provide the service online but the payment is done off-line. 13. Around 10% of the organisations have active e-commerce sight used for transaction. This figure is expected to rise to around 16 hours a week with falling Internet access prices. 4. does it so only 20% of the time (i. 14. Around 88% of the people choose Brick and Mortar shop as their first preference for shopping. 2. 20% are 1 to 2 years old and 10% more than 2 years old. 3. seconded by electronic goods and garments with 255 people mandate. Around 70% of the sites are one year old.e. People at present on an average spend around 9 hours surfing the Net in a week. Nevertheless 50% people have purchasing through Net as their second preference. There is a trend of 80% rise in number of hits every 6 months. 12. reply 1 mail out of 5 mails).
the host site will receive Rs 500 for every 1000 hits from the organization who is advertising). which is also showing a rise of 60% annually. it is not dependent upon the timing but is priced according to ‘per thousand page views” which is a flat rate of around 500Rs (i. Around 0.e. As the organisations don’t have fully activated sites from the perspective of e-commerce due to technological bottlenecks they measure the efficiency of their sites through number of hits. The pricing of banner ads are also on the same basis.02% of the total hits materialize into transaction.15. Cost per thousand impressions (CPM) is used for this purpose. .
should result in a massive surge in world-wide demand for IT solutions for internet based activities and e-commerce. Convergence of Information Technology. Content and Consumer Electronics and the increasing penetration of internet. . The software industry in fact has been growing well with a CAGR exceeding 50% over the last five years. PC. The Government of India is taking all necessary steps to make India. the industry has been logging in extremely impressive year on year growth.RECENT TRENDS IN INDIAN MARKET Information Technology is the fastest growing segment of Indian industry both in terms of production and exports. The success story being played out by the IT industry at the global level is also being reflected on Indian soil. with more and more organizations embracing IT. has the momentum reduced marginally. The Government of India projects an export of US $ 50 billion by the year 2008 for the Indian software industry. and only in the last year. Communication. mobile phones. India today is well placed to offer quality and competitive IT products and services. there is also a huge market within India to transform conventional brick and mortar industry through IT solutions. The Government too is getting IT enabled and using state-of-the-art technology solutions to bring greater benefits to Indian citizens and improve its internal efficiencies. In addition to the global market that the Indian IT industry is well placed to tap. Entertainment. Driven primarily by software exports. The Government of India has announced promotion of Information Technology as one of the five top priorities of the country and constituted a National Task Force on Information Technology and Software Development. In recent times. Information Technology Industry in India has the potential of tremendous growth as a global IT solutions provider. India's international-class manpower that creates high quality software and services solutions is finding favor among overseas customers. India is being regarded as the hub and the base for world-wide IT solutions development. a Global Information Technology Superpower and a front-runner in the age of Information Revolution. India's IT industry ranks among the fastest growing sectors within the country's economy. Increasingly. desktop sets. ‘software development and IT enabled services’ have emerged as a niche opportunity for India in the global context. impacted by the worldwide economic downturn. Likely economic and industrial growth and a large consumer base are the additional and significant growth drivers for Indian IT industry. cable TV etc.
NEC. And as these two formats battle each other. Sony already announced plans for its first high-definition Blu-ray DVD players and recorders.Top 10 tech trends for India 1. Vijay Basrur of Inox Leisure says it is kicking-off one such initiative this February. Blu-ray will need whole new equipment setups. At CES 2006. . High-definition technology from Toshiba called HD DVD will also be available to consumers in March 2006. On the other hand. which is a problem. will reportedly go on sale towards the end of 2006. Digital ticket After the convenience of booking cinema tickets online. Market monitor SMD sees Blu-Ray and HD DVD discs (Moser Baer is already working on them) really kicking in only from 2007 onwards in India. The High Density Digital Versatile Disc (HD-DVD) is also in the news. either in Bangalore or Pune. Blu-ray is the next generation large capacity optical disc video recording format -enables recording.at least till 2010. Blu-ray is backed by Japanese consumer electronics giant Sony. Both formats are yet to agree on a standard. However. Not only this. comes the ease of buying tickets on your cellphone. While HD-DVD is promoted by Toshiba.7 GB to 17 GB). HDDVDs can store up to 15 GB on a single layer. Shringar Cinemas also has plans to start hawking tickets through PDAs in the next couple of months at its multiplex in Andheri. rewriting and play back of up to 27 gigabytes (GB) of data on a single side and can transfer date at 36 Mbps (the CD transfers data at around 150 Kbps while DVDs do the same at around 11 Mbps). CDs and DVDs are here to stay -. Bangalore-based Jigharak is believed to be working on the software application. For now. you will be able to book tickets using your personal digital assistant (PDA) or any hand held. technology head. the first holographic storage systems. the game is changing. HD-DVD is similar to DVD. Blu-Ray of hope Remember the 1. capable of storing up to 300 GB on a single disc (over six times more content than Blu-ray and HD-DVD).44 MB humble floppy? Now we only talk about CDs (can store around 650 MB) and DVDs (anywhere from 4. with the announcement of Pioneer's Blu-ray or Blu-disc format. hence analysts consider it cheaper for manufacturers to switch production lines. says Arshad Kazi. However. Sanyo and Microsoft and backed by four major film studios. And also paying for it through the phone. 2.
with the setting up of self-collection kiosks. a console/PC genre. awaiting its day. which was introduced on the BREW platform in 2003 -. As for the theatre screens. gaming revenue should increase. So. Indeed. which currently costs about Rs 15-20 lakh (Rs 1. MMORPGs such as Dark Age of Camelot. they will be installed in metros soon.2 billion. Costing around Rs 1 lakh each. mobile gaming is poised as the next big thing for the Indian gaming scenario. sound and data capabilities. And thanks to the next generation of cell phones with enhanced graphical. EverQuest and Star Wars Galaxies typically retail at around $40 with monthly subscription costs of nearly $15 per month. 3. Games people play The global mobile games' business is pegged at $ 2. even the introduction of MMORPGs in the mobile market should bring in a whole new audience. there is little crossover between those who play first-person shooter (FPS) games and those who play MMORPGs. D-Cinema (the high-end of digital cinema is still about five years away thanks to high costs) 2006 could see some upgrades of E-Cinema. there are servers hooked on to projectors that beam the pixels (read picture) onto a screen. But only two screens of Satyam Cinema in Chennai have real D-Cinema. Nasscom states this market could well touch $500 million in exports alone by 2010. Due to the stratified nature of online gamers. PVR Cinemas has already installed one in Bangalore. Kazi opines that it is a volume game -. states a recent Juniper report.5-2 million). . Currently. While versions of these games are currently available on mobiles -. with India accounting for around $100 million of the overall pie. Juniper expects subscriptions to be the key source of revenues for such games. around 150 theatres in India are digitised which means that unlike a celluloid print.they do not permit multiplayer play. However.EverQuest.000 screens are needed for cinema operators to be able to afford the D-Cinema projectors and servers. buying tickets will become as simple as withdrawing cash from an ATM. The price of a DCinema projector is four times that of an E-Cinema projector. for example.Moreover.at least 800-1. as the MMORPG community increases. In the console/PC market. in India is the massively multimedia online role playing game (MMORPG).
one out of two phones in India could be an IP phone. However. Plug into the IP Phone While Internet Protocol telephony is known in India -. Movies on Demand With Tata Sky planning to launch Direct to Home (DTH) services in May-June this year. We should also see the launch of digital video recorders this year which can record 100 hours of programing. it took just four months to sell the sixth million (total global sales till date). So you can always record your favourite programmes -. Tata Sky. Are customers biting? Yes. there are concerns over security. Dish TV. India might also see High Definition TV (HDTV) before 2006 is over. this too will be possible in 2006. Frost & Sullivan estimates the Indian IP telephony market in India to be around $ 54 million. though companies are taking care to .and watch them at your leisure.many of us having used it on the sly for the last four years -. VP (Marketing). dropped from $800-$900 four years ago to around $100 today. 5. since the IP phone uses the Internet route. In a few year's time. thanks to set-top boxes.5 milion subscribers. And do you want to replay Sachin's square cut repeatedly? Thanks to interactive TV. Cisco. consumers will have much more choice. Since the calls are routed through the Net (these phones have an ethernet phone in which your phone (copper) cable can be inserted). on an average. CEO. says Sunil Khanna. While it took Cisco three years to sell its first million IP phone. Gaming channels too are likely to become a reality.000 IP phones in the last couple of years. Dish TV would have 2. Khanna notes that HD-compatible television sets are already here but broadcasters need to get their act together. DishTV kicked-off with a Movie-on-Demand Service for Hindi films and this will be followed up with a service for English films in March. starting from Rs 60 and going upto Rs 300. the momentum's been building up in the last six months or so say broadcasters.000.000 now comes for Rs 4. Not to mention better picture and sound quality. The voice quality too has improved.what is little known is that Indian enterprises have bought over 100.4. opines Ranajoy Punja. Last month. Khanna believes that by March 7. A set top box which earlier cost Rs 6. Vikram Kaushik. IP phone prices have. says his company will leverage the expertise of BSkyB and Foxtel and customise the programmes to suit local needs. all the user pays for is the IP phone software and the Internet connection.six channels at a time -. IP phones transmit voice using data packets (similar to the way the Internet routes data) instead of circuit-switched (the way your vanilla telephone operates) connections over voice-only networks. And subscriptions are affordable. CEO.
And this trend is expected to catch on further in 2006. will domestic robots become popular? Not likely in the coming years. The estimated market size of this industry in India is anywher between Rs 125-150 crore (Rs 1. Of course. and ITC uses RFID to track what goes into the manufacturing of its cigarettes.in just one year. A United Nations report on Robotics expects the sales of such robots to reach 4. Indian suppliers to retail majors such as Wal-Mart.25-1.50 billion) and is said to be growing at 30 per cent per annum. like opening up narrow fallopian tubes in women. is tipped to touch 2. Tag on to RFID Radio Frequency Identification (RFID) technology is no longer only about the US and Wal-Mart. A Kolhapur-based general surgeon. auto-ancillary majors and machine tool players are using robots to meet global precision standards.ensure that the network is adequately protected and all messages are scrambled. However. IP phones (unlike the vanilla phones) can be customised. And now a Pune-based urologist has taken the lead for using this technique to treat prostate cancer and other urological disorders. it will unwittingly create a demand for RFID tags in India. robots everywhere Aibo has a cult following in the United States and Japan. Suresh Deshpande. iRobot says it has sold hundreds of thousands of units of the Roomba -. The market for entertainment and leisure robots. With labour cheap in India. The sales value is estimated at over $4. These are but a few cases in point.5 million units with an estimated value of $3 billion. 6. treat this Sony robot as a pet. vacuum cleaning (the Roomba by iRobot) and window cleaning. on the other hand. While this may lower margins of these suppliers. has also developed a laparoscopic robotic arm fitted with a camera to perform orthopaedic surgeries.5 million units. along with a young IT engineer. Metro. . self-propelled vacuum cleaner that sells for around $200 -. Robots in the US have already taken over domestic tasks like lawn-mowing. including toy robots. Target and Tesco have already been issued directives to replace barcodes with RFID tags. Robots have also been used in cardiac surgeries. Japanese consumers. more than 45 colleges in Pune have introduced student identity RFID cards that allow students access to hostels and monitor their classroom attendance.4 billion. Pune University's Jayakar library uses RFID tags on its books as well as library cards. Robots. Many Indian auto. American AIBO buyers tend to be computer geeks who want to hack the robotic dog's programming.a self-guided. robots have other uses in our country. 7. Pantaloon Retail India and Shopper's Stop have RFID tags in their factories. the Chitale Dairy at Bhiwladi in Maharashtra's Sangli district has installed RFID to monitor the feeding patterns of cattle and bisons. Vikrant Yadav.
you listen to the content on an iPod. imagine a desktop aggregator where you subscribe to a set of feeds. Podcasting works similarly. note analysts. With smartphones getting cheaper by the day and 3G networks becoming commonplace (well at least in developed nations). predicts Gartner. It also has a MP3 player. All we need now is empower people with video phones. The new intelligent vehicle Telematics. the REVA-NXG introduced this April as a "concept car" in Monaco. and the telematics package will automatically make this information known to the vehicle manufacturer and service organisation. 2006 will see the growth in 'mobilecasting'. considered to be prohibitive when tagging hundreds of products. audio and audio-visual entertainment content. RFID tags are expected to be used for data collection in largely chaotic or unstructured business processes like retail environments to hospitals. and a Flickr-like tool to upload audio and video to RSS-enabled websites. 9. Juice was the first major podcasting software (downloads podcast media file like oggs/MP3) and is still the most popular podcast aggregator. The recently-introduced Tata Novus range of commercial vehicles feature the 'TRAK i t' Vehicle Locater -. This is not mobile blogging or podcasting now -. Where the Podcast's headed If you have an iPod. For the uninitiated. Many Indian logistics companies too are using GPS to track vehicle movements and errant drivers.a GPS system for vehicle tracking. except that instead of reading. Global Positioning System (GPS) is being used in KSRTC buses (pilot project) in Bangalore. 'TRAK i t' Vehicle Data Recorder -. Worldwide RFID spending is expected to surpass $3 billion in 2010. The rates are bound to decrease this year. a vehicle's in-built systems will identify a mechanical or electronic problem. 8. Vehicle telematics systems are also increasingly being used to provide remote diagnostics. as an enhanced safety feature. 3G mobile telephony.we're talking about a social revolution and that's mobcasting. A Research and Markets report pegs the figure at $6 billion by 2010. Internet is accessible via GPRS. is catching up in the transportation sector. For instance. Our cars too are becoming smarter. and electrical systems that ensure 'vehicle start' in neutral gear. predict tech pundits. Other forthcoming applications include ondemand navigation. you would know what podcasting is. integrated use of telecommunications and informatics. It also doubles up as a GPS navigation system. RFID is not a bar code replacement.an embedded computer based on Mobilius having a touch screen display which shows all essential information about the car like speed and mileage.The current cost of tags is anywhere from Rs 5 to Rs 30.for critical vehicle and driver performance recording. Mobilecast (a software to convert podcasts to Adaptive Multi Rate . While bar codes are better at collecting data in structured places like warehouses (likely to continue for the next five to seven years). was fitted with a `wireless tablet' -.
It is also reportedly working with Bharti and Navini Networks. Intel (which also plans to introduce a WiMAX computer chip) is said to be working with Reliance on a pre-standard WIMAX pilot project. Wi-Fi on steroids Worldwide Interoperability of Microwave Access or WiMAX is the new kid on the block. The ability to provide these connections wirelessly. Thereon. greatly lowers the cost of providing these services. without laying wire or cable in the ground. All this will entail an increase in India's optical fiber network which currently stands at 670. WIMAX covers wider metropolitan or rural areas. and is in talks with BSNL for similar pilot projects. WiMAX (802. where the telecom infrastructure is poor and last-mile connections are typically through copper cable. Podcasters have now begun brainstorming on how to create podcasts specifically for mobile phones. 10. Satyam Infoway is on the way to adopt WIMAX.(AMR) converter for mobile phones) and mobilecasting have become the 'One' when it comes to downloading and listening to podcasts on mobile phones. It broadcasts its signal over many more channels than WiFi. Intel and BSNL have already introduced Hot Spots (wherein you can connect your Wi Fienabled (or Centrino) laptop to wireless network and logon to the Net instantly). splitting the podcast into segments of 10-minute AMR audio files for the mobile phone. All you need to do is install and configure Mobilecast on the iPod. It is meant to solve the last-mile problem. the Indian government is expected to introduce 3G by 2006. Digital Subscriber Line (DSL) and fibre optic. 3G will help in enhancing India's competitiveness in the ITES / BPO segment.000 km (all providers including BSNL). thus helping them travel as far as 30 miles. it will be run after each podcast downloads. Besides. Taking over from Wi-Fi or the 802. and those channels are less cluttered. Its signals face less interference. installation costs are high as it requires ripping up streets to lay cables. Meanwhile. .11 b technology. Intel and BSNL have already introduced Hot Spots (wherein you can connect your Wi Fi-enabled (or Centrino) laptop to wireless network and logon to the Net instantly). WIMAX provides metropolitan area network connectivity at speeds of up to 75 Mbps (compare that to WiFi's 11 Mbps). In India.16 a) promises to bring bandwidth to the masses at higher speeds this year.
28 0. the ECommerce has also started to show its true potential in India. India’s E-Commerce solutions are becoming a sought after commodity around the world.4 2.GROWTH OF INTERNET Date 31-Aug. Evidently.002 0.6 0.45 0. even the E-Commerce based businesses are leaving their distinct marks of technology competitiveness. While on one hand.8 4.05 0. INDIA .97 31-Mar-98 31–Mar-99 31–Mar -00 31.Thus.7 1.25 0.9 1.5 15 31-Mar-06 10 32 31-Dec-06 15 50 .09 0. viable business model and entrepreneurship.Mar-01 31. E-Commerce is not just a western version.14 0.5 8 31-Mar-05 4.03 Users (in Internet Connections (in million) million) 0. The most talked about and now wellendorsed feature of E-Commerce is its global flavor.8 31-Mar-04 2.Mar-02 31-Aug.01 0.
Internet penetration in India has jumped substantially over the past two years. enabling themselves. • • • • • • • The Capital Cities (New Delhi and Other State Capital) accounts for 79% of Internet Connections of the Country. short range outdoor W-LAN applications and last mile Internet Access. The proliferation of Internet across the country: According to recent studies conducted by leading industry bodies. Most businesses today are entering or at least planning to enter into internet domain. Facilitate direct access by ISPs to the bottleneck facilities for access to International Sub-marine cable systems. Internet is seen as critical to success in professional life. There are approx. Set Top Boxes and other important equipment used in ISP network and not manufactured in India. NASSCOM & Telescope Survey) . colleges.THE INDIAN DOT COM SCENERIO Boom or Bust! To do dot com or not to dot com. particularly in small towns and non-metros . Over 76 % of the Internet Users use E-mail Services Over 61% of the Users Access Internet from school.4 GHz (ISM) band for low power. Reductions in Customs Duties on Access Devices.5 million PC base in India. The sky then. Steps Needed to Trigger a Faster Growth of Internet in the country by The Government / Licensor • • • • Encourage cost effective wireless access systems for Internet Access by delicensing of 2. that is the question? India is certainly in the mist of a dot com revolution. place of work and Cyber Cafes while 27% access Internet from homes. study Ecommerce and Internet marketing in India will touch Rs. There are approx 59 million telephone connections (including Mobile) and 8. More than 86% of top Corporate Houses have endorsed that Internet and ECommerce is an integral part of their corporate strategic framework. Among the career conscious and education driven middle class. The availability and pricing of PCs should be at par with TVs. Proliferation of effective computer based education at the School and University level. In fact the NASSCOM. 47 million Cable T V Connections out of 92 million TV Sets in the Country. certainly is the limit for Indian dot coms. (Source : DoT. 15000 crore by 2006-07 of these while Rs 13200 will be accounted for B2B and B2C transactions. and strategizing on how they can use the internet to conduct business.
com. to allow private ISP (internet service provider) to set up their own internet gateways. including SACFA. a number of initiative are underway which will ease the situation subsequently. Encourage setting up of Cyber Café / Internet Dhabas in rural and remote areas by offering Infrastructural facilities at subsidized cost and encouraging provision of soft loans facilities to such entrepreneurs. This step is expected to further push the dot coms cause in India. and satyam online have virtually revolutionized the Internet business in India. The monopoly of the VSNL was finally shattered as the other ISP policy emerged. The policy liberalized the internet service environment. where we are likely to see significant improvements over the next few years. Tax incentives to businessmen / consumers for using Online Services and institute measures to reduce E-transaction cost. the arrival of significant names in the business such as mantra online. Manmohan Singh has announced a range of concessions for improving and strengthening India’s telecom infrastructure. rediff. Simplifications of administrative procedures and regulations particularly for provisioning of RF Links. Yet another area where the govt has been playing Santa Claus is the “bandwidth” segment. So India is going slowly on the boom world but it will take couple of years for picking up as the infrastructure is picking up . For the bandwidth they had decided to go for satellite gateways. Over the past years in particular. while currently India is going through a bandwidth crunch. The Prime Minister Mr. The govt helping hand first became visible when the ISP was announced. Receive Only Satellite system by ISPs should be permitted without the requirement of licensing and clearances from the government agencies. Further boost had been to the ISP market by the decision of the govt. Increase the tele-density particularly in remote / under-developed and rural areas.• • • • • • Policies and plans should be formulated and implemented for e-Governance applications providing citizen services through Internet by suitable standardization and with an objective of increasing efficiency and improving citizen care. except for the mandatory security clearance. dish net.
SUMMARY & CONCLUSION .
their tariff structure. Besides the advantages of marketing on the Internet. Various techniques that can help the marketers to boost their business by harvesting the power of the Internet are explored. It also covers the Indian dot coms scenario . From being a medium for exchange of information and communication between the scientific research workers. the features attracting most of the companies to be on the net and the present usage pattern in India. it has opened a vast vista of entertainment and information (edutainment) for millions of people on the Internet (netizens). In the present work an effort is made to access the potential of Internet Marketing in India in consonance with the various environmental factors. At the same time the study also focus on the various players involved in providing Internet service. in India also this growth is mirrored. the study also includes the growth of Internet in India. which is even now relatively untapped for business purposes (all over the world and more so ever in India). the study also focuses on how Internet can hinder marketers and what are the rules that should be adopted for effective marketing on the net. The Internet in the form of World Wide Web has opened the doors to a new technology in the communication media.EXECUTIVE SUMMARY The Internet is growing at a rate of almost 50-100% per year. their infrastructure etc.
More and more people are willing to use it for varying purposes. Internet service on Cellular (Mobile) phone will also increase its popularity. you need a computer to connect to the Internet. many communication companies have been working on a network of satellites in orbit around the world that will allow you to carry a personal digital assistant (PDA) in your pocket and receive e-mail messages anywhere in the world such as PDA by Nokia Beside these technological changes there is a tremendous shift in the inclination of the public towards Internet. Now. it is difficult to predict where it will go. but there are figures that suggest an audience of over 75 million users.CONCLUSION The Internet has been developing at an exponential pace over the past 4-5 years. Since the technology is so fast. For ultimate portability. At the moment. To start with. It has started taking shape conducive to business requirements. slowly. In similar move. the larger software companies are bringing business features and securities to the Internet so that business can work securely on it and trust it as an efficient business tool. it was unregulated and unruly. Instead the next development is from television manufacturers who are providing new TV sets that can access the Internet and allow the viewer to browse the web or send emails. Network computers were hailed as the new way of accessing the Internet. . These have not taken off as predicted. It’s difficult to estimate the number of users connected to the ‘Net’. several companies are working on ways to include e-mail displays on public phone kiosks that will let anyone connect to their mailbox and read or send messages across the Internet.
For what purposes do you surf net: a) E-mail/chat b) Entertainment c) Getting information d) Downloading e) Buying things f) Any other (specify) 5. Are you planning to make purchase on net in future. Your sincere and honest cooperation is expected. Have you ever used Internet for purchasing? Yes If No 6. 5 an hour how many hours will you surf net in a week. How would you like to make a purchase. No 7. What kind of products would you like to buy on net? Please mention. For how many hours on an average do you surf net in a week. 40 an hour to RS. 1.QUESTIONNAIRE This is a questionnaire as a part of an effort to gauge the E-Marketing in India.? Yes a) _________________ b) _________________ c) _________________ d) _________________ e) _________________ 8. ______ 4. No . With the falling Internet prices from RS. _______ 3. please give the ranking from 1(most favorable) to 5(least favorable) a) Directly from the shop b) Through mail-order c) Through net d) Through phone e) Any other (specify)______________ 2. How often do you click on advertisement on sites? a) 0 to 10% of the time.
Wide range of choices iv. Please mention what factors motivate you or stop you from making purchase on net. Security ii. Do you feel ads on net give more insights of product/service than other media? Yes No 10.b) 10 to 25% of the time. Secrecy iii. 9. Any other (specify) _________________________ b) Stop you: i. Do you receive mail from business sites? Yes No 11. Saving of time v. Convenience ii. Late delivery iii. . Any other (specify) _________________________ Name: __________________________________ Age: ___________________________________ Sex: ___________________________________ Qualification: ___________________________ Occupation: _____________________________ Address: _______________________________ Email: ________________________________ Thanks for sparing your valuable time for filling of our questionnaire. e) 75 to 100% of the time. Wrong delivery iv. c) 25 to 50% of the time. ______ 12. d) 50 to 75% of the time. a) Motivate you: i. How often do you respond to it? Please mention the percentage. Lack of actually feeling the product v.
set up for public access to some Internet computers. CERRFnet and JVNCnet. do not require prior registration. BACKBONE: A central network connecting other networks together. ADDRESS: Network addresses are usually of two types: (i) The physical or Hardware address of a network interface card for ETHERNET. network users do not have to be concerned about hardware addresses since they are automatically handled by the networking software. (2) The logical or INTERNET address is used to facilitate moving data between physical networks. Some guest or anonymous accounts. The NSF funds a backbone network for regional networks such as NEARnet. It served as the basis for early networking research as well as a central backbone during the development of the Internet. The ARPANET consists of individual PACKET switching computers interconnected by leased lines. when you have registered with its administrators to use the system. or with an on-fine information system. ADDRESSING: A scheme determined by network protocols for identifying the sending device and destination device for any given items of information travelling on a network. and other services such as games and . as an anonymous or guest user. but limit access to a few file directories and allowed commands. When you get an account you are issued a user name (user-id) and a password that you see to log into the system. the government agency that funded ARPANET and later the DARPA Internet. Each host computer on the INTERNET has a unique address.INTERNET GLOSSARY ACCESS METHOD: The rules that manage how all the computers and other devices on a network can send information through the same physical medium in an orderly fashion. ACCOUNT: You are said to have an account on a host computer. and registration may involve a fee. exchange of software and files. BBS (Bulletin Board System): A computer system that others can communicate with for massaging. There are usually restrictions on who can register. ACCESS PROVIDER: A company providing a computer system that connects your computer to the Internet. ANONYMOUS FTP (File Transfer Protocol): The procedure of connecting to a remote computer. ARPANET : A pioneering long haul network funded by ARPA. fortunately. Today. BANDWIDTH: The capacity of the transmission medium stated in bits per second or as a frequency. in order to transfer public files back to your local computer. they are alternative commercial backbone to the NSF backbone. The hardware address is used to forward PACKETS within a physical network. ARCHIE: A network service used for locating files that are publicly accessible by anonymous FTP. ARPA (Advanced Research Projects Agency): Former name of DARP.
accessible throughout a network. usually with a modem. .distribution of data. The browser gives some means of viewing the contents of nodes. and of navigating from one node to another. what kind of data it contains. Unlike dedicated connections. but by accessing a hierarchy of name servers. from the most specific to the most general (left to right). dial-up connections are established only for duration of the session. BBS's are also used by government and educational institutions. Long the realm of hobbyists. which tells where it came from. edu. DOMAIN: The Internet naming scheme which consists of a hierarchical sequence of names. using communications software and a modem. DATAGRAM: Using the TCP/IP suite of protocols. that translates human readable names into numeric IP addresses. Technically each part of a name is a domain. which requests services of another program. a datagrarm is a self contained packet of information consisting of the data and a header. Listsevre provides one mechanism for organisation of discussion groups as mailing lists. Many bulletin boards are set up according to general topics and are. CYBERSPACE: The sensation of place without location or space experienced while using global computer networks. The term was popularized by Wffiiam Gibson in his novel Neuromancer. DIRECTORY SERVICE: A service which provides network addresses or user-id's of individuals. DIAL-UP: Temporary connection between computers by a telephone link. DOWNLOAD OR DOWN LOADING: The transfer of flies to your local computer from another. ELECTRONIC BULLETIN BOARD: A shared file where users can enter information for other users to read or download. CLIENT: A program. FILE SERVER: A computer that stores files and proN4des network access to those files.gov. DNS (Domain Name System): A protocol and a distributed system of databases and server programs (name serves). Normally the COM: The highest level Internet domain name used to identify commercial services. where it is going. and its relation to any other datagram being sent. hosts and services. DISCUSSION GROUIP: An ongoing exchange of messages about a topic. often large computer.ddr. Most often used to refer to the highest level domain such as. for example.com. browser is a client of a data sewer.net. No single DNS name server contains information for all Internet hosts. E-MAIL (Electronic Mail): A network service that enables users to send and receive messages via computer. Usenet news groups are another example. separated by dots. a local DNS program can resolve a name and route -communication to an intended computer. nic. BROWSER: A program that allows a person to read hypertext.mil. Many are now indirectly connected to the Internet for mail services or directly connected for telnet and ftp. using a different format and protocol.
In contrast to a network server. such as. GOPIHER: Gopher is a protocol and programs for a menu driven document derive system that connects you to resources and sites an over the world. such as file transfer and remote login can be considered part of an even larger network. 'tags' are embedded in the text so that a certain place within an document can be specified. Today. capable of the exchange of messages and offering seamless connectivity or service. which provides services to a user through an intermediary host computer. "library" is the host name within the "nwu. FTP (FileTransfer Protocol): The Internet standard high level protocol for transferring files from one computer to another. and other menus. The IP defines a general set of rues for formatting and routing packets across the various networks on the Internet. its technical standards are. remote login and file transfer. but now widely used across the Internet and elsewhere.edu". Built on top of SGML. (Other computer networks. GIF provides highly compressed information in comparison to other bitmap graphics format.nwu.. HTML (Hypertext Mark-up Language): Hypertext document format used by the World Wide Web. HTML supports some national characters through special escape sequences. sometimes referred to as the Matrix. a computer that directly provides service to a user. the Internet protocol remains the protocol of choice. You can easily track down items of interest where they may be in the world. INTERNET: The largest world-wide system of interconnected computer networks. defined by an international co-operative committee known as the Internet Activities Bureau and the IAB's Internet Engineering Task Force. IP (Internet Protocol): Though the Internet is considered a "multi protocol" network. The World Wide Web uses an HTTP like system for creating its links. telnet sites. . HTTP (Hypertext Text Transfer Protocol): A public domain application layer protocol which uses TCP to transfer text over the Internet and is used for the design of information systems using Hypertext links.edu" domain. such as look up the definition of a word. HOST NAME: The portion of the fully qualified domain name that refers to a specific host computer. HYPERTEXT: Text that is not constrained to be linear. Gopher mend options can point to other gophers. in "fibrary. (Hyperlinks) connections are usually made via the telnet command with a specific Internet port (socket) being identified. utilities. They can also launch a search to do things. For example. text files. HOST COMPUTER: In the context of networks. the Internet is mainly composed of local and wide area networked that use the TCP/IP suite of protocols for computer-to-computer communication. GIF (Graphical Interchange Format): A computer bitmap graphics format originally developed by CompuServe. The beauty of gopher is that it formats all information in the same menu structure. The EP is a packet switching protocol that provides a common layer over dissimilar connections network. or find where a word occurs in a document.FILE TRANSFER: Copying of a file from one computer to another over a computer network or phone connection. which can exchange messages with computers on the Internet but which cannot connect for services.
TCP/IP bundles and unbundles. . manages packet transmission and checks for errors across networks. clients. and then through the telecommunications line to the service provider's computer. as bold italic. Mailing lists are used by a mail exploder to forward one message to all people on the list.that is. A server is the combination of hardware and software that provides access to information that is requested by client computers. tables. SERVER: A computer. In many cases. and so on. you can subscribe to or leave a mailing fist by sending a message to the lists "request" address. SMTP (Simple Mail Transfer Protocol): system that allows servers to exchange electronic mail messages in transit from the sender to the recipient. The moderator maintains the list and decides which messages to explode. MOSAIC: A popular web client developed by the National Centre for Supercomputing Applications (NCSA) at the University of Illinois at Champaign-Urbana for using Internet information available through the World Wide Web. Data traffic routes from individual computers to the route. sent and received data into packets. TCP/IP (Transmission Control Protocol / Internet Protocol): A set of communications protocols developed by the US Department of Defence (DOD). These codes define the components of Documents such as headers. including ANSI for the United States. moderated. In practice. For example. The ISO members are the national standards organisations of the 89 member countries. PROTOCOLS: A specification that describes the rules and procedures by which computers can communicate. also called a host that can distribute services or resources to users at remote computers . ROUTER: A hardware device connected to a host on a LAN that acts as a gateway between different types of networks. SGML (Standard Generalized Mark-up Language): A set of formatting codes for creating documents. and underlines text. MAILING LIST: A List of email addresses for a group of people all interested in a particular topic.ISDN (Integrated Services Digital Network): An emerging digital telephone technology. SERVICE PROVIDER: An organisation that provides connections to the Net. RTF (RICH TEXT FORMAT): A text file format that includes such formatting. a router connects an Ethernet-based network to die TCP/lP based net. ISO (International Organisation for Standardization): The organisation responsible for creating the ISO/OSI protocol that may eventually replace the current Internet protocols. originally for use in military applications. TELNET : System that lets you connect to any computer on the Internet (that allows Telnet) and type in commands as if you were sitting in front of the computer. HTML is a subset of SGML. Lists may be. MODEM: Short for modulator/demodulator a peripheral device that links your computer to other computers and information services using the telephone lines. ISDN combine voice and digital services in a single fine ISDN standards are specified by CCITT. Most Net tools are named after the protocols they use.
A Web page is created using HTML codes. URL ( Uniform Resource Locator) : The full address that defines where a Web page is stored on a server connected to the Internet. USENET : The most popular collection of newsgroups. WEB BROWSER : Software that lets you view Web pages stored on the Internet or on your computer. WWW (World Wide Web): The collection of the millions of Web sites and Web pages that together form the Web of information that allows a user to see a graphical view of the Internet and the information it contains. WEB SITE : Collection of Web pages from one person or company that link together with hypertext links to form a home that user can visit on the Internet. WEB PAGE : Single file stored on a Web server that contains formatted text. graphics and hyper-text links to other pages on the Internet. .Telnet is normally used when you are setting up your web site to create directories. set up security and move files.
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