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Study on use of Mobile Phones as a platform to market various products and services”

Study on use of Mobile Phones as a platform to market various products and services”

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A Research Report

Subject Code: 536221(36)

On

“Study on use of Mobile Phones as a platform to market various products and services”
Submitted for partial fulfillment of requirement for the award of degree
Of Master of Business Administration Of CHHATTISGARH SWAMI VIVEKANAND TECHNICAL UNIVERSTY BHILAI (C.G.)

Session 2010-12
Supervision By Prof.Talat Yasmeen Faculty Of Management Management

Submitted by
Ravneet kaur Sahni Roll No:1001584 MBA II Semester Section – C

2011
DEPARTMENT OF MANAGEMENT
DISHA INSTITUTE OF MANAGEMENT AND TECHNOLOGY
(Disha Education Society) Satya Vihar, Vidhansabha-Chandrakhuri Marg, Mandir Hasaud, Raipur (C.G.)492007

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DECLARATION
I the undersigned solemnly declare that the report of the project work entitled “Study on use of Mobile Phones as a platform to market various
products and services”is based my own work carried out during the course

of my study under the supervision of Prof. Talat Yasmeen I assert that the statements made and conclusions drawn are an outcome of the project work. I further declare that to the best of my knowledge and belief that the project report does not contain any part of any work which has been submitted for the award of any other degree in this University or any other University.

Ravneet kaur sahni Roll No : 1001584

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Appendix-III CERTIFICATE BY GUIDE This to certify that the report of the project submitted is the outcome of the project work entitled “Study on use of Mobile Phones as a platform to market
various products and services”carried out by Ravneet kaur Sahni bearing Roll

No1001584 & Enrollment No AG8437 carried by under my guidance and supervision for the award of Degree in Master of Business Administration of Chhattisgarh Swami Vivekanand Technical University, Bhilai (C.G), India. To the best of the my knowledge the report i) ii) iii) iv) Embodies the work of the candidate him/herself, Has duly been completed, Fulfils the requirement of the ordinance relating to the MBA degree of the University and Is up to the desired standard for the purpose of which is submitted.

_______________________ (Signature of the Guide) Name: Prof. Talat Yasmeen Designation: Faculty Of management
DISHA INSTITUTE OF MANAGEMENT AND TECHNOLOGY

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(Disha Education Society) Satya Vihar, Vidhansabha-Chandrakhuri Marg, Mandir Hasaud, Raipur (C.G.)492007

The research report as mentioned above is hereby being recommended and forwarded for examination and evaluation. CERTIFICATE BY THE EXAMINERS This is to certify that the project entitled
“Study on use of Mobile Phones as a platform to market various products and services”

Submitted by Ravneet Kaur Sahni Roll No:1001584 enrollment No AG8437 Has been examined by the undersigned as apart of the examination for the award of Master of Business Administration degree of Chhattisgarh Swami Vivekanand Technical University, Bhilai (C.G.).

________________ ________________ Name & Signature of Internal Examiner Date:

_________________ _________________ Name & Signature of External Examiner Date:

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13 4.……28 6.. MOBILE MARKETING…………………………………………….. DATA ANALYSIS & INTERPRETATION……………………………..17 a.61 9. INTRODUCTION TO THE TOPIC………………………………………. CONCLUSION & LEARNINGS…………………………………………69 BIBLIOGRAPHY ANNEXURE: Questionnaire 5 .TABLE OF CONTENTS DECLARATION ACKNOWLEDGEMENT CERTIFICATE (FACULTY GUIDE) CHAPTERS: 1. OBJECTIVE OF THE STUDY…………………………………………. b.7 3. DESIGN OF THE STUDY ………………………………………………. FINDINGS………………………………………………………………….33 7. HYPOTHESIS TESTING…………………………………………………62 10. EXECUTIVE SUMMARY………………………………………………….. INDUSTRY PROFILE…………………………………………………….37 8.6 2. Global telecom market overview Indian telecom industry 5.... SUGGESTIONS……………………………………………………………65 11..

EXECUTIVE SUMMARY Innovation creates marketing opportunities and challenges. technological developments and available content. The study also aims to propose some features enhancing the acceptability of mobile advertising and suggests an appropriate strategic initiative for the same. tastes and preferences. In order to promote the selling of products or services. The current study attempts to study consumer acceptance of mobile phone marketing/advertising and consumer responsiveness to mobile phone marketing. and messages on a one-to-one basis. all need to be reassessed if the industry is to be a success. an area of mobile commerce. in terms of its impact on purchase decision making. Mobile advertising. This trust can be created using permission based or incentives based advertising. with the consumer’s behaviour towards mobile advertising an issue that can be overcome by establishing trust. The conclusion recognizes that customer/target audience attitudes. advertising companies can provide the target customers exactly the advertisement information they desire. Mobile marketing is relatively at a nascent stage in India. 6 . is a form of advertising that targets users of handheld wireless devices such as mobile phones and PDAs. services. Combining with the customer’s profile and context situation.1. The major findings reveal that the perception of consumers towards mobile marketing can be broadly categorized into three factors: 1) Lack of contextualization and personalization of mobile ads 2) Disorderly nature of mobile ads 3) Perceived utility of mobile ads. all the activities required to communicate with the customers are transferred through mobile devices. Customers are looking for customization of mobile marketing messages as per their individual requirements. Hence the need of the hour appears to be customizing a company’s products.

INTRODUCTION TO THE TOPIC MOBILE MARKETING “In a couple of years. search. most of the messages you send and most of the music you listen to. most of the information you share. Offering new marketing channels to interact with customers is crucial to increase sales for company. it shapes not only commerce but also the way in which companies implement their marketing strategies. the mobile phone is rapidly becoming a viable commercial marketing channel. Through the introduction of data services. Short Message Services (SMS). the mobile phone is the key to marketers because it is extremely popular and offers people the opportunity of mobility now. 7 . mobile phone users are able to access their e-mails. order and buy products and services from everywhere without computers. the successful application of information technology to connect marketing applications is highly prominent.2. Multimedia Message Service (MMS). Due to wireless communication system. etc. Mobile Internet. most of the advertising you read. CEO. Publicis Information technology affects everything from daily life to business in the 21st century. One of the advances in information technology is wireless mobile communication technology that makes the “anytime-to-anyplace” communication possible.. In business environment. Besides the Internet and personal computers. Thus. will transit through your cell phone”2 Maurice Levy.

A crucial question is thus whether there are obstacles for the marketer to use mobile media to its potential.Even though companies are investing heavily in mobile commerce and mobile marketing. Technology developments have created new marketing communication channels or media such as email. but marketers would have little ability to consistently generate profits without a clear understanding of the elements driving consumer acceptance. SMS (Short Messaging Service) and MMS (Multimedia Messaging Service). the nature and implications of this channel have yet to be fully understood and studies need to be performed to gain an insight into how to utilize it best. companies using SMS expressed fear for invasion of consumer privacy (80%) and negative consumer reaction (60%) as disadvantages of the media. Are customers more reluctant to receive marketing information through mobile media than through traditional media or is it the other way around? 8 . In a Forrester report. Nowadays. These digital media are considered to potentially improve the possibilities to reach consumers by allowing personalisation of the content and context of the message (Forrester Report 2001). Simultaneously there is a potential downside to the development of new digital channels. mobile marketing adoption and acceptance is on the rise.

Yet the technology associated with these devices. which include: memory. compared with a 3% response rate through direct mail and 1% with internet banner ads. operate in an environment that imposes constrains such as: wireless network environments are unreliable and bandwidth is low. processing power. More importantly. many-to-many and mass communication. and size of display. for example. mobile services must work within the daunting constraints of the devices themselves. Studies on this new advertising medium indicate that mobile advertising campaigns can generate responses that are as high as 40%. The high diffusion of SMS facilitates analyzing usage behaviour and hints at the commercial potential of future communication services. will build on the success of SMS but allow for richer content based on similar asynchronous. In order to promote the selling of products or services. referred to as text messaging or Short Message Service (SMS). digital and interactive communication. not just “spam” them with advertisements they are not interested in. input capabilities. Multimedia Messaging Services (MMS). for example. Studying interactive mobile 9 . Mobile media. which is an area of mobile commerce. which let marketers personally communicate with consumers. In Comparison with traditional advertising. The devices on which these value-added services are pushed onto or downloaded to. It is therefore important that mobile advertisements take into account the user’s context. Phones and personal digital assistants increase the availability. the main advantage of mobile advertising is that it can reach the target customers anywhere anytime. frequency and speed of communication. transcend traditional communication and support one-to one. Combining with the customer’s user profile and context situation.Mobile advertising. advertising companies can provide the target customers exactly the advertisement information they desire. all the activities required to communicate with the customers are transferred through mobile devices. and the very mobility of devices increases the risk that a connection will be lost or degraded. continues to evolve. optimize resource usage. and minimize input effort imposed on the user. is a form of advertising that targets users of handheld wireless devices such as mobile phones and Personal Digital Assistants (PDAs). The most popular mobile application.

which makes it harder than ever to conduct interruption-based communication. An open question is. what reaching means when considering the empowered and active consumer. consumer behaviour. In traditional research concerning advertising and media effects the consumer’s perspective has been largely overlooked. Mobile Marketing and Mobile Commerce 10 . aspirations and purchasing patterns that are different compared to what companies have been used to. Attention and time has increasingly become scarce resources for the consumers in the information age. which changes consumers’ behaviour. CONCEPTUAL FRAMEWORK Mobile Phone. It has been argued that the information age empowers consumers and creates immediate 24hour access. Any channel can and should be evaluated according to consumer responsiveness in order to understand communication effects and effectiveness. however. Responsiveness depicts the consumer’s willingness to receive and respond to marketing communication and can be viewed as a function of the content and the context of the message. The increased number of media has led to a harder competition for consumers’ attention. Consumer responsiveness is potentially more effective than permission because it assumes consumer attention rather than merely permission. psychology and adoption to investigate their organizational and personal use. Many consumers have attitudes. involved and informed. individualistic. Today's consumers are claimed to be independent. In permission marketing context it has been argued that if the consumers have agreed to pay attention it would be easier to reach them about offerings.services such as SMS and MMS suggests drawing upon theories in marketing. Traditional marketing communication planning has focused on the marketer’s objectives of reaching relevant consumers. When looking at marketing communication from a consumer perspective the issue of media effectiveness is challenging. A key issue is the responsiveness of the consumer to marketing communication.

push advertising sends relevant but not explicitly requested text and video messages. Mobile phone made a revolutionary contribution to fulfilling the anywhere and anytime connectivity marketers’ wishes. mobile sales promotion. mobile entertainment and mobile shopping stand out as the critical elements in mobile marketing and mobile commerce. After obtaining the consumer’s permission. Mobile Marketing Tools Mobile advertising.One of the marketers’ demands is to be able to communicate with potential customers and to contact them anywhere and anytime. Therefore. mobile marketing refers to marketing activities and programs performed via mobile phone in mobile commerce. The growth and use of mobile commerce as an emerging technology has the potential to dramatically change the way consumers make business. the penetration of this new technology has evoked changes in advertising. (i) Mobile Advertising: A key component of mobile marketing communication is advertising. It has a strong impact on industries like e-commerce in general and transformed mobile commerce into a major driving force for the next wave of e-commerce. and companies wishing to make business in mobile markets should be ready for mobile marketing and mobile commerce. SMS and MMS 11 . either in a push or pull mode. Quah and Lim (2002) argue that the push model will dominate mobile advertising since it saves consumers‟ time and money compared to browsing content.and location-sensitive. Mobile marketing is defined as using a wireless medium to provide consumers with time. The rapid growth of mobile phone has also come up with a new term: mobile commerce. services and ideas. personalized information that promotes products. In the literature. thereby benefiting all stakeholders. all mobile commerce definitions are very similar. Shortly. Mobile commerce driven by wireless communication technology is also generating interest from marketers. retailing and shopping in marketing.

(ii) Mobile Sales Promotion: Sales promotion is one of the promotional mix including coupons. Mobile coupons boast at least three advantages: (1) targeting based on mobile phone numbers. and (3) efficient handling by scanning the coupon’s bar code at the point of sale. rebates. there are lots of entertainment services like listening music. Mobile coupons in sales promotion play a vital role. gambling. Thousands of Japanese retailers. and to carry out direct marketing and promotional activities. logos and animation. restaurants. This mode of advertising takes advantage of valuable channels of wireless communication to enhance customer relationships. (2) time sensitivity. manufacturers. thus creating a form of dynamic pricing. many restaurants use these mobile-based coupons to offer temporary discounts on slow nights. watching 12 . SMS and MMS advertising are expected to achieve higher response rates than that of e-mail or television because all advertisements can be sent personally. discounts. Moreover. playing games. Marketers can benefit from the use of photos. Many brands and media companies include text message numbers in their advertisements to enable interested consumers to obtain more information. and marketers can predict a higher usage of mobile compared to their paper-based equivalents. free samples. conduct surveys. gifts and incentive items in order to observe an immediate effect on sales. For example. music. (iii) Mobile Entertainment: The mobile phone has become an important media and entertainment platform. MMS has provided more visual and active messages.messages are main mobile advertising systems. and other companies employ the mobile Internet to send discount coupons. videos by advertising to consumers' mobile phones. In the mobile entertainment industry. and offer free samples to registered users via mobile mail. SMS has become a technological buzzword in transmitting B2C messages to such wireless devices as mobile phones.

At first.television. which have set a stage for an explosion of mobile entertainment industry.. Used properly. video and sport matches etc. The sudden growth of mobile shopping has placed mobile retailers at consumers‟ fingertips. and economical shopping tool. practical. mobile phone users can go online to buy just about Consumers’ Attitudes towards Mobile Marketing and Mobile Commerce in Consumer Markets anything their need or want. mobile shopping is a new easy. and allowed mobile phone users to purchase nearly anything they desire without ever leaving their houses and offices. (iv) Mobile Shopping: Mobile phone is an exciting tool to expand customers‟ shopping options after the Internet. mobile phone can seem like a scary place to shop.OBJECTIVES OF THE STUDY: Primary objective 13 . 3. however.

• • To identify how mobile phone has emerged as a tool for marketing various products and services To analyze the perspective of people towards mobile phone marketing. • To identify various advances in marketing techniques/tools in the Indian Market • 14 . Secondary objective • Different types of Mobile marketing techniques To study the conversion rate (attractive enough to enable buying/availing the marketed product or service) in how successful this technique of marketing is.

872 million. registering a growth of 3. Major Investments The booming domestic telecom market has been attracting huge amounts of investment which is likely to accelerate with the entry of new players and launch of new services. According to the Telecom Regulatory Authority of India (TRAI). According to the Department of Industrial Policy and Promotion (DIPP).02 million in February 2010.3 million. mobile services and basic telephone services attracted foreign direct investment (FDI) worth US$ 2.495 million during April to February 2010. the number of telecom subscribers in the country reached 621. prior to 2008 a majority of VAS revenue was attributed to SMS. menu-based services. mobile TV.38 per cent from 600. • Norway-based telecom operator Telenor has bought a further 7 per cent in Unitech Wireless for a little over US$ 431.32 million at the end of March 2010 from 564.28 million as on March 31.6 per cent. downloading of music or ring tones. With this the overall tele density (telephones per 100 people) has touched 52. value-added services other than SMS are gaining importance. The cumulative flow of FDI in the sector during April 2000 and February 2010 is US$ 8. feature-rich handsets and consumer education.25 per cent hold of the company. 2010. The wireless subscriber base has increased to 584. It is expected that over the next few years non-SMS services will become a dominant contributor to VAS revenue.4.INDUSTRY PROFILE The Indian telecommunications industry is one of the fastest growing in the world. videos and sophisticated m-commerce applications. Telenor now has 67. availability of relatively inexpensive. According to the Economic Survey 2009-10. the telecommunications sector which includes radio paging.98 million in February 2010. Telenor has now completed its four-stage stake buy 15 . But with greater penetration of new services. Value-Added Services (VAS) Market Mobile value added services include text or SMS. an increase of 3.74.

. driving the Indian player into the league of top ten telecom players globally. All the 71 blocks that were put up for auction across the 22 service areas in the country were sold. 2010 after 183 rounds of intense bidding over a span of 34 days." The notification further added. Allocation of spectrum for third-generation (3G). to allow Indian companies to participate in a consortium with other international operators to construct and maintain submarine cable systems on co-ownership basis under the automatic route. "Accordingly." 3G Services The Department of Telecom has taken the pioneering decision of launching of 3G services by BSNL and MTNL and initiation of process for auction of spectrum for 3G services to private operators. The Government is expected to 16 . and broadband wireless access (BWA) services was done through a controlled simultaneous.1 million Going Global In March 2010. ascending e-auction process. In April 2010.32 billion in Unitech Wireless as agreed on with the latter last year • The government has approved the foreign direct investment (FDI) proposal of the Federal Agency for State Property Management of the Russian Federation to buy 20 per cent stake in telecom service provider Sistema-Shyam for US$ 660. RBI issued a notification stating "As a measure of further liberalization. The Reserve Bank has liberalized the investment norms for Indian telecom companies by allowing them to invest in international submarine cable consortia through the automatic route.and has invested a total of US$ 1. Bharti Airtel bought the African operations of Kuwait-based Zain Telecom for US$ 10.7 billion. Auction for 3G spectrum ended on May 19. banks may allow remittances by Indian companies for overseas direct investment. leaving no unsold lots. it has now been decided..

India will be the fastest growing telecom equipment production market in the Apac region over the next five years..7 billion in 200809.6 billion. the production of telecom equipment in value terms has increased from US$ 9 billion in 2007-08 to US$ 10. Rural Telephony 17 . "We expect India to move up to the third spot (after China and South Korea) with a share of 8. the company sourced components worth US$ 20 billion from India. according to the Department of Telecommunications. The firm estimates India’s telecom equipment production revenue to grow at a CAGR of 17.42 billion and US$ 2.2 billion respectively. it predicts." Gartner said. accounting for 21 per cent of the equipment produced in the country Telecommunication equipment Major Nokia Siemens is planning to source components worth US$ 28. According to the Economic Survey 2009-10. India ranks fourth in manufacturing telecom equipment in the Asia-Pacific (Apac) region.6 billion. According to a report by technology researcher Gartner Inc.morph revenue worth US$ 14. Idea in 11 and Vodafone and the Tatas in nine circles each. All the available slots across 22 circles have been sold to seven different operators.9 billion. In 2009. MTNL and BSNL will have to pay US$ 1. The country has a 5. Manufacturing The Indian telecom industry manufactures a vast range of telecom equipment using state-of-the-art technology.5 billion from India in 2010-11.1 per cent to reach US$ 22.53 billion in 2008-09 and is expected to be US$ 12.4 billion in 2009-10.5 per cent of the total (estimated) Apac telecom equipment production revenue of US$ 277 billion by 2014.7 per cent share of the region’s total telecom equipment production revenue of US$ 180 billion in 2009.74 million in 2002-03 to US$ 23. The Anil Ambani-led Reliance Communication bagged the highest number of 13 circles at a cost of US$ 1.6 billion in fiscal 2014. A pan-India bid for third generation spectrum stood at US$ 3. Exports have increased from US$ 86. followed by Bharti Airtel in 12.

2009. Rural telephone connections have gone up from 12. It is proposed to achieve rural tele-density of 25 per cent by means of 200 million rural connections by the end of the Eleventh Five Year Plan.436 infrastructure sites spread over 500 districts in 27 states. • To provide infrastructure support for mobile services a scheme has been launched to provide support for setting up and managing 7. During 2008-09.6 million in December 2009. As on December 31.5 per cent as against 36. the growth rate of rural telephones was 61.1 per cent in March 2009 and further to 21. 122 new Unified Access Service (UAS) licenses were granted to 17 companies in 22 services areas of the country. 2009. 100 per cent FDI is permitted. rural tele-density has increased from 1.3 million in March 2004 to 123. • • In the area of telecom equipment manufacturing and provision of IT-enabled services.2 per cent in March 2002 to 15. No cap on the number of access providers in any service area.5 per cent of the rural phones as on December 31. 18 . 2009.According to the Economic Survey 2009-10. The share of private sector players in the total telephone connections has steadily increased from around 14 per cent in 2005 to 31 per cent as on December 31.7 per cent for urban telephones. about 6. The private sector has contributed significantly to the growth of rural telephony by providing 81.5 million in March 2009 and further to 174.956 towers had been set up under the scheme. In 2008.2 per cent at the end of December 2009. • Revised subscriber based criteria for allocation of Global System of Mobile Communication (GSM) and Code Division Multiple Access (CDMA) spectra were issued in January 2008. Policy Initiatives The government has taken many proactive initiatives to facilitate the rapid growth of the Indian telecom industry.

V-Sat. Unified Access Services. Global Depository Receipts (GDRs) and convertible preference shares held by foreign entity. the FDI limit in telecom services is 74 per cent subject to the following conditions: • This is applicable in case of Basic. Cellular. Foreign Investment shall include investment by Foreign Institutional Investors (FIIs). the 'Indian' shareholding will not be less than 26 per cent • FDI up to 49 per cent is on the automatic route and beyond that on the government route. FIPB shall take note that investment is not coming from countries of concern and/or unfriendly entities.5 per cent from 2009-2013 to exceed US$ 30 billion. Foreign Currency Convertible Bonds (FCCBs).According to the Consolidated Foreign Direct Investment (FDI) Policy document. American Depository Receipts (ADRs). • • The investment approval by FIPB shall envisage the conditionality that the Company would adhere to license Agreement FDI shall be subject to laws of India and not the laws of the foreign country/countries The Road Ahead According to a report published by Gartner Inc in June 2009. Global Mobile Personal Communications Services (GMPCS) and other value added Services. FDI in the licensee company/Indian promoters/investment companies including their holding companies shall require approval of the Foreign Investment Promotion Board (FIPB) if it has a bearing on the overall ceiling of 74 per cent. • Both direct and indirect foreign investment in the licensee company shall be counted for the purpose of FDI ceiling. Public Mobile Radio Trunked Services (PMRTS). While approving the investment proposals. the total mobile services revenue in India is projected to grow at a compound annual growth rate (CAGR) of 12. National/ International Long Distance. In any case. The India mobile subscriber base is 19 . Non-resident Indians (NRIs).

today’s youth use it to express their thoughts. Nokia is at the top with 54% of installed base market followed by LG (14%). but it will continue to grow at double-digit rates for next three years as operators focus on rural parts of the country. according to Gartner.7 per cent in 2009 to 63.5 per cent in 2013. surf on the internet. "Growth will also be triggered by increased adoption of value-added services. We are in an era where users buy mobile phones not just to be in touch. Today mobile phones have moved beyond their primary role of voice communications and have graduated to become an essential entertaining device for mobile users. read news. accounting for 63% of the installed base (phone’s currently in use) while LG rules CDMA with 48% of installed base market share." Mobile market penetration is projected to increase from 38. chat instantly with friends & families and even check their bank balances.3 per cent in the same period from 452 million in 2009.India Urban Mobile Phone Users (N=5. "The Indian mobile industry has now moved out of its hyper growth mode. for social networking. However. This growth is poised to continue through the forecast period. listen to music.set to exceed 771 million connections by 2013. Nokia is the dominant player on the GSM space. LG is second most used handset manufacturer India primarily due to its dominant position in the CDMA. There are various phone manufacturers providing handsets. Phone manufacturer usage April 2009 ending quarterly Average . and India is expected to remain the world’s second largest wireless market after China in terms of mobile connections. growing at a CAGR of 14. On looking at urban India GSM/CDMA combined installed base." said Madhusudan Gupta. to show their interests. play games. which are relevant to both rural and urban markets.775) 20 . senior research analyst at Gartner.

8% 62.4% 7.7% 9. with 2 out of 3 users for each of the two manufacturers mentioning they are likely to recommend their handset to their friends.Brands Installed base* GSM CDMA 47.2% 53.0% 68.8% LG Motorola Nokia Samsung Sony-Ericsson 4.3% * – Users currently using the phone model 21 . Phone manufacturer usage3 April 2009 ending quarterly Average – India Urban Mobile Phone Users (N=5.5% 6.6% 55.3% 11.9% * – Users currently using the phone model On looking at the ability of manufacturers to gain market share via word of mouth.4% 24.0% 8. Nokia and Sony-Ericsson fare a lot better compared to the other three big manufacturers.2% Total (GSM + CDMA) 14.4% 7.6% 41.6% 5.775) Model Installed base* Likely to Recommend** LG Motorola Nokia Samsung Sony-Ericsson 57.6% 9.7% 65.

1140 crore.Rs 428 crore.Rs 86 crore. Games & Data.**Likely to recommend current phone manufacturer to others Indian mobile telephony market has seen explosive growth in subscriber base but low tariffs keep building margin pressure on operators7 The Mobile VAS industry in India is estimated at Rs. 171 crore. 4560 crores at the end of 2007. P2P & A2P.Rs. This space is currently completely dominated by entertainment services and comprises of.Rs. 2850 crore at the end of 2006 and is estimated to grow at 60% to touch Rs. Others (MMS etc) . 1026 crore. Ringtones (including CRBT) . P2P SMS -Rs. 22 .

2850 Crore and is estimated at Rs. India is rapidly moving towards being an evolved mobility market with no distinction between market incumbents and challengers. 23 . The adoption of mobile telephony remains unparallel in scope. The success of the market can be gauged from the fact that mobile user base has surpassed the PC user base in India and very soon the Indian market will have more mobile users than TV viewers. 684 Crore in India. as users from diverse segments increasingly choose to exercise the option of personal mobility. The user base has been adding 3-4 million subscribers per month (on an average) and recently the mobile subscriber base crossed the 100 million mark in April 2006.Thus the Mobile VAS industry in India (excluding Telco share) is currently 24% of Rs. especially in the wireless telephony segment. India is going through a telecom revolution.

it has led to a further downward pressure on operator costs. Subscriber Base: Post Paid Vs Prepaid 24 . This has led to further cost benefits to the end user. This has had an effect of stimulating demand and thus increasing the category adoption rate.The growing intensity of competition has led to more services for the end user at lower prices. fuelling further growth in the subscriber base. As more users have been added to the subscriber base.

to mobile TV. Mobile Industry bodies are actively however slowly are working to standardize the process. Guiding Principles for Mobile Marketing i. Over the past few years the proposition of mobile marketing & advertising went from a puzzling idea to the big buzz. Recipient must have given their permission 25 . Enabling technologies ranging from LBS.7 5. NFC and 2D barcodes. Brands are pressuring their agencies to leverage the channel. mobile gaming and social networks are enriching the opportunity.MOBILE MARKETING Definition: Mobile Marketing is a set of practices that enables organizations to communicate and engage with their audience in an interactive and relevant manner through any mobile device or network.

ii. The message must clearly identify the sender method of iv. Express permission is required to use location based service Mobile Marketing Types: 26 . Full terms and conditions must be identified when marketing premium services v. Subscribers must be provided with the functional unsubscribing iii.

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at home.WHY ‘MOBILE’ WHY MARKET TO CONSUMERS VIA MOBILE PHONES Consumers use mobile phones as their “first screen” not their “third screen”: ✔ 500M+ mobile phones in China ✔ 340M+ mobile phones in Western Europe ✔ 230M+ mobile phones in the US ✔ 170M+ mobile phones in India Consumers have a 1:1 relationship with their mobile phone: ✔ Almost never a shared device unlike television or the PC ✔ Kept close at work. on-the-go 29 .

or Music Downloads ○ Voting / Polling ○ Fundraising ○ Emergency Alerts ○ Holiday Wishes ○ Contests/Sweepstakes ○ Warnings ○ Corporate Messages ○ Schedule Reminders ○ Fundraising Activities ○ Customer Service ○ Booth Finder ○ News Alerts ○ Delivery & Pick up ○ Store Openings ○ New Product ☑ ☑ ☑ ☑ Mobile Effectiveness 30 . colour. ring tones. sports scores. features. are highly customized Consumers are increasingly using their phones for more than just calls: ✔ Content (games. Picture.✔ Personalized – brand. maps) is driving consumer data usage ✔ Improved screen quality (colour and size) is making rich media desirable ✔ Enhanced networks are making mobile data useful and usable Mobile Marketing Applications ○ Mobile Coupons ○ Event Alerts ○ Appointment Reminders ○ Video.

There are reports that brand recall is high (46 . A study by Kavassalis (5) reports increased effectiveness of mobile marketing over traditional media. recently voiced his belief in mobile advertising by stating that.60%). The viral capabilities of mobile campaigns – indicates that messages were forwarded to others at a rate of 5 . as opposed to email (5%). Andrew Robertson.” Mobile Marketing Strategy Development Thus far we have demonstrated that the opportunity for brands to reach and influence consumers via mobile is significant.15 0. Another study cites mobile marketing’s positive effect on reach and intent to purchase. It’s genuinely the convergence box that everyone has been talking about for so many years. with text messaging campaign response rates in the range of 10-20% being common. We concede that the mobile advertising 31 . direct mail (1 . No large scale mobile marketing & advertising effectiveness studies have been conducted to date but several small studies suggest that the medium shows immense promise. “Mobile phones will soon become the most important medium for advertisers to reach technology-savvy consumers and we are rapidly getting to the point where the single most important medium that people have is their wireless device. the established advertising industry is finally waking up to the idea that mobile may become more important to brands than the Web. This study asserts that 89% of all text messages are read and that 85.64%) and redemption of in store coupons can reach 80% with mobile marketing campaigns. CEO of BBDO.The final catalyst of the mobile advertising opportunity will be universally accepted proof that mobile is an effective marketing and advertising medium.2%) and print advertising (0. It’s with them every single moment of the day.32% which demonstrates that digital word-of-mouth is a key by-product of mobile marketing. In reaction to the growing body of evidence illustrating mobile marketing’s effectiveness.7% of respondents “who felt more positively towards the brand” claimed they were “more likely to make a purchase”.

Very little exists for mobile as it is such a nascent medium. the demographics and media consumption habits of your target audience and the resources you can allocate to mobile strategy development. or even influence. This will largely be dependent on the sector you operate in. When we define where we are we must look at our current market share. Whatever your position it is essential to be steered by some broad guidelines before we attempt to leverage mobile media. We then come to the description of the process for making the transition. Examples include lead generation to improve our customer base. Then we can determine where we want to be using the same variables. If we accept this assumption we then need to define clear reasons 32 . to define where we are and where we want to be. When developing marketing strategy we need. in the simplest of terms. Press and the Internet. but brands in most sectors should be able to identify one or more marketing objectives that mobile would be ideally suited to help meet. This applies no less to our mobile marketing strategy. sales. but brands such as Adidas. This opportunity must however be shaped through the development of a coherent mobile marketing strategy that is fully integrated with your brands primary marketing strategy and clearly supports your businesses objectives by demonstrating unquestionable ROI. they are learning fast and potentially leapfrogging their competitors. profit. customer base. Much research exists to explain why advertising works across TV. highly mobile twenty something office workers who only use their homes to sleep. brands awareness of a new line extension or CRM with busy. At this point this will include goals that mobile cannot exclusively achieve.industry is in its infancy and we agree that there are obstacles that must be overcome before it can become a mainstream advertising medium. product awareness and brand position. Microsoft and News Corp are increasing brand equity through mobile media now. We can however draw analogies and inferences based on generally accepted theories of how advertising works. Radio. We can also look at our historical and current use of mobile media and the use of mobile media by our competitors.

why mobile will be used and what it is supposed to achieve before constructing the Big Idea. The steps involved in this process are summarized in Fig and we consider these to be the fundamental principles for the development of any mobile marketing strategy. 33 .

Group Company wise % market share .28% 0. No.02% 14.94% 15. Developing a mobile marketing strategy.00% We are at the beginning of a second digital media evolution and mobile will permeate all aspects of marketing and advertising over the next five years.09% 0.81% 9. therefore.May'20106 Sl. This will allow brands to deliver their message with such precision that the term wastage will become redundant We have also attempted to demonstrate the effectiveness of mobile to connect with nomadic. Radio.07% 23.02% 3.00% 100. 1 2 3 4 5 6 7 8 9 10 11 12 Name of Company Bharti Airtel Vodafone Essar IDEA BSNL Aircel Reliance Telecom Uninor MTNL Loop Mobile Videocon Stel Etisalat All India Total Sub Figures 133619705 106347368 66726802 65790606 40079531 16311206 5012929 4857967 2911685 1394543 1233247 10122 444295711 % Market Share 30.66% 0.67% 1. fragmented audiences and have learned that there are a number of ways to get our message to them. Marketing and advertising over mobile however is far more complex than TV. is essential to help you tame this complexity and ensure 34 .31% 0.13% 1. and even the Internet because of mobile handset diversity and the multitude of technologies used by different audiences.

Mobile phone made a revolutionary contribution to fulfilling the anywhere and anytime connectivity marketers’ wishes. DESIGN OF THE STUDY STATEMENT OF THE PROBLEM TITLE OF THE STUDY: The research problem selected for the dissertation is entitled as: Study on use of Mobile Phones as a platform to market various products and services. thereby benefiting all stakeholders. 35 . Mobile marketing is defined as using a wireless medium to provide consumers with time. Shortly. One of the marketers’ demands is to be able to communicate with potential customers and to contact them anywhere and anytime.that you are delivering your message to your consumers in the most effective and efficient way. mobile marketing refers to marketing activities and programs performed via mobile phone in mobile commerce. It is a study to find out the effectiveness of using mobile phones as a platform to market various product and services. 6. personalized information that promotes products. services and ideas.and location-sensitive.

It will be relevant to find out the customers' (mobile phone users') perspective towards such type of marketing communication to utilize this marketing platform in better ways. retailing and shopping in marketing.The rapid growth of mobile phone has also come up with a new term: mobile commerce. The aim of this study is to find this. Mobile commerce driven by wireless communication technology is also generating interest from marketers. This is primarily to cover a diverse background of individuals for the study. The growth and use of mobile commerce as an emerging technology has the potential to dramatically change the way consumers make business. Consumer perception towards this form of marketing should be given prime importance to use this medium effectively for marketing products and services. (b) Data (Primary Data and Secondary Data) 36 . the penetration of this new technology has evoked changes in advertising. Starting from Network providers to retailers use this. Therefore. Focus of study: Mobile phone marketing in India. METHODOLOGY (a) Type of Research Design This Research is conducted for the sample size of 200 mobile phone users. Type of sampling used is probability sampling. and companies wishing to make business in mobile markets should be ready for mobile marketing and mobile commerce. RATIONALE OF THE STUDY The relevance of this topic now in India is the increasing popularity and reach of this mode of marketing. The membership card holders (holders of membership cards like First Citizen from Shoppers Stop) get frequent updates on latest offerings.

(d) Sampling Design Sample Unit: The research was made with responses from mobile phone users in Bangalore. Questionnaire Administration: The questionnaire was administered to the sample in person in order to clarify doubts and observe non-verbal clues from the respondents. Students (Youth between ages 18-25): They will be college goers who are dependents and are not self employed. Secondary Data was collected from the Brochures of major firms. (c) Research Instrument The Instrument used for the research is “Questionnaire” because the population covered was large in number. A Questionnaire was used to collect the data as the population covered 200. b. multiple choice questions. The Questionnaire is a “StructuredUndisguised” type of Questionnaire. Questionnaire Design: The questionnaire contains of open ended questions. Each questionnaire took ten minutes to be answered. Pilot Study: To reaffirm the research methodology of the survey. a pilot test was carried among 5 respondents. Company Magazines. Employees (Salaried : between age 20-35): The focus in this segment will be IT employees (employed by IT companies like Accenture. Infosys etc. which was a large number.) 37 . Internet. Research reports. Sample consisted of: a..Primary Data was collected through survey method choosing the respondents randomly. Likert Scale and dichotomous (yes/no) questions.

Questionnaires had to be modified to account for the new guidelines on ‘Mobile marketing Calls and Messages’ (“Pesky Calls and SMSs”) by TRAI (Telecom Regulatory Authority of India) released in December 2010. 38 . Most of the responses were irritated with marketing calls and messages on mobile phones. which casted a shadow over their responses. (a) HYPOTHESIS Null Hypothesis (H0): Mobile phone is a preferred medium to market various product and services. This is primarily to cover a diverse background of individuals for the study. Alternative Hypothesis (H1): Mobile phone is not a preferred medium to market various product and services. LIMITATIONS OF THE STUDY    Customers could not spare much time while filling the Questionnaire.Sample Size: The Sample Size covers over 200 respondents who are mobile phone users. CONTRIBUTION OF STUDY This study attempts to study consumer acceptance of mobile phone marketing/advertising and consumer responsiveness to mobile phone marketing. in terms of its impact on purchase decision making. The study also aims to propose some features enhancing the acceptability of mobile advertising and suggests an appropriate strategic initiative for the same. Sampling Technique: Type of sampling used is probability sampling.

 In Depth study was not possible due to time constraint. 7.1ANALYSIS OF DATA COLLECTED FROM MOBILE PHONE USERS 1. RESPONDENT PROFILE There were a total of 200 respondents (Sample Size).DATA ANALYSIS & INTERPRETATION 7. 39 . Gender: Analysis: Most of the Respondents are male. The distribution is as follows: I.

40 . Horror II. Age Group: Analysis: 85% of the respondents are in the age group of 20-30 years. This signifies that the opinion given in the study is male dominated. This age group utilize most of the services of mobile phone and are generally tech savvy. They are mostly graduates or the fresh working class. If companies can identify their occasions and needs. the communication can be made much more effective and hence the personalized advertising can be done through the mobile medium.Interpretation: 60 % of the respondents are male. They are at the peak of relationships and friendship and hence they do enjoy their life. Interpretation: This group is stepping into the matured state of youth.

Since they utilize most of the mobile phone services. Occupation: Analysis: 55% of the respondents are from the student’s community and 45% are salaried working professionals. youth can be a target 41 . Interpretation: In the age group of 20-30. most of the respondents are either in their Graduation or doing their Post Graduation. As this is the case.III. majority of the respondents are in student community.

45% of the respondents are salaried and working in IT companies signifying the tech-savvy crowd. Interpretation: The reason is be that most of the respondents are Post Graduates or Graduates who are studying and still dependent on their parents.10000 and remaining 55% forms income (from pocket money. Here students represent the mobile using youth and salaried represents IT employees (between age 20-30) getting monthly income IV. Income Level (per month): Analysis: 45% of the respondents are having monthly income of more than Rs. mostly) in the range of Rs.for using mobile phone as a medium for mobile marketing. 5000-7000. Salaried professionals has a monthly 42 .

Most used mobile phone instrument: Analysis: The most used mobile phone instrument is manufactured by Nokia with 29% of the sample using Nokia. Interpretation: From this we can understand that.income of more than Rs. 2. Sony Ericsson follows with 19%. Cell info Display Banners can be customized according to these two companies manufactured phones particularly. 10000. Willingness to pay for a mobile phone: 43 . 3. Mobile marketing messages (SMSs). This sample is taken so as to analyze mobile advertisements influence on purchase decisions based on income levels. MMS.

therefore the mobile marketing companies can focus on such emerging technologies and use multimedia content to be used in Mobile phone ads. Edge etc. 44 .Analysis: It is seen that 90 out of 200 respondents are willing to pay between INR 5000 to 8000 for a new mobile and 70 out of 200 are willing to pay Rs.. 10000 and above. Interpretation: This means they are eager to buy feature rich mobile phones with 3G and other modern features like GPRS.

Duration of using a single mobile phone: Analysis: We can see that 70 out of 200 respondents want to change their mobile phones within 1-2 years of use. Interpretation: This means they want to upgrade to new phones with newly added features. Mobile marketers can use thus issue more ads pertaining to products such as mobile phones and its accessories.4. 45 .

25% of the respondents also use mobile phone for WAP/GPRS and for downloading files. Others here include cameras.5. we can notice that talking and messaging constitute 140 out of 200 respondent’s prime need. Interpretation: Because of this. mobile marketers can focus on providing mobile ads through WAP banners and also post sponsorship links and images during waiting time for downloading files through the mobile phone. Reasons for using mobile phones: Analysis: This is a multiple choice question. From the bar chart. Latest mobile features aware of: 46 . 6.

Analysis: 130 out of 200 respondents are familiar with Bluetooth and 80 out of 200 with MMS. 110 out of 200 respondents are aware of 3G. Others include features like GPS. Interpretation: Increasing awareness towards mobile features like Bluetooth, GPRS, 3G, MMS are demonstrated through this chart. This shows that mobile phone users have started using mobile phones for sharing and connecting through the online (Internet) gateway rather than just use mobile phones to talk. Mobile marketers/companies can market/advertise their product and services through these means to exploit this potential. Some technologies that can be tapped are Video calling by 3G, Blue-casting in front of retail outlets, WAP banners (using GPRS) etc.

7.

Plans of changing to a 3G handset:

47

Analysis: 110 out of 200 respondents have decided to change to a 3G handset once 3G is implemented by the network providers. Interpretation: This shows the huge potential of this technology and the awareness (hype) created due to the online 3G auction. Mobile marketers/Companies can use innovative methods in exploiting the marketing potential created by this technology.

48

8.

Postpaid or Prepaid Connection:

Analysis: 130 out of 200 respondents are Pre-paid customers.

Interpretation: This shows that youth still prefer prepaid connections to postpaid connections. The main reason for this is to keep spending on mobile services under control. Companies can come up with specific marketing plans to target prepaid customers as they form the huge bulk of mobile phone users among youth.

49

9.

Most subscribed Network Provider:

Analysis: 60 out of 200 respondents are using Airtel and 50 are using Vodafone. This constitutes 55% of the respondents. Interpretation: Airtel has the maximum number of subscribers with Vodafone falling close behind among youth. All other players have more of an even distribution. Companies can get into contractual agreements with Telecom network providers like Vodafone and Airtel to reach out to more number of customers.

50

Interpretation: 51 . Reasons for dissatisfaction towards network service provider: Analysis : 80 out of 200 respondents are dissatisfied with customer care service and problems of poor signal/network quality and value added services complaints constitue about 45% of the responses.10.

Network providers can take special care to make customer support efficient and resolve problems faster. We can include neutral responses along with disagreement. 52 . instant messaging and streaming music (through a GPRS connection) are found to be of great interest to the mobile phone users/sample. network problems and problems pertaining to balance/validity not sorted out fast are the major issues here. Interpretation: From the chart. These services can be provided either through GPRS connectivity or SMS/MMS. Most interested/used cell phone service: Analysis: From the chart we can note that majority of the respondents use mobile phone for Picture/File transfer. Not getting connected to the customer care centre.email and News/weather all covering more than 100 respondents ‘agreeing’. we can understand that News/Weather updates. customer support executive no responding well. 11. video clips. Companies can therefore use these preferred methods to advertise about their products or services and make consumers aware. extended waiting time.Improper customer care services have turned out to be the major reason for dissatisfaction among mobile phone users. instant messaging.

while 70 out of 200 found it beneficial.12. Interpretation: From this we can understand that respondents are aware of the use of mobile phone as a tool and are aware of their benefits too. 80 out of 200 respondents have told that such methods are not pleasant. 53 . but do not find it pleasant when there is an intrusion of privacy. Perception towards using mobile phone as a marketing communication medium: Analysis: We can note from the graph that 80 out of 200 respondents feel that use of mobile phone as a marketing medium is necessary and useful.

clocking between 100-120 responses in the neutral level. Interpretation: 54 .13. interest. Attitude towards mobile phone advertisements: Analysis: We can see that general attitude towards mobile phone advertisements are neutral with satisfaction. necessity levels etc.

Thus marketers can use this medium to make users aware of offers and discounts. 14. 120 out of 200 respondents prefer getting messages through Bluecasting. 55 . respondents find mobile advertisements as useful and necessary. They find it informative. 90 respondents are not happy with call centre responses and waiting times.If we neglect the neutral responses. Perception of Users towards different types of SMS ads Analysis: 100 out of 200 respondents have said use of SMS as reminder of offers is good.

most respondents were neutral to this. three types stand out.Interpretation: Though. 56 . Thus using SMS Vouchers/Coupons and reminder messaging (of latest offers. Mobile marketers and/companies can use SMS Vouchers. as done for membership card holders by MegaMart) are good strategies for mobile marketing. especially in retail outlets and Shopping Malls. Blue-Casting was perceived well by the respondents and there is a huge potential for such kind of marketing. SMS bargain services and Mobile WAP banners for their Mobile ads as these are perceived as agreeable by majority of the respondents.

120 respondents are of the opinion that it is time consuming to go through SMS ads. It will be better to include informative messages within the promotional SMSs to attract attention. Companies should restrict the number of messages sent to each user to less than 3 a day and maximum of one call a day. Few users have also complained to promotional messages being a reason for loss of privacy. Messages/calls should be made at a proper time. Interpretation: 57 . There is also a clutter created due to lot of promotional messages received. relaying at wrong time and simply sending junk ads.15. 16. Reminder of sale promotions and brand recall is increased through mobile ads – 120 respondents agreeing to this Interpretation: Majority of the respondents are having a negative attitude to promotional messages when it comes to causing disturbance at work. Perception towards mobile ads/Promotional messages: Analysis: About 110 out of 130 responses (if we neglect neutral responses). have said promotional messages and ads are intrusion into privacy. Time of the day preference for getting promotional calls/Messages: Analysis: 45% of the of the respondents feel the best time for receiving promotional calls or messages after noon (after lunch or in the evening).

17.Majority (over 45%) of the respondents feel the best time for receiving promotional calls or messages after noon (after lunch or in the evening). This fact can be used by companies to time their mobile marketing tactics accordingly and time the delivery accordingly. Preference towards SMS ads pertaining to location: 58 .

Peronalization/Customerization is also the need of the hour. 59 . Interpretation: Mobile marketers should make sure the offers or promotional calls made to a mobile phone user could be availed by that particular user easily.Analysis: 110 out of 200 respondents feel that they should receive promotional calls and messages pertaining to their location.

Therefore ads can be based on offers. Promotional offers relating to Holidays and Leisure activities. a. travel destinations etc. Marital Status: Promotional messages and calls pertaining to activities and events or products and services applicable to married or single individuals. 100 out of 160 responses are positive for mobile phone ads pertaining to type of music. 60 . Leisure Activities like holidaying. Preference towards getting offers pertaining to personal information: Analysis: Neglecting neutral responses. b. 80 out of 120 respondents are in interested in receiving ads pertaining to occupation. leisure activities and ads pertaining to automobiles Interpretation: Majority of the respondents prefers getting offers pertaining to the following personal information – a.18.

Only 40 hear the message fully 61 . What a user normally does when he/she receives a promotional call: Analysis: 80 out of 200 respondents partially here the promotional message when they receive it while 50 (once phone number is recognized) disconnect it.snapdeal.com’ 15.For example as done by ‘www.

Therefore an effective pitch should be made within the first few seconds of call to persuade the user to hear the message fully. Interpretation: 62 . Whether convinced by the promotional calls: Analysis: 160 out of 200 respondents are not convinced by the promotional calls they are getting. 16.Interpretation: Majority of the respondents hear the message partially when a promotional call is received.

Are the promotional calls disturbing: Abalysis: 130 out of 200 respondents are of the opinion that promotional calls are disturbing. 63 . Personlaizationof calls and messages along with customization are very important for preventing disturbance and to create a pleasant feeling. Mobile marketing companies and telecom network providers can use innovative methods to capture users’ attention to and thus convince him/her. This pertains to the content of the message and gettign calls during work or pleasure.160 out of 200 respondents are not convinced by the promotional calls made and often find it irritating. 17.

…………………………………. Promotional calls are atleast partially heard before disconnecting it.Interpretation: Majority of mobile phone users find promotional calls disturbing. 2. MMS. Majority of Mobile phone users find Promotional calls and SMS to be disturbing. 8. and High speed Internet access on Mobile phones etc.. Personalization of calls and messages along with customization is very important for preventing disturbance and to create a pleasant feeling. 4. 5. Most preferred time for receiving calls or messages for youth is afternoon time. 3. are highly preferred by the youth. Latest technology offerings like 3G. Location based mobile ads are preferred by users – ads pertaining to their location.FINDINGS 1. This can be avoided by mobile marketers by proper customization of messages and using innovative methods to please the user. 64 . 6.

News/Weather updates. instant messaging and streaming music (through a GPRS connection) are found to be of great interest to the mobile phone users. Airtel has the maximum number of subscribers with Vodafone falling close behind among youth. 9. video clips.7.Blue-Casting is a preferred form of marketing technique among youth 12. News/Weather updates. The overall study proves that Null Hypothesis is accepted for certain parameters while it is not for certain other parameters. 10.The most used mobile phone instrument is manufactured by Nokia.HYPOTHESIS TESTING Null Hypothesis (H0): Mobile phone is a preferred medium to market various product and services. 65 . instant messaging and streaming music (through a GPRS connection) are found to be of great interest to the mobile phone users/sample. Alternative Hypothesis (H1): Mobile phone is not a preferred medium to market various product and services. The parameters for which null hypothesis is accepted are: 1. 9. video clips. 8.Youth prefer using pre-paid connections 11. Improper Customer care services have turned out to be the major reason for dissatisfaction among mobile phone users.

iii. Promotional calls 2. 80 out of 120 (neglecting neutral responses) respondents are in interested in receiving ads pertaining to occupation. SMS bargain services and Mobile WAP banners for their Mobile ads as these are perceived as agreeable by majority of the respondents 3. Intrusion of privacy: 110 out of 120 responses (if we neglect neutral responses). iv. Use of SMS Vouchers.2. FUTURE DEVELOPMENT 66 . leisure activities and ads pertaining to automobiles The parameters for which Alternate Hypothesis is accepted are: 1. Use of Blue-Casting Technique 4. SMS Messages The reasons cited are: i. Promotional calls Not Convincing: 160 out of 200 respondents are not convinced by the promotional calls they are getting. Time Consuming: 120 respondents are of the opinion that it is time consuming to go through SMS ads. ii. have said promotional messages and ads are intrusion into privacy. 130 out of 200 respondents are of the opinion that promotional calls are disturbing.

00 am. the regulations issued provide a wider choice to customers. TRAI has identified seven categories-. and financial products. 3. In case of violations. automobiles. communication and entertainment. According to industry sources. Unlike the previous regulations which provided only for a 'Do Not Call Registry’.00 pm and 9. education. so that customers are not disturbed at night. following which the number will be blocked by all service providers. even for unregistered customers.Telecom Regulatory Authority of India (TRAI) has come up with stringent ruling to restrict promotional calls and SMSs to mobile phones. the telecom operators need time to meet contractual obligations with 67 .000 for the third. shall be sent between 9. 2. the telemarketers would have to pay a fine of Rs 25. 4. 2011. On December 1. a toll-free number. The ruling includes the following guidelines that the network operators and Telemarketing companies should adhere to: 1. The user can also choose the 'Partially Blocked' category. Rs 1. The regulations also mandate that no commercial communication. The subscriber may choose to be under the 'Fully Blocked' category which is akin to the 'Do Not Call Registry'. Consumers who want to activate the ‘Do-Not Call’ (DNC) service or file a complaint against a telemarketer will now have to dial 1901. Rs 1. consumer goods.25 lakh for the fourth. 2010.000 for the first offence which would go up to Rs 75.5 lakh for the sixth offence.000 in case of a second violation. 5.banking. Rs 80. to be implemented from January 1. real estate. the regulator had come out with guidelines on unsolicited telemarketing calls and SMSs. tourism and leisure. in which case he/she will receive SMSs in the categories chosen by him. as per the revised guidelines. health.50 lakh for the fifth and Rs 2.

Therefore these methods should be customized according to user or other means of mobile phone marketing should be pursued. since majority of mobile phone users are their subscribers. Use of WAP banners 10.various telemarketing companies for which they require at least three to four months and that is the reason they are seeking more time to implement TRAI guidelines on pesky calls. Other means of mobile phone marketing like the following can be pursued: 1. 3. Blue-Casting Pod-Casting: Embedding Podcasts with marketing/promotional messages. 2.SUGGESTIONS MACRO SUGGESTIONS: 1. marketers would be further deterred from using this method of marketing. 4. Companies can get into contractual agreements with Telecom network providers like Vodafone and Airtel to reach out to more number of customers. 2. Promotional calls and messages are perceived negatively (Disturbing and not convincing) by the users. These guidelines are likely to be implemented by April 2011. IMPACT: The study proves that promotional calls and SMSs are not preferred by the mobile phone users to be a medium for marketing products and services. Mobile marketers/Companies can use innovative methods in exploiting the marketing potential created by 3G technology. Companies can come up with specific marketing plans to target prepaid customers as they form the huge bulk of mobile phone users among youth. as it is regulated. 3. 68 .

MICRO SUGGESTIONS: 1. 4. Cell info Display Banners can be customized according to Nokia and Sony Ericsson manufactured phones predominantly. Youth is eager to buy mobile phones with 3G and other modern features like GPRS. Mobile marketing messages (SMSs). since towers near to the mobile phone instrument can relay ads pertaining to that particular place.. 69 . Blue-casting in front of retail outlets. Mobile marketers can focus on providing mobile ads through WAP banners and also post sponsorship links and images during waiting time for downloading files through the mobile phone. MMS. 10. therefore the mobile marketing companies can focus on such emerging technologies and use multimedia content to be used in Mobile phone ads 3. These services can be provided either through GPRS connectivity or SMS/MMS. WAP banners (using GPRS) and Podcasting. Edge etc. Mobile marketers/companies can market/advertise their product and services through technological features like Video calling by 3G. This can be ensure location based advertising. 2. 5. Companies can therefore use these preferred methods to advertise about their products or services and make consumers aware. Cell info Display can be used as Mobile advertising medium to market various products and services by companies.

Therefore an effective pitch should be made within the first few seconds of call to persuade the user to hear the message fully. Peronalization/Customerization is the need of the hour. Companies can target this time for mobile marketing. Mobile marketers can use proper customization of messages and use innovative methods to please the user. directions to the nearest vegetarian restaurant open at the time of request.11. Respondents hear the message partially when a promotional call is received. Mobile marketers should make sure the offers or promotional calls made to a mobile phone user could be availed by that particular user easily. 14. 12. Following Points should be noted: Personalization: Marketers can personalize text messages based on the consumers’ local time. though it is preferable to use other methods of mobile marketing than calls and messages. 16. Thus using SMS Vouchers/Coupons and reminder messaging (of latest offers. The best time for receiving promotional calls or messages in after noon (after lunch or in the evening).g. Promotional offers relating to Holidays and Leisure activities should be communicated as it is preferred. 15. Companies should restrict the number of messages and calls to each user as users find it disturbing and not convincing.. 70 . location. Blue-Casting was perceived well by the respondents and there is a huge potential for such kind of marketing. especially in retail outlets and Shopping Malls. as done for membership card holders by MegaMart) are good strategies for mobile marketing. and preferences e. 13.

Such databases regularly contain personal information such as leisure activities. occupation. Unwanted messages. holidays. if at all. A simple registration ensures sending relevant messages to an interested audience. organizations must consider the best time and message frequency for the target group and topic. because at this time students can either not be reached efficiently or might get into trouble receiving messages during their classes. For targeting students. thereby underlining the importance of personalized mobile marketing. Consumer control.g. 71 . permission and privacy: Advertisers should have permission and convince consumers to ‘‘opt-in’’ before sending advertisements. type of Internet access. car ownership and income. Similar to traditional media. Spam may work as the strongest negative influence on consumer attitudes towards SMS advertising. a personalized SMS campaign relies upon databases with enough active and potential clients to reach the target group profitably. Preferences: Personalizing messages increases their impact. For e. marital status. Location: Mobile phones amplify two key arguments for electronic commerce.Time: Less intrusive than phone calls. location independence and ubiquity. commonly known as spam. stifle user acceptance – particularly as mobile phones cannot distinguish between spam and genuine communication automatically. recipients can read text messages at their leisure and choose when to respond. messages should not be sent before noon. music and media interests. Still. Consumers increasingly expect tailored and location-based services.

Consumers develop a 72 . CONCLUSION Mobile phone is a new direct marketing device that provides direct access to consumers and interacts with them in a very personal way. mobile banking and mobile entertainment services are growing in the world and in India. GSM operators and retailers expect to benefit from these mobile marketing tools. mobile Internet.11. Consumers generally had negative attitudes toward mobile advertising unless they have specifically consented to receive the mobile advertising messages. The mobile advertising.

Even though it is too early to say whether mobile commerce and mobile marketing services are accepted or not in India. programs and strategies. Furthermore. As long as these requirements are carried out. (3) create a favourable mobile shopping environment. Besides mobile service quality. information value and advertising content communication are some of the strongest drivers of the acceptance of the mobile phone as a marketing tool. There are some factors playing a role in improving and increasing mobile commerce. Dissertation was few months full of learning experiences and putting into practice what I learnt in class. entertained and proved a high information value. Moreover. and (5) develop effective the mobile marketing mix.positive attitude toward mobile marketing if mobile marketing messages were creatively designed. GSM operators and retailers ought to (1) get ready the mobile revolution in commerce. mobile commerce adoption level will be increased. Meeting with respondents helped me understand the benefits of business communication course. 73 . the findings of the research conducted on mobile phone users suggest that mobile phone users have positive attitudes towards mobile marketing tools except for irritating calls and messages. entertainment value. LEARNINGS 1. To come to the point. Mobile marketing adoption and acceptance is on the rise. the mobile phone is rapidly becoming a practical direct marketing channel. one of the ways to convince mobile phone users of the benefits of mobile commerce is the price of products and services. (2) develop healthy mobile commerce market. (4) increase mobile phones‟ operational efficiency and customer interaction.

4. 3. I learnt to adjust time and finish tasks accordingly. BIBLIOGRAPHY Internet: 74 .2. different types of questions to be asked in the questionnaire. Since there were weekly reporting and deadlines. Doing project in Bangalore gave me enough exposure to meet and interact with umpteen numbers of people. 5. Over the course of five months. Overall. I understood how to prepare a questionnaire. It helped me understand the lessons of persuasion that paid off when I had to persuade some managers to provide me with the required information. and how to do competitor analysis. it was a wonderful learning experience. This finally helped me to understand how the Telecom industry works and the ways to tackle problems.

org/industry/telecommunications.com ➢ http://papers.ssrn. “Marketing Management” ANNEXURE 75 .Moving the debate forward • The Policy Paper Series • Number 9 • January 2009 7 Mobile Value Added Services in India . March 19. 2009 ➢ ➢ 5 India: The Impact of Mobile Phones .➢ 1http://www.com/ ➢ http://www.in/statistics.comscore.pdf ➢ 2How to Develop a Mobile Marketing Strategy . July 20010 3 ➢ All India GSM Cell Sub Figures . Aerodeon.org/telecomnews/gsmfigures0109.May' 10 ➢ 4Mobile Marketer .org/ ➢ 6 http://www.com ➢ http://www.ibef. Managing Director.A Report by IAMAI & eTechnology Group@IMRB December 2009 Books: 1.coai. Philip Kotler.Chris Bourke.php ➢ http://www.allacademic.ibef. Naresh k malhotra.aspx ➢ http://www. MEDIA AND COMMERCE.THE NEWS LEADER IN MOBILE MARKETING.aibsnloa. “Marketing Research ” 2.

What would you be willing to pay for a mobile phone? <2000 2000-5000 5000-8000 10000 & Above 76 . Section 1 1. Please Male 10-20 Female 20-30 30-50 50 & Above 4. Income Level (per month) : 5. Age Group: 3. All information collected shall be kept confidential and used for academic purposes only. Gender: 2. I am a student of Disha Institute of Management And Technology (DIMAT).Disha Institute Of Management And Technology Dear Sir/Madam. Your survey responses will be strictly confidential and data from this research will be reported only in the aggregate. Thank you for your time and support. Occupation: Self Employed Specify ( Professional ) <1000 <5000 <7000 10000 & Above Salaried House wife Student Others. I would really appreciate if you could spend some time to fill this questionnaire and thus help me with valid information to complete the study. undertaking a Study on the use of Mobile Phones as a platform to market various products and services.

Any plans of changing current mobile handset to a new 3G mobile handset? A.Section 2 6. location of sales. color.) 77 . Latest Mobile facilities which you are aware of (Multiple choice) GPRS 3G MMS Bluetooth ) infrared Video call Other facilities please specify ( 10. or anything else. How long have you been using a mobile phone? Less than 1 year 1-2 years 2-4 years above 4 years 8. Yes B. reception. Are there any general comments that you would like to make about what you like/dislike about mobile phones? (This could be pricing. What are the reasons for using the above mentioned mobile phone? WAP Just to talk on it Use GPRS function ) Receive Email & SMS Down load Files Others please specify ( 9. memory. please specify ( 7. Which mobile phone instrument are you using? Nokia Ericsson Samsung LG Motorola iPhone Micromax Blackberry Spice ) Sony Others. No Comments: ( ) 11.

How satisfied are you with the services of your service provider? A. Average Satisfied 78 . Aircel Others. Who is your service provider (Multiple Choice)? A. Vodafone C. Personal 12. Please Specify ( ) 12. For which purpose(s) do you use your mobile phone the most? A. Reliance G. Fully Satisfied B. Prepaid B. Post Paid 15. Almost Satisfied C. Tata Indicom F. Idea D.12. Business B. Airtel B. Tata Docomo E. Official C. Which type of connection are you using? A.

Poor quality of signals/network B. SMSs. Value added services ABOUT PROMOTIONAL CALLS. What Cell phone services are you interested in (Respondent’s Needs for Application Service)? Mobile Games Email News/Weather Instant Messaging Video Clips Driving Directions Disagree Disagree Disagree Disagree Disagree Disagree Disagree Disagree Disagree Neutral Neutral Neutral Neutral Neutral Neutral Neutral Neutral Neutral Agree Agree Agree Agree Agree Agree Agree Streamed Music (MP3) File Transfer Agree Picture Transfer Agree 79 .D. then what is the main reason of your dissatisfaction? A. If the response to the above question is not ‘fully satisfied’. BLUECASTING. Partially Satisfied E. WAP BANNERS 16. Customer care services C. Not Satisfied 16. Call tariffs D.

What is your Attitude towards the use of cell phone as a medium for ‘Advertisements/Promotional offers’? Satisfying Interesting Useful Necessary PleasingDisagree Disagree Disagree Disagree Disagree Neutral Neutral Neutral Neutral Neutral Agree Agree Agree Agree Agree 18. How do you perceive different types of mobile advertisements? SMS Branding is good SMS Reminder is good SMS Bargain is good Agree SMS Competition is good Agree SMS Voucher is goodMobile Wap-Banners are goodBluecasting is goodDisagree Disagree Disagree Neutral Neutral Neutral Agree Agree Agree Disagree Disagree Disagree Disagree Disagree Neutral Neutral Neutral Agree Agree Agree Neutral Neutral Customer care asking feedback is good- 19.17. How do you perceive mobile advertisements/Promotional messages? Less informative Not suiting personal needs Disagree Disagree Neutral Neutral Agree Agree 80 .

Do you prefer getting offers pertaining to the following personal information? 81 .Relayed at the wrong time Clutter as a result of too many ads Cause disturbance at work Junk ads without going through it - Disagree Neutral Disagree Disagree Disagree Disagree Agree Neutral Neutral Neutral Neutral Agree Agree Agree I find it time consuming to go through ads Agree Reminder of brands advertisements seen Reminder of sale/special promotions Reminder of products /services advertised Agree Positive Brand Positioning Mobile ads giving positive impact Loss of privacy - Disagree Disagree Disagree Neutral Neutral Neutral Agree Agree Disagree Disagree Disagree Neutral Neutral Neutral Agree Agree Agree 20. Which time of the day do you prefer getting promotional messages to your mobile phone? Morning ) 21. Do you prefer SMS advertisements and offers pertaining to your location? Yes No Comments ( ) Noon (After 12 pm) Night Others ( 22.

Do you get convinced by these calls? A. Yes 82 . Hear it partially D. Yes B. Hear it fully E. Others ( ) 16. Discard it C. Do you think that these calls are often disturbing? A. Disconnect it B. No Comments: ( ) 16. what would you normally do? A.Leisure activities HolidaysMusic and media interests Type of Internet access Occupation Marital status Car ownership - Disagree Disagree Disagree Disagree Neutral Neutral Neutral Neutral Neutral Neutral Neutral Agree Agree Agree Agree Agree Agree Agree Disagree Disagree Disagree 23. When you receive a call like that. Are you regularly receiving promotional scheme calls from various organizations? Yes No Comments: ( ) 24.

No Comments: ( ) Thank you for taking time off your busy schedule to fill this questionnaire! With Warm Regards.B. Ravneet Kaur sahni MBA DIMAT Respondent’s Profile: Name ___________________________________ 83 .

Address: ___________________________________ ___________________________________ ___________________________________ Company/College Name: Email: ___________________________________ ___________________________________ Signature: ___________________________________ 84 .

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