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Final Year Project on

internet marketing
.is it there yet
Project Guide: Prof. Kuldip Kawatra

Project by

Mr. Heemanish Midde

Roll o.: !!"

!""# $ !""%
&a'ier (nstitute of Mana)ement * Research+ Mumbai Mumbai ,ni'ersity

I hereby declare that this report titled Internet Marketing" is a record of independent work carried out by me as a part of Final Year Project for the MMS course of Mumbai for the period starting from "anuary #$$% to May #$$%& 'he abo!e project was performed under the guidance of Prof& (uldip (awatra& I declare that the information gi!en in the abo!e project is true to my knowledge& ni!ersity

-r. K.

. .aidyanathan

-irector+ &a'ier (nstitute of Mana)ement * Research Mumbai ,ni'ersity

Heemanish Midde MM/ &a'ier (nstitute of Mana)ement * Research Mumbai ,ni'ersity


'he work on this project has been an inspiring) often e*citing) sometimes challenging) but always an interesting e*perience& +t the !ery outset) I wish to thank Mr& (uldip (awatra for gi!ing me the opportunity to participate in this interesting research project) that helped me gain insights into the Internet ,orld& -e has supported me with his guidance) insights) encouragement and many a fruitful discussion on Internet Marketing& I am grateful to him to ha!e spared his time and showing the patience to our answer our .ueries& 'he kindness shown by him) in spite of him being so busy with his work) is highly appreciated& I would also like to thank Ms& +runa /ajan) Mr& 0i!eck (umar) Mr& 0aibha! 'andon) Mr& 0i!ek /ajan) 1r& 0ikas -iran) Mr& Siddharth "ain) Ms& (anchan 2hagat and all my fellow colleagues who supported me at all times& 'his ensured the prompt completion of this project& 'his acknowledgment would be incomplete without e*pressing my sincere appreciation to all my friends who spent their precious time in filling up the .uestionnaires which formed the base of this research&

Mr. Heemanish Midde &a'ier (nstitute Mana)ement * Research

0he new millennium has brou)ht us on the brin1 of the (.0. Re'olution. 0his re'olution has been aided by the ad'ent of the (nternet in a bi) way. (nternet is fast chan)in) the way people used to do thin)s. aturally+ the same would ha'e an impact on the ad'ertisers. 0he (nternet has been accepted as the most powerful media for ad'ertisin) due to the absence of )eo)raphical barriers. 0he ad'ent of the (nternet and its subse2uent acceptance has once a)ain challen)ed the traditional forms of ad'ertisin). 3d'ertisers are tryin) to use the 4net4 to ad'ertise their products and hence 4net4 their customers. 0hus+ with the (nternet )ainin) prominence+ ad'ertisin) e2uations are fast chan)in) we would li1e to study the impact of (nternet on ad'ertisin) from the customers as well as ad'ertisers point of 'iew. 0here is no 2uestion that the )rowth of (nternet ad'ertisin) is outpacin) offline ad'ertisin). 3s more and more companies reali5e the real 'alue in ad'ertisin) their )oods and ser'ices online+ they are di'ertin) funds from other forms of offline ad'ertisin) to compensate. 6onse2uently+ the mar1et share of (nternet ad'ertisin) is continually )rowin) while the mar1et share of offline ad'ertisin) mediums sta)nates or declines. 3t the current rate of )rowth+ (nternet ad'ertisin) has already o'erta1en radio ad'ertisin) in spendin) and mar1et share. 7hile outdoor ad'ertisin) is also e8periencin) )rowth+ it is not )rowin) as rapidly as (nternet ad'ertisin)+ and (nternet ad'ertisin) has already o'erta1en it. 0he dominant forms of offline ad'ertisin)+ tele'ision+ newspapers and ma)a5ines+ still hold the lion share of the mar1et+ but their mar1et share is e8pected to decrease slowly o'er the ne8t few years. /ome estimations predict (nternet ad'ertisin) will hold as much as 9": of the )lobal ad'ertisin) mar1et share by !""%. 0he )rowth in (nternet ad'ertisin) is due to two different factors+ more ad'ertisers mo'in) promotions online and the )rowin) penetration of the (nternet itself. ;ecause the (nternet is

still a relati'ely new medium when compared to other lon) established ad'ertisin) mediums li1e newspapers and tele'ision+ ad'ertisers ha'e not yet reali5ed the full potential for )ain. (n !""<+ if you=re not on a social networ1in) site+ you=re not on the (nternet. (t=s as true for ad'ertisers as it is for consumers. /ocial networ1in) is the ultimate manifestation of user )enerated content+ and as such+ holds more potential for )rowth than any other form of content on the 7eb today. ,ser Generated 6ontent >,G6? and /ocial etwor1s are transformin) the media ecosystem. Gone are the days when power rested in the hands of a few content creators and media distributors. Gone are the days when mar1eters controlled the communication and path between ad'ertisement and consumer. 0oday=s model is collaborati'e+ collecti'e+ customi5ed and shared. (t=s a world in which the consumer is the creator+ consumer and distributor of content. 0oday there are o'er a billion content creators and hundreds of millions of distributors. 0he proliferation of 2uality+ affordable technolo)y durin) the past @ years+ one of the most profound social effects of the (nternet has been the democrati5ation of media. owadays+ anybody with a computer and an (nternet connection is ready to start broadcastin) to the whole world+ for free. Anline tools such as the well 1nown ;lo))er ma1e publishin) on the (nternet e8tremely easy and accessible to people with hardly any technical 1nowled)e. ;ut+ at the end of the day+

Internet marketing . Is it there yet'


1eclaration +cknowledgements 3*ecuti!e Summary 9. (ntroduction B'olution of Mar1etin) 3d'ertisin) !. (nternet Mar1etin) 0he 3d'ent of the (nternet # P=s of (nternet Mar1etin) ,nderstandin) the (nternet 6ustomers ;rand ;uildin) on the (nternet 6ritical /uccess factors in (nternet Mar1etin) ;enefits of (nternet Mar1etin) C. (nternet 3d'ertisin) 7hat is (nternet 3d'ertisin) (nternet 3d'ertisin) .s 0raditional 3d'ertisin) (nternet 3d'ertisin) 0rends D. Mar1et Research Purpose and scope of /tudy Research Abjecti'es Research Methodolo)y Research -esi)n -ata 6ollection /ample ,ni'erse C9 C! C! C! C! C! !! !C !< 9C 9D 9E 9# 9% !9 < %

@. Findin)s and 3nalysis Part ( Part (( Part ((( E. 6onclusion 0he other side of the coin Fast 7ord Recommendation #. /ocial Media Mar1etin) <. 6ase /tudy 6ase /tudy (: intendo 7ii @" @! @C @D @@ @# @% 6ase /tudy ((: ;arrac1 Abama 6ase /tudy (((: 6asio B8ilim 6ase /tudy (.: -ell 6omputers 6ase /tudy .: iPod 0ouch +nne*ure /eference 'heory and 1efinition4 Mar1etin) 3d'ertisin) (nternet Mar1etin) (nternet 3d'ertisin) /tatistics 6hoice ;oards .ertical Portals (nternet 3d'ertisin) ,ser Generated 6ontent /ocial Media Greet Hofsted 6ultural -imensions Reach (mpressions Remembrance Recall 6lassical 6onditionin) < % 9C 9E 9< 9< !! C" C" C@ C< C< D9 D9 DD DC D@ D@ DE CC C< D9

noun 9. the act of buying or selling in a market& !. the total of acti!ities in!ol!ed in the transfer of goods from the producer or seller to the consumer or buyer) including ad!ertising) shipping) storing) and selling&

. Spelled Pronunciation [mahr-ki-ting]

3t the be)innin) of the century+ social life was mostly local. (t was followed by a period in which commodities were produced on a mass scale. 6onsumer Mar1etin) operated on mass mar1etin) principles and business primarily concerned itself with how to build the best sales force. 3t the end of the century+ there is an emer)in) )lobal culture. 0he major dri'er of these chan)es is technolo)y. 0echnolo)ical chan)e has mo'ed steadily bac1 focusin) on the indi'idual. 0hese chan)es shape the possibility and conduct of business. Mar1etin) is especially tied to communication and transportation re'olution. 3s the tools and reach of mar1etin) increase+ the job and responsibilities of mar1eters ha'e e'ol'ed with them. Philip Kotler formali5ed this e'olution with his boo1 GMar1etin) Mana)ementG. His 1ey sta)es are production+ sales and brand management. Bach of these is stron)ly moti'ated by technolo)ical opportunities+ which permit new methods and new opportunities. 3 fourth sta)e+ a focus on the indi!idual customer+ is also important. 3s the new technolo)y of the (nternet de'elops+ it reinforces the new mar1etin) emphasis $ which in many ways is a return to business at the turn of the century.

(n today=s technolo)y dri'en world+ a new fast paced di)ital economy is emer)in). 0omorrow there will be companies that will e8ist only inside computer networ1s. Most business transactions will be made electronically+ directly from the producer to the consumer+ bypassin) the supply chain. (n the di)ital mar1etin) en'ironment+ the consumer becomes an inte)ral player in the de'elopment of the product. (n fact+ a consumer mi)ht build the product himself from a wide array of parts pro'ided by the 6ompany. (t is e$commerce that is chan)in) the way products and ser'ices are concei'ed+ manufactured+ promoted+ priced+ distributed and sold. 0he reason bein) that it is much cheaperH it allows 'ast co'era)e and helps in ser'in) the customer better.

AD#ERTI$ING advertising
noun 5& the act or practice of calling public attention to one6s product) ser!ice) need) etc&) esp& by paid announcements in newspapers and maga7ines) o!er radio or tele!ision) on billboards) etc&4 to get more customers by ad!ertising& #& paid announcements8 ad!ertisements& 9& the profession of planning) designing) and writing ad!ertisements&

. Show Spelled Pronunciation [ad-ver-tahy-zing]

3d'ertisin) is a paid form of communication+ althou)h some forms of ad'ertisin)+ such as public ser'ice announcements+ use donated space and time. /econd+ not only is the messa)e paid for+ but the sponsor is identified. 0hird+ most ad'ertisin) tries to persuade or influence the consumer to do somethin)+ althou)h in some cases the point of the messa)e is simply to ma1e consumers aware of the product or company Fourth and fifth+ the messa)e is con'eyed throu)h many different 1inds of mass media reachin) a lar)e audience of potential consumers. Finally+ because ad'ertisin) is a form of mass communication+ it also non$personal 3 definition of ad'ertisin)+ then+ includes all si8 features +d!ertising is paid non:personal communication from an identified sponsor using mass media to persuade or influence an audience

*1n2ti3ns 34 A56ertising
3d'ertisin) is an important promotional tool for any mar1etin) campai)n. /o much so that whene'er we thin1 of mar1etin) we thin1 of ad'ertisin) althou)h it is just one of the mar1etin) tools. 0ill now only companies with a profit moti'e went in for ad'ertisin). ;ut today )o'ernment bodies as well as non$)o'ernmental or)ani5ations > GAs? )o for hi)h profile ad'ertisin) campai)ns. 0he purpose here is not to increase the sales fi)ure but to increase the awareness of people re)ardin) the rele'ant topics. B'en thou)h each ad or campai)n tries to accomplish )oals uni2ue to its sponsor+ ad'ertisin) performs three basic functions: 1. Provide product or brand information 3lthou)h many ads are de'oid of information+ pro'idin) the consumer with rele'ant information that will aid decision ma1in) is still the main function of ad'ertisin). 0he information )i'en depends on the needs of the tar)et audience. (n the case of purchasin) a new suit+ needed information mi)ht simply include price and outlet location. For technical products+ the information is li1ely to be 'ery detailed. 2. Provide incentives to take decision (n most instances+ consumers are reluctant to chan)e established beha'ior. B'en if there are somewhat dissatisfied with the current product or ser'ice+ a habit has been established and learnin) about a new product is deemed difficult. 3d'ertisin) pro'ides the consumer with reasons to switch brands by presentin) reasons throu)h copy or )raphics. 6on'enience+ hi)h 2uality+ lower price+ warranties+ or a celebrity endorser are all possibilities. 3. Provide reminders and reinforcement (t=s ama5in) how much ad'ertisin) is directed at current customers. 6onsumers for)et why they bou)ht a particular brand of microwa'e or automobile. 3d'ertisin) must remind the customer constantly about the name of the brand+ its benefits+ its 'alue+ and so forth. 0hese same messa)es help reinforce the customers decision. Most tele'ision ad'ertisin) seems to pro'ide this function.

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Ty7es 34 A56ertising
3d'ertisin) is a form of sellin). (t tries to ma1e consumers buy )oods or ser'ices. 3d'ertisers must be aware of the factors that influence people4s buyin) habits and then use ad'ertisin) strate)ies based on this 1nowled)e. 3d'ertisin) can be classified in number of ways. 1. Print Advertising: Newspapers, Magazines, roc!ures, "#iers

0he print media ha'e always been a popular ad'ertisin) medium. 3d'ertisin) products 'ia newspapers or ma)a5ines is a common practice. (n addition to this+ the print media also offers options li1e promotional brochures and fliers for ad'ertisin) purposes. 2. $utdoor Advertising: i##boards, %iosks, &rades!ows and 'vents ($$)*

Autdoor ad'ertisin) is also a 'ery popular form of ad'ertisin)+ which ma1es use of se'eral tools and techni2ues to attract the customers outdoors. 0he most common e8amples of outdoor ad'ertisin) are billboards+ 1ios1s+ and also se'eral e'ents and tradeshows or)ani5ed by the company. 0he billboard ad'ertisin) is 'ery popular howe'er has to be really terse and catchy in order to )rab the attention of the passersby. 0he 1ios1s not only pro'ide an easy outlet for the company products but also ma1e for an effecti'e ad'ertisin) tool to promote the company=s products. Ar)ani5in) se'eral e'ents or sponsorin) them ma1es for an e8cellent ad'ertisin) opportunity. 0he company can or)ani5e trade fairs+ or e'en e8hibitions for ad'ertisin) their products. (f not this+ the company can or)ani5e se'eral e'ents that are closely associated with their field. 3. roadcast advertising: &e#evision, +adio and t!e ,nternet ;roadcast ad'ertisin) is a 'ery popular ad'ertisin) medium that constitutes of se'eral branches li1e tele'ision+ radio or the (nternet. 0ele'ision ad'ertisements ha'e been 'ery popular e'er since they ha'e been introduced. 0he radio mi)ht ha'e lost its charm owin) to the new a)e media howe'er the radio remains to be the choice of small$scale ad'ertisers. -. .overt Advertising: Advertising in Movies 6o'ert ad'ertisin) is a uni2ue 1ind of ad'ertisin) in which a product or a particular brand is incorporated in some entertainment and media channels li1e mo'ies+ tele'ision shows


or e'en sports. 0here is no commercial in the entertainment but the brand or the product is subtly >or sometimes e'idently? showcased in the entertainment show. /. 0urrogate Advertising: Advertising ,ndirect#1 /urro)ate ad'ertisin) is prominently seen in cases where ad'ertisin) a particular product is banned by law. 3d'ertisement for products li1e ci)arettes or alcohol which are injurious to heath are prohibited by law in se'eral countries and hence these companies ha'e to come up with se'eral other products that mi)ht ha'e the same brand name and indirectly remind people of the ci)arettes or beer bottles of the same brand. 6ommon e8amples include Fosters and Kin)fisher beer brands+ which are often seen to promote their brand with the help of surro)ate ad'ertisin). 2. Pub#ic 0ervice Advertising: Advertising for 0ocia# .auses Public ser'ice ad'ertisin) is a techni2ue that ma1es use of ad'ertisin) as an effecti'e communication medium to con'ey socially rele'ant messa)ed about important matters and social welfare causes li1e 3(-/+ ener)y conser'ation+ political inte)rity+ deforestation+ illiteracy+ po'erty and so on. 3. .e#ebrit1 Advertising 3lthou)h the audience is )ettin) smarter and smarter and the modern day consumer )ettin) immune to the e8a))erated claims made in a majority of ad'ertisements+ there e8ist a section of ad'ertisers that still ban1 upon celebrities and their popularity for ad'ertisin) their products. ,sin) celebrities for ad'ertisin) in'ol'es si)nin) up celebrities for ad'ertisin) campai)ns+ which consist of all sorts of ad'ertisin) includin)+ tele'ision ads or e'en print ad'ertisements. 4. ,nternet Advertising (nternet promotion is one of the newer types of ad'ertisin) and can be accomplished in a number of ways. Flash ad'ertisin) refers to messa)es that jump onto your computer screen and often mo'e around. 0hey can be hard to close and are annoyin)+ but effecti'e at )ainin) your attention. Pop up and scrollin) ads are other e8amples of these types of ad'ertisin). Pay per clic1 ad'ertisin) refers to mar1eters payin) to ha'e their web pa)es placed hi)h on search en)ine results pa)es. 0hese are also called sponsored lin1s.

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0he new millennium has brou)ht us on the brin1 of the (.0. Re'olution. 0his re'olution has been aided by the ad'ent of the (nternet in a bi) way. (nternet is fast chan)in) the way people used to do thin)s. aturally+ the same would ha'e an impact on the ad'ertisers. 0he (nternet has been accepted as the most powerful media for ad'ertisin) due to the absence of )eo)raphical barriers. 0he ad'ent of the (nternet and its subse2uent acceptance has once a)ain challen)ed the traditional forms of ad'ertisin). 3d'ertisers are tryin) to use the 4net4 to ad'ertise their products and hence 4net4 their customers. 0hus+ with the (nternet )ainin) prominence+ ad'ertisin) e2uations are fast chan)in).
Internet marketing) also referred to as web marketing) online marketing) or eMarketing) is the marketing of products or ser!ices o!er the Internet& Internet marketing ties together creati!e and technical aspects of the Internet) including design) de!elopment) ad!ertising) and sale& 'he Internet has brought many uni.ue benefits to marketing) one of which being lower costs for the distribution of information and media to a global audience& 'he interacti!e nature of Internet marketing) both in terms of pro!iding instant response and eliciting responses) is a uni.ue .uality of the medium& Internet marketing is sometimes considered to ha!e a broader scope because it not only refers to digital media such as the Internet) e:mail) and wireless media8 howe!er) Internet marketing also includes management of digital customer data and electronic customer relationship management ;3</M= systems&

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0he four P4s $ Product+ Price+ Place and Promotion ha'e lon) been associated with mar1etin)+ but thin)s ha'e chan)ed on the (nternet. /o alon) with a chan)e in the nature of the four P=s there are three new P=s which are rele'ant to the internet mar1eter: Presentation+ Processes and Personali5ation. 1. Product Product on the (nternet usually chan)es form online+ and the user e8periences it electronically+ in the form of te8t+ ima)es and multimedia. Physical )oods are usually presented in the form of a detailed online catalo)ue that the customer can browse throu)h. 0echnolo)y allows the user to 'irtually touch and feel the product on the (nternet $ rotate it+ 5oom in or 5oom out and e'en 'isuali5e the product in different confi)urations and combination. <ontent and software are two a'atars of di)iti5ed products that can be e'en distributed o'er the (nternet. An the (nternet+ B$mar1etin) will be based more on the product .ualities rather than on the price. B'ery company will be able to brin) down the cost of its products and hence competition will not be on price. (t will rather be on the uni2ueness of the product. 0o be able to attract the customers and retain them+ the company will ha'e to pro'ide nou'elle and distinct products that forces the net users to purchase and come bac1 for more. 2. Price Price has been drastically chan)ed o'er the (nternet. (t lets the buyer decides the price. 3lso it )i'es the buyers information about multiple sellers sellin) the same product. (t leads to best possible deal for the buyers in terms of price. Pricin) is dynamic o'er the (nternet. 3. P#ace Place re'ol'es around settin) up of a mar1etin) channel to reach the customer. (nternet ser'es as a direct marketing channel that allows the producer to reach the customer directly. 0he elimination of the intermediate channel allows the producer to pass the reduced distribution cost to the customer in the form of discounts.

-. Promotion Promotion is e8tremely necessary to entice the customer to its website+ as there are currently more than one billion web pa)es. Promotin) a website includes both online and offline strate)ies. Anline strate)ies include search engine optimi7ation) banner ads) multiple points of entry) !iral marketing) strategic partnership and affiliate marketing. Presently+ the cyberspace is already cluttered with thousands of sites probably sellin) similar products. For the customers to 1now of the 6ompany=s e8istence and to )arner information on the 1ind of products or ser'ices that the company is offerin)+ promotion has to be carried out. 0here can be traded lin1s or banner ad'ertisements for the same. 3lso the traditional mediums li1e print+ outdoor ad'ertisin) and tele'ision can be used to spread awareness. /. Presentation 0he presentation of the online business needs to ha'e an easy to use na'i)ation. 0he loo1 and the feel of the web site should be based on corporate lo)os and standards. 3bout <": of the people read only !": of the web pa)e. 0herefore+ the web pa)e should not be cluttered with a lot of information. 3lso+ simple but powerful na'i)ational aids on all web pa)es li1e search en)ines ma1e it easy for customer to find their way around. 2. Processes 6ustomer supports needs to be inte)rated into the online web site. 3 sales ser'ice that will be able to answer the 2uestions of their customers fast and in a reliable manner is necessary. 0o further enhance after sales ser'ice+ customers must be able to find out about their order status after the sale has been made. 3. Persona#ization ,sin) the latest software it is possible to customi5e the entire web site for e'ery sin)le user+ without any additional costs. 0he mass customi5ation allows the company to create web pa)es products and ser'ices that suit the re2uirement of the user. 3 customi5ed web pa)e does not only include the preferred layout of the customer but also a pre selection of )oods the customer may be interested in.

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ow to be able to use the se'en P=s effecti'ely in order to achie'e the predefined )oals of any or)ani5ation it is imperati'e to understand the customers. 6ustomi5ation will only be truly effecti'e if we understand our customers and their true needs. ;efore adaptin) mar1etin) practices to the (nternet+ the mar1eter needs to understand the characteristics of the online customers. 0he users are4 5irected ,nformation 0eekers: 0hey re2uire specific+ timely and rele'ant information about the products and ser'ices bein) offered. 6ndirected ,nformation 0eekers: 0hese users re2uire somethin) interestin) and useful. /omethin) that can )i'e them an ed)e+ ad'anta)e+ insi)ht or e'en a pleasant surprise. argain )unters: 0hey are of two 1inds: Ane who loo1 for free items on the internet and other who are see1in) better deals+ hi)her discounts etc. 'ntertainment 0eekers: 0hey see the 7eb as an entertainment medium of 'ast breath and potential and want to e8plore the medium before the mass )ets there. 5irected u1ers: 0hey want to buy somethin) $ now. 0hey are sure what they re2uire et users can be classified into fi'e cate)ories dependin) upon their intention of usin) the (nternet. 'he fi!e categories of

and just lo) on to the 7eb to purchase the item.

Internet Advertising Statistics (India

Internet sers4 >5)$$$)$$$ ;as of ?o!@$>= ;as per I' =

Penetration4 A&5B ;as per I' = 2roadband Internet connections4 9)59$)$$$ ;as of Mar&95@$>= ;per '/+I=

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For the 6ompany on the cyberspace+ their web site is their most important brand. 0he se'en P=s of internet mar1etin) mentioned earlier not only ha'e to try and ma1e business successful but also do brand buildin) in the process.

9r3512t an5 ser6i2e 21st3mi;ati3n

6ompanies that ha'e powerful brand awareness on the web all ha'e sites that help consumers do somethin) I whether it=s confi)urin) a computer system > on$ line or offerin) personali5ed ser'ices li1e suburban railway pass tic1et in Mumbai > 6onsumer demand and e8pectations are forecast to dri'e made$to$order or customi5ed products with rapidly shrin1in) lead times. Products are confi)ured+ as customers want them to be and pro'ide a hi)h le'el of reliability+ e8cellent 2uality+ and lon)er life spans. For e.). J-ell= computer > has become a leadin) company in sellin) computers because of the customi5ation facility it pro'ided on its site. 0he consumers could build the own computer by orderin) the own confi)uration. 0he customi5ation hi)hli)hts the 'alue$for$money aspect and induces the consumer to buy a product that meets his own re2uirement.

The E63<6ing #a<1e 9r373siti3ns

0he 'alue propositions of )oods and ser'ices offered in the physical world differ pointedly from those in the di)ital world. 0he ultimate aim of the uni'ersal mar1eter is to pro'ide a complete end$to$end consumer e8perience $ ri)ht from the promise to satisfy his need to its deli'ery. ;ut the physical world offers only KPoint /olutionsL which is basically a solution of his needs in terms of functional benefits. 3 credit card+ for instance+ allows consumers to satisfy the immediate necessity of settin) a transaction. ;ut today=s consumers are also loo1in) for process and relationship benefit $ boo1 referrals at no e8tra cost or e$mail reminders. 0he physical world is not able to deli'er these benefits because of )aps in time+ space and memory. 0he web+ on the other hand pro'ides all of these and more >Kre'erse mar1etin)+ for e8ample+ where consumers see1 out 'endors rather than the other way aroundL? by )i'in) the company the ownership and control o'er all interactions with the consumer.

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The E63<6ing Risk 9r34i<es

0he on$line customer is not a fic1le customer+ but he is a ris1y proposition ne'ertheless. 0his is because all his online e8perience will influence consumer perceptions about the brand. (f a consumer buys a product from a retailer and is in'ol'ed in an unhappy purchase e8perience at the store+ he will punish the store. ;ut if the same e8perience were to occur to him at the company=s web site+ the conse2uences would be disastrous for the company if he were to share his e8perience thou)h different user communities usin) a combination of chat rooms and electronic mails.

The E63<6ing $177<y Chain

0he transformation bein) brou)ht about the 7eb re'olution is not limited to just the consumer. 0he last few years ha'e seen a flurry of su))ested business models for doin) business in the (nternet era. 7ill the (nternet era si)nal the death of the retailerM Ar will a new intermediary come into e8istenceM 0echnolo)ical inno'ations ha'e made possible two interestin) de'elopments $ the 6hoice board system ! and the .ertical Portal.
<hoice boards are essentially design tools and conduits of information) companies that produce the products need not control them& 1ell uses a <hoice board system to sell its computers but there are others like Point&com that uses a <hoice board to help customers research and buy wireless phones and accessories& 'he market information that a <hoice board collects about customer preferences is absolutely enormous and if the manufacturing company does not control it) the site offering the <hoice board can emerge as a powerful intermediary& 0ertical portals armed with sophisticated search engines) which speciali7e in a particular industry or product category) and pro!ide customi7ed information and promote online community de!elopment are the ne*t emergent intermediaries& 'he sophistication and range of information collected on customer preferences will dri!e emergent business models& 'he ,eb will thus facilitate the transformation of the companies form transaction supporters to customer relationship managers&

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Ha'in) obser'ed the e'ol'in) paradi)ms of business in the (nternet era+ there are fi'e critical success factors that the (nternet Mar1eter has to 1eep in mind.

Attra2ting the Right C1st3mer

3ttractin) the Ri)ht 6ustomer is the first crucial step. Risin) di)ital penetration would mean that the number of customer 'isitin) particular sites would ine'itably )o up. 7hile the number of eyeballs or pa)e 'iews has so far been con'eniently used as a satisfactory measure by most web sites+ it would be foolish to cater to the whole spectrum of di)ital 'isitors. 6ontent has to be 'ery tar)et specific. 0he di)ital company has to select its tar)et se)ment by findin) out which section of customers are the most profitable in terms of re'enue transactions and who are the customers who )enerate the ma8imum number of referrals. Here a)ain it is important to note that the majority of online customers are not see1in) the lowest price. Rather they are see1in) con!enience abo'e e'erythin) else. 0he power of customer referrals has ne'er been so enormous+ since word of the mouse spreads faster than word of the mouth. B$;ay attracts more than half of its customers throu)h referrals. ot only do referred customers cost less to ac2uire than those brou)ht in by ad'ertisin) or other mar1etin) tools+ they also cost less to support since they use their friends who referred them for ad'ice rather than usin) the companies= own technical des1.

De<i6ering C3ntent #a<1e

-eli'erin) 6ontent .alue to en)a)e the user=s interest is the critical importance in retainin) customer participation. 0his is because content ser'es as a powerful differentiator. 6ontent would include Product enhancements >/oftware patches for )litches?+ personali5ed interactions >throu)h customi5ed na'i)ation paths as seen on the web sites of GM and 0oyota? and Problem Resolution >updates of deli'ery schedules and e$mail responses?. (nte)ral to the concept of deli'erin) proper content 'alue is inno'ation. For e.).

Ens1ring E=L3ya<ty
Bnsurin) B$Foyalty is 'ital to the success of any online 'enture. 0his is because ac2uirin) customers on the (nternet is enormously e8pensi'e and unless those customers stic1 round and ma1e lots of repeat purchases o'er the years+ profits will remain elusi'e. 6ontrary to the

-/ -/

)eneral 'iew that 7eb customers are notoriously fic1le+ they in fact follow the old rules of customer loyalty. 7eb customers stic1 to sites that they trust and with time consolidate their purchases with one primary supplier to the e8tent that purchasin) from the supplier=s site becomes part of their daily routine. 0he issue of trust is inte)ral to the issues of pri'acy and security. 6ompanies li1e which command ama5in) le'els of consumer trust+ ha'e used a 'ariety of encryption tools and simple ethical decisions li1e not acceptin) money for publishers for independent boo1 re'iews to maintain the trust of its customers.

E=Learning t3 4a2i<itate 7ers3na<i;e5 intera2ti3ns

B$Fearnin) to facilitate personali5ed interactions with customers has been the bi))est contribution of the 7eb to the mar1etin) strate)ists. 6ustomers in traditional bric1s$and$ mortar stores lea'e no record of their beha'ior unless they buy somethin). (n the di)ital mar1etplace+ howe'er technolo)y has made the entire shoppin) e8perience a transparent process. For e8ample+ if the customer e8its the web$site when the price screen appears+ he is a price sensiti'e consumer. /uch minute trac1in) of customer beha'ior has major implications for the world of ad'ertisin). 0he (nternet may soon be used as a test bed for testin) prototypes of mar1etin) and ad'ertisin) campai)ns. ;y monitorin) pa)es selected+ clic1 throu)hs+ responses )enerated+ and other indicators+ the company would be able to disco'er which parts of a prospecti'e campai)n would wor1+ thus reducin) the ris1 of a potential flop. 0his would ma1e it possible for the company to modify its product offerin)s much earlier than usual in the product life cycle.

9r36i5ing Digita< 6a<1e t3 the e63<6ing 23ns1mer thr31gh his <i4e 2y2<e
Pro'idin) -i)ital 'alue to the e'ol'in) consumer throu)h his life cycle has become possible because of customi5ed interactions and emer)in) business models. 0hese models ha'e often disturbed the traditional status 2uo and created new rules of business. 0he sectors where new business models will emer)e or ha'e emer)ed are the music industry+ the financial ser'ices industry+ the tra'el industry+ the relatin) se)ment and the publishin) se)ment. -i)ital 'alue is deli'ered to the consumer by promisin) him con'enience+ allowin) the customer to feel his ownership of the 7eb e8perience+ and )i'in) the customer a sense of belon)in) that tra'erses the physical boundaries.

20 20


0he reason why internet mar1etin) has become so popular is because they pro'ide three major benefits to potential buyers: !" .onvenience: 6ustomers can order products !D hours a day where'er they are. 0hey don=t ha'e to sit in traffic+ and a par1in) space+ and wal1 throu)h countless shops to find and e8amine )oods. #" ,nformation: 6ustomers can find reams of comparati'e information about companies+ products+ competitors+ and prices without lea'in) their office or home. $" "ewer !ass#es: 6ustomers don=t ha'e to face salespeople or open themsel'es up to persuasion and emotional factorsH they also don=t ha'e to wait in line.

Internet marketing a<s3 7r36i5es a n1m>er 34 >ene4its marketers


!" 7uick ad8ustments to market conditions: 6ompanies can 2uic1ly add products to their offerin) and chan)e prices and descriptions. #" 9ower costs: An$line mar1eters a'oid the e8pense of maintainin) a store and the costs of rent+ insurance+ and utilities. 0hey can produce di)ital catalo)s for much less than the cost of printin) and mailin) paper catalo)s. $" +e#ations!ip bui#ding: An$line mar1eters can dialo)ue with consumers and learn from them. %" Audience sizing: Mar1eters can learn how many people 'isited their on$line site and how many stopped at particular places on the site. 0his information can help impro'e offers and ads. 6learly+ mar1eters are addin) on$line channels to find+ reach+ communicate+ and sell. (nternet mar1etin) has at least fi'e )reat ad'anta)es. First+ both small and lar)e firms can afford it. /econd+ there is no real limit on ad'ertisin) space+ in contrast to print and broadcast media. 0hird+ information access and retrie'al are fast+ compared to o'erni)ht mail and e'en fa8. Fourth+ the site can be 'isited by anyone from any place in the world. Fifth+ shoppin) can be done pri'ately and swiftly.


Marketing o!er the years more so recently has started being used interchangeably with ad!ertising& ?ow since the e*plosion of the internet8 ad!ertising paradigms ha!e been constantly changing& 'he first ,eb ad!ertisement was placed on the -ot ,ired web site in Cctober 5%%D& +'E') M<I) Sprint) 0ol!o) <lub Med) FIM+ were the first to try it out and the Internet ad!ertising has come a long way since then&


Anline ad'ertisin) is a form of promotion that uses the (nternet and 7orld 7ide 7eb for the e8pressed purpose of deli'erin) mar1etin) messa)es to attract customers. B8amples of online ad'ertisin) include conte8tual ads on search en)ine results pa)es+ banner ads+ Rich Media 3ds+ /ocial networ1 ad'ertisin)+ online classified ad'ertisin)+ ad'ertisin) networ1s and e$mail mar1etin)+ includin) e$mail spam. Anline 'ideo directories for brands are a )ood e8ample of interacti'e ad'ertisin). 0hese directories complement tele'ision ad'ertisin) and allow the 'iewer to 'iew the commercials of a number of brands. (f the ad'ertiser has opted for a response feature+ the 'iewer may then choose to 'isit the brand=s website+ or interact with the ad'ertiser throu)h other touch points such as email+ chat or phone. Response to brand communication is instantaneous+ and con'ersion to business is 'ery hi)h. 0his is because in contrast to con'entional forms of interrupti'e ad'ertisin)+ the 'iewer has actually chosen to see the commercial.

22 22


Tra5iti3na< A56ertising ?TA@

03 is static

Internet A56ertising ?IA@

(t is dynamic with multimedia $ supportin) te8t and )raphics 'ideo sound all to)ether /pace is a problem+ as re)ards si5e of the banners etc. 3 web pa)e would be %9: editorial and %: ad'ertisin) (n'o1es immediate action as you at$least need to clic1 on the ad First response is immediate as when the user

/pace is not a restrictin) factor

0he proportion of ad'ertisin) to editorial is hi)h sometimes @":@"

-oes not e'o1e immediate action

Response to the action is not immediate

clic1s+ the person is directed to other web pa)e with more details 0he user has hi)h attention le'el and

3d'ertisements are passi'ely recei'ed.

concentration while usin) the net+ and hence they notice the ad.

3d'ertisin) does not always tar)et a 'ery focused audience

0his can be 'ery focused 3d'ertisements catch users when they are on

3d'ertisements are omnipresent

the loo1out for some thin). For e8ample the search is for tra'el on a search en)ine there are ads of tra'el a)ents on the net

-ifficult to trac1 the e8act number of people who saw the ad'ertisement. 3ds are )raphic intensi'e and a'oid copy o'erload 0he costs would be prohibiti'e to reach a )lobal audience







ad'ertisements ;oth copy and )raphics are restricted by the banner si5e specifications

0here are no such constraints

23 23

O>Ae2ti6es 34 Internet A56ertising

Advertising: 3s far as ad'ertisin) on the (nternet )oes+ all ad'ertisements will ser'e to attract the user4s attention and draw him to the company+ which is ad'ertisin). ui#d brand awareness: -irect or indirect methods can be used on the websites to build brand awareness of the different brands of a company. 0his is where the (nternet scores traditional media and methods as e8plained below. 0timu#ate direct action: .isitors to a company4s web site should )et in'ol'ed with the offerin)s on the site. .aluable customer information can also be captured and trac1ed for future mar1etin) initiati'es. Promote its brands: Promotional )i'e $ away or contests )enerate e8citement while simultaneously promotin) your brands online+ aidin) off $ line sale. ui#ding a cu#ture around its brands: 0his )oes alon) with that company4s traditional ad'ertisin). 0urrogate advertising: 0his is another means of surro)ate ad'ertisin) of the company+ where all forms of traditional ad'ertisin) fail. /urro)ate ad'ertisin) can be pro'ed to be positi'e in case of ad'ertisin) on the (nternet.

*eat1res 34 Internet A56ertising

3d'ertisin) on the (nternet has certain uni2ue features that differentiate it from other forms of ad'ertisin). 0hey are as follows: Member registration: Member re)istration is an efficient tool that is used by firms to create their database. /uch a database may be used to desi)n promotional campai)ns. 3llowin) re)istered users to participate in 'arious e'ents can follow systems of free re)istration. $n#ine opinion po##s: Apinion polls are conducted to obtain the responses from users re)ardin) the firms4 products and ser'ices besides includin) topics of )eneral interest. News#etters: Re)ular newsletters are sent especially to re)istered users. 0hese contain information about current updations on the site and acti'ities bein) performed by the company.

.ontests and sweepstakes: 6ontests are useful in attractin) new users to websites. 0hey may be for simple thin)s dependin) on the product or ser'ice bein) ad'ertised. 0he pri5es offered are in a wide ran)e and usually ha'e the lo)o of the company and the homepa)e address displayed prominently. .ontent: 0he content of the ad'ertisement can be re)ularly updated with news re)ardin) the acti'ities of the firm. 3 fact$based section showin) the manufacturin) processes of a company may also be included. 0he use of multimedia tools can ma1e this more interacti'e. ':cards: ,sers send free cards 'ia e$mail from the site of the company ad'ertisin) the product. 0he card prominently displays the lo)o or the baseline of the brand. 0he cards may be for different occasions such as birthdays+ festi'als+ birthdays+ etc. 0hese cards are used to reinforce brand identity. /tar endorsers of the brand may also be included in the picture postcard themes. 5own#oads: -ownloads may include 'arious utilities for the computer such as icons+ des1top patterns+ screensa'ers+ themes+ etc. Re)istered users )et the opportunity of downloadin) software. 6harts and other informati'e articles may also be included. .oupons: 6oupons are used to promote sales off$line. /endin) discount coupons for the products and ser'ices of the company on special occasions can do this.

Ty7es 34 Internet A56ertising

':mai# advertising: Fe)itimate Bmail ad'ertisin) or B$mail mar1etin) is often 1nown as Gopt$ in e$mail ad'ertisin)G to distin)uish it from spam. Affi#iate Marketing: 3ffiliate mar1etin) is a form of online ad'ertisin) where ad'ertisers place campai)ns with a potentially lar)e number of small >and lar)e? publishers+ whom are only paid media fees when traffic to the ad'ertiser is )arnered+ and usually upon a specific measurable campai)n result >a form+ a sale+ a si)n$up+ etc?. 0oday+ this is usually accomplished throu)h contractin) with an affiliate networ1. 0he online retailer used its pro)ram to )enerate low cost brand e8posure and pro'ided at the same time small websites a way to earn some supplemental income. .onte;tua# advertising: Many ad'ertisin) networ1s display )raphical or te8t$only ads that correspond to the 1eywords of an (nternet search or to the content of the pa)e on which the ad is shown. 0hese ads are belie'ed to ha'e a )reater chance of attractin) a user+ because

they tend to share a similar conte8t as the user4s search 2uery. For e8ample+ a search 2uery for GflowersG mi)ht return an ad'ertisement for a florist4s website. 3nother newer techni2ue is embeddin) 1eyword hyperlin1s in an article which are sponsored by an ad'ertiser. 7hen a user follows the lin1+ they are sent to a sponsor4s website. e!aviora# targeting: (n addition to conte8tual tar)etin)+ online ad'ertisin) can be tar)eted based on a user4s past clic1 stream. For e8ample+ if a user is 1nown to ha'e recently 'isited a number of automoti'e shoppin) N comparison sites based on clic1 stream analysis enabled by coo1ies stored on the user4s computer+ that user can then be ser'ed auto$related ads when they 'isit other+ non$automoti'e sites. Pa1 per .#ick: /earch en)ines place your website on their front pa)e and you pay a set amount per clic1$throu)h. /ites li1e A'erture also run bids for certain 1eywords $ the more you bid+ the hi)her your site appears on the first pa)e of the search results. Properly run+ these campai)ns can brin) a lot of e8tra traffic to your website. 0earc! 'ngine $ptimization: 0his is an online ad'ertisin) ser'ice pro'ided by many web media companies. 0hey will loo1 at your tar)et audience+ your competitors and the 1eywords for your business and optimi5e your website content so that it has a much better chance of appearin) on the first pa)e of the search results. You will pay a fee to the consultants for this ser'ice. /tudies ha'e shown that many searchers prefer to use the GnaturalG listin)s pro'ided by the search en)ines+ rather than the paid$for listin)s. 0ponsors!ips: 7ebsite sponsorship can come in two formatsH re)ular sponsorship where the ad'ertiser has a space to place the lo)o and company messa)e+ and content sponsorship where the ad'ertiser has limited control and submits their own content to the site as well as ha'in) an ad'ert on the pa)e. 0hese sponsorships will be for fi8ed periods+ and need to be on tar)eted websites to reach the ri)ht audience. $n#ine 5irectories: 0he online e2ui'alent of Yellow Pa)es+ or (ndustry -irectories+ these )i'e you basic or enhanced listin)s on the website. Your details will come up if your sector+ location or company name is searched for. Bnhanced listin)s will allow users to clic1$throu)h to your site. Anline directory listin)s are often offered in conjunction with an entry in the printed 'ersion of the directory. anner Ads: ;anner ad'ertisin) was the first 1ind of ad'ertisin) e'er done on the net. 3 banner can hi)hli)ht your productNser'iceNoffer and by clic1in) on it the user will be ta1en to your website+ where you can create a suitable landin) pa)e to pro'ide his further

information. ;anner spaces are usually sold by impressions+ or banner 'iews+ but it is sometimes sold by clic1$thru+ when you pay only when the user clic1s on the banner. ,sually hori5ontal bars across the top of a web pa)e+ they offer colour+ )raphics and often animation+ to)ether with the ability to clic1 throu)h to the ad'ertiser4s own website. Pop:up Ads: 0hese are the small windows that appear when you first )et onto a website. Pop$ups appear on your screen in full+ pop$downs appear on the bar at the bottom of your screen and you ha'e to open them to )et rid of them. ,nterstitia# Adverts: 0hese ad'erts sometimes referred to as ;rid)e 3d'erts+ pop up as you mo'e between pa)es on a site. You ha'e no choice as to whether you 'iew them or not+ althou)h you can close them down. "#oating Ads: 0hese ads appear when you first )o to a webpa)e+ and they GfloatG o'er the pa)e for fi'e to C" seconds. 7hile they are on the screen+ they obscure your 'iew of the pa)e you are tryin) to read+ and they often bloc1 mouse input as well. 0hese ads appear each time that pa)e is refreshed. Floatin) ads are popular for se'eral reasons: 0hey )rab the 'iewer4s attention and cannot be i)nored 0hey are animated 0hey ha'e audioN'ideo content li1e 0. ads 0hey can ta1e up the entire screen+ therefore from a brandin) standpoint+ they are much more powerful than a banner ad or a sidebar ad 0hey ha'e a hi)h clic1$throu)h rate of about C percent Howe'er+ many users )et hi)hly irritated because of these ads. 6nicast Ads: 3 unicast ad is basically a 0. commercial that runs in the browser window. (t has enriched audioN'ideo content. 0he ads can last anywhere from 9" to C" seconds. 0hese ads ha'e similar brandin) power as a 0. commercial. Howe'er+ a unicast ad offers somethin) that 0. ads cannot $$ the ability to clic1 on the ad for more information. 0hese ads are )ettin) 'ery effecti'e+ as the a'era)e clic1$throu)h rate is @:. &akeover Ads: .iewers 'isitin) the website will see a lar)e ad when they first come+ and then the continuity is maintained by reiteratin) the same messa)e throu)hout the site in the form of banners+ side bars or buttons. 0he approach wor1s 'ery well for brandin) because the brand is 'isible to 'iewers throu)hout the 'isit to the site. 6lic1$throu)h rates are also hi)h.


0here is no 2uestion that the )rowth of (nternet ad'ertisin) is outpacin) offline ad'ertisin). 3s more and more companies reali5e the real 'alue in ad'ertisin) their )oods and ser'ices online+ they are di'ertin) funds from other forms of offline ad'ertisin) to compensate. 6onse2uently+ the mar1et share of (nternet ad'ertisin) is continually )rowin) while the mar1et share of offline ad'ertisin) mediums sta)nates or declines. 3t the current rate of )rowth+ (nternet ad'ertisin) has already o'erta1en radio ad'ertisin) in spendin) and mar1et share. 7hile outdoor ad'ertisin) is also e8periencin) )rowth+ it is not )rowin) as rapidly as (nternet ad'ertisin)+ and (nternet ad'ertisin) has already o'erta1en it. 0he dominant forms of offline ad'ertisin)+ tele'ision+ newspapers and ma)a5ines+ still hold the lion share of the mar1et+ but their mar1et share is e8pected to decrease slowly o'er the ne8t few years. /ome estimations predict (nternet ad'ertisin) will hold as much as 9": of the )lobal ad'ertisin) mar1et share by !""%. 0he )rowth in (nternet ad'ertisin) is due to two different factors+ more ad'ertisers mo'in) promotions online and the )rowin) penetration of the (nternet itself. ;ecause the (nternet is still a relati'ely new medium when compared to other lon) established ad'ertisin) mediums li1e newspapers and tele'ision+ ad'ertisers ha'e not yet reali5ed the full potential for )ain. B'en in de'eloped mar1ets+ ad bud)ets don=t e'en come close to matchin) consumption rates. 0his shows how much room for )rowth (nternet ad'ertisin) really has. 7hile there is no way to )uarantee these predictions+ the current trends bear them out. Mar1et share for (nternet ad'ertisin) will surely continue to )row rapidly o'er the comin) years. (n !""<+ if you=re not on a social networ1in) site+ you=re not on the (nternet. (t=s as true for ad'ertisers as it is for consumers. /ocial networ1in) is the ultimate manifestation of user )enerated content+ and as such+ holds more potential for )rowth than any other form of content on the 7eb today. ,ser Generated 6ontent >,G6? and /ocial etwor1s are transformin) the media ecosystem. Gone are the days when power rested in the hands of a few content creators and media distributors. Gone are the days when mar1eters controlled the communication and path between ad'ertisement and consumer. 0oday=s model is collaborati'e+ collecti'e+ customi5ed and shared. (t=s a world in which the consumer is the creator+ consumer and distributor of content. 0oday there are o'er a billion content creators and hundreds of millions of distributors. 0he proliferation of 2uality+ affordable technolo)y durin) the past @ years+ one of the most profound social effects of the (nternet has been the

democrati5ation of media.

owadays+ anybody with a computer and an (nternet connection

is ready to start broadcastin) to the whole world+ for free. Anline tools such as the well 1nown ;lo))er ma1e publishin) on the (nternet e8tremely easy and accessible to people with hardly any technical 1nowled)e. 0he phenomenon of democrati5ed media results in a landscape of millions of micro$media+ most importantly in the followin) forms: <eb#ogs >or blo)s? are in fact web pa)es that are e8tremely easy to update+ published by one person or a )roup. ;lo)s typically offer the possibility for readers to lea'e comments on posts+ which typically leads to dialo)ue. Podcasts >combination of the words iPod and ;roadcast? are essentially radio pro)rams+ distributed in MPC format. 6reatin) a podcast is still relati'ely easy and 'ery cost$effecti'e. Podcast can be easily downloaded to a portable MPC player. =ideocasts >.ideo Podcasts? are 'ideo files distributed in MPBG$D format. Home$made 'ideocasts are startin) to appear throu)h 'ideocastin)+ a'ailable instantly to the whole world. <ikis are types of websites that enable cooperation >open to the public or within a company or )roup? by allowin) people to freely edit all of its content. 0he result is a publicly edited website+ with as little top$down control as possible. 0he best 1nown wi1i is 7i1ipedia.or)+ an online encyclopedia that allows all re)istered users to impro'e its articles. 0he first three of these new forms of media come with a uni'ersal technolo)y for distributin) content o'er the (nternet: R//. R// is a 'ery important part of all three technolo)ies+ as it allows consumers to literally subscribe to content. +00 >Rich /ite /ummary or Really /imply /yndication? facilitates syndication of content. ;y subscribin) to an R// feed+ content will be deli'ered automatically to the subscriber=s computer+ rather than him or her )oin) out to a website to find it. 0his content can be te8t >weblo) or news feed?+ audio >podcasts? or 'ideo >'ideocasts?. 0hese feeds can we 'iewed in so called R// readers+ software >web based or stand alone? that recei'es these R// feeds+ interprets them+ and shows their content either as articles or as multimedia. of distributin) content on the (nternet+ in the broadest sense. ew uses for R// are bein) de'eloped constantly and accordin) to many+ it will be the future standard

6ombinations of these technolo)ies are leadin) to a complete democrati5ation of media. (ndi'iduals find themsel'es with the same possibilities as mayor newspapers+ )roups start weblo)s that compete with )lobal content distributors+ and online radio stations emer)e. 0he cost of broadcastin) has ne'er been so low. B'erybody with a P6 and an (nternet connection can not only access all traditional media from all o'er the world+ but also the micro$content added to the media landscape by indi'iduals. Millions of people ha'e e'ol'ed from bein) mere media consumers to bein) media producers as well.

&hat is 'ser (enerated )ontent*

ser Generated <ontent ; G<=) also known as consumer:generated media ;<GM=) refers to any material created and uploaded to the Internet by non:media professionals) whether itHs a comment left on +ma7on&com) a professional:.uality !ideo uploaded to You'ube) or a studentHs profile on Facebook& G< has been around in one form or another since the earliest days of the Internet itself& 2ut in the past fi!e years) thanks to the growing a!ailability of high: speed Internet access and search technology) it has become one of the dominant forms of global media& It is currently one of the fastest growing forms of content on the Internet&

&hat is Social +edia*

'he promise of G< is now being hyper:reali7ed with social media& Sites like MySpace)

Facebook) and You:'ube represent the con!ergence of user commentary with !ideo) photos) and music sharing) all presented in a simple) user:friendly format) allowing participation on a mass scale&

30 30

3 study on the effecti'eness of (nternet 3d'ertisin) in Mumbai

9"R9O$E AND $CO9E O* $T"D%

3d'ertisers are e8pected to spend Rs. !!+@"" million in internet ad'ertisin) in the year !""% third only to 0. and Print ads+ which is around @!@#: more than that in the year !""D+ compound percenta)e increase of 9!D: o'er the last @ years. 0his is the new a)e of ad'ertisin). (t is true that people ha'e started reali5in) that internet can ser'e as a one stop point for all their needs. ;e it communication+ entertainment+ shoppin)+ information search+ internet ser'es as a panacea for all their re2uirements. 0his has led #": of the e'er users to )lue themsel'es to the (nternet and access it on a re)ular basis. 0his is an opportunity for ad'ertisers to e8ploit this re'olution. ;ut+ is it the end of traditional ad'ertisin)M (s internet ad'ertisin) effecti'e and efficient compared to the traditional formMM -oes it fulfill the basic objecti'es of ad'ertisin) >create awareness+ to )enerate sales+ build positi'e ima)e+ etcO?MMM 0he problem is that+ 'olumes of consumers are online e'eryday for their personal wor1+ but do they notice the ads+ banners etc. displayed on that webpa)e+ most important what is their recallNremembrance 'alue. 7hat about the reach of online ad'ertisin)+ is it effecti'e across o'er all tar)et )roupsM 7e ha'e trusted traditional ad'ertisin) all these years and it=s a


pro'en medium that fulfills all the objecti'es of ad'ertisin)+ can one ha'e the same trust for online ad'ertisin)O

0o compare the trust le'el of traditional ad'ertisin) and online ad'ertisin) >consumers point of 'iew? 0o find the effecti'eness of internet ad'ertisin) >reach and creation of awareness? 0o find the reliability of internet ad'ertisin) >recall and remembrance?

RE$EARC8 MET8ODOLOG% Resear2h 5esign

0his is a descripti'e research as it will clarify the doubts about online ad'ertisin). (t would )i'e us a clear picture on the effecti'eness and reliability of online ad'ertisin) compared to the traditional form of ad'ertisin).

Data 23<<e2ti3n
0econdar1 data: Anline reports related to ad'ertisin) Primar1 data: Puestionnaire+ Personal (nter'iew+ (nter'iew with Mar1etin) Professional

$am7<e 1ni6erse
asis of samp#ing: /ample should be a user of internet or should ha'e 1nowled)e about internet @" numbers in all 0amp#ing &ec!ni>ue: Qud)mental on Probability samplin) can be used to select the indi'idual units for better

producti'ity of the 2uestionnaire. 3 well educated person may be able to reason out the 2uestions in the better way.

32 32

9ART I Attit15e t3Dar5s A56ertisements
Ane can clearly ma1e out that consumers percei'e ad'ertisements as a source of information and awareness+ be it )eneral or towards 0. commercials.

ot many people find ad'ertisements to be irritatin)+ annoyin) or waste of time. 0his clearly shows a positi'e attitude toward them and hence is a )ood indication for mar1eters.

33 33

For tele'ision commercials+ around #": of consumers had a positi'e perception towards ad'ertisin) on 0..

In4<1en2er >ehin5 De2isi3n Making

(nfluencers influence the decision ma1in) process of a potential consumer. (nfluencers can be ad'ertisements+ friends+ relati'es+ third party or it can be self moti'ated also. (n Mumbai >as the tar)et mar1et is Mumbai? we can infer that friends and relati'es are the major influencers behind decision ma1in).

3 3

Ane can infer from the Geert Hofsted 6ultural -imensions a possible reason for friends and relati'es to be a major influencer.

(eert ,o-sted )ultural .imensions

Indian culture is collecti!istic& Cn the collecti!ist side) we find societies in which people from birth onwards are integrated into strong) cohesi!e in:groups) often e*tended families ;with uncles) aunts and grandparents= which continue protecting them in e*change for un.uestioning loyalty& India is low on ncertainty +!oidance) i&e& the culture is more open to unstructured ideas and

situations& 'he population may ha!e fewer rules and regulations with which to attempt control of e!ery unknown and une*pected e!ent or situation

0he recommendation of someone else remains the most trusted sources of information when consumers decide which products and ser'ices to buy. 3nd e'en thou)h new media technolo)ies are playin) a role in J)lobali5in)= society+ many purchasin) decisions are still based on firmly held national and cultural attitudes. ;ein) collecti'istic+ (ndian consumers tend to trust the immediate )roup of people in the decision ma1in) process. 0hey are open to new thin)s+ but ad'ise+ su))estions and comments of friends and relati'es hold more 'alue.

3& 3&

(f not friends and relati'es+ 0raditional mode of ad'ertisin) i.e. 30F would influence them. (t=s ob'ious as it the oldest form promotion and it )oes by the sayin) KAld is GoldL. 0here is also a hand in the awareness part of which is discussed later on in the analysis. (nternet mar1etin) has a lon) way to )o before it starts influencin) the decision ma1in) process.

C3ns1mer 7re4eren2e 34 a56ertising

3)ain+ one can easily ma1e out that traditional form of ad'ertisin) has an ed)e o'er internet ad'ertisin) in terms of consumer preference mode of ad'ertisin). 0raditional mode )ot o'er <!: preferences than that of internet ad'ertisin) which is a hu)e mar)in. 0he reason for this is same as that of influencer+ i.e. cultural attitude of consumers towards ad'ertisin). 6onsumers would prefer to chec1 out 30F elements in case there is a need i.e. information search and ta1e their decision in terms of purchasin).

3( 3(

C3ns1mers Tr1st 3n a56ertising

0he abo'e is the chart for trust le'el of ad'ertisement medium from consumer=s point of 'iew. 3)ain recommendation and traditional ad'ertisement are a leap ahead of online mobile and ;0F form of ad'ertisin). Ane can say that (ndian mentality towards online form of ad'ertisin) is still at the baseline and that of mobile is e'en worse.

Initia< C3n2<1si3n I
Ane can confidently conclude that consumers still trust and prefer the traditional form of ad'ertisin) than that of online.

3+ 3+

9ART II Time s7ent.

An an a'era)e+ a person spends more than D hours on the internet durin) his free time which is #": more than that of 0. and mo'ies and around C"": more than that of radio and print medium. Hence+ on an a'era)e the e8posure of internet to an indi'idual is around 9@": more than that of other mediums i.e. the reach of medium internet is much better than that of others.

;ut one cannot infer anythin) about the effecti'eness of the medium throu)h e8posure >reach? alone. Ane needs to calculate the impressions >actual number of times an indi'idual sees the ad? of the medium also.

/each refers to the total number of different people or households e*posed) at least once) to a medium during a gi!en period of time&

'his is a term used by media to describe and .uantify the number of indi!iduals who ha!e an "opportunity" to see an +1 in a gi!en amount of time&

3, 3,

Im7ressi3n 34 T# A5s ?A5 a63i5an2e@

7hen there were only ! channels which were K-oordarshanL+ consumers didn=t ha'e any choice but the see the commercial ads in between the pro)rams. 0hat time the impression was 'ery hi)h and hence was a 'ery effecti'e and efficient medium of promotion. ow+ with more than !@" 0. channels+ !" Radio channels+ the consumer has lot of options+ he may chan)e the channel+ or may i)nore it completely. 3ccordin) to the sur'ey+ around ED: of consumers see the ad if they find it to be entertainin)+ creati'e+ humorous or in some way attracti'e and appealin). Af course there are people >!E:? who chan)e channels durin) brea1s but not always. (n fact+ accordin) to the sur'ey there was no one who chan)e the channel each and e'ery time. Bffecti'ely+ #@: of 'iewers will see the ad'ertisement if the ad is attracti'e and appealin). Hence there is a probability of .#@ of a consumer 'iewin) the particular ad'ertisement >for creatin) awareness and information? on tele'ision ma1in) it an effecti'e mode of communication. 3s it is+ it is the second most trusted mode of communication in the minds of people.

3/ 3/

Im7ressi3n 34 On<ine A5s ?A5 a63i5an2e@

7hereas in case of online ad'ertisin)+ around #%: of consumers i)nore it completely+ i.e. they don=t e'en see them and that of !9: see them if they find it to be attracti'e. Aut of that !9:+ 9@: said that the intension was not to see those ads+ but they didn=t ha'e any option but to see them as they were (nterstitial 3d'erts+ Pop I up ads or Floatin) ads. 0hese ads either bloc1 the 'iew of the content+ or appear ri)ht in the middle of the pa)e+ or 1eeps on floatin) >mo'in)? around which is considered to be 'ery irritatin) for the consumers. Bffecti'ely+ only E: saw the online ad'ertisement co5 they were of their interest or was attracti'e. /ome said they li1ed few ads co5 of their interacti'ity and animation effects. 0his mi)ht )i'e that flash ads are more appealin). 0rust le'els of online ad'ertisements are at the bottom of the list. Hence considerin) the trust le'els and the effecti'e impression+ one can conclude that it is not an effecti'e mode of communication.

Initia< C3n2<1si3n II
B'en thou)h the reach of internet is much hi)her than that of other modes+ its ability to attract consumers for awareness creation is 'ery low. Hence comparati'ely+ traditional modes especially 0. commercials are a better option.

0 0

9ART III /emem0rance

/emembrance is the remembering only the brand name or its color or the contents or some part of the ad!ertisement and not the whole thing&

/ecall is bringing something back from memory& Cne can recall most of the elements of the ad!ertisement& + high recall !alue infers that the awareness of the brand is high&

A5 Remem>ran2e
0he 2uestion that was as1ed in the sur'ey was the latest ad that they remember in the specific medium. Anly 99 : could remember their last online ad+ whereas %": could remember the 0. commercial. (n this case also+ traditional form of ad'ertisin) has a hu)e ed)e o'er the online form.

A5 Remem>ran2e E Re2a<<
0his is for the last fi'e ads that they had seen consciously or unconsciously. (n case of 0. ads+ <D: remembered their last fi'e ads and of them <C: could recall them which is a 'ery )ood score in terms of creatin) awareness. (n case of Anline ads+ only @D: could remember their last fi'e interaction and of them only C": could recall.

Initia< C3n2<1si3n III

Ane can easily ma1e out the reliability of online and 0. ads throu)h the remembrance and recall 'alues. (t=s pretty clear that 0. ads are much reliable than that of their counterparts.

2 2

Practically it has been pro'ed throu)h the research that online ad'ertisin) is neither effecti'e nor reliable as compared to the traditional medium which is 0ele'ision commercials and print media i.e. newspapers and ma)a5ines. 3lso+ consumers trust the traditional medium more than that of online and there is a 'ast difference in their trust le'els. Af course+ it could be because of the (ndian culture which is different from the western countries that are more into e commerce and prefer to buy thin)s online and they trust the internet more as compared to the other forms. 0herefore+ (nternet ad'ertisin) is more successful in those countries. 3ll in 'ain in (ndia+ as we prefer to tan)ibles the thin)s that we buy. ;ein) collecti'e we )o shoppin) alon) with family friends and relati'es.


(n the world of online ad'ertisin)+ clic1$throu)h is 'iewed as the primary measure of ad'ertisin) effecti'eness. 0his metric 2uantifies how mar1etin) communication can be directly lin1ed to immediate consumer action. ;ut+ the metric has certain shortcomin)sH primary reliance on clic1$throu)h does not reco)ni5e that in most cases consumers who are e8posed to ad'ertisin) o'er the (nternet may not currently ha'e a need for the products or ser'ices bein) ad'ertised to them. 3dditionally+ clic1$throu)h does not 2uantify the impact that the e8posure of the ad'ertisement has on a consumer=s attitudes and perceptions of the brand bein) ad'ertised. 3d'ertisers in the offline world reali5e that consumers may not ha'e an immediate need to purchase a product or ser'ice at the moment it is bein) ad'ertised. Reali5in) this aspect of consumer beha'ior+ a common ad'ertisin) strate)y is to build awareness of a product and form positi'e associations >/ubliminal effect? between that

3 3

product and a consumer o'er time so that when the need arises to purchase from a )i'en cate)ory+ a consumer is more li1ely to consider that ad'ertiser=s product.

)lassical )onditionings
<lassical conditioning is often referred to as a means in which humans learn by association& In the classical conditioning paradigm) Pa!lo!Hs 1og) a neutral stimulus is paired with an unconditioned stimulus to elicit an unconditioned response& For e*ample) after repeated pairings of meat ;known to cause sali!ation= with the sound of a bell) the sound of a bell alone elicits sali!ation& 'his association is dependent on two characteristics of the association4 contiguity and fre.uency& 'he law of contiguity states that in order for associati!e learning to take place) the unconditioned stimulus and the neutral stimulus must be paired close in time to each other& Furthermore) it is not enough for a neutral stimulus and an unconditioned stimulus to simply co:e*ist in a close period of time& 'he more fre.uent the pairing) the easier it is to form an association& Proponents of applying classical conditioning to marketing belie!e that the association between a product and positi!e stimuli may help e*plain the effect of many !ariables in communication and attitude change& Gorn ;5%>#= tested the effects of a positi!e unconditioned stimulus on product preference& -is results support the notion that the simple association between a product ;conditioned stimulus= and another stimulus such as music ;unconditioned stimulus= can affect product preferences as measured by product choice& -owe!er) these effects were diminished in situations where consumers were in a clear decision making mode& 'he learningHs of classical conditioning gi!e us some insight on the characteristics of an effecti!ely branded Internet ad!ertisement& First and foremost) the fre.uency with which an ad is ser!ed impacts brand awareness& &Fre.uency also impacts whether or not an association between a message and a brand is made by a consumer& +nother model of consumer beha!ior that relies on associati!e learning is operant conditioning& ,here classical conditioning says beha!ior is a result of an association between a stimulus and response) operant conditioning states that beha!ior is the result of reinforcement8 a beha!ior followed by a positi!e conse.uence ;positi!e reinforcement= is likely to be repeated whereas beha!ior followed by a negati!e conse.uence ;punishment= is likely to cease& 'o relate reinforcement with online ad!ertising) it is necessary to hypothesi7e what characteristics of online ad!ertising respondents !iew negati!ely and which are !iewed positi!ely& 'o do this) the authors drew on their general obser!ations of consumer beha!ior on the Internet&

(n most cases+ users 'iew banner ad'ertisements as a nuisance as they are en)a)ed in other acti'ities while they are bein) e8posed to the ads. 3dditionally+ we can assume that most people e8posed to an ad do not ha'e the need for the products bein) ad'ertised at that time. 0herefore+ these ads are less li1ely to be noticed. (n order to ha'e an impact on brand metrics+ we can hypothesi5e that )ettin) a messa)e in front of someone as 2uic1ly as possible+ before they scroll away+ is of e8treme importance. (n addition+ the presence of a lo)o+ the si5e of a lo)o+ and the si5e of the banner should all ha'e an impact on the banner=s ability to brand. 3pplied appropriately+ these characteristics may ser'e as positi'e reinforcement and therefore ha'e a positi'e impact on brandin). 6on'ersely+ when applied improperly+ these ads may ser'e to punish 'iewers thus resultin) in little to no impact on brand metrics. 3lso+ the banner could lay a subliminal effect on the consumer which mi)ht dri'e him to buy the product or create some association with it. ;ecause it is the subconscious mind that plays the )ame here. (f one can ta1e tar)et this subconscious mind then definitely it can create a positi'e impact on brandin).

Finally ( would li1e to end by sayin) that e'en thou)h the internet has opened up a new a'enue for reachin) the end consumerH it is still 'ery much an open field. 0his is true as there is no fi8ed way or strate)y for mar1etin) on the net. (t is still 'ery much an arena where in)enuity and creati'e thin1in) 'ery much rule the roost. 0hus mar1etin) as usual has not chan)ed+ i.e. it is still the same usual selfOO. unpredictable but 'ery much re2uired.

7hy only online ad'ertisin)O (f there are other opportunities+ on the internetO

& &

0he influence of traditional media and mar1etin) ha'e o'er consumer perception is wanin) as people mi)rate to the 'ariety of social media technolo)ies for entertainment and to share information with each other. ;ut these social media outlets are more than another channel throu)h which to deli'er messa)es to the mar1etplace. 6ompanies li1e -ell+ Microsoft+ and i1on intendo are successfully usin) social media and mar1etin) strate)ies to understand

and en)a)e their audiences more deeply I with demonstrable business results. /ocial media is ma1in) an impact on all aspects of business communications today. Reliance is the latest additions to /ocial Media Mar1etin). (n !""E+ social media formats li1e blo)s+ photo sites and 'ideo sites crossed the threshold from techno$curiosity to become a bona fide societal trend. 6onsumers by the millions ha'e embraced these powerful communication tools to post an opinion+ share an e8perience+ and join the online con'ersation. 0hese con'ersations affected many companies+ some positi'ely and some ne)ati'ely+ and raised the awareness of the power social media has to influence business results. ow we are in an era where companies must ta1e action. 0he reach and influence of social media is only )oin) to )row.

( (

The $32ia< We>Fs NeD C3mm1ni2ati3n *3rms DraD M3re "sers

6ommunications has always been the fundamental 'alue of the internet to consumers. ;ac1 in the net=s early days+ email was the K1iller appL that made the 7eb a Kmust$ha'eL and continues to be a mainstay of the online e8perience. 6ommunication acti'ities split the lion=s share of consumers= online time with content+ and far outstrip commerce and entertainment.

Te2hn3<3gy=93Dere5 C3mm1ni2ati3ns A22e<erate W3r5 34 M31th

From the earliest ,se et )roups to today=s hot 'ideo sharin) and social networ1 sites+ each new inno'ation has increased consumers= reach and influence. Bmail was first practical application of the (nternet for most people and it was the first word of mouth accelerator as it enabled people to connect with family and friends instantly+ fre2uently and at little cost. ,senet )roups and discussion boards made it easy for people to find others with similar interests and consumers learned that the (nternet freed them from the limit of )eo)raphy and personal connections. 0he influence of word of mouth e8panded rapidly within these 'ertical niches. 6onsumer re'iew sites used the discussion board format+ but focused discussions around specific products+ such as boo1s at 6onsumers embraced the idea of readin) boo1 re'iews written by other readers and not relyin) on professional re'iewers= opinions to decide whether to pic1 up the latest bestseller.

+ +

;lo)s freed consumers from the limited membership of discussion boards. ;lo) sites li1e ;lo))er made it simple for an a'era)e 7eb user to post his or her opinions to the world. 3rmed with a browser+ basic typin) s1ills+ and a few strai)htforward 7eb commands+ anyone can publish their thou)hts+ rants+ or daily journal in a few minutes a day. 6onsumers soon learned their con'ersations aren=t limited to words. -i)ital

photo)raphy=s boom introduced people to sharin) their creations+ first 'ia email then 'ia first$)eneration photo$sharin) sites li1e -i)ital camcorders and audioN'ideo editin) pro)rams li1e 3pple=s iMo'ie became affordable and user$friendly 'ersions for home users. People were no lon)er limited to te8t or still photos+ and consumer$created 'ideo site You0ube 2uic1ly bloomed to si8 million users watchin) D" million 'ideos per month. /ocial networ1s li1e My/pace s1ew more toward the social end of the social$to$content continuum. 0hey combine a selection of social media tools li1e blo)s+ photo sharin)+ etc. to )i'e the author a platform for e8pressin) their passions and preferences+ while at the same time ser'in) as a central communication hub for a )roup of friends. Barly on+ bands would build online fan communities to promote their musicH now brands li1e ;ur)er Kin)+ 0oyota+ 3didas+ and 6in)ular create circles of KfriendsL that become brand$ buildin) hubs.

$32ia< Me5ia Trans43rms C3mm1ni2ati3ns int3 C3ntent

0hese new tools blur the line between communications and content. ;lo)s are a natural e8ample of how content and communications blend into a sin)le e8perience. Bach entry >or KpostL as it is 1nown? is a short article+ essay+ news item+ etc. ;ut blo))ers mean to stimulate feedbac1 and con'ersation+ as readers add comments and lin1s to other blo)s to ma1e a point. 0his interplay results in a dialo)ue of different perspecti'es and opinions. /ometimes the resultin) communications can be so influential they end up ta1in) the story in an entirely new direction.

$32ia< Me5ia )egins t3 Im7a2t )ran5s

Ane of the most e8citin) and powerful forms of social media is the 'ideo. .ideos are the ultimate e8pression of creati'ity since they can KmashupL >all in one? elements and messa)es from audio+ 'ideo+ blo)s+ company$created messa)es and media co'era)e. /ocial media sites li1e Ar1ut+ Myspace and Faceboo1 are usually seen just as places where people )o to connect with friends and find others with similar interests.

, ,

The Other $i5e 34 In4<1en2e

Aften the discussions can be positi'e about your products and the e8periences consumers ha'e had with you+ but sometimes they can be 'ery ne)ati'e. An the one hand+ this increases the number of potential critics and they don=t need to ha'e impressi'e 2ualifications or credentials to be influential. An the other hand+ all of these ne)ati'e opinions are public and searchable+ allowin) companies to prepare a response before a story )ets wide co'era)e. ;lo))ers at top companies a)ree that learnin) about and dealin) with ne)ati'e stories as they emer)e is smarter than waitin) until they hit the newspapers or e'enin) news shows. B.). -ell

Dri6ing )1siness Res1<ts Dith $32ia< Me5ia

0here are four primary ways companies can use social media to dri'e business results: ;y Monitorin) social media+ companies can trac1 how their messa)es are bein) interpreted in the mar1etplace to understand how the company is percei'ed and to learn how any responses or messa)e chan)es should be approached. 0his will also pro'ide 'aluable insi)ht into potential threats from competitors+ chan)in) industry trends+ and customer preferences. Monitorin) also enables companies to trac1 the e'olution of 1nown trends in order to 2uantify the ones )ainin) the most attention and acceptance within their tar)et audience. Measurement pro'ides the 2uantitati'e reportin) data on the specific issues and bu55 dri'in) media co'era)e ma1in) it easy to demonstrate the impact of PR and mar1etin) efforts. ;ut social media also calls for a -isco'ery approach+ in which companies learn what influences are dri'in) the internet discussions in the mar1etplace. From this+ companies can measure the )rowth of many

/ /

CA$E $T"D%
CA$E $T"D% = I Ninten53 Wii
?intendo ,ii was released in ?orth +merica on ?o!ember 5%) #$$I) to lines of enthusiasts hoping to be the first on the block to own the anticipated game console& <onsumers purchased more than one million ,ii consoles in the DD days between the &S& launch and year endJthat was e!ery ,ii console a!ailable through retail outletsJand high demand continued well into #$$A& ,ith the ,ii debut) ?intendo recorded the most successful) across: the:board holiday performance in history& &S& !ideo game

intendo 7ii=s success was+ no doubt+ bolstered by its sophisticated use of social media. 7ii had its own My/pace pa)e in mid$3u)ust+ !""E+ three months before the release+ allowin) fans to post messa)es+ read the 7ii blo) and networ1 with other 7ii enthusiasts. .ideos posted on You0ube before the debut showed product demonstrations and insider loo1s at a'ailable )ames for the new console. 0he 7ii product pa)e on also included a 7ii discussion forum+ 7ii newsletter re)istration+ 'ideo )allery+ product re)istration >allowin) owners to recei'e e8clusi'e member benefits? and social boo1mar1in) for 7ii news. (n ;rand (ntel=s K0op .ideo Game 6onsole Report+L the 7ii was the most tal1ed about )amin) console+ with C# percent of the discussion share. (t also carried the hi)hest intent to purchase and came hi)hly recommended by consumers. 6omin) up on the

&0 &0

!""# holiday season+ the 7ii is still )oin) stron) and li1ely to be on most lists of this season=s hot products. intendo reco)ni5es their audience is online+ readin) and writin) blo)s+ watchin) and ma1in) 'ideos+ and communicatin) online about products. 0o implement some of the social media elements intendo is usin) for the 7ii+ it=s first important to e'aluate your audience to create an effecti'e strate)y. 6onsider lifestyle+ a)e+ )eo)raphy+ profession and interests. (f your consumers are professionals who commute+ then a podcast that can be downloaded and listened to durin) tra'el could be the best fit for your customer base. Postin) 'ideo content on You0ube is a uni2ue opportunity to impro'e your positions in Goo)le=s ,ni'ersal /earch results. 7ith You0ube+ consumers can 'isit the site+ 'iew your 'ideo+ and easily post it to their own blo)s+ social networ1in) profiles+ or websites. ,sers can also post comments+ 'iew your profile and subscribe to 'ideos you post. You0ube is a )reat opportunity to reach a broader audience and )enerate bu55 around new or uni2ue products+ especially if your product has uncommon 'isual appeal as the 7ii does. 3nd+ when it comes to search positions+ usin) You0ube is an ideal way to create content that is inde8able by Goo)le. 7ith You0ube 'ideos often appearin) with )raphics in ,ni'ersal /earch results+ it=s an added attraction to searchers. 9earning 7hen your or)ani5ation adds social media content to its mar1etin) mi8 with the interests and lifestyles of your customers in mind+ they will li1ely blo) about it+ discussin)+ 'iewin)+ and lin1in) to your content. 0herefore+ when embar1in) on a social media plan+ it=s important that you thin1 lon)$term. 7hen you pro'ide )ood content your customers enjoy+ then abandon that content+ you run the ris1 of dama)in) your reputation and ima)e. (n social media+ what you ta1e away from users can be just as important as what you )i'e them. 6onsider how social media content will be monitored+ maintained+ trac1ed and updated. /ocial media can add 'alue to your brand and products+ but it will re2uire some on$)oin) wor1. Partnerin) with professionals can ma8imi5e your social media benefits+ without o'erloadin) your internal staff.


CA$E $T"D% G II )arra2k O>ama

It was the launch of the brand K2arack CbamaH for the S Presidential #$$> campaign& It was started in "anuary #$$A and was first of its king campaign in Politics 'he successful campaign in!ited all marketers to forget all that they had learned the last 5$ years and to look with a new and fresh look at 2arack CbamaHs strategy4 ItHs a ?ew 1ay people) letHs start with a fresh look todayL

Most brands shout throu)h ad'ertisin). 7e are coolR 7e are the best. ;uy usRRR ;ut modern consumers do not belie'e all these shoutin) ads any lon)er. 6onsumers are not led by ads. 6onsumers are influenced by their peers. 0hey only buy a brand and their productsNser'ices if their peers ha'e written a positi'e re'iew about in online. ;ut modern consumers ha'e so many options+ so many choices. 3nd brand mar1eters try to seduce+ by shoutin) adsO Abama really wanted to become part of consumers+ in an authentic way. Most mar1eters shout at consumers 'ia one way mass communications. Mar1eters ha'e learned to do this since the industrial re'olution. -ue to interacti'e media+ consumers started to interact with brands. 6onsumers started con'ersations about brands within blo)s+ forums and social networ1s. 3t You0ube consumers started to critici5e brands+ their ads+ their products+ their ser'ices. 3nd the worst part of it allH brands were not e'en aware of these con'ersations amon)st peers. Mar1eters did not e'en 1now what was bein) said about themO;ut Abama had seen the mista1es brands ma1e. He tapped into online con'ersations with an e8tended con'ersational trac1in) pro)ramH Mappin) where the con'ersations too1 place+ who were the social influencers per topicNtheme. ;y listenin) to peer con'ersations within the social space+ Abama )ained )reat insi)hts about consumer=s beha'ior and emotions. 3nd he tapped into these con'ersations in a 'ery smart wayO 9earning Most mar1eters used Kthe internetL for shoutin) banner campai)ns. 0he power of the web was peer communications+ sharin)+ interaction+ buildin) relationships+ entertainment+ sharin) opinions and more. Many mar1eters use broadcasted media to reach people. Many mar1eters use 'iral 'ideos for short campai)ns. Abama embraced the lon) tail+ and used content to build his brand in the lon) term. ;ut most mar1eters are only measurin) online

&2 &2

campai)ns by: hits+ 'iews+ clic1s+ and more web analytics. 7ith a 'iral that is really 'iral+ smart social media plannin)+ stron) seedin) s1ills you=re 'iral will become a weapon of mass affection. Most brands focus at campai)ns and spend their money on media. ;ut their websites are awful and scare away leads immediately. Abama had noticed that the most important part of the mar1etin) campai)n was his websiteR 0he secret behind the Abama website: Great architecture and functional scope. (n'est in brand architects and functional scope before you built a 'ery e8pensi'e website that does not deli'er your brand+ mar1etin)+ communications and sales )oals. Your website is your )reatest brand interaction asset. ,se your website to create en)a)ement. (n'ite people to participate and create a mo'ement of brand ambassadors. Poeple are smart and willin) to help.

CA$E $T"D% = III Casi3 EHi<im

Cn +ugust #>th) #$$A) <asio announced the release of its <asio 3*ilim 1igital <ameras with You'ube <apture mode& 'he 3*ilim is a digital still shot camera capable of taking short MP3GD !ideo that is ideal for You'ube and other !ideo sharing sites& Priced at around M#>$) this camera offers great holiday sales potential with an audience that includes millions of online !ideo enthusiasts&

0he tar)et consumers for the B8ilim are online 'ideo enthusiastsSwatchers and ma1ersS who are immersed in online social media. 6asio is an established multi$channel merchant and a well$1nown name in electronics. 7ith this product+ we found that 6asio is succeedin) in social media+ while fallin) short on direct retail sales. /pecifically+ the company created a website for the B8ilim >http:NNe8ilim.casio.comN? filled with 'ideo content to communicate+ amon) other thin)s+ how well 6asio does 'ideo. (ncluded is 'ideo of the product+ an interacti'e product timeline and a demonstration 'ideo of the You0ube capture mode. Here you can re)ister your B8ilim+ )et downloads and see all of the a'ailable accessories. 6asio is not yet utili5in) blo)s+ discussion boards+ or user$)enerated content+ but they ha'e )one far beyond their major competitors= social networ1in) efforts.

&3 &3

6asio+ howe'er+ has missed the boat on their retail sales. 0he B8ilim can be purchased directly from 6asio at but there is no lin1 to from the B8ilim product site+ nor does appear in a Kwhere to buyL search on the B8ilim site. 9earning Fearn from 6asio. 7hen creatin) any social media content+ don=t for)et the sale. 7hat features and benefits will most induce a prospect to buyM (s your product uni2ue in desi)n or functionM (f yes+ then a 'ideo Jtour= would wor1 well. -o your customers often email or call with product 2uestions or concernsM 0hen a blo) or messa)e board where you can answer 2uestions would be a )ood fit. 3re your customers curious+ but busyM (n that case+ con'ert your online 'ideos to podcasts they can download and play later. 3nd always+ unli1e 6asio+ ma1e your product easy to buy. 0utorials for customers can be a )reat way to create an on)oin) relationship with your customer. You can post Jhow$to= articles relatin) to some of your products+ or on subjects rele'ant to your customer and your business. (n'ite customers to si)n up for online Jclasses+= which can be easily created to accommodate different s1ill le'els. ;y doin) this+ your or)ani5ation can build customer confidence in you and your products+ as well as ta1e steps toward cementin) a lastin) relationship. 0he 6asio e8ample reiterates a theme 'ital to online mar1etin) inte)ration. 0he best social media efforts wor1 better when wo'en into an o'erall mar1etin) strate)y+ where each element supports the ne8t. 6asio offers considerable information in an enticin) 'ideo format+ but does not connect with their company website or sales networ1. 0o be most effecti'e+ social media should ser'e as another inte)rated entry point for your sales process.

CA$E $T"D% G I# De<< C3m71ter

It all started with a post& "une #5) #$$N I just got a new 1ell laptop and paid a fortune for the four:year) in:home ser!ice&'he machine is a lemon and the ser!ice is a lie& I6m ha!ing all kinds of trouble with the hardware4 o!erheats) network doesn6t work) ma*es out on <P usage&

+nd there was no stop to itOit gained momentumOand e!en more momentumOleading to dedicated haters

& &

0he whole thin) started with one post. ( t was followed another+ then there were many. -BFF HBFF was started. (t ruined the sales of -ell computers. 0he only reason was+ -ell didn=t update themsel'es with the internet proceedin). (t all happened without the 1nowhow of dell. 7hen they reali5ed it was too late. -ell learned fast+ they opened their blo) -irect!dell+ which answers all the 2ueries and problems about anythin) and e'erythin) about the dell laptops. (t was followed by -ell (dea /torm+ a collaborati'e blo))in) site where one can )i'e their own ideas and discuss about )eneral technolo)y+ computers etc. 0hey blo))in) was internal as well as e8ternal for the o'erall de'elopment of the company and its ima)e. 0he whole e8ercise too1 C years to be bac1 on trac1. 9earning 0his case study )i'es us >companies? a )ood reason to be updated with the happenin) of the social networ1in) sites. ;lo))in) and forums are the new influencers of today. 0hey are the li)htenin) to a fire forest. 0hey form the root of the brand ima)e. Ane needs to 1eep a trac1 of this for a successful outcome.

CA$E $T"D% G # i935 T312h

<redit +ppleHs marketing genius for making its latest generation of iPods) the iPod 'ouch) this seasonHs likely best:seller in the personal electronics category& Paunched on September Nth) #$$> the new generation of iPod incorporates the touch screen seen on the iPhone) and many of the same display and interacti!e features including ,i:Fi wireless networking and browsing& ItHs an iPhone without the phone& ,ith many of iPhoneHs popular features and a starting price of M#%%) itHs no wonder the iPod 'ouch is generating a lot of attention&

3pple hi)hli)hts the new iPod 7i$Fi and You0ube features+ on their website.


surprisin)ly+ in /eptember+ the iPod 0ouch product pa)e was listed amon) the top performers for its use of social media. Featured are plenty of 'ideos+ includin) the 1eynote address by /te'e Qobs announcin) the iPod 0ouch release+ 'ideo introductions to iPod 0ouch software and a )uided 'ideo tour of its features. 0his 'ideo content contributes to 3pple=s stron) ,ni'ersal /earch positionin) on Goo)le+ while pro'idin) a popular source for 'ideo sharin) sites.

&& &&

3pple=s site also includes a KHot

ewsL section with information on the top downloads in

i0unes and downloadable information for each of 3pple=s products. 3pple ta1es no chances here. R// feeds are a'ailable for iPod and i0unes. Generally+ 3pple utili5es the social networ1in) systems and hardware it helped to populari5e as a means to demonstrate and further sell its own products. 9earning /ocial media is now a 'ital element when releasin) a new product. (t can draw customers to your site+ e8plain and e8hibit uni2ue features and benefits+ answer 2uestions and )enerate word$of$mouth sales. 3s 3pple has demonstrated+ 'ideo Jtours= are particularly effecti'e when inte)rated with 'ideo press e'ents. 0he same content can be repurposed for a multitude of applications. R// feeds are also a )reat way to 1eep customers informed and automatically updated. 7hen incorporatin) social media into your mar1etin) mi8+ remember a few 1ey lessons that and the iPod 0ouch ha'e tau)ht us. First+ ma1e sure your social media features are placed intuiti'ely+ ma1in) them easier to find within your site. (f 'isitors can=t find it+ or ha'e to search too hard+ they won=t participate. /econd+ ma1e sure to accelerate your social media efforts as your business )rows. 6ustomers will e8pect more from you. (f your website e8pands or is redesi)ned+ e8pand and redesi)n your blo)s+ discussion boards and social ta))in) opportunities. 3dd 'ideo content+ podcasts+ ima)es and customer feedbac1 elements that will build on >and impro'e? your social media content.

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Name: V Age ?roup (1rs*: ?ender:

V I up to 9< I 9< to !@ I Male I Female I !@ to D" I D" to @@ I @@ W

1. 5o 1ou #ike Advertisements@ I Yes (nformati'e Bntertainin) 6reates awareness

I o (rritatin) 3nnoyin) 7aste of time

2. )ow muc! time do 1ou spendAA@ 0.+ Mo'ies I T 9hr I 9 $ !hrs I ! $ Dhrs I D $ Ehrs IU Ehrs ewspaper+ Ma)s I T 9hr I 9 $ !hrs I ! $ Dhrs I D $ Ehrs I U Ehrs Radio I T 9hr I 9 $ !hrs I ! $ Dhrs I D $ Ehrs (nternet I U Ehrs I T 9hr I 9 $ !hrs I ! $ Dhrs I D $ Ehrs I U Ehrs 3. 5o 1ou watc! t!e &=B+adio commercia#s during commercia# break@ I Yes I o (nformati'e (rritatin) Bntertainin) 3nnoyin) 6reates awareness 7aste of time -. , c!ange t!e c!anne# during commercia# breaksA I e'er I sometimes I depends on ad I often I e'ery time

/. <!ic! is t!e #ast NewspaperBMagazine ad 1ou remember@ <!ic! brand was it@ V V V V 2. <!ic! is t!e #ast &= commercia# 1ou remember@ <!ic! brand was it@ V V V 3. Name an1 five &= commercia#s 1ou remember #ate#1 9. V !. V C. V D. V @. V V

&+ &+

4. 5o 1ou seeBc!eck on#ine adsBmai#s w!en 1ou surf t!e internet@ I e'er I sometimes I depends on ad I often C. <!ic! is t!e #ast on#ine ad 1ou remember@ <!ic! brand was it@ V V 1D. Name an1 five on#ine ads 1ou remember #ate#1 9. V !. V C. V D. V @. V 11. Eou use t!e internet forA.. (+ank t!em in order of 1our preference* 6hattin) and /ocial etwor1in) V Bmail V (nformation V Bntertainment V B$6ommerce V -ownloadin) V 12. <!at mode of advertising inf#uences 1ou to bu1Bsuggest an1 product@ Ma)a5ines and newspaper Friends and relati'es 0. 6ommercial Anline ad'ertisements /ocial Media I ;lo)s+ forums+ /ocial etwor1in) sites

I e'ery time

13. <!ic! mode of advertising wou#d 1ou prefer@ (+ank in order of preference* 0. commercials V Print 3ds: ewspaper+ Ma)a5ines V AAH: ;anners+ Posters V Anline 3ds: ;anners+ Bmails+ V 1-. <!ic! mode of Advertising wou#d 1ou trust@ (+ank in order of preference* Recommendations from consumers V Radio V 0. V 3ds before mo'ies V ewspapers V Ma)a5ines V ;lo)s * forums V ;rand websites V Bmail ( si)ned up for V ;rand sponsorships V /earch en)ine ads V Anline banner ads V 0e8t ads on mobile phones V 1/. Eou cannot #ive wit!outA (+ank in order of preference* 6omputer with (nternet 0. Mobile iPodNMusic Player ;oo1s


12. 5o 1ou t!ink t!at t!e face of advertising is transforming in terms of tec!no#ogica# and cu#tura# impact@ I Yes I o

-i)iMar1etin) I 0he Bssential Guide to ew Media * -i)ital Mar1etin) : (ent ,ertime) Ian Fenwick Principals of 3d'ertisin) and (M6 : 'om 1unkan 6onsumer ;eha'ior

http:NNwww.wi1ipediaor)N http:NNwww.wise)ee1.comN http:NNwww.)eert$hofstede.comN http:NNwww.truc1ads.comN http:NNwww.afa2s.comN http:NNwww.bu55machine.comNarchi'esNcatVdell.html