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Seminar Report
A Contemporary Management Issue
Submitted for the requirement of subject: 207
Seminar on a Contemporary Management Issue

Submitted by:
Vinamrata Patel
M.B.A 2
Subodh Institute of Management and Career Studies
B.R.Shah M.B.A Block, Rambagh Circle, Jaipur

I, Vinamrata Patel student of M.B.A., II Sem. Of Subodh Institute of
Management & Career Studies, Jaipur (2011-12), declare that I have
completed the content of this management seminar on a contemporary
issue titled SMS Marketing- an emerging tool of marketing in modern
world myself.
I have collected data from various sources which are
acknowledged in the bibliography. This is my own work and I have not
submitted it elsewhere for any other purpose.
I extend my gratitude and thankfulness to S.I.M.C.S., Jaipur.

Vinamrata Patel


The beatitude, bliss and euphoria that accompany successful completion of
any task would not be complete without the expression of appreciation of
simple virtues to the people who made it possible. So, with reverence,
veneration and honor I acknowledge all those whose guidance and
encouragement has made successful in winding up this.
I thank Mr. Kothari and Director Sir for their full support and
I take this opportunity to thank all the faculty members for their support
and encouragement which helped me in the completion of this report.
I extend my gratitude and thankfulness to Subodh Institute of
Management & career studies.
Last but not the least Im also grateful to my parents for providing me the
continuous support to motivate me to successfully complete my report.

Date: Submitted By:
Place: Vinamrata Patel


S.No. Particulars
a) Introduction
b) Advantages and Disadvantages
c) Importance
d) Benefits and Uses
e) Reasons of using text marketing
f) SMS sending procedure
g) Examples of SMS marketing campaigns
h) Types of SMS marketing campaigns
i) Benefits of SMS marketing campaigns

a) Introduction
b) Benefits and uses
c) Advantages and Disadvantages
d) Comparisons
e) Winning strategies of Mobile Marketing
f) Trends in Mobile Marketing

3. Conclusion
4. Bibliography
SMS is an extremely cheap, high-response-rate vehicle, which can help to obtain and
retain consumers, sell and promote products/services, drive loyalty, and reinforce
branding efforts.
Communication plays a pivotal role in the world of marketing. Till date, we have found
newspapers, magazines, television, radio, hording, road shows as well as Internet as
major marketing communication tools. Moreover, telecommunication has given a new
gift to us i.e. mobile device.
Short Message Service is a kind of a text message service that allows short messages
of generally no more than 140-160 characters in length to be sent and transmitted from
a cell phone.SMS was commenced in the GSM system and later supported by various
other digital-based mobile communications systems. Unlike paging, but similar to e-
mail, short messages are stored and forwarded at SMS centers, which mean you can
retrieve your messages later if you are not available to receive them at that time.SMS
messages are stored in the network and are delivered at the next opportunity.SMS
marketing is highly personalized, interactive and has an immediate impact.
Features of SMS marketing:-
1. It is quick, direct and fast.
2. It is a two- Way communication.
3. The mobile marketing is again effective as email marketing as it is targeted to
particular age, gender or profession.
4. The method is again cost-effective.
5. It can be easily promoted via cross-media like radio, TV or print.
6. As customer forward messages in a group it opens lots of opportunities of Viral
SMS Marketing to grow as the best
method of marketing world as a whole.
SMS marketing was the first commercially
available in 1996 and is today one of the
easiest ways to connect with people, SMS
Marketing to send a message to everyone.
All this is done by an automated program
and everyone can get on the Internet.

Competition will become more competitive
by the day, and companies need a solid marketing and a cheap way directly related to
population. In this approach, it is in the tradition of SMS marketing. But before SMS
marketing is also necessary legal action, before placing it as spamming.SMS marketing
concerns relate only to provide a mobile phone or a ringing tone, this is more of
consciousness, such as tutorials, providing new business opportunities and local
activities around you.

SMS marketing is also good to get a lot of user feedback at the earliest. You can give
your contact at the end of the message to give your comments. SMS Marketing in
certain limits and length of short message, the legal and the government's support for
the language, time and the public and the region as well. SMS marketing has many
types of activities that may cause the user to submit comments in response to
marketing. Some are strong, winning contests, promotions and a plan of good weather.

In all other marketing services, SMS marketing is the easiest way to reach customers in
every area of mobile network operators. Each of us can use the SMS gateway to trade
in cheap and affordable price. SMS gateway to send and receive SMS without the help
of mobile phones, so SMS service providers use marketing the SMS gateway is a
mechanism to meet the needs of customers. To get a good reception from users target
area or region should be short and clear, if you do not lose its meaning.

SMS marketing is important in some regions where the numbers of mobile users are
more than others. As an example of China is in a place where the use of mobile
services is not due to a large population. Second India to participate to the maximum
number of mobile services. Mobile operators also have significant effects on marketing
and SMS.
b) ADVANTAGES of SMS Text Messages:
1. Easy to reach: It is also known as mobile marketing, by this application allows
marketers to communicate a single message to the customer. Instead of
contacting each customer personally like in telemarketing, in mobile marketing
through bulk messaging, an advertising message can be distributed to several
consumers all at once.
2. Personal communication: SMS has become the most popular way to
communicate today. This communication tool is used by most of us to
communicate with our friends, family and friends. Unlike an email or a newsletter,
nearly every message that is sent on a mobile phone is generally read by the
user. As a very personal way of communication, with SMS marketing it is
possible to create a direct contact with customers, based on the relationship.
3. Economical Nature: Instead of spending millions on multiple advertising
campaigns, a single message can be used to reach out to all consumers, thereby
drastically cutting down on marketing costs. With falling prices of SMS text
messages, thousands of messages through mass text messages are sent to all
prices wholesale.
4. Time Saving: An instant mode of communication, marketers can reach out to
their customers whenever they want. Like most mobile phone users keep their
phones with them at all times, can be sent by the leadership contributions in
time-critical messaging and responses can be monitored.
1. Spam messages: Bombarding cell phone users with repeated advertising
messages does more harm than good. These spam text messages often annoy,
irritate and frustrate users who require a negative attitude toward companies to
send messages that are negative to develop their brand.
2. Cost to recipient: Not quite your usual form of messaging, for SMS
marketing mobile phone networks charge both the sender as well as the receiver
of the messages. These additional costs are often irritating the recipient and give
a negative image of the house the business sending SMS text messages.
3. Limitations of Messages: With messages being limited to 140-160 characters,
it becomes difficult to create an effective message within such short word limit.

c) IMPORTANCE of SMS Marketing
With a fast growing number of mobile phones and end-users, high-tech men at work
have come across SMS marketing technique. In order to obtain attention of customers
on the move or strengthen the customer relationship, SMS Marketing is considered as
one of the best techniques to promote a product. Well, rules of SMS marketing vary
from mass marketing models. Though, the major prospective of SMS marketing is that it
instantaneously reaches user's end at comparatively lower cost. So, writing over the
walls or putting banners are considered as things of the past. Now, for marketing your
product or services, this SMS marketing is considered as the best form to reach the
confined user.
So you may ask how it works. Well, when
SMS beeps, sometimes you come across advertisement that is linked to promotion of
product or services. Besides that, if you observe that at the same moment your friend
has also received the same SMS, thus it is known as SMS marketing. This will help in
promotion of product or service offered by the supplier. Along with this promotion, SMS
marketing helps in building effectual customer relationship. By giving correct
information, knowledge and empowerment to customer, it ensures that the supplier is
there with you all the time. With the help of this SMS marketing, any supplier can create
high level of response at cheaper rates.
It is said to be that SMS marketing is indeed vital in order to promote your product or
service to the people globally, and with ease. You dont need to go for any
advertisement that costs you much. All you have to do is to send other people regarding
your product, and then it is really up to them if they will consider your product or not.

g) USES & BENEFITS for Text SMS Marketing

1. Increase Sales and Brand exposure
Text SMS Marketing is perfect for local and national retailers wishing to promote
products or services provide incentives, and increase customer loyalty and retention.
Retailers can send Text SMS messages to their opt-in subscribers with coupons code
inserted directly into the message. Customers can come into the stores and present
their coupons right on their cell phones for redemption.

2. New Revenue Source for your business
Using Premium SMS (PSMS), a business can create a new revenue source by offering
paid services to its customers. Common services range from custom ring tones and
phone wallpapers, to specialized information, such as stock price alerts. When a
customer subscribes to a PSMS service, they are charged a fee, such as $9.99 per
month, billed through the carrier on their monthly billing. The business subsequently
receives payment from the carrier, approximating 50 % of the charged fee.

3. Mass Alert to everyone
Since 80% of all cell phone users carry their phone all the time, a text message to their
cell phones is the perfect way to alert your subscribers or clients of any urgent
information, such as a change of appointment, or product ready for pickup. Text SMS
Software is an ideal way for school districts to send alerts to parents regarding school
closings, changes in schedules etc.

4. Reminders
Doctors and dentist offices will never miss another appointment because they can utilize
Text SMS messaging to remind their patients of their upcoming appointments. Never
again will you have to call patients individually to remind them of their upcoming

Here are ten reasons why your business should use text marketing:

1. Your customers only leave home with three things: Their car keys, purse or wallet
and their cell phone. Text marketing ensures your message reaches your customers no
matter where they are. This lets you speak to your potential customers in a one on one
manner that is unmatched by other advertising.

2. The time to market is immediate. No more waiting for ad copy to be proofed. Weeks
for new campaigns to be designed. You can begin a new campaign from creation to
deliver in a few minutes.

3. Just the customers who have a positive relationship with you and want to do more
business with you will receive your message. You only pay to market to customers who
have opted-in to receive offers from you because they have given you permission to
send them material.

4. Text message marketing is effective and produces a redemption rate anywhere from
20% to 70%. Compare that to print, TV, radio or direct mail which averages 1.5%.

5. Over 90% of text messages sent are opened and read by your customers in 15
minutes. No other advertising medium has that relationship with the consumer. Text
message ads engage the consumer in a way that makes them look forward to more
offers from you.

6. Text advertising is cost efficient and produces the highest rate of return for you
advertising dollar. Text messages sent cost only pennies a piece, compared to direct
mail pieces that can cost over $1.00.

7. Text marketing delivers your message with no filler. Just give the customer what they
want, short and direct and they will respond. Text messages are capped 160 characters
and give your customers a reason to do business with you without having to decipher
what your ad actually is about.

8. Text marketing allows you to measure the results and scope of your other
advertising. Place a text to action on your direct mail, newspaper, radio or TV ads and
you will know that day which advertising is reaching your target market and which is not
producing a return on your investment.

9. It is a highly targeted form of advertising. You can target your campaigns to specific
customers to produce higher redemption rates and build lists that will produce
immediate sales every time you send a new text advertisement to them.

10. Text marketing or SMS marketing uses the latest technology customers have, their
cell phones. Customers like the feeling of being involved with something new and
exciting and will respond accordingly. By taking advantage of new mobile advertising
opportunities you are separating yourself from your competitors it says your business is
moving forward and staying ahead. The benefits to text message marketing are very
effective at increasing your sales, saving you money and time. Incorporate text
advertising and help your business continue to grow.
Pros of SMS Marketing:
-in to receive SMS messages from companies, this type of marketing
pulls in a niche audience, which is keenly interested to know more about the product or
service concerned.
urging them to participate in surveys, fill out questionnaires and vote in polls.
easier for the company to make changes to the advertising campaign, as and when
integrate this with the various types of mobile social media available today, existing
users would be able to spread their message through word of mouth.

Cons of SMS Marketing:
low companies very little advertising space. The maximum limit for text
messages is 160 characters. Besides, the advertiser cannot add impressive audio or
animation effects to the messages. That could limit the creativity of the advertiser.
message is so short, the mobvertiser would have to put in added time
and effort to create an effective enough campaign, which would attract more users.
Also, the same advertisement cannot be repeated over and over again, unlike TV or
radio ads. Each SMS ad has to be differently worded and presented.
engage mobile users and encourage them to opt-in to
receive messages on their mobile phones. Even if they do opt-in, it is not necessary that
they read every message the company sends them. Messages that are sent without the
users permission are usually discarded as spam.
mobile users today, SMS marketing is only now gaining popularity. Besides, this type of
marketing commands a very limited audience, as it is only a certain age group of people
that uses texting on a regular scale.

1. SMS messages almost always reach the recipient
Unlike e-mails where up to 50% or more of your subscribers may not receive it due to
spam filters on their end or e-mail broadcast restrictions on your host server (to combat
spam) or the unreliability of e-mail relaying through the Internet, SMS messages almost
always reach your intended recipients since youre charged for every SMS message
sent. The few times when your SMS messages dont get through are when your
intended recipient is overseas and he does not have a Roaming facility with his cell
phone network, or when he has turned off his cell phone for a considerable amount of
time (like a few days). These are rare cases, however and its safe to say that the
majority of your recipients will receive it.
2. SMS messages almost always get read by the recipient
Theres nothing more irresistible than the tone indicating to a cell phone user that a
SMS message has arrived for him on his cell phone. He doesnt know what the
message is, and hes used to getting and reading personal SMS messages from his
3. SMS messages almost always get read
When they receive your SMS message promoting a marketing offer from your business,
they cant resist checking it out and they will do this within SECONDS and sometimes
within a split second!
4. SMS messages can get you an immediate response
Cell phone users are a sad lot theyre slaves to the gadget, whether they would like to
admit it or not. If you have crafted your marketing offer well, with an incentive to respond
quickly via return SMS, theyre more likely to respond to your offer quickly than via e-
mail marketing.

Step 1: Collecting Mobile Numbers for SMS Marketing
Consumers see their mobile phone numbers has sacred, so you may find that many of
them are not as apt to give you their cell phone number like they are their email
address. We all know what's happened to most of them regarding email marketing and
they have a right to fear that the same will occur with SMS marketing. In order to gain
their mobile number they will have to have a great deal of trust in you and a relationship
will help as well. They also need to know that what you'll be sending them via SMS
message is exclusive offers, not the same offer that you give via email and social
media. Be clear with your customers - and use the following guidelines when
introducing SMS marketing to your customers:
1. Guideline 1: - Infrequent messaging, perhaps once a month, no more than two times
a month.
2. Guideline 2: - Offers will be exclusively for customers that share their cell phone
number with you.
3. Guideline 3: - SMS will be used to send them premium notices such as an order
coming in, an appointment reminder or an upcoming service date.
You will have a greater chance of gaining access to their mobile number by following
these guidelines and making it clear to your customers what you will use their number
You can collect their numbers using a signup sheet at your register, asking them when
talking on the phone, allowing them to submit a form on your website, or by giving them
a number that they can text to subscribe to your SMS messages. Whatever you do keep
a copy of their permission to market to them via SMS, if you run into problems you will
be glad that you did.

Step 2: Do Your Due Diligence
As you collect the numbers and begin to use them in your SMS campaign be sure that
you have measures in place that if a customer unsubscribe, they are removed from your
list immediately, it is illegal not to do so. There are actually a few laws you need to be
aware of when it comes to mobile marketing.
Opt-In only- You must obtain consent from the customer before sending an SMS text

Unsubscribe- With every message you send you must provide an unsubscribe option
in the message and if they select that option you must unsubscribe them immediately.

Be Aware of the Cost- For customers without unlimited text messaging plans they can
incur costs from your messages if it puts them over their limit. You need to make the
customer aware that additional fees may apply if they are not on an unlimited SMS
messaging plan.
These are only guidelines, be sure to consult with an attorney to ensure that you have
fulfilled all of your legal obligations before venturing into this marketing medium, it's your
duty to understand the relevant laws.
Step 3 - Setup, Create and Start Your SMS Campaign
Once you've collected your mobile numbers, verified that you have followed all of your
legal responsibilities you can start your SMS marketing campaign.

g) 5 SMS Marketing Campaign Examples
The following mobile marketing case studies and examples showcase the power
of using SMS marketing to build and grow business. You can use it to generate
text message marketing ideas for your organization and for general
#1: Dunkin Donuts Coupons Drive Local Sales
Dunkin Donuts wanted to introduce its hot lattes to young adults in
the Boston area. Their October campaign delivered a mobile coupon for a $0.99 small
hot latte to 7,500 targeted opt-ins (high school and college age students). This was
supported by Boston radio DJs on Thursday mornings that month, as well as 400,000
mobile banner ads on Boston-targeted mobile websites. SMS coupon redemption
training was provided to over 1,000 Dunkin Donuts staff.
Results: The SMS messaging, targeted WAP, and radio promotions increased in-
store traffic by 21% (compare this to a 3 percent redemption rate thats typically
considered very good). 35% of participants later surveyed said they were more
likely to buy Dunkin Donuts lattes and coffee.
Findings: 17% of participants forwarded or showed the message to a friend.
Promoting the coupons viral (shareable) nature helped generate more traffic and
coupon redemption.
#2: McDonalds Offers Instant Prizes with SMS
McDonalds is one company that has fully embraced mobile marketing,
and one seasonal campaign for McDonalds Italy shows how effective it can be to
generate response. The Merry Xmas in the Restaurant campaign enabled customers
to enter a sweepstakes while in the restaurant and immediately win a prize.
Each unique code printed on the cups won a prize (presents ranged from mobile
content to physical prizes like prepaid credit cards and mobile phones). The campaign
was promoted on TV and in the restaurant.
Results: In five weeks, there were more than 1.5 million participants a 25%
response rate and the best result of a McDonalds mobile marketing campaign yet.
Findings: Binding guaranteed prizes to the purchase of a product with an instant
sweepstakes entry mechanism (SMS) can be very effective.
#3: Orbitz Uses SMS for Customer Loyalty and Engagement
Orbitz launched OrbitzTLC Alerts as a means to engage
Orbitz customers, provide travel information including real-time updates, and to
reinforce branding (remind customers of Orbitz before travel purchases). A radio
campaign introduced customers to OrbitzTLC Alerts and offered dollars off an Orbitz
travel package as an incentive to try OrbitzTLC Alerts. Customers also were given the
option of subscribing to additional text messages from OrbitzTLC.
Results: Hundreds of text requests were received on the first day of the campaign,
requesting the promo code and opting in for further messaging. After two weeks,
response rates exceeded expectations.
Findings: There was a significant number of opt-ins for further messages from
Orbitz, indicating that even one-time promotions can generate long-term customer
#4: ESPN Increases New Subscriptions via SMS
ESPN launched a campaign that used SMS as the delivery
platform back in June of 2005, before texting was even as widespread as it is today.
They wanted to promote sales of the new ESPN BottomlinePro sports information
service, and used a marketing mix of ESPNs television, print, and online properties.
The call to action directed consumers to send a text message and the return message
provided a WAP link for users to sign up. On some carriers, download instructions were
simply provided.
Results: Immediate messaging results were seen from on-air crawls and online
Findings: Many more subscriptions were sold when the link to purchase was
provided vs. simple download instructions.

#5: Kraft Foods Launches New Product While Reducing Distribution Costs
Kraft Foods wanted to promote the launch of new instant coffee
products, Jacobs 3in1 and Jacobs 2in1. The main objective was to place product
samples among early adopters and opinion leaders, while decreasing product
distribution costs and building a customer database for future CRM. The call to action
invited consumers to request a product sample by texting in a media-specific keyword
and was promoted in print and TV ads, as well as with online and mobile banner ads. A
targeted list of opted-in consumers also received push SMS messages inviting them to
text-in for the sample. Consumers who responded were sent a link to the mobile
sampling portal.
Results: Over 400,000 samples were requested, and more than 80,000 users
opted-in for future messaging. The 650 banner ads on selected portals had a click
through rate of 3%, and 10.6% of the targeted list responded to the push text
messages. 0.4% of users who saw the TV ad ordered a product sample via
Findings: Cross-media integration can help drive success. Push messaging to
targeted opt-in lists can be one of the most effective marketing tactics.

h) TYPES OF SMS Marketing Campaign:
Text Board takes a truly unique approach to SMS marketing. Unlike other applications
that lock a single keyword into a single campaign type, Text Board allows you to run
multiple (unlimited) campaign types which are ongoing and allow you to add and
remove keywords associated with that campaign at anytime. This allows you to update
and change your marketing messages for the best possible SMS results.
1. Auto Response Campaigns
The Auto Response campaign type is the easiest way for customers to engage with
your brand through text messaging. When a customer texts a keyword to this campaign
they will instantly receive your defined text messages back on their phone. Offer them
discounts, coupons and exclusive offers directly on their phone to encourage high
2. Scheduled Campaigns
With a Scheduled campaign you set the predefined times your subscribers will receive a
message on their mobile phones after opting in to your campaign. Text Board allows
you to use multiple keywords that are active on other campaigns so you can make sure
all your subscribers receive exactly the right message at exactly the right time.
3. Staggered Campaigns
A staggered campaign is exclusive to Text Board. This campaign type allows you to
target your customers based on when they subscribed. Unlike a scheduled campaign
that sends your message at defined dates and times, staggered campaigns will send
messages at predetermined intervals after an individual joins your mobile subscriber
list. Staggered campaigns are great for tourist locations or for businesses that
want to reach customers frequently over a small period of time.

4. Voting Campaigns
Have your customers text in and vote on their favorite items. You specify the
voting options which can be changed at any point in the future. Voting results are
displayed in real time in the Text Board campaign dashboard. Because your
subscriber lists are so well-segmented you can even follow up with just the people
who voted for a specific option.
5. Contest Campaigns
Run a live contest to encourage customer loyalty. You control frequency of entries, how
winners are selected and what messages they get back. Successful entries are saved
to your subscriber list that can then be marketed to in the future. Caution: Contest
campaigns get passed around quickly and can grow rapidly! Get ready for amazing
6. Mobile Coupons
Coupons have always been a million dollar a year business for large
manufacturers and direct mail companies. But paper coupons were a hassle
for many consumers because they had to cut them and remember to carry them
to the store. With mobile coupons your customers will come to your store with
coupon in hand because the mobile coupons will be stored in their phones.

7. Mobile Alerts
Use messaging to send informational alerts to users (e.g. local weather updates,
sport scores, Hollywood gossip or weekend sale details)
8. Mobile Customer Service
Provide information via text messaging (e.g. location of the nearest store, bank
account balances, operational hours or order fulfillment details)
9. Mobile Contests
Add mobile to your contests. If you are running a giveaway, contest or
sweepstakes, enabling a text to enter call to action, which allows for
immediate entry (e.g. text WIN to 12345) is a popular type of text marketing

10. Mobile Feedback
Engage and capture information from your users with interactive text messaging
campaigns (e.g. polls, quizzes or voting).

11. Mobile Content
Games, ringtones, images and applications that exist in a digital format can be made
available to download directly to your phone using text messagingeither for profit or

12. M-Commerce
Text messages can now be used to place orders and can lead customers to a
mobile checkout page to help customers pay for purchases.


1. Deliverability:
As 94% of all text messages are read, your marketing message will be seen by virtually
all of the subscribers in your campaign.

2. Qualified Recipients:
Since your subscribers have opted-in to receiving your offers and promotional
messages, you know they have an active interest in your business, and your products.

3. Flexibility:
With text messages sent and received within minutes of starting your campaign, you
can use mobile marketing for ad-hoc purposes, such as driving traffic to your store on
slow nights (Make a purchase within x hours, and receive a xx % discount!), or
clearing out overstock items before end of month. This is the new Blue Light Special!

4. Range of Use:
Mobile marketing can be used for a wide range of purposes: announcing new product,
one-day specials, new store openings, special eventsetc. Subscribers can be treated
as an exclusive group for offers and information that only they have access to,
increasing loyalty, purchases, and speed of communications.

SMS Marketing is one of the most effective and affordable marketing
solutions. Consider the following facts:

1. Today there are about 2 billion users of SMS text messaging worldwide. According to
industry studies, over 80% of the cell phone users are willing to receive opt-in text
2. Wireless marketing is expected to be one of the fastest growing market segments for
the next 2-3 years.
3. Brand recall is very high with mobile marketing with survey results showing that as high
as 51% of recipients remember the brand. Of these, 96% remember the call-to-action
from the message.
4. In a July 08 survey by the Direct Marketing Association (DMA), SMS Marketing
campaigns were found to be the most successful mobile ad medium. 70% of those
surveyed had responded to a marketing text message.

Mobile marketing can refer to one of two categories of interest. First, and relatively
new, is meant to describe marketing on or with a mobile device, such as a cell phone
using SMS Marketing. (This is an example of horizontal telecommunication
convergence). Second, and a more traditional definition, is meant to describe marketing
in a moving fashion - for example - technology road shows or moving billboards.
Although there are various definitions for the concept of mobile marketing, no commonly
accepted definition exists. Mobile marketing is broadly defined as the use of the mobile
medium as a means of marketing communication or distribution of any kind of
promotional or advertising messages to customer through wireless networks. More
specific definition is the following: using interactive wireless media to provide
customers with time and location sensitive, personalized information that promotes
goods, services and ideas, thereby generating value for all stakeholders".
In November 2009, the Mobile Marketing Association updated its definition of Mobile
Mobile Marketing is a set of practices that enables organizations to communicate
and engage with their audience in an interactive and relevant manner through any
mobile device or network.
Another definition comes from marketing professor Andreas Kaplan who defines mobile
marketing as "any marketing activity conducted through a ubiquitous network to which
consumers are constantly connected using a personal mobile device". Within this
definition, Kaplan uses two variables, i.e. the degree of consumer knowledge and the
trigger of communication, to differentiate between four types of mobile marketing
applications: Strangers, Victims, Groupies, and Patrons.

b) Seven Unique Benefits of Mobile

1. The mobile phone is personal.
A 2006 survey (Wireless Works by BBO and Proximity) found that 63% of respondents
would not share their phone with anyone (and 90% of those surveyed in Japan would
not share their phone). While laptops do present a personal connection to the Internet,
they are not as personal a device as the mobile phone.
The implication for marketers: Respect for privacy and permission is exceptionally
important in all aspects of marketing, and particularly so when it comes to mobile

2. The mobile phone is always carried.
What do you take with you when you leave your house? Wallet, keys and mobile phone.
What do you keep always near you when you are in your house? Mobile phone.
According to 2007 research by Morgan Stanley, 91% of mobile phone owners keep their
phone within one metre, 24 hours a day. People have their phones with them at all
times of the day, even in the bathroom.
The implication for marketers: Messages sent to recipients can be read and acted on
immediately. Unlike, for example, email which requires that the recipient be in front of
their computer and connected to the Internet, messages sent to mobile phones will most
likely be accessed within minutes of being received.

3. The mobile phone is always on.
In order to fulfill its primary function as a telephone the mobile phone is always on.
Messages and services can be sent and acted on at all times of the day.
The implication for marketers: Similar to the previous feature of the phone, the fact
that the phone is always on changes the services and messages that can be developed
for the phone. It also means that marketers need to be even more sensitive with their
marketing communications. Not many people would appreciate an SMS at 4am
informing them of a special offer.
4. The mobile phone has a built-in payment system.
This is perhaps the key feature of the mobile phone, and one reason why content for
mobile phones in many areas generates as much or more revenue than content for the
Internet. Every mobile phone has a built in payment mechanism the SIM card. Billing
is easily handled through the users mobile network. Not only do mobile phones have
this built-in payment mechanism, paying for content and downloads has been built into
the way that consumers use their phones. There is less of an expectation that goods
and services will be free. There are also a number of services that turn the mobile into a
virtual wallet or bankcard, bringing banking and payment services to people all around
the world. ichannel, a mobile news ticker feed in Japan, generates US$ 192 million per
year in subscriptions for its US$ 2 a month service. It has more paying subscribers on
this single service that all online newspapers in the world combined (Moore, 2008).
Similar cases can be made for games, music and other mobile content.
The implication for marketers: Consumers are willing to pay for services and content
on their mobile. Advertising is not the only way to generate revenue for content.

5. The mobile phone is available at the point of creative inspiration.
As the mobile phone is always carried and always on, it is always available as a
creative tool. Phones today feature a number of tools that let users act on creative
impulse, from taking photos and videos, to becoming a scribbling pad on which to jot
down ideas.
The implication for marketers: The feature can be used to encourage interactivity
within campaigns created for mobile. It presents the mobile as a useful tool in viral
campaigns based on consumer generated content.

6. The mobile phone presents accurate audience measurement.
While the Internet is vastly superior to other media in its ability to track and measure
advertising and marketing campaigns, it is eclipsed by the mobile phone. Every
transaction made on a mobile phone can be uniquely tracked to that mobile phone
number, whether the transaction is a voice call, an SMS message or accessing the
The implication for marketers: Aggregated data provides extensive profiling and
segmenting opportunities for targeting the right audience. Campaigns can also be
accurately measured and tracked for ROI. Bear in mind as well that this accurate
measurement means that mobile phone users have far less anonymity than Internet
users. Even though at least 50% of mobile phones worldwide are on a prepaid or pay-
as-you-go type of contract (which means that the network operators do not have the
phone users name and demographic details to go with the mobile number), each
transaction made by the phone user can still be measured. Be aware, that the networks
determine the data that they are willing to share with the marketing company. This limits
the information available.

7. The mobile phone captures the social context of media
This represents emerging thinking on the benefits of the mobile. Because of the nature
of the mobile phone to accurately track transactions to any particular phone number
(user), it can track transactions between mobile numbers (users). This means that
sophisticated data mining can identify patterns that indicate information and preferences
of mobile phone users. Not only can alpha users be identified, but they may be
identified within their social context.
The implication for marketers: This information will represent rich data that can be
used to both create and market products, content and services online.

c) Advantages and disadvantages of mobile marketing

Positive side:
* Preliminary data shows good response rate for mobile campaigns (5% click rates vs.
1% for conventional web ads).
* New tool for brands and advertisers to reach new customers and target specific
* Smart phones and iPhone to enhance mobile surfing, promoting mobile marketing
* Messages sent to a mobile phone are more likely to be read than email sent to a PC,
which can get caught in the spam filter.
* Mobile marketing campaigns are highly targeted and are opt-in, making them more
effective than other forms of advertising.
* Mobile marketing can help build a customer database. Once customers opt in to
receive an ad, you can use the information for loyalty marketing and customer retention.
* Mobile marketing can help generate buzz about your products/services because your
offers will reach consumers while they are actively shopping, socializing, and making
buying decisions.
* High penetration of devices with twice as many cell phones as PCs.
* Web searches on mobile devices will eventually exceed searches on PCs.
* Access to many international consumers who cant afford PCs
* Mobile phones can receive input anywhere-anytime, enabling location-specific and
behavioral targeting for local businesses.
* A cell phone is a very personal device that people take with them wherever they go,
making it easy for marketers to develop a relationship with customers through this
* Carriers have customer data and location information potentially available for
* Personalization, immediacy, and interactivity of mobile ads encourage response by
consumers on the go.
Negative side:
* Trial and error period required for mobile marketers to learn how to succeed in mobile
marketing, which differs from the traditional web marketing.
* Advertisers are wary of consumer privacy issues.
* FCC yet to rule on limiting use and release of customer data, including location
* In April, FCC released order requiring mobile marketers to obtain express consent
from customers before carriers can release data and to make it easy for customers to
opt out.
* Mobile marketing is fragmented and complex because of many different handsets and
carriers, different types of functionality and different preloaded apps (i.e. Google Maps
on iPhone).
* Currently, reach is low because consumption of mobile content is small (10% of
subscribers), and penetration of 3G devices is still low in most countries.
* Current WAP technology inadequate, discouraging web searching and surfing.
* General intolerance of advertising messages on a personal device.
* Current carrier-imposed walled garden approach prevents unfettered mobile web
* Adaptation of content and messages to the mobile web results in poor user
* Scarcity of mobile web sites (only 8% of 1,000 top U.S. brands offer a mobile site).
Mobile marketing via SMS Marketing
Marketing on a mobile phone known as SMS Marketing has become increasingly
popular ever since the rise of SMS (Short Message Service) in the early 2000s in
Europe and some parts of Asia when businesses started to collect mobile phone
numbers and send off wanted (or unwanted) content. On average, SMS messages are
read within four minutes, making them highly convertible.
Over the past few years SMS Marketing has become a legitimate advertising channel in
some parts of the world. This is because unlike email over the public internet, the
carriers who police their own networks have set guidelines and best practices for the
mobile media industry (including mobile advertising). The IAB (Interactive Advertising
Bureau) and the Mobile Marketing Association, as well, have established guidelines and
are evangelizing the use of the mobile channel for marketers.
In India, however, government's efforts of creating National Do Not Call Registry have
helped cell phone users to stop SMS advertisements by sending a simple SMS or
calling 1909.
Mobile marketing via SMS has expanded rapidly in Europe and Asia as a new channel
to reach the consumer. SMS initially received negative media coverage in many parts of
Europe for being a new form of spam as some advertisers purchased lists and sent
unsolicited content to consumer's phones; however, as guidelines are put in place by
the mobile operators, SMS has become the most popular branch of the Mobile
Marketing industry with several 100 million advertising SMS sent out every month in
Europe alone.
SMS Marketing services typically run off a short code, but sending text messages to an
email address is another methodology. Short codes are 5 or 6 digit numbers that have
been assigned by all the mobile operators in a given country for the use of brand
campaign and other consumer services. Due to the high price of short codes of $500-
$1000 a month, many small businesses opt to share a short code in order to reduce
monthly costs. The mobile operators vet every short code application before
provisioning and monitor the service to make sure it does not diverge from its original
service description.

Mobile marketing via MMS
MMS mobile marketing can contain a timed slideshow of images, text, audio and video.
This mobile content is delivered via MMS (Multimedia Message Service). Nearly all new
phones produced with a color screen are capable of sending and receiving standard
MMS message. Brands are able to both send (mobile terminated) and receive (mobile
originated) rich content through MMS A2P (application-to-person) mobile networks to
mobile subscribers. In some networks, brands are also able to sponsor messages that
are sent P2P (person-to-person).
Good examples of mobile-originated MMS marketing campaigns are Motorola's ongoing
campaigns at House of Blues venues, where the brand allows the consumer to send
their mobile photos to the LED board in real-time as well as blog their images online.

In-game mobile marketing
There are essentially four major trends in mobile gaming right now: interactive real-time
3D games, massive multi-player games and social networking games. This means a
trend towards more complex and more sophisticated, richer game play. On the other
side, there are the so-called casual games, i.e. games that are very simple and very
easy to play. Most mobile games today are such casual games and this will probably
stay so for quite a while to come.
Brands are now delivering promotional messages within mobile games or sponsoring
entire games to drive consumer engagement. This is known as Ad-funded mobile game.

Mobile web marketing
Advertising on web pages specifically meant for access by mobile devices is also an
option. The Mobile Marketing Association provides a set of guidelines and standards
that give the recommended format of ads, presentation, and metrics used in reporting.
Google, Yahoo, and other major mobile content providers have been selling advertising
placement on their properties for years already as of the time of this writing. Advertising
networks focused on mobile properties and advertisers are also available. Additionally,
web forms on web pages can be used to integrate with mobile texting sources for
reminders about meetings, seminars and other important events that assume users are
not always at their computers.

Mobile marketing via QR codes
QR (or Quick Response) codes have been growing in popularity in Asia and Europe, but
have until 2011 been slow to be adopted in North America.Originally approved as an
ISS standard in 1997 Denso-Wave first developed the standard for tracking automobile
parts in Japan.
Paralleling the rise in smart phone adoption, QR codes have become much more
prevalent in marketing pieces both on and offline
Acting as a visual hyper-link to a page, QR codes make it easy to jump someone to a
mobile optimized offer page and as such, represent a very powerful tool for initiating
consumer engagement at the time when the marketing piece is likely triggering its most
emotional responsethe impulse moment.
Its potential for tracking offline sources and delivering the types of analytics previously
reserved for online tracking makes another powerful reason that marketers are flocking
to QR codes in droves.
Some recent high-profile campaigns include Billboards by Calvin Klein in Times Square,
Starbucks and Lady Gaga teaming up on a QR code driven scavenger hunt and the
recent addition of QR codes for every SKU in Home Depot and Best Buy Stores.
QR codes are an open source technology. Companies specifically offering integrated
marketing solutions are typically merging code generation with tracking features and a
variety of mobile landing page solutions to capture leads make sales and provide more
product information.

Mobile marketing via Bluetooth
The rise of Bluetooth started around 2003 and a few companies in Europe have started
establishing successful businesses. Most of these businesses offer "hotspot" systems
which consist of some kind of content-management system with a Bluetooth distribution
This technology has the advantages that it is permission-based, has higher transfer
speeds and is also a radio-based technology and can therefore not be billed (i.e. is free
of charge). The likely earliest device built for mobile marketing via Bluetooth was the
context tag of the AmbieSense project (2001-2004). More recently Tata Motors
conducted one of the biggest Bluetooth marketing campaigns in India for its brand the
Sumo Grande and more of such activities have happened for brands like Walt Disney
promoting their movie 'High School Musical'.

Location-based services
Location-based services (LBS) are offered by some cell phone networks as a way to
send custom advertising and other information to cell-phone subscribers based on their
current location. The cell-phone service provider gets the location from a GPS chip built
into the phone, or using radiolocation and trilateration based on the signal-strength of
the closest cell-phone towers (for phones without GPS features). In the UK, networks do
not use trilateration; LBS services use a single base station, with a 'radius' of
inaccuracy, to determine a phone's location.

e) 10 Winning Strategies for Mobile Marketing

With the dramatic increase of cell phone and smart phone users around the world, its
pretty safe to say that if you arent using mobile marketing, youre missing out on a huge
potential revenue stream! Heres how to implement a winning mobile marketing strategy
for your casino affiliate business:
Keep it Brief. Whether you decide to deploy an SMS message or create an app to
promote your website, keep in mind that mobile users are on the go. Promotions should
include a sense of urgency, but must be able to be digested and acted upon within a
few minutes.
To QR, or Not to QR? If your company uses any kind of print media, adding QR codes
to your materials is a must to drive mobile user engagement. If your company
advertises exclusively online, skip this strategy.
Offer a Coupon or Incentive. Not exactly ground-breaking stuff, but you should never
underestimate the power of a good deal. If your casino program allows affiliates to offer
discounts as an incentive, be sure your prospects know about it!
Dont Spam. Tests of SMS marketing show the highest conversion rates when
messages are sent 2-3 times per month. Send more than that and youll risk coming
across as a scammer.
Be Consistent. Mobile marketing is most effective when its integrated with other
advertising channels, so be sure that your visual branding and ad copy remain
consistent across your different advertisements.
Test Different Channels. Mobile marketing is a pretty big umbrella term, and you wont
know which type of mobile marketing whether SMS messages, custom apps or
advertisements within apps are most effective for your business until you test them all.
Engage Your Prospects. Ask your ad recipients to check in at a certain location, take a
picture of something specific or film themselves in action in order to complete a
promotion. Getting people involved makes your ad more real and involved, resulting in
higher redemption rates.
Dont Forget Your Call to Action. Mobile marketing messages should encourage the
reader to do something specific, right away. If you arent asking your prospects to
engage immediately, your message will likely be forgotten.
Use a Text to Win Promotion - Encourage your prospects to opt-in to your SMS list
by offering a special promotion or incentive, such as a gift card or free play at an affiliate
casino. This will have to come out of your budget, but itll be worth it if you can monetize
your new subscriber list effectively.
Keep Evolving. Mobile marketing is always changing as new technology is released.
Even a year ago, the advertising platforms that place messages within apps werent
nearly as robust as they are now. So be sure to stay on top of changes in the market in
order to get the greatest possible benefit from your mobile marketing campaign!

Mobile Trend # 1 Smart phones to Overtake Other Mobile by 2012

Of course, more and more users will become initiated into mobile handsets. Not only
will their number of users increase sharply; more types of new smart phones with more
user-friendly capabilities will emerge.
Smartphone units sold worldwide in 2009 will grow 14.5% from 2008 levels, according
to a forecast by Infonetics.
Internet marketers, therefore, should do their best to keep these customers, mostly
young people, on their radar. The same goes for tablets.
Mobile Trend # 2 - Text Messaging Will Rise
Text messaging will rise to a projected 8 trillion SMS in 2012. This is a rise of about a
billion from the 6.9 billion SMS sent in 2011.
This indicates that as long as there are mobile phones, SMS will always be in demand,
along with MMS and instant messaging through the mobile phone. That means more
fertile ground for marketers to experiment with catchy text messages and enticing
Mobile Trend # 3 Social Networking Site Access

Social networking sites will get more exposure on mobile phones. Social networking
reaches far beyond the conventional computer: because our mobile devices are always
with us, it is expected that more than half of social networking will be done on mobile
phones at any time and any place we want.
That means more opportunities for marketers to reach audiences on the social
networking sites when they are using them. Face books official page sites, there are
currently 350 million active users that access Face book on their mobile phones.
Face book use is expected to spread to other parts of the developing countries that
currently have low mobile penetration.
Mobile Trend # 4 Rise in Social Games
More social games in mobile devices will be developed. They can be played anytime,
anywhere, as long as you have a mobile device with you. Which means that companies
smart enough to market with mobile games can achieve prominence in the mobile

Mobile Trend # 5 Location-Based Marketing
Location-based marketing will develop that is, dishing out content based on where the
recipients precisely are. Think of entering a restaurant and then receiving a SMS
offering you some freebies once you order something from them.
Sounds surprising, right? That novel technology can be achieved by Wi-Fi, RFID, and
mobile phone tracking.
Mobile Trend # 6 Increased Mobile spending

There will be a large increase in spending by SMBs on mobile advertising. The $1.6
billion figure garnered last 2010 more than doubled to $3.3 billion in 2011, and 2012 is
predicted to double that enormous figure again.
Mobile Trend # 7 More Video on Smart phones
Videos will become a greater trend in mobile marketing. With so many smart phones
already capable of capturing video, it is time for businesses to look at the bounds of
video marketing beyond YouTube or similar. Videos can now be viewed anywhere,
anytime, at convenience, and companies should poise themselves for it in the following

Mobile Trend # 8 - Mobile Money Transfers

More currency will exchange through mobile phones. 2011 saw $86.1 billion move
around the world in about 141 million exchanges. Thus, it is expected that companies
who offer mobile payment will enhance its capabilities. Mobile banking will also be
rising in developing countries where banks are scarce.
To sum up, the prosperity of 2011 for mobile marketing will carry over to 2012, with
possibly more frontiers to open up.

Attitude of consumers towards mobile marketing:

Customers seeking control over sms marketing:
There have been numerous studies, surveys and analysis regarding consumers view of
SMS marketing and how they respond to messages from advertisers, with most coming
to the conclusion that SMS marketing is always welcomed by consumers as long as its
worth their while.
A new study put out by the DMA (Direct Marketing Association) polled consumers
regarding their view of SMS marketing and found that users request much more control,
as well as a sense of trust from the brands that are reaching out to them. These so-
called unwritten rules of acceptable engagement via mobile was what the DMA was
interested in analyzing.
Gaining a sense of control over what messages are being sent to them, and the overall
integrity and trust shown by the brands are the underlying aspects consumers request,
with over half of respondents feeling that companies didnt make the opt-in process
clear enough, for example. In addition, two-thirds of respondents wanted to choose the
time of day they received mobile marketing messages, while the majority of
respondents didnt even know who had contacted them.
What consumers worry about the most with regards to SMS marketing is the underlying
threat of SMS spam and the mis-conceptions surrounding the practice. While only one-
third of respondents believe that they are increasingly receiving more spam, the report
reveals that people are confused about the financial cost of spam. One-third of
respondents believe that simply receiving a spam message will result in a charge to
their mobile bill, while the same number believe that opening a spam message results in
The report also points to a lack of understanding on dealing with these unwanted
messages. 34 percent would complain to their mobile operator, 39 percent wouldnt
complain at all and 51 per cent would complain directly to the company responsible for
the message. With 68 percent of respondents having received unsolicited messages,
the report suggests a need for mobile operators to become involved in dealing with
Mark Brill, chair of the DMA Mobile Marketing Council, commented: Trust and clarity is
key to developing an effective mobile marketing strategy. Its therefore important to be
explicit about opting in. Customers who have opted in should be quickly contacted with
confirmation of their choices and information on how to opt out. Brands may find that
their reputation is quickly damaged if mobile marketing messages are too frequent, sent
at the wrong time of day, irrelevant or unclear to the user.

SMS (Short Message Service) is a text message service that enables messages of 160
characters to be sent to cell phones. SMS's are stored and forwarded so the message
will be sent later if the phone is not immediately available.
BulkSMS has expanded the capability of SMS by implementing the ability to send
multiple SMS's simply. Whether you want to reach one person or thousands of people,
BulkSMS provides an easy, reliable and cost effective way to keep in contact.
Provided SMS marketing is permission based, with the receiver desiring the message,
SMS offers one of the highest response rates in marketing. Using this resource wisely is
one of the keys to success, as will be discussed later in this guide.
Reaching groups of people on the go used to be difficult if not impossible. Bulk sums
messaging is the only communication medium capable of reaching groups of people
instantaneously regardless of where they are.
SMS provides several advantages over other forms of communication. Research has
shown that SMS has the capacity to access instantaneously a large number of people
with mobile connectivity. Mobile users also show a high probability of reading SMS