CHAPTER 1

INTRODUCTION
1.1

Introduction of marketing and Internet marketing

Marketing is a widely used term to describe the means of communication

between the company and the consumer audience. Marketing is the
adaptation of the commercial activities and use of institutions by the
organizations with a purpose to induce behavioral change on a short-term or
permanent basis. Marketing is the management process through which
goods and services move from concept to the customer. It includes
the coordination of four elements called the 4 P's of marketing:
(1) Identification, selection and development of a product,
(2) Determination of its price,
(3) Selection of a distribution channel to reach the customer's place, and
(4) Development and implementation of a promotional strategy.
Marketing refers to the process through which businesses and organizations
promote themselves and their products by communication with potential
customers. Marketing includes all types of advertising, ranging from websites
and television commercials to print and outdoor advertising. Businesses
spend huge sums of money on marketing to improve their sales, but
marketing also benefits society as a whole in several key ways. Marketing is
the advertising of product to new customers and used customers. Marketing
is necessary for each and every aspects of society. Through marketing
people can get knowledge of what they want and what they have in market.
Society are highly beneficial by marketing it provides employment to people
and raise people living standards. It utilizes the natural resources available
and create utilities.
Informing Consumers
One of the ways in which marketing benefits society is by informing and
educating consumers. Marketing often has a persuasive intent, but it
generally begins when a company identifies a customer need and seeks to
explain how its products or services meet that need. For customers with
clearly defined needs, marketing provides a means of learning about new
products and what they do. Marketing can also include more practical
information to assist in making a purchase, such as addresses, phone
numbers, product release dates, store hours and Web addresses.

Managing Consumer Expectations

Besides providing consumers with useful information about products and
services, marketing can also help set and manage customer expectations.
Consumers rely on trusted brands and the consistency that comes from
brand loyalty. They also use information from consumer advocacy groups to
learn about which brands are most reliable and represent the best values.
Businesses use marketing to make consumers aware of major changes, such
as mergers and transfers in ownership that affect product offerings or seek
to improve quality. Government regulations prevent marketers from making
false or misleading claims. This allows consumers to make informed
decisions without as many risks as they would face if they had to buy without
the benefit of marketing.
Economic Benefit
Marketing drives a consumer economy, promoting goods and services and
targeting consumers most likely to become buyers. Higher sales for a
business that employs successful marketing strategies translate into
expansion, job creation, higher tax revenue for governments and, eventually,
overall economic growth. In addition, the marketing industry itself creates
jobs and wealth as businesses seek new and innovative ways to promote
themselves and their products. Consumer demand for marketing in new
venues, such as cellphones, creates new branches of the marketing industry
and furthers growth.
Modeling Behavior
Marketers work to understand consumer behavior and produce advertising
that is most likely to influence it. This provides a place for behavioral
researchers and economic analysts to model consumer behavior. By
examining marketing data and its correlation to consumer behavior, analysts
can learn about how and why people make the decisions they do. This is
useful in crafting awareness campaigns for major public and social issues. It
also serves to advance the fields of behavioral psychology and economic
forecasting.
There are many ways people can advertise their products in huge mass
community. Most of the used method are use of mass communication media
like TV, radio, newspapers, poster. Among widely used method are yellow
pages and ad. Nowadays internet marketing is been used mostly as the form
of marketing. It uses latest technology to reach to new users from different
group of people to one common place. The internet has transformed
business marketing. No matter what we do, the internet is likely to be at the
heart of our marketing strategy. There has, of course, been a rapid rise in the

number of ecommerce enterprises selling goods online. Some operate solely

in the online sphere. Many others are bricks and mortar businesses that are
also offering products and services via their websites. But many other
business models are using the internet to promote their business via
websites, blogs, email, social media sites like Twitter and networking sites
like LinkedIn. What's more, internet marketing enables us to carry out
marketing activities that range from market research to improving customer
service.
Internet marketing, or online marketing, refers to advertising and
marketing efforts that use the Web and email to drive direct sales via
electronic commerce, in addition to sales leads from Web sites or emails.
Internet marketing, or online marketing, refers to advertising and marketing
efforts that use the Web and email to drive direct sales via electronic
commerce, in addition to sales leads from Web sites or emails. Internet
marketing and online advertising efforts are typically used in conjunction
with traditional types of advertising such as radio, television, newspapers
and magazines. Internet marketing is an umbrella term for the targeted,
measurable, and interactive marketing of products or services using Internet
technologies to reach and convert leads into customers and retain them. The
key objective is to promote brands, build preference and increase sales
through various Internet marketing techniques. It is embodied by an
extensive selection of service, product and brand marketing tactics, which
mainly use the Internet as a core promotional medium, in addition to mobile
and traditional TV and radio.
Internet marketing can also be broken down into more specialized areas such
as Web marketing, email marketing and media marketing:
1) Web marketing includes e-commerce Web sites, affiliate marketing Web
sites, promotional or informative Web sites, online advertising on search
engines, and organic search engine results via search engine optimization
(SEO).
2) Email marketing involves both advertising and promotional marketing
efforts via e-mail messages to current and prospective customers.
3) Social media marketing involves both advertising and marketing
(including viral marketing) efforts via social networking sites like Facebook,
Twitter, YouTube and Digg.

1.1.1 History of internet marketing

Its been 20 years this month since the first online advert was sold and, like
a lot of technological journeys, its a fascinating look at how far weve come.
Anyone who wants to remember what public opinion was of the World Wide
Web and the Internet back in 1993 need look no further than this
documentary piece which spoke of the growing phenomenon of Internet.
The first online ad was sold by Global Network Navigator (GNN), a company
formed as a subsidy of OReilly Media, to a Silicon Valley law firm. This
started the ball rolling for a huge revenue opportunity although it very
nearly didnt happen. In the embryonic, utopian days of the web, advertising
was a no-go, if we take into account NSFNETs T&Cs which state that use for
commercial activities by for-profit institutions is generally not acceptable.
Whilst the momentum kept building up, GNN died rather suddenly, having
been bought by AOL in June 1995 before being shut down a year later.
In July 1996 first pay per click is launched by planet oasis. In 1998
GoTo.com (now Yahoo.com) holds the first search advertising keyword
auction. In October 2000 google launches AdWords. In 2002 there were
estimated 558 million internet users worldwide. After 2 years of launching of
Facebook, in 2006 Facebook launches advertisement in their Facebook
pages. In September 2007 AdSense for mobile is launched. Then in
September 2009 internet advertisements outnumber television
advertisements for the first time in history. In April 2010 twitter launches
promotional tweets. In January 2012 Facebook enables advertisements within
news feed. In 2012 there were 1.2 billion internet users worldwide which the
number of just 19 years earlier was 75 times.

1.1.2 Objectives of Internet marketing

The main objectives to change business from traditional marketing to
internet marketing are:
Convenience
Internet marketing enables us to be open for business around the clock
without worrying about store opening hours or overtime payments for staff.
Offering our products on the Internet is also convenient for customers. They
can browse our online store at any time and place orders when it is
convenient for them.
Reach
By marketing on the Internet, we can overcome barriers of distance. We can
sell goods in any part of the country without setting up local outlets,
widening our target market. We can also build an export business without
opening a network of distributors in different countries. However, if we want
to sell internationally, we should use localization services to ensure that our
products are suitable for local markets and comply with local business
regulations. Localization services include translation and product
modification to reflect local market differences. Internet marketing is
important because it aligns with the way consumers make purchasing
decisions. Studies by analysts such as Gartner indicate that increasing
numbers of consumers use social media and research on mobile Internet to
carry out preliminary product and price research before making final
decisions. Internet marketing enables us to build relations with customers
and prospects through regular, low-cost personalized communication,
reflecting the move away from mass marketing.
Convenience

Internet marketing enables us to be open for business around the clock

without worrying about store opening hours or overtime payments for staff.
Offering products on the Internet is also convenient for customers. They can
browse our online store at any time and place orders when it is convenient
for them.
Reach
By marketing on the Internet, we can overcome barriers of distance. We can
sell goods in any part of the country without setting up local outlets,
widening our target market. We can also build an export business without
opening a network of distributors in different countries. However, if we want
to sell internationally, we should use localization services to ensure that
products are suitable for local markets and comply with local business
regulations. Localization services include translation and product
modification to reflect local market differences.
Cost
Marketing products on the Internet costs less than marketing them through a
physical retail outlet. We do not have the recurring costs of property rental
and maintenance. We do not have to purchase stock for display in a store.
We can order stock in line with demand, keeping wer inventory costs low.

Personalization
Internet marketing enables us to personalize offers to customers by building
a profile of their purchasing history and preferences. By tracking the web
pages and product information that prospects visit, we can make targeted
offers that reflect their interests. The information available from tracking
website visits also provides data for planning cross-selling campaigns so that
we can increase the value of sales by customer.
Relationships
The Internet provides an important platform for building relationships with
customers and increasing customer retention levels. When a customer has
purchased a product from wer online store, we can begin the relationship by
sending a follow-up email to confirm the transaction and thank the customer.
Emailing customers regularly with special, personalized offers helps to
maintain the relationship. We can also invite customers to submit product
reviews on our website, helping to build a sense of community.

Social
Internet marketing enables us to take advantage of the growing importance
of social media. An article on the Harvard Business School Executive
Education website highlighted the link between social networking and online
revenue growth. According to the article, a group of consumers that
responded most strongly to the influence of social networks generated
increased sales of around 5 percent. We can take advantage of this type of
influence by incorporating social networking tools in our Internet marketing
campaigns.

1.2 Objectives of the study

As we know that internet is growing day by day and hence its influence to
people and society. Rapid growth of use of internet is helping to convert
every aspect of society to go into global internet village. Every parts of our
society is converting into internet means. Nowadays people uses internet for
various purposes. From reading newspaper to calling to friends people use
internet. It has convert our basic task into internet uses.
Marketing aspect is no exception to this. Internet has convert our traditional
uses of marketing to internet marketing. We can see google AdSense or
Facebook advertisement in internet daily. We have ecommerce sites to sell
and buy our necessary product online. We can view whats new on market by
using our smartphones and laptop. We can browse various menu to order

products. We can sell our product online. We can advertise our business in
global village of internet which helps our business to grow rapidly. Our big
market of world has convert into small market through internet.
Hence internet marketing has become a hot boiling topic for every business
people and members of society. Every members of society is related to
internet marketing directly or indirectly. So I chose this subject for my report
writing. As we are the future generation we should not bound ourselves in
traditional thinking and doing. We should cooperates with whats new on
technology and be familiar with them. We should not fall behind when the
other parts of world is running ahead into modernization. As we westernize
ourselves by following western culture we think we are modernizing
ourselves but modernization comes from thinking whats best for us but not
blind follow of what other side of people are doing. We should not conceal
our minds into traditional ways. We need to broaden our minds and view the
world into new horizon. Then we can progress ourselves and develop our
society.
Hence I felt this topic as right topic to my report writing as this helps us to
understand what new on technology. This topic helps me to understand what
is internet marketing, its various aspect and its affect to society.

1.3 Significance of internet marketing

The advantages of internet marketing are as follows:

One third of businesses are planning to introduce a Digital

Transformation programme and one third already have (Source: Smart
Insights and TFM&A)

Content marketing in 2015 generates 3 times as many leads as

traditional outbound marketing, but costs 62% less. (Source: HubSpot)

Content creation and management now claim the second-largest share

of digital marketing budgets. (Source: KaPost)

On average, 60% of a marketers' time is devoted to digital marketing

activities, fuelling demand for digital marketing skills (Source: Smart
Insights and Ecommerce Expo)

28% of marketers have reduced their advertising budget to fund more

digital marketing. (Source: CMO Council)

73% of B2B marketers use video as a content marketing tactic, and 7%

of marketers plan on increasing their YouTube marketing.

71% of companies planned to increase their digital marketing budgets

this year (Source: Webbiquity)

78% of companies now say they have dedicated social media teams in
2015, up from 67% in 2012 (Source: iScoop)

1.4 limitation of internet marketing

As the proverb goes every coins has two side internet marketing too
has its disadvantages.

50% of companies are using digital marketing, but they don't have a
plan! (Source: Smart Insights and TFM&A)

62% of companies did not agree with the statement we have the
analysts we need to make sense of our data whilst 63% did not agree
with the statement we have a good infrastructure in place to collect
the data we need. (Source: Adobe/Econsultancy)

Nearly three quarters (71%) of businesses creating more content in

2015 compared to 2014, but only 12% feeling they have an optimized
content marketing strategy. Quality is still a challenge with 68% still
rating their content marketing as basic or
inconsistent (Source: HubSpot and Smart Insights)

70% of marketers were not confident in their companies ability to

measure the return on mobile ad spend. (Source: Adobe/Econsultancy)

52% of Americans think that most online shopping sites need

improvement, whilst 79% of Brazilians and 87% of Chinese people
think this.(Source: Adobe/Econsultancy)

83% of consumers reported that they have had a "bad experience with
social media marketing". (Source: Webbiquity.com)

The top three social networks used by B2B marketers are LinkedIn
(91%); Twitter (85%); and Facebook (81%). However, just 62% of
marketers say that LinkedIn is effective, while 50% say the same for
Twitter and only 30% of B2B marketers view Facebook as effective.
December 2014 (Source: CMO Council)

Only 8% of companies have an email marketing team, despite the fact

it is often rated as the platform the delivers the highest ROI of any
digital marketing tactic. (Source)

Almost half 48%of all emails are opened on mobile devices. Yet 39%
of marketers say they have no strategy for mobile email, and only 11%
of emails are optimized for mobile (Source)

1.5 Research methodology

1.5.1 Definition of research methodology
A descriptive and analytical research has been applied to fulfill the
requirement of the study is research methodology. Data have been
interpreted through field observation use of statistical tools.

1.5.2 Research design

1.5.2.1 This analytical case study of internet marketing is based
on secondary data as well as primary data
1.5.2.2 Secondary source of data include some publication from
internet sources
1.5.2.3 Primary source of data includes interview with concerned
personal
1.5.2.4 Data are collected from secondary as well as primary
sources and complied presented in the form of tables, bar
diagram and graph.

1.5.3 Sources of data

a) Primary data
Primary data is that data that is usually collected by investor.
Primary research consists of a collection of original primary data
collected by the researcher. It is often undertaken after the
researcher has gained some insight into the issue by reviewing
secondary research or by analyzing previously collected primary
data.

b) Secondary data
Secondary data is the data which is already collected and used
by someone. Secondary data are the data used by but for some
other purposes. Secondary data can be obtained from either
private or public sources directly. The advantages of secondary
data are that they dont require much time to collect. However it

has disadvantages such as the data may not fit exactly as prerequirement for the research problem.

1.5.4 Tools and techniques

a)
b)
c)
d)

Simple bar diagram

Multiple bar diagram
Pie-chart
tables

Chapter 2
PRESENTATION AND ANALYSIS OF DATA
Nowadays most of business houses uses internet to advertise their
product through internet. People can use different medium to advertise
in internet. People can use banner ad, google advertisement, make
digital videos and can use many websites like Facebook to advertize
their products.
Research shows that people use frequently email video social media
websites and search engine optimization for digital marketing.

internet marketing

5%

5% 5%

20%

5%
10%

15%

10%
10%

15%

email

SEO

VIDEO

PPC

Mobile

social

content

games

crowdfund

cause

Fig 2.1: diversified internet marketing

In this figure to advertise people use email 20% more than other. SEO
and video are used 15% equally for internet marketing. Pay Per
Click,mobile, and social media are used 10% each for advertisment.
Content advertize, games, crowdfund and causes are used 5% each in
digital marketing
People uses advertizement for advertize their product online.
Advertisment is powerful ways to reach new customers.
Search engine is one of the effective ways to search for new products.
People can know new item launched or information about their desired
product through search engine easily. 44% of online shoppers begin by
using a search engine. 86% of consumers stated that using a search
engine allowed them to learn something new or important that helped
him/her increase his/her knowledge. SEO leads have a 14.6% close
rate, while outbound leads (such as direct mail or print advertising)
have a 1.7% close rate.
According to research done people uses google more than other search
engine to search globally.

search engine used

other ; 2%
baidu; 17%

bing; 6%

yahoo; 6%

google; 69%

google

yahoo

bing

baidu

other

Fig 2.2: search engine used globally

In this pie chart it shows that google is most used search engine
outnumbered others by 69%. It is most effective search engine for
searching and internet marekting.
Since it is about internet marketing we need to consider about interent
users too. The number of interent users are growing day by day.
According to research one of three people stay online in developing
countries. Many people have internet access through mobile, laptops,
computers. Almost 3 billions people are using internet that is 40% of
population. Two third of world internet users are from developing
countries.

Fig 2.3: Internet users through-out the history

After all this looking we also need to consider that there are many
steps in organizing and maintaining internet marketing. It is not a easy
step but rather takes a lot of step to finish it. Many steps are followed
one after another to make internet marketing successful. From
mainting web pages to online research internet marketing is
conducted. We need to budget ourselves ahead before going into
internet marketing. Various cost are estimated for differnet purposes in
internet marketing. Pie-chart below shows the internet marketing
budgeting.

Internet marketing budgeting

2%
15%

16%

68%

maintaining a web presence

online public relations

online marketing support

online consulting and research

Fig 2.4: Internet marketing budgeting

In this pie-chart, it shows that maintaining a web presence cost more than
any other budgeting. When someone searches for the product of certain
company it needs to show first than any other companies. For creating
online public relationship it needs 16% more budget than rest of others.
Hence one need to plan ahead and think carefully before he launches his
company online and globally access through Internet. Research shows
that we need to consider each and every aspect carefully before going
online. This research is helpful to those who are willing to go online and
advertise their product in Internet market place.

CHAPTER-3
SUMMARY, CONCLUSION AND RECOMMENDATION
3.1 Summary
Nowadays many business are converting into internet marketing and they
are profited by them. People are starting to make websites for their
company. There are blogs, Facebook pages, twitter account and LinkedIn
account for business companies. Anyone can easily can access knowledge
about certain company through internet. By liking the Facebook pages of
certain companies people can gain information about new products and
their services.
There are many ecommerce websites which are dedicated for buying and
selling products. They may sell used or new products to their customers.
EBay, amazon, kaymu are some of ecommerce websites for the purposes
of selling and buying goods, products and services. People can book
airplanes ticket, bus tickets and reserve hotels through online. Internet
users can browse books, read books or buy/download books through
internet. Everything we can do on our local markets can be done through
online markets. We can get various types of products and services
through internet. By sitting in one chair we can view whats new on
products and order them online if we like. We dont have to go markets to
buy any products. By using internet we can do shopping in single click.
There are many ways we can advertise our products in internet. We can
make websites and create Facebook pages. We can send email to internet
users about our products. By using social media websites we can reach
more consumers globally and get recognized easily. We can make digital
video that can be uploaded in video streaming websites like YouTube.
Google provides google AdSense that helps us to display our products in
many websites. Banner ad are one of the effective means for marketing
our websites online. We can use search engines to display our products in
top list so that many people can visit our websites.
So there is no limit to advertise our product in global internet community.
We can use multiple option to advertise our product. It is better to use
latest technology to make ourselves fast-forward than to use traditional
marketing method to fall behind our competitors. Using internet
marketing we can be one step ahead than other competitors. Hence we
should not hesitate ourselves for using internet to advertise our products.

3.2 Conclusion
This project accomplish the following points:
1. Internet marketing is beneficial from small-scale company to largescale companies.
2. Internet marketing helps people to reach more consumers
3. Consumers can also be benefited by internet marketing by easy
access to new products and services
4. Both buyer and seller can save huge amount of time by internet
marketing.
5. It helps company to be one step ahead of competitors.

3.3 Recommendation
This projects recommends following points:
1. It is better to any company to go online than to use traditional way
of marketing their products.
2. By proper analyses of budget, products, necessity and time one can
choose right way of internet marketing.
3. By analyzing the targeted consumers people of business house can
use different facilities provided by internet marketing.
4. Internet marketing will someday overcome traditional marketing
method. So it is better for any company to use latest technology.
5. To save time, efforts, cost internet marketing is better than
traditional marketing.

BIBLIOGRAPHY
A. BOOKS

KHADKA, SHERJUNG ,(2013) ELEMENT OF

MARKETING, KATHMANDU, ASIA PUBLICATION

AGRAWAL, GOVINDA RAM(2005) PROJECT

MANAGEMENT IN NEPAL, KATHMANDU, M.K.
PUBLICATION

B. OTHERS(INTERNET SOURCES)

http://www.pewinternet.org/fact-sheets/socialnetworking-fact-sheet/
Viewed at
10:25am 15/1/2016

http://www.hubspot.com/marketing-statistics
viewed at 10:30am 2/2/2016

http://www.cmocouncil.org/facts-statscategories.php?category=internet-marketing viewed
at 2:45pm 12/2/2016

http://www.smartinsights.com/internet-marketingstatistics/2015-digital-marketing-stats-the-good-thebad-and-the-intriguing/
viewed at 2:00pm
12/2/2016