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INTRODUCTION

EVOLUTION OF MARKETING

MARKETING

1. The act of buying or selling in a market.

2. The total of activities involved in the transfer of goods from the producer or seller to
theconsumer or buyer, including advertising, shipping, storing, and selling.

At the beginning of the century, social life was mostly local. It was followed by a
period inwhich commodities were produced on a mass scale. Consumer Marketing
operated on massmarketing principles and business primarily concerned itself with how
to build the best salesforce. At the end of the century, there is an emerging global culture.
The major driver ofthesechanges is technology. Technological change has moved steadily
back focusing onthe individual. These changes shape the possibility and conduct of
business. Marketing is especially tied to communication and transportation revolution. As
the tools and reach of marketing increase, the job and responsibilities of marketers have
evolved with them. PhilipKotler formalized this evolution with his book "Marketing
Management". His key stages areproduction, sales and brand management. Each of these
is strongly motivated by technological opportunities, which permit new methods and new
opportunities. A fourth stage, a focus on the individual customer, is also important. As the
new technology of the Internet develops, it reinforces the new marketing emphasis which
in many ways is a returnto business at the turn of the century.
In today’s technology driven world, a new fast paced digital economy is
emerging. Tomorrow there will be companies that will exist only inside computer
networks. Most business
Transactions will be made electronically, directly from the producer to the consumer,

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By passing the supply chain. In the digital marketing environment, the consumer
becomes an
Integral player in the development of the product. In fact, a consumer might build the
product
himself from a wide array of parts provided by the Company. It is e-commerce that is
changing the way products and services are conceived, manufactured, promoted, priced,
distributed and sold. The reason being that it is much cheaper; it allows vast coverage and
helps in serving the customer better.
ADVERTISING
1.the act or practice of calling public attention to one's product, service, need, etc., esp. by
Paid announcements in newspapers and magazines, over radio or television, on
billboards,
etc.: to get more customers by advertising.
2. paid announcements; advertisements.
3. the profession of planning, designing, and writing advertisements.
Advertising is a paid form of communication, although some forms of advertising, such
aspublic service announcements, use donated space and time. Second, not only is the
message paid for, but the sponsor is identified. Third, most advertising tries to persuade
orinfluence the consumer to do something, although in some cases the point of the
message issimply to make consumers aware of the product or company
Fourth and fifth, the message is conveyed through many different kinds of mass media
reaching a large audience of potential consumers. Finally, because advertising is a form
ofmass communication, it also non-personal

Functions of Advertising

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Advertising is an important promotional tool for any marketing campaign. So
much so thatwhenever we think of marketing we think of advertising although it is just
one of themarketing tools. Till now only companies with a profit motive went in for
advertising. Buttoday government bodies as well as non-governmental organizations
(NGOs) go for highprofile advertising campaigns. The purpose here is not to increase the
sales figure but toincrease the awareness of people regarding the relevant topics.Even
though each ad or campaign tries to accomplish goals unique to its sponsor,advertising
performs three basic functions:

1. Provide product or brand information

Although many ads are devoid of information, providing the consumer with
relevantinformation that will aid decision making is still the main function of advertising.
Theinformation given depends on the needs of the target audience. In the case
ofpurchasing a new suit, needed information might simply include price and
outletlocation.For technical products, the information is likely to be very detailed.

2. Provide incentives to take decision

In most instances, consumers are reluctant to change established behavior. Even if
thereare somewhat dissatisfied with the current product or service, a habit has been
established and learning about a new product is deemed difficult. Advertising provides
the consumer with reasons to switch brands by presenting reasons through copy or
graphics. Convenience, high quality, lower price, warranties, or a celebrity endorser are
all possibilities.

3. Provide reminders and reinforcement

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It’s amazing how much advertising is directed at current customers. Consumers
Forget why they bought a particular brand of microwave or automobile. Advertising must
remindthe customer constantly about the name of the brand, its benefits, its value, and so
forth.These same messages help reinforce the customers decision. Most television
advertising seems to provide this function.

Types of Advertising

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kiosks. and also several events and 6 . Outdoor Advertising: Billboards. 1. Advertising is a form of selling. Advertising can be classified in number ofways. The most common examples of outdoor advertising are billboards. which makes use ofseveral tools and techniques to attract the customers outdoors. Print Advertising: Newspapers. 2. In addition to this. Tradeshows and Events (OOH) Outdoor advertising is also a very popular form of advertising. Advertising productsvia newspapers or magazines is a common practice. Advertisers must be aware of the factors that influence people's buying habits and then useadvertising strategies based on this knowledge. the print mediaalso offers options like promotional brochures and fliers for advertising purposes. Magazines. Brochures. It tries to make consumers buy goods or services. Kiosks. Fliers The print media have always been a popular advertising medium.

Broadcast advertising: Television. radio or the Internet.tradeshows organized by the company. the company can organize several events that are closely associated with their field. The company can organize trade fairs. If not this. 3. The billboard advertising is very popular however has to be really terse and catchy in order to grab the attention of the passersby. The radio might have lost its charm owingto the new age media however the radio remains to be the choice of small scaleadvertisers. 7 . or even exhibitions for advertising their products. The kiosks not only provide an easy outlet for the company products but also make for an effective advertising tool to promote the company’s products. Organizing several events or sponsoring them makes for an excellent advertising opportunity. Television advertisements have been verypopular ever since they have been introduced. Radio and the Internet Broadcast advertising is a very popular advertising medium that constitutes of severalbranches like television.

5. Surrogate Advertising: Advertising Indirectly Surrogate advertising is prominently seen in cases where advertising a particular productis banned by law. which are often seen to promote their brand with the help of surrogate advertising. Common examples include Fosters and Kingfisher beer brands. Celebrity Advertising 8 . television showsor even sports. Advertisement for products like cigarettes or alcohol which are injurious to heath are prohibited by law in several countries and hence these companies have to come up with several other products that might have the same brand name and indirectly remind people of the cigarettes or beer bottles of the same brand. There is no commercial in the entertainment but the brand or the productis subtly (or sometimes evidently) showcased in the entertainment show.4. 6. Covert Advertising: Advertising in Movies Covert advertising is a unique kind of advertising in which a product or a particular brandis incorporated in some entertainment and media channels like movies.

televisionads or even print advertisements. thereexist a section of advertisers that still bank upon celebrities and their popularity foradvertising their products. Although the audience is getting smarter and smarter and the modern dayconsumergetting immune to the exaggerated claims made in a majority of advertisements. 9 . which consist of all sorts of advertising including. Using celebrities for advertising involves signing up celebritiesfor advertising campaigns.

Thus. Internet marketing.THE ADVERTISING OF THE INTERNET MARKETING The new millennium has brought us on the brink of the I. Internet is fast changing the waypeople used to do things. including design. This revolution hasbeen aided by the advent of the Internet in a big way. Internet marketing ties together creativeand technical aspects of the Internet. advertising. both in terms of providing instant response and eliciting responses. online marketing. the same would have an impact on the advertisers. however. Internet marketing also includes management of digital customer data andelectronic customer relationship management (ECRM) systems. advertising equations are fast changing. Revolution. one of which being lower costsfor the distribution of information and media to a global audience. also referred to as web marketing. and sale. isthemarketing of products or services over the Internet. TheInternet has been accepted as the most powerful media for advertising due to the absenceof geographical barriers. Naturally. is aunique quality of the medium. development. Internet marketing is sometimes considered to have a broaderscope because it not only refers to digital media such as the Internet. The advent of the Internet and its subsequent acceptance has onceagain challenged the traditional forms of advertising.The Internet has brought many unique benefits to marketing. The interactive nature ofInternet marketing. 10 . and wirelessmedia. or eMarketing. e-mail. Advertisers are trying to use the 'net' toadvertise their products and hence 'net' their customers.T. with the Internet gainingprominence.

but things have changed on the Internet. Content and software are two avatars of digitized products that can be even distributed over the Internet. and the user experiences it electronically.Product. zoom in or zoom out and even visualize the product in different configurations and combination. the company will have to provide nouvelle and distinct products that forces 11 . Product Product on the Internet usually changes form online. Technology allows the user to virtually touch and feel the product on the Internet .rotate it. Place and Promotion have long been associated with marketing. So along with a change in the nature ofthe four P’s there are three new P’s which are relevant to the internet marketer: Presentation. To be able to attract the customers and retain them. On the Internet. Price. images and multimedia.7 P'S OF INTERNET MARKETING The four P's . E-marketing will be based more on the product qualities rather than on the price. It will rather be on the uniqueness of the product. Processes and Personalization. in the form of text. Every company will be able to bring down the cost of its products and hence competition will not be on price. 1. Physical goods are usually presented in the form of a detailed online catalogue that the customer can browse through.

Itleads to best possible deal for the buyers in terms of price. outdoor advertising and television can be used to spread awareness. There can be traded links or banner advertisements for the same.the net users to purchase and come back for more. Also the traditional mediums like print. Promotion Promotion is extremely necessary to entice the customer to its website. 4. Online strategies include search engine optimization. banner ads. 12 . It lets the buyer decides the price. Place Place revolves around setting up of a marketing channel to reach the customer. multiple points of entry. Price Price has been drastically changed over the Internet. Promoting a website includes both online andoffline strategies. as there arecurrently more than one billion web pages.Also it gives the buyers information about multiple sellers selling the same product. strategic partnership and affiliate marketing. 3. For the customers to know of the Company’s existence and to garner information on the kind of products or services that the company is offering. promotion has to be carried out. 2. viral marketing. the cyberspace is already cluttered with thousands of sites probably selling similar products. Pricing is dynamic over the Internet. The elimination of the intermediate channel allows the producer to pass thereduced distribution cost to the customer in the form of discounts. Presently. Internetserves as a direct marketing channel that allows the producer to reach the customerdirectly.

About 80% of the people read only 20% of the web page. 13 . To further enhance after sales service. Also. A customized web page does not only include the preferred layout of the customer but also a pre selection of goods the customer may be interested in. Therefore. A sales service that will be able to answer the questions of their customers fast and in a reliable manner is necessary. without any additional costs. Personalization Using the latest software it is possible to customize the entire web site for every single user. 6. Presentation The presentation of the online business needs to have an easy to use navigation. Processes Customer supports needs to be integrated into the online web site.5. customers must be able to find out about their order status after the sale has been made. 7. The mass customization allows the company to create web pages products and services that suit the requirement of the user. simple but powerful navigational aids on all web pages like search engines make it easy for customer to find their way around. the web page should not be cluttered with a lot of information. Thelook and the feel of the web site should be based on corporate logos and standards.

14 . advantage. Customization will only betruly effective if we understand our customers and their true needs. the marketer needs to understandthe characteristics of the online customers.UNDERSTANDING THE INTERNET CUSTOMERS Now to be able to use the seven P’s effectively in order to achieve the predefined goals ofany organization it is imperative to understand the customers. timely and relevant informationabout the products and services being offered. insight or even a pleasant surprise.Before adapting marketing practices to the Internet. The Net users can be classified into fivecategories depending upon their intention of using the Internet. _ UNDIRECTED INFORMATION SEEKERS: These users require something interesting and useful. Something that can give them an edge. The five categories ofusers are: _ Directed Information Seekers: They require specific.

higher discounts etc.now. They are sure what they require and just log on to the Web to purchase the item.BARGAIN HUNTERS: They are of two kinds: One who look for free items on the internet and other who are seeking better deals. _ Directed Buyers: They want to buy something . 15 . _ Entertainment Seekers: They see the Web as an entertainment medium of vast breath and potential and want to explore the medium before the mass gets there.

The sevenP’s of internet marketing mentioned earlier not only have to try and make businesssuccessful but also do brand building in the process. The Evolving Value Propositions The value propositions of goods and services offered in the physical world differ pointedlyfrom those in the digital world. ascustomers want them to be and provide a high level of reliability.g. The ultimate aim of the universal marketer is to provide acomplete end-to-end consumer experience .dell. their web site is their most important brand.BRAND BUILDING ON THE INTERNET For the Company on the cyberspace. excellent quality. The customizationhighlights the value-for- money aspect and induces the consumer to buy a product that meetshis own requirement. andlonger life spans. For e.com) has become a leading company inselling computers because of the customization facility it provided on its site. The consumerscould build the own computer by ordering the own configuration. ‘Dell’ computer (www.do something – whether it’sconfiguring a computer system onlineor offering personalized services like suburban railway pass ticket in MumbaiConsumer demand and expectations are forecast to drive made-to-orderor customized Product and service customizationCompanies that have powerful brand awareness on the web all have sites that helpconsumersproducts with rapidly shrinking lead times.right from the promise to satisfy his 16 . Products are configured.

But if the same experience were to occur to him atthecompany’s web site. The last few years have seen a flurry of suggested business models for doingbusiness in the Internet era.space and memory. The physical world is not able to deliver these benefits becauseof gaps in time. for instance. A credit card.need to itsdelivery.book referrals at no extra cost or e-mailreminders. The Evolving Risk Profiles The on-line customer is not a fickle customer. But today’s consumers are alsolooking for process and relationship benefit . but he is a risky proposition never the less. Dell uses a Choice board system to sell itscomputers but there are others like Point. allows consumerstosatisfy the immediate necessity of setting a transaction.Choice boards are essentially design tools and conduits of information. he will punish the store. If consumer buys a product from a retailer and is involved in an unhappy purchase experience at the store. The market information 17 . The Evolving Supply Chain The transformation being brought about the Web revolution is not limited to just theconsumer. where consumers seek out vendors rather than the other wayaround”) by giving the company the ownership and control over all interactions with theconsumer. on the other hand provides all of these and more (“reversemarketing.com that uses a Choice board to help customersresearch and buy wireless phones and accessories.the Choice board system 2 and the Vertical Portal. The web. But the physical world offers only “Point Solutions” which is basically a solution ofhis needs in terms of functional benefits. companiesthatproduce the products need not control them. for example. This is because all his online experience will influence consumer perceptions about the brand. Will the Internet era signal the death of the retailer? Or will new intermediary come into existence? Technological innovations have madepossibletwointeresting developments . the consequences would be disastrous for the company if he were toshare his experience though different user communities using a combination of chat roomsand electronic mails.

Balance your online media mix. 18 . and locale.  Be consistent in your messaging as people look for consistency in a brand. there are plenty of tools out there that can help you identify your target audience. marital status. household income. speak with your audience—not at them—as people respond better to a conversation that relates to them and engages them. Tools such as these allow you to learn more about your audience. But in doing so. Based on your research. Give your brand a voice. determine what your audience wants to hear and what message you want to put forward. The sophistication and rangeof information collected on customer preferences will drive emergent business models. Research your audience. including products from comScore. Google and Compete. including gender. keep the following in mind:  Have an open mind and consider all ideas (imagine Geico‘s reaction when its creative team first suggested using a lizard as their brand voice). especially before you begin creating content strategies and communication plans. Nielsen.  When creating content.that a Choiceboard collects about customer preferences is absolutely enormous and if the manufacturingcompany does not control it. and provide customized information and promote onlinecommunity development are the next emergent intermediaries.Vertical portals armed with sophisticated search engines. the site offering the Choice board can emerge as a powerfulintermediary. The Web will thus facilitate the transformation of the companies form transaction supporterstocustomer relationship manager five key strategies to consider before launching your online branding efforts. To build your brand online. This will form the foundation for your brand’s voice. which specialize in a particularindustry or product category. you must first have a clear understanding of your audience. Fortunately. age.

What do you want your brand to say or do online? What types of interactions do you want your consumers to have with your business? Is Facebook right for you? Twitter? You may not have all of the answers at this point. Overall. Next. Build up your reputation online. you allow consumers to continually recognize and recall your brand. Work to build your brand through multiple channels. make sure that your brand name and messaging is consistent in your title tags and in your meta descriptions. If no one is. it’s a conversation leading to interaction. but a little research should help you understand where your audience is and how to interact with them. Doing so will not only help build links pointing back to your website. not a means to force a message on consumers. In addition. site specific targeting and re-messaging. be sure to leverage any existing offline partnerships you have in order to grow your reputation online. Building your reputation online is similar to a networking breakfast. be sure that your messaging is consistent with your brand voice throughout your various channels. and get your ads out in front of your target audience using behavioral targeting. For instance. First. From an organic search perspective. Plan your social media integration. the stronger your reputation will grow online 19 . Your brand will be on the path to grow in popularity online in no time if you remember to treat social media as a conversation. then start the conversation. including paid search. But remember. you need to identify the tactics you’ll use in the process. Start by listening and seeing who is talking about your brand. but it’s not as easy and it takes more time. but it can also enhance your organic search presence. Use display and content networks to build your brand through repetition. it’s important to have a clearly defined strategy for reaching your audience. By creating consistent messaging throughout the buying cycle. This will make you the clear choice when customers are ready to make a purchase. the more prevalent your brand becomes in the mind of your reputable peers.

Attracting the Right Customer Attracting the Right Customer is the first crucial step. Thepower of customer referrals has never been so enormous. Content has to be very target specific. Not only do referred customers cost less to acquire than those 20 . Here again it is important to note that the majority of online customers are notseeking the lowest price. Rather they are seeking convenience above everything else. since word of the mouse spreadsfaster than word of the mouth. E-Bay attracts more than half of its customersthroughreferrals. it would be foolish to cater to the whole spectrum of digitalvisitors. there are five critical success factors that the Internet Marketer has to keep in mind. While thenumber of eyeballs or page views has so far been conveniently used as a satisfactorymeasure by most web sites. Rising digital penetration would meanthat the number of customer visiting particular sites would inevitably go up. The digital company has to select its targetsegment by finding out which section of customers are the most profitable in terms ofrevenue transactions and who are the customers who generate the maximum number ofreferrals.CRITICAL SUCCESS FACTORS IN INTERNET MARKETING Having observed the evolving paradigms of business in the Internet era.

have used a variety of encryption tools and simple ethical decisions like not acceptingmoney for publishers for independent book reviews to maintain the trust of its customers. profits will remain elusive. Contentwould include Product enhancements (Software patches for glitches). Ensuring E-Loyalty Ensuring E-Loyalty is vital to the success of any online venture. This is because content serves as a powerful differentiator. E-Learning to facilitate personalized interactions 21 .brought in byadvertising or other marketing tools. Companies like Amazon.Integral to the concept of delivering proper content value is innovation. Web customers stick to sites that they trust and with time consolidate theirpurchases with one primary supplier to the extent that purchasing from the supplier’s sitebecomes part of their daily routine. Contrary to thegeneral view that Web customers are notoriously fickle. Delivering Content Value Delivering Content Value to engage the user’s interest is the critical importance in retainingcustomer participation. The issue of trust is integral to the issues of privacy andsecurity. they in fact follow the old rules ofcustomer loyalty. This is because acquiringcustomers on the Internet is enormously expensive and unless those customers stick roundand make lots of repeat purchases over the years. which command amazing levels of consumer trust. personalizedinteractions (through customized navigation paths as seen on the web sites of GM andToyota) and Problem Resolution (updates of delivery schedules and e-mail responses). they also cost less to support since they use theirfriends who referred them for advice rather than using the companies’ own technicaldesk.com.

responses generated. however technology has made the entire shopping experience atransparentprocess. thus reducing the risk of apotential flop. the company would be able todiscover which parts of a prospective campaign would work. and other indicators. By monitoring pages selected. The Internet may soon be used as a test bed fortesting prototypes of marketing and advertising campaigns. Such minute tracking of customer behavior has majorimplications for the world of advertising. This would make it possible for the company to modify its product offeringsmuch earlier than usual in the product life cycle. In the digitalmarketplace. E-Learning to facilitate personalized interactions with customers has been the biggestcontribution of the Web to the marketing strategists. 22 . Customers in traditional bricks-andmortarstores leave no record of their behavior unless they buy something. For example. heis a price sensitive consumer.clickthroughs. if the customer exits the web-site when the price screen appears.

Convenience: Customers can order products 24 hours a day wherever they are. 3 Fewer hassles: Customers don’t have to face salespeople or open themselves up to persuasion and emotional factors. and walk through countless shops to find and examine goods. 23 . competitors. they also don’t have to wait in line. products. They don’t have to sit in traffic. and prices without leaving their office or home. and a parking space.BENEFITS OF INTERNET MARKETING The reason why internet marketing has become so popular is because they provide threemajor benefits to potential buyers: 1. 2 Information: Customers can find reams of comparative information about companies.

and utilities. They can produce digital catalogs for much less than the cost of printing and mailing paper catalog 24 . 5 Lower costs: On-line marketers avoid the expense of maintaining a store and the costs of rent. 4 Quick adjustments to market conditions: Companies can quickly add products to their offering and change prices and descriptions. insurance.

25 . or interact with the advertiser through other touchpoints such as email. RichMedia Ads. the viewer has actually chosen to see the commercial. online classified advertising. chat or phone. WHAT IS INTERNET ADVERTISING? Online advertising is a form of promotion that uses the Internet and World Wide Web for theexpressed purpose of delivering marketing messages to attract customers. advertising paradigms have been constantly changing. Response to brand communication is instantaneous. banner ads. advertising networksand e-mail marketing. These directories complement television advertising and allow the viewer to view the commercialsof a number of brands.INTERNET ADVERTISING Marketing over the years more so recently has started being used interchangeably with advertising. Social network advertising. If the advertiser has opted for a response feature. Examples ofonline advertising include contextual ads on search engine results pages. Online video directories for brands are a good example of interactive advertising. the viewer maythen choose to visit the brand’s website. including e-mail spam. This is because in contrast to conventional formsofinterruptive advertising. Now since the explosion of the internet. and conversion to business is very high.

all advertisements will serve to attract the user's attention and draw him to the company. This is where the Internet scores traditional media and methods as explained below.Objectives of Internet Advertising Advertising: As far as advertising on the Internet goes. which is advertising. Promote its brands: 26 . Stimulate direct action: Visitors to a company's web site should get involved with the offerings on the site. Build brand awareness: Direct or indirect methods can be used on the websites to build brand awareness of the different brands of a company. Valuable customer information can also be captured and tracked for future marketing initiatives.

where all forms of traditional advertising fail. aiding off . Building a culture around its brands: This goes along with that company's traditional advertising. Promotional give . Surrogate advertising: This is another means of surrogate advertising of the company.away or contests generate excitement while simultaneously promoting your brands online. 27 . Surrogate advertising can be proved to be positive in case of advertising on the Internet.line sale.

Newsletters: Regular newsletters are sent especially to registered users. Such a database may be used to design promotional campaigns. 28 .Features of Internet Advertising Advertising on the Internet has certain unique features that differentiate it from other forms ofadvertising. They are as follows: Member registration: Member registration is an efficient tool that is used by firms to create their database. These contain information about current updations on the site and activities being performed by the company. Online opinion polls: Opinion polls are conducted to obtain the responses from users regarding the firms' products and services besides including topics of general interest. Allowing registered users to participate in various events can follow systems of free registration.

Star endorsers of the brand may also be included in the picturepostcard themes. 29 . etc. birthdays. They may be for simple things depending on the product or service being advertised. The use of multimedia tools can make this more interactive. Content: The content of the advertisement can be regularly updated with news regarding the activities of the firm. The prizesoffered are in a wide range and usually have the logo of the company and the homepageaddress displayed prominently. The card prominently displays the logo or the baseline of the brand. The cards maybe for different occasions such as birthdays. These cards are usedto reinforce brand identity. A fact-based section showing the manufacturing processes of a company may also be included. themes. Charts and other informative articles may also be included. screensavers. desktop patterns. etc. festivals.Contests and sweepstakes: Contests are useful in attracting new users to websites. E-cards: Users send free cards via e-mail from the site of the company advertising the product. Registered users get the opportunity of downloading software. Downloads Downloads may include various utilities for the computer such as icons.

a sale. Types of Internet Advertising E-mail advertising: Legitimate Email advertising or E-mail marketing is often known as "optin e-mail advertising" to distinguish it from spam. whom areonly paid media fees when traffic to the advertiser is garnered.Coupons: Coupons are used to promote sales off-line.The online retailer used its program to generate low cost brand exposure and provided atthesame time small websites a way to earn some supplemental income. Affiliate Marketing: Affiliate marketing is a form of online advertising where advertisers place campaigns with a potentially large number of small (and large) publishers. a sign-up. and usually upon a specificmeasurable campaign result (a form. this is usually accomplished through contracting with an affiliate network. Sending discount coupons for the products and services of the company on special occasions can do this. 30 . etc). Today. Contextual advertising: Many advertising networks display graphical or text-only ads that correspond to the keywords of an Internet search or to the content of the page on which thead is shown. These ads are believed to have a greater chance of attracting a user.

You will pay a fee to the consultants for thisservice. Sites like Overture also run bids for certain keywords . Properly run. they are sent to a sponsor's website. a search queryfor "flowers" might return an advertisement for a florist's website. that user can then be served auto-related adswhen they visit other. 31 .these campaigns can bring a lot of extra traffic to your website. Another newer technique isembedding keyword hyperlinks in an article which are sponsored by an advertiser. When auser follows the link. Search Engine Optimization: This is an online advertising service provided by many web media companies. non-automotive sites. For example. rather than the paid-for listings. Pay per Click: Search engines place your website on their front page and you pay a set amount per click-through. if a user is known to have recently visiteda number of automotive shopping / comparison sites based on click stream analysis enabledby cookies stored on the user's computer. For example. Behavioral targeting: In addition to contextual targeting.becausethey tend to share a similar context as the user's search query.the moreyou bid. Studies have shown that many searchers prefer to use the "natural" listingsprovided by the search engines. your competitors and the keywordsfor your business and optimize your website content so that it has a much better chance ofappearing on the first page of the search results. They will look at your target audience. the higher your site appears on the first page of the search results. online advertising can be targeted based on a user's past click stream.

Enhanced listings will allow users to click-throughto your site. they offer colour. graphics and often animation. when you pay only when the user clicks on the banner. A banner can highlight your product/service/offer and by clicking on it the user will be taken toyour website. where you can create a suitable landing page to provide his further information. or Industry Directories. Usuallyhorizontal bars across the top of a web page. Banner Ads: Banner advertising was the first kind of advertising ever done on the net. 32 . and need to be on targeted websites to reach the right audience. These sponsorships will be for fixed periods. together with the ability to click through to the advertiser's own website. Pop-up Ads: These are the small windows that appear when you first get onto a website. Your details will come up if your sector.location or company name is searched for. regular sponsorship where the advertiser has a space to place the logo and company message.Sponsorships: Website sponsorship can come in two formats. or banner views. these give you basic or enhanced listings on the website. and content sponsorship where the advertiser has limited control and submits their own content to the site as well as having an advert on the page. Banner spaces are usually sold by impressions. Online directory listings are often offered in conjunction with an entry in theprinted version of the directory. but it is sometimes sold by click-thru. Online Directories: The online equivalent of Yellow Pages.

the ability to click on the ad for more information. Floating ads are popular for several reasons: _ They grab the viewer's attention and cannot be ignored _ They are animated _ They have audio/video content like TV ads _ They can take up the entire screen. and they "float" over the page for five to 30 seconds. therefore from a branding standpoint. a unicast ad offers something that TV ads cannot -. You have no choice as to whether you view them or not. they obscure your view of the page you are trying to read. pop-downs appear on the bar at the bottom of your screen and you have to open them to get rid of them. Theseads have similar branding power as a TV commercial. although you can close them down. they are much more powerful than a banner ad or a sidebar ad _ They have a high click-through rate of about 3 percent However. Interstitial Adverts: These adverts sometimes referred to as Bridge Adverts. Uncast Ads: A unicast ad is basically a TV commercial that runs in the browser window. 33 . The ads can last anywhere from 10 to 30 seconds.Pop-ups appear on your screen in full. While they are on the screen. It has enriched audio/video content. as the average click-through rate is 5%. However. many users get highly irritated because of these ads. These ads appear each time that page is refreshed. Floating Ads: These ads appear when you first go to a webpage. and they often block mouse input as well. pop up as you move between pages on a site. These adsare getting very effective.

Click-through rates are alsohigh. side bars or buttons.Takeover Ads: Viewers visiting the website will see a large ad when they first come. and then the continuity is maintained by reiterating the same message throughout the site in theform of banners. The approach works very well for branding becausethe brand is visible to viewers throughout the visit to the site. 34 .

In 2008. and Internet advertising has already overtaken it. newspapers and magazines.As more and more companies realize the real value in advertising their goods and servicesonline. Internet advertising has already overtaken radio advertising inspending and market share.Even in developed markets. It’s as true foradvertisers as it is for consumers. Some estimations predict Internet advertising will hold as much as 10% ofthe global advertising market share by 2009. At the current rate of growth. you’re not on the Internet. Social 35 . still holdthe lion share of the market. it is notgrowing as rapidly as Internet advertising. While there isno way to guarantee these predictions. if you’re not on a social networking site. television. more advertisersmovingpromotions online and the growing penetration of the Internet itself. the market share of Internet advertising is continually growing while themarket share of offline advertising mediums stagnates or declines.INTERNET ADVERTISING TRENDS There is no question that the growth of Internet advertising is outpacing offline advertising.Consequently. While outdoor advertising is also experiencing growth. advertisers have not yet realized the full potential for gain. ad budgets don’t even come close to matching consumptionrates. Because the Internet isstill a relatively new medium when compared to other long established advertising mediumslike newspapers and television. but their market share is expected to decrease slowly over thenext few years.The dominant forms of offline advertising. they are diverting funds from other forms of offline advertising to compensate. Market share forInternet advertising will surely continue to grow rapidly over the coming years. This shows how much room for growth Internet advertising really has. the current trends bear them out. The growth in Internet advertising is due to two different factors.

Gone are the days when marketers controlledthe communication and path between advertisement and consumer. anybody with a computer and an Internet connectionis ready to start broadcasting to the whole world. Nowadays. collective. Gone are the days when power rested in the hands of afew content creators and media distributors. most importantly in the following forms: Weblogs (or blogs) are in fact web pages that are extremely easy to update. Today’s model iscollaborative. Podcast can be easily downloaded to a portable MP3 player. published by one person or a group. It’s a world in which the consumer is thecreator. Podcasts (combination of the words iPod and Broadcast) are essentially radio programs. holds more potential for growth than any other form ofcontent on the Web today.networking is the ultimate manifestation of usergenerated content. distributed in MP3 format. Wikis are types of websites that enable cooperation (open to the public or within a companyor group) by allowing people to freely edit all of its content. consumer and distributor of content. Videocasts(Video Podcasts) are video files distributed in MPEG-4 format. The proliferation of quality. and as such. which typically leads to dialogue. Blogs typically offer the possibility for readers to leave comments onposts. available instantly to the whole world. Today there are over abillion content creatorsand hundreds of millions of distributors. User Generated Content (UGC) and Social Networks aretransforming the media ecosystem. Creating a podcast is still relatively easy and very cost- effective. The phenomenon of democratized media results inalandscape of millions of micro-media. The result is a 36 . one of the most profound social effects of the Internet has been thedemocratization of media. Home-made videocasts are starting to appear through videocasting. customized and shared. affordable technologyduring the past 5 years. for free. Online tools such as the wellknown Blogger make publishing on the Internet extremely easy and accessible to peoplewith hardly any technical knowledge.

as itallows consumers to literally subscribe to content. If you care at all about your online audience. 2012 What comes to mind when you hear the expression “online advertising?” Do you immediately think of pop-up blockers and spam folders? How about free iPod scams. 37 .publicly editedwebsite. these are the organizations and people from whom you should run and hide. with as little top-down control as possible.org. It’s also true that advertising scams still happen — there are still many shady advertisers and ad networks who are out to make a quick buck and could care less about user experience. and low-quality content farms that are set up to do no more than funnel traffic? The sad truth is that the “good-old-days” of online advertising were full of scams that often left end users powerless and frustrated. anonline encyclopedia that allows all registered users to improve its articles.The first three of these new forms of media come with a universal technology for distributingcontent over the Internet: RSS. click bots. The best known wiki is Wikipedia. Trends in Online Advertising November 7. RSS is a very important part of all three technologies.

It’s a multi-billion dollar industry and a powerful marketing medium that connects well-intentioned advertisers with interested audiences. Instead of spamming customers with promotions. 2. LaunchBit creates an advertising ecosystem where the advertiser. and end-user all win.” “The concept is that as opposed to simply inserting a direct response ad like you think you might find in AdSense. “In general.” While you want to create a lasting impression with your target audiences. No brand wants to be associated with that annoying salesman. you don’t want to create an impression for the wrong reasons. Prioritizing User Experience Keep in mind that online advertising isn’t all bad. “For example. brands can unobtrusively supplement the content of existing newsletters. LaunchBit is redefining the premise behind email marketing. 1. “LaunchBit ads are text-based with a small image.” Zach Bulygowrote in a blog post for KISSmetrics.” Mashable writer Adam Ostrowsaid in 2009. you get a link to an interesting piece of content. “They can be viewed as the equivalent of a salesman popping up out of nowhere and giving you a sales message an inch away from your face.” Outbrain’s advertising model is one that prioritizes high quality content. By connecting email newsletter publishers with brands. and can choose which advertisers they would like to partner with. Rather than displaying ads for products. user engagement. As Mashable puts it. 3. Transforming Traditional Channels Startups such asLaunchBit are tackling the user experience challenges of email. these plugins connect end users with articles. and pageview depth. What advertisers need to do now is prioritize user experience. “Publishers are given full control over which ads are being published. The network has pioneered a new channel that is 38 . Creating New Channels Content marketing has joined forces with online advertising through content recommendation engines like Outbrain.” WebSiteMagazine’s Allison Howen wrote. a historically spammy marketing channel. the model is “Sponsored but Good. so that they match the tone and don’t interrupt the content of the newsletter. publisher. do not have advertisements that interrupt the visitor’s time on your site. Palm might want to purchase a sponsored link to a favorable review of the Pre and have it display in the Outbrain widget on selected tech blogs.” Rather than promoting a zero-sum game where brands and consumers are both losing from email spam.

If you’re not remarketing yet. why not?  Video advertising – Over 800 million users visit YouTube and watch over 4 billion hours of video worldwide each month.  Display – Display advertising remains highly effective at generating brand awareness and is an excellent complement to your search campaign. 39 . The goal is to inspire end users instead of pushing them to make a click or purchase. Improving Efficiency Ad space is far from a new concept. First. That idea is the principle of isocket.reinventing the direct response model. a startup that is enabling high quality publishers to work directly with advertisers. The premise is simple: work with publishers and media creators to reach target demographics. but it continues to be the best way to reach those actively looking for your product/service. and serving ads to current and prospective clients. and the publisher is emailed directly once an interested buyer chooses to purchase the ad. Isocket has combined the convenience of an ad network with the value proposition and user friendliness of a direct ad sale The Top Six Online Advertising Trends for 2013 2012 was a very big year for online advertising as many exciting changes were introduced which have changed the way we reach and connect with customers. let’s recap the things that you should already be doing and why they’re a MUST DO:  Search – Search advertising is becoming more competitive. so it’s the perfect time of year to think about these trends and how your PPC ad campaigns can be even more effective in the year to come. YouTube has introduced a variety of ad placement options including ones that ensure your ad is being watched.” Rip Empson wrote in a TechCrunch post. We’re expecting 2013 to be just as ground breaking as we expect many more options for targeting. so there really isn’t a reason not to be there. “It’s a self-service platform. allowing them to accept or reject. 4. engaging with. extending to industries apart from the Internet like televisions and magazines.  Remarketing (aka retargeting) – Remarketing had a big year as more and more companies realized how effective it is at maintaining front of mind presence in a cost-effective manner. The business practice is decades old.

5. Targeting – Expect new options for ad targeting. more accurate targeting. it’s something to consider for the year ahead. Users can expect advertising that is more relevant to their likes. 2013 will bring better. 40 . Facebook Remarketing – It was only a matter of time before Facebook stepped up to the plate and offered advertisers the ability to serve ads to users that have previously visited their website. and constantly changing. and video. What should we expect in 2013? The following are the top trends to keep on top of: 1. 7. behaviors. exciting. 2. With new options for targeting. With 20% of online searches taking place on a mobile device. but Google is in the process of introducing remarketing text ads in search results as well. In addition. Recommendations from friends go a long way and now it’s even easier to profess your love for your favorite brands online 6. 3. and actions online. 4. at a much lower cost per click. remarketing. Costs – Costs continue to correspond to the effectiveness of the ad format and we expect to see an increase in cost per click (CPC) for mobile. Mobile – Mobile is new. Social extensions on paid advertising – Social is everywhere and it’s no surprise that social sharing icons have made their way into paid advertising. companies will be able to deliver a specific message to a subset of people that are likely to convert. AdWords remarketing in search – Currently remarketing is just for display ads. mobile provides a very cost effective opportunity.

volumes of consumers are online everyday for their personal work. internetserves as a panacea for all their requirements. entertainment.It is true that people have started realizing that internet can serve as a one stop point for alltheir needs. is it the end of traditional advertising? Is internetadvertising effective and efficient compared to the traditional form Does it ?fulfill the basicObjectives of advertising (create awareness. which is around 5257% more than that in the year 2004. banners etc. shopping. This is the new age of advertising. is it effective acrossover all target groups? We have trusted traditional advertising all these years and it’s aproven medium that fulfills all the objectives of advertising. most important what is theirrecall/remembrance value. This is an opportunity foradvertisers to exploit this revolution.etc…)???The problem is that. Be it communication. can one have the same trust foronline advertising… 41 . This has led 70% of the ever users to gluethemselves to the Internet and access it on a regular basis. information search.butdo they notice the ads. build positive image.MARKET RESEARCH A study on the effectiveness of Internet Advertising in Mumbai Advertisers are expected to spend Rs.compound percentage increase of 124% over the last 5 years.500 million in internet advertising in the year 2009third only to TV and Print ads. to generate sales. 22. displayed on that webpage. What about the reach of online advertising. But.

Data collection Secondary data: Online reports related to advertising Primary data: Questionnaire. It would give us a clear picture on the effectiveness and reliability of online advertising compared to the traditional form of advertising.RESEARCH OBJECTIVES _ To compare the trust level of traditional advertising and online advertising (consumers point of view) _ To find the effectiveness of internet advertising (reach and creation of awareness) _ To find the reliability of internet advertising (recall and remembrance) RESEARCH METHODOLOGY Research design This is a descriptive research as it will clarify the doubts about online advertising. Interview with Marketing Professional Sample universe Basis of sampling: _ Sample should be a user of internet or should have knowledge about internet 42 . Personal Interview.

social media formats like blogs. some positivelyand some negatively. A well educated person may be able to reason out the questions in the better way. Companies like Dell. andjoin the online conversation. SOCIAL MEDIA MARKETING The influence of traditional media and marketing have over consumer perception is waningas people migrate to the variety of social media technologies for entertainment and to share information with each other.Nikonand Nintendo are successfully using social media and marketing strategies to understandand engage their audiences more deeply – with demonstrable business results. and raised the awareness of the power social media has to influencebusiness results._ 50 numbers in all Sampling Technique: Judgmental Non Probability sampling can be used to select the individual units for better productivity of the questionnaire. In 2006. Social media is making an impact on all aspects of business communications today. 43 . These conversations affected many companies. share an experience. Reliance is thelatest additions to Social Media Marketing. The reach and influence of socialmedia is only going to grow. But these social media outlets are more than another channel through which to deliver messages to the marketplace. photo sites and video sites crossed the threshold from techno-curiosity to become a bona fide societal trend. Now we are in an era where companies must take action. Microsoft. Consumers by the millions haveembraced these powerful communication tools to post an opinion.

_ Email was first practical application of the Internet for most people and it was the first word of mouth accelerator as it enabled people to connect with family and friends instantly.com. Technology-Powered Communications Accelerate Word of Mouth From the earliest UseNet groups to today’s hot video sharing and social network sites. and a few straightforward Web 44 . _ Usenet groups and discussion boards made it easy for people to find others with similar interests and consumers learned that the Internet freed them from the limit of geography and personal connections. Backin the net’s early days. and far outstrip commerce and entertainment. Blog sites likeBlogger made it simple for an average Web user to post his or her opinions to the world.Armed with a browser. such as books at Amazon. Consumers embraced the idea of reading book reviews written by other readers and not relying on professional reviewers’ opinions to decide whether to pick up the latest bestseller. The influence of word of mouth expanded rapidly within these vertical niches.The Social Web’s New Communication Forms Draw More Users Communications has always been the fundamental value of the internet to consumers. frequently and at little cost. _ Consumer review sites used the discussion board format. Communication activities split the lion’sshare of consumers’ online time with content. but focused discussions around specific products. email was the “killer app” that made the Web a “must-have” andcontinues to be a mainstay of the online experience. basic typing skills. eachnew innovation has increased consumers’ reach and influence. _ Blogs freed consumers from the limited membership of discussion boards.

_ Consumers soon learned their conversations aren’t limited to words. Social Media Transforms Communications into Content These new tools blur the line between communications and content. now brands like Burger King. photo sharing. first via email then via first-generation photo-sharing sites like photobucket. Each entry (or“post” as it is known) is a short article. Blogs are a natural example of how content and communications blend into a single experience.anyone can publish their thoughts. etc. Toyota. while at the same time serving as a central communication hub for a group of friends. People were no longer limited to text or still photos. Early on. _ Social networks like MySpace skew more toward the social end of the social-to-content continuum. But bloggers mean to stimulatefeedback and conversation. as readers add comments and links to other blogs to make apoint. or daily journal in a few minutes a day. essay.commands. Sometimesthe resulting communications can be so influential they end up taking the story in an entirelynew direction. They combine a selection of social media tools like blogs. and consumer-created video site YouTube quickly bloomed to six million users watching 40 million videos per month. bands would build online fan communities to promote their music.com. rants. news item. Videos are theultimate expression of creativity since they can “mashup” (all in one) elements and 45 . This interplay results in a dialogue of different perspectives and opinions. to give the author a platform for expressing their passions and preferences. Social Media Begins to Impact Brands One of the most exciting and powerful forms of social media is the video. Adidas. and Cingular create circles of “friends” that become brandbuildinghubs. etc. _ Digital camcorders and audio/video editing programs like Apple’s iMovie became affordable and user-friendly versions for home users. Digital photography’s boom introduced people to sharing their creations.

Myspace and Facebook are usually seen just as places wherepeople go to connect with friends and find others with similar interests. companies can track how their messages are being interpreted in the marketplace to understand how the company is perceived and to learn how any responses or message changes should be approached.g. blogs.On the other hand. changing industry trends. E. _ Monitoring also enables companies to track the evolution of known trends in order to quantify the ones gaining the most attention and acceptance within their target audience. _ But social media also calls for a Discovery approach. allowingcompanies to prepare a response before a story gets wide coverage. in which companies learn what 46 . The Other Side of Influence Often the discussions can be positive about your products and the experiences consumershave had with you. but sometimes they can be very negative. Social media sites like Orkut. video. _ Measurement provides the quantitative reporting data on the specific issues and buzz driving media coverage making it easy to demonstrate the impact of PR and marketing efforts. Bloggers at topcompanies agree that learning about and dealing with negative stories as they emerge issmarter than waiting until they hit the newspapers or evening news shows.messages from audio. This will also provide valuable insight into potential threats from competitors. thisincreases the number of potential critics and they don’t need to haveimpressivequalifications or credentials to be influential. company-created messages and media coverage. all of these negative opinions are public and searchable. Dell Driving Business Results with Social Media There are four primary ways companies can use social media to drive business results: _ By Monitoring social media. On the one hand. and customer preferences.

the metric has certain shortcomings. Also.e. as we prefer to tangibles the things that we buy. Of course. All in vain in India. Additionally. click-through does not quantify the impact that the exposure of the advertisement has on a consumer’s attitudes 47 . consumers trust the traditional medium more than that of online and there is a vast difference in their trust levels. newspapers and magazines. it could be because of the Indian culture which is different from the western countries that are more into e commerce and prefer to buy things online and they trust the internet more as compared to the other forms. Internet advertising is more successful in those countries. click-through is viewed as the primary measure of advertising effectiveness. THE OTHER SIDE OF THE COIN In the world of online advertising. This metric quantifies how marketing communication can be directly linked to immediate consumer action. Therefore. From this. But. companies can measure the growth of many CONCLUSION Practically it has been proved through the research that online advertising is neither effective nor reliable as compared to the traditional medium which is Television commercials and print media i.influences are driving the internet discussions in the marketplace. primary reliance on click-through does not recognize that in most cases consumers who are exposed to advertising over the Internet may not currently have a need for the products or services being advertised to them. Being collective we go shopping along with family friends and relatives.

a consumer is more likely to consider that advertiser’s product. is of extreme importance. In order to have an impact on brand metrics. when applied improperly. Advertisers in the offline world realize that consumers may not have an immediate need to purchase a product or service at the moment it is being advertised. we can assume that most people exposed to an ad do not have the need for the products being advertised at that time. CASE STUDY – I Barrack Obama It was the launch of the brand ‘Barack Obama’ for the US Presidential 2008 campaign. Buy us!!! But modernconsumers do not believe all these shouting ads any longer.Itwasstarted in January 2007 and was first of its king campaign in Politics The successful campaign invited all marketers to forget all that they had learned the last 10years and to look with a new and fresh look at Barack Obama’s strategy: It’s a New Daypeople. the banner could lay a subliminal effect on the consumer which might drive him to buy the product or create some association with it.Consumers are influenced by their peers. In most cases. and the size of the banner should all have an impact on the banner’s ability to brand.and perceptions of the brand being advertised. these characteristics may serve as positive reinforcement and therefore have a positive impact on branding. Additionally. If one can take target this subconscious mind then definitely it can create a positive impact on branding. the presence of a logo. a common advertising strategy is to build awareness of a product and form positive associations (Subliminal effect) between that product and a consumer over time so that when the need arises to purchase from a given category. these ads may serve to punish viewers thus resulting in little to no impact on brand metrics. Also. these ads are less likely to be noticed. Therefore. Realizing this aspect of consumer behavior. before they scroll away. They only buy a brand and their products/servicesif their peers have written a 48 . let’s start with a fresh look today!Most brands shout through advertising. users view banner advertisements as a nuisance as they are engaged in other activities while they are being exposed to the ads. the size of a logo. In addition. Conversely. Applied appropriately. we can hypothesize that getting a message in front of someone as quickly as possible. Because it is the subconscious mind that plays the game here. We are cool! We are the best. Consumers are not led by ads.

Due to interactive media. entertainment. Many marketers use viral videos for short campaigns. Marketers have learned to do thissince the industrial revolution. Obama had noticed that the mostimportant part of the marketing campaign was his website!The secret behind the 49 . theirservices. their ads. At YouTube consumers started to criticize brands. by shouting ads…Obama really wanted to become part of consumers. Obama gained great insights about consumer’s behavior and emotions. their products. Most marketersshout at consumers via one way mass communications. With a viral that is really viral. And the worst part of it all. clicks. The power of the web was peer communications. views. strong seeding skills you’re viral will become a weapon of massaffection. building relationships. He tapped into online conversations with aextendedconversational tracking program. And brand marketers try to seduce. consumers started to interactwithbrands. Consumers started conversations about brands within blogs.positive review about in online. and more web analytics. By listening to peer conversations within the socialspace. Many marketers use broadcasted media to reach people. so many choices. Most brands focus at campaigns and spend their money on media. But modern consumers have somany options. smart social media planning. And hetapped into these conversations in a very smart way… Learning Most marketers used “the internet” for shouting banner campaigns. Marketers did not even know what was being said about them…But Obamahad seen the mistakes brands make. forums and socialnetworks. sharing. brands were not even aware of these conversationsamongst peers. in an authentic way. and used content to build his brand in the long term. who werethe social influencers per topic/theme. sharingopinions and more. interaction. But most marketers are only measuring online campaigns by: hits. Mapping where the conversations took place. Obama embraced the long tail. But theirwebsites are awful and scare away leads immediately.

CASE STUDY – II Dell Computer It all started with a post. I'm having all kinds of trouble with the hardware:overheats. Invite people to participate and create a movement of brand ambassadors. I t was 50 .Themachineis a lemon and the service is a lie. “And there was no stop to it…it gained momentum…and even more momentum…leading todedicatedhatersThe whole thing started with one post. Your website is your greatest brand interaction asset.Obama website: Great architecture and functional scope. in-home service. Poeple are smart and willing to help. Invest inbrand architects and functional scope before you built a very expensive website that doesnot deliver your brand. June 21. network doesn't work. Use your website to create engagement. marketing. maxes out on CPU usage. 2005“I just got a new Dell laptop and paid a fortune for the four-year. communications and sales goals.

One needs to keep atrack of this for a successful outcome. They arethe lightening to a fire forest.followed another. 51 . computers etc. It ruined the sales of Dell computers. Learning This case study gives us (companies) a good reason to be updated with the happening of the social networking sites. a collaborative blogging site where one can give their own ideas and discuss aboutgeneral technology. It all happened without the knowhow of dell. They blogging was internal as well as external for theoverall development of the company and its image. Dell didn’tupdate themselves with the internet proceeding.When they realized it was too late. The only reason was. Blogging and forums are the new influencers of today. which answers all the queries andproblems about anything and everything about the dell laptops. It was followed by Dell IdeaStorm. then there were many. They form the root of the brand image. The whole exercise took 3 years to beback on track. DELLHELL was started.Dell learned fast. they opened their blog Direct2dell.

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