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I hereby declared that this dissertation topic entitled “The diffusion and success
factors of mobile marketing” was carried out by me for the final semester dissertation.
The interpretations put forth are based on my reading and understanding of the
original texts and they are not published anywhere in the form of books, monographs or
articles. The other books, articles and websites, which I have made use of are acknowledged
at the respective place in the text.
I wish to sincerely thank all those who have contributed in one way or another to this
study. Words can only inadequately express my deep gratitude to my guide Mrs. Priyanka
Gangopadhaya, for her meticulous care, kindness and generosity. Her fruitful comments
and insightful suggestions have been a crucial formative influence in this present study.
She has supported me in every possible way since the beginning of this. Her critical and
careful reading of my writing has saved me from a lot of errors. Without her guidance and
encouragement, this would have never come out in the present form. I have seen in her
an unpretentious and devoted scholar.
Grateful acknowledgement of Mrs. Sulakshana Sinha for her valuable suggestions and
kind assistance of the class observation.
I wish to thank all of my friends and colleagues for their full support and
encouragement. I wish to express heartfelt love and appreciation to my dear friends.
I also want to thank my parents and all of my teachers for their enormous support
and encouragement, which help me to stand in present at here.
1. Introduction
2. Literature Review
3. Research Objectives
4. Research Methodology
5. Research Result and Analysis
6. Conclusion
7. Bibliography
8. Appendix
INTRODUCTION
Innovation creates marketing opportunities and challenges. Mobile Media for
example, transcend traditional communication and support one-to-one, many-to-many
and mass communication. Phones and personal digital assistants increase the availability,
frequency and speed of communications. Yet the technology associated with these
devices, which let marketers personally communicate with the consumers, continues to
evolve.
The increased consumption of mobile digital media has allowed the expansion in
the number and complexity of tactics through which brand can create and maintain more
lasting relationship with consumers. For instance, Computer and communication market
research firm International Data Corporation(IDC) points out that the global smartphone
market grew by 40% in 2013 and is likely to reach 1.07 billion a year by 2017. The factors
associated with this important growth, according to IDC, are, fast and foremost, the
subsidies offered by operators to users in exchange for the adoption by them of a
minimum stay clause in their mobile communication service plan. Second, there is the
increasingly frequent appearance of equipment of a lower price range that may currently
be around $350(IDC,2017).
AVERAGE MINUTES PER USER ON PLATFORM
Desktop Mobile
6200
5500
4800
4800
4400
4000
4000
3900
3900
3900
MINUTES
3200
2900
2700
2250
2000
1980
1950
1950
1950
1950
1950
1700
1650
1600
1500
1400
COUNTRY
This table shows the average minutes that a user uses his smartphone platform
globally at the end of December,2018(market insights, January,2019).
And hand in hand, with the growth in sales of mobile devices is the phenomenon of
using the internet. According ComScore (2017), although India, currently accounts for 10%
of the total global internet audience, it’s the region with highest growth between June
2016 and June 2017, at 11%, reaching a total of 197,612,000 new visitors. But in the case
of Sri Lanka at the same time span, the same report indicates that by June 2017, a figure
of 13,642,000 new visitors was there. Sometimes to highlight is the distribution of these
users by age ranges. In this India has 74% users belong to the Generation Y or millennials,
a comparatively higher figure than the global which is 62%. At Sri Lanka, the age
percentage is 42% and in the US, it is only 62%.
TOTAL MEDIA, DIGITAL & MOBILE INTERNET
AD SPENDING IN INDIA, 2013 -2019, IN USD
BILLION
Total media ad spending Digital ad spending Mobile internet ad spending
8.53
7.94
7.49
7.03
6.4
6.11
5.56
2.17
1.78
1.46
1.23
1.17
0.94
0.94
0.74
0.59
0.57
0.35
0.17
0.08
0.03
This table shows the total media, digital and Mobile internet ad spending in India
from 2013 to 2019. And that shows that the increase level of mobile internet ad spending,
because it became more useful tool for marketing.
LITERATURE REVIEW
In this section, we firstly identify and describe the four different types of mobile
marketing channels; voice, messages, web and television. We also identify three specific
characteristics that differentiate mobile marketing from other types of marketing
approaches; location-based, personalization and interactivity. We also identify 5 theories
that have been applied to mobile marketing research: they are permission and
acceptance, attitude and behavior, development and implementation, value chain and
decision process. Technology acceptance(TAM) as a favorite theoretical model and
Structured Equation Modeling(SEM) techniques are also examined.
This section describes various mobile communication tools along with mobile
technology generations; these tools are used as communication channels in different
types mobile marketing campaigns. Our review of mobile technology generations also
indicates research interest for mobile marketing in different stages.
Using 1st generation of mobile technology, the main communication was via voice.
During the 1st generation, the costs of the use of mobile technology to perform
telemarketing related activities were greatly decreased. This has encouraged the brand
owners to perform telemarketing over the mobile platform. The advantages of mobile
telemarketing are threefold. Besides inheriting all the properties from the traditional
fixed-line telemarketing manner, mobile telemarketing also has the added advantages of
personalization. A mobile device can serve as a personal identity. The mobility of the
device also means that marketers can reach the consumer at any point in time.
• Mobile Messages (2nd Mobile Generation)
Using 2nd generation mobile phone technology, SMS /MMS services were
successfully designed to be complementary to the voice communication of mobile phones.
By having this service, mobile users can not only communicate by voice, but also send
messages in text. This helps to reduce or eliminate the chance of getting incorrect
information through voice, especially in cases when the message contains important
information such as email addresses, names or physical addresses that are not easy to
remember or that could be spelt wrong by voice communication. The mobile messaging
marketing approach also provides a cost-effective way to send messages to the receiver,
compared to the standard voice communication. In fact, mobile message is a successful
replacement marketing tool for the traditional pager-based service. SMS/MMS enable full
automation of the message sending process, whereas the pager service requires a call
made to the control center to initiate the message sending. Therefore, although other
more advanced mobile features exist, SMS is still an important and popular feature for
simple text communication.
Thus, the advantages of using mobile messaging marketing are fourfold. Firstly, the
cost of sending the message is the lowest for both the brand owners and consumers
compared to other mobile marketing approaches. Secondly, the lifetime of the message
delivered to the consumer is substantially longer than for voice communication because
the message is stored in memory so that the consumer could retrieve the message again
when needed. Thirdly, messages can store information that is difficult to communicate by
voice, such as voucher number, name of contact and address. Finally, since the SMS/MMS
system is based on digital communication, it is very easy to allow the computer system to
recognize the contents of the messages, enabling full automation for the sending and
receiving processes.
Using 3rd generation mobile phone technology, mobile internet marketing was
introduced. Mobile Internet marketing is quite different from Internet marketing. The
regulations for the use of mobile communication are well defined. These regulations are
expected to be able to resolve the issues in privacy and security that exist for Internet
marketing. First of all, the costs of use of mobile Internet are higher than the normal
Internet. Although it may prevent quite a few brand owners from participating in this area,
it ensures that the players who have joined are powerful enough to enforce control over
the content and the processes. Additionally, not all of the web resources are able to be
displayed on mobile devices. In fact, due to screen size limitations, mobile web resource
must be designed specifically for that device to very strict standards.
There are multiple ways on the Internet platform to perform marketing activities.
The most popular way is marketing through subscription of email newsletters, which the
topics are specified by the subscriber. There are also other advertisement approaches,
such as embedded advertisement on instant messenger applications (e.g. MSN
Messenger, Yahoo Messenger), website advertisement, forums and blogs. Unfortunately,
due to the lack of appropriate controlling mechanism in contents, privacy and security.
Furthermore, the seriousness of spamming on the Internet platform has become so
unfavorable that it is so difficult for consumers to trust this kind of communication
approach, and brand owners may simply avoid the usage of the Internet to maintain their
reputation. Brand trust is very important to mobile Internet marketing deployment. In
New Zealand, mobile service provider (e.g. Vodafone) use web portals to market their own
or third party products, Vodafone Live is a well-implemented mobile Internet marketing
campaign.
The promise of true 4th generation mobile technology is television delivered to the
mobile phone. There are some limitations on the traditional television marketing
approach, due to its one-way broadcasting channel. The content of the TV marketing
approach through broadcasting media is usually dynamic and volatile, and therefore it is
necessary to repeat the contents of these marketing messages several times in order to
assist consumers in remembering or understanding. TV marketing allows hi-tech
involvement in the marketing processes and, in addition, it hits the consumers’
psychological perception. The dynamic feature of such a communication channel allows
the sellers to update the contents of their messages in real time; therefore, the contents
are more valid and accurate [16]. In addition, it also introduces new elements such as
animation and sounds, which can further deepen the consumers’ impressions.
Furthermore, the correctness of the message delivered to the consumers could also be
increased by using live verbal and visual communication.
• Location Based
The mobility of mobile devices can eliminate the physical limitations within the
coverage of the network. Location awareness of marketing is always an important factor
for brand owners and consumers to carry out marketing activities. To most of the
businesses, there are usually three levels of location based services: country based, city
based and suburb based. To achieve different level of location based marketing objectives,
brand owners need to establish marketing strategies in different scopes, such as local
advertisement, local directory listings, local telemarketing, and so on.
The problems associated with this approach are that, the costs are not certain if
the brand owners would like to open a new marketing in a different area, they will have
to perform extra local marketing activities in the target area. There are barriers in cross
boundary marketing activities in traditional ways, and extra administration effort is
required to perform marketing activities at a specific location (not area). To the
consumers, it is not always easy to find out services or products of a specific brand owner
in a random area, as most of the sources of information require a static access point, such
as yellow pages, a computer with Internet connection, and so on. With these difficulties,
location based marketing can only be performed with consumers who have already lived
in a specific area for a period of time, which means a limited number of consumers to the
brand owners.
The global positioning system (GPS) is presently a common and popular service to
track and identify the current position of a specific user, and the size of the device has
been greatly minimized. With the GPS service integrated, a mobile device can not only
perform normal mobile related services, but also the GPS features such as knowing the
current position globally, providing an online map of the surrounding area and even
services or products provided nearby. This allows the consumers to quickly seek out a
desired product or service even at an unfamiliar location, and enables the brand owners
to communicate to the consumers with more valid, accurate and timely information.
• Personalization
Mobile service allows personalization which means that in some situations, after
careful authentication and verification, it could be used as a substitution of personal
identities such as credit cards, bank cards or social security identification. Since mobiles
are a personalized communication system, brand owners may store the profiles of
consumers’ in their own system (e.g. database system) which allows them to identify
whose mobile is related to a particular profile for further reference. Unlike the Internet,
where it may be highly risky to supply personal information to a remote party, mobile
systems are usually highly regulated and, most of the time, the information storage is local
and contextual. It is also suggested that gaining permission from the consumers is required
to precede further activities, and this is vital to establish reciprocity and understanding.
Furthermore, the communication and interactions between the brand owners and
consumers are also protected by the mobile network, but the extent is dependent on the
level of security implementation of the system.
• Interactivity
Unlike static marketing media, which are mainly focusing on information delivery,
mobile devices allow timely communication to take place, emphasizing interactivity. There
are two types of marketing approaches: push marketing and pull (interactive) marketing.
In the marketing field, ’push ‘is used to describe activities that are initiated by the product
or service providers; for example, mobile telemarketing or mobile SMS marketing services
are usually considered as push marketing. In this situation the consumers are passive, and
the ‘push’ approach usually doesn’t obtain high consumer response rate; whereas ’pull’
refers to those activities that are initiated proactively by the consumers. Thus, pull
marketing campaigns should allow consumers to give their permission and the opt-out.
Another advantage of the ‘pull’ approach is that consumers and businesses can obtain
immediate results from each other because of the interactivity of mobile technology.
No matter which type of marketing approach used, obtaining the user permission
is the most vital success factor. Mobile marketing is well accepted and has a higher
response rate from the customers, because mobile marketing applies the interactive or
pull approach and permission based campaigns.
The most imperative success factor for mobile marketing is user acceptance. Even
though the user may have already accepted mobile phones, and the behavior of whether
a user accepts a new concept may depend on their attitude.
The success of mobile marketing campaigns is significantly tied with market needs,
available technological availabilities and user expectations. Both real-life contexts as well
as the existing literature, need to be evaluated. Moreover, the development and
implementation should align with the marketing strategies and business’ needs.
• Value Chain Theory
Consideration of the decision process for mobile marketing is important for mobile
marketing success as success is significantly dependent on the customer's desire and
willingness to receive marketing messages. In addition, the decision process model should
help guide future research into the diffusion of mobile marketing and other permission-
based marketing services.
• TAM Model
• SEM Method
Not only the apps, India is now the fifth country in the world with the highest
number of game downloads. A country with the largest youth population in the world, the
mobile gaming industry in the country shows no signs of slowing down, which also helps
to grow a different marketing segment for the mobile gaming and apps.
Not only that the digital ad spent se to increase. The possibilities that mobile has
bought the brands to recognize the opportunities of mobile devices. With mobile ad spent
set to rise by a whopping 75% at the year 2018 – accounting for over half of all digital ad
spend, it’s clear that mobile holds the key to brands success.
277
275
268
247
239
235
225
220
210
183
166
142
119
104
54
51
48
48
31
29
<15 YRS 15-24 YRS 25-34 YRS 35-44 YRS >45 YRS
This shows that from year 2016 to 2017, uses of mobile are increasing and for that
the success factors of mobile marketing are also increasing.
RESEARCH OBJECTIVES
To identify real consumer due to the personal character smartphones and the
possibility of getting information regarding user’s behaviors.
To understand the future aspect of mobile marketing campaign that adapt new
patterns of behavior in terms of web browsing and apps usage.
To understand the factors that explain the adoption of mobile marketing in both
consumers and organizations (Roach, 2015).
To understand the attitudes and perceptions that consumers have about
commercial applications and marketing developed on mobile devices. (Carroll et al., 2017;
Leppäniemi & Karjaluoto, 2015).
To understand the current consumer usage patterns regarding mobile marketing
tactics and the establishment of functional relationships between contextual factors and
usage behaviors.
RESEARCH METHODOLOGY
In this systematic literature review, use both the qualitative and quantitative
analysis for the selected papers and some primary data (sample size =120, means there
are 3 age slabs which have 30 of sample each).
For out systematic literature review, eight databases were included. These
databases were:
1. Google Scholar
2. IEEE Explore
3. EBSCO Mega File Premier
4. ACM Digital Library
5. Wiley InterScience
6. InderScience
7. Emerald Full-Text
8. ProQuest
Search Conditions:
There are 54 total references from where the data is collected and it shows that what
is/are the best channels of mobile marketing for them. Some of the answers are more
than one also. This also defines the huge customer base of mobile and by the character
study, a company can easily select the target group of customer/consumer.
Voice 2
Message 45
Web 22
Television 4
Location-based service 6
Personalization service 11
Interactivity service 8
Reference analysis on marketing channel
50 45
40
30
22
20
11
6 8
10 4
2
0
no of references
This table shows that the message and web are the two channels that are referred
most and in the service personalization service has the most reference. This also states
that the targeted group of consumers.
Mobile has a huge market with a huge customer base. India is world’s 2nd largest
telecommunication market with 1.2 billion subscribers as of March,2018. Revenues from
the telecom equipment sector are expected to grow to US $26.38 billion by 2020. The
number of internet subscribers in the country is expected to 829 million by 2021 and the
overall IP traffic is expected to growth of 30 percent by 2021.
Year Bharti Airtel Reliance
Telecommunication
2013 6.4 3.7
2014 5.8 4.2
2015 6.8 5.1
2016 7.2 6.8
2017 7.4 7.5
Trend of growth rate
8 7.4
7.2
6.8 7.5
7 6.4 6.8
5.8
6
5 5.1
4 4.2
3.7
3
0
2013 2014 2015 2016 2017
Potential types of Text, voice and video Text, voice and video in
communication in rich formats. relatively small visual
spaces (Smartphone), with
increasing transmission
speeds.
15-30 30 0
30-45 22 8
45&above 17 13
22
17
13
8
0
This is the graph what represents that there are a lot more number of
user at the age group of 15-30 than the age group of 30-45 and 45& above.
According to this, we can easily say that this marketing can be more efficient in the
age group of 15-30 but the market in the 30-45 and 45&above but with a selected
consumer base and that can be used as a target consumer or TC.
15-30 11 8 8 3
30-45 18 4 6 2
45&above 6 16 3 5
Reasons for using mobile marketing
18
16
11
8 8
6 6
5
4
3 3
2
This graph states that the reasons which are important for mobile marketing. For
less time 30-45 age groups are more, for variety 45&above groups are more and
for less money spend 15-30 age groups are more. This survey helps us to
understand the specific reasons for choose the targeted customer. If a company
wants to point the less time option, then they maybe more are going for 30-45 and
15-30 age groups. That’s how when for the option of variety 45& above are more
and the 15-0are more preferable for the market aspect. When a company want to
identify the targeted customer of their product, they need to understand the demand
or the reasons of the customers. And this are all the basic reasons for a person is
going for online marketing, which the way the company are targeting the potential
consumers or customers for them and target them via mobile marketing due to the
high use of mobile phones.
Age groups Touch & Feel Trust issue Lack of Other Reason
Knowledge
15-30 9 10 4 7
30-45 13 8 5 4
45&above 12 6 12 0
Chart Title
14
12
10
0
Touch&Feel Trust Issue Lack of knowledge Others
This graph states that the for different age wise there are certain
different reasons like touch & feel, Trust Issues, lack of knowledge and others. In
here, 30-45 age group has the main reasons of trust issues and the age group of
45& above has the reason of lack of knowledge. But with the age group of 15-30
has two reason on a similar like trust issues and touch & feel.
CONCLUSION
Given the increasing penetration of smartphones globally, it is important
to investigate how consumers are responding to new mobile marketing tactics.
These tools present important differences from those that are part of the
traditional mix of communications and marketing promotions. These include the
fact that unlike laptops smartphones are personal devices, which are almost always
on and are reviewed with a high frequency by the users throughout the day. This
opens up new opportunities to deliver more personalized communications at the
right time and place to impact consumer buying decisions.
Also noteworthy is the future potential of mobile marketers from the
viewpoint of the user profile, since the segment that has the highest growth rate
in the use of these mobile devices are young adults or Millennials. If brands want
to communicate with these new consumers, they must understand how they are
relating to these mobile communication technologies. The main characteristics of
this new digital media includes ease of contact with users, the ability to send
personalized content and the ability to generate interactive experiences.
The pace of evolution of these mobile communication technologies has
been so fast that the initial tools such as text messages (SMS) have given way to
the great variety of possibilities offered by Smartphones. It has also been raised the
possibility that mobile marketing can increase the perception of value of
customers.
One of the main areas of research in this field has focused on the
acceptance of technology associated with the consumption of services on the
Internet. Some of the models applied to the study of mobile marketing adoption
include the Diffusion of Innovation Model developed by Rogers (1995) and the
Technology Acceptance Model (TAM) (Davis, 1989) which in turn derives from the
Theory of Reasoned Action (TRA) (Fishbein & Azjen, 1975). This new consumer
reality provides a setting for organizations to develop and invest in mobile
marketing campaigns that adapt to new patterns of behavior in terms of web
browsing and apps usage. However, there is still the need to perform more
research from a theoretical perspective about digital consumer behavior issues,
in order to support decision-making in organizational and management science,
specifically those related to the marketing function. It's apparent that mobile
marketing research is only in its initial stage, and although several studies have
been carried out on relevant aspects, some issues remain unaddressed by
marketing research at both theoretical and empirical level.
APPENDIX
There are four different age groups, which are 15-30, 30-45, 45& above
and this the age slabs of my sample.
Do you go for Online marketing? A. Yes B. NO
If yes, then why
A. Less time consuming
B. Variety of collection
C. Less spend of money
D. Other reasons (Specify)
If no, then why
a. Touch & feel
b. Trust Issues
c. Behavior
d. Other reasons (Specify)
Are you aware of the “Big Billions day sale” or same like promotional
campaigns?
a. Yes
b. No
If yes, from where are you get the news?
a. Newspaper
b. TV
c. Online Advertisement
d. Others (Specify)
Are you watch any of the online ads in your mobile?
a. Yes
b. No
In online market what are you buy mainly? (any specific reason)
a. Apparel
b. Books
c. Electronics
d. Food