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A

Live Project
On
Influence of Online Marketing on Start-ups

In

Business research Methods

IN PARTIAL FULFILLMENTOF THE REQUIRMENT OF THE AWARD


FOR THE DEGREE OF
Master of Business Administration
UNDER
Lovely Professional University, Punjab
(Session: -2019-2021)
Influence of Online Marketing on Start-ups

Introduction:
startup companies faced a number of strict decisions for marketing their companies. They had
to determine product features and quality, establish services, set the price, determine the
distribution channels, decide how much to spend on marketing and able to decide how to
divide their resources among advertising, sales force, and other promotion tools. sometimes
over investment could not benefit the startups like making budget only on Facebook before
figuring out the audience presence in Twitter and LinkedIn.
Startup companies are utilizing its maximum sources to be derived in social media platforms
with less budget and efforts compared to traditional marketing. Social media for startups has
become good marketing opportunity and increasing more priority day by day. In fact,
platforms like Facebook and Twitter have become important parts of content distribution,
lead generation and brand awareness with customer acquisition strategies for businesses. This
is truly helpful for startups working with smaller budgets and more gain in ROI. However,
despite its importance, very few startups and new ventures understand how to maximize the
potential of social media.
Online and social media have become inseparable parts of everyday lives. People keep
spending an exceeding amount of time on their smartphones, desktop computers, and tablets,
being connected to the Internet almost 24/7. Facebook and Instagram are the most popular
places for connecting, communicating and spending time.
Therefore, this has changed the way marketing is done, as there has been a move from
billboards and newspapers to digital, online and social media. Businesses have moved online
because it is important to be where the potential customers. Traditional media is still
considered to be an important part of marketing. It has become more important to be involved
in the lives of customers, and being connected with them. In order for a business to stand out
and be successful, they have to understand the essence of those online channels as well as
their own objectives.
The aim of study the importance of using Facebook, Instagram and a company's’ website for
small businesses and start-ups in the most effective and strategic way for marketing, how to
create a holistic marketing and using marketing ideas from people in the industry. The focus
is to offer ideas and viewpoints to a young company that has decided to take advantage of
online media possibilities, to help understand the strategic importance behind an online media
marketing from the perspective of people working on the field. More certainty the way social
media and a company’s own website work together holistically and the benefits of integrating
Facebook and Instagram for a business.
Secondary Data:
Secondary data is data information that has been collected by experience people, report and
internet sources. It is free or cheaper price to collect through social media like Facebook,
Instagram, company website research paper. It is used to collect data for influence of online
marketing on startup.
In present study, researcher has used published and unpublished sources of secondary data.
Secondary data was collected to provide the dissertation with necessary theoretical back up.
Information related to IMC, online marketing & its implication etc. was collected through
various secondary sources such as research journals, reference books, business magazines
and content sharing websites.

Tools to Measure for Collection of Secondary Data:


There are at least 25 practicable startups can use to evaluate the success of social media
efforts. Startups can gather meaningful acceptance from which they can plan future strategies
and implementations.
Know your demographic social media usage by locals, there could be interesting finding for
example a research study shows 56% of Americans have a profile on a social networking site.
This will really help you to make your presence on social media as 56% of people on social
networking sites by which you can promote your business online.

Social Networking Category No. of Users


Site
Facebook Photos,blogs,apps,videos 1280000000
Twitter Micro blogging, updates 645750000
LinkedIn Business and professional networking 2000000000
Shina Weibo Social micro blogging site 3000000000
Tumblr Social networking website 226950000
Pinterest Online pin board for organizing and sharing 6000000000
thing
Instagram Photo and video sharing site 150000000
Flickr Photography related networking 32000000

Concept of Online Market on Startup:


When it is a startup and has recently entered into the market, it is important to identify
different marketing tools to be able to create a comprehensive marketing plan to reach its
target market. it is important to understand what a startup is.
This is definition of a startup or as described in USLegal Inc. (2013),
“A startup is a company with a limited operating history. These companies, generally
newly created, are in a phase of development and research for markets”.
Online Marketing:
Online Marketing is the art and science of selling products and services over digital networks,
such as the Internet and cellular phone networks. Online marketing uses internet to deliver
promotional marketing messages to consumers. It includes email marketing, search engine
marketing, social media marketing, many types of display advertising (including web banner
advertising), and mobile advertising. Like other advertising media, online advertising
frequently involves both a publisher, who integrates advertisements into its online content
and an advertiser, who provides the advertisements to be displayed on the publisher's content.
Other potential participants include advertising agencies that help generate and place the ad
copy, an ad server who technologically delivers the ad and tracks statistics, and advertising
affiliates who do independent promotional work for the advertiser.

Growth of internet users must be credited for the growth of online marketing. With the advent
of internet technology number of internet user is increasing at the greater extent across the
world. India stands at second place with 560,000,000 internet users in 2019.
Online marketing refers to a set of powerful tools and methodologies used for promoting
products and services through internet. Online marketing includes a wider range of marketing
elements than traditional business marketing due to the extra channels and marketing
mechanisms available on the internet.

Online Marketing Strategy for Boost the Startup Company:


A startup should understand that Online marketing is not limited to social media platform.
There are multiple channels like PPC (Pay per click), Blogs, Email, SEO (Search Engine
Optimization). With the help of email marketing one can explain about the product in detail.
One can display the ads on various search engines.
Online marketing strategy include social media marketing, email marketing, display
marketing, content marketing and mobile marketing by effectively implementing these
marketing techniques, the startup can boost its brand presence and thus increase the brand
value.
Online marketing enables the startup to run campaign specifically targeted at right audience.
This ensure you reach your end customer in the most cost effective manner possible. It is
best way by which a brand can interact with potential customers. It connects you with the
customer directly and allows you to engage with them in real time. it opens a way for
conversations, discussion and feedback. It gives customers a sense of personal connection
with brand/business.
There are many tools include that:
1. Social Media Marketing:
Social media marketing has many advantages for startups and established brands. it will
lead to increased traffic, better SEO, improved brand loyalty, healthy customer
satisfaction and much more. The effect of social media on the development of new
startups is strong to the point that it has been received as the real sources of
correspondence with buyers. Social media platform provides a many number of followers
searching for products and services.
More startups engage with them on the social platform the more the customers will
associate with the brand. A startup should always focus on quality rather than quantity.
hence benefits should be valued such as providing something useful, shareable and
interesting for the consumers. 

2. Email Marketing:

Email marketing has always been a subset of the online marketing strategy but its
significance is not realised by marketers to a great extent. email marketing is a way
for startups to reach a new audience and maximize profits. Not only does this digital
strategy allow a startup company’s promotional emails to stand out in a consumers
overflowing mailbox, but it is also important in turning ‘sometime shoppers’ into
loyal customers. It can take advantage of in order to increase traffic on your website
and turn bored viewers into loyal customers.

3. Content Marketing:
Content marketing is one of the most common strategies within startups due to their
short marketing budgets. It is the practice of creating and promoting content (blog
posts, guides, visuals, videos, free tools, quizzes, email newsletters, and almost
anything that can be consumed) to earn traffic, brand awareness, trust, and
hopefully, eventually, conversions from your audience.

4. Mobile Marketing:

Mobile marketing is different from other methods of marketing because it lets


businesses get directly in front of customers on devices they use all the time
smartphones and tablets. From mobile check-ins to text messages, to emails and
social media, mobile marketing can help startups and small businesses boost sales
when they send coupons or offer discounts, sales, or promotions to customers.  It is
smart to reach out to customers on the devices they constantly have in their hand
that is why mobile marketing impacts both online shoppers and walk-in customers,
too.

5. Display Advertising:

Display advertising conveys its advertising message visually using text, logos,
animations, videos, photographs, or other graphics. Display advertisers frequently
target users with particular traits to increase the ads' effect.

6. Web Banner Advertising:

Web banners or banner ads typically are graphical ads displayed within a web
page. Banner ads can use rich media to incorporate video, audio, animations,
buttons, forms, or other interactive elements using Java applets, HTML5, Adobe
Flash, and other programs.

7. Search Engine Marketing (SEM):

Search Engine Marketing, or SEM, is designed to increase a website's visibility in


search engine results pages (SERP). Search engines provide sponsored results and
non-sponsored results based on a web searcher's query. Search engines often
employ visual hint to differentiate sponsored results from organic results. Search
engine marketing includes all of an advertiser's actions to make a website's listing
more prominent for topical keywords.

8. Search Engine Optimization (SEO):

Search Engine Optimization, or SEO, attempts to improve a website's organic


search rankings in SERPs by increasing the website content's relevance to search
terms. Search engines regularly update their algorithms to punish poor quality sites
that try to game their rankings, making optimization a moving target for advertisers.
Many vendors offer SEO services.

Research Gap:
Research gap is research question on problem which has not been answered appropriately or
at all in a given field of study. Research gap is actually what makes your research publishable
Because it shows you are not just duplicating existing research.

Literature Review:
There is many research published like:
1. Suresh Reddy 26 has published articles in India journal of marketing. Title of
article is” impact of e-commerce on startup”.
Marketing is one of the business function most effected by emerging information
technologies. Internet is providing companies new channel of communication and
interaction to different target customers.it can create closer yet more cost effective
relationship with customers in sales, marketing and customer support. Companies can
use web to provide ongoing information, service and support. It also creates positive
interaction with customers that can serve as the foundation for long term relationship
and encourage purchases.

2. Neelika Arora published research article entitled “trends on online advertising


“in startup:
The global online advertising revenue are expected to touch US $10 bn by 2010.in
India, the revenue at present are estimated to be Rs. 250 cr. And are expected to
increase six time more within the next five years.
In India internet as a medium is accepted by a wider industrial segment that includes
automobile, telecom, education and banking.

3. Vikas Bondar has published his article on” sales and marketing strategy”.
Online marketing is really good thing. The internet gives people a greater amount of
information as we need. it is the best way to get a comparison of the product that we
need. If we are interested in buying. It is best for us to check the websites. Also we
would like to make our own web page we can do this, without paying a lot of money.
year after year we get more and more new interesting information and in the future
the internet use will increase more than now.
This article explains how online marketing useful tool for advertisement of startup
company.

4. Ms. Sisira Neti (Asst. Professor of Business Management Department) PPG


Centre, Lal Bahadur College Warangal:
Online marketing today is among the best opportunity available to brand for
connecting with prospective consumers. These new media win trust of consumer by
connecting with them at deeper level. Marketers are taking of many different social
media opportunities and beginning to implement new social imitative at a higher rate.
Online marketing and startup business that utilize it have become more sophisticated.
One cannot afford to have no presence on social channel if the competitor is making
waves with its products and services. Global companies have recognized online
marketing as a potential marketing platform, utilized them with innovations to power
their advertisement campaign with social media marketing. this article is discussing
about the concept of social media tool and online marketing, strategies of online
marketing and also described overview on online marketing in India.

5. Larry Weber, Co-author of The Digital Marketer states his experience


as, “Social tools are definitely worthwhile for startups.
Everyday a new brand or company is launched. For an individual it becomes tough to know
which product or services is better. Startup companies must be aware that the most cases they
compete with thousands of business when they launch their new start-up.
Startups focus on their marketing strategy but majority of them fail within two years of their
launch. Online marketing can big support for startup as it is a cost effective way of building
brand awareness, generating traffic and creating a customer base. hence for startup the best
form of marketing would be online option where not much investment is needed. opting for a
space in a newspaper and television could be very expensive for startup as compared to going
the online route.
Online marketing is not limited to social media platform. There are multiple channels like
PPC (Pay per click), Blogs, Email, SEO (Search Engine Optimization).

Problem Statement:
The purpose of the research is to understand and explain what is important in using online
media for business purposes for start-ups. More exactly how social media and company’s
own website work together holistically and what are the benefits of each of those for a
business. It also helps to understand the strategic importance behind an online media
marketing for a company. A person who has a company and has a need or decided to take it
up to the next level and would like to use those offered media possibilities. The focus is to
offer ideas and viewpoints that are important to understand before beginning with the journey
from the perspective of people working on the field.
Problem:
This study focuses on following problems –
1.What are the important indicators of a website and how to get more out of your own
business website?
2. What is the role of Facebook for start-ups companies and how to use it for business
purposes?
3. What is the role of Instagram for start-ups companies and how to use it for business
purposes?
4. How do videos, images and content affect people on social media platforms?

Research Objective:
Based on the above research problems, the research objectives are as follows-
1. To understand the importance of own website of startup company.
2. To understand the importance of brand awareness of startup company.
3. To understand the importance of Online advertising in changing market scenario.
4. To understand the reasons for growing popularity of online marketing.
5. To analyse the effectiveness of online marketing as compared to traditional
marketing tools.

Research Model:
Based on the theory we have created a theoretical model and the continuation will be focused
around this framework. The model provides linkages for the use of social media as a
marketing tool for start-up companies.

Marketing
 Lower Cost  Reach
 Tools &
 Interactive  Awareness
platform
and Engaging  Visibility
 Technology
 Scalable  Relationship
 Communicati
Social Media Start-Ups

The model above shows the relationship between social media, marketing and start-up. Social
media is a powerful marketing tool provided to start-up looking to increase their reach and
interaction with customers.
The concept of social media has brought the tools and underlying technology, which provide
start-ups with the interface to continuously converse about their products and services. Using
the social media tools and technology such as Facebook, Twitter, and YouTube for social
sharing of content, videos, and images, start-ups can market at a lower cost. Social media is a
great platform for two-way communication. It allows consumers to discuss ideas, post
comments, ask questions and share links. This facilitates open communication, leading to
enhanced information discovery and delivery. The start-ups expect their marketing effort to
be cost effective, interactive, engaging and scalable to a large audience. This is because they
would need better and faster reach to create awareness and visibility to offering and to build
long lasting relationships with customers.
Social media comes in many forms but main focus is on the most popular: blogs, microblogs
(Twitter), social networks (Facebook, LinkedIn) and media-sharing sites (YouTube).

Example of Startup Company:


1. Emmy’s Closet Company:
Emmy’s Closet is an online store that sells accessories for children. Emmy’s Closet is an
extension of the popular arts and crafts ecommerce site, Etsy.com. The start-up has developed
a strategy of infusing social media with e-commerce. The tools used are blogging and
Facebook.
Etsy has created an application which allows customers to browse and purchase directly
through Facebook. They have also included social share buttons so fans can share their
favourite items on their Facebook profile. The share buttons create a viral buying experience.
They have also included social buttons on the blog to reflect their brand, which makes the
entire social experience more personal.
The results are 2421 likes on Facebook, Etsy website 1813 sales and 462 compliment, blog
page contains 622 members.

2. Hokey Pokey:
Hokey Pokey is a premium ice cream brand which gives the freedom to create your own ice
cream by selecting a flavour & mixing it with various add-ons.
They followed a seven-step process to develop their online social strategy.
a) Monitor social media conversations, identify influential individuals who can spread
message.
b) Identify the factors shared by influential individuals, locate, recruit &incentivize those
influencers who have interests relevant to the campaign the social media tools that they
use are Facebook, Twitter.
c) Hokey Pokey features morning news network on their Facebook page where they share
wonderful stories every day. They also share cute and funny pictures as well as posts
on their brand page. Initially when they got on Twitter they just monitored and listened
to people’s conversations.
d) They would listen to the chatter on Twitter and react to any opportunities. If someone
says they had a great dinner, they would recommend an ice cream dessert at a nearby
branch.
e) The company then identified influencers and started speaking to them. They also
invited a few followers to try their ice cream.
f) Hokey Pokey’s social media campaign resulted in substantial increases in brand
awareness, social media ROI and sales revenue growth rate for the company. Hokey
Pokey has over100,000 likes on Facebook.

Importance Research Model:


1. Evaluate your Social Media Strategy Regular
Make new ideas for your startup, companies can get upset and making a good growth in less
time. If you have a good social set up figure and schedule regular checks for all your channels
to maintain a regular presence.

2. Plan and Choose the Right Social Networks for your Business
It is not advisable if any one of the social networks is not the right platform for your business
of many. Facebook may have over a billion users, but if your potential audience is not a big
part of that user base, it cannot be the right social network for your startup. You have to find
the target age group of your audience, the location of your business, and the nature of your
services in the right way. Business sites like LinkedIn, Influence & Co. Dynamic Signal, Hub
Spot will help your business in well-mannered way.
3. Customer Interaction with Social Media
Having an open line or face to face of communication with your clients could be important
and your ability to respond to their comments and suggestions about your products or
services can make a deal or break a deal for your startup. Respond to your clients with a
customer support on social media platforms. “The Conversation Is Transparent” this will
make potential customers get to see how well you handle the situation.
4. Utilize Human Resources on Social Media
Online audience is not limited to potential customers. Startup should recruit a fast, talented
individual to join the cause. Create some post by which a dedicated Marketer will work on
Social strategies of the company. Utilize social media to drive resources from across the
places.
Recently a recruitment company has taken a sample of 1023 verified veteran participants
over a period of 24 days for the advertising price of approximately US $7.05 per verified
veteran participant. This could be one of the efficient sources of advertising by which one can
get desired results; they found that Facebook can be an adequate method of obtaining samples
of veterans in need of care.

Research Hypothesis:
Hypothesis testing is the process of making an observation, forming a question based on the
information that you have gather, and attempting to solve that problem using the scientific
method. A hypothesis is an assumption or a statement that may or may not be true. The
hypothesis is tested on the basis of information obtained from a sample. Hypothesis tests are
widely used in business for making decisions.
In this study startup owner have share the ten post related to product, feature and brand
awareness on blogs through social media. two are highly successful. They receive a ton of
view, experience extended time on site and they are shared on various social channels.

Formulation of Hypothesis:
Hypothesis testing is to set up two hypotheses instead of one in such a way that if one
hypothesis is true, the other is false. Alternatively, if one hypothesis is false or rejected, then
the other is true or accepted.
These two hypotheses are:
(i) Null hypothesis(H01)-there is no significant relationship between monthly income
and product preference to buy through online market.
(ii) Alternative hypothesis(H02)- there are no significant relationship between target
customer and product buy through online market.

Results and Interpretation:


After collecting data from respondents with the help of structured questionnaire, following
are the results interpreted. Data of Responses from Online Buyers Several questions were
asked to the respondents on their Age, Monthly Income, Occupation, etc. for understanding
their profile and responses. The table below is the interpreted on the basis of the responses.
Responses from Online Buyers.

Category No. of
Respondents
Gender Male 73
Female 27
Total 100
Age Below 18 years 15
18-30 years 28
31-45 35
Above 45 22
Total 100
Profession Employee 42
Business 25
Student 6
Housewife 19
Any other 8
Total 100
Monthly Income Below 10000 38
10000-25000 24
25000-50000 10
Above 50000 28
Total 100
Frequency of online Once annually 13
purchaser 2-5 purchase annually 47
6-10 purchase annually 25
Above 10 annually 15
Total 100

Reason for online Easy buying options 35


shopping Wide variety of product 22
Various method of 17
payments 21
Lower prices 5
Others 100
Total

From which Online Social media 25


Market you bought Websites 26
products Emails 18
Advertising 22
Others (SEO, SEM) 9
Total 100
What kind of Convenience Goods 15
Product you would Shopping Goods 72
prefer to buy Specialty Goods 13
through online Total 100
market?

Chi Square Test: Relationship between monthly income and product preference to buy
through Online Market for Startup.
To Study the Relationship between monthly income and product preference to buy through
online market,
Relationship between monthly income and product preference to buy through online
market.
Convenience Goods Shopping Goods Specialty Goods Total

Below 10000 7 29 2 38
10000-25000 4 18 2 24
25000-50000 3 3 4 10
Above 50000 1 22 5 28
Total 15 72 13 100
The data can be easily interpreted from the above table. Hypothesis testing is done to be more
précised.
H01: There is no significant relationship between monthly income and product preference to
buy through Online Market.
According to the calculation, calculated chi-square statistic is 15.2929. The p-value is .
018097. The result is significant at p < .05, with 0.05 level of Significance.
Hence the null hypothesis is rejected and there is a significant relationship between monthly
income and product preference to buy through Online Market.

Chi Square Test: Relationship between target customer and product buy through
Online Marketing
To study the relationship between target customer and product buy through Online
Marketing.

Relationship between professions and product buy through Online Marketing.


Social Websites Email Advertising Others Total
Media s
Below 18 6 2 2 3 1 15
years

18-30 years 6 10 5 5 4 28

31-45 years 7 11 9 5 3 35

Above 45 6 4 2 8 1 22
years

Total 25 26 18 22 9 100

The data can be easily interpreted from the above table. Hypothesis testing is done to be more
précised.
H02: There is no significant relationship between Customer Satisfaction and product buy
through Online Marketing.
According to the calculation, calculated chi-square statistic is 41.459. The p-value is .000475.
The result is significant at p < .05, with 0.05 level of Significance.
According to above analysis, Null hypothesis is rejected. In other words, there is significant
relation between target customer and buying the products through Online channel.
Research Methodology:
The study is based on the secondary data which has been through journals, magazines,
newspapers, research papers, books and websites etc.
The used methodology is qualitative with a focus on different case studies of start-up
companies. The reason for choosing case study as a research method is to market
environment and special subject in detail. Case studies are particularly useful where one
needs to understand a particular problem or situation in great depth and where one can
identify cases relevant information.
As a method it is applied to real business situations and its focus on investigating a
contemporary phenomenon within its real-life context. This study uses start-up from various
sectors to get a broader idea of marketing strategy usage of social media. Multiple cases
enable comparisons that clarify whether an evolving finding is simply exclusive to a single
case or consistently. They also enable broader exploration of research questions.
In the present study, it has followed Descriptive research. Descriptive research is usually a
fact finding approach generalizing a cross sectional study of present situation. The major goal
of descriptive research is to describe events, phenomenon and situations on the basis of
observation and other sources. This study is based on survey method.

Survey Method:
The survey method is the technique of gathering data by asking questions from people who
are thought to have the desired information. Every effort should be made to state the
objectives in specific terms.
The survey design can be defined as: “gathering information about a large number of people
by interviewing a few of the people. The definition can be modified by determine that
collecting information with other data collection alternatives available to survey researcher in
addition to interviewing i.e. questionnaire, personal observation trends that are developing.
Thus in surveys variables that exist or have already occurred are selected and observed.
Surveys are conducted in case of descriptive research studies with the help of questionnaire
techniques in most appropriate manner. Survey type of research studies usually have larger
sample. It is concerned with conditions or relationships exists, opinion that are held,
processes that are going on effects that are evident or trends that are developing. Thus in
surveys variables that exist or have already occurred are selected and observed.

Data collection:
Data collection means to a collect gathering of information relevant to the subject matter of
the study from the units under research.
In this study, startup owner has used published and unpublished sources of secondary data.
Secondary data was collected to provide the dissertation with necessary theoretical back up.
Information related to online Marketing startup strategy, online marketing & its implication
was collected through various secondary sources such as research journals, reference books,
business magazines and content sharing websites.

Sampling Method:
Sample selection is undertaken for practical impossibility to survey entire population by
applying rationality in selection of samples we generalize the findings of our research. But
practically considerations of time and cost almost invariably lead to a selection of
respondents called sampling techniques. A sample design is a definite plan for obtaining a
sample from a given population.
In this study startup owner has used stratified probability sampling with -
 Sample size: Sample size is elected on the basis of discussion with online connectors
who is establish startup business through online market.
 Area covered – social media platform
 Sample frame – target customer

Data Analysis Tools for Research:


To analyse data collected through structured questionnaire researcher used statistical software
SPSS 17.0 and Ms-Excel Add-In Data Analysis. Statistical tools used for the analysis are
Mean, Median & mode, Standard deviation, Skewness & Kurtosis.

Validity of the Data:


The approach of content validity was used in order to verify whether the context of measure
covers the full domain of the content. It helped to assess how items used in the survey
represent their context domain and how clear they are. Verification made to assess whether
questions asked to the respondents covers all the necessary details related to dissertation
topic.
In this study adopts descriptive research design and undertakes the survey method with
questionnaire as a research instrument in order to collect primary data required in the
research. Stratified probability sampling is the sampling technique used to select the
appropriate sample. And content validity issued for the verification of data.

Conclusion:
As a startup company, it is no longer an option to ignore social media as a means of
communication, promotion and possibly even recruitment or revenue. That’s true for any
business new to the internet, as well. However, diving head-first into an ever expanding
platform of social media networks can feel overcome at best. Each platform has not only a
unique audience of users, but also its own natures when it comes to usernames, imagery and
usage.
Startups need to implement better social media strategies which will help one to reach and
engage existing and potential clients, in other way spreading the word about products and
services in the market. In today’s global connectivity, before making the decision on their
purchase they are connecting the internet world to check online reviews, comments etc., and
also seeking recommendations from friends and family, it is in the best interest of most
startup companies to have a dynamic and engaging social media presence.
We should understand that not all startups are getting successful. The successful startups
should and take to be flexible adequate to shift with changes in the technology and adopt the
internet and social climate. Whereas the failed startups, some of them fail due to an improper
vision strategy that they draw at the initial stage. Ultimately, there is a lack of foresight which
might have saved their companies. I should strong recommend that the startup companies
should adopt the recent trends and technology of Social Media platforms to make their
business long lasting successful enough.
There are approximately more than 2000 Social media platforms ranging from 200 followers
to billions of followers for each site, there is more potential market in future and hence it is
going to prove that social media marketing could place in high ranking of marketing
platforms for any business especially for a startup companies to move in fast paced
competitive world.

Bibliography:
1. Reference 1: www.cbinsights.com/blog/startup-failure-post-mortem/
2. Reference 2: Sadia Afzal, Javed Rabbani Khan. (2015). “Impact of online and
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Asian Journal of Management Sciences & Education, 4
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media-by-startups-wins-comment-from-richard-bracchi/
4. Reference4: K, J. P. (2013, March 15). How Startup Hokey Pokey Sells More Ice
Creams With Social Media. Retrieved from NextBigWhat:
http://www.nextbigwhat.com/how-hokey-pokey-used-social-media-to-increase-sales-
297/
5. Refernce5: Derek Iwasiuk. Key Challenges, Opportunities for Tech Startups in
Emerging Markets, Moneycontrol.com, 2016.
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Development and Competitiveness, 5(2), 70–86. Available from http://www.na-
businesspress.com/jmdcopen.html

CA3
Influence of Online Marketing on Start-ups

Research Methodology:
The study is based on the secondary data which has been through journals, magazines,
newspapers, research papers, books and websites etc.
The used methodology is qualitative with a focus on different case studies of start-up
companies. The reason for choosing case study as a research method is to market
environment and special subject in detail. Case studies are particularly useful where one
needs to understand a particular problem or situation in great depth and where one can
identify cases relevant information.
As a method it is applied to real business situations and its focus on investigating a
contemporary phenomenon within its real-life context. This study uses start-up from various
sectors to get a broader idea of marketing strategy usage of social media. Multiple cases
enable comparisons that clarify whether an evolving finding is simply exclusive to a single
case or consistently. They also enable broader exploration of research questions.
In the present study, it has followed Descriptive research. Descriptive research is usually a
fact finding approach generalizing a cross sectional study of present situation. The major goal
of descriptive research is to describe events, phenomenon and situations on the basis of
observation and other sources. This study is based on survey method.
Secondary Data Online Website

Area of Research Social Media Platform

Research Approach Survey Method

Scaling:
Scaling is the method of generating the continuous sequences of values, upon which
measured object are placed. In marketing research several scaling techniques are employed to
study the relationship between the objects.
Measurement of Scale:
Nominal Scale: It is measurement scale, in which number serve as tags or label to identify an
object. Its scale normally deals with non-nominal variables.
Ordinal Scale: It is measurement scale that reports the ranking and ordering of data without
establish the degree of variation between them. Data is quantitative which have occurring
orders and difference between is unknown.it can be named, group and ranked.
Scale used in the study for designing the questionnaires for survey:
In this study, we have used few divide into two part questions based on nominal scales of
measurement and also there are few questions which are completely on nominal scales for
measurement. we have also used ordinal scale of measurement for designing the
questionnaire for the survey and most of the questions are based on ordinal scale of
measurement.
Reason for Nominal Scale of Measurement:
There are few questions to which answers can fall only into either category. Using nominal
scale, a lot of responses can be collected in short period of time.
Reason for Ordinal Scale of Measurement:
Ordinal scale provides ease in comparison between n variables. Convenient to group the
variables after ordering them. We have used ordinal scale of measurement due to the simplify
of analysis and categorization.
 In this report owner of startup company is used ordinal and nominal scale for find the view
related to products and services. you could ask some audience in digital platform.
Example: Emmy’s Closet is an online store that sells accessories for children. Emmy’s
Closet is an extension of the popular arts and crafts ecommerce site, Etsy.com. The start-up
has developed a strategy of infusing social media with e-commerce. The tools used are
blogging and Facebook.
Etsy has created an application which allows customers to browse and purchase directly
through Facebook. They have also included social share buttons so fans can share their
favourite items on their Facebook profile. The share buttons create a viral buying experience.
They have also included social buttons on the blog to reflect their brand, which makes the
entire social experience more personal.
The results are 2421 likes on Facebook, Etsy website 1813 sales and 462 compliment, blog
page contains 622 members.
Statistical Tool:
To analyse data collected through structured questionnaire researcher used statistical
software SPSS 17.0 and Ms-Excel Add-In Data Analysis. Statistical tools used for the
analysis are Mean, Median & mode, Standard deviation, Skewness & Kurtosis.
In this report used the Chi Square Test statistical tool for data analysis.
Survey Method:
The survey method is the technique of gathering data by asking questions from people who
are thought to have the desired information. Every effort should be made to state the
objectives in specific terms.
The survey design can be defined as: “gathering information about a large number of people
by interviewing a few of the people. The definition can be modified by determine that
collecting information with other data collection alternatives available to survey researcher in
addition to interviewing i.e. questionnaire, personal observation trends that are developing.
Thus in surveys variables that exist or have already occurred are selected and observed.
Surveys are conducted in case of descriptive research studies with the help of questionnaire
techniques in most appropriate manner. Survey type of research studies usually have larger
sample. It is concerned with conditions or relationships exists, opinion that are held,
processes that are going on effects that are evident or trends that are developing. Thus in
surveys variables that exist or have already occurred are selected and observed.

Sampling Plan:
A sampling plan is basically comprising of different sample units whom you are going to
contact to collect market research data.
Sample Unit: Sample unit is representative of the total population, through it might be
fraction of total population.
Sample Size: Sample size is count the individual samples in any statistical setting, such as
scientific experiment or public opinion survey.
Sampling Method:

Sample selection is undertaken for practical impossibility to survey entire population by


applying rationality in selection of samples we generalize the findings of our research. But
practically considerations of time and cost almost invariably lead to a selection of
respondents called sampling techniques. A sample design is a definite plan for obtaining a
sample from a given population.
In this study startup owner has used stratified probability sampling with -
Sampling

Sample size : 100 Respondents

Sampling Method : Random Convenience sampling

Sample Unit : Online buyer

Measuring Tools : Questionnaire

Variables:
A variable is an event, idea, value or some other object or category that a business can
measure. Variable can be dependent or independent.
These variable is created by author ‘Hardik Panchal’ in 2018. After collecting data from
respondents with the help of structured questionnaire, following are the results interpreted.
Data of Responses from Online Buyers Several questions were asked to the respondents on
their Age, Monthly Income, Occupation, etc. for understanding their profile and responses.
The table below is the interpreted on the basis of the responses.

Responses from Online Buyers


Category No. of
Respondents
Gender Male 73
Female 27
Total 100
Age Below 18 years 15
18-30 years 28
31-45 35
Above 45 22
Total 100
Profession Employee 42
Business 25
Student 6
Housewife 19
Any other 8
Total 100
Monthly Income Below 10000 38
10000-25000 24
25000-50000 10
Above 50000 28
Total 100
Frequency of online Once annually 13
purchaser 2-5 purchase annually 47
6-10 purchase annually 25
Above 10 annually 15
Total 100

Reason for online Easy buying options 35


shopping Wide variety of product 22
Various method of payments 17
Lower prices 21
Others 5
Total 100

From which Online Social media 25


Market you bought Websites 26
products Emails 18
Advertising 22
Others (SEO, SEM) 9
Total 100
What kind of Convenience Goods 15
Product you would Shopping Goods 72
prefer to buy Specialty Goods 13
through online Total 100
market?

Questionnaire:
RESEARCH QUESTIONNAIRE
Respondent’s details
Name: ______________________________________
Gender: Male
Female
Occupation: Student
Service
Self employed
Age: Between 18 to 25
Between 25 to 35
Between 35 to 45
Email Address: ________________________________
Contact details: _________________________________(optional)
(Please tick √ in the box besides option/s matching your response)
1. Which of the following online marketing streaming application do you currently have an
account with? (Select all that apply)
Facebook
LinkedIn
Email
Select all

2. Which source do you refer the most to get awareness of various brands?
Print ads
Television commercials
In-store promotion
Outdoor media
Online media
3. Reason for online shopping
Easy Buying Option
Wide Variety of product
Various method of Payment
Lower prices
Others
4. What kind of Product you would prefer to buy through online market?
Convenience goods
Shopping goods
Speciality goods
5. When did you do online shopping?
In a week
Less than a week
Month
6. What is your frequency of being online?
Very Low Low Moderate
High Very high
7. Please indicate your purpose for using internet by ranking each purpose between the scale
of 1 to 5 (where, 1 is the most important and 5 is least important)
a. Social networks
b. Media sharing sites
(Video, photo, music sharing & Gaming)
c. Blogs
d. Podcasts & RSS
e. Collaborative websites
f. Other content sharing websites
g. Online shopping
7. Companies should use online activities in their marketing efforts.
Strongly agree Agree
No opinion Disagree
8. How important following factors are to motivate you to like the brand on internet?
Most Important Least Not
Important Important Important
 To receive discount
 To stay informed about
activities of company
 To get updates on
brands and its future extensions
 For fun, entertainments
 To get excess to the
exclusive content
9. Your feedback regarding online shopping: _______________________________

Reference:
1. Sadia Afzal, Javed Basheer. A.M. Al-alak. (2010). “Mobile marketing: examining the
impact of trust, privacy concern and consumers' attitudes on intention to purchase”.
International journal of business management.
2. Sadia Afzal, Javed Rabbani Khan. (2015). “Impact of online and conventional
advertisement on consumer buying behaviour of branded garments”. Asian Journal of
Management Sciences & Education.
3. Vishal Midha, Article- Impact of Consumer Empowerment on Online Trust: An
Examination Across Genders, Elsevier International Journal, 12(3), 2012, 198-205.
Rabbani Khan. (2015). “Impact of online and conventional advertisement on
consumer buying behaviour of branded garments”. Asian Journal of Management
Sciences & Education.
4. Segment. Retrieved from Use of Social Media by Startups Win Comment From
Richard Brachi: http://segment.com/use-of-social-media-by-startups-wins-comment-
from-richard-bracchi/
5. K, J. P. (2013, March 15). How Startup Hokey Pokey Sells More Ice Creams With
Social Media. Retrieved from NextBigWhat: http://www.nextbigwhat.com/how-
hokey-pokey-used-social-media-to-increase-sales-297/

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