Digital Marketing

Marketing on Mouse Click

Information/Data Sources
IRS : Indian Readership Survey R2 ¶07 TGI : Target Group Index, µ07 TRAI : Telecom Regulatory Authority of India, Oct¶07 COAI : Cellular Operators Association of India, Jan¶08 AUSPI : Association of Unified Telecom Service Providers of India, Jan µ08 IAMAI : Internet and Mobile Association of India Icube : IAMAI & Indian Market Research Bureau Report, Sept ¶07 Comscore, Jan¶08 Lintas Media Group Internet World Stats ISPAI : Internet service providers association of India Internet Evolution India stat Technorati McKinsey Global Survey Jan¶07

Marketing By Mouse Click
‡It has not taken long for the www to take over the living rooms of the world . People of all ages collect, compare & buy. ‡By 2010, according to a recent McKinsey survey among marketing managers worldwide, two-thirds of all consumers will download information from the Inter-net ,half of whom will call online services & compare prices & every 3rd person will make purchases on-line. ‡Whether advertising, sales, service, product development, or pricing, when it comes to marketing activities, companies can no longer circumvent the Internet. ‡Experts agree that digital media will become the center of the marketing mix of the future ‡Digital Mktg helps in tracking the customers purchase process from the initial awareness of the products and the desire to test the products & the services that follow.

Marketing By Mouse Click
‡Titan supports a host of Fan communities on social networking sites like facebook and orkut. Also seeks feedback on these sites dedicated to fastrack brand used to tweak brand positioning & sometimes even pricing. Preview of products to select fastrack fans. ‡HUL promotes sunsilk range of products through interactive website µsunsilkggangofgirls¶ hosted by bollywood star priyanka chopra. ‡HR depts are using the benefits of the social media for recruitment or more cohesive workforce. ‡There is at least one evangelist in every company in age group of 25-35 who is perhaps a blogger himself , pushing the concept of social media and online mktg internally. ‡Nike leverages social media by hosting popular communities on facebook , QQ (localized website in china). ‡Club force , official fan club of force India F1 team gets their fans to share their perspective , not just listen to what they have to say. ‡Growing trend of travellers choose holiday spots and air travel based on travel blog postings.

‡As per Market research firm Forrester Research demand for web 2. out of which 15. ‡IBM Blog central hosts 1400 + active blogs to initiate dialogues on emerging topics that are relevant to IBM. Ltd. This will help company make sales pitches and offer plant visits to customers across geographies.Marketing By Mouse Click ‡394 million people in age group of 16-54 watch video clips posted on the internet & 346 million active internet users read blogs & active internet users at 425 million according to Loadstar universal report. ‡In India there are 17.8 million users . ‡An automotive components company from India is building a virtual plant on second life that is up to scale by Anantara Solutions Pvt. . ‡There is a wealth of learning's and ideas floating around these sites.1 million users read blogs and watch online videos.0 tools such as wikis is expected to grow in 2008.

‡Cisco maintains a campus in second life and launched its new integrated services router there. ‡Start ups use social medias effectively like in case of online travel search engine . Ticket wala promotes intercity bus travel. ‡Marketers need to use social media to listen by building in tracking devices like RSS . Google reader and keywords to understand what customers are saying. ‡Senior Managers in India spend 3~20 hours a week on social media sites and blogs .Marketing By Mouse Click ‡IBM¶s live sales avatars based in India will now interact with customers both in Hindi and English on second life. .

but showcased that the participating athletes have µLenovo 2008 olympics Blogger¶.post their creations on personal web pages. ‡McDonald Corp focused on their maiden reality game µLost Ring¶ The game challenges players to solve mysteries related to the Olympics.Marketing By Mouse Click Olympics & Social Media« ‡Coca-Cola design the world a coke . consumers can upload photos on subject of Olympics and vote for prizes. ‡Panasonic photo contest . Their website did not host the blogs . digital effort invites consumers to design virtual Coke bottles .vote for favorite design . They can build their own bottle artwork galleries or display them in Coke gallery . ‡Samsung electronics had a video contest based on the torch relay . ‡Lenovo created blogs for 100 Olympic athletes.

‡Nike had a µcreative community¶ for sharing creative works. ‡Pepsi website celebrated µEveryone can be on the can for China¶ ‡Consumers can upload pictures or articles on their love for china.Marketing By Mouse Click Olympics & Social Media« ‡Volkswagen launched Honk for China Campaign . . Netizens who write about the torch relay passing their town could upload videos on VW official torch map website and receive µhonking badge¶ ‡China Mobile did a cheering for Olympics video share portal ‡Haier sponsored Olympics online µlove torch¶ relay.

‡ Their blogs give customers and readers (from over 100 countries) a better understanding of Kodak²from how their products and services can help them do more with their pictures to how the company's innovations are impacting our world.Kodak Clicks with Social Media Success ‡Kodak's blog provided readers a behind-the-scenes look at the people and a human perspective on the Games detailing experiences & sharing photos. µA thousand words¶ features stories of Kodak employees on a variety of topics with a focus of photographing & imaging. facebook. µPlugged In¶ features stories about Kodak products & services . ‡They have a Chief Blogger and employees share their stories there by increasing morale. twitter.¶Grow your Biz¶ features stories improving business. Flickr & Delicious ‡Kodak has three blogs . This also helped them build relationship with their customers. ‡Social Media is part of their corporate strategy. While many Olympic-focused sites detailed event results and medal tallies. They are engaged in social media like podcasts. . YouTube.

Within seconds. Companies can leverage transparency of the medium in order to measure themselves against competing offers & play to their own one is more impatient than the e-customer. product information can be obtained. Total transparency Nothing is a secret on the Internet. offers called up. For companies. and customer data analyzed. which would take days in an offline world. 2.Opportunities of Digital Mktg 1. prices changed. . prices & trade terms compared. It can't get any faster Just one click and services can be provisioned. the unbeatable speed of the Internet is a blessing and a curse in one no one can be served more quickly at the same time .

Online trader Amazon. .Opportunities of Digital Mktg 3. SK Telecom uses the Web for product tests. Even forums and blogs are well suited for marketing activities because certain products and services can reach interest groups in a targeted way. for instance. Customers up close Customers on the net were initially an anonymous quantity. 4. technical development meanwhile enables one-to-one relationships. permitting customized marketing. and Nokia. as shown in examples from Procter & Gamble. Apple. which was previously inconceivable. makes an individual selection of books for each customer. customers can even be involved in product development. which corresponds to their preferences. Audi lets its clientele develop their own infotainment systems. Always in dialogue On the Internet.

Consumer goods manufacturer Unilever featured the commercial ³evolution´ of the Dove brand on the video portal YouTube. Result: two million calls. Internet is now an essential sales channel for tourist Industry. the dissemination of the campaign would have cost ¼4 million. zero euros in media costs. Via classical advertising channels. and advertising also profits from the new net world.Opportunities of Digital Mktg 5. . from market research to advertising to distribution. Unbeatably cheap Direct connection to the customer keeps the budget low across all stages of the marketing process.

let alone financeable. Marketing managers could fish in a practically inexhaustible pool.Opportunities of Digital Mktg 6. . such surveys would be scarcely possible. Maximum reach Where does the pharma market researcher find a statistically sufficient number of people with rare illnesses? How do sociopolitical surveys come about with half a million participants? Without the Internet and its high reach right through all sociodemographic groupings.

Growth In Internet Subscribers (Inclusive Broad Band) In India Over 11 million internet Users in India By Mar 08 .

Market Share of ISP s In India BSNL with over 50% Of Market share amongst ISP s .

Internet Subscribers Technology Wise In India DSL Dominates the Technology with 3. .2 million subs by Mar 08.

.60% Africa Asia Europe Middle East North America Latin America/C aribbean Oceania / Australia WORLD TOTAL 955.204.800 Latest Data 51.257 384.630 578.065 197.90% 17.562 6.985. % Population Usage Usage Growth ( 2008 Est.632.304.50% 39.514.463.30% 48.361 24.331 1.10% 266.620.981.673 33.30% 2.480 360.401.The Internet Big Picture Internet Users WORLD INTERNET USAGE AND POPULATION STATISTICS World Regions Population Internet Usage.288 18.20% 406.284.80% 129.50% 21.776.00% 1176.800 108.30% 165.443 337.248 576.492 139.10% 21.000 105.068.90% 9.209 20.939.10% 305.065.40% 100.) 31-Dec-00 4.348 3.30% 73.206.10% 59.200 248. Followed by Australia & Europe.633.30% 15.50% Asia and Europe have 66% of the world users.50% 26.919 7.00% 2000-2008 1031. 800.676. Highest Population penetration is USA.096.538.50% 3.60% % of World 3.400 114.090.969 ( Penetration ) 5.167.765 41.00% 669. Asia has the highest number of users (578 million).091.

50% TOP 20 Countries constitute 76% of world users.20% 305.145.70% 9.2008) Chi U i S J I i G B zil U i Ki g F K S h I ly 253.000 34.40% 15.000.847 36.000 60.844 58.153.90% 76.632.40% 49.918.90% 162. .361 25.40% 70.20% 23.572 347.288.115.463.708.Country Wise Internet Users TOP 20 COUNTRIES WITH HIGHEST NUMBER OF INTERNET # Country or on Internet Users. Germany.000 y 52.548 2.120.80% 100.817.914 50.820.789 1.676.321 82.20% 21.327 34.000 391.969 94.388.90% 1.533.232. Italy are our Focus Areas too.288 284. Latest Data 1 2 3 4 5 6 7 8 9 10 TOP 20 Countries Rest of the World Total World Users Penetr tion (% Population) % of Wor Users Population (2008 Est.) User Growth (2000 .000. UK.00% 4.000. India.740 6.713.70% 2.000 220.

In the Social Space India .

Social Network Profiles India Da V tor Month ( n 000 ) n que V tor A e Prof e 6 ( n 000 ) 12 26 7.869 44% 56% 21 0 14 31 34 26 27 33 e 20 20-29 30-39 40-49 India Sour e: T   9 ¤£¢ ¡   82 956 57% 43%   5 50+                   1.973   ¶07     .832 34% 66% 13 43 275 1.

28% of the ad spends India 6% 3% 1% 2% 2% 38% 48% Television Print Radio Outdoor Cinema Internet Internet India Sour e: LM & AMA E t mate ¶07 .Internet accounts for 2.

378 Search Contents Portal Contents Portal Contents Portal Social Networking Search Auction Videos Govt Site Job Portal Contents Portal Job Portal Job Portal Railway Booking Contents Portal Matrimonial Site eGreetings Finance site IT Downloads 410 306 479 349 337 347 220 183 229 472 224 126 336 87 Jan¶08 India .791 2.Market Snapshot Internet India Top 20 Websites Website Type Monthly Unique Visitor In (000) Yahoo.343 Msn Rediff.159 1.022 7. 123 greetings.327 Orkut Wikipedia Sites eBay Youtube 16.469 Sify BharatMatrimony.692 4.566 1.692 2.742 2.IN Naukri Indiatimes Timesjobs Monster Worldwide Indianrail.113 1.621 Daily Traffic In (000) 5.784 3.350 2.349 CNET Pvt Moneycontrol.757 3.832 5.924 1.388 11.138 4.169 2.

Ad nd .125 100% ud et rowth Rate for nternet advert n .250 ¦§¦  ¦©  ©  ¦§¦  ( n R .Ad Spends Forecast India ¦ ¨§ ©§ ©¦  R 399. Cr ) In r Gr w R In r ¦ ¨§ ¦¨§ ©§ ©¦  ¦ ¨§ ¦© § § ¥ ¦¨§ Ad nd (E m d) I) Ad nd II) B dg E . Ad nd I) Ad nd II) B dg Gr w     ¦ 2007 Onl n ¥ 2008 Onl n 2009 Onl n ©§ ¥ E .9 181% 100% 1.rate of rowth n the hare of nternet advert n n tota med a pend India Sour e: AMA E t mate from 2004 ¦©  ©  69% 2.

User Profiles India Predominantly Male and below 29 years Predominantly Male and below 39 years 23% % 0% % 0% 77% A e reak up 30 2 20 1 10 18% 82% A e reak up % 000- '  $ Ag B ow 5 5- 5- 50 o Abov e Belo 1 1 -19 20-24 2 -29 30-39 40-49 India Sour e: RS R2 µ07 )% ( ( ( ( &% " "   # # ! ! "! !    0% 0 0 or ove .

2 84.9 mn 6.7 mn 22.7 17.4 17.2 mn 60% 40% 20% rti l l om Belo 20 20-29 India 81.6 82.3 82.9 18.2 mn 41.6 % 82.4 Sour e: T ¶07 03 T 31 E A irt n fo n l r 30-39 40-49 12 li t 12 0 21 1 12 0 1 1 0 Bh R BS NL T 00 0% Vo d ID EA Ai r Sp i M TN L BP L 50+ .8 18.4 79.8 15.6 mn 3.1 19.7 83.5 mn 21.1 100% 80% A e Prof e 57.6 23.4 76.2 81.9 80.4 mn 42.9 mn 3 mn 1.3 16.User Profiles: Mobile Tota Sub r ber 17.1 mn 33.6 20.

1 2 3 4 .27% 17.Cellular Operators Market Shares Group ompany wise % market share .69% 1. B me f rti Airtel m y t lS ig res % M rket S 2078007 0950365 37916116 28248346 12475529 8080454 4197250 3537248 1439956 218923271 re 32.92% 23.70% 3.90% 5.66% 100.62% 0.32% 12.00% Vodafone Essar BS I EA Air el 6 7 8 9 Reliance elecom S ice M BP All India India .92% 1.July'2008 Sl.

C ennai.Cellular Coverage By Service Providers Ai c l Di ili Ai c l i it i i it H . Kerala. Karnataka. Kolkata. amil adu. Bi ar. Haryana. . And ra rades . ujarat. ast. Kerala. ajast an. ammu Kas mir. amil adu Mumbai. ujarat. rissa. Haryana. unjab And ra rades . amil adu st B arti Cellular imited B Cellular imited Vodafone ssar Idea Cellular imited eliance elecom imited S ice Communications imited Del i etro). rissa.Kerala. Mad ya rades Assam. W). Ma aras tra. unjab. Del i. C ennai etro). West Mad ya rades . ujarat. Karnataka. Himac al rades . C ennai. . Mad ya rades . And ra rades . U West). U. ad ya rades . West Bengal Mumbai Metro). U ast). Himac al rades . ort Bengal Karnataka. a aras tra oa. Ma aras tra oa. unjab India . umbai etro). U. Kolkata. j st . Kol ata etro).

‡Online games include both games played on dedicated game consoles that can be networked and ³massively multiplayer´ games. knowledge. ‡Podcasts are audio or video recordings a multimedia form of a blog or other content. ‡Social networks allow members of specific sites to learn about other members¶ skills. talents.Emerging Vehicles Digital Marketing ‡Blogs (short for Web logs) are online journals or diaries hosted on a Web site. . such as iTunes. They are often distributed through aggregators. Some companies use such systems internally to help identify experts. which involve thousands of people who interact simultaneously through personal avatars in online worlds that exist independently of any single player¶s activity. or preferences. Commercial examples include Facebook and MySpace.

are highly social. such as Second Life. for example. ‡Web services are software systems that make it easier for different systems to communicate with each other automatically to pass information or conduct transactions. ‡Widgets are programs that allow access from users¶ desktops to Webbased content.Emerging Vehicles Digital Marketing ‡Virtual worlds. such as Wikipedia. Wikis. are systems for collaborative publishing. A retailer and supplier. might use Web services to communicate over the public Internet and automatically update each other¶s inventory systems. . threedimensional online environments shaped by users who interact with and receive instant feedback from other users through the use of avatars. They allow many authors to contribute to an online document or discussion.

com) .Social Network sites ‡Second Life ‡Linkedin ‡Orkut ‡Flickr ‡Face Book ‡Virtutal World ‡Wyn ‡Hi5 ‡Fropper ‡My Space ‡Twitter (Micro Blogging ) ‡You Tube ‡Delicious ‡Plurk (plurkshop.

by occasionally sharing links to their online content.E-mail. Twitter is especially suited to promoting an online contest It can also be used as an additional sales channel: Dell's Twitter account DellOutlet has generated around $500. ‡ Consumer User Forums ‡ User generated Media ‡Alternate Sales & Service channels through internet portals . call centers (tele services) ‡Price Comparison Portals like billiger. web-2.0 tools :Web 2. Branded sponsorship.000 in sales by offering special discount . Display Ads ‡RSS feeds : A set of daily news/features circulated through mail by HTML or text format to the TG ‡Photo Sharing. Referrals ‡Video ads.0 tools.Other Digital Marketing tools ‡Paid Keyword search . Finance Scout24 ‡Micro Blogging sites can be used as an alternate marketing channel as a means of promotion. Fan Communities. Opodo.0 tools are internet tools that allow multiple users to share data using the internet as a Video Sharing. Search Advertising ‡Web 2.

and on which ones companies plan to spend more. how they¶re being used. .A survey of marketers from around the world shows where online tools are most important.

Usage & Importance of DG tools In 4 out of 5 major activities under mktg .majority of executives say that online or atleast some what important. .

Digitizing Sales & Service Service Leads Now .

.Current Usage Vs Spending Frequent users of digital tools used the mix of all the tools.

Becoming More Digital by 2010 .

companies already using this are more likely to do this.Becoming More Digital by 2010 Search advertisements considered to be efficient rank 3rd. but respondents say they are likely to increase spending here. Half of respondents say that they run integrated online and offline campaigns. .

Ease of measurement is one of the key selling point for vehicles like paid key search.Adoption Barriers More than half of the current users see insufficient metrics as a barrier. .

The reasons vary notably by industry: respondents in both financial services and manufacturing. involving customers in the use of collaborative design tools. about a quarter do so frequently. focus on testing concepts and screening ideas.say that their companies use some kind of collaborative or interactive tool to advertise. About 22 percent are using these tools for customer retention. . At the simplest level. 22 percent of respondents say that their companies host user forums for customers to help one another. for instance. while those in high tech focus on generating new ideas. which fits into the common under-standing that they help build relationships between customers and companies. ‡Over half of those whose companies advertise online . and customer service. ‡Some two-thirds of all survey respondents use online tools to involve their customers in product development. product development. or testing how well products sell in virtual worlds.Collaborating with customers ‡Collaborative tools such as blogs. such as initiating discussions in blogs to test ideas. and social networks are being used in advertising. ‡Further. wikis. for example. 31 percent of all the survey respondents are using collaborative product-development tools.

Role of Digital Tools in 2010 Response in % for question on what percentage of customers in that industry use For these activities. .

This is because marketing managers did not expect customers to print out several coupons for free coffee. users depicted Chevies as gas-eating monsters and also associated them with the war in Iraq. 2. Creativity of consumers¶ online distortion of marketing campaigns was something bitterly experienced by automobile manufacturer Chevrolet. Marketing managers are thus well advised to test planned campaigns in advance and carefully check their impacts in scenarios. cost the coffee house chain Starbucks both money and reputation.Risks of a Digital Marketing 1. which was launched online. . Image damage due to anti-campaigns The digital future companies will have to admit much more of the disadvantages and weaknesses of their products. In their homemade commercials. A coupon campaign. Irony: Chevrolet itself had launched the competition and even provided its own commercial for creative processing. Incorrect implementation Companies who rashly put undeveloped marketing campaigns on the Internet must often pay dearly for this.

Dilution of positioning Companies positioning their brands on the net differently than in the real world. . Moreover. the company is diluting its overall positioning on the market. This confuses the buyer.Risks of a Digital Marketing 3. even for the Web presentation. Here. who no longer finds the product in the store that has been promised to him or her on the Internet. it is important to consistently maintain the product image across all media and not to shift from clear positioning.

careful analyses. With systematic planning. The jump on the digital marketing bandwagon therefore also means that the marketing mix is becoming more complex. and the failures greater. not least through the provision of corresponding financial means.Risks of a Digital Marketing 4. particularly if the competition is already offering these elements. Correctly assessing and weighing up the opportunities and risks of digital marketing will be the challenge of the future. the dangers more costly. A mistake: today. many insurance companies thought that continued to rely on their broker networks and failed to provide direct insurance. . Deficits in the marketing mix No one buys policies on the net. this challenge can be overcome. the management more complicated. direct sales already hold a market share of 5 percent Whoever misses out on key elements such as online sales in their marketing mix will easily fall behind in highly competitive markets. And whoever wants to generate the best-possible marketing ROI for their company should begin today.

libraries. Website should be enriching . arises a need for a new µCustomer¶ friendly look to our corporate website. car dealers. In doing so they are often aware of new products and compare prices. With the new CI .Way Forward ‡The evolution in Digital Mktg reflects fundamental changes in consumer behavior. ‡Can also help in user generated media to deliver message . ‡Customer first point of contact is the website . ‡It becomes very important for europe entry strategy ‡We can get into blogs and use the expertise of the technology team based at Frankfurt and India initially. departmental stores. customer friendly & correct information . ‡Research to be done to study the usage of tyre brands in these tools and which engine / tool apollo can leverage. yellow pages. . or real estate agents ±to search for information. monitor for consumer sentiment. ‡More & More people are using using web instead of books .

Way Forward .

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