MOBILE MARKETING

MMRK702
 Mobile marketing
 What is mobile marketing?
 Mobile marketing is a practice that allows a
business to communicate, interact or engage with
its customers - or potential customers - through the
use of a mobile device or network.
 Simply refers to marketing activities undertaken on
or with a mobile device - eg a mobile phone or
internet wireless laptop.
 Examples of Mobile devices
 Mobile computers
-laptops, netbooks, palmtops
 Personal digital assistant / enterprise digital assistant
 Handheld game console
 Mobile phone
-Smartphone , feature phone
 Pager
 Personal navigation device (PND)
 Tablets e.g iPad , Samsung Galaxy tab
 Reasons for mobile marketing growth

 Businesses worldwide are embracing mobile

phones as a viable channel to target consumers with
their brand messages.
 Improvements in mobile technology by leading
cellular service providers, e.g. Powertel, Econet
and Telecel, Africom introduced broadband
services giving customers internet access.
An increased consumer adoption rate of mobile
phones-mobile penetration rate 106%
 Growth reasons
 A growing niche market of vendors that supply
mobile search and messaging
 The powerful ability of mobile marketing to reach
target demographics throughout the day
 Potent advertising platform with numerous
possibilities to increase brand awareness.
 Viral communication- one message can be shared
by many consumers.
 Mobile marketing tools

Mobile web
Mobile applications or 'apps'. E.g. Bluetooth,

customised business apps, facebook, twitter

Mobile advertising

SMS or MMS messages: rich multimedia

messages combining text, pictures, audio and

video clips and streaming video can be used
to connect with potential customers.
Google places/business
 Google local business listing is an easy way to maintain an online
presence even if a company doesn’t have a website.
 Platform may be used to give coupons to encourage customers make a
first-time or repeat purchase.
 Allows organisation to connect with customers through customer
feedbacks and reviews of their service/product experience
 A platform to respond to customer complaints
 Gives customers the right information about the location of the business
 Improves ranking of organisation on Google search results
 Offers a virtual 3600 tour to consumers of the interior and exterior of the
organisation.
 Informs customers of the business opening times.
 Factors supporting Mobile Marketing

 • A communicative device
 device that is used to communicate with others.
 may be extended beyond voice to instant messaging and email,
 easier and cheaper to transfer larger amounts of data, sharing
photos and videos with others  
 • A connective device
 Mobile phones enable people to connect to other sources of data
anytime, anywhere.
 mobile email.
 Mobile devices will become more and more powerful as entry
points to tasks that have moved from offline to .
 Factors Supporting M-Marketing

 • A transactional device
 Can be used for payments and transactions.
 An electronic wallet that can be used as a payment device.
 • An intelligent device
 Mobile phones are a place where multiple applications can meet
and fuse.
 Mobile devices that integrate a phone, a camera; a location
finder (GPS) and a connection to the internet make it possible
for a user to request context-dependent information
 As usage increases, mobile phones can become agents of
change,.
 Mobile marketing benefits
 People are using their mobile devices, like smart phones,
to browse the internet and shop whilst 'out and about' -
wherever there is network access.
 Widest reach
 Instant, adaptable, easily monitored communication - you
can send single or bulk messages from any place, any
time with immediate tracking and ability to record results
 Ability to target a large active consumer group by
specific demographic information - eg age, location,
gender
 Mobile marketing benefits
 Cost efficiency: low production and distribution
costs, and additional revenue from replies to
promotions and competitions
 Direct link to consumers through 24 hour
billing/sales/service/assistance
 Viral marketing potential, as consumers can
forward messages.
 Cross-media integration, which is easily tied in to
other advertising mediums – e.g. TV or radio
Factors distinguishing mobile marketing from
traditional marketing

 • Permission-based: Different from the

interruption model that characterises television
advertising, direct mail and other forms of mass
marketing
 • Targeted: by agreeing to share information about
themselves and their buying habits, consumers
allow businesses to improve the relevancy of the
offers they send out.
Factors distinguishing mobile marketing from
traditional marketing (cont)

 • “Live”: responses can be processed to give real-

time visibility of reaction to specific offers.
 • Two-way: consumers can not only respond to
offers but also request specific types of information
or interest (e.g. offers related to a brand or a
category)as well as sharing information with their
peers
SMS mobile marketing
Factors contributing to attitude towards mobile
SMS advertising
 Entertainment

 Informativeness

 Irritation

 Credibility

 Interactivity

 Demographic
 SMS SHORT CODE
SMS Short codes
 are phone numbers (short ones, as the name implies) to

which users can send a text message from a mobile

phone, usually to get something in return.
 can be used to sign up for services, to enter competitions

or to indicate permission (or to end permission) to

receive marketing messages.
 Messages sent to short codes can also be used to make a

payment or a donation, with a set amount being deducted

from a user’s prepaid airtime or monthly airtime bill.
 SMS MARKETING
Promotions
 SMS messages present a way to send timely sales promotion

information to a large database for a relatively low cost. SMS

messages can also be used when promoting events.
Receiving messages
 Short codes are often used to enter competitions, or make

requests.
 The costs can often be passed on to the consumer, meaning that

it can be a cost effective way to receive marketing messages.

 For example, a user might be asked to text the word LUXURY

to a number in order to enter a competition.

 SMS MARKETING
Entering competitions
 SMSes to a short code are a hassle free way to run

competitions.
 Entries can be almost immediately entered into a

database, with fast automatic responses to ensure

that the consumer knows entry has been received.
 In addition, costs can be passed on to the consumer

by charging entry SMSes at premium rates.

 SMS MARKETING
Text to donate
 Text messages can be sent by donors to donate a fixed

amount to a campaign. The fixed amount is deducted

from the user’s airtime, or added to their monthly bill.
Text to participate
 Text messages provide an almost instantaneous way

to elicit response from an audience, whether it be to a

radio programme, TV show, newspaper or magazine
advertising or billboard.
 USSD AND MARKETING
 USSD (Unstructured Supplementary Service Data) is an alternative
messaging system to SMS.
 It is a protocol that allows for a query and response type of action
between the customer and a service centre, where these transactions
can be seen to be similar to a session on a website.
 USSD services are usually initiated by the user who enters a code
on his phone and then sends that as a request to the network.
 The code differs from the number an SMS is sent to because it
includes the symbols # and *. For example, *443#
 These services are often used by networks to provide a service to a
customer, such as balance requests, adding credit to a prepaid
contract or to pass on credit to another mobile phone user.
 USSD AND MARKETING
 Used as a payment application,
 Turning the mobile phone into a virtual wallet.
 Self-service customer service, and is attractive to
customers when it is offered for free.
 Advertising can easily be displayed in the messages
returned when using this service.
 Voting, such as for reality TV programmes, and
entering of competitions.
 Allow a query and response type of interaction
Effective SMS mobile advertising
 Use permission marketing
 Sending unwanted messages to you consumers damages
the company brand
 Offer customers an incentive to become part of your
email list
 Use SMS to:
 Inform consumers of new product offerings or sales
events
 Remind consumers of events in the company or products
ordered
SMS marketing
 Thank customers of patronage after a sale
 Remind customers of the balance on their loyalty cards
 Provide requested information
 Ensure information passed to the consumer increases in
value over time.
 Create a dialogue
 Customize and personalize information forwarded to the
customer
 *WHAT DO YOU THINK OF USE OF WHATSAPP BY
AN E-MARKETING ORGANISATION?
KEY SUCCESS FACTORS OF MOBILE MARKETING

 Mobile Network Operators need to consider how

mobile commerce can be integrated with existing tools
for revenue generation such as SMS, Premium SMS
and MMS as well as the huge potential to drive data
traffic (still priced highly and discourages increased
usage).
 Mobile Phone Manufacturers need to consider how

to provide mobile devices that suit the needs of the

market but also drive the market in new directions,
KEY SUCCESS FACTORS OF MOBILE
MARKETING

For service providers, this means that choices

need to be made:
 To support interoperability and openness, rather than

to develop and use private or proprietary model,

 Once there is a global, interoperable platform

available, service providers (bank, brand owners,

retailers and many other stakeholders) will be able to
focus their resources on creating and launching new
services or on transferring existing services to mobile
devices,
KEY SUCCESS FACTORS OF MOBILE
MARKETING

 Technology availability.
 Without certain technologies, mobile marketing is
impossible.
 The full potential of the mobile phone as an ubiquitous
object is only released when local interaction
technologies are embedded, such as the combination
of camera and image recognition software (to read bar
codes or recognize specific images) and ways of
exchanging and communicating wireless information
with products, point-of-sale and other devices.
KEY SUCCESS FACTORS OF MOBILE
MARKETING

 Interoperable Systems are essential

 Identification keys to access to mobile marketing
applications should be unique so as not to cause
conflicts when end consumers scan a bar code with
their mobile phones
 Significant additional costs are generated if
applications providers are forced to adapt their bar
code readers to each operating system in the mobile
market.
KEY SUCCESS FACTORS OF MOBILE
MARKETING

 The integration of a secure element, such as a

tamperproof chip card, inside the mobile phone
will provide security and trust for handling
valuable data
 Support for high quality display of the information
to the users (small screens on some devices)
 Mobile networks need to be able to deal with large
amounts of traffic at high speed.
KEY SUCCESS FACTORS OF MOBILE
MARKETING

 Communication layers must be uniform and not

specific to a mobile device, a mobile operator or a
local area. If not whenever a consumer changes a
geographic zone certain services will no longer be
available.
 The access to the mobile service must be as simple
as possible and the protocols used must be
transparent for the users.
 
KEY SUCCESS FACTORS OF MOBILE
MARKETING
 For mass adoption of this technology to take place quickly,
consumers must:
 • be able to access services as easily as possible (“just a few clicks and
no more”).
 • be convinced that the services are useful and make a difference to their
lives.
 • be confident about the costs of these services (for free, part of the
monthly fee they are already a subscriber or a transparent one-off fee
(such as SMS)).
 • be confident about the source and reliability of the information delivered
(for example bank, brand-owner, retailer, government organization).
 • be confident about respect of privacy and personal information.
 • be confident that security measures protecting their devices (such as
biometrics and pass codes)are effective.
KEY SUCCESS FACTORS OF MOBILE
MARKETING

 be able to use these services whatever kind of

mobile phone they buy, whatever kind of
subscription contract they have signed and
whatever mobile network operator they have
chosen.