Summer Internship Project Report on SIGNIFICANCE OF INTERNET IN MARKETING AND INCREASING SALES By Harsh Kumar A0116212016 MBA - RM Class

of 2012-1 !n"er the Super#ision of Mrs. Harminder Gujral Assistant r!"ess!r In partial fulfillment of the re$uirements for the "e%ree of Master of Business A"ministration & Retail Mana%ement At AMIT# $%SINESS SCHOOL AMIT# %NI&ERSIT# %TTAR RADESH SECTOR '()* NOIDA + (,'-,-* %TTAR RADESH* INDIA (,'-

DECLARATION

'itle of Project Report SIGNIFICANCE OF INTERNET IN MARKETING AND INCREASING SALES I "eclare (a)'hat the *or+ presente" for assessment in this Summer Internship Report is my o*n, that it has not pre#iously -een presente" for another assessment an" that my "e-ts (for *or"s, "ata, ar%uments an" i"eas) ha#e -een appropriately ac+no*le"%e" (-)'hat the *or+ conforms to the %ui"elines for presentation an" style set out in the rele#ant "ocumentation. /ate 0 Pra"eep 1umar A01012031 2 MBA - M4S Class of 2015

Thesis S.n!/sis
Area !" Resear0h 1 Internet Mar+etin% Title O" the Thesis 1 An 6n$uiry into the effecti#eness of Internet Mar+etin% in the In"ian or%ani7ational set up H./!thesis 1 Internet Mar+etin% is yet to -e consi"ere" as an effecti#e mar+etin% tool in the In"ian en#ironment. Literature related t! the /r!2lem 1 Internet mar+etin% is consi"ere" to -e one of the important an" an effecti#e means of mar+etin% all o#er -ut *hen *e loo+ from the In"ian perspecti#e *e fin" that people still hesitate to "o any transactions #ia Internet. In In"ia Internet Mar+etin% is still not re%ar"e" as a relia-le an" a safe means for un"er%oin% any transactions. 'his mo"e of mar+etin% has still to %ain its popularity in In"ia. S0!/e O" the Thesis 1 200 respon"ents in the /elhi an" 8CR re%ion across #arious /emo%raphics. Resear0h Meth!d!l!3. 1 1. rimar. data1 "ata collecte" throu%h $uestionnaire an" "irect inter#ie* from the respon"ents

2. Se0!ndar. data 1 "ata collecte" throu%h internet, 8e*spapers an" ma%a7ines 4usti"i0ati!n "!r 0h!!sin3 this t!/i0 1 9e all +no* that *ith the chan%e in the technolo%ical en#ironment the *orl" is mo#in% fast. Machines ha#e replace" men. /ue to this technolo%ical a"#ancement an" the continuous up %ra"ation in the 'echnolo%y : Internet Mar+etin%; is %ainin% a lot of importance. Internet Mar+etin% not only aims at caterin% the "eman"s of million of people *ithin a #ery short span of time -ut also a"" on to the con#enience factor for the customers. 'herefore, as a
5

future mar+eter it is #ery important to un"erstan" the rele#ance of Internet Mar+etin% in In"ia.

Abstract
What drives customers from one portal to another? What makes them stay with the same portal when hundreds of other pages are just a click away? The purpose of this study is to explore the origins of internet marketing popularity in an Indian organizational setup. Using the data for early stage of portal market development we develop an approach that shows how the interaction of different portal attri utes affects its market share. We find that the !uality mail" search and virtual communities were necessary for gaining share on online market. #lso" we find evidence that decisions of using different portal features may e separated from each other and correlate with demographic characteristics of customers. The rapid growth of the num er of its users makes the Internet a promising opportunity as far as usiness$to$customer relations are concerned. %ommercial oth products and services are advertised. To date" a Internet use was started y in$ formation technology related enterprises advertising their products. &owadays" variety of usinesses are present on the Internet. %orresponding examples for the service industry are travel agencies" consulting firms" insurance companies" and law firms. 'eyond making use of the Internet for the sale of products and ser$ vices there is an opportunity of a completely different nature. If regarded as a means of production" the Internet could software products. (owever" in recent years" many companies failed to use the We e lamed for these catastrophes? The possi le reasons for online failures are usually* +neglect of rules," +internal organizational structure," and +disconnect asic marketing as a new and e used as a distri uted development platform for

different media channel" often resulting in their online extinction. )hould the Internet

etween consumer

ehavior and randing investment, - demonstrating that the negative conse!uences were not caused y the Internet" ut rather y some marketers, inappropriate ehavior. To successfully use the Internet for their randing purposes" key principles must e followed and that should prevent failures on the We and ultimately lead to online marketing success.

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Acknowledgments
I wish to acknowledge my profound gratitude to all those who assisted in the completion of this report. I thank them for their very precious guidance in this project. The timely guidance given y them always gave me the confidence to do etter and deliver !uality work. I am grateful to my guide" Prof.Shikha Singh for helping me in integrating the ideas" thoughts and views and infuse creativity in my work. It was the support of all these people that helped me in achieving my targets while making it a great learning experience.

Table of Contents
Chapter 1. Introduction Chapter 2. Literature e!iew

Chapter ". esearch #ethodolog$ Chapter %. esearch &indings Chapter '. ecommendations Chapter (.Conclusions )ibliograph$ Appendi*

List of &igures
&igure 1. +orld Internet ,sers and Population Statistics &igure 2. Asia Internet ,sers "' "-

List of Tables
Table 1. egion wise .*port e!enue )reakup Table 2. Internet Subscription in India Table ". Indian Internet ,sage and Population Statistics Table %. +orld Internet ,sage And Population Statistics Table '. Asia Internet ,sers And Population Statistics Table (. Asia Internet ,sage And Population Table -. Summar$ of esearch Sample Statistics Table /. 0escripti!e esults 22/ "" "' "( "%1 %2

Chapter 1. Introduction
Inside India" things do seem to Internet access e improving. .ive years ago there was limited

ut only in a few major cities" all in the hands of the

government. /)&0" the agency responsi le for Internet activities" and the 12T 31epartment of Telecommunications4 provided an agonizingly erratic connectivity" with miserly andwidth and far too few phone lines. %onnection rates ran as low as 56 3for every 78 dialups you might get connected once4 and users were fre!uently cut off. #nd the rates for this pathetic level of service were among the highest in the world. 1omestic users paid a out 97 per hour" and lease lines" for the few companies that could afford them" ranged over 97888 per month for a :; < ps line. 'y the end of =>>?" after three years of government monopoly" there were arely =58"888 Internet connections in India.

Today 3year 788@4 the government monopoly is largely over. 1ozens of small to large Internet )ervice Aroviders have set up shop" triggering a price war and an improvement of service. Users are now estimated at over ;8 million" with a growth predicted to reach =88 million in the next five years. )mall Internet kiosks have set up even in small towns" and the governments" oth )tate and %entral are pushing for growth in the Internet sector. Internet is the new uzzword. The many small tutorial colleges that pushed computer software courses of varia le !uality are now in a hardsell scram le to push &et related content. The Internet represents the new wealth frontier for the middle classes $ a good salary and a clean jo " and for a few" the chance to go a road.

There has

een a great increase in Indian content on the Internet. Bany net een !uick to realize the huge potential of the glo al

entrepreneurs have

market. Initially" most sites targeted the glo al 1iaspora of 2verseas Indians who had more access to the Internet" not to mention the credit cards that drive &et commerce. 'ut there is a growing realization that the &et can reach the large and

10

wealthy Indian Biddle class. This group is rapidly plugging into the &et 3still out of range for most people here4 and there is increased use of credit cards.

#dditionally" 'usiness to 'usiness 3'7'4 transactions are on the increase though there is no accurate estimate of the current or projected volumes. .or Indian usinesses interested in an overseas market the &et provides an efficient medium of communications $ a factor that has retarded a great deal of trade in the past. Cmail and we sites are availa le 7; hours a day. #nd for the large and growing software industry" the Internet offers the a ility to reach a client" respond to pro lems on a real time exports asis" and transfer products instantly with the click of a mouse. India illions of dollars of software annually" and the industry is growing een

rapidly. The Internet represents so much potential for India" and the demand for efficient Internet infrastructure is growing rapidly. This is where India has failing. The demand has not yet enormous arrier to usiness and societal development. een met efficiently and this represents an

Cven the government" which has monopolized infrastructure development until recently" has recognized it must not hold ack this development. They have opened the industry to private entrants and promised support. In practice" though" the vast ureaucracies that implement 3theoretically4 the government programs have moved sluggishly and ineffectively. .or instance" the private I)As that were allowed were initially re!uired to ac!uire their andwidth from /)&0 which wanted a country wide monopoly on this lucrative sector. The result" new users signing up competed for increasingly limited andwidth. &ow the I)As have een allowed to esta lish their own gateways ut the effect has not yet een felt extensively. The 12T" ehind and the new responsi le for providing phone lines to I)As lagged way

providers are often left with far too few lines to service the increased demand. 0ease lines are reduced" though still very expensive $ approximately 9=888 per month for a :; <p s line. )ome cities in India have developed more efficiently than others. Deports suggest that 'angalore and Badras currently offer etter andwidth. 2f course" this is all relative to the pathetic service people were forced to put up with in the 11

past. (ydera ad" where the I&1#E offices are located" is trying to promote a cy er savvy image" ut the reality is still very poor. We cannot justify a lease line 3though reports are that prices are due to drop significantly soon4" ut rely on a dial up connection that only really works well in the early hours of the morning or late at night. It is not unusual to e una le to get a productive connection for hours at a time during the day" even though we use four or more I)As. #nd this poor connectivity still costs us hundreds of dollars a month. &eedless to day" the frustration is acute. &ot to mention loss of productivity. 2ur experience" multiplied y that of millions of other small usiness across the country" amounts to illions of dollars of lost potential usiness each year. This is a horrific waste.

0ooking at India from a glo al perspective" it is difficult to see how India can actually catch up. #dvances in technology" connectivity" and usage of the net are increasing so rapidly that even in developed countries it is hard to keep up. #t present" the percentage of Indians connected to the &et is less than a fraction of one percent. Cven if it soars to 58 million over the next five years" as predicted" that represents at most 56 of the population.

#nd how can this amount of growth occur over the next five years when the infrastructure of oth the Internet and the telephone network is already far ehind current demand? In developed countries" telephone networks had asically reached saturation when the Internet arrived. The pro lem was primarily to provide the increased andwidth and line usage the &et demands. In India the telephone network is anti!uated" overextended and only reaches a fraction of the population which is interested in getting a phone. Internet demand is straining the telephone system further.

Arivate I)As have entered the arena" and though they were initially stymied y oth uncooperative government agencies and y lack of existing infrastructure" there is some promise here. There are also experiments with wireless and ca le connections" ut even here an anti!uated infrastructure and government o structionism are pro lems. 'usinesses are relying more and more on aspects of 12

the Internet. Cmail" for instance" is a huge asset to companies. #nd more and more companies are entering into we related usiness activities" like we site creation" software development" and various service oriented usinesses that utilize the &et" like medical transcription or data processing for overseas companies.

In any event" it seems likely that in the future those that can pay for it will have ade!uate access to the great glo al community. #s in even developed countries" those that canFt pay for it" or lack the skills to use it" will e left ehind. Unfortunately in India" this disadvantaged group will still e the majority well into the current century. Until the country can mo ilize the resources" the education" and the infrastructure to provide a much larger section of its population oth the means and the reason to access the Internet" India will not truly join the glo al community. The !uestion of market shares has received much attention in the literature. In a market where customers are loyal" a firm,s current market share is an important determinant of future profita ility. Internet users choose which we site to visit as they make all other choices* given all the information they choose the est alternative. The significance of consumer loyalty is often repeated in the marketing research. Cconomic literature is concerned with the sources of such loyalty and the mechanism of its formation as well as implications for the e!uili rium. #n important factor in determining profit of any company is its a ility to increase market share. In this research we would like to investigate the determinants of portal market shares. #ll the a ove is true for the online market" ut some additional features of we portal market make it even more interesting to investigate* technology that can e easily imitated no price" competition in !uality low costs of switching possi ility to com ine services from different providers at little additional costs

Bany companies have enefited in some way y the explosive popularity of the We " ut contemporary Internet companies makes it hard to muster the kind of 15

trust and loyalty that rands like %oca$%ola have. With a million channels just a mouse click away" little keeps a person from hopping from GahooH to &etscape if he is not satisfied. 'rynjolfsson and )mith 3788:4 called Internet IThe Jreat C!ualizerK reduce ecause the technological capa ilities of the medium uyer search and switching costs and eliminate spatial competitive

advantages that retailers would enjoy in a physical marketplace. &ow the a ility to accumulate a large customer ase and create true loyalty among users ecame a vital asset for online firms. There is a category of people who are more active online and informed always looking for new and etter

a out portal characteristics" have preferences for variety and are etter features. These people might switch portals e reluctant to switch ecause of e

often or use different features in different portals at the same time" finding the est fitting com ination. 2ther users might discussed. possi le costs of switching. This possi le heterogeneity also has to

Chapter 2. Literature e!iew

Prospects of 1nline Ad!ertising in India #s of today" the online advertisement segment constitutes only = per cent of the total 97.7 illion Indian advertisement industry" it shows a promising future. The segment is likely to cross the 9=88 million mark y 78=8. Traditional ads are more indirect and assumption$ ased. In case of online communication and marketing" it,s two$way communication. 2ne has can exactly track as to how many people clicked on a particular ad" how many people found it interesting and how many of them went a step further. 2ne has can also get answers to !uestions like what is the average age group of Internet users who clicked on a particular online ad" what is it that appealed or did not appeal to them 3 y collecting data from the feed ack forms they fill in4 in a particular ad etc. Well" here one has a glo al audience for ads" while still spending lesser money than an international T/ ad. Internet population is expected to grow to close to =88 million in the next =$ 7 years. # large part of these netizens are within 78$;8 age group. #gain one has plethora of options to choose from like uilding we sites" display ads which would further include anners" media planning and uying" designing" mo ile marketing" email marketing" search engine optimisation and search marketing. 2ne has to name it and one has it. 2nline ads are more direct and crisp 3content wise and concept wise4. .or instance" a Joogle ad word count has a maximum of 75$L8 characters. The design too isn,t very flashy. The logic ehind the execution of an online ad is simple. What might look dull as a T/ ad might just work well in the format of an online ad.K (ence" the first step towards instituting an online ad venture is ac!uiring the re!uired skills* 1<

Thorough knowledge of the Internet is a must. &iche skills like creativity" inclination towards search marketing" technological know how" understanding of consumer ehaviour etc. are also needed. Alanning is extremely important. Muestions like +what is it that I want to achieve out of a particular campaign," +how can I cater to a cross section of my target group, and +how can I tactfully calculate the D2I, will arise. The num er of !uestions while conceptualizing an online advertisement are multifold. To start the agency on a small scale" the cost would e around Ds=8lakh" which would cover the cost of computers" Internet connection" and payrolls. In terms of scope of operations" a minimum of certain skills are re!uired - copywriting" designing" accounting" usiness developing and technical administration. Challenges of Internet #arketing .or one" the attitude and the approach one has towards the industry hasn,t changed. The unfamiliarity with the new medium" lack of understanding of its reach" fear of venturing into a new area that hasn,t een tapped efore are a few reasons that sometimes make it difficult for marketing executives to get clients. #s 1r. )u ho Day" Aresident" Internet and Bo ile #ssociation of India 3I#B#I4 opines" IThe market at large is still not ready to see the value proposition of online advertisements. %onstantly keeping pace with the rapidly changing landscape of online advertising is another daunting task. )o" one needs to e prepared. 'ut the a ove mentioned challenges can e overcome if we understand some of the asic nuances of online advertising and explore various opportunities that this vast industry has to offer. +eb portal industr$ +Aortal, is a term" generally synonymous with gateway" for a World Wide We site that either proposes to e a major starting site for users when they get connected to the We or that users tend to visit as an anchor site. The first

we directory was orn in =>>L. This can e considered as a starting point of the we portal industry. #t that time it was simply known as NOerry and 1avidFs Juide 16

to the World Wide We N

ut it got a new name soon* GahooH #long with ecame popular. #ll of

Gahoo" other Internet search engines and directories" like #ltavista" Cxcite" 2pen Text" Bagellan" Infoseek" and 0ycos also they these sites started off as merely search engines or directories" ut when egan experiencing page views num ering in the millions each day" most realized they could use their popularity y offering more features that would keep people at their sites once the users finished their initial search. Today the we can and portal industry has several hundreds of portals. 2nly =8 to =5 e main portals" others are fringe. Aortals offer a wide homesteadP customized news" weather" sports" and ookmark managersP oardsP original content on every imagina le topicP

e considered to navigationP

range of customization options and functionality including* Internet search emailP horoscopesP planners" calendars" and contact managersP real$time chatP message

shoppingP free home pagesP and much more. Increasingly" major portals developed a technology allowing that vital content such as news" stock prices" and messages can 1nline Ad!ertising ="888 e accessed with wireless devices and phones.

e!enue #odel2

)pecific revenue models include the following* anner advertising $$ x amount per anner viewsP hefty fees from advertisers or partner retailers who are pageP fee$ ased premium servicesP direct marketing NfeaturedN on the main start campaignsP keyword$ ased advertising on search engines" and the list goes on. # large num er of customers have always een seen to e the goal of the Iportal wars.K #nd the main !uestion remains regarding how to ac!uire customers when technology and usiness model can e easily imitated. We may consider four major determinants of market leadership on the Internet market" that include first$mover advantage" with switching costs" and virtual communities. .irst$mover advantage allows a firm to capture market share" esta lish 13 rand effect" stickiness associated

industry standards and gain reputation. GahooH" eing a first$mover" now has the strongest position on the portal market. (owever" the pioneering firm faces some risk in developing completely new technology and creating consumer interest. #lso" the important feature of the we introduced y a market agent can portal market is that any innovation e easily implemented y competitors. in

#verage time of implementation is less than 7.5 months. %ompanies information$technology industries may asymmetries

e particularly vulnera le to investment

etween first and su se!uent movers ecause first mover may

spend more on research and design than later movers. The existence of normal return rand effect or rand loyalty allows online firms to earn a ove

y reducing the cost of attracting visitors. If true loyalty exists in the e hard for portals to ac!uire customers from competitors

Internet market" it will

and they can raise their customer ase only with new coming users. The switching cost factor comes from the fact that a user might e reluctant to switch to another portal" ecause in this case he has to learn how to navigate this new site. 'y creating and exploiting switching costs" a firm can soften competition and get higher market share. In the setting when competition is mostly on !uality" the pro lem of system design ecomes very complex. typically has a significant impact The on design of the user interface the performance of the systemP also

users of a system learn how to use the system over time" so good usa ility helps to create lock$in to the portal for a customer. While monetary transaction costs are not high 3or even do not exist4 on the Internet" learning costs are incurred at every switch etween portals. %losely related to this is the factor of virtual communities factors associated with some services provided y Internet portals"

such as e$mail" chat" games" homestead" etc. 'y switching portals" user may potentially lose contact with people who are unaware of the new addressP in addition" he may lose friends made in this particular community" chat and game partners.

1=

#arket shares in the economic and marketing research The following are key means of increasing market shares* Q price" if firm sets it elow average to take customers away from competitors Q new products" introducing innovations or significant modifications of

product Q Q Q service" improve the !uality of services and support strength and !uality of marketing advertising and sales promotion

.or online market with low or no monetary transaction costs involved" only four last factors can e considered as important part of market share gain strategy. .or all other markets" where a tradeoff etween profit margin and market share exists" several competing hypotheses of the role of market share were developed. There is a significant literature on the implications of market shares on the firms, profit and welfare. The market share and profita ility are positively related and examined the factors that moderate the magnitude of this relationship. Bost managers must focus on uilding market share as the mean of increasing profits. In contrast" it has een demonstrated that very high market share derive no

additional profit" <arnani developed a zero$sum game to calculate e!uili rium market shares and )chwal ach found optimal market share as etween :5 and @8 percent on service and retail markets. Jame theorists has also incorporated the phenomenon of switching costs in their analysis and found that in the presence of switching costs consumers have a 12

strong incentive to continue to uy the same rand increasing the market share of the firm. We may conclude that consumer switching costs are widespread and may result in reduction of product variety y reducing firm,s incentives to differentiate products" reduce competitiveness of the market. The importance of switching costs has een supported y a num er of empirical papers. . 1nline consumer beha!ior and market shares. There is a small ut rapidly growing literature on consumer ehavior on the Internet. # few authors have looked at the !uestions related to loyalty" switching costs and some of the aspects of leadership on online markets. 2ne of the first attempts to understand trends on online market were made late =>>8s. In =>>> y IT professionals in the International 1ata %orporation and portal. Bost Internet users rely on two or three ase"

Delevant <nowledge conducted research and found out that data suggests that users are loyal to no one we different portals and have no portal loyalty. Gahoo has the most loyal user

according to I1% and Delevant <nowledge. Their study found that the NloyalN L: percent of Gahoo users hang around on Gahoo$owned sites for =:= minutes a month" compared with the NdiscreteN remainder" who stick around for :@ minutes. This suggests that not every portal realized the importance of uilding Icloser and tighter relationships with consumers.K Joldfar finds the loyalty coefficient to e significant and ro ust to different model specifications" which means that households tend to exhi it loyalty in their choices. This result suggests important implications for we portals. In 7888 Jallaugher and 1owning pu lished a paper where they

analyzed can

the determinants of leadership on the we

portal market. .irst" they

give theoretical and practical foundation 3along with classification4 for factors that e considered as important in the we portal industry analysis. #ll the een chosen as a factors were included in the designed model. IAortal com atK was modeled in the following way* market penetration 3or market reach4 has 20 dependent varia le" function from several independent varia les" such as ageP

make effect" indicating the

rand of a serviceP features that esta lish virtual iggest portals at that time* GahooH" 0ycos" rand effects and age of the portal

communitiesP features that create switching costsP other features that enhance utility. #nalysis includes only four Cxcite and Info seek. They concluded that

were strong determinants of the portal market share.

'y increasing the !uality of search they also increase the loyalty of their customers and can increase their market share and a ility to generate revenue. #ll the a ove research focused on certain aspects of consumer choice and specific features that may lead to change in consumer preferences. )ince competition on the online market is rather in !uality than in prices" maintaining a strong position and keeping customers gives a lot of gain. 'ecause portals are a complex good" offering more than one service at once and users make their decisions ased on more than one factor. #t the same time" portal is an experience good" and users update their ehavior ased on previous visits to portals. )o" it will e eneficial to create a comprehensive model that allows to analyze all services featured y the portals" identify the main factors that affect consumers, ehavior and influence their decision to visit this portal again. #lso" this allows to analyze the interferences of different portal features.

Successful online branding To promote their rands" advertisers can choose etween a huge num er of different media channels" including newspaper and magazine advertisements" direct mail" and television and radio advertisements. )ome years ago" the introduction of the Internet promised the eginning of a new randing area. )uddenly many companies spent huge amounts of money on the modern media channel" however" often failing in turning their online randing efforts into success. %onse!uently" the Internet was disdained and regarded as risky choice to promote a rand. (owever" with the further growing presence of the Internet" marketers show the tendency to give the modern media channel a second chance. The !uestion is if it still makes sense to use the Internet as an alternative to traditional channels with all the failures 21

already in place. Is it possi le to successfully promote a company,s online space at all? The Internet as 0ifferentiating &actor In advertising" differentiation

rand in the

ecame a golden rule to gain an advantage in the

growing competition for consumers, attention on and preference for a company,s rand. 2ffering a variety of different features 3e.g. online account servicing" interest ased attractions designed for children4 and a huge potential of creativity" the Internet inspired marketers to use it as new randing and advertising tool. Though some companies at first !uestioned the relevance of rands in cy erspace" advertisers were soon taught that the need for rands can e even higher in the online medium than it is in traditional channels. 'eing confronted y similar products from many often unknown providers" consumers rely on the strength of rands which possess a meaningful" clear and trusted set of values and attri utes" facilitating their online purchase choices.

1eriving from its uni!ue characteristics" the Internet provides several key advantages. .irst of all" advertisers can utilize its interactive nature to uild top$of$ mind awareness among customers. %omputer maker )un" for example" utilizes the usiness we sites to communicate with corporate uyers.

The Internet furthermore possesses the feature of relevance in so far that it is more efficient than other channels in reaching people that are part of a market of specific interest like computers for usiness needs.

We sites are a le to com ine sponsorships with editorial" making use of their relationships to users to link their needs with the randing goals of advertisers. The Internet can also e used to increase rand awareness all over the world.

Barketers soon were convinced y the Internet,s huge potential for success. Cnd of =>>?" consumers, e$commerce attitudes forecasted a tripling of e$commerce activity 22

for the up$coming year. The online medium was thought of as a simple way to create a differentiated image with little efforts to develop a variety of online resources. (owever" only several months later the pro lems of many advertising companies to succeed in cy erspace proved the opposite. The following paragraph will explore the reasons for the online failures" and thus will address the !uestion if the Internet should e lamed for this negative result.

2nline companies in specific" a huge num er of advertisers provided marketing plans that assumed brand loyalty could be built in a quarter . Bore pro lematic" advertising companies merely concentrating on capturing online users and their dollars" were +overlooking the simplest marketing remedies," disavowing years of consumer and advertising research. # lot of money was spent on Internet marketing initiatives however missing any specific target.

Though there were reasons to !uestion the old rules - with the Internet offering new usiness models and media options - it was soon realized that only those firms which practice tried and true marketing and randing practices will prosper .

#dvertisers should not forget a out the asics of marketing" since they retain much of its value" +even if how and where we apply it has radically changed,. 'esides considering general issues in randing" including the competitive advantage of strong rands" and the role of the consumer.

It is recommended that advertisers to pursue the following steps to successfully promote their products online* =. 1evelopment of a clear vision 7. Cxtensive research on consumers L. .ormulation of an attractive value proposition ;. #n appropriate communication campaign to retain previous customers and ac!uire new ones. 25

'eyond advertisers, disregard of

asic marketing principles" many companies,

internal organizational structure lacks to properly address online o jectives. With randing constituting a complex process involving a num er of different organizational parties - +from the top of the corporate structure to the individuals that are actually interacting with customers, - the !uestion remains who actually is responsi le for the online activity of a company.

The management of e$ usinesses is in general shared information

y three departments*

technology" marketing" and communications. (owever" getting organized remains a major pro lem" with companies struggling with the common organizational phenomenon 2f "everyone being in charge and no one being in charge" . Desulting from the lack of consensus are diverse pro lems - ranging from slowness in exploiting the online medium" due to endless de ates over the most appropriate e$ randing usiness model" to companies confusing users with hundreds of we sites - that are severely affecting the future of a company,s e$ usiness. 'eing confronted with an impatient online community" firms are advised to concentrate their efforts on an appropriate organizational structure" if they plan to survive in cy erspace.

#nother pro lem is a severe disconnect etween how customers find new we sites and where companies are focusing their randing investments. Though consumers, top choices in discovering new we sites are represented y search engines and recommendations from friends" marketers were o served to spent most of their udget on anner ads" newspaper" television and radio. In addition" many firms neglect to use powerful mechanisms" like sponsorships on other sites" in spite of their a ility to reach a considerate num er of users.

IT Industr$ in India Gear 788:$8@ witnessed a revalidation of the Indian Information Technology 'usiness Arocess 2utsourcing 3IT$'A24 growth story" driven performance was marked y a maturing appreciation of India,s role and growing importance in glo al services trade. Industry y sustained dou le$digit revenue growth" steady expansion into newer service$lines and increased geographic penetration" and an unprecedented rise in investments y Bulti$national %orporations 3B&%s4 - in spite of lingering concerns a out gaps in talent and infrastructure impacting India,s cost competitiveness. The sector looks set to close the year at record levels" with the revenue aggregate growing y nearly ten times over the past ten years. Aositive market indicators including large unaddressed white$spaces and the un undling of IT$'A2 mega$deals with increasing shares of glo al delivery" strongly support the optimism of the industry in achieving its aspired target of U)1 :8 illion in exports y 78=8. While India is uni!uely advantaged to est address these opportunities" they are not lost to others. Timely" coherent and continued action is needed to ensure that India makes the most of these opportunities and maintains its lead.

3rowth in

e!enues2

The Indian IT$ITC) sector 3including the domestic and illion in annual revenue in

exports segments4 is expected to exceed U)1 ;@.?

.G8@" an increase of nearly 7? percent in the current fiscal %ontri ution to J1A estimated to e 5.;6 up from ;.?6 last year. )ervice and software exports remain the mainstay of the sector contri uting U)1 L=.L illion and eating forecast to register a L7.:6 growth Increasing traction in offshore product development and engineering services is supplementing India,s efforts in IA creation. This segment is growing at 77$ 7L percent and is expected to report U)1 ;.> illion in exports" in .G 788:$ 8@.

2<

B&% investments reach an unprecedented scaleP over U)1 =8 announced in .G 788:$8@" to e invested over the next few years.

illion

Ser!ice4line e*pansion2 #iding service providers to take on larger and more complex deals" and is driving up the average size of contracts awarded to Indian firms. Indian )ervice Aroviders have grown their share of contracts of values in excess of U)1 58 million dollars from =6 in 7887 to @6 in 788:. (igh offshore component of delivery and superior execution in multi$ location delivery continue to e key differentiators 'road$ ased industry structure $ IT led y large Indian firms" 'A2 y a mix of Indian and B&% third$party providers and captives" reflects the depth of the supply$ ase Cven though larger players continue to lead growth" gradually increasing their share in the industry aggregateP several high$performing )BCs also stand out .mplo$ment Trends 5 6ASSC1# Initiati!es2 Total IT )oftware and services employment to reach =.: million in .G8@. The industry in colla oration with the government and other stakeholders has initiated several initiatives to further enhance the availa ility and access to suita le talent for IT$ITC) in India The &#% 3&#))%2B #ssessment of %ompetence has een nationally rolled our in &ovem er 788:" after a successful pilot. This is num er of states in 788@ # comprehensive skill assessment and certification programs for entry$level talent and executives 3low$middle level management4 is underway #n image enhancement program to uild greater awareness a out the career opportunities in this segment is underway &#))%2B has een working with the academia across the country under its IT Workforce development initiative to encourage and facilitate greater industry interactionP &#))%2B has signed BoUs with UJ% and #I%TC to take forward these initiatives &#))%2B has suggested the concept of experimenting with adapting the )pecial Cconomic Rone concept 3deregulation and removal of restrictions4 for 26 eing taken to a

education" and create )pecial Cducation Rones. The long term steps that are needed include much higher government investment in education" major education reform and teachersSresearchers &#))%2B has proposed the setting up of a chain of finishing schools for IT professionals to make them more employa le with a simple L$; months of honing of technical skills and imparting soft skill training" helping ridge the manpower supply$demand gap y at least L8$;86. It has een proposed that finishing schools e set up y the IITs and &ational Institutes of Technology. 0omestic #arket #atures2 %omplements the continued growth in IT$ITC) exports and for the first time ever in .G 788: showed signs of reaking out of the hardware led growth and the trend of software and services gaining share is expected to continue The total size of the domestic market is expected to cross U)1 =5.> illion in .G 788:$8@" a growth of 7= percent over .G 7885$8: Traditionally" this segment has een led y B&%s. (owever" Indian firms are gradually gaining ground. 2vertime this segment could ecome a larger )BC play" as the mid$sized firms increase their levels of IT adoption 3lobal #arkets2 While U) and U< remain the dominant markets for IT$ITC) exports" revenues from newer markets are growing rapidly Table 1. egion wise .*port &78" Americas :>.=86 .urope 77.786 est of the ?.@86 +orld 3rowth 9erticals2 '.)I" Telecom and (i$Tech continue to account for &78% :>.;86 77.:86 ?.886 e!enue )reakup &78' :?.L86 7L.=86 ?.:86 &78( :@.=?6 75.=L6 @.:>6 etter compensation and research grants for

approximately :86 of the pie. 2ther verticals such manufacturing" retail" transportation" healthcare and utilities are also growing rapidly

23

.merging Locations 4 #s glo al delivery matures" newer locations are emergingP however India is expected to remain the undisputed leader 3oing forward2 .or India to fully capitalize on the opportunity and sustain a disproportionate lead in the glo al IT$ITC) space" stakeholders need to continue working towards timely and coherent execution of initiatives to address supply$side concerns across the following areas #ugmenting Talent )upply %reating world$class infrastructure )trengthening information security Cnhancing operational excellence Aroviding regulatory support %atalyzing domestic market development .ostering an ecosystem for innovation Table 2. Internet Subscription in India Internet 7ear #ar 4 =/ #ar 4 == #ar 4 88 #ar 4 81 #ar 4 82 #ar 4 8" #ar 4 8% #ar 4 8' #ar 4 8( Sep - 06 (ec - 06 Subscribers :in lakhs; =.; 7.? > L8 L7 L: ;5 5:.5 :>.; 3rowth < =88 6 77= 6 7LL 6 @6 =L 6 75 6 7: 6 7L 6 !" # )roadband Subscribers :in Lakhs; 3rowth <

8.8? 8.=> =.? =L.5 $ %! !$

=L? 6 ?;@ 6 :58 6 &' # $' #

Internet seems to have emerged stronger from the dot$com ust of 7888 and is now creating su stantial value for various stakeholders. 2ver the last =8 years we have seen emergence of ro ust" sustaina le usiness models and glo al rands such as Joogle" Gahoo" e'ay and #mazon. Undou tedly the iggest success story is search engine giant Joogle. .or a company that has een in existence for only @ years it,s 2=

current valuation of close to 9=78 illion takes it way ahead of media giant Time Warner and makes it most valua le media company in the worldH India has een a slow starter ut has its share of successes in the Internet space in Indiatimes" &aukri" )haadi" 'harat matrimony" Dediff and Gahoo India among others.

22

Chapter ".

esearch #ethodolog$

Internet marketing is considered to e one of the important and an effective means of marketing all over ut when we look from the Indian perspective we find that people still hesitate to do any transactions via Internet. In India Internet Barketing is still not regarded as a relia le and a safe means for undergoing any transactions. 'ut slowly this mode of marketing is gaining its popularity in India. We all know that with the change in the technological environment the world is moving fast. Bachines have replaced men. 1ue to this technological advancement and the continuous up gradation in the Technology + Internet Barketing, is gaining a lot of importance. Internet Barketing not only aims at catering to the demands of million of people within a very short span of time ut also add on to the convenience factor for the customers. Therefore" as a future marketer it is very important to understand the relevance of Internet Barketing in India. IDesearch is an organized and systematic way of finding answers to !uestions.K )ystematic ecause there is a definite set of procedures and steps to e followed. 2rganized in the sense that there is a structure or method in going a out the course of research. It is a planned procedure" not a spontaneous one. It is focused and limited to a specific scope. .inding answers is the end of all research. Whether it is the answer to a hypothesis or even a simple !uestion" research is successful when we find answers. )ometimes the answer is no" ut it is still an answer. Desearch 1esign for the study is as follows* SC1P. 1& T>. .S.A C> This report will helpful for those organizations who introduce themselves into internet marketing" since this report is a out the opportunities T challenges faced y the Indian Internet Barketing organisations. This report will also help the organization to know how the companies indulging in internet marketing will come into the view of general pu lic very easily. 50

#.T>101L137 .or the research purpose" oth primary and the secondary sources have een used. P I#A 7 .S.A C> The primary source includes the interviews of various respondents using the internet. The Arimary data have een collected y interviews. The interviews were conducted either one to one or telephonic. )ample size has een 788 respondents across the various age" sex" income$groups. S.C160A 7 .S.A C> )econdary data have collected through reports of government departments and corporations that commission or carry out research. Their pu lished findings provided a useful source of information. These are good especially for up$to$date information. They are fre!uently used in literature reviews research. The fastest$growing source of information is on the Internet. 'ut it too has its own advantages and disadvantages since anyone can post information on the Internet so the !uality may not e relia le. #lso" the information found may e intended for a general audience and so may not e suita le for inclusion in the literature review. (owever" many electronic journals 3e$journals4 are appearing on the Internet $ if there is an editorial oard that evaluates the work efore pu lishing it in their e$ journal" the !uality can e more relia le. 'y far the most widely used research method is collecting data through secondary research. This process involves collecting data from either the originator or a distri utor of primary research. In other words" accessing information that others have already gathered. %ompared to primary research there are several advantages to the secondary approach" including ease of access and generally lower cost for ac!uiring the information. 51 ecause they offer a relatively concise" up$to$date format for

)ources for secondary research are !uite extensive. (owever" the Internet has changed how secondary research offering convenience" accessi ility to a large array of information sources accesses" and generally low cost. The project will e a result from contri utions from various secondary sources which includes ooks" reference materials and we sites.

52

Chapter %.
Internet #arketing in India

esearch &indings

The landscape in India is changing" as the target audience is transforming its ehaviour. The following ta le gives the Indian internet usage and population statistics. Table ". Indian Internet ,sage and Population Statistics 7.A =>>? =>>> 7888 788= 7887 788L 788; 7885 788: ,sers Population < Pen. 8.= 6 8.L 6 8.5 6 8.@ 6 =.: 6 7.= 6 L.: 6 ;.5 6 L.: 6 ,sage Source ITU ITU ITU ITU ITU ITU C.I. Almanac C.I. Almanac IA#AI

=";88"888 ="8>;"?@8":@@ 7"?88"888 ="8>;"?@8":@@ 5"588"888 ="8>;"?@8":@@ @"888"888 ="8>;"?@8":@@ =:"588"888 ="8>;"?@8":@@ 77"588"888 ="8>;"?@8":@@ L>"788"888 ="8>;"?@8":@@ 58":88"888 ="==7"775"?=7 ;8"888"888 ="==7"775"?=7

The following graph gives the statistics of the world internet users and population.

55

&igure 1. +orld Internet ,sers and Population Statistics

)ource* Internet World )tats

Table %. +orld Internet ,sage And Population Statistics +1 L0 I6T. 6.T ,SA3. A60 P1P,LATI16 STATISTICS Populatio Internet < ,sag Population +orld #frica
#sia

,sage 3rowth 28884 288:L?.;6 6 7;?.?6 6 =>>.58 6 ;>=.;8 6 ==5.@8 6 ;LL.;8

n < of +orld =;.786 5:.586 =7.L86 7.>86 5.=86

,sage? Latest 0ata ""?""%?/88 "=/?-8=?8(' "1%?-=2?22' 1=?%2%?-88 2""?1//?8/(

Population :Penetration ; L.:86 =8.@86 L?.>86 =8.886 :>.@86

e < of +orld L.88 L5.?8 7?.L8 =.@8 78.>8

egions

: 288- .st.; >LL";;?"7>7 L"@=7"57@": 7; ?8>":7;":?: =>L";57"@7@ LL;"5L?"8=?

Curope
Biddle Cast

&orth #merica 0atin #mericaS%ari ean

55:":8:":7@ L;";:?";;L :"5@;":::";

?.586 8.586

=(?"/(?88= 1/?%"=?'%1 1?11%?2-%?%

=@.L86 5L.586

?.@8 =.@8 =88.8

6 =;7.88 6 78?.@8 6

2ceania S #ustralia

+1 L0 T1TAL =@ =88.886 2( =:.>86 8 &2TC)* 3=4 Internet Usage and World Aopulation )tatistics as on Barch. =8" 788@.
)ource* Internet World )tats

Table '. Asia Internet ,sers And Population Statistics I6T. 6.T ,S. S A60 P1P,LATI16 STATISTICS &1 Internet Population < Pop. ,sers? Penetration ASIA < ,sage ,se 3rowth

#)I# DCJI2&

5<

of : 288- .st. ; L"@=7"57@":7

#sia 2nly Dest of the World

:< Latest 0ata "=/?-8=?8(' -1'?'('?"(1 1?11%?2-%?%2 ( Population; =8.@86 75.886

of +orld

: 28884 288- ;

+orld 5:.586 ;L.586

; 7"?:7"=L?"@> L :"5@;":::";=

L5.?86 7;?.?86 :;.786 =>8.=86

+1 L0 T1TAL

@ =88.886

=:.>86 =88.886 78?.@86

&2TC)* 3=4 #siatic Internet Usage and Aopulation )tatistics as on Barch. =8" 788@.
)ource* Internet World )tats

&igure 2. Asia Internet ,sers

Table (. Asia Internet ,sage And Population ASIA I6T. 6.T ,SA3. A60 P1P,LATI16 Internet Internet Population
#)I# #fganistan #rmenia #zer aijan

:<; ,sers in Asia 8.=86 8.886 8.786

,se 3rowth : 28884 288- ; nSa 6 ;L:.@86 555:.@86

,sers?

,sers?

Penetration :<

: 288- .st.; 7@"8?>"5>L 7">58"8:8 ?";;?"7:8

:7ear 2888; Latest 0ata Population; $ "88?888 =.=86 L8"888 1(1?888 5.586 =7"888 (-/?/88 ?.886 56

'angladesh 'hutan 'runei 1arussalem %am odia

=L@";>L">>8 ?=7"=?; ;8L"588 =5"58@"5L? ="L=@";L=";> 5 >5?"::7 ;"L?>"88; @"=58"75; ="=7>"::@"57 ? 77;";?="@78 =7?":;:"L;5 =;":5L">>? 7L"5=8"L@> 5="L88">?> 5";L:":8? 5"?7:"7@= 588":L= 7?"7>;"=78 L8L"@L7 7":8=":;= 5;"?7=";@8 75"?@;"5=> =:@"?8:"?L= ?@"7L:"5L7 L":5;"=8L =>"@>:"?@; 7L"88=";;7 :"@87"L?7 :@"7;>";5: :"??:"?75 7:":8@"757 ?5"8L=";L: "?-12?'2-?(2

=88"888 588 L8"888 :"888

"-8?888 2'?888 1"'?888 %1?888

8.L86 L.=86 LL.586 8.L86 =8.;86 8.=86 ;.886 :?.786 L.586 ?.886 :@.=86 7.@86 $ ::.586 5.786 8.;86 ;8.=86 ;@.?86 :.L86 =8.L86 8.586 8.>86 @.786 >.886 ::.L86 =.;86 :L.886 8.=86 =7.586 8.586 L.L86 =@.586

8.=86 8.886 8.886 8.886 L;.;86 8.886 8.886 =.786

7@8.886 ;>88.886 L58.886 5?L.L86 58?.>86 8.886 @@?.886 ==L.@86

%hina Cast Timor Jeorgia (ong <ong Q

77"588"888 1"-?888?888 $ 1?888 78"888 1-'?(88 7"7?L"888 %?/-/?-1" 5"888"888 7"888"888 ;@"8?8"888 @8"888 $ =>"8;8"888 5=":88 :"888 :8"888 L"@88"888 :"888 L8"888 ="888 58"888 =LL">88 7"888"888 ="788"888 =7="588 :"7:8"888 7"888 7"L88"888 7"888 @"588 788"888 %8?888?888 1/?888?888 /(?"88?888 %88?888 4 "%?128?888 2/8?888 2'?888 281?888 1"?'2/?288 1=?888 2(/?"88 "88?888 22'?888 12?888?888 -?/28?888 2?%21?888 2/8?888 1%?'88?888 '?888 /?%28?888 "(?888 //8?888 1%?=1"?('2

India Indonesia Oapan <azakhstan <orea" &orth <orea" )outh <yrgystan 0aos BacaoQ Balaysia Baldives Bongolia Byanmar &epal Aakistan Ahilippines )ingapore )ri 0anka Taiwan Tajikistan Thailand Turkmenistan Uz ekistan /ietnam

=8.886 @88.886 ;.586 ?88.886 7=.:86 ?L.L86 8.=86 ;@=.;86 $ nSa 6 ?.:86 @>.786 8.=86 ;;7.:86 8.886 L=:.@86 8.=86 7L5.886 L.;86 7:5.:86 8.886 7=:.@86 8.=86 @>;.L86 8.=86 7>>88.886 8.=86 L58.886 L.886 ??:=.>86 7.886 7>=.886 8.:86 =8=.?86 8.=86 =L8.586 L.:86 =L=.:86 8.886 =58.886 7.=86 7::.=86 8.886 =@88.886 8.786 ==:LL.L86 L.@86 @L5:.?86 2%/./8<

T1TAL ASIA % 11%?"8"?888 "=/?-8=?8(' &2TC)* 3=4 The #sian Internet )tatistics as on Bar. =8" 788@.
)ource* Internet World )tats

18.28< 188.88<

53

The data for this research was o tained survey research was conducted

y survey research from 788 asis of !uestionnaire

respondents in the 1elhi and &%D region across various 1emographics. The oth on the and online survey of the internet consumers. The online data set contained the time of arrival at and departure from the destination we site 3to the second4" we site type and name" the num er of pages viewed at the we site" the num er of ytes downloaded from and uploaded to the given we siteP indicates whether the portal page is userFs starting page. /aria les reflecting different attri utes" such as particular site visits" search !uality" virtual community size and others are o tained from various search engines such as A%World.com and archive.org. The data set" however" has some limitations. The data set for the survey research is representative ut the online samples are not representative. The online samples are under$represented for the various population strata in India due to the differentiation in the online users. This limitation cannot e considered as major pro lem since we portals is a national product. )econd limitation of the data is that it does not contain information a out users at work. 2nline ehavior at work is very likely to e different from that at home. (owever" &ie and Cr ring report that only =:.?6 of Internet users use it primarily at work" =?.>6 use it e!ually at home and at work and :;.;6 use Internet mostly or only at home. This means that second limitation cannot create pro lem either.

Bost of the Ur an Indian users are fairly experienced in using internet. In fact almost 7 out of L users have more than L years of experience in using the net. .urther" almost two$third of the respondents login to the Internet every day. 756 access Internet thrice a week and =@6 login at least once a week.

5=

/8< -8< (8< '8< %8< "8< 28< 18< 8< ,se .!er$da$ Thrice a week 1nce a week

ate of ,sage

2ur survey found that ;8 percent of all ur an Internet users 3respondents4 uy online" while ;7 percent of the sales originate through just five percent of consumers.
-8< (8< '8< %8< "8< 28< 18< 8< 1nline )u$ers 1ffline )u$ers

This section of uyers spends 5"888 rupees or more per month on the net. It is interesting to note that two out of every three heavy spenders are also Fnetholics"F those who are on the net for more than three hours per day. 2f all those who uy

52

online" only 75 percent are spending more than ="888 rupees per month while the 3remaining4 @5 percent ill less than ="888 rupees per month.

Summar$ descripti!e results )ome asic descriptive results of the !uestionnaire are presented elow. #mongst other details" the interviewees were asked to give a self$assessment of their interest in internet judge the feasi ility of internet marketing U state whether they could imagine themselves ecoming active in regular internet marketing ehavior and what do they think of internet marketing in the Indian organizational context )ome asic descriptive results of the !uestionnaire are presented elow in Ta le @. Table -. Summar$ of A%e (years) Se> Professional acti#ity Mean 50.6 ?emale 3. @ 6mployee 5.0 @ Stu"ent 26.2 @ esearch Sample Statistics St". /e#. =.30 Male 22.6 @ Business 16.= @ Aome-Ma+er Me"ian 22.0 other 1 .0 @ Min - Ma> 15 - <

(alf of the Internet users are coming from families with up to Ds. 78"888 income per month. #nother ;L6 have B.I in the range of Ds. 78"888 to 58"888. Interestingly Internet users with a ove Ds. 58"888 B.I are only :6" hence the ulk of Internet users are in FmiddleF income group representing the FrealF India.

'8< %'< %8< "'< "8< 2'< 28< 1'< 18< '< 8< Internet ,sers

s.18?8884 s.28?888 s.28?8884 s.'8?888 Abo!e s.'8?888

Table /. 0escripti!e Internet )kills

esults Cxpert d 58.>86 .easi le >;.;86 Ges @>.:86 Bean => Cxperience L5.?86 &ot .easi le 8.>86 &o =L.>86 )td. 1ev. =7.;? )ome <nowledge =8.586 &o #nswer ;.@86 &o #nswer :.586 Bedian =5 &ovice 7.?86

.easi ility 2f Idea

Deadiness To Aarticipate Time #vaila le .or )urfing

Bin $ Bax 5 $$ :5

The research also found that uying and search patterns among Indians differ etween genders. While ;L percent of male users uy online" only L= percent of ur an female users are consumers as well. Women tend to search more. 1efying their more common attitude towards shopping" women are more guarded when it comes to the online market.

-8< (8< '8< %8< "8< 28< 18< 8< 1nline )u$ing 1ffline )u$ing #ale &emale

1epending on the product type" nine percent to 75 percent are uying online" whereas LL to ;@ percent are searching the net for product information.

Train tickets are the single largest selling item on the net. LL6 of the online uyers have ought one in the last L months. 776 of online uyers have also ought an air ticket in the last L months. 'ooks" electronic items" clothes and gifts are the other more selling items on the net.

Securit$ &ears Persist

Desults show that the motivation for Indian users to make purchases online varies" ut users fear compromised personal information is still a great risk when it comes to e$commerce.

The single

iggest motivation for

uying online for net users is saving time.

Thirty$two percent of them look to shop online with this purpose. %onvenience of shopping F7;x@F and home delivery are other major incentives. (owever" the concern of possi le misuse of credit car or personal information is extremely significant among online uyers" with almost 55 percent of them voicing their concern. %learly" tackling and countering the issue of online safety figures as an imminent challenge for net marketers.

The products that are purchased most online in India" according to our survey" are ooks and %1s. Ironically" computer hardware and software" despite having the home advantage are among one of the least ought products online" with only =L percent uying them.

In sum" the online market in India is

lossoming

ut is yet to take off in a

considera le way. The Internet is still eing used more for searching than uying products and services. Though a noticea le proportion of net users are also net consumers" essentially" at present only a small tri e among them is driving online shopping momentum.

2ur analysis has demonstrated that individual portal features such as portal age" mail and search !uality" are very important in explaining the overall market share" ut less powerful in the explaining the market shares of separated services. In contrast" demographic characteristics of users have not a ut could affect the market significant influence on overall market shares" share of virtual community and search.

This analysis also suggests that there exists clear separation market for the mail service and other services produced different demographic groups are tied to different services

etween the and portal

y portalsP and

characteristics. Taking this into account" we can find some common features that help to attract and retain diverse customers. Targeting and maintaining the good relationship with current users also should the important part of internet market policy. ecome

Bur research fin"s that more an" more In"ian Internet users are openin% their *allets online. 9hile such hur"les as limite" -roa"-an" access an" security concerns remain, the research fin"s there are currently more than .2 million shoppers online in In"ia. 9hile current tren"s point to increase" e-commerce %ro*th in In"ia, the online mar+etplace in the country of more than 1 -illion people is still relati#ely small

Chapter '.

ecommendations

1nline Ad!ertising for Indian 1rganisations The online advertising market is growing y leaps and ounds. 'ut what is it that is going to work for the Indian 2rganisation. %urrent market stats are just an indication of the shape of things to come. #ccording to the Internet and Bo ile #ssociation of India 3I#B#I4" etween 788L$8; and 7885$8:" online spends have grown y 7?:6Vfrom Ds ;7 crore to Ds =:7 crore 3788;$85* Ds =8@ crore4. This has kept pace with the rise in internet population" which stands at ;8 million. )pecialist online agencies like Bediaturf" Muasar" We chutney )tudio" eBaven )olutions" '% We wise" Indiads" Interactive #veneus" %ommunicate 7" Ainstorm" Bediacontacts" Bedia7Win" We )hastra and Bodule 2ne have already secured their positions in the advertising market" slugging it out against specialist

<

divisions of traditional full$service agencies" such as" JroupB Interactions and Tri al 11'" among others.

WhatFs drawing many companies to the net is that the real effects of advertising ecome more measura le. #lmost :8$@86 of online advertising today is ased on performance. )earch engine marketing 3pay$per$click4 is purely advertising spends" he adds. ased on performance and today it alone contri utes to around L86 of total online

The fact is many generalist advertising" marketing and we offer we

design firms now

advertising services. (owever" it is an Iadd onK service for most of

them 3think IupsellK4. Whether these firms actually offer good value. )ome may simply e outsourcing the clients, work to a specialist firm.

In the offline world it has ecome commonplace for media uying to e separate from the creative idea and execution. (owever" online agencies are challenging this separation. # lot of ad agencies are now recruiting skills to create randed content and many are realising that the media planning is often dependent on the creative idea and executionVso perhaps the two need to e much more closely under one roof. #ccording to market estimates" independent agencies that offer complete solutions in the online space contri ute as much as :8$@86 to the total online ad revenues.

1oes the rise specialist agencies in the space signify a lack of interest on the part of conventional agencies? Is this lack of interest a factor of sizeVthe online advertisement market still accounts for less than L6 of total advertising spends? 2r is it the lack of specialisation that,s keeping entrenched agencies from exploring the new medium with greater vengeance?

It,s actually a factor of all this. 2nline spends are still a small percentage of the overall ad spends" and not all advertisers in India have adopted the medium in their marketing plans yet. #dd to that the plethora of strategies and plans for mainline media" and one have little time to get the hang of the online medium.

%urrently in India sectors that have really opened their arms for online advertising are financial services 3use the internet to generate leads and internet companies 3use the internet to generate registrationsP jo example" use the net advertising for getting resumes4" to name a few. usiness4 and portals" for

'ut getting the hang of internet advertising entails ac!uiring a new set of skills altogether. The we has to e handled differently to reach the consumer. The attention span of the target" the target audience itself" the types of display modes availa le on the we and its two$way interactivity distinguish it from other ad media. It,s not that conventional agencies can,t create online advertisingP it just works etter when specialised agencies" who understand the workings of the net" deliver solutions.

In other words" one needs to Ithink netK" as one creative puts it" rather than simply force$fit the current strategiesScommunication to the new medium. There may e a lot of investment in fresh resources" which adds to the expense" ut does not immediately translate into usiness. (owever" the digital medium lends itself very well to pureplay" especially since itFs projected that y 78=8" ?86 of all media is expected to e digitised.

#ll said" eing a le to view T/%s online doesn,t mean they are online ads. 2nline and offline messaging has to e different even if the asic premise of the

campaign is the same. Take the case of BakeByTrip.com. The premise was +lowest airfares, ut the online and offline campaigns have een completely y different. Indeed" the viral marketing campaign for travel site BakeByTrip.com" created and implemented y We chutney" won a Jold and a )ilver at the # #ssociation of India 3###I 4 #wards 788:. #wards 788:" and again a Jold and a 'ronze at #dvertising #gencies

# recent study y I#B#I$Ainstorm puts the size of )earch Cngine Barketing in India at Ds 7L: crore. This could yield high D2I. 'rands are trying to engage with customers online through search marketing" viral marketing" display advertisement" mailers" microsites" communities and its total revenue" around 9=.L #d)ense itself. logs. )earch marketing

clearly has ecome the hot favourite. Joogle,s search revenue is :8 per cent of illion. ;8 per cent of its revenue comes from

%omparing etween interruption marketing and contextual marketing" the former is where the advertiser focuses on the target audience" and interrupts them to deliver his message. The latter is where the advertiser focuses on the target audience when they are in the right context and frame of mind" and then delivers his message.

%ontextual marketing" especially driven y search and content" has grown to Ds @8"888 crore glo ally in just three years. In India" spends have reached nearly Ds 7L: crore in just two years. %ontextual ads get around 5 million clicks a month in India.

We analytics allows one to take informed decision rather than gut feel decision. We analytics helps one to know the details of the user profile - like who they

are" where they came from" what they look at" which country they length of their visits" etc.

elong to"

1ifferent types of sites like informational" service and support" lead generation and retail have different capa ilities. usiness goals and hence re!uire uni!ue analysis

Challenge of 1nline #arketing Though it sounds easy" marketing on Internet is not easy. The search landscape is incredi ly dynamic and marketing managers are faced with a myriad of usiness and technical challenges* =. (ow to profit from paid and natural search traffic? 7. (ow to measure visitor ehavior eyond the click? L. (ow to plug leaks in the conversion funnel? ;. (ow to adjust for multisession activity" latent response" and keyword stacking? 5. (ow to identify possi le click fraud? 3In case of pay$per$click schemes4 In short" Internet marketing can e incredi ly lucrative" ut it is not easy. #nd to maximize success" one must constantly manage Internet marketing to oner ottom line.

)o how do one address these challenges? (ow do one know if oner )CB campaigns are working and when they are not? (ow do one seamlessly connect clicks with conversions and D2I?

Strateg$ for successful search engine marketing2 0istinguish between Paid 5 6atural Search

When one enter a keyword or phraseVfor example" N#)I%NVJoogle displays two sets of results. The NnaturalN or NorganicN results come from Joogle,s massive index of We pages located all over the We . #t last count" this totaled over two million pages. These pages are indexed ased on google,s uni!ue algorithm. The pages displayed range from )ea food" #ustralian )ecurities T Investments" #merican )ociety of Irrigation consultants" and )emiconductors.

&atural search results can span tens or even hundreds of result pages" and the sort order is determined y the search engine,s proprietary algorithms. These proprietary algorithms take into account many factors" such as whether the keyword appears in the We site UD0" how often the keyword appears in the site" how many other sites link to it" the !uality of those Noff$pageN links" and so on. # !uick search on the We will reveal at least =88 different factors that allegedly influence a page,s ranking in natural search.

(aving optimized oner page favora ly" it has a good chance of appearing somewhere towards the top natural results. If this occurs" it is a very low$cost method of advertising and the visi ility gained can e tremendously powerful. Bultiple studies have highlighted the power of eing listed on the first page of search engine resultsVeither in the top ten or even in the top three.

There are multiple agencies offer search engine optimization 3)C24 services" which promise to improve oner page ranking in natural search listings. Bost of these efforts involve multiple months of careful planning" changes" and measurementsVwhich are often !uite costly.

The alternate way is to have paid search results $ or advertise in Joogle. Aaid search results poses the challenge of how to distinguish the incoming traffic

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etween paid T natural search. Without having a mechanism to distinguish we paid search page hits from natural search" it is difficult to measure the D2I of marketing dollars. # solution is to use a we analytics tool which modifies the UD0 on the search results $ it adds a uni!ue tagI1 to each click on the paid search. # we analysis tool can measure the num er of the uni!ue tagI1s coming to the site and log in the results. We analytics tools such as* 2miniture" Intellitracker" %licktracks etc can e used to track the effectiveness of the paid search.

This strategy for identifying traffic from paid and natural search channels is critical to maximizing )CB success. It is important that one relia ly understand what traffic is driven y each channel" and the profit resulting from that traffic. If one works with an agency" this insight can e used as a aseline to model the D2I from oner )C2 activities. If one manage oner )C2 efforts in$house" one can leverage this to etter understand how many resources can e profita ly allocated towards continual )C2 efforts. C!ually important" one can maximize oner profit yield on matching paid and natural search keywords y reducing those paid campaigns that effectively canni alize oner already ro ust natural search positioning.

#easuring the Paid Click When using a paid search" it,s critical to uy more than clicks. 2ne needs to uy conversion and ultimately profitVwhether it,s direct via online sales or indirect via offline means. Cvery keyword has a reak$even point* idding any higher will drive one into the red. In this sense" to succeed with paid search" one must have an intimate understanding of oner reak$even point. It is important to have the right keywords" effective ad copy" and a persuasive and optimized We pay for a keyword. site experience" ut none of this matters if one do not know how much one should

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)uild a con!ersion funnel Beasuring eyond the click isn,t just a out conversion and profit. With average campaign conversion rates anywhere from 7-=8 percent" the vast majority of oner visitors are simply not converting to customers. )omewhere in the sales process they ail out. It could e as early as the landing page" or as late as the order confirmation page. 'ut if one,re only measuring click$through rates" one have zero a ility to identify and plug these leaks in the conversion funnel. This represents a huge untapped opportunity.

We analytics tools offers the perfect solution to this challenge. Cven with the most asic We analytics tag" one get comprehensive click$stream data that will show the click path of each and every user. Unfortunately" most We analytics providers will sell one just thatVthe click stream of a user. Think a out this for a second* how does one going to analyze the overall conversion funnel with click$ stream data? User paths vary dramatically 3even across just a few pages4 and if oner We site is like most" oner clickstream report will likely show thousands of click streams" each of which is only slightly different than the other.

That,s not to say that click$stream data is worthlessVit can e !uite valua le for diagnosing very specific" tactical issues like form a andonment" pop$ups" and on$ page errors. Dather" search marketers 3along with most analytics users4 will enefit from a higher level of path analysis called fall$out or conversion funnel reporting. .all$out reporting allows one to select major checkpoints 3or nodes4 in a process and analyze how many users progress through each checkpoint. With fall$out reporting" one can !uickly identify major leaks in oner conversion funnel.

Identif$ing 1nline &raud

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2nline or %lick fraud is emerging as a key concern for many search marketers. 1espite numerous industry efforts" it is still unclear how large or extensive this issue may e. Cven the definition of click fraud has yet to e standardized. 'ut generally speaking" click fraud occurs when visitors click on oner advertising and have no real intention of purchasing. That may e a gross oversimplification" ut fundamentally that pro a ly covers a out ?8 percent of click fraud. #nd regardless of how one define click fraud" the results are effectively the sameV one spend money on clicks or advertising that has zero chance of revenue. ecoming

Unfortunately" detecting click fraud isn,t much easier than defining it. 'ut with We analytics tools" there are some ways one can retake control of click fraud. These tools provides automated alerts that can e configured to look for certain conditions.

We analytics too should provide daily reports on suspicious trends in oner )CB activities so that one can take immediate action. It also provides a valua le proxy relative to click$fraud reporting that one may otherwise receive from search engines themselves.#ssuming oner We analytics package supports them" here are some suggestions for alerts one may want to set up*

Impressions on keywords 3possi le impression fraud4 Impressions per visitor 3possi le impression and click fraud4 %lick$through rates for keywords 3possi le impression fraud and click fraud4 %lick$through rates for ad groups 3possi le click fraud4 %ost$per$click on keywords and ad groups 3possi le click fraud4 %licks$per$visitor 3possi le click fraud4 #verage Aosition 3possi le click or impression fraud4 Aage views$per$visitors 3possi le click fraud4

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#s the popularity and complexity of )CB grows" staying ahead of the competition will ecome even more challenging. If one have a list of ten to twenty keywords to manage" it was fairly easy to analyze the data y hand or with excel or y using the tools provided y the major search engine vendors. 'ut if one,re like most of oner search marketing peers" one could have as many as =88"888 keywords or more that must e managed daily. #t the same time" idding costs continue to rise as one face stiffer competition for ad position within a finite space. #nd with B)& and #sk Oeeves introducing pay$per$click ad networks to the market" one now have to manage those in addition to Joogle" Gahoo" and any of the other networks one,re using.

)earch engine vendors are also competing against each other y adding new )CB features and options. .or example" one,ll soon e seeing new leversVsuch as id control y gender and age and ad targeting y gender" age" lifestyle category" and income. #s these and other new features create new metrics for success" one,ll need sophisticated analysis capa ilities to ensure that oner )CB campaigns are achieving optimum num ers. Banaging this level of complexity is no longer possi le y hand. 2ne need powerful automated management tools availa le to effectively manage" analyze" and optimize oner )CB efforts. 1nline Ser!ices marketing )ervices marketing efforts have to e done online not ecause a few marketing consultants and strategists say so V ut ecause the clients and prospects are online and their online experiences are influencing all uying decisions.

This makes it necessary for services marketers to focus on we to sell everyting from high tech services to complex industrial products and for usiness usiness$to$ services.

)ervice companiesVeven those that are eginning to em race marketing as a part of their strategyVseem woefully slow to em race the march to the World Wide We . Bost common reasons for inaction*

<

The decision$making process in most 58$person service firms is slower than in a 9588 million dollar company. They simply canFt get out of their own way and allow themselves to implement a serious change to their marketing or they retreat to less$confusing ways* uying some ads in the local usiness$ usiness development initiatives. #nd ecause online efforts are so challenging to them" journal" sponsoring a trade show" redesigning their rochure. )reak the Chains To reak free of old patterns of ehavior and em race new ways of acting" companies often need a significant or galvanizing event* a merger" a massive drop in sales" a major technological advance in their industry. When it comes to marketing online" it is unlikely that there will e some major event to set oner company in a new direction. 'ut donFt e fooled. # sea change has happened" and itFs up to one to take advantage of it efore oner competitors use it to take advantage of one. Barketing at service firms should e approached not y asking N(ow should we do marketing"N ut N(ow do we want to grow? #nd what do we need to get done to reach these goals?N If one start here" oneFll find one need oner junior marketing people to execute the more difficult work of finding new customers" engaging them with marketing" helping to close new existing customers happy and uying. This means one not only need to e online ut also need to e doing the right things online for the right reasons* in other wordsVstrategy. The previous three arguments can e summed up as NIf one donFt do this" you,re in trou le.N 'ut itFs not all doom and gloom. 2nline marketing creates a wealth of usiness and keeping

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opportunities for a ove$average growth and success for firms willing to take advantage of it. 2ne of the est opportunities is the potential of com ining direct response

marketing and rand marketing into one integrated experience. 2nline" randing experience 3what one want customers to think a out one4 and oner direct$ marketing tactics 3what one want customers to do as a result of marketing4 are converging. .4#ail #arketing for >igh Tech Companies C$Bail works great for niche services or new services that can e marketed to the current customers. If the new services are an extension to the existing serives" then email marketing is a great way to generate customer interest and create the right environment for the actual sales pitch. To do this" 2ne needs to implement an email marketing campaign using the permission$ ased email marketing service. &ote the importance of permission$ ased email" sending an unsolicited e$mail is a sure$fire way to earn oner customer,s are T is counter productive. The est plan is to implement an email direct mail campaign to oner current

customers who are currently not uying the new service from one ut are uying similar service from others. 2ffer them a good deal on the new service" which is etter and offers more" for a it more money. This the upgrade will e eneficial to oner current customers ut the trick will e to communicate this is in attractive and well$written emails that explain the enefits of the new service levels. 2ur research on how to plan and implement such an email marketing campaign? =. )egment customers in our data ase so one send out customized emails that speaks directly to the individual customers situation. That is if they are

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uying service E and one want them to also also uy service '.

uy service G" send a

different email then if they were uying service # and one want them to 7. 2ffer the current customers a special lower price on the new service" which is valid with a year agreement. The discount is ased on the principle of lower cost of customer ac!uisition" and the savings is passed on the customer. This uilds a etter relationship with the customer. L. Think through the est and likely most eneficial upgradeSupsell path for each current account type and group of customers. This upgrade path idea should e thought through very thoroughly. ;. )end out an email to only part of a segment" track results such as click through rates and how many actually uy the service" modify the message if needed" then send out to another atch. IFd hate to send a message out to all customers will account type E and then determine that the message had some flaws. .or example" send out a message to a random =86 of a segment. Beasure the results. If needed" adjust the email" send to another random =86 of the segment. Beasure the results. 1o it again. Aick the most effective email and send the rest of the segment. Depeat with each segment. 5. Aossi ly send out more than one email. )tart y sending out one email which talks a out one newSadditional service. If there are multiple services" that can e mentioned in a su se!uent email after the initial pitch. #lthough there are several new servicesSAroducts" 2ne should e very focused in the emails to just have each customer upgrade one step up from where they are now. If one choose to put we put all the servicesSproducts in the email" it will confuse and clutter up oner customer and will fail to win the customer,s mindshare. 1o not clutter these emails with too much information. :. 0astly" use an email management software that makes things easier to manage and work with if asic email software like B) 2utlook or 0otus &otes does not meet the re!uirement.

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)randing on Internet The worldFs most famous companies with rands Intel" Bicrosoft" (A" %isco $ high$technology

ig commitments to the Internet will not make the cut. In the udgets $ indeed" many did not have udgets at all.

early days of the World Wide We " newcomers just el owed their way in. They did not have advertising They survived on the uzz created first y Internet surfers" then y the media.

'usinesses have discovered cy erspace. Technology giants Intel" %isco" Bicrosoft have spent millions on Internet $ to create a strong rand name T presence. While spending ig amounts to create a strong rand name is feasi le for esta lished companies" small firms or startups have to innovate to create their rand name and a strong rand presence. #ll companies" competing now against tens of thousands of We sites" need

more than a uzz to create a significant presence. Word$of$mouth is no longer sufficient to get the word outP Traditional advertising plays a large role. Television" radio and print have to e used to complement the we site.

)trong

rands have to

e seen everywhere" with their We

site featured on rand

television advertisements" radio and stationery. Integrate all modes of communication with a sense of purpose to create a strong rand.

I69.ST#.6T &1

) A60I63 rand is escalating !uickly $ ranging from 9=.5 million

The cost of creating a We

to 9L million" according to .orrester Desearch. %ompeting with an esta lished rand can push those figures into the stratosphere. Cntrepreneurs may have to spend ig ut also change their rand$ uilding strategies.

<=

A09. TISI63 IS 61T .61,3> Bost users today log on for one of two reasons* To get practical information such as the product detail or to shop. # survey conducted on the We last year that ?8 percent of the people logging on for information to a site said they would like to uy the products in future. Thus we presence creates a virtual sales channel.

The need to sell in cy erspace has challenged many industries. )ome manufacturers have no experience in selling directly to customers online ut see one$on$one relationships as simply invalua le. (igh tech services companies can secure future sales y using online presence as means to communicate with customers. .irms can send targetted message to their customers online.

Oust providing exhaustive information a out their products can help future sales of capital goods.Eilinx" for example provides extensive information on its programma le chips on their we site. This helps to win mindshare of potential customers and thus capture and engage a large audience.

+>AT T>. C,ST1#.

+A6TS

To succeed" the top levels of a company must know what they have always needed to know* what their customers want from a We site. )uccessful companies know this. 2ne common theme among successful executives is a genuine interest in what happens in cy erspace. They go into their own sites" and competitorsF sites" on a regular asis.

)uccessful Internet managers are o sessed with streamlining the process. They know how many clicks it takes to get the re!uired information" and how long it

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takes them to respond to e$mail. %ompanies have to optimize the num er of clicks for customers to get where they want to e.

While it is not easy or cheap" Get to uild rands in cy erspace" companies will have to let go of some of the thinking that has een holding them ack. )enior managers must em race the medium with gusto. They must realize that interactivity on the Internet does not mean a fun game" We strategy. ut sell$through marketing. They must ecome closely involved in all aspects of the companyFs

Point and Click 1ner +a$ to Success

The technology for uilding a We site is the easy partP itFs the strategy that makes many companies stum le. (ere are a few guidelines for creating an effective We presence.

Bake sure all senior managers are on oard and intimately involved in the Internet strategy. The setup and running of the site may e centralized" or even outsourced" ut executives should know exactly what the site is trying to do and how well it works from a practical standpoint. # site with glitches should not e allowed to launch" no matter how NcoolNit is.

Bake technological improvements slowly. This may sound counter$ intuitive" ut many in the We universe have older computer e!uipment and software and need ease of access more than they need whistles. ells and

Juide customers to information !uickly. Cvery extra click needed $ and the concomitant delay $ presents a chance of losing the customer.

60

0everage existing expenditures on rand$ uilding as much as possi le. # corporationFs We address should e listed on television commercials" stationery" shopping ags and receipts. )ales people should recommend the We site to customers.

0ri!ing 1nline )randing to Success 'randing" constituting one specific part of e$marketing" can e understood as the inspiration of people "to think or feel a certain way about a product in the hopes of inducing or increasing product purchase and loyalty"%

In cy erspace" marketers face new and different challenges and opportunities. (owever" the rules of the 2ld World are still true and should not e neglected. )pending a lot of money alone is no guarantee for success. Dather" the development of a powerful rand re!uires money" analysis" planning" execution" and time.

The following key usiness*

randing principles show

rand managers how to

uild a

ro ust rand on the Internet and thus how to e successful in the online randing

1efining the 'rand )electing the 'rand )trategy .ramework 1eveloping )pecific and #chieva le Joals 2perationalizing the 'rand 0everaging the .eatures of the Internet Bonitoring the 'rand, Aerformance %aring for 2ner %ustomer

61

0efining the brand2 The first crucial step to successful e$marketing is investing time and energy in gaining a thorough understanding of oner rand" involving its meanings to potential consumers" its relationship to competitors, rands" and the rand,s role in the market. Barketers need to ring these key randing elements with them when they enter the online space.

Selecting the brand strateg$ framework2 1epending on a company,s products" rand managers can choose etween three asic frameworks*

%onglomerate rand strategy - the company,s rands stand on their own" e.g. Arocter T Jam le with independent rands like %rest and Tide %orporate rand strategy - a more dependent relationship company and its rands" e.g. I'BFs BM series" 1'7" and R$)eries. etween the

rand I'B and its various divisions like rand name

Baster

rand strategy - very close relationship as every

includes the corporate rand name" e.g. Intel Aentium" T Intel %entrino.

0e!eloping specific and achie!able goals2 1ifferent o jectives demand different strategic approaches. It is therefore recommended to distinguish etween specific randing goals" for example*

#wareness - effective online and offline advertising and pu lic relations are re!uired to distinguish a company,s rand from the crowd Bessage association - to get customers to associate a company,s message with its products" marketers have to guarantee high fre!uencies of simple" uncluttered ad units or sponsorships of content tied to a randFs message

62

Le!eraging the features of the Internet2 'randing in cy erspace offers advertisers uni!ue opportunities allowing them to strengthen used in consistency with the company,s randing success*

rand affinity.

(owever" the diverse We programs and tools have to e fully understood and randing strategy to guarantee a successful randing result. The following features are most important for online

)earch engines Aermission email Aersonalization Word of mouth #ffiliate networks

#onitoring the brand@s performance2 With rands showing a dynamic nature" their online performance needs to e monitored and measured on a regularly rand remains of relevance for the asis. This process reveals whether a

customer and informs marketers in time if steps have to e taken to improve the rand,s performance. The monitoring part of the randing process should not e neglected since it is important to track progress" so one can justify efforts and expenses for future randing actions.

Caring for owner customer2 # key component of any rand experience is the !uality of customer service and support. # sound understanding of the company,s customers is a critical prere!uisite in achieving such service excellence. It ecomes a necessity to increase the fre!uency of communication with online users y esta lishing dialogue systems like focus groups and !uantitative studies. In addition" the online experience should e easy and logical in order to delight users and encourage repeat site visits. Therefore" good we site usa ility is a key to satisfy online customers. %omparing esta lished rands with pure

65

players" furthermore found that the online experience is of higher importance for a mature rand. %onsumers expect according experiences - often making no distinction etween the rand in cy erspace and in the real world. Though confronted y a rapid changing technology" marketers can face the randing principles.

challenges of the online world y pursuing the a ove key

'randing on the We " they will gain a deeper understanding of the diverse uni!ue opportunities of this modern media channel. 2nline advocates" for example" suggest specific solutions that will help companies to further distinguish them from their competitors.

)uild a #ultilingual +eb Site to cater to 3lobal Customers We glo alization is making a major come ack" driven y a re ounding glo al economy" emerging markets and a stronger appreciation for the value of multilingual We sites. In addition" Internet users who do not speak Cnglish now outnum er users who do. Though majority online Indians have Cnglish as the preferred language of reading 3and reading is the primary way they interact with the Internet medium4 many of the net users highlight (indi as their preferred language of reading" most of whom also indicate that they visit (indi we sites already. %onsider Joogle. Joogle offers >@ language interfaces" making it one of the most multilingual We sites on the planet. #ll those languages have paid off. Today" more than half of all JoogleFs traffic is generated y non$U) We users. While these markets represent huge revenue opportunities for many companies" it can e a mistake to rush into We glo alization without proper udgeting and preparation" or without fully understanding the costs of managing those sites once they go live. There are two terms one need to understand efore one get started*

Internationalization 0ocalization

InternationaliAation is the process of designing a We easily localized. 2wner site should

site so that it can

e internationalized to handle multiple

languages and cultural conventions" such as different time and date formats" dou le$ yte characters" support for international currencies" etc. .or example" Jerman text is 78$756 larger horizontally than Cnglish text. This will mean that owner menu system must e a le to accommodate text expansion. Bake sure owner IT department is on oard and that it understands the technical challenges involved. LocaliAation stage involves much more than translation. 0ocalization adapts products to local markets y considering factors such as cultural and linguistic nuances" appearance of graphics" colors" icons and images" culturally relevant examples" etc. %onsider the following points while uilding a Bultilingual we site. =. We glo alization re!uires a significant financial commitment. Those sites have

corporations that offer the most in$depth multilingual We

investments of more than .= percent of revenues on their sites" translating into etween 9= million and 97 million in We glo alization spending for every 9= illion in company revenue. This expense should e seen as a way to deliver competitive advantage. 7. If owner company has a decentralized model for managing local we sites. Then make sure that there is a local M# process and personnel who follow the glo al !uality standards. L. # multilingual we site must e supported locally y various divisionsSgroups who are enefited y having the local language we site. ;. # glo al co$ordination is necessary for local we pages to ensure that owner we page looks" feels the same in all languages. Bost importantly" all the local we pages must convey the same glo al message while it can vary in delivering the local messages.

6<

5. We glo alization planning should e done alongside product planning" so that all localized delivera les are marketing collateral and We udgeted for" such as documentation" e sites. )uccessful companies offer end$to$

end localizationP that is" marketing materials for a product should localized along with their customer support and product support content. :. Barketing and sales drive We

glo alization spending" which translates

into what languages and locales are selected. The languages selected for localization tend to reflect the markets in which a company wants to succeed rather than markets in which the company is already successful. @. Bultilingual content must e written for the local audience" ut it must adhere to the glo al standards. Ideally one must use a glo al template to standardize the look T feel of the we site. # well designed glo al template will provide plenty of room for localization. ?. %onsider the !uality of internet connection in that local country while designing local we pages. # NlightN we page would e preferra le if the country lacks road and Internet. >. 1esign owner we site such that people with disa ilities can also access them 3#dher to U) 58? %ompliance $ even when the site is not for U) audience4 Some of the best practices for a multilingual web site are * 1. 1evelop a glo al template. The est sites apply a glo al template across countries and languages" there y enhancing rand consistency and etween facilitating ease of update. .or example see the similarity www.monster.com" www.monster.co.in and www.monster.fr 7. #ssume that owner multilingual visitors will e using a dial$up connection and uild owner home page accordinglyP it should load within a few seconds. L. 'uild a glo al gateway. Bost customers will enter through owner N.comN front door. Bake it easy to navigate to the local language we sites. .or

66

example" the link to owner Jerman site should e la eled N1eutschN not NJerman.N ;. )erve owner international markets properly. Arovide the same amountSlevel of information in local languages as owner main we site. 5. 0earn from the est. Take a look at Intel" Joogle" microsoft" etc." and see how they have approached developing multilingual We learn a lot y taking a look at the industry leaders. :. 0everage any existing translations. If one have translated any material previously" translation memories will exist. 0everage these to cut owner costs and speed up translation time. @. Translate owner meta$data. (elp owner international audience to find one y translating the meta$data on each page of owner multilingual site. If owneFre using paid$search engine marketing" create ads for each language owner site is in. (owever" there are some common pro lems one may encounter" such as choosing the wrong vendor. # first step is to ensure owner customers can find owner We site in their language. %onfusing rand image may result if one donFt have control of owner glo al We site at a central location" one may loose rand consistency. Watch for colors" num ers and names* colors and num ers can have different meanings in different countries. Thousands of companiesVfrom #mazon to Wal$Bart" Intel" Joogle" Bicrosoft" JBVare adapting their sites to communicate with multilingual customers oth in the domestic market and across the glo e. If one are selling internationally" then one must have a multilingual we site. sites. 2ne can

63

Chapter (. Conclusion
The Internet is eing used the most for communication purpose" oth in

professional as well as personal use. #t an overall level" it seems that the use of Internet for the ur an Indian has remained within the realm of a serious work and communication tool rather than a space to e exploited for enhancing !uality of life and experiences. Aossi ly the marketers are also missing out in identifying as well as communicating the endless possi ilities to the users.

'eyond the regular need for communication and keeping in touch with friends" at the personal usage level" Internet is used the most for checking out news and events. Interestingly users are also using Internet for product T travel information search" keeping track of interests like sports" health T lifestyle and pursuing ho ies as well.

In recent years" many companies failed to use the We as a new and different media channel" often resulting in their online extinction. )hould the Internet e lamed for these catastrophes? The possi le reasons for online failures are demonstrating that the negative conse!uences were not caused y the Internet" ut rather y some marketers, inappropriate ehavior. To successfully use the Internet for their randing purposes" key principles must e followed and that should prevent failures on the We and ultimately lead to online marketing

success. #t the end of the day" marketers also need to worry a out om arding consumers with irrelevant messages. They have already killed the medium of pop$ups y a using the channel. 'anners and e$mails may soon follow suit. #s competition multiplies !uality over !uantity needs to e the guiding principle.

)imilarly" the development of relevant language and local Internet content" afforda ility or access to computers at home or at community level 3or cy er 6=

cafes4 has still not reached a level of significance where they can make such an impact. 2nly :86 of the regular online Indians have Cnglish as the preferred language of reading 3and reading is the primary way they interact with the Internet medium4. The rest ;86 not only prefer local languages ut also regularly visit local language we sites. This should e enough indication for the stark need for developing local language content and application to capture the mass.

To sum up" the usage of Internet has shown growth in oth depth and spread and Internet is increasingly ecoming the preferred medium of exchange for the Indian +mass, of consumers. 'ut the size of the market needs to get igger to fuel" capture and accommodate the future growth of Internet users in India. #nd that calls for reaking the arriers of oth the software limitations 3content" especially language content4 and the hardware limitations 3wider and afforda le connectivity and access to the net4. Though road and is creating much faster access to the Internet and there y leading to increased usage of the net y the existing users" its impact on getting news users into the market is still in its nascence. Unless it ecomes even more afforda le and penetrates deeper into the cities it is unlikely to e the +catalyst, of any ig ang growth.

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eferences
)ibliograph$ #l ert (. (uang 3788L4" #n empirical study of corporate We site usa ility" )uman Systems *anagement" 77" 7L$L:. #sim #nsari" %arl .. Bela" C$%ustomization 3Bay 788L4" +ournal of *arketing ,esearch- ;8" =L=-=;5 '. %lark 3=>>@4" Welcome to By Aarlor" *arketing *anagement" pp. =8$75 'erthon" Aierre" 0eyland Aitt and Dichard T. Watson 3=>>:4" Barketing %ommunication and the World Wide We " .usiness )ori/ons- L> 354" 7;$L7 %hi" C.(." Airolli" A." %hen" <." and Aitkow" O. 3788=4" Using Information )cent to Bodel User Information needs and #ctions on the We " Aaper presented at the 0onference of )uman 1actors in 0omputing Systems " )IJ%(I 788=" )eattle. .. 1avis 3=>?>4" Aerceived usefulness" perceived ease of use and user acceptance of information technology" *2S 3uarterly =L3L4" L=>-L;8. Jiovanni #zzone" Daffalla 'ianchi and Jiuliano &oci 3788=4" %orporate We sites* The 1rivers of their 1ifferent %onfigurations" 4lectronic *arkets" == 374" =7:$=L>. Irvine %larke III" Theresa '. .laherty 3788L4" We $ ased '7' portals" 2ndustrial *arketing *anagement" L7" =5- 7L. O.W. Aalmer and 1.#. Jriffith 3=>>?4" #n emerging model of we site design for marketing" 0ommunications of the 50* ;=3L4" ;;-5=. Oonathan W. Aalmer" 1avid #. Jriffith 3=>>?4" Information Intensity* # paradigm for understanding we site design" +ournal of *arketing 6heory 7 8ractice" : 3=4" L?$;7 Oonathan W. Aalmer 378874" We )ite Usa ility" 1esign" and Aerformance Betrics" 2nformation Systems ,esearch" =L 374" =5=$=:@ Batthew 'udman 32ct>?4" Why #re )o Bany We sites )o 'ad?" 5cross the .oard L5 3>4" 7>$L5

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Bichael ..). %han" Walter W.%. %hung 378874" # framework to develop an enterprise information portal for contract manufacturing" 2nt% +% 8roduction 4conomics" @5" ==L-=7: D.1. Bason and I.I. Bitroff 3=>@L4" # program for research on management information systems" *anagement Science =>354" ;@5-;?@" Dayport" Oeffrey ..P )viokla 3&ovS1ec =>>54" Oohn O." Cxploiting the /irtual /alue %hain" )arvard .usiness ,eview" @L 3:4" @5$?: Ditu #garwal" /iswanath /enkatesh 3Oune 78874" #ssessing a .irm,s We Aresence* # (euristic Cvaluation Arocedure for the Beasurementof Usa ility" 2nformation Systems ,esearch" =L 374" =:?-=?: )ally O. BcBillan" Oang$)un (wang" Beasures of Aerceived Interactivity* #n Cxploration of the Dole of 1irection of %ommunication 378874" User %ontrol" and Time in )haping Aerceptions of Interactivity" +ournal of 5dvertising" L" 7>$;7 W. 1oll and O. Torkzadeh 3=>??4" The measurement of end$user computing satisfaction" *2S 3uarterly :" 75>-7@L" +eb eferences www.imr int.com www.we trends.com www.marketingprofs.com www.ingentaconnect.com www.marketingchat.com

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Appendi* Internet #arketing B Cuestionnaire 1. 6ame of the respondent 2DDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDD Age2DDDDD Se*2DDDDD

1ccupation2DDDDDDDDDDDDDDDDDDDDDDDD #onthl$ &amil$ Income2 less than s. 28?888 )etween s. 28?888 to '8?888 #ore than s. '8?888

2. >ow often do $ou surf the internet2 a; 0ail$ b;Thrice in a week c;1nce in a week d;0o not surf at all

". +hat kind of products or ser!ices ha!e $ou bought o!er the internetE

%. >ow often do $ou bu$ something o!er the internetE a; #ostl$ b;1ccasionall$ c;1nce d;6o

7our response2DDDDDDDDDD

32

'. +hen $ou bought a product o!er the net was it an impulse bu$ or a planned purchaseE

(. >ow important is price in the decision processE

-. 0o $ou find the prices o!er the net higher or similar or lower than the regular prices in the marketE

/. +hat was the le!el of satisfaction in bu$ing o!er the net.

:a; :b;

9er$ >igh >igh Limited

F :d;

Low

7our response2DDDDDDDDDD

>. +hat features and associated benefits does Internet #arketing pro!ide o!er routine marketingE

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18. >ow do Indian 1rganisations compare !is a !is their #ultinational counterparts in Internet marketing.

11. +ould $ou prefer bu$ing on the net or in a storeE

12. +hat impro!ements can be made in Internet #arketing to better meet customer needsE

1". +hat new do $ou e*pect from Internet #arketingE

Thank $ou for $our !aluable contribution.