Internet advertising

National School of Business Page 1

Executive Summary

Marketing is undergoing a period of intense change, and there are several inflection points on

the horizon which will have a transformational effect, so that by the middle of the next

decade every facet of marketing will have been changed radically by the digital revolution To

date, the emergence of digital technology has caused great debate, and in some sectors has

led to revolutionary change. While small advertising such as classifiers and personals has

moved online in a wholesale way, brand advertising has been affected in a more marginal

way to attract customers.

Digital marketing is undoubtedly the major sector that is showing growth in an industry

which has struggled with the recession and resulting financial problems. Traditional roadside

billboards, print advertisements and direct mail have all suffered, but digital alternatives are

starting to become more prevalent, such as digital billboards and transport advertisements,

and advertisements in digital editions of print media, such as mobile applications for

traditional publications.


Introduction

Online advertising, also called Internet advertising, uses the Internet to deliverpromotional

marketing messages to consumers. It includes email marketing, search engine marketing,

social media marketing, many types of display advertising (including web banner

advertising), and mobile advertising. Like other advertising media, online advertising

frequently involves both a publisher, who integrates advertisements into its online content,

and an advertiser, who provides the advertisements to be displayed on the publisher's content.

Other potential participants include advertising agencies that help generate and place the ad

copy, an ad server who technologically delivers the ad and tracks statistics, and advertising

affiliates who do independent promotional work for the advertiser.

Online advertising is a large business and is growing rapidly. In 2011, Internet advertising

revenues in the United States surpassed those of cable television and nearly exceeded those

of broadcast television. In 2012, Internet advertising revenues in the United States totaled

$36.57 billion, a 15.2% increase over the $31.74 billion in revenues in 2011. Online

advertising is widely used across virtually all industry sectors.

Despite its popularity, many common online advertising practices are controversial and

increasingly subject to regulation. Furthermore, online ad revenues may not adequately

replace other publishers' revenue streams. Declining ad revenue has led some publishers to

hide their content behind pay walls.

1.1 Title of project

A Study on the effect of Digital Marketing on Customer Retention,

with special reference to Odigma


1.2 Problem Definition

In the previous decade, the confidence on the Internet has definitely changed the way in

which business is operated. It is obvious to the majority business owners that devoid of an

online audience, the business is really absent out on a preponderance of marketing,

advertising and promotion. If there is a company and the company doesnt have a website for

itself, it clearly indicates the company is disregarding itself to present day market in the most

successful way.

That is why it is necessary for every company to not only manufacture a website for them,

but also strengthen its attendance through digital marketing like Search Engine Optimization,

Social Media Marketing, Pay per Click, Search Engine Marketing etc.

These days, its important to have a strong online presence, coupled with a great brand that is

presented uniformly across all mediums. Digital marketing is an essential part of this for

companies who want to utilize the power of the internet in order to boost business. Social

Media is a current trend that connects people globally. Promotions and advertisement

through social media reach out to maximum number of people throughout the world. Following are the last years figures which say about how people get in touch with brand

through social media:

77% of people interact with brands on Facebook by looking at posts and updates

17% share news and experiences with others about the brand

13% post updates about brands they have connected with

56% said they would recommend a brand after becoming a fan on Facebook

34% of digital marketers have generated leads from Twitter

43% of all consumers who are internet-connected use social media A business should always pay attention to where its customers are, and those who have

customers on the net with a strong online presence are more likely to succeed. This is even

true of local businesses, as with mobile has come with location services, making it easy for

mobile users to find a company who uses maps on social media and its website.


1.2.1 Industry profile:

Definition of Social Media:

Social media refers to the means of interactions among people in which they create share,

exchange and comment contents among themselves in virtual communities and networks.

Social media are Internet sites where people interact freely, sharing and discussing

information about each other and their lives, using a multimedia mix of personal words,

pictures, videos and audio.

Over the past few years, the buzz around social media and Web has increased. I'll forgo the

statistical research but instead refer to my informal social media observations within my own

family. Social media refers to the latest advances in Internet technology that includes blogs,

wikis, Really Simple Syndication (RSS) feeds and social networks that enable collaboration

and communication. Promoting, marketing and branding your internal projects are key

elements of successfully implementing change management within the organization. Change

management teams typically create posters, newsletters, training materials and corporate

communications to promote a project to improve change awareness and adoption. These

traditional print media artifacts are useful, although the recent rise of social media tools can

be used to support project promotion and branding. The following ideas are a few examples

of how current social media tools can be used to promote, brand and market your internal

projects.

Twitter Your Project Status:

Twitter is a micro-blogging website that allows you to send a message to everyone in your

network who is "following" you. These messages, called Tweets, have a maximum length of

140 characters and are a simple way to communicate immediate status updates, issues or

risks without overloading your inbox. Twitter is supported on various mobile phones and

information can be cascaded as quickly as one can type "Project launch party after work @

Baileys" on their BlackBerry or iPhone. It is similar to instant messaging except it supports

distribution to everyone on your network .A change management team can create a Twitter

account and project's Twitter name (i.e.@ employee Portal) can be promoted in the

organization's employee communications. Employees can also engage with the


changemanagement team by responding to the different tweets and Engaging in the change

management implementation. Of course, security and data privacy issues can be a concern.

One approach is to have the project team create their own project team profile and only have

project team members follow the specific Twitter name. "Following" is a Twitter term that

indicates who is receiving your tweets. Just like any communication, project teams should be

careful what they tweet as it is immediately distributed to everyone on the project team.

Social media considerations:

Organizations seeking to adopt social media techniques need to invest in the tools and

technologies to enable collaboration and communication on their own network. In a high

security IT environment, tweeting on Twitter may not be an acceptable practice as

communication across the Internet is uncontrolled. However, installing a blog on the intranet

or hosting a podcast can be easily achieved using a variety of open-source or commercial

packages.

Before considering adding a social media campaign to your enterprise project, the team

should consider the resources required to make it successful. In a traditional change

management initiative, a project team member is responsible for leading change

management. On large-scale programs, change management is a work stream tracked within

the program and is staffed accordingly. If project teams are investing in a team to create

newsletters, posters and facilitate change management lunch and learns, then they should also

consider adding social media to their tool kit. I look forward to hearing how you've been able

to tweet, blog and podcast your projects to future success!

As social networks and their potential value to business are becoming apparent, marketing

professionals should have a solid knowledge of social media and more importantly social

media marketing. Simply having a grasp on how to post on Facebook, Twitter, YouTube or

another platform is not sufficient. Marketing professionals need to understand how to

integrate social into marketing strategies.


The term Social Media should not be confused with Social Media Marketing, there is a

distinction to be made between the two. Social media is an evolving and changing assortment

of platforms and tools that enable businesses and consumers to share dialogue, information,

and interact on a one-to-one basis or on a one-to-many basis. Understanding how to combine

the traditional principles of marketing with the use of a tool (such as Twitter, Google+, or a

company blog) to meet an organizations objectives and goals is social media marketing.

Evolution of Social Media:

Being connected to the world around us has never been more easy and accessible than it is

today. But it did not start out that way. After the internet made it possible to reach people

around the globe with merely a click of a button, Social Networking exploded into one of the

biggest industries of our time.

We all know that social media has been just a few years around now and that this means has

changed our lives significantly. But do you also know how it all started and how people were

connected using the Internet before the invention of Facebook and Twitter.

In 1971, The First E mail was sent right next to each other.

In 1978, BBS (Bulletin Board System) exchanged data over Phone Lines with other users.

In 1994, one of the webs First Social Networking Sites, Geocities was founded. The concept

was for users to create their own websites categorized by one of six cities known for certain

characteristics.

In 1995, THEGLOBE.COM gave users the freedom to personalize their online experiences

by publishing their own content and interacting with others with similar interests.

In 1997, AOL Instant Messenger was launched. It popularized instant messaging.

In 2000, Fueled for years by the growing internet including early social networking sites,

THE.COM BUBBLE BURSTS, sending the stock markets crashing and web entrepreneurs

back to the drawing boards.


In 2002, Friendster was launched, pioneering the online connection of real-world friends. Its

user-base grows to 3 million users in the first three months, about 1 in every 126 internet

users at the time.

In 2003 MYSPACE was launched, first conceived as a Friendster clone. Created by an

internet marketing firm, the first version was hastily coded in 10 days.

In 2004, Facebook was launched, originally as a way of connecting U.S college students.

First launched at HARWARD COLLEGE., more than half of the 19500 students signed up

within the first month.

In 2006, Twitter was launched and the most popular ORKUT social networking site was

launched.

In 2008 FACEBOOK overtook MYSPACE as the leading social networking site, in monthly

unique visitors. Both the sites are vastly more popular than the original Friendster.

Now social networking sites are ruling over people and Social networking site are making its

users go crazy and addicted.

Facebook: Facebook is a social networking service launched in February 2004, owned and operated by

Facebook, Inc. As of September 2012, Facebook has over one billion active users, more than

half of whom use Facebook on a mobile device. Users must register before using the site,

after which they may create a personal profile, add other users as friends, and exchange

messages, including automatic notifications when they update their profile. Additionally,

users may join common-interest user groups, organized by workplace, school or college, or

other characteristics, and categorize their friends into lists such as "People from Work" or

"Close Friends".

Facebook was founded by Mark Zuckerberg with his college roommates and fellow Harvard

University students Eduardo Saverin, Andrew McCollum, Dustin Moskovitz and Chris

Hughes. The website's membership was initially limited by the founders to Harvard students,

but was expanded to other colleges in the Boston area, the Ivy League, and Stanford

University. It gradually added support for students at various other universities


beforeopening to high school students, and eventually to anyone aged 13 and over. Facebook

now allows any users who have to be at least 13 years old to become registered users of the

site.

A January 2009 Compete.com study ranked Facebook as the most used social networking

service by worldwide monthly active users. Entertainment Weekly included the site on its

end-of-the-decade "best-of" list, saying, "How on earth did we stalk our exes, remember our

co-workers' birthdays, bug our friends, and play a rousing game of Scrupulous Facebook?"

Twitter: Twitter is an online social networking service and microblogging service that enables its

users to send and read text-based messages of up to 140 characters, known as "tweets".

Twitter was created in March 2006 by Jack Dorsey and by July, the social networking site

was launched. The service rapidly gained worldwide popularity, with over 500 million

registered users as of 2012, generating over 340 million tweets daily and handling over 1.6

billion search queries per day. Since its launch, Twitter has become one of the ten most

visited websites on the Internet, and has been described as "the SMS of the Internet."

Unregistered users can read tweets, while registered users can post tweets through the

website interface, SMS, or a range of apps for mobile devices.

Twitter Inc. is based in San Francisco, with additional servers and offices in New York City,

Boston, and San Antonio.

LinkedIn:

LinkedIn Corporation is a social networking website for people in professional occupations.

Founded in December 2002 and launched on May 5, 2003, it is mainly used for professional

networking. As of January 2013, LinkedIn reports more than 200 million acquired users in

more than 200 countries and territories.

The site is available in English, French, German, Italian, Portuguese, Spanish, Dutch,

Swedish, Romanian, Russian, Turkish, Japanese, Czech, Polish, Korean, Indonesian, and

Malay. Quant cast reports LinkedIn has 21.4 million monthly unique U.S. visitors and 47.6

million globally. In June 2011, LinkedIn had 33.9 million unique visitors, up 63 percent from


a year earlier and surpassing Myspace. LinkedIn filed for an initial public offering in January

2011 and traded its first shares on May 19, 2011, under the NYSE symbol "LNKD".

Growth of Social Media:

Social media is continuing to grow and cement its place at the center of daily life for many.

Total time spent on social media in the U.S. across all devices grew 37% to 121 billion

minutes in July 2012, compared to 88 billion in July 2011. But what and how they access

social media is shifting.

Growth in mobile used helped fuel the growth. While the computer remains the top device

for social media access, consumers time spent with social media on mobile jumped 63%

percent in 2012, compared to the same period last year. Overall, consumers continue to spend

more time on social networks than any other category of web sites - 20% via PC and 30% of

total time online via mobile.

Trends of social media:

Social networking is one of the fastest growing activities among mobile users and has

become a significant driver of Internet usage on mobile device.

Gaining a voice in the conversation taking place across mobile social network will be

challenging for marketers.

Most marketers are thinking through key issues, such as internal ownership and scalability of

mobile social programs.

Budgeting and definitions of ROI likewise continue to evolve.

The biggest near term opportunities will come from location aware application.

Search will get more social: real-time content in result, information from social network

friends to result, using collective information from other Web users.

Importance and Future prospects:

Social media has witnessed a sea change in itself in the recent years from Blogs and Forums

to Facebook, Twitter and YouTube etc. The increasing craze of the social media networking


among the people can be used as a mode of reaching of more and more customers online.

Social media is found to be extremely useful in generating leads, performing market research

and establishing the marketers as thought leaders. The increasing likeability of selling

through this medium is now even attracting the Business to consumer organizations as well.

Social Media Marketing is gaining popularity far more than expected due to the efficient and

considerable change it has brought in the online marketing world.

In the coming years, social media marketing will probably focus on three main areas, namely

video, mobile and engagement for efficient marketing through the social media. It is high

time that smart online users should effectively exploit this opportunity to attract more and

more visitors to their site. In order to keep benefiting, the online companies should build

applications and products that can woo the consumers and help them in having market

research through social media.

Companies can use social networking websites for raising awareness about their

brand and their popular products.

Companies get a chance to interact with their existing customers through the medium of social network

It is easier for the companies to announce their new products through social networking websites.

The amounts of users including regular visitors to the social networking websites are massive.

Customer satisfaction can also be increased if social media is used properly by a company.


1.2.2 Company Profile:

Introduction: ODigMais a leading online marketing firm which offers innovative solutions for

companiesto connect with their consumers on the web. It helps brands listen to consumers

online and engage in meaningful conversations with them. It combines an understanding of

online marketing with creative and technology skills and builds digital brands. It is one of the

strongest companies when it comes to analytics and focus on consumer centric marketing.

Background and Inception

Odigma was started in May 2010. Its headquarters is situated in Bangalore .AdvitSahdev is

the CEO and Founder for ODigMa. He has over 10 years of IT & global marketing

experience with companies and teams of Intel, Infosys, and P&G & Unilever. At ODigMa,

Advit is spearheading strategic direction for the firm and looks after the companys

expansion efforts. Under his tutelage ODigMa is heading to be Indias most trusted

performance based social media firm.

Setting new standards of excellence, he has launched some of the best cutting edge practices

in the digital marketing space and is a staunch believer that If we cannot measure, then it is

not a deliverable. Passionate about sharing his experiences, he often dons a writers hat and

has authored 4 books on social media marketing with several more in the pipeline.

An engineer by training, it was Advits passion for marketing and business analytics that

changed the course of his career and turned him into an entrepreneur. He is an alumnus of the

prestigious National Institution of Technology, Surathkal and holds a B.E. in Electrical &

Electronics engineering.

Today the company has taken leadership positions in areas like social applications,

conversation platforms, influencer engagement programs, Facebook fans management &

engagement, goal conversions amongst others.

Odigma has a team of highly dedicated professionals who have a keen focus on Data &

Creativity. Odigma provides Performance based Online marketing If we cannot measure,


then it is not a deliverable.

With an understanding of the Indian consumer mindset coupled with insights on

global trends, Odigma is well equipped to make use of the social media capabilities

available today and build credible & effective social media campaigns.

ODigMa has done a lot of campaigns which include online and offline campaigns.

An example of such a campaign is what we have done for a car launch in

Ahmedabad where we had Facebook apps, live streaming of an outdoor event on

Facebook, live chat with fans and offline picture clicking campaign. Apart from this,

we have built a lot of apps for campaigns around occasions such as Christmas,

Father's Day, etc. We have also done a lot of campaigns for product launches.

Organization:


Mission: Customer Satisfaction is our primary objective and we strive for Excellencein it.

End user Contact and Immediate Problem Resolution is our Strength.

Vision: To be online Experts.

Product profile:

Odigma provides Services like

Facebook Brand building suite (We like to call us gurus over here) Twitter Strategy planning and implementation Social Media platform Connect Strategy on Social Media Applications SEO and Google Ad words PPC

Facebook Brand building suite: Facebook is the largest network of people. If you don't have a brand on Facebook, then either

you are missing out, or you are paying a lot on other networks. We will develop a Brand for

you on Facebook with the following activities.

Twitter Strategy planning and implementation: Twitter is not Facebook or anyway similar. Companies use Twitter in a completely different

way and that is what you have to do. Having lots of followers on Twitter may be a good

status symbol, but is it really worth it.

Social Media platform Connect: You need to have the same face and the same words out of that face It should not change

from one social media site to other. Here is what we do to ensure this


Strategy on Social Media Applications: Applications are great to automate things and bring about virility, but you need to know how

and when to use the right application. This is where we come in.

SEO and Google Ad words PPC: We also do this If you are still keen on Search engine marketing, then we respect your

decision and assist you in leveraging the maximum.

Competitors: Regalixis a digital marketing company incorporated and headquartered in Palo

AltoCalifornia in 2004. It has offices in India located at Banglore, Delhi and

chandhigarhRegalix organizes discussions where industry experts are invited to speak.

Regalix also organizes webinars on social media, search marketing, SEO and other topics to

help companies leverage the digital marketing channels for online marketing.

Regalix provides web technology, in-depth analytics and online marketing technologies

services. Its online marketing solutions include setting up and building social networks,

writing blog content, participating on forums, developing web applications, and marketing-

based games. Other services include doing podcast, webinars, PPC, SEO designing

customized landing pages and Web 2.0 portals


As two of San Antonios most recognized names in their respective and distinct areas of

marketing, Gray Digital Group and The Atkins Group have joined forces to become one of

the citys most formidable marketing powerhouses. Our new entity boasts award winning

strategic brand communications and a fully integrated digital platform team, all under one

roof. The move is based upon the belief that The whole is greater than the sum of its parts.

Milestones:

1. Indias Most Successful Facebook Campaign for launch of Toyota Live in Ahmedabad

2. ROI based Social CRM approach for MTS data cards to deliver customer support par

excellence

3. Indias most successful Social Media presence for Infibeam.com amongst all e-commerce

companies

4. Wild Craft 6, 00,000 fans in three months

5. Bharat matrimony 3, 00,000 fans


BCG Matrix:

Relative Market Share

High Low

Star(SEO) Question Mark(CreativeTeam)

Cash Cow(Social Media) Dog(Application Development) Star: SEO (Search Engine Optimization)

Cash Cow: Social Media

Dog: Application Development

Question Mark: Creative


SWOT Analysis:

Strengths

Odigma is one of the leading social media marketing firms. The company is a giant

marketplace used by more than 100 million people. The company exploits the benefits of

Customer Relationship Management (CRM). This is the Business-to- Consumer (B2C) side

of their business.

Strengths

Brands

Existing customer base

Existing brand distribution

Loyal customer base

Lower risk

Healthy financial position

Employees

Weakness

Competition

Brand management

Intermediaries

Technology

Employee skills

Opportunities

Cross selling

New markets

New services

Co-branding


Threats:

Customer choice

New entrants

New competitive products & Channel conflict

Organizational Analysis:

People:

Top Management: CEO AdvitSehdev Middle Management: Vice President, Brand Manager, SEO Lead, Account Manager, Project

Manager, Add lead Bottom Management: Analysts, Application Developer, Graphic designer


Organizational Chart:

CEO

Vice President (Marketing)

Manager

Brand Manager Creative lead Account Manager

SEO Lead Project Manager

Developer

Analyst Tester Add lead

Application Developer Graphics Designer


Policies: There are no such promotion policies in the company. Promotions

areexclusively on merit centric.

Procedures: The Company follows bottom-up approach.

Top Management

Middle Management

Bottom Management


1.3 Objective of study There are many reasons social media can be a productive marketing channel or platform. The

purpose should dictate strategy and the tactics used for reaching desired goals. The main

objective of online marketing to reach the target customers fast with effective communication

by help of internet.

Most of business suggest that both corporate and functional objectives need to conform to a

set of criteria referred to as an acronym SMART.

The SMART criteria are summarized below:

1. Specific The objective should state exactly what is to be achieved.

2. Measurable An objective should be capable of measurement so that it is possible

to determine whether (or how far) it has been achieved

3. Achievable The objective should be realistic given the circumstances in which it is

set and the resources available to the business.

4. Relevant Objectives should be relevant to the people responsible for achieving them

5. Time Bound Objectives should be set with a time-frame in mind. These deadlines

also need to be realistic.

The main objective of the study in this project is to understand the importance

ofsocial media in present scenario and how effectively it reaches to target customers

by using online advertisement.

The other objectives of the study include:

To find out different users in social networking sites.

To find out target audience in social media marketing.

To understand the level of employee participation for better service delivery.

To find out advertising effectiveness on brands in social media.


To make customer engaged on social media through brands.

To entertain users on social media.

1.4 Need of study With the rapid growth of online purchasing, we are missing out if were not optimizing the Internet as a sales channel. The Internet has become the great equalizer, leveling the playing

field for businesses so that small startups can compete against powerful, established brands.

In the past, marketing was focused on promotion. We would place an ad in a newspaper or a

magazine, or on television or radio, and hope that people would see it and make a purchase.

Things started changing after the Internet was introduced, computers became more affordable

and more people came online. Suddenly there was this huge network of sites that millions of

people could access.

Online business has become highly competitive with people opening up businesses in all

industry verticals. To gain online presence and increase brand awareness digital marketing is

mandatory. It is hard to imagine a successful business without digital marketing today. Be it

any industry vertical, small or large scale business, the website has to be designed in the right

way and marketing activities should be powerful to target online audience. With regular

monitoring and updating of essential activities.

The facts are that digital methods of communication and marketing are faster, more versatile,

practical and streamlined, so it is perhaps unsurprising that once the technology became

available we began quickly moving into the digital age. The good news is that digital offers

just as much potential to marketers as it does to consumers.

1.4.1 Key result area (KRA):

To study the strategies applied by Digital Marketing to remain as the most preferred

vendor and understand how it influences the business.

To understand how to do competitor analysis by studying the success ratio of


agencies who implemented Digital Marketing Strategies in their business.

To understand the importance of customer satisfaction and attractive online

advertisements by using social media as a platform.

To understand and analyze the dependence on Online Marketing in the present day scenario in link building by using keyword optimization. 1.4.2 KSA model: KSA include Knowledge, Skills and Abilities that an applicant must have to perform

successfully in the position.

Knowledge:

A body of information needed to perform task. In completing this project one should have

knowledge of

Dynamic Work Environment

Social Media

Upcoming Digital marketing Trends

Skills

Skills are the proficiency to perform a certain task. Skills required for this project are

Analytics

online Marketing

Content Marketing

Social Media


Abilities

Abilities are an underlying, enduring trait useful for performing tasks. Few abilities required

are

Communication

Creativity

Written Comprehension

Broad Thinking

1.5 Research Methodology The research methodology is presented as followed: Google keywords: Collected key words form Google keywords Promotion: Promoting the page of Digital Marketing in the promotion using the

keywordsthat are collected from Google keywords.

Internet Business Promoter (IBP):

Making use of IBP for off page SEO. That is promotion of website in other sites and listing

of the website in the search engines all over the world.

Social Bookmarking: In Search Engine Optimization the role of social bookmarking is

veryimportant. SEO off page optimization is all about building backlinks to the site. Social

bookmarking provides backlinks to the site which is very helpful in increasing the page

ranking of any site.

Directory Submission: It is the activity of the Off Page Optimization. Directory submission performs for collecting


the backing of own site through which own site PR (page rank) is increase in Google

searches. It is very basic activity of the Off Page Optimization. Directory Submission

perform for increase Ranking.

Forum Posting: Forum is a place for discussion on the clients website. In this forum, people can post their

queries and share their views with other members. However, the idea behind Forum Post is

that of Online Community but we understand that you would like to publicize your products

through questions and answers with some links for your website.

Blog Commenting: Blog commenting is a popular online marketing strategy. By leaving thoughtful comments on

a blog post, an individual or a business is able to gain exposure among that blogs audience.

Classified Posting: It is a process of posting ads online on various sites in order to promote the companys

products and services.

Article Submission: Article submission is seriously one of the most powerful white hat (organic link building)

ways of getting links; its quite simple, which is completely safe from any changes from Search Engines.

Digital Quantitative research method:

When it comes to quantitative research, digital data gathering has obvious perks. Digital

surveys allow customers, clients or employees to respond immediately, with submitted data

collected instantaneously. This is carried out by various surveys.

Website Surveys Your website is your brand come to life for customers who interact with you online. By

enhancing quantitative Web analytics data (such as Google Analytics) with customized

Website Surveys, we can gather information such as why visitors came to your site and

whether or not they found what they were looking for. As a result, you can make more


informed decisions about your sites overall functionality.

Social Media Surveys

The meteoric rise in popularity of social media practically begged for Social Media Surveys.

We can design surveys targeting specific respondents on Facebook, Twitter, MySpace or

LinkedIn.

SAMPLING PROCEDURE:

A sample is a part or small section selected from the population of area and the

process of such selection is known as sampling. The number of units in the sample is known

as sample size. Sampling is a tool, which enables us to draw conclusion about the

characteristics of the population after studying only those subjects or items that is included in

the sample.

SAMPLE SIZE:

An optimum sample survey is one which fulfils the requirements of efficiency,

representative ness, reliability and flexibility. The size of the sample should ensure minimum

of cost and minimum of standard error. The sample size chosen was 60 respondents.

SAMPLE DESCRIPTION:

The research is considered to be a qualitative research. The population of the

organization where the research is conducted is 100. The element of the population is the first

and middle line employees of the organization are taken under study. The method by which

sampling units were selected is by simple random sampling. The data collection is primary

data collection using a structured questionnaire. And the available secondary data was used

additionally. The employees working in MAX stores were participated in the survey.


SOFTWARE USED FOR DATA ANALYSIS:

The Microsoft Excel tool has been used to represent the data from the employees in the form

of a graph. The graph shows the percentage of people responded for the particular option.

This is useful for the analysis of the data. Pie-chart is used to represent the data. Analysis and

Interpretation are done based on the information given by the respondents.

Statistical tools used for analysis:

Analysis of data:

Question 1 -11

OPTION PERCENTAGE

STRONGLY AGREE

STRONGLY DISAGREE

NEUTRAL

AGREE

DISAGREE

Percentage Analysis:

Percentage analysis refers to a specific kind of ratio used in making the comparison between

two or more series of data. Percentage is used to describe relationship and can also be used to

compare the relative terms, the distribution of two or more series in data.

Percentage of respondent= (no. of respondent/total no. of respondent) *100


1.6 Scope of the study

With more and more Indians using the Internet as a means of communicating, this new field

of marketing is on a rise. Since it is a cost effective medium of spreading a message, it is

very popular among the youth. As per a media report, today 500 million people access

Internet regularly in India and that is jump of 600% in last six years. This will give you an

idea about the scope of internet marketing.

The tremendous scope of Internet Marketing in India, we have to understand that

marketing through the internet can be an entirely different ball game. In fact it is a potent

combination of technology and marketing acumen.

Digital Marketing like traditional form of marketing is a highly result driven and set

objective practice. One cant begin a digital marketing campaign without setting the

campaign objectives. A digital marketer understands the needs of the clients and visualizes

their needs to deliver what they want.

Due to the vast demographic expanse of the country digital marketing is something which

can really help the way people connect with each other. Digital marketing is acting as a boon

for the marketers because one of the greatest hindrances of the traditional mode of marketing

is lack of mass reach.

In a recent survey of marketers, it was found that 80% wanted to promote their product

through internet and out of those, 70% were planning to promote via Social media. India has

large number of companies which work on various scales of business. The diversification of

goods and services is huge. Some are small, some are big, some produce products, some

provide services. All these companies have to promote their product or service by advertising

in the right way. There are many digital media agencies in Mumbai which provide these

digital marketing services.

1.7 Limitation of the study


Easier to have outdated information on internet, update timing is a critical issue here. Many web visitors expect something for free. There is a lot of competition in the market and by the time visitor reaches the product

they have already gone through many links and got the required product.

Online Marketing is not free as the cost of hardware, software, wed site design, online

distribution costs, maintenance of website and yes time, all should be factored into the cost of

providing product and service.

So many scams are on internet.

Timing of updates is critical. Its easy to have outdated information on website.


2. Literature review

Introduction:

We live in a super-connected world these days and as such, advertising and marketing are no

longer the same animals they once were. This is especially true due to the rise of social

media, which has changed how businesses communicate with potential and existing clients. So what exactly is digital marketing and what does it encompass? Basically, its a collective

term which is used where marketing meets internet technology and other forms of new

media.

One major benefit of online advertising is the immediate publishing of information that is not

limited by geographic or time constraints. Online advertisers can customize advertisements,

making consumer targeting more efficient and precise. For example, Ad Words, Yahoo!

Search Marketing and Google Ad Sense enable ads to be shown on relevant web pages or

alongside related search results. On the other hand, consumers have greater control over the

content they see, affecting the timing, placement, and visibility of online advertisements.

Online advertising includes

Online marketing:

Search Engine Optimization

Social Media Marketing

Email Marketing

Referral Marketing

Content Marketing

Search Engine Marketing

Pay Per Click

Cost per Impression

Search Analytics


Web Analytics

Display Advertising

Contextual Advertising

Behavioral Targeting

Affiliate Marketing

Cost Per Action

Revenue Sharing

Mobile advertising Google ad wards


2.1 Online Marketing

Introduction:

Internet marketing refers to advertising and marketing efforts that use the Web and email to

drive direct sales via electronic commerce, in addition to sales leads from Websites or emails.

Internet marketing and online advertising efforts are typically used in conjunction with

traditional types of advertising like radio, television, newspapers and magazines.

Online Advertising, also called as Internet Advertising, uses the Internet to deliver

promotional marketing messages to consumers. It includes Email Marketing, Search Engine

Marketing, Social Media Marketing, many types of Display Advertising (including Web

Banner Advertising), and Mobile Advertising. Like any other advertising media, Online

Advertising frequently involves both a publisher, who integrates advertisements into its

online content, and an advertiser, who provides the advertisements to be displayed on the

publishers content. Other potential participants include advertising agencies that help

generate and place the ad copy, an ad server who technologically delivers the ad and tracks

statistics, and advertising affiliates who do independent promotional work for the advertiser.

Methodology:

The typical goal of Internet marketing is to attract prospects on the Web to your website and

then get those targeted prospects to enter into a relationship with you. We are experts in

helping our customers accomplish these goals by providing website promotion and visitor

conversion.

But there is a lot more the Internet can do for your business. In addition to web-based lead

generation, your Internet strategy may include reducing operational costs, as well as,

increasing customer loyalty, partner or channel development, and market analysis. Because

we are experienced, versatile marketing pros, we can share our many years of experience in

these areas with you, to help you make wise choices and avoid pitfalls.

Our methodology can be summarized as follows:


Define business goals, target audiences and messaging per audience

Measure existing Internet presence and programs

Define / refine Internet marketing strategy

Implement

Measure results

Fig: Internet Marketing Methodology Online advertising is a large business and is growing rapidly. In 2011, Internet advertising

revenues in the United States surpassed those of cable television and nearly exceeded those

of broadcast television. In 2012, Internet advertising revenues in the United States totaled

$36.57 billion, a 15.2% increase over the $31.74 billion in revenues in 2011. Online

advertising is widely used across virtually all industry sectors.


Specialized Areas of Internet Marketing: Internet marketing can also be broken down into more specialized areas such as Search Engine Optimization:

It is the process of affecting the visibility of a website or a web page in a search engine's

"natural" or un-paid ("organic") search results. In general, the earlier (or higher ranked on the

search results page), and more frequently a site appears in the search results list, the more

visitors it will receive from the search engine's users. SEO may target different kinds of

search including image search, local search, video search, academic search news search and

industry-specific vertical search engines.

As an Internet marketing strategy, SEO considers how search engines work, what people

search for, the actual search terms or keywords typed into search engines and which search

engines are preferred by their targeted audience. Optimizing a website may involve editing

its content, HTML and associated coding to both increase its relevance to specific keywords

and to remove barriers to the indexing activities of search engines. Promoting a site to

increase the number of back links, or inbound links, is another SEO tactic.

Social Media Marketing:

Social media marketing refers to the process of gaining website traffic or attention through

social media sites. These programs usually center on efforts to create content that attracts

attention and encourages readers to share it with their social networks. The resulting

electronic word of mouth (eWoM) refers to any statement consumers share via the Internet

(e.g., web sites, social networks, instant messages, news feeds) about an event, product,

service, brand or company. When the underlying message spreads from user to user and

presumably resonates because it appears to come from a trusted, third-party source, as

opposed to the brand or company itself, this form of marketing results in earned media

rather than paid media.

By getting connecting to the customers via various social media websites and promoting

theirProducts, building brand image, and many other promotional activities. Some of the

website


Which is being used nowadays by ecommerce is: Facebook

Twitter

LinkedIn

Email Marketing:

Electronic marketing is directly marketing a commercial message to a group of people using

email. In its broadest sense, every email sent to a potential or current customer could be

considered email marketing. It usually involves using email to send ads, request business, or

solicit sales or donations, and is meant to build loyalty, trust, or brand awareness. Email

marketing can be done to either sold lists or current customer database. Broadly, the term is

usually used to refer to:

Sending email messages with the purpose of enhancing the relationship of a merchant

with its current or previous customers, to encourage customer loyalty and repeat business.

Sending email messages with the purpose of acquiring new customers or convincing

current customers to purchase something immediately.

Adding advertisements to email messages sent by other companies to their customers.

Researchers estimate that United States firms alone spent US $1.51 billion on

emailmarketing in 2011 and will grow to $2.468 billion by 2016.


Referral Marketing:

Referral marketing is a structured and systematic process to maximize word of mouth

potential. Referral marketing does this by encouraging, informing, promoting and rewarding

customers and contacts to think and talk as much as possible about their supplier, their

company, product and service and the value and benefit the supplier brings to them and

people they know. Referral marketing takes word of mouth from the spontaneous situation to

one where maximum referrals are generated.

Online referral marketing, using digital marketing as a platform, is the internet based

approach to traditional referral marketing. Given the advances in tracking customer behavior

online through the use of web browser cookies, online referral marketing provides a high

degree of tracking and accountability.

As mobile access to the internet becomes increasingly popular, offline referral marketing

using Track able business cards are also becoming increasingly popular. Tack able business

cards typically contain QR codes linking them to online content for sale while providing a

way to track that sale back to the person whose card was scanned.

Content Marketing:

Content marketing is any marketing format that involves the creation and sharing of media

and publishing content in order to acquire customers. This information can be presented in a

variety of formats, including news, video, white papers, e-books, info graphics, case studies,

how-to guides, question and answer articles, photos, etc. Content marketing is focused not on

selling, but on simply communicating with customers and prospects. The idea is to inspire

business and loyalty from buyers by delivering "consistent, ongoing valuable information".


2.2 Search engine marketing

Introduction:

Search engine marketing (SEM) is the process of gaining traffic by purchasing ads on search

engines. It is also called paid search and sometimes referred to as CPC (cost-per-click) or

PPC (pay-per-click) marketing, because most search ads are sold on a CPC / PPC basis. SEM

is short for search engine marketing, which once was used as an umbrella term to

encompass both SEO (search engine optimization) and paid search activities. However, over

time, many adopted the SEM acronym to refer solely to paid search.

Search engine marketing (SEM) is a form of Internet marketing that involves the promotion

of websites by increasing their visibility in search engine results pages (SERPs) through

optimization and advertising. SEM may use search engine optimization (SEO), that adjusts or

rewrites website content to achieve a higher ranking in search engine results pages or use pay

per click listings.

Specialized Areas of Search Engine Marketing: Various types of Search Marketing are discussed as follows: Pay per Click:

Pay per click (PPC) (also called cost per click) is an internet advertising model used to direct

traffic to websites, in which advertisers pay the publisher (typically a website owner) when

the ad is clicked. It is defined simply as the amount spent to get an advertisement clicked.

With search engines, advertisers typically bid on keyword phrases relevant to their target

market. Content sites commonly charge a fixed price per click rather than use a bidding

system. PPC "display" advertisements, also known as "banner" ads, are shown on web sites

or search engine results with related content that have agreed to show ads.

In contrast to the generalized portal, which seeks to drive a high volume of traffic to one site,


PPC implements the so-called affiliate model, which provides purchase

opportunitieswherever people may be surfing. It does this by offering financial incentives (in

the form of a percentage of revenue) to affiliated partner sites. The affiliates provide

purchase-point click-through to the merchant. It is a pay-for-performance model: If an

affiliate does not generate sales, it represents no cost to the merchant. Variations include

banner exchange, pay-per-click, and revenue sharing programs.

Websites that utilize PPC ads will display an advertisement when a keyword query matches

an advertiser's keyword list, or when a content site displays relevant content. Such

advertisements are called sponsored links or sponsored ads, and appear adjacent to, above, or

beneath organic results on search engine results pages, or anywhere a web developer chooses

on a content site.

Cost per Impression:

Cost per impression, often abbreviated CPI, is a term used in online advertising and

marketing related to web traffic. It refers to the cost of internet marketing or email

advertising campaigns where advertisers pay each time an ad is displayed. Specifically, it is

the cost or expense incurred for marketing potential customers who view the

advertisement(s).

Search Analytics:

Search analytics is the analysis and aggregation of search engine statistics for use in search

engine marketing (SEM) and search engine optimization (SEO). In other words, search

analytics helps website owners understand and improve their performance on search engines.

Search analytics includes search volume trends and analysis, reverse searching (entering

websites to see their keywords), keyword monitoring, search result and advertisement

history, advertisement spending statistics, website comparisons, affiliate marketing statistics,

multivariate ad testing.

Web Analytics:

Web analytics is the measurement, collection, analysis and reporting of internet data for

purposes of understanding and optimizing web usage. Web analytics is not just a tool for


measuring web traffic but can be used as a tool for business and market research, and to

assess and improve the effectiveness of a web site. Web analytics applications can also help

companies measure the results of traditional print or broadcast advertising campaigns. It

helps one to estimate how it changes traffic to a website after the launch of a new advertising

campaign. Web analytics provides information about the number of visitors to a website and

the number of page views. It helps gauge traffic and popularity trends which is useful for

market research.

There are two categories of web analytics:

Off-site web analytics On-site web analytics.

Off-site web analytics refers to web measurement and analysis regardless of whether

youown or maintain a website. It includes the measurement of a website's potential audience

(opportunity), share of voice (visibility), and buzz (comments) that is happening on the

Internet as a whole.

On-site web analytics measure a visitor's behavior once on your website. This includes

itsdrivers and conversions; for example, the degree to which different landing pages are

associated with online purchases. On-site web analytics measures the performance of your

website in a commercial context. This data is typically compared against key performance

indicators for performance, and used to improve a web site or marketing campaign's audience

response. Google Analytics is the most widely used on-site web analytics service; although

new tools are emerging that provide additional layers of information, including heat maps

and session replay.


2.3 Display advertising

Introduction: Display advertising is a type of advertising that typically contains text (i.e., copy), logos,

photographs or other images, location maps, and similar items. In periodicals, display

advertising can appear on the same page as, or on the page adjacent to, general editorial

content. In contrast, classified advertising generally appears in a distinct section, was

traditionally text-only, and was available in a limited selection of typefaces. Display

advertisements are not required to contain images, audio, or video: Textual advertisements

are also used where text may be more appropriate or more effective. An example of textual

advertisements is commercial messages sent to mobile device users, or email. One common

form of display advertising involves billboards. Posters, fliers, transit cards, tents, scale

models are examples of display advertising.

Display advertising is graphical advertising on the World Wide Web that appears next to

content on web pages, IM applications, email, etc.

These ads, often referred to as banners, come in standardized ad sizes, and can include text,

logos, pictures, or more recently, rich media.

Rich media, synonymous for interactive multimedia, is enhanced media that utilizes a

combination of text, audio, still images, animation, video, and interactivity content for active

participation from the recipient of the ad.

You may picture display advertising like magazine or newspaper ads, just online and - like

TV commercials - with the possibility of moving from static to interactive, flash and video.

However, display advertising has a significant advantage over advertising in magazines,

newspapers and TVs:

Targeting options such as demographic and behavioral targeting are available to laser in on your audience


You can track the performance of your campaign daily to measure metrics such as impressions, clicks and conversions to calculate your ROI.

Forms of Display Advertising: Contextual Advertising: Contextual advertising is a form of targeted advertising for advertisements appearing on

websites or other media, such as content displayed in mobile browsers. The advertisements

themselves are selected and served by automated systems based on the content displayed to

the user. A contextual advertising system scans the text of a website for keywords and returns

advertisements to the webpage based on those keywords. The advertisements may be

displayed on the webpage or as pop-up ads. For example, if the user is viewing a website

pertaining to sports and that website uses contextual advertising, the user may see

advertisements for sports-related companies, such as memorabilia dealers or ticket sellers.

Contextual advertising is also used by search engines to display advertisements on their

search results pages based on the keywords in the user's query.

Contextual advertising is a form of targeted advertising in which the content of an ad is in

direct correlation to the content of the web page the user is viewing. For example, if you are

visiting a website concerning travelling in Europe and see that an ad pops up offering a

special price on a flight to Italy, thats contextual advertising. Contextual advertising is also

called In-Text advertising or In-Context technology. Apart from that when a visitor

doesn't click on the ad in a go through time (a minimum time a user must click on the ad) the

ad is automatically changed to next relevant ad showing the option below of going back to

the previous ad.

Behavioral Targeting:

Behavioral Targeting refers to a range of technologies and techniques used by online website

publishers and advertisers which allows them to increase the effectiveness of their campaigns

by capturing data generated by website and landing page visitors. When it is done without the

knowledge of users, it may be considered a breach of browser security and illegal by many


countries' privacy, data protection and consumer protection laws.

When a consumer visits a web site, the pages they visit, the amount of time they view each

page, the links they click on, the searches they make and the things that they interact with,

allow sites to collect that data, and other factors, create a 'profile' that links to that visitor's

web browser. As a result, site publishers can use this data to create defined audience

segments based upon visitors that have similar profiles. When visitors return to a specific site

or a network of sites using the same web browser, those profiles can be used to allow

advertisers to position their online ads in front of those visitors who exhibit a greater level of

interest and intent for the products and services being offered. On the theory that properly

targeted ads will fetch more consumer interest, the publisher (or seller) can charge a premium

for these ads over random advertising or ads based on the context of a site.

Behavioral marketing can be used on its own or in conjunction with other forms of targeting

based on factors like geography, demographics or contextual web page content. It's worth

noting that many practitioners also refer to this process as "Audience Targeting".

2.4 AFFILIATE MARKETING

Introduction: Affiliate marketing is a type of performance-based marketing in which a business rewards

one or more affiliates for each visitor or customer brought by the affiliate's own marketing

efforts. The industry has four core players: the merchant (also known as 'retailer' or 'brand'),

the network (that contains offers for the affiliate to choose from and also takes care of the

payments), the publisher (also known as 'the affiliate'), and the customer. The market has

grown in complexity, resulting in the emergence of a secondary tier of players, including

affiliate management agencies, super-affiliates and specialized third party vendors.

Affiliate marketing overlaps with other Internet marketing methods to some degree, because

affiliates often use regular advertising methods. Those methods include organic search

engine optimization (SEO), paid search engine marketing (PPC - Pay Per Click), e-mail

marketing, content marketing and in some sense display advertising. On the other hand,


affiliates sometimes use less orthodox techniques, such as publishing reviews of products or

services offered by a partner.

Affiliate marketing is commonly confused with referral marketing, as both forms of

marketing use third parties to drive sales to the retailer. However, both are distinct forms of

marketing and the main difference between them is that affiliate marketing relies purely on

financial motivations to drive sales while referral marketing relies on trust and personal

relationships to drive sales. Affiliate marketing is frequently overlooked by advertisers.

While search engines, e-mail, and website syndication capture much of the attention of

online retailers, affiliate marketing carries a much lower profile. Still, affiliates continue to

play a significant role in e-retailers' marketing strategies.

Specialized Forms:

Cost per action:

Cost Per Action or CPA (sometimes known as Pay Per Action or PPA; also Cost Per

Conversion) is an online advertising pricing model, where the advertiser pays for each

specified action - for example, an impression, click, form submit (e.g., contact request,

newsletter sign up, registration etc), double opt-in or sale. Direct response advertisers

consider CPA the optimal way to buy online advertising, as an advertiser only pays for the ad

when the desired action has occurred. The desired action to be performed is determined by

the advertiser.

Revenue Sharing:

Revenue sharing is also known as cost per sale, and accounts for about 80% of affiliate

compensation programs. E-commerce web site operators using revenue sharing pay affiliates

a certain percentage of sales revenues (usually excluding tax, shipping and other 3rd party

cost that the customer pays) generated by customers whom the affiliate refer via various

advertising methods. Another form of online revenue sharing consists in people working

together and registering online in a way similar to that of a corporation, and sharing the

proceeds. A third form of revenue sharing on the internet consists of enticing internet users to

sign up and create content by offering a share of advertising revenue.


2.5 Mobile advertising

Mobile advertising is a form of advertising via mobile (wireless) phones or other mobile

devices. It is a subset of mobile marketing. Some see mobile advertising as closely related to

online or internet advertising, though its reach is far greater - currently, most mobile

advertising is targeted at mobile phones, that came estimably to a global total of 4.6 billion as

of 2009. Notably computers, including desktops and laptops, are currently estimated at 1.1

billion globally.

2.6 Google Ad words

Google Ad words is the advertising online through Google search engine if anyone searches

for the specific keywords which can be related to products in case of ecommerce. Google Ad

words helps in increase temporary traffic to the website as well as short term sales. Google

Ad Words is Google's main advertising product and main source of revenue. Google's total

advertising revenues were USD$42.5 billion in 2012. Ad Words offers pay-per-click, that is,

cost-per-click (CPC) advertising, cost-per-thousand-impressions or cost-per-mille (CPM)

advertising, and site-targeted advertising for text, banner, and rich-media ads. The Ad Words

program includes local, national, and international distribution. Google's text advertisements

are short, consisting of one headline of 25 characters and two additional text lines of 35

characters each. Image ads can be one of several different Interactive Advertising Bureau

(IAB) standard sizes.

2.7 7 P's of Marketing on the Internet

The four P's - Product, Price, Place and Promotion have long been associated with marketing,

but things have changed on the Internet. So along with a change in the nature of the four Ps

there are three new Ps which are relevant to the internet marketer.

1. The Product on the Internet usually changes form online, and the user experiences it

electronically, in the form of text, images and multimedia. Physical goods are usually


presented in the form of a detailed online catalogue that the customer can browse through.

Technology allows the user to virtually touch and feel the product on the Internet - rotate it,

zoom in or zoom out and even visualize the product in different configurations and

combination. The example of the above can be seen at dell.com where the company offers

the user to virtually feel every aspect of their product before they go into a buy decision.

Content and software are two avatars of digitized products that can be even distributed

overthe Internet. On the Internet, E-marketing will be based more on the product qualities

rather than on the price. Every company will be able to bring down the cost of its products

and hence competition will not be on price. It will rather be on the uniqueness of the product.

To be able to attract the customers and retain them, the company will have to provide

nouvelle and distinct products that forces the net users to purchase and come back for more.

2. The Price has been drastically changed over the Internet. It lets the buyer decides the

price. Also it gives the buyers information about multiple sellers selling the same product. It

leads to best possible deal for the buyers in terms of price. A website named Priceline.com is

extremely popular as its compares the price of many airlines and offers the least price to the

buyer. The very famous bazee.com now known as ebay.in follows the same principles.

Pricing is dynamic over the Internet.

3. The Place revolves around setting up of a marketing channel to reach the

customer.Internet serves as a direct marketing channel that allows the producer to reach the

customer directly. The elimination of the intermediate channel allows the producer to pass

the reduced distribution cost to the customer in the form of discounts. Dell Computers have

used this strategy very effectively and hence they have been able to reduce their prices of

their laptops drastically and reaped huge profits.

4. Promotion is extremely necessary to entice the customer to its website, as there

arecurrently more than one billion web pages. Promoting a website includes both online and

offline strategies. Online strategies include search engine optimization, banner ads, multiple

points of entry, viral marketing, strategic partnership and affiliate marketing. Presently, the

cyberspace is already cluttered with thousands of sites probably selling similar products. For the customers to know of the Companys existence and to garner information on the kind of


products or services that the company is offering, promotion has to be carried out. There can

be traded links or banner advertisements for the same. Also the traditional mediums like

print, outdoor advertising and television can be used to spread awareness. Email campaigns

and spamming the Chat rooms on almost every server has been exploited to the maximum for

the cause of promoting their website.

5. Presentation The presentation of the online business needs to have an easy to

usenavigation. The look and the feel of the web site should be based on corporate logos and

standards. About 80% of the people read only 20% of the web page. Therefore, the web page

should not be cluttered with a lot of information. Also, simple but powerful navigational aids

on all web pages like search engines make it easy for customer to find their way around. The

principle of K.I.S.S (Keep it simple stupid) is the most important factor that has to be

considered while presenting the online business

6. Processes Customer supports needs to be integrated into the online web site. A

salesservice that will be able to answer the questions of their customers fast and in a reliable

manner is necessary. To further enhance after sales service, customers must be able to find

out about their order status after the sale has been made. For e.g. FedEx (www.fedex.com),

the overnight Courier Company allows its customers to keep track of the parcel and they are

well informed about the present whereabouts of their package. Similar variants have been

used by the Government of India for its Speed post and Registered Ad services where you

can keep a track of your post by entering the code that has been issued to you.

7. Personalization Using the latest software from Broad-Vision and others, it is

possible to customize the entire web site for every single user, without any additional

costs. The mass customization allows the company to create web pages products and

services that suit the requirement of the user. A customized web page does not only

include the preferred layout of the customer but also a pre selection of goods the

customer may be interested in. For e.g. Yahoo! (www.yahoo.co.in) entered the Indian

cyberspace and started its personalized services. A registered user of Yahoo can now

personalize the front page with all the information he needs. He can read the news of


the world, add a tax calculator, see the weather forecasts of his city and listen to his

favorite songs and all this simultaneously.

Effective customer retention strategies must focus on measuring and

achieving the following objectives:

Maximize customer satisfaction for current customers.

Identify dissatisfied customers before they leave through a customer retention program.

Measure why current customers leave.

Customer retention requires attention to customer details. Establishing personal relationships

is difficult, especially as businesses grow. We are all aware of businesses that have lost their

personal touch and seemingly no longer know either your name or your needs.

Effective customer retention management can help you build your business without

losing the friendly face on your business. Because business evolves, the customer

retention target is continually moving and customer retention surveys can be good for

the following:

Discovering the Defects

In-Time Identification of Dissatisfied Customers

Employee Involvement

Benchmarking of Satisfaction and Customer RetentionLoss Levels

Planning of Customer Retention Solutions

Establishment of Standards for Excellence

Process Management and Improvement

Stretch Objectives for Continued Satisfaction and Improvement

Typical reasons for customers leaving include:

Poor Service


Lack of Personalized Service

Cost / Value Breakdown

Lost Customers (Contact Information Outdated)

Competitor Superiority

No Longer in the Market (Doesnt Need)

The Best Approach For Customer Retention and Satisfaction Surveys

The best approach to customer retention is to monitor customer satisfaction and building

customer relationships.

Customer retention by its very nature is individualized and will vary by the kind of product

or service provided, the kinds of customers served, the number of customers served, the

longevity and frequency of customer/supplier interactions, and how you intend to grow your

business.

Three very different approaches to customer retention produce meaningful and useful

findings:

Post Purchase Evaluation

Satisfaction feedback is obtained from the individual customer at the time of product or

service delivery (or shortly afterward). This type of satisfaction survey is typically used as

part of a CRM (Customer Relationship Management System) Retention System and focuses

on maintaining a long term relationship with the individual customer.

Periodic Satisfaction Surveys

Satisfaction feedback from groups of customers at periodic intervals to provide an occasional

snapshot of customer experiences and expectations. This type of survey monitors the general

health of the company and products and can be used to provide tracking benchmarks.

Continuous Satisfaction Tracking

Satisfaction feedback is obtained from the individual customer at the time of product or

service delivery (or shortly afterward) and then periodically thereafter. Customer retention


scores based on the satisfaction tracking surveys will provide flags and a management

tracking tool to assure quality is at high levels over time.

Customer Retention provides an understanding of customers expectations and satisfaction.

Satisfaction surveys typically require multiple questions that address different dimensions of

the satisfaction concept. Satisfaction measurement includes measures of overall satisfaction,

satisfaction with individual product and service attributes, and satisfaction with the benefits

of purchase. Retention measurement is like peeling away layers of an onion-each layer

reveals yet another deeper layer, closer to the core.

At a minimum, customer retention surveys should address:

Service concerns that seem to cause customers to leave.

An evaluation of the competitiveness of current pricing.

An evaluation of advertising campaigns, features and benefits promised and delivered.

An evaluation of competitor advertising campaign.

Implement an exit interview to determine why the customer is leaving or has left.

Develop a customer retention problem escalation program that has the power to present

incentives, counter-offers, or resolve all problems.

Each of these methods will increase retention through customer intercept, development of

measures to key in on customer problems, and measures of the degree of success.

Customer Feedback: Voice of the Customer

Successful companies understand the importance of the Voice of the Customer (VOC) as an

integral part of customer retention management.

Voice of the Customer addresses both strategic and operational decisions of the

corporation using a hierarchical customer retention and needs analysis. VOC prioritizes

customer needs according to what they really need and want.

As key criterion in total quality management, Voice of the Customer, drives the Baldrige

Award criteria. As stated by The National Institute of Standards and Technology (NIST), the

first key concept in the Baldrige Award criteria is that quality is based on the customer


Voice Of The Customer Retention Surveys

Our Voice of the Customer monitoring system allows data integration to any CRM solution.

We have experience working with Siebel, Microsoft, People Soft, etc. Customer surveys can

be sent automatically and on a continual basis with no human interaction. Sophisticated

customer tracking and smart text piping options may be used to customize and pre-populate

the questionnaires based on the individuals CRM or account information.

Our clients are using the VOC system to send automatic surveys to their customers after

using a help desk, making an online purchase or registering a new product. VOC surveys are

personally addressed to the individual while asking specific question based on the customers

recent purchase or request.

Our clients are using these customer retention survey opportunities to help determine market

segmentation, product evaluation and awareness along with overall satisfaction and intention

to continue as a customer with the company.

In the case of the customer being extremely dissatisfied with a process or purchase, our

clients can access or receive via e-mail a copy of all dissatisfactory surveys. Customer

feedback is sent immediately via email to a designated individual inside the organization for

timely follow up and quality control.

As an example in the consumer products area, one manufacturer observed a long term

decline in sales of a leading item in their product line. Management struggled with

determining whether the decline was due to quality issues or due to other issues related to

product appeal. Using Voice of the Customer technology, important customer needs were

identified. More in-depth analysis showed that these needs were associated with key design

attributes that could be easily modified to improve product quality. The net result was a

reversal in sales decline and rejuvenation of an important part of the product line.

Voice of the Customer technology satisfies information needs while keeping the customer in

mind.


Findings

3.1 Ecommerce Electronic Commerce (Ecommerce) is online buying or selling of products and/or services.

Ecommerce is also known as ecommerce or E-business. Ecommerce has its own benefits

which made it as popular as it nowadays. Ecommerce took some time to become popular

because it was new and customers were defensive towards nonretail buying. As everything

comes with its advantages and disadvantages both, ecommerce has it too. Electronic commerce, commonly known as e-commerce, is a type of industry where buying

and selling of product or service is conducted over electronic systems such as the Internet

and other computer networks. Electronic commerce draws on technologies such as mobile

Commerce, electronic funds transfer, supply chain management, Internet marketing, online

Transaction processing, electronic data interchange (EDI), inventory management systems,

and automated data collection systems. Modern electronic commerce typically uses the

World Wide Web at least at one point in the transaction's life-cycle, although it may

encompass a wider range of technologies such as e-mail, mobile devices social media, and


telephones as well.

3.1.1 Evolution of Marketing: At the beginning of the century, social life was mostly local. It was followed by a period in

which commodities were produced on a mass scale. Consumer Marketing operated on mass

marketing principles and business primarily concerned itself with how to build the best sales

force. At the end of the century, there is an emerging global culture. The major driver of

these changes is technology. Technological change has moved steadily back focusing on the

individual. These changes shape the possibility and conduct of business. Marketing is

especially tied to communication and transportation revolution. As the tools and reach of

marketing increase, the job and responsibilities of marketers have evolved with them.

Kotler formalized this evolution with his book "Marketing Management." His key stages are

production, sales and brand management. Each of these is strongly motivated by

technological opportunities, which permit new methods and new opportunities. A fourth

stage, a focus on the individual customer, is also important. As the new technology of the

Internet develops, it reinforces the new marketing emphasis - which in many ways is a return

to business at the turn of the century.

In todays technology driven world, a new fast paced digital economy is emerging. In the

near future, it wouldnt be surprising to see that there are companies that exist only inside

computer networks. Most business transactions will be made electronically, directly from the

producer to the consumer, bypassing the supply chain. In the digital marketing environment,

the consumer becomes an integral player in the development of the product. In fact, a

consumer might build the product himself from a wide array of parts provided by the

company. It is e-commerce that is changing the way products and services are conceived,

manufactured, promoted, priced, distributed and sold. The reason being that it is much

cheaper; it allows vast coverage and helps in serving the customer better.


3.2 Growth of Online media India has an internet user base of about 137 million as of June 2012.The penetration of e-commerce is

low compared to markets like the United States and the United Kingdom but is growing at a much

faster rate with a large number of new entrants. The industry consensus is that growth is at an

inflection point.

Unique to India (and potentially to other developing countries), cash on delivery is a preferred

payment method. India has a vibrant cash economy as a result of which 80% of Indian e-commerce

tends to be Cash on Delivery. Similarly, direct imports constitute a large component of online sales.

Demand for international consumer products (including long-tail items) is growing much faster than

in-country supply from authorized distributors and e-commerce offerings.

The Figure below gives us a fairer idea of the growth of internet usage and e-commerce in India

Fig: Growth of E-commerce in India


Fig: Growth of E-commerce over years

3.3 Effectiveness of the Net in Reaching Out to the Masses

The reach of Internet may not yet be as wide as that of other mass media, but given its unique

advantages, it is undoubtedly the communication medium of the future. Marketers around the

world have from time to time tried to reach their target audiences through various media.

Scientific and technological advances have and will continue to create newer media to

improve communication, and marketers will

Internet advertising

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