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EFFECT OF MOBILE MARKETING ON YOUNGSTERS

Abstract:

Mobile marketing is a attractive medium for the brand managers to communicate with the customers for marketing purposes using different forms of mobile communication mediums including SMS, MMS and other web-enabled. Mobile device based communications. It is a fact that today's youngsters are the consumers of tomorrow. It is evident due to current global economic crisis and recent global worries, there is a need to prepare youngsters to consider different consumption patterns, while bearing in mind that becoming a wise spender doesn’t necessarily preclude living a rewarding and satisfying life. In this regard to empower young consumers helping them to access the market with clearer ideas on the pros and cons of each 1purchase and to develop their capacity to select among existing products and services. We would like to highlight the fact that the resources available to producers are very powerful on the opposite side, the child consumer has very few resources for creating defensive strategies. This leads to reconsidering the role of consumer associations as good references for elaborating and communicating alternative consumption patterns, clarifying risks connected with certain lifestyles and providing information on safety to young consumers.

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1. INTRODUCTION

Information technology affects everything from daily life to business in the 21st century. In business environment, it shapes not only commerce but also the way in which companies implement their marketing strategies. Offering new marketing channels to interact with customers is crucial to increase sales for company. Thus, the successful application of 1information technology to connect marketing applications is highly prominent. One of the advances in information technology is wireless mobile communication technology that makes the ―anytime-to-anyplace� communication possible. This technology system allows increased mobility and extended services even to remote areas. Due to wireless communication system, mobile phone users are able to access their e-mails, search, order and buy products and services from everywhere without computers. Besides the Internet and personal computers, the mobile phone is the key tomarketers because it is extremely popular and offers people the opportunity of mobility now.

Through the introduction of data services, Short Message Services (SMS), Multimedia Message Service (MMS), Mobile Internet, etc., the mobile phone is rapidly becoming a viable commercial marketing channel for to attract youngsters. Nowadays, mobile marketing adoption and acceptance is on the rise, but marketers would have little ability to consistently generate profits without a clear understanding of the elements driving young consumer acceptance. The main objective of this study is to draw Global System for Mobile Communications (GSM) operators and entrepreneur’s attention to new opportunities in mobile commerce and mobile marketing.

The penetration and adoption of mobile is almost 100% in many western and Asian countries (Netsize, 2007;The Economist, 2005). This ubiquitous phenomenon has made a revolutionary contribution in the adoption and diffusion of mobile commerce since it allows marketing activities to be tailored to actual

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customers' needs and tastes , and targeting customers more accurately through using one-to-one marketing communications compared to impersonal and mass media (Carter, 2009; Shaw et al. 2001). The incredible number of innovations which are introduced yearly, and the fast technological developments (Easing wood and Koustelos, 2000), have also changed the advertising philosophy (Barwise & Farley, 2005), leading firms to adopt mobile marketing strategy as a way to make their advertising messages break through the clutters (Zhang and Mao, 2008). Early scholars conclude that mobile marketing provides marketers with a real opportunity to get a high response rate compared to traditional media(e.g. Woodside and Soni, 1991). The justification for that is that people within the mobile marketing network such as customers, businesses, advertising agencies, marketers and brands can interact with each other in more creative and fashionable way .

Mobile devices are particularly appealing to marketers due to their potential for targeting, interacting with and establishing relationships with consumers. Indeed, Rohm and Sultan (2005) argue that handheld mobile devices allow marketers to deliver personalized, context- and location-specific messages to individual members of a target market. They note that Global brands such as McDonald’s,Dominos, Coca-Cola, MTV and Nike are all advanced in their development of mobile marketing communications (MMC) initiatives. Almost one-third ofIndians 11–21-year-olds used their mobile phones to surf the internet at least once a day, while a quarter used them to take photographs every day. As mobile phones improve their capacity for storing downloaded music and video content, they are likely to become even more indispensable to young consumers. This suggests that young people’s use of mobile phones, and the factors driving this, is a topic worthy of marketers’ attention.

2. Literature Review

Mobile Marketing Association (MMA, 2006), defines mobile marketing as "the use of wireless media as an integrated content delivery and direct response vehicle within a cross media or standalone marketing communications program". Scharl et al. (2005) define mobile marketing as the use of a wireless medium to provide customers with individualized information about products, services, and ideas at any time and locations, which benefit all stakeholders. In the same vein, Wireless Advertising Association (WAA) defines mobile marketing as releasing advertising messages to mobile phones or PDAs through the wireless network (Xu, 2007). According to Advertising age (2006, p. 20) mobile marketing is defined as “the use of wireless media as an integrated content delivery and direct-response vehicle wi

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thin a cross-media marketing communications program”. Leppäniemi et al. (2006) carried a comprehensive review about mobile marketing research and found 21 different definitions. The authors found that academicians have used different terms interchangeably such as mobile advertising, wireless marketing and wireless advertising which all refer to mobile marketing. The critique which was made by Leppäniemi et al. (2006) and Balasubramanian et al. (2002) is that there is no conceptual agreement about the definition of mobile marketing, besides most of the proposed definitions mainly focused on the technology itself rather than trying to go beyond that to clearly relate such technology into marketing field.

However, what tends to be unique about mobile marketing strategy is that the mobile device is exceptionally personal(Tahtinen & Salo, 2003) thus enabling marketers and advertisers to interact directly and get customers engaged in a direct dialogue by replying to the message content (Bauer et al. 2005), unlike the traditional advertising media which is regarded as a non-personal means of sending a message where customers are passive (Ayanwale et al. 2005). It has been suggested that in the mobile marketing network, firms can get customers engaged through a call-to-action which is not possible via other media channels and make customers respond via text messaging, multimedia messaging, picture messaging, Bluetooth alerts, or voice channels on their mobile(Carter, 2008). It is quite clear that mobile marketing is considered as a viable means of marketing communication because of the inherent attributes and characteristics in such strategy which include personalization, localization, uniqueness, ubiquity and interactivity (Bauer et al. 2005). To support this line of thought, WWA carried a survey in mobile marketing industry and found that more than 90% of mobile advertising practitioners, agencies and professionals agreed about the necessity of the medium to be personalized in order to succeed. Besides, there is a wide recognition that such a strategy is embraced by different firms because of its high retention rate, high reach, high response rate and low cost (Pearse, 2005).

This is evident in the findings of Forrester research where 47% of companies have set plans for boosting their mobile marketing expenditures next year(2010), third of interactive marketers now utilize mobile marketing, and another one-third plan to do so Magill, ( 2009).Mobile marketing formats encompass short message service (SMS), multi media service (MMS) and WAP pushes messages which all aim to provide all players in the mobile marketing environment with a clear measures against which to judge the medium(Kimberley, 2007). Such formats are regarded as valuable and helpful channels to direct marketing and promotional activities. Therefore it is expected to achieve higher response rate compared to e-mail marketing since such formats are sent more personally (Frolick and Chen, 2004). Furthermore, SMS ads messages are more likely to be viewed (70%) than

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email marketing messages (30%) (Timpson and Troutman, 2009). Another advantage is that SMS and MMS may increase brand recall and association leading to generate customers purchase intentions (Li and Stoller, 2007). The inexpensive cost of using SMS and MMS to deliver message contents compared to traditional media, and the interactivity (customers could receive a free gift with their meal using an e-coupon downloaded to their mobileVol. 5, No. 3 International Journal of Business and Management 30 phone) has made such formats the backbone for mobile marketing (Xinzed, 2008).

Therefore, it is expected that around 3 billion SMS ads will be sent by 2011 compared to 41 millions ads sent in 2007 (Timpson and Troutman, 2009). It isalso suggested that SMS and MMS can form a strong tie of communication just like face to face communication leading to generate positive word of mouth (Okazai, 2009). Nonetheless, other argue that short length of SMS as it contains few words or numbers will limit the potential use of such strategy in the future (Sinisalo and Karjaluoto, 2009).

2.1 Enabling Technologies & Types of Mobile Marketing

Improved technology in mobile devices allowed us to surf the internet, find the location with GPS (Global Positioning System), tweet with friends or chat with them, watch movies and play games and so on (Liuet al., 2010).This part of the study will deliver information about technology that making mobile marketing possible and present types of current mobile marketing applications.

3G and Wi-Fi

The term 3G is one of the latest broadband mobile communication system that uses internet and variety of multimedia communications (Bao, 2010). Zeng et al., (2009) explains the benefits of 3G by stating that,3G enabled better data and voice transfer rate, and it is providing various different services like web browsing, video conferencing, e-commerce applications (Video, voice communication, online media, Mobile TV and etc.) and personalized information services. Large variety of 3G mobile services transformed mobile devices from traditional voice phones to entertaining, life and business media (Yang, 2010). When we compare surfing on the internet via

computer with via 3G there is some advantages of 3G can be seen like without time and place limitations, which are becoming an opportunity for mobile commerce to go further (Zeng et al., 2009). And if special services can be introduced to people, it can accelerate the improvement of mobile commerce (ibid.). These days Wi-Fi is becoming more and more popular way to connect to

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the internet, people are taking advantage of connecting to internet without wires in hotels, at the university campus, in the office, and Wi-Fi is becoming synonymous with WLANs (wireless local area networks) allowing access to theinternet (Hayes et al., 2009). Currently Wi-Fi is available through wide range of mobile devices as a default function (Henry et al., 2002). Wi-Fi hotspots are providing free internet access to everyone who is carrying a device with Wi-Fi function (ibid).

Mobile banner advertising

Developments in mobile screen technology increased the resolution and provided an opportunity for advertisers to implement higher quality images and banners on mobile devices (Mobile Marketing Association, 2007). Consequently advertisers can produce more efficient advertisements with higher quality, richer and bigger (ibid).

FIGURE: Example of Mobile Banner Advertising

Location based marketing

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Location based services are tried to be produced by many marketers; the main value proposition is the location (Becker et al., 2010). However, location is not the main goal it is an instrument that empowering the services like mapping, advertising and search to be more valuable (ibid). Location-based services are very beneficial for local advertising campaigns: for example consumer may receive short message about the nearest restaurant or bus station with directions (Dickinger et al., 2004). Location-based advertising utilizes the location by using individual consumers to target consumer in particular location (Tsang et al., 2004). Location based advertising is time sensitive in a way that advertisement can be sent to signed up client when this client pass through a certain point of purchase (Dickinger et al., 2004). By tracking mobile devices technical address it is possible to detect local position of the user in the environment of mobile commerce (Lee et al., 2007). As an example Telia (Swedish company), one of the biggest telecommunication company in Europe, applied real-time SMS game by using mobile devices position to allow users to interact with each other while playing (Dickinger et al., 2005).Contextual marketing is also possible with location based marketing. Example for contextual marketing, information or coupon about a specific product can be sent to consumer via mobile device while consumer is in the department store to buy specific product (Lee et al., 2007).

Bluetooth

According to Groten et al., (2009): “Bluetooth is a radio interface for short-range connections between electronic devices” (p.1134-1138). If Bluetooth is enabled, any user with a mobile device can download rich content like graphics, video, sound, wallpaper, text, and software (Leek et al., 2009). Interaction within mobile devices is possible via Bluetooth; mobile devices can connect to other mobile devices with Bluetooth if it is in range (Groten et al., 2001).

Bluetooth wireless proximity based marketing

The proximity path is the use of Bluetooth to interact with consumers which is called proximity marketing, or the local delivery of the content to mobile devices (Becker et al., 2010). The Bluetooth path is the usage of Bluetooth on mobile devices as a communication channel (ibid). Bluetooth technology provides a powerful opportunity for marketers to use location specific areas to reach consumers with rich content, and it is also cheaper and less complex than SMS (Short message service) and MMS (Multimedia message service) (Leek et al., 2009). Bluecasting is the use of Bluetooth for mobile marketing purposes (Becker et al., 2010). According to Becker et al., (2010) Bluetooth marketing can be explained as the placement of Bluetooth access point in any public place like airport, train station or any live event, and when consumer walks by this device

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and the Bluetooth is enabled on mobile device access point request automatically request interaction with mobile device. If user accepts the request Bluetooth access point sends rich content like game, ringtone sound, picture or any other form of content to users phone (ibid). As an example of this, rock group Coldplay (English famous rock group) used Bluetooth marketing when launching the new album X&Y, 20,000 people downloaded content like sample tracks and clips frommain rail terminals in London for two weeks (Tsiandar, 2006).

Software and Technology

Mobile applications are available for mobile devices like enterprise digital assistants, mobile phones and personal digital assistants (PDA) (Ho et al., 2010). Latest advances in mobile technology let mobile phones to have big memories, convenient internet connections and faster processers (Liu et al., 2010).Lately mobile application market improved dramatically, number of content providers, application developers and advertisers increased which improved the mobile services and or functions (Ho et al.,2010). Example for large mobile application platforms are Google Android Market, Microsoft WindowsMarket, BlackBerry Application World, Nokia Ovi and Ovi Store etc. (ibid).

Interactive Voice Response

Interactive voice response is providing and option to send or receive voice calls with people andcommunicating with them without any live person is involved on the other side of the communication(Becker et al., 2010).

SMS & MMS

Short Message Service (SMS) defined by Taylor et al., (2008) as a service enabling to send and receive short messages (up to 160 caracter) via mobile phones. According to Dickinger et al., (2004) SMS is first and most prosperous type of mobile data transmission. MMS (multimedia message services) is theimproved version of short messaging service which allows users to send combined video, sound and pictures (Okazaki, 2005).

SMS & MMS marketing

Personal nature of the mobile phones accelerated the usage rate of SMS and MMS in many parts of the world as a marketing channel (Taylor et al., 2008). Even

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tough MMS is used less than SMS, rapid growth in mobile technology will increase the rate of usage of music, videos, sounds and visuals in near future.

SMS marketing can provide advantages like lower cost than other media channels, since the main expanse is buying mobile phone numbers (Dickinger et al., 2004). According to Dickinger et al., (2004) there are several different types of text messaging applications exists which are; information services, mobilecouponing, mobile CRM (customer relationship management), branding, entertainment and product launches.

Mobile couponing is one type of specific promotion tool wich integrates classic couponing with mobile communications (Wehmeyer et al., 2005). “Advertising funded information services include news,weather, traffic, market rates, horoscopes, or songs just played on the radio” (Dickinger et al., 2004,p.159-173). User may pay little or nothing for this kind of services and information (ibid). Companies are changing their focus from mass marketing media to more targeted personal media and replacing them with more personalized media (Leppäniemi et al., 2008). CRM is supported by text messages by allowing registered consumers to receive newsletters, special discounts, prizes and coupons (Dickinger et al.,2004).

According to Dickinger et al., 2004 mobile marketing is such a tool that enables branding. Wella, one of the world’s leading cosmetic company, with special campaign they sent SMS messages to registered consumers with a kiss and consumers positive feelings about this campaign resulted in word of mouth byforwarding messages to friends (Dickinger et l., 2004). Entertainment included marketing activities are capable of increasing the customer loyalty and add value .

Attitude

Attitude is a major factor in information systems and marketing researches (Tsang et al., 2004). Attitude is outcome of what we say, feel and know (Mooij, 2005). For Solomon, (2009) “Attitude is a lasting general evaluation of people (including oneself), objects, advertisements or issues.” (p.237)

It is important to highlight that attitude toward mobile advertising refers to consumers’ attitude toward advertising in general rather than one specific type of

advertisement (Haghirian et al., 2008). Our feelingsdirectly effecting how we feel about the product itself (Solomon, 2009).General public attitude toward advertising has been a main concern and focus for a long time (Tsang et al., 2004). Consumer attitude toward mobile marketing has been popular among different researchers,(Tsang et al., 2004; Xu, 2007; Haghirian et al., 2008; BrackettDickinger et al.,2005).

Factors That Affecting Consumer Attitudes

This part of the study will present current theories and models in tliterature to discuss differenttoward mobile marketing. The effect of personalizationtoward mobile marketing will be presented (Xu, 2007). Xu’s model of factorscontributing to Attitude and intention toward mobile advertising is shown in Figure below

Figure: Factors Contributing to Attitude and Intention toward Mobile Advertising

Personalization and Content

According to Xu, 2007 by personalizing the mobile adveconsumer attitude can be improved. There is a direct correlation between content (Informative, irritation, credibility and Entertaining variables of the content), of mobile marketing and personalization with consumer’s overall

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advertisement (Haghirian et al., 2008). Our feelings about product advertising are how we feel about the product itself (Solomon, 2009).General

public attitude toward advertising has been a main concern and focus for a long al., 2004). Consumer attitude toward mobile marketing has been

popular among different researchers, especially focusing on mobile advertising (Tsang et al., 2004; Xu, 2007; Haghirian et al., 2008; Brackett et al., 2001;

Factors That Affecting Consumer Attitudes

This part of the study will present current theories and models in the relevant literature to discuss different variables that playing a role in consumers attitude toward mobile marketing. The effect of personalization and content on attitude toward mobile marketing will be presented (Xu, 2007). Xu’s model of factors

ibuting to Attitude and intention toward mobile advertising is shown in

Factors Contributing to Attitude and Intention toward Mobile Advertising

Personalization and Content

According to Xu, 2007 by personalizing the mobile advertising message consumer attitude can be improved. There is a direct correlation between content (Informative, irritation, credibility and Entertaining variables of the content), of mobile marketing and personalization with consumer’s overall attitude.

about product advertising are how we feel about the product itself (Solomon, 2009).General

public attitude toward advertising has been a main concern and focus for a long al., 2004). Consumer attitude toward mobile marketing has been

especially focusing on mobile advertising et al., 2001;

he relevant variables that playing a role in consumers attitude

and content on attitude toward mobile marketing will be presented (Xu, 2007). Xu’s model of factors

ibuting to Attitude and intention toward mobile advertising is shown in

rtising message consumer attitude can be improved. There is a direct correlation between content (Informative, irritation, credibility and Entertaining variables of the content), of

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Personalization

Mobile commerce holds a great potential for personalization, because of the nature of mobile devices they provide personal information of users (Lee et al., 2003). Personalized advertising improve the experience for companies and consumers (Dickinger et al., 2004). By allowing mobile advertising providers tocollect data about demographics and location of the consumers, personalization improves the quality of mobile commerce and turns it into important medium (Xu, 2007). The impact of the message can be increased by personalizing the message (Dickinger et al., 2004). Success of the target marketing is based on well-structured and maintained databases.

Entertainment

Customer loyalty can be increased with entertainment services, furthermore extra value can also be created for costumers (Haghirian et al., 2005). Informative and entertaining messages with creativity is holding potential to generate positive attitude toward mobile marketing activity among consumers (Baueret al., 2005).

Informativeness

Assuming the mobile platform as a relatively new marketing channel, marketing centered activities like content and information sharing are main motivations for consumer acceptance of mobile marketing (Sultan et al., 2010). The user needs easy access to the information that he or she is looking for (Haghirian et al., 2005). The main difference between personalized mobile marketing with informativeness is that personalization highlights the individual preferences and adjusted to personal needs and interests (Xu et al., 2007).

Credibility

Advertisement credibility is defined by Lutz et al., 1989 as how consumers perceive the brand is truthful and believable, which mentioned in the advertising. Credibility of the advertisement should be considered as an important variable when determining the attitude toward advertisement; in addition to that attitudetowards advertisement and mood should be ignored when considering the impact of them on attitude toward advertisement (ibid). There are no academic findings about the impact of the credibility that delivered to mobile devices (Haghirian et al., 2005).

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Irritation

According to Haghirian et al., 2005 Confusion among consumers may cause negative reaction toward mobile advertising. Complex mobile advertising message can cause irritation among consumers, and this disturbance decrease the value of the advertising for consumers (ibid). According to Tsang et al., 2004there is a negative relation between attitude toward mobile advertising and irritation.

3. Research Objectives

To check the awareness of the mobile marketing on the youngsters of Tirchy and Tanjavur city

To know the preference of people towards mobile marketing on the youngsters of Trichy and Tanjavur city

To check the reliability of mobile marketing on the youngsters of Trichy and Tanjavur city

Research Design

Sampling frame: all individuals between 18 years to 35 years in Trichy and Tanjavur cities

Sampling unit: all individuals between 18 years to 35 years in Trichy and Tanjavur cities

Sample size: 100 respondents Sampling method: non-probabilistic convenience sampling

Primary Sources: survey

Instrument: Questionnaire

Secondary Sources: Websites, book for market research.

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4. Over View Of Telecom Industry

The number of telephone subscribers inIndiaincreased to 951.34 Million at the end of March 2012 as compared with 943.49 million in February 2012, thereby registering a growth rate of 0.83%.The overall tele-density in India reached 78.66. The urban teledensity is 169.55 and rural tele- density is 39.22.

Wireless tele-density (GSM, CDMA & FWP)

Wireless subscriber base increased from 911.17 million in February 2012 to 919.17 million at the end of March 2012, registering a growth of 0.88%.

Wire line tele-density:

Wire line subscriber base declined from 32.33 million in February 2012 to 32.17 million at the end of March 2012. BSNL/MTNL, two PSU operators, hold 80.59% of the wire line market share.

Overall wire line tele-density is 2.66.

Broadband (256 kbps download)

Total broadband subscriber base has increased from 13.54 million in February 2012 to 13.79 million in March 2012, a growth of 1.86%.

The Key players in the Telecom Market in India

Cellular Service provider:

1. BSNL

2. Airtel

3. Vodafone

4. Reliance

5. Tata indicom

6. Spice

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5. GLOBAL SCENARIO

Until the 1980s the world telecommunications systems had a simply administrative structure. The United States telephone service was supplied by a regulated monopoly, American Telephone and Telegraph (AT&T). Telegraph service was provided mainly by the Western Union Corporation. In almost all other countries both services were the monopolies of government agencies known as PTTs (for Post, Telephone, and Telegraph). In the United States beginning in 1983, AT&T agreed in a court settlement to divest itself of the local operating companies that provided basic telephonic service. They remained regulated local monopolies, grouped together into eight regional companies. AT&T now offers long distance service in competition with half a dozen major and many minor competitors while retaining ownership of a subsidiary that produces telephonic equipment, computers and other electronic devices. During the same period Great Britain’s national telephone company was sold to private investors as was Japan’s NTT telephone monopoly. For telegraphy and data transmission, Western Union was joined by other major companies, while many multinational firms formed their own telecommunications services that link offices scattered throughout the world. New technology also brought continuing changes in the providers of telecommunication. Private companies such as Comsat in the United States were organized to provide satellite communication links within the country. Around the world we are witnessing remarkable changes to the telecoms environment. After years of debate, structural separation is now taking place in many parts of the world including Hong Kong, New Zealand, Singapore and some European markets. Structural separation – or at least full-blown operational separation – is required to advance the entire industry and to create new business opportunities and innovations which will benefit our society, our economy and ultimately our industry. The focus is also shifting away from broadband to what it can actually achieve. Next Generation Telecommunications better describes this new environment and is essential for the emerging digital economy. Important services that depend on NGT include tele-health, education, e-business, digital media, e-government and environmental applications such as smart utility meters. In order to meet this burgeoning consumer demand for NGT applications, we are seeing increasing investment in All-IP Next Generation Networks and fibre networks. A proper inventory of national infrastructure assets is required if we want to establish an efficient and economically viable national broadband structure for these services. In the developing markets, next generations telecoms will take the form of wireless NGNs (ie, LTE/WiMAX). These are some of the elements of the broader ICT revolution that is unfolding before our very eyes. We are right in the midst of

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the transition from old communications structures (mainly one-way streets) to new structures that are fully-interactive and video-based. One of the drivers behind the industry changes are the declining revenues experienced by the telcos in their traditional markets. Over the past 10 years or so, fixed-line operators have been affected by deregulation, a severe industry downturn, declining prices and major inroads by mobile services. In addition, people are drifting to other forms of communication, such as email, online chat, and mobile text messaging instead of the traditional phone. This has also led to an increased need for bandwidth, which in turn has revived the submarine cable sector. In recent times there have been many cable build-out announcements around the world, and some major systems are again being constructed. Over 25 systems are expected to be built over the next two to three years and network upgrades are also on the agenda for some existing systems. It is clear that the mobile industry is also undergoing profound changes. The saturated developed markets are forcing the industry to find new revenue streams and we are now seeing other organizations such as media companies, content providers, Internet media companies and private equity companies becoming involved in this market. For the time being however, voice will remain the killer application for mobile with some data services included as support services and niche market services. 4G (ie, WiMAX/LTE) is the real solution for mobile data and by 2015 it is expected that the majority of mobile revenues will come from data. With the Internet economy, digital media and other telecommunications activities becoming further established, the need for modern and efficient infrastructure is becoming more critical.

6. Value added services

What is Mobile VAS?

A mobile value-added service (m-VAS) is the ability for cellular operators and service providers to charge a premium price for the services (beyond voice conversation) they offer to their subscribers (mobile users). Some of the services include: SMS (text messages), MMS (multimedia messages) , USSD (interactive menu based services) ,CRBT (caller ring back tone), video streaming , mobile advertisements, participation in polls and contests, location based services, mCommerce (financial transactions), Instant messaging, Infotainment services (news, weather reports, songs, recipes ), content downloads (wallpapers, screen savers, games, ring tones), down loadable mobile applications.

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Mobile Vas in India - Statistics and Trend

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7. Introduction to Mobile Marketing Sector

Introduction Marketing mobile

Marketers must remember that mobile cannot, and must not, be treated like other mass mediums out there. Mobile is a highly personal channel, with attendant sensitivities and double opt-in permission requirements. So it’s not the quantity that should matter for marketers looking to incorporate mobile into their multichannel marketing plans. It’s the quality – and that’s where mobile excels. While the economy could be better, that hasn’t stopped consumers from quickly shifting to mobile many tasks that previously were conducted on computers. The choice for marketers and ad agencies then is not to deliberate whether to have an SMS program or mobile banner ads or a mobile Web site or a mobile coupon program or a .mobi domain or an iPhone/BlackBerry/Android application. Instead, the decision to be made is which one of these options – or a combination – is relevant for the brand in its efforts to reach consumers through multiple, relevant touch points. Smart marketers and agencies will think like smart fishermen: fish where the fish are. Consumers have already moved to mobile, and are staying there for a long time. Marketers should focus this year and next on using mobile – especially SMS and applications – to build databases of consumers who have opted in not once but twice to receive targeted offers, alerts and information from marketers

“Mobile advertising has increasingly become a two-way street, providing a link for engagement between customers and companies,” said Bob Kraut, vice president of marketing communications at Pizza Hut. “Rather than simply giving customers information, companies are using mobile advertising as a way to provide customers with meaningful brand engagement,” he said. “In 2009, you’ll see an increase in people using mobile devices to make purchases. Mobile advertising will give consumers a way to immediately interact with Pizza Hut by placing an order entirely from their mobile devices.”

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CONCEPTUAL FRAMEWORK

Mobile Phone, Mobile Marketing and Mobile Commerce

One of the marketers� demands is to be able to communicate with potential customers and to contact them anywhere and anytime. Mobile phone made a revolutionary contribution to fulfilling the anywhere and anytime connectivity marketers� wishes. Yuan and Cheng (2004) emphasize that mobile marketing is getting increasingly popular because mobile phone is a personal device used in marketing. Scharl et al., (2005) define mobile marketing as using a wireless medium to provide consumers with time- and location-sensitive, personalized information that promotes products, services and ideas, thereby benefiting all stakeholders. Shortly, mobile marketing refers to marketing activities and programs performed via mobile phone in mobile commerce.

The rapid growth of mobile phone has also come up with a new term: mobile commerce. It has a strong impact on industries like e-commerce in general (E-Business Report, 2000) and transformed mobile commerce into a major driving force for the next wave of e-commerce (Liang and Wei, 2004). The growth and use of mobile commerce as an emerging technology has the potential to dramatically change the way consumers make business. Mobile commerce driven by wireless communication technology is also generating interest from marketers (Aungst and Wilson, 2005). Therefore, the penetration of this new technology has evoked changes in advertising, retailing and shopping in marketing, and

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companies wishing to make business in mobile markets should be ready for mobile marketing and mobile commerce.

In the literature, all mobile commerce definitions are very similar. In principle, any transaction with a monetary value conducted via mobile communication networks can be considered mobile commerce (E-Business Report, 2000). As regards this definition, Siau et al., (2001) define mobile commerce as a new type of e-commerce transaction conducted through mobile devices using wireless telecommunication networks and other wired e-commerce technologies. Bai et al., (2005) simply identify as the transaction conducted over a wireless telecommunication network, either directly or indirectly.

In mobile commerce, mobile marketing is increasingly prevailing and appealing to marketing for many reasons. For example, consumers carry them every day, everywhere, and mobile phones are almost always on (Yuan and Cheng, 2004). The forces underpinning the emergence of mobile commerce can be summarized as (1) proliferation of mobile devices, (2) convergence of mobile telecommunication networks and Internet, (3) transition to 3G (Third Generation Mobile System), and (4) the emergence of broad set of highly personalized location applications and services (Sadeh, 2002). Therefore, mobile commerce has attracted growing attention over the last few years and continued to revolutionize marketplaces by introducing new business models as well as offering some advantages to customers, retailers and GSM operators. Even though Barnes (2002) put forward that the diffusion of mobile commerce services are very poor so far due to high cost, slow transmission rates, high power consumption of devices and inadequate mobile interfaces, mobile commerce come true these days because of the wireless mobile technology developments and 3G phones.

Mobile Commerce Businesses and Services

In addition to e-commerce, mobile commerce creates new marketplaces among producers, distributors, retailers and customers anywhere and at any time mobile commerce models are divided into B2B (business to business) and B2C (business to customer) perspectives.

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B2C mobile commerce is composed of three parts: GSM operators or retailers, customers and logistics providers. GSM operators or retailers adopt pull promotion strategy over customers who have mobile phones in order to market and sell products and services. Customers can order products and services via mobile phone and purchase them. Logistics providers carry them from warehouse or store to customers. B2C perspective is just one example where this kind of powerful information could be aggregated by a carrier or a service provider for marketing purposes (Casal et al., 2004). B2C mobile commerce also requires a strong relationship among customers, retailers, GSM operators, logistic providers and banks etc. (Barutçu, 2007).

Basically, mobile commerce is a service-based business, and many business opportunities are offered in mobile commerce. Various classification attempts have been made in the literature to classify existing and possible mobile commerce services like commerce, shopping, entertaining, advertising, information service and personal interaction (Schnicke, 2002). According to Leem et al., (2004), the B2C mobile commerce is subdivided into commerce, intermediary and information models, and subcategories of B2C models represent the current outstanding mobile businesses in Figure 2. Funk (2005) analyzed the potential mobile service applications and explained how mobile phone affects the business, marketing and entertainment as seven applications; (1) multi-media mail, (2) mobile phones as portable entertainment players, (3) mobile marketing,

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(4) mobile shopping, (5) navigation, (6) use in lieu of tickets and money, and (7) mobile intranet applications.

Location-based mobile information and service play a significant part in B2C mobile commerce. The vast majority of uses for location-based mobile services are likely to be commercial, involving the provision of specific services adapted to individual profiles and their location (Casal et al., 2004). Using the information on the users identity, position, access time, and profiles, GSM operators or retailers can offer the users optimal information or services, which are contextually relevant to them at the point of need (Liang et al., 2004) and the resulting customers� location data can be used for direct marketing (Casal et al., 2004). To this date, GSM operators have been most interested in the use of location information for providing innovative location-based mobile services. These services have gained attention as companies are facing new opportunities in offering more customized services. The ability to identify the customer's location at a certain time is one of the most promising applications of mobile commerce (Barnes, 2003; Pura, 2005).

By using new browsers and other mobile applications, the new range of mobile technology offers the Internet „in user pocket� for which the users possibilities are endless, including banking, booking or buying tickets, shopping and real-time news (Barnes, 2002). When using the mobile Internet, mobile phone users reach

23

all web pages via 3G mobile phone without computer. Therefore, Funk (2004) described the key technological trajectories and their potential effect on the expansion of mobile Internet applications. The advanced mobile Internet technologies make the phone a portable entertainment player, a new marketing tool for retailers and manufacturers, a multi-channel shopping device, a navigation tool, a new type of ticket and money, and a new mobile intranet device.

Mobile Marketing Tools

Mobile advertising, mobile sales promotion, mobile entertainment and mobile shopping stand out as the critical elements in mobile marketing and mobile commerce.

(i) Mobile Advertising: A key component of mobile marketing communication is advertising, either in a push or pull mode. After obtaining the consumer�s permission, push advertising sends relevant but not explicitly requested text and video messages. Quah and Lim (2002) argue that the push model will dominate mobile advertising since it saves consumers� time and money compared to browsing content. SMS and MMS messages are main mobile advertising systems. SMS has become a technological buzzword in transmitting B2C messages to such wireless devices as mobile phones. Many brands and media companies include text message numbers in their advertisements to enable interested consumers to obtain more information. This mode of advertising takes advantage of valuable channels of wireless communication to enhance customer relationships, and to carry out direct marketing and promotional activities (Frolick and Chen, 2004). Moreover, MMS has provided more visual and active messages. Marketers can benefit from the use of photos, music, logos and animation, videos by advertising to consumers' mobile phones. SMS and MMS advertising are expected to achieve higher response rates than that of e-mail or television because all advertisements can be sent personally.

(ii) Mobile Sales Promotion: Sales promotion is one of the promotional mixincluding coupons, discounts, rebates, free samples, gifts and incentive items in order to observe an immediate effect on sales. Mobile coupons in sales promotion play a vital role, and marketers can predict a higher usage of mobile compared to their paper-based equivalents. Mobile coupons boast at least three advantages: (1) targeting based on mobile phone numbers, (2) time sensitivity, and (3) efficient handling by scanning the coupon’s bar code at the point of sale (Scharl et al., 2005). Thousands of Japanese retailers, restaurants, manufacturers, and other

24

companies employ the mobile Internet to send discount coupons, conduct surveys, and offer free samples to registered users via mobile mail. For example, many restaurants use these mobile-based coupons to offer temporary discounts on slow nights, thus creating a form of dynamic pricing (Funk 2005).

(iii) Mobile Entertainment: The mobile phone has become an important media and entertainment platform. In the mobile entertainment industry, there are lots of entertainment services like listening music, playing games, gambling, watching television, video and sport matches etc., which have set a stage for an explosion of mobile entertainment industry.

(iv) Mobile Shopping: Mobile phone is an exciting tool to expand customers� shopping options after the Internet. At first, mobile phone can seem like a scary place to shop; however, mobile phone users can go online to buy just about Consumers’ Attitudes towards Mobile Marketing and Mobile Commerce in Consumer Markets anything their need or want. Used properly, mobile shopping is a new easy, practical, and economical shopping tool. The sudden growth of mobile shopping has placed mobile retailers at consumers� fingertips, and allowed mobile phone users to purchase nearly anything they desire without ever leaving their houses and offices.

Success Factors and Barriers of Mobile Commerce and Mobile Marketing

There seem to be a good many issues that require attention from both the practitioner and academic worlds in mobile commerce and mobile marketing. Researchers from several countries gathered at the Fourth International Conference on Telecommunications and Information Markets to discuss some of the issues regarding e-commerce and mobile commerce in July 2001 (Dholakia, 2004). The fact that mobile commerce is not mature brings many challenges to mobile commerce adopters. Integrating content, software and hardware design and reconfiguring an effective business model to implement mobile commerce requires careful study and decision making (Wu and Hisa, 2004). Therefore, developing a successful mobile commerce system needs to meet a variety of success factors, including process supports, functional capability, implementation, marketing (Bai et al., 2005) and improving trust. Major barriers to mobile commerce and mobile marketing are the mobile web browsers, technological skills, perception of risks and traditional shopping culture, lack of awareness and understanding of the benefits provided by them. While it is possible to use the mobile phone itself to purchase products, the small screens and keyboards make it

25

difficult to search for products. Because the small screen and keyboard make it demanding to search for products via a search engine, a large number of the products purchased with a mobile phone are selected from personalized mail services that provide information on a specific type of product, which the user has registered for (Funk 2005) On the other hand, security, tangibility, and the lack of experience are also main barriers of mobile commerce (Fenech, 2002). Therefore, Yuan and Cheng (2004) and Bai et al., (2005) suggested that special software like recommender system or intelligent on-line purchasing advisors should be developed in order to recommend or advice products and services on a one-to-one basis. Recommender systems of automated product recommendation acquire customers' preferences and recommend products accordingly on a one-to-one basis in real time at a lower cost (Yuan and Cheng, 2004). Intelligent online purchasing advisors will assist buyers in specifying their product requirements, searching for product information and selecting the best supplier (Bai et al., 2005).

Entertainment dominates mobile internet consumption in India

26

8. Analysis

1. I decide to purchase on the basis of advertisements

Here it can be analyzed that majority people are agree with the statement 45%. So gives clear idea that some how advertisement do effect on the mind set of consumer.

5

45

20 2010

05

101520253035404550

Strongly Agree

Agree Netural Disagree Strongly Disagree

coun

t

Purchase on the base of advertisement

Series1

27

2. I do not respond to tele-callers

Here it can be analyzed that majority is with the option of agree and majority are strongly agree also so most of the people do not like to respond tele-callers at all.

5

45

20 20

10

05

101520253035404550

Strongly Agree

Agree Netural Disagree Strongly Disagree

coun

t

Respond to tele callers

Series1

28

3 I always seek detailed information before purchasing any product

Here it can be analyzed that majority are strongly agree with this statement that they seek full information before purchasing

45

30

15

5 5

05

101520253035404550

Strongly Agree

Agree Netural Disagree Strongly Disagree

coun

t

seeking information before purchasing

Series1

29

4. I get angry if caller calls frequently

Here it can be analyzed that majority is with the option of agree and majority are strongly agree also so most of the people do not like that callers call them on the frequent basis and ask for the feed back or something as reminder for the purchasing.

5. Advertisement is the best source to decide to buy any product.

31

37

18

95

0

5

10

15

20

25

30

35

40

Strongly Agree

Agree Netural Disagree Strongly Disagree

coun

t

get angry freauently calls

Series1

5

45

20 20

10

0

5

10

15

20

25

30

35

40

45

50

Strongly Agree

Agree Netural Disagree Strongly Disagree

Series1

30

Here it can be analyzed that majority are agree and neutral so by the cross checking of question 1 and question 5 are almost same respond. So it can be clear those respondents are truly aware about the filling questionnaire6. Mobile is more than just means of communication

Majority are fully agreed with the statement because they think that mobile phone can be use for entertaining perspective. And today most of the teenagers use mobile for that perspective only as camera facilities are also available.

5

45

20 2010

05

101520253035404550

Strongly Agree

Agree Netural Disagree Strongly Disagree

coun

t

mobile is more than communication

Series1

31

7. I check full details before buying any new product.

Here this statement is asked for the verification of the respondent is giving true respond or not. It is cross checked with the 3rd question. So it can be said that majority of respondents had given true respond. As the ratio is almost same for both the statements.

45

30

15

5 5

05

101520253035404550

Strongly Agree

Agree Netural Disagree Strongly Disagree

coun

t

cheking detalis before buying

Series1

32

8. I always give response to sms

Here it can be analyzed that respondents like to delete the sms are rarely read it on the immediate basis. As they read the sms only when they get time .only students do the immediate respond to sms.

Q 9. Do you have registered for DND ( do not disturb service ) ?

5

4520 20 100

1020304050

cou

nt

Response to SMS

Series1

92%

8%

do not disturb serviceyes no

33

� Out of the 100 respondents 92 have not registered for the DND as they like to know various schemes through mobile marketing. And they also want that they are interested in the calls coming from the service provider .

10.Do you use GPRS ?

Here it can be analyzed that students are the most users of GPRS .

yes 80%

no20%

GPRS

34

11. Do you use internet ?

As internet usage is must for every individual today in youngsters.

12. Do you have 3G enabled mobile phone?

Present generation are mostly using 3 g mobile in youth.

100%

0%

INTERNETyes no

80%

20%

3G mobileyes no

35

13. How do you currently react on receiving mobile advertising through sms ?

Here it can be analized that the more number of people like read the sms some of them ignoring and some them are following.

30

35 35

27

28

29

30

31

32

33

34

35

36

delete it read and rarely follow advertising

read and follow

coun

t

mobile following through sms

Series1

36

14. Recall of the brand increase if you get sms on mobile

Here it can analyzed that people are not much aware that whether the recall is increased or not.

30

35 35

27

28

29

30

31

32

33

34

35

36

yes no cant say

coun

t

recall increase brand of company

Series1

37

15. Which type of customer care executives calls you prefer?

Here it can be analyzed that people more like to hear the voice of female than male. And females also like to respond female callers only. So marketers are hiring more female tele-callers for the tele-calling.

9. CONCLUSION:

Mobile phone is a new direct marketing device that provides direct access to consumers and interacts with them in a very personal way. All GSM operators announce the launch of new mobile services, and the B2C mobile commerce and mobile marketing will be obviously becoming more popular in India. The mobile advertising, mobile Internet, mobile banking and mobile entertainment services are growing in the world and in India, GSM operators and retailers expect to benefit from these mobile marketing tools.

These findings indicate the centrality of mobile phones in the lifestyles of young people; they are woven into the fabric of their daily lives, in and beyond the home. Clearly there is much scope for further research in this area, not least in tracking the evolution of young people’s relationships with MMC over time. Other consumer groups may have very different experiences with and expectations of mobile phones, however, and these also merit research attention.

male15%

female85%

Customer Care executive

38

The dominant motivation for young people’s mobile phone use identified in thisstudy was convenient entertainment. This suggests that mobile phones offer an alternative to traditional forms of mediated entertainment such as television, with the immediacy of access to content and gaming providing instant gratification.The messages should be perceived by consumers as beneficial and useful and match their interests and desire. Mobile retailers are also encouraged to offer sales promotion to consumers who express the desire to receive their product advertisements through SMS messages.

39

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