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Research & Report Kamran 6118 Superior University, Lahore - 1 -

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Research & Report Kamran 6118

Superior University, Lahore - 1 -

Research & Report Kamran 6118

Preface

Chapters Page

1. Introduction to E-Marketing 6

2. Hypothesis 9

3. Research Design and Methods 13

4. Data Collection Methods 16

5. Sampling Design 18

6. History of E-Marketing 20

7. Merits and Demerits 23

8. Growth and Development 27

9. Advertising Cost 29

10. Strategies to Enhance E-Marketing 31

11. Mass Communication 38

12. Why the Top Ten Results? 39

13. Search Engine Optimization (SEO) 40

14. Ending History of Internet

Advertising

48

15. References 49

Superior University, Lahore - 2 -

Research & Report Kamran 6118

RESEARCH & REPORT

RESEARCH TOPIC:E-MARKETING

SUBMMITTED BY:Kamran Ikram

ROLL NO:6118 ( MBA Evening) 4th Semester

SUBMMITTED TO:

Prof. SOFIA WALEED

Superior University, Lahore - 3 -

Research & Report Kamran 6118

Dedication

I dedicate my whole efforts in working this project to

“My affectionate & kind parents, teachers,

my juniors & to all people who guided me &

provided information related to it”

Superior University, Lahore - 4 -

Research & Report Kamran 6118

Acknowledgement:

Firstly, I would like to thank my

ALMIGHTY ALLAH

For giving the ability, opportunity and strength to do this task and everything else in our lives. All my efforts on this project & everything else are for his Glory and not our own.

A good Teacher is a blessing of Allah that’s why I’m also greatly thankful to my dear

“Prof. SOFIA WALEED”

For her kind guidance and supervision. She motivated me to work hard and to achieve high-level performance. I also thank to the staff of Superior College who co-operated with me.

Superior University, Lahore - 5 -

Research & Report Kamran 6118

Introduction to E-Marketing

E-Marketing is also known as Internet

marketing & it is a component of

electronic commerce. E-Marketing can

include information management, public

relations, customer service, and sales.

Electronic commerce and E-Marketing

have become popular as Internet access

is becoming more widely available and

used. Well over one third of consumers

who have Internet access in their homes report using the Internet to make

purchases.

My research proposal is on E-Marketing and its practical implementation of

it in which I will try to find out why the net era needs more innovation and

how to get people attracted towards the net advertising.

For this I have selected and done research work on the net and finding

solutions to the problem and for future how it can be overcome. My

research is totally based on pure research that is basic research.

In my research design I am trying to explain the study, which I use in my

problem area of how to get people attracted towards E-Marketing and the

future of E-Marketing. I have explained the study, which I used, is

descriptive, type of investigation is correlation, study setting is non-

contrived and time of horizon is Longitudinal and then I explain the data

collection methods. There are different types of data collection methods but

Superior University, Lahore - 6 -

Research & Report Kamran 6118

I selected those methods, which I think is necessary for my research. Data

collection methods which I have selected are interview, questionnaires, and

observation method and come up with findings and solution for it because

research is conducted to eliminate the broad problem area. The basic aim

of research is to understand the facts and reality. But there is a need to

provide proper platform to express their efforts. We put our efforts into it as

much we can. Although there is a deficiency in it and every suggestions

and improvement are welcomed.

Check Out Some E-Commerce Ready Websites

International Websites

http://www.tigerdirect.com

http://www.deals2buys.com

http://www.ebuyer.com

http://www.ebay.com

http://www.bestbuyer.com

Local Websites

http://www.shophive.com

http://www.beliscity.com

http://www.pakgsm.com

http://www.galaxy.pk/

Superior University, Lahore - 7 -

Research & Report Kamran 6118

Objective:

o Strategies to develop E-Marketing.

Problem statement:

o Why people are not attracted towards E-Marketing.

o E-Marketing Future.

o Utilization of Resources.

o Abuse.

Reasons:o Wastage of time in the peoples mind.

o Wrong facts and Quality.

o Late Delivery Time.

o False Deductions.

o Fewer features in the product.

o Sometimes there is not proper feed back to the buyer

and the amount has been deducted from his account.

o Fear of Hackers on the net.

Superior University, Lahore - 8 -

Research & Report Kamran 6118

Hypothesis

a) Mass Communication Equals Better Marketing because it gives the chance for the people to look for what they are demanding.

b) E-Marketing Today with the concept of globalization is expanding businesses through effective techniques.

c) Search Engine Optimization relevant information should be given on the net for products to satisfy customers and potential users.

d) Search for Marketing Perfection such tools are to be designed which represented the true picture and association with customer objectives.

e) Textual Advertising should be compact and precise because too much information is difficult to handle so graphical representation is essential.

f) Directories & Search Engines should be on the target of providing accurate information to the required tasks.

g) Advertising causes costs because costs is an essential feature & should be look after before the launch of anything.

h) Potential for deception according to understanding of others representation must be designed according to there intellectual level.

Superior University, Lahore - 9 -

Research & Report Kamran 6118

he Internet has emerged as an important medium for

advertising, direct marketing, communication and electronic

commerce. Rapid expansion of the Internet user base and the

unique advantages of Internet Advertising have spurred businesses to

devote larger portions of the marketing budgets to E-Marketing.

TAdvertising on the Web is fundamentally different from advertising on

other media. The ability to target and interact with your customers on

the web brings an entirely new edge to marketing. The

nicepakistan.com offers the best of the web – audience, desirable

demographics, superior content and flexible ad programs designed to

get your results. Internet advertising in the entertainment and Telco

sectors is set to explode in Pakistan. An article on Pak Tribune reveals

details of a study of the Internet and Online Association (IOA), which

has estimated that the number of Internet users will go up to 100

million by 2007. Given such numbers, the IOA expects E-Marketing will

grow exponentially.

It is an attractive and inexpensive advertising medium. Your company

services or product is advertised, globally, 24 hours a day, 7 days a

week, even on holidays and weekends. Internet Advertising is multi-

layered. You can include photographs, maps, list, financial information

and graphs, brand advertising, as well as other product information.

Electronic Advertising can be updated regularly. Your customers can

make contact with you directly and interactively.

Superior University, Lahore - 10 -

Research & Report Kamran 6118

In Pakistan the area of E-Marketing is not developed yet because there

are not many organizations, which are operating on the net. Managers

still believe on the manual work but due to the investments in Pakistan

it is now emerging towards Internet and is starting to think about the

advertising and promotion on the net because the people living in

Pakistan are now addicted towards net and have a much time for

surfing.

Some new firms in the Market are adopting strategies that are good for

them as well as for its customers because they are totally customer-

oriented and are focusing on Net Advertising that saves time for the

Managers to think and get results.

As we know that the net users of Pakistan have a great mind of

Internet but still they think negative. I am talking about Hackers, the

individual, group or teams which work for their own benefits and cause

troubles to others. These try to find the password of the net users

having master card and then shop with those cards illegally.

If you are planning on using the Internet to sell your own products on-

line, there is no need to do all of the selling yourself. Just like the major

on-line retailers have created affiliate programs to increase their sales,

there is no reason that you cannot do the same with your products.

Since you only need to pay your affiliates when they generate sales,

there are some real advantages to pursuing this course.

Superior University, Lahore - 11 -

Research & Report Kamran 6118

To create and affiliate network you must first determine how much

money you can afford to give away on each sale. The more popular

affiliate programs have thousands of web sites that are members and

generate tremendous revenue. The more you are willing to pay your

affiliates for each transaction, the more web sites you will be able to

ultimately attract to your affiliate program.

The key to being able to compete for market share in any retail venture

you may operate on the Internet is the ability to complete the sale on

the spot. If you don't, someone else will. Almost all sales on the web

are completed using secure, on-line, credit card transactions. This is

the preferred method of payment for both buyers and sellers as the

process is entirely automated and can be completed in less than two

minutes.

There are a number of other, also important accessories that will help

a business web site function more smoothly, and these have been

organized on our E-Commerce Accessories page.

Superior University, Lahore - 12 -

Research & Report Kamran 6118

Research Design and Methods

n doing the research we have to go through the whole research design and lot of different methods for conducting the research. The whole research design is as follow:I

1. Purpose of Study: In purpose of study there are three types of

studies involved in it, which are:

a) Exploratory study

b) Descriptive study

c) Hypothesis testing

Descriptive study

The study used for this thesis is Descriptive Study because

some research is done before on E-Marketing and we just have to

do the critical analysis on that research. We have to study that what

work was being done on the past and what improvements are going

to come in nearby future.

2. Types of investigation:

There are two types of investigation, which are

normally used:

a) Causal relationship

b) Correlation

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Research & Report Kamran 6118

Correlation

The investigations, which were used in our research, are

correlation because we are doing a field survey. Correlation is done on

field survey and causal is done on lab experiment by actually seeing

something happening with your own eyes.

3. Extent of researcher interference with the

study:

The research interference is moderate because researcher

involvement in the natural environment of the workflow is very low.

Because researcher just have to collect and analysis the data and

come up with the findings. Although researcher interviews employees

and administers questionnaires at the work place. But if we compared

with the causal study then it is very low. Because in casual researchers

directly interferes in the events.

4. Study setting:

There are two types of studies, which are involved in research design,

which are:

Contrived

Non-contrived

Non-Contrived

The study, which used in our study, is non-

contrived. Because we doing the research in natural environment.

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Research & Report Kamran 6118

5. Unit of analysis:

The unit of analysis is banking industry/sector

6. Time Horizon:

The time horizon in my research is Longitudinal

because you have to keep on gathering data.

Superior University, Lahore - 15 -

Research & Report Kamran 6118

Data Collection Methods

The method, which I am using for my research are only two from

these:

a. Interviews

b. Questionnaires

c. Observation

Interview:

Communication between two or more persons used for purposes such

as diagnosis, education, counseling, or to obtain information. Interview is a

good source of collecting data from individuals but has a demerit that it takes a

lot of time interviewing individuals.

There are two types of interviews:

a. Structure interview

b. Un structured interview

Structure Interview

In structure interview there is a list of question, which is

structured before we conduct an interview. In my research, structure interview

is very important because when I have a list of question available then I cover

the most specific area of motivation.

Superior University, Lahore - 16 -

Research & Report Kamran 6118

Un-Structured Interview

Unstructured interview are those interview in which

question are not properly structured the question are derived from

respondent answers which he gives. In my research unstructured

interviews are also very important because through this I cover those

areas, which I cannot cover with structure interviews.

Questionnaires:

A questionnaire is a set of questions or items in written

form that is self-administered. Questionnaires should be used to obtain

that in figures and we evaluate very effectively. In my researching point

of view it’s also important to gather the information.

Observation:

In observation method we observe the employee and give

result. In my research point of view it’s also important to use this method by

observing the market conditions and sees what the latest technology on net

is.

Superior University, Lahore - 17 -

Research & Report Kamran 6118

SAMPLING DESIGN

Population: Population refers the

entire group of the people, events, or

things of interest that the researcher

whishes to investigate.

Sample: “A sample is subset of the population. It comprises some members selected from it”

OR

“Some but not all the elements of the population would form the sample”

Sampling:

Sampling is the process of selecting the sufficient number of the

elements from the population, so that a study of the sample and an

understanding of its properties or characteristics would make it possible for us

to generalize such properties or characteristics to the population elements.

Sample Size:

In my research sample size is of 15 from whom we are going

conducting research for this I completed questionnaire by the people

around me and specially the net users which are surfing on net and

doing business for there organizations.

Superior University, Lahore - 18 -

Research & Report Kamran 6118

Sampling Technique:

The random sampling is involved which allows us to collect data from anyone and choose randomly from sample size.

Type of Interview:

A. Structure InterviewB. Unstructured Interview

I. Structure Interview

Structure interviews are those in which you

asked from your required candidate prepaid questions. You design

these questions and asked from the people.

Reason:

The reason of the structure interview in my thesis is that that I

will just get information from a limited number of people (net users) of

the selected industry.

Superior University, Lahore - 19 -

Research & Report Kamran 6118

History of E-Marketing

Marketing first began in the early 1990s

as simple, text-based websites that

offered product information. Over time

Internet marketing evolved into more than just

selling information products, there are people now

selling advertising space, software programs,

business models, and many other products and

services.

E

When advertising is considered from its entire history it is not

surprising at all that it currently maintains such a significant factor in

our lives and society. The history of advertising can be traced all the

way back to the people of Babylonia and was present in several

societies from that time forward. Moving forward outdoor advertising

was implemented announce such things as properties for rent and

sites where food and drink was available in places such as Rome.

Advertising is any paid form of non-personal communication about an

organization, product service or idea by an identified sponsor.

Advertising was originally established in print media, such as

newspapers and magazines, and followed onto the television and radio

broadcast scene. However, focus has started to shift away from the

traditional print and broadcast media, and towards the growing E-

Marketing industry. Advertising has found a whole new medium with

which to communicate to customers. As the new millennium begins,

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Research & Report Kamran 6118

we are experiencing perhaps the most dynamic and revolutionary

changes of any era in the history of advertising. These changes have

been driven by advances in technology, and developments have led to

the dramatic growth of communication through interactive media,

particularly the internet. The E-Marketing industry is growing and

developing at a rapid rate.

Since 1994 when online advertising originated, the industry has faced

many obstacles. After the dot com crash in 2001, E-Marketing's

success diminished, but has since re-established itself and is now a

thriving $8.4 billion dollar industry. The use of E-Marketing as an

advertising medium is increasing in popularity at a fast pace. It is

projected that the E-Marketing industry will to grow three times faster

than advertising in any other medium.

Businesses are beginning to evaluate the advantages and

disadvantages of advertising online. Businesses are recognizing that

by advertising online, their message is communicated in a fast and

efficient way, while not only interacting with customers, but establishing

a one-to-one dialogue. E-Marketing's potential as a low cost channel

for doing business directly with customers is viewed as a major

advantage of advertising online. Many companies recognize the

advantages of communicating via the internet and are developing Web

strategies and hiring interactive agencies specifically to develop their

websites and make them part of their integrated marketing

communications program.

Superior University, Lahore - 21 -

Research & Report Kamran 6118

Creative and innovative advertisements can be displayed online. As an

advertising medium the internet provides great potential in captivating,

engaging and interacting with audiences. A variety of different

advertising formats can be used to communicate a particular message

to consumers. Each online advertisement format has its own

attractions and limitations. For example, when a user clicks on a

banner advertisement, that click can accurately track their campaigns

in terms of how many people actually read the advertisement and go

through the site. Banner Mania Advertising provides an in depth view

into a banner advertising network, which allow businesses to utilize

their banner advertising space while earning revenue. Advertisers

calculate the cost and success of their campaigns relative to the

number of visitors and of money-earning clicks.

In recent years the internet has become an essential element in

advertising strategies. Three major areas are expected to grow: paid

search, display advertisements and internet banners and classifieds

are all predicted to be the biggest growth areas in E-Marketing.

Concluding, advertising should be used in the marketing

communication mix to maximize its strengths, which should be

analyzed relatively to other marketing communication tools.

Superior University, Lahore - 22 -

Research & Report Kamran 6118

Merits and Demerits

Merits :

Some of the benefits associated with E-Marketing

include the availability of information. Consumers can log onto the

Internet and learn about products, as well as purchase them, at any

hour. Companies that use E-Marketing can also save money because

of a reduced need for a sales force. Overall, E-Marketing can help

expand from a local market to both national and international

marketplaces. And, in a way, it levels the playing field for big and small

players. Unlike traditional marketing media (like print, radio and TV),

entry into the realm of E-Marketing can be a lot less expensive.

Furthermore, since exposure, response and overall efficiency of digital

media is much easier to track than that of traditional "offline" media, E-

Marketing offers a greater sense of accountability for advertisers.

Compared to the other media marketing (like print, radio and TV), E-

Marketing is growing very fast. It's also gaining popularity among small

businesses and even consumers when trying to monetize their blog or

website. The measurability of the internet as a media makes it easier

to experience innovative e-marketing tactics that will prove a better

Cost of Acquisition than other media. However, in most developed

countries, the E-Marketing and advertising spending is around 5% only

while TV, radio and the print.

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Research & Report Kamran 6118

The first aspect of merits is the World Wide Web opens up new

communication possibilities for personalized messages to be delivered

to targeted individuals. By positioning an advertisement on a website

which relates to the target markets specific interests, interest and

further speculation should occur. Advertising online enables target

marketing, message tailoring, information access, sales potential,

creativity, exposure and speed.

Secondly, E-Marketing has the capability to reach a global audience at

a fast rate. This enables extensive exposure and is an important

characteristic of E-Marketing, and a major component of why E-

Marketing is so successful.

Thirdly, marketers undertaking new possibilities to perform traditional

marketing strategies in electronic environments push higher chances

to create synergy. Internet offers the best multimedia tools for

presenting information, through the World Wide Web, a hypermedia

environment. It is as further explained that it is a place where

marketers can present their information with pictures, animation, sound

and text. Indeed the power of Internet has impact on the multitude of

advertising formats. This can be seen from the numerous web tools

such as banners, rich media and interactive broadband commercials

as seen on the websites nowadays. These are the multiple forms of E-

Marketing tools used by advertisers over the time aiming towards

developing exciting, interactive, eye catching advertisements that can

draw consumers’ attention, at the same time increasing their brand or

sales online. Strauss and Frost (1999, 2002) states that the Net’s big

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Research & Report Kamran 6118

strength is direct response advertising where direct response

leverages the Internet’s unique opportunity for two way communication

with consumers. Placing advertising in this environment will grants

advertises unique opportunity for in the element of interactivity. When it

comes to measurability, online marketing certainly has an advantage

over traditional media, both real and perceived. Clicks are only the

most basic way online marketing programs can be measured.

The opportunities for creativity in E-Marketing are limitless. IAB (2005)

on the other hand had drafted out a very comprehensive set of 28

good reasons to use interactive advertising that places the overview of

interactive advertising merits. In the list, it provides 28 points on a

marketer’s potential uses of the internet and corresponds with 28 ways

of measure performance.

Advertising is more than just the means of disseminating product

information. It is a primary communications tool of our economic

system. Moreover, aside from its diverse role as a persuasive

communication tool, it is also part of the everyday culture of virtually

everyone. Actually advertising is a part of our social, cultural, and

business environment.

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Research & Report Kamran 6118

Demerits:

Even though there are many advantages for

companies who advertise online, there are also some demerits

involved. Demerits of advertising online include:

Measurement problems.

Audience characteristics.

Potential for deception.

Costs.

Limited production quality.

Poor reach and lack of Intrusiveness.

Superior University, Lahore - 26 -

Research & Report Kamran 6118

Growth and Development

n the early days, when static content was

used over the internet, any hyperlink from

one site to another could be considered as

an advertisement for the other site. Formally,

Internet advertising began in 1994, when the

first commercially available web browser, Netscape Navigator 1.0, was

released and the first ever banner advertisements were sold. Since

then, the E-Marketing industry has faced many obstacles in securing a

strong hold in today’s marketplace. As the Advertising Age reports:

Internet advertising is not only back, it's booming - and much of the

money is coming from traditional brand marketers. The boost in

advertising spending was led by a growing number of corporation’s

explosive growth of advertising impressions. Search engine

technologies created the highest level of buzz.

I

Online advertisers are continuing to demand more powerful advertising

models that better capture and sustain user attention, like the

emergence of real digital audio/visual approaching the standard-setting

slickness of television commercials. With online demographics

becoming more diverse and targeting becoming more precise,

advertiser spending on the Web clearly moved out of its experimental

stage during the past year.

NOTE:

U.S. E-Marketing spending is currently around $12 billion but expected

to go over $35 billion by 2006-2007.

Superior University, Lahore - 27 -

Research & Report Kamran 6118

A BUSINESS DIES EVERY 2 HOURS

It's nice when you can open a business and attract new customers the

next day. It's great when a web site guarantees your profitability. But

none of those things happen without good planning. Without a good

plan, and the proper execution, businesses die very quickly.

3-RULES TO ATTRACT NEW CUSTOMERS:

Let people know you exist:

Advertise yourself if people don't know

where you are and what you do, they can't buy from you. Advertising

greatly increases your chances of success.

Don't scare the customer:

Make the customer feel comfortable with

your product or service. Provide an environment that they will feel safe

in. Make them feel good about spending their money. Don't scare the

customer.

Look the part:

Businessmen wear suits. Policemen carry guns. You

should effectively display your ability to attract new customers. You

can do the same when you look the part.

Superior University, Lahore - 28 -

Research & Report Kamran 6118

Advertising Cost

Getting your message out costs money. You have

to spend money to make money. But if you plan to

advertise your business online, it also pays to know

your options before you spend money to make

money online. This is a basic fact of business. If

you don't spend any money, you won't be making any. Before you

spend money however, you have to know who your customer is. Then

you have to tell them what they want to hear. Once that happens you

will have attracted a new customer.

E-Marketing is the one tool that you can use to attract new customers

with a tight budget. Targeted e-mail campaigns, banner advertising

and newsletters can all be highly effective ways to attract new

customers. The key however is not in using them (because anyone

can do that), but in using them correctly.

Give people reasons to buy online:

Good advertising techniques are useless

without an effective message. An effective

message gives people reasons to spend their

money with your business. An effective

message attracts new customers.

Here's a little psychology tip for you. Have you ever wondered why you

see prices like $19.99 instead of $20? It's because $19.99 looks better.

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Research & Report Kamran 6118

Although it's only a 1-cent difference, you are giving people less

psychological resistance towards buying.

Here's another tip for you. Start with high prices, and then put things on

sale. People are more likely to buy something when they know they

are saving money. So instead of selling your product for $19.99, sell it

for $49.99 and mark it down to $19.99. You won't be able to keep them

in stock!

Advertising is like any management task; you need a plan to be

successful. Creating that plan is what we call marketing and clever

marketing will help you get the most from your advertising dollars? One

common mistake shop owners make is that they often advertise before

they create a marketing plan.

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Research & Report Kamran 6118

Strategies to Enhance E-Marketing

To help you start selling online, and to help you obtain the most from

your advertising dollar, we researched some of the more popular ways

to advertise by soliciting the advice of advertising experts. Here's what

we found out about the following advertising options.

A. Online Publications

You may think having a World Wide Web site

is a necessity for selling online, but that isn't true. Just

as some successful businesses are mail order-only

operations with no store for customers to shop in, you can attract

consumers on the Web without going to the expense of building and

maintaining a site.

One way to do this is to advertise your business in an online

publication, such as a newspaper or magazine, just as you would in a

paper publication. David Adams is the committee chair for the Internet

Advertising Bureau (IAB) Road Show and advertising director for

Christian Science Monitor Interactive. He suggests you find online

publications that your niche market reads and then advertise through

them. Not only are you advertising to your best potential customers,

you will probably pay half as much to advertise in an online publication

than you would in a search engine.

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Research & Report Kamran 6118

B. Directories & Search Engines

If you own a gas station, motel, or restaurant near an

interstate, you would probably advertise on a billboard along the highway

to alert motorists that your business is ahead and ready to take care of

their needs. In the same way, if you plan to advertise on the information

superhighway, an obvious place to do so is at high-traffic areas where

you'll have the largest possible audience. . Directories, search engines,

and browser home pages, such as Netscape Navigator's and Microsoft

Internet Explorer's, are where people go to "find out where to go" on the

Web

One of the more popular directories is Yahoo! (http://www.yahoo.com). It

offers a variety of advertising options for businesses ranging from mom-

and-pop shops to corporate giants.

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Research & Report Kamran 6118

C. Banners Ads

If you spend much time on the Web, you've probably seen hundreds of

banner ads. They come in different sizes, but generally are

rectangular- or button-shaped graphics with a few enticing words that

invite the Web user to "click here" for more information about a

company or product. So popular are these ubiquitous ads that Jupiter

Communications reports that they currently comprise 80% of online ad

placements.

In an intensive study about the effectiveness of banner ads, conducted

by MB-interactive, the IAB found that a single exposure to a banner ad

can generate increases in brand awareness, brand perception, sales

potential, and consumer loyalty. Amazingly, most of this increase

comes without a click-through to the advertiser's Web site. In fact, the

study found that banner exposure alone accounts for 96% of "brand

enhancement." You shouldn't consider buying a banner ad without

being aware of the click-through rate, which is the number of times

Web users actually click your banner to jump to your site. Though the

importance of the rate in generating sales of your products is

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Research & Report Kamran 6118

debatable, you may be able to negotiate your ad price based on the

click-through rate of your banner ad. The companies, which are small

in size or having little investment, need to go through click-process

because this will be more efficient for them and will help them in

developing strategies for future.

There are two schools of thought about click-through results. One is

that they aren't that important because the banner is creating or

reinforcing brand impression. Large, well-known companies such as

Ford Motor and Nike can "effectively use banner ads to create that

impression,” The banner simply reminds the consumer about that

brand. The company doesn't need the user to jump to its Web site to

place an order because he or she can buy that kind of car or that brand

of shoe virtually anywhere.

For the small business, however, click-through results are more

important because it probably can't rely on the banner itself to create

brand impression. "A small company needs a very clever banner to

create brand awareness, to help its product stand out from the rest,

and to make the Web user want to click on it,"

You can negotiate banner ad rates in a number of ways. One is

determining an ad rate based on the number of impressions, or a

page view, your ad receives in a given amount of time. Another

profitable option is to pay per click, instead of paying an upfront fee.

Other payment options include revenue sharing, or paying based on

what you sell as a result of the click-through, or a combination of cost-

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per-click and cost-per-acquisition. Nowadays companies are using the

second option click-through one because it is less risky but we know

that advertising itself is a risk which every businessman has to take to

promote his product or brand name in the market.

D. Web Sites

Regarding Web sites, a small-business owner must answer

two questions: should you have one, and if you do, should you hire

personnel to create and maintain it, or let an advertising agency or

service bureau do that?

As we already mentioned, it's not imperative that you have a Web site

if you advertise on the Internet. If they are interested in your product or

services, many consumers will be satisfied reaching you over the

phone. But if you choose to have a site, you must have the power to

handle questions and orders that will come to you online.

If you own a small business, it's more likely you'll turn to an ad agency

to help create your site. An advertising expert can help you decide

which parts of the site need to be updated, and how frequently, and

which can remain static. An agency also can write press releases,

news articles, and new product announcements that should appear on

your site.

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E. Other Options

Some businesses like to use micro sites to do special, one-

time promotions that they don't want to tie in to their main site. A micro

site is a Web page used for a specific, limited purpose, such as

announcing a special event or offer.

There are various ways available to host a micro site, whether it is

done by your business (or whoever is hosting your main Web site) or

by an advertising firm.

Just as they can conduct business in a mall made of bricks and mortar,

retailers on the Web can be part of online malls, a collection of

cyberspace stores or sites. One option is to join the Web site run by

your city's chamber of commerce or tourism office, or set up shop at a

place such as Shops.Net (http://shops.net), an interactive mall that

allows store owners to change items and text instantly.

Another option is simply to link your Web site to any number of national

online malls. If you don't have an online store, you can set up one

through a number of services, such as iCat Commerce Online

(http://www.icat.com).

If you want to take your business directly to your customers, try

advertising with push technology. Using push technology, programs

such as PointCast deliver information automatically to a Web user's

hard drive, where he or she can call it up at his or her convenience.

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Another minor option is interstitials, or advertisements that "pop up"

on a user's screen. Williams likens them to an Internet commercial.

They appear between Web pages so they are not as intrusive as, say,

a television commercial.

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Mass Communication Equals Better Marketing

After the introduction of Netscape, the public—for the first time ever--

could see the immense potential of the Internet as a source of mass

communication. Marketing experts especially, were very aware of the

‘advertisement power’ of the Internet and were anxious to test ‘the online

waters’. In October of 1994, the HotWired Website launched ads from

AT&T, Sprint, MCI, and Volvo, among others. Roy Schwedelson, during

a DMA conference in Toronto also urged direct marketers to get

involved with the Internet. These initial actions were the cornerstones of

the history of Internet Advertising.

E-Marketing Today

What is the most important change that has

occurred between then and now? Where has the

history of Internet advertising been and where is

it going? The answer is that Internet advertising

is no longer a cheap set of banners, ads, and

Spam material. Today, Internet advertising gives customers the power to

find exactly what they want, so that companies don’t have to spend large

amounts of money trying to convince every person that their company’s

product is the best. However, it a company’s responsibility to make sure

those online shoppers can gain simple access to their website. The

process of creating a direct avenue between qualified customers and

websites is referred to as Search Engine Optimization.

Why the Top Ten Results?

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Why the top ten results? Search engine statistics show that 88% of all

online consumers use search engines to find the products and services

that they need. This means that if your company’s website is not ‘search

engine friendly,’ then your company is losing money from potential

customers who are already searching for your product. Converting your

website to a ‘search engine friendly’ website requires that your website

have the characteristics that search engine robots are looking for. These

characteristics are in reality controlled by complex algorithms, but many

E-Marketing companies—especially companies such as 10x Marketing,

which implement services based on scientific studies and Internet

statistics have recognized the basic characteristics that search engines,

are looking for. These characteristics may include specific keyword/text

ratios, back links type of Web design, etc. One of the more popular

directories is Yahoo! (http://www.yahoo.com). It offers a variety of

advertising options for businesses ranging from mom-and-pop shops to

corporate giants. AltaVista, a popular search engine, has a partnership

with Double-Click (http://www.doubleclick.net), a top advertising

network on the Internet. It offers a wide range of advertising packages,

from small businesses to international corporations. When I visited the

site, Double-Click was offering first-time advertisers a one-month trial

program with two options. The first option paid for 100,000 banners

across the Double-Click network for $3,000. The second option, priced

at $4,500, paid for 100,000 banners to appear in a selection of

categories on the network.

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Search Engine Optimization (SEO)

Search Engine Optimization can be divided into two categories:

Natural Search Results and Pay-Per-Click Management.

The pay-per-click is growing with vast rate because companies are

developing innovative and creative search engines, which operate

easily and give accurate results. The pay-per-click results are shown in

such a way that only these are the engines, which will give 100%

accurate results.

Search engine optimization (SEO), considered by many to be a subset

of search engine marketing, is a term used to describe a process of

improving the volume of traffic to a web site from search engines,

usually in "natural" ("organic" or "algorithmic") search results. Those

efforts may also be seen in more narrow vertical search engines

involving areas such as local search. Many site owners and

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consultants engaging in SEO attempt to pursue qualified visitors to a

site, and the quality of visitor traffic can be measured by how often a

visitor using a specific keyword phrase leads to a desired conversion

action, such as making a purchase, viewing or downloading a certain

page, requesting further information, signing up for a newsletter, or

taking some other specific action.

In a broad sense, SEO is marketing by understanding how search

algorithms work and what human visitors might search for, to help

match those visitors with sites offering what they are interested in

finding. Creating web pages with SEO in mind does not necessarily

mean creating content more favorable to algorithms than human

visitors. Some SEO efforts may involve optimizing a site's coding,

presentation, and structure, without making very noticeable changes to

human visitors, such as incorporating a clear hierarchical structure to a

site, and avoiding or fixing problems that might keep search engine

indexing programs from fully spidering a site. Other, more noticeable

efforts, involve including unique content on pages that can be easily

indexed and extracted from those pages by search engines while also

appealing to human visitors.

The term SEO can also refer to "search engine optimizers," a term

adopted by an industry of consultants who carry out optimization

projects on behalf of clients, and by employees of site owners who

may perform SEO services in-house.

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Search engine optimizers often offer SEO as a stand-alone service or

as a part of a larger marketing campaign. Because effective SEO can

require making changes to the source code of a site, it is often very

helpful when incorporated into the initial development and design of a

site, leading to the use of the term "Search Engine Friendly" to

describe designs, menus, content management systems and shopping

carts that can be optimized easily and effectively.

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Users of Advertising on net in U.S:

The Future Looks Rich

“Rich media” is a term used to describe a variety of E-Marketing media

experiences, including high-quality animation, streaming audio and

video, and software-like features that can be embedded in relatively

small ad files, such as games, registration forms and detailed

marketing information. A user can explore all of those features in the

ad unit without ever leaving the content page on which the ad appears.

But by far the most popular is Macromedia’s versatile and widely

supported Flash software platform. According to Nielsen//Net Ratings

Ad Relevance, 97% of the advertising it classifies as “rich media” is

Flash-based. For brand-oriented advertisers, features such as video,

audio, animation and a framework for impressive marketing content

are effective for achieving brand objectives such as awareness and

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message association. For direct marketers, rich media ads can help

better pre-qualify leads by presenting information-rich ad content that

consumers can read before they click through to the advertiser’s site.

Rich media has risen steadily in popularity with advertisers over the

past five years, reaching a 35% share of all ad impressions by

December 2006, according to Nielsen//Net Ratings Ad Relevance.

Search for Marketing Perfection

Meanwhile, the drive for more accountability in marketing has helped

drive a tremendous boom in search advertising. In its present form,

search advertising is at once starkly simple, bafflingly complex and

highly effective. In principle, search advertising is elegantly

straightforward: advertisers bid on keywords to affect the rank

positions of their text ads on search results pages, aggregated data for

all 2005 ad impressions, and they pay only when a person clicks on

their ad. The complexity comes into play both in terms of the dynamic

auction environment of price for position, as well as in the seemingly

infinite motivations behind the query behaviors of search engine users.

The roots of the search advertising date back almost as far as search

engines themselves. The same year that Yahoo! Incorporated, 1995,

another early search engine, InfoSeek, introduced the concept of

targeting ads to keyword search queries, albeit against display banners

not text ads. Another milestone in this form of advertising came in 1996

when

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Procter & Gamble pioneered an important online pricing model,

convincing Yahoo! it would pay for ads only on a cost-per-click basis.

Other search engines mostly took the cue and resisted sponsored text

links until the business incubator Idea lab! Introduced GoTo.com in

1998, which revived the practice of clearly labeling text ads on search

engines too much greater success.

Textual Advertising

Textual advertising is a paid assortment of announcements which

appear on the first pages of results in search engines (Google, Yahoo,

Overture, etc.). They have recently become an important consideration

when marketing a company’s web site in NY. The times the

advertisement appears depends on the keywords and web design

chosen by the website marketer, in addition to appearing as “text”

rather than a graphic or banner. Therefore, such advertising is referred

to as "textual". It is a rather new kind of advertising on the Internet.

However, the market for textual advertising is constantly expanding,

and the sales volume generated through search engines increasing.

There are many advantages which have made textual advertising

attractive in advertisers’ opinion.

First advantage is connected to the principle of cost - in most cases

you pay not for the amount of times the ad is displayed, as in banner

advertising, but only when users "click" on your textual advertisements.

The second advantage is that even the basic advertising platforms

offer well developed systems for results reporting, the tools to choose

a target audience and to predetermine campaign expenditures. This

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allows advertisers to control the budget and target customers for each

keyword (such as “web design”), or geographic area (such as New

York, NY) of your advertising campaign.

Overall, many E-Marketing experts agree that textual advertising is the

wave of the future, and will soon either almost or entirely replace

banner, graphical, and other forms of untargeted, obtrusive and

annoying E-Marketing.

Offline Advertising

As E-Marketing has become more and more prevalent, and has taken

a larger proportion of an advertiser's budget, the phrase, and concept

of, offline advertising - i.e. any advertising not done online, has

begun to get some traction. The phrase is generally used in the context

of an advertising campaign that takes place on the web and through

other media that is a "cross-media" campaign.

Figure 8

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E-Marketing Builds Brands:

E-Marketing Builds Car Brands:

Ending History of Internet Advertising

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Modern E-Marketing consistently provides a cost-effective service,

which provides a greater ROI for your company. Although there is a

tough competition on Internet and the users are having difficulties but

the designers are keep on developing unique strategies to keep the

users on the net and increase there profits. People are getting more

and more towards the net, because they have less time for there

personal lives and more for there work. Therefore, by advertising on

the net we can give them such benefits that will facilitate them in future

also by increasing our profits.

The Internet will be keep on using by the users of net and the shopping

will never end because:

“In Business Time is Money”

“I have never failed in my life because from every failure I learned

something”

“I can’t teach people but I can let them think”

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References

(Source: Worldata, http://www.worldata.com/wdnet8/articles/the_history_of_Internet_Advertising.htm)(Source: Worldata.com)- A History of Internet Advertising

Davis, J. 2000. A Guide to Web Marketing: Successful Promotion on the Net. UK: Kogan Page Limited. ISBN 0749431857

Janal, D. S. 1995. Online Marketing Handbook. New York: Van Nostrand Reinhold. ISBN: 0442020589

Strauss, J. and F. Raymond. 1999. Marketing on the Internet: Principles of Online Marketing. New Jersey: Prentice Hall Inc.

Oser,K(2004),'Internet advertising reaches $2.3 bil high',Advertising Age,May 31 2004.

1. www.ciaadvertising.org2. www.doubleclick.net3. www.adage.com4. www.banner-mania.com5. www.searchenginewatch.com6. www.googlee.com7. www.scholar.google.com8. www.wikipedia.org

All Rights ReservedCopyrights © 2007

http://www.Kimtech.uni.cc

Student of Business Studies

Superior University Lahore

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Notes

THANK YOU ALL

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