A REPORT ON

RESEARCH PROPOSAL

For

E - MARKETING IN INDIA

Submitted to

INDUKAKA IPCOWALA INSTITUTE OF MANAGEMENT (I2IM)

CHAROTAR UNIVERSITY OF SCIENCE AND TECHNOLOGY (CHARUSAT)

CHANGA

Prepared by

ROBIN CHRISTIAN

ID No.: 11PGDM003

PGDM QUARTER-3

Under the Guidance of

DR.GOVIND DAVE

INDUKAKA IPCOWALA INSTITUTE OF MANAGEMENT (I2IM)

CHAROTAR UNIVERSITY OF SCIENCE AND TECHNOL (CHARUSAT)

AT. & PO. CHANGA – 388 421 TA: PETLAD DIST. ANAND, GUJARAT

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.1

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.

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.flipcart.com

http://www.homeshop18.com

http://www.naaptol.com

http://www.yebhi.com

http://www.futurebazaar.com

1 http://www.informiv.com/internet_marketing.html

Objective:

Strategies to develop E-Marketing

Problem statement:

Why people are not attracted towards E-Marketing.

E-Marketing Future.

Utilization of Resources.

Misuse.

Reasons:

Wastage of time in the peoples mind.

Wrong facts and Quality.

Late Delivery Time.

False Deductions.

Fewer features in the product.

Sometimes there is not proper feed back to the buyer and the amount has been deducted from his

account.

Fear of Hackers on the net.

LITERATURE REVIEW:

It illustrates the main objective of E-marking which is creating the exchanges that satisfy individual and organizational needs. Moreover it is the official definition for E-marketing adopted by the E-Marketing Association. Lots of young people like to buy the things on the Internet. Thus, it product a name called Internet Marketing that it also referred to as I-marketing, online-marketing or e-marketing is the marketing of products or services over the Internet.2

Firstly, traditional marketing is much more expensive than E-marketing. That is why most of young people like to buy the purchase on the Internet. With E- marketing, they can have direct communication with thousands upon thousands of customers and prospects world-wide from their desktop. It is very convenient people to select purchases. However, if they choose traditional way that will waste long time to go each shops. Sometimes, people want buy expensive purchases, it better to choose traditional market as they can touch and try the purchases. New media turn our life. E-marketing changes our habit and also brings a new way to sell the purchases. At the same time, it creates lots of jobs and decreases the rate of unemployed and promotes the development of small companies. Nowadays, more and more people use blog, video, digital picture to record their life. New media have become a very important in our life3.

A marketing campaign that is built on strategy and a deep knowledge of an audience, whilst firmly keeping the marketing objectives in mind, can be extremely powerful. An marketing campaign that effectively uses the internet as a platform, a jumping off' point to create value and relationships, and a means to speak specifically to marketers' targets and create two-way value, is one that can succeed beyond many marketers wildest expectations.4

VARIABLES

2http://www.researchandmarkets.com/research/8a8d54/how_to_harness_the3http://www.quirk.biz/resources/88/What-is-eMarketing-and-how-is-it-better-than-traditional-marketing4 http://www.businesswire.com/news/home/20110720005794/en/Research-Markets-Harness-Power-Social-Media-Pharmaceutical

Purpose Target audience Survey type and how respondents are recruited

Number of Responses Survey Frequency

Survey Purpose : - A survey should have clear objectives; there must be a reason why they want to do it. There could be more than one research objective in a survey, but they must be clearly stated, easily understood, and consistent. From the objective flows everything else: the type of survey needed, the target audience, and so on.

The Target Audience: - The objective should make it clear who they want to survey. They probably don't want to invest time and effort understanding everything about everybody who visits their site. Their primary interest will be about learning the right information about the visitor types that are of the most interest to them, such as customers and subscribers.

Survey Type: - Having determined the survey's objectives and audience, you can better choose the type of survey that will meet your needs. There are two main types of online surveys: pop-ups and site-based.A pop-up survey (as the name implies) pops up in a window on your site. Generally, it must be short and easy to answer. A site-based survey is potentially more extensive and people are directed to a separate part of the site or another site altogether. Here are some key differences between the two types:

Number of Responses : - Another key consideration is the number of completed responses you need. This can vary enormously with your type of work and the survey's target audience. For consumer analysis, you'd ideally need about 400 respondents to do any meaningful analysis.

Survey Frequency: - The final consideration is how often you will run the survey. Many surveys are run only once to get some insight into a particular issue, such as the effects of a new site design. But some surveys, such as a customer satisfaction monitor, run more than once or continually.5

Hypothesis

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

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

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

Search Engine marketing could give marketers access to large number of consumers.6

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

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

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

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

Potential for deception according to understanding of others representation must be designed according to their intellectual level.7

5 http://www.clickz.com/clickz/column/1693929/six-variables-online-surveys6 http://www.searchmarketing-uk.com/Hypothesis.php7http://repository.upenn.edu/cgi/viewcontent.cgi?article=1026&context=marketing_papers&sei-redir=1&referer=http%3A%2F%2Fwww.google.co.in%2Furl%3Fsa%3Dt%26rct%3Dj%26q%3DHypothesis%2BOf%2Bmarketing%26source%3Dweb%26cd%3D5%26ved%3D0CGoQFjAE%26url%3Dhttp%253A%252F%252Frepository.upenn.edu%252Fcgi%252Fviewcontent.cgi%253Farticle

The 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.8

Advertising on the Web is fundamentally different from advertising on other media. The ability to target and interact with their customers on the web brings an entirely new edge to marketing. It is an attractive and inexpensive advertising medium. Their 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. They can include photographs, maps, list, financial information and graphs, brand advertising, as well as other product information. Electronic Advertising can be updated regularly. Their customers can make contact with they directly and interactively.

In India 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 India it is now emerging towards Internet and is starting to think about the advertising and promotion on the net because the people living in India 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 India 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 they are planning on using the Internet to sell their own products on-line, there is no need to do all of the selling them self. Just like the major on-line retailers have created affiliate programs to increase their sales, there is no reason that they cannot do the same with their products. Since they only need to pay their affiliates when they generate sales, there are some real advantages to pursuing this course. To create and affiliate network they must first determine how much money they 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 they are willing to pay their affiliates for each transaction, the more web sites they will be able to ultimately attract to their affiliate program. The key to being able to compete for market share in any retail venture they may operate on the Internet is the ability to complete the sale on the spot. If they 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.9

History of e marketing

%253D1026%2526context%253Dmarketing_papers%26ei%3D7dHLT4OpAczNrQf2-NyqDg%26usg%3DAFQjCNEq4Wwelq45o6oUWrpXAUbIxxqHnA%26cad%3Drja#search=%22Hypothesis%20marketing%228 http://freebestads.com/advertising.php9 http://www.virtuallyignorant.com/monetize.htm

Internet Marketing today has become an integral part of people’s lives. When internet was first introduced not a single business house recognized the huge potential it had in store as a marketing tool. As early as 1993 it was just a tool used for emailing & data transfer. The best of the business units had declared it unfit for marketing purposes.Then in 1995 Netscape the ISP went public and bought the online world into prominence by exploring its commercial potential. The wide reach, cost effectiveness, capabilities to measure the spending and easy accessibility made internet as the most feasible marketing tool.The flood-gates opened after that:Spending on Internet advertising in 1996 totaled $301 million in the U.S. While significant compared to the zero dollars spent in 1994, the figure paled in comparison to the $175 billion spent on traditional advertising as a whole that year. Online advertising grew to an industry worth nearly $1 billion in 1997.In India, as reported by PWC, advertising industry recorded a growth of 22% over 2006 and thus contributed an estimated Rs. 196 billion in 2007 as compared with Rs. 161 billion in 2006. In the years 2004-2007, the advertising industry recorded a cumulative growth of 20% on an overall basis.Though different segments of the industry grew at different rates, the highest growth was recorded by the smallest segment in the industry- online advertising. This segment grew by 69% from the previous year, albeit from a low base of Rs. 1.6 billion in 2006 to Rs. 2.7 billion in 2007. Its share in the overall advertising pie grew to 1.4% in 2007, up from 1.0% in 2006. In the last four years 2004-2007, the segment recorded a cumulative growth of 65% on an overall basis.As broadband penetration increase in the Indian homes and also the mobile devices become more internets friendly, web/wap publishing companies would develop more content on the Internet.  This would make online advertising more relevant, more creative and more informative.10

Merits and Demerits

Merits :

Reduction in costs through automation and use of electronic media

Faster response to both marketers and the end user 11

Increased ability to measure and collect data

Opens the possibility to a market of one through personalization

Extremely low risk Increased interactivity Increased exposure of products and services Boundless universal accessibility12

Demerits: Security, privacy issues Poor reach and lack of Intrusiveness Measurement problems. Audience characteristics. Potential for deception. Costs. Limited production quality. Dependability on technology Maintenance costs due to a constantly evolving environment Higher transparency of pricing and increased price competition Worldwide competition through globalization.13

Growth and Development10 http://mangonetwork.wordpress.com/2009/02/15/history-of-internet-marketing/11http://v2.epivietnam.com/knowledge.php?cat=12&s=12ma12 http://www.studentwebstuff.com/mis/showthread.php?t=864813 http://www.wewanttraffic.com/ebusiness/emarketing/advantages.aspx

In 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. 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.14 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.

A BUSINESS LIMITATION It's nice when they can open a business and attract new customers the next day. It's great when a web site guarantees their 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 they exist:Advertise herself if people don't know where they are and what they do, they can't buy from they.

Advertising greatly increases their chances of success. Don't scare the customer:

Make the customer feel comfortable with their 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. They should effectively display their ability to attract new customers. They can do the same when they look the part.

Advertising Cost

Getting their message out costs money, they have to spend money to make money. But if they plan to advertise their business online, it also pays to know their options before they spend money to make money online. This is a basic fact of business. E-Marketing is the one tool that they 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, 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 their business. An effective message attracts new customers.

Strategies to Enhance E-Marketing

To help him start selling online, and to help him obtain the most from their advertising dollar, I 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.

Online Publications

14 http://www.angelfire.com/cantina/group1/week9/week9.html

One way to do this is to advertise their business in an online publication, such as a newspaper or magazine, just as they would in a paper publication.

Directories & Search Engines

If they own a gas station, motel, or restaurant near an interstate, they would probably advertise on a billboard along the highway to alert motorists that their business is ahead and ready to take care of their needs. In the same way, if they plan to advertise on the information superhighway, an obvious place to do so is at high-traffic areas where they'll have the largest possible audience.

Banners Ads

If they spend much time on the Web, they'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.

Web Sites

Regarding Web sites, a small-business owner must answer two questions: should they have one, and if they do, should they 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 they have a Web site if they advertise on the Internet. If they are interested in their product or services, many consumers will be satisfied reaching them over the phone. But if they choose to have a site, they must have the power to handle questions and orders that will come to online. If they own a small business, it's more likely they'll turn to an ad agency to help create their site. An advertising expert can help they 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 their site.

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 their business or by an advertising firm. Another option is simply to link their Web site to any number of national online malls. If they don't have an online store, they can set up one through a number of services. If they want to take their business directly to their 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. Another minor option is interstitials, or advertisements that "pop up" on a user's screen. They appear between Web pages so they are not as intrusive as, say, a television commercial.

Online advertising in Indian Scenario

Currently finance sector is most dominating sector in online advertising and accounted about 40% of total online advertising in India

The survey estimated that the value of Internet Advertising has been double to Rs 450 crore in2007, and will valued at Rs 2,250 crore by the end of 2010, and thus increasing 10 times from 2006. This means it will overtake spends on radio, cinema and outdoor advertising in two years. The report adds that of the Rs 210 crore was spent on Internet Advertising in 2006, display advertising contributed Rs 117.6 crore, classified was Rs 50.4 crore and search was Rs 42 crore. It estimates classified advertising to be the key driver of growth with a Rs 900 crore contribution (out of the total Rs 2,250 crore) by 2009, followed by search’s Rs 742.5 crore, and display advertising bringing in Rs 607.5 crore.

This is by far the most optimistic estimate of online advertising in India made by any research agency. The IAMAI estimated in 2006 that Internet Advertising would grow at 40 per cent and reach a value of Rs 750 crore by 2010. The FICCI-PWC reported in March 2007 that puts the figure at Rs 950 crore. Internet penetration in India is estimated to have grown at an average of 60 per cent between 2000 and 2006.

Yet, it is difficult to believe that online advertisers, a reluctant lot, will change their mind enough in two years to multiply their spend by 10.15

QUESTIONNAIRE

This is a questionnaire as a part of an effort to gauge the E-Marketing in India. Your sincere and honest cooperation is expected.

Name: __________________________________

Age: ___________________________________

Sex: ___________________________________

Qualification: ___________________________

Occupation: _____________________________

Address: _______________________________

_______________________________________

Email: ________________________________

1. How would you like to make a purchase, please give the ranking from 1(most favorable) to 5(least favorable)

a) Directly from the shop

b) Through mail-order

c) Through net

d) Through phone

e) Any other (specify)______________

2. For how many hours on an average do you surf net in a week? _______

3. With the falling Internet prices from RS. 40 an hour to RS. 5 an hour how many hours will you surf net in a week. ______

4. For what purposes do you surf net:

a) E-mail/chat

b) Entertainment

15http://e-marketingindia.blogspot.in/

c) Getting information

d) Downloading

e) Buying things

f) Any other (specify)

5. Have you ever used Internet for purchasing? Yes No

If No

6. Are you planning to make purchase on net in future.? Yes No

7. What kind of products would you like to buy on net? Please mention.

a) _________________

b) _________________

c) _________________

d) _________________

e) _________________

8. How often do you click on advertisement on sites?

a) 0 to 10% of the time.

b) 10 to 25% of the time.

c) 25 to 50% of the time.

d) 50 to 75% of the time.

e) 75 to 100% of the time.

9. Do you feel ads on net give more insights of product/service than other media? Yes No

10. Do you receive mail from business sites? Yes No

11. How often do you respond to it? Please mention the percentage. ______

12. Please mention what factors motivate you or stop you from making purchase on net.

a) Motivate you:

i. Convenience

ii. Secrecy

iii. Wide range of choices

iv. Saving of time

v. Any other (specify) _________________________

b) Stop you:

i. Security

ii. Late delivery

iii. Wrong delivery

iv. Lack of actually feeling the product

v. Any other (specify) _________________________

Thanks for sharing your valuable time for filling of our questionnaire.

References

(Source: Worldata, http://www.worldata.com/wdnet8/articles/the_history_of_Internet_Advertising.htm)1. www.ciaadvertising.org2. www.doubleclick.net3. www.adage.com4. www.banner-mania.com5. www.searchenginewatch.com6. www.googlee.com7. www.scholar.google.com