Research Report on SMS Marketing

Research Report on SMS Marketing

Course Name: Marketing Research

Prepared For:
Dr. Md. Mahfuz Ashraf Faculty of Business & Economics Daffodil International University

Group Member: Palash Mahmud (L) Bilash Gosh Shams Md. Galib Golam Mostafa Md. Mazharul Islam

ID 122-14-803 122-14-802 122-14-831 122-14-551 122-14-810

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ACKNOWLEDGMENT
We are very thankful to Almighty Allah who has all the powers in the world and who also give us power to perform the assigned task, which otherwise we cant perform. We are also obliged to the favors and co-operations made by the respected teacher Dr. Md. Mahfuz Ashraf. He helped and guided us in an efficient manner and was always there for us during our period of research. Without their humble help it was not easy. We are very thankful to all our friends and teachers who provided us great guideline in this effort.

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Letter of transmittal
Date: August 10, 2012 Dr. Md. Mahfuz Ashraf Lecturer, Faculty of Business and Economics Daffodil International University

Subject: Submission of Research report on SMS Marketing Dear Sir, It is our pleasure to submit this Research report on SMS Marketing, which has been prepared as a partial requirement of the course Marketing Research We have tried level best to complete our assignment successfully and to produce a meaningful report within the all constrains. In spite of the various difficulties faced in preparing this assignment, we have tried to be as thorough as possible. The whole experience of this project enabled us to get an insight into the real life situation. We will be happy to successfully complete this assignment.

Sincerely, On behalf of group -----------------------Palash Mahmud ID: 122-14-803

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Table of Contents
ABSTRACT: ............................................................................................. vi Introduction to SMS marketing and related Strategies: ................................ vii HOW SMS MARKETING CAN WORK? ......................................................... viii History of SMS Marketing .......................................................................... ix How SMS text messaging marketing did begin?......................................... ix What can SMS marketing are used for?........................................................ x 1. Increase Customer Loyalty .................................................................. x 2. Encourage Repeat Sales ...................................................................... x 3. Encourage Feedback ........................................................................... x 4. Revenue-Raising Tool.......................................................................... x 5. Attract New Customers ....................................................................... x Advantages of SMS Marketing .................................................................... x SMS marketing is very cost-effective. ...................................................... xi Disadvantages of SMS Marketing ............................................................... xi Methodology........................................................................................... xii Research Problem .................................................................................. xiii Objectives of the Report ......................................................................... xiii Data Collection ...................................................................................... xiv Data Analysis ........................................................................................ xiv How satisfied you with this service? ....................................................... xiv How much response you get from customer through SMS marketing?......... xv Findings ................................................................................................ xvi Recommendation ................................................................................... xvi Conclusion ........................................................................................... xvii References ........................................................................................... xviii Questionnaire ....................................................................................... xviii

ABSTRACT:
Mobile Marketing, also known as wireless marketing, promises vast opportunities. Still in an experimental phase, businesses have little experience using this new marketing tool. Mobile services offer companies powerful marketing potential via direct communication with consumers, anytime and anywhere, but little research on this subject exists. This paper discusses Short Message Services (SMS), which belong to the first and most successful forms of mobile data transmission. Based on a literature review and exploratory qualitative research, this paper defines SMS marketing, describes organization satisfaction rate using SMS marketing, success factors for implementing SMS marketing, and proposes future research avenues.

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Introduction to SMS marketing and related Strategies:

SMS marketing is rapidly growing as one of the best tools of marketing across the world. It is one of the best ways to connect with the masses. In SMS marketing, a bulk messaging service is used. It is a service in which a single SMS can be sent to a number of recipients at the same time. It is cheap, simple and extremely cost effective. With the ongoing worldwide recession, competition is increasing and many big organizations are finding new ways to advertise their products and services in a cost effective way. SMS marketing is surely one of the best ways to promote and advertise products and services while creating a positive impact on the customers. Text messaging enables information to be sent to target audiences quickly and conveniently in much the same way as email, making it an increasing popular e-marketing tool for marketing executives. SMS marketing enables spontaneous, direct, interactive and above all targeted communication with prospective and existing customers. Using the bulk messaging service, organizations can keep their employees and customers informed about the latest promotions from time to time. If a company wants to advertise their upcoming products and offers, TV, radio or banner advertising would require a hefty amount of investment. However, in case of SMS advertisement the total cost is comparatively lower than other mediums.

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HOW SMS MARKETING CAN WORK?

SMS marketing is a flexible mobile marketing tactics which can be specifically crafted to facilitate. Wider idea function from presidential candidates information updates logo pizza delivery voting for your favorite American idol and even checking your credit card balance. SMS can do it all. SMS stand for short message service enter fix 160 characters restrictions which all messages working constrained SMS text message marketing uses a permission base process whereby consumer send a text message containing a word or phase after a key words to special phone number directly to their cell phone this number is usually a 5 or 6 digit number called short code and can be a regular 9 digit number hence called a long code. The consumer when instantly receive a return text message, its cell phone containing a specific relevant content and even a cot action related to initial key world request. For example consumer read a Bill board advertisement promoting a down town Jazz club upcoming orders in show schedule. The advertisements a second send one text the key word Jazz to 48510 and receive this upcoming week schedule and often receive a special invites The consumers send the text massage and instantly receive a return text containing this weekend club show time and order with the special half price cover charge incentive. Once the consumer has opt-in two receiving messages, marketer can freely send brands, product or services up date. The purpose of this is to delivering the right message at right place at right time to the sub ordinates.

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History of SMS Marketing

How SMS text messaging marketing did begin?
Let flash back in august 2000 when thousands of music lover attending version music V 2000 festival in south of England. Once inside the reana they eagle stand the cosset of web brusher at double page add and its standard catches they arise. The edge cot action ask them to take mobile phone and send a text massage contain words whats up to especial phone number soon after one lucky attending is punching and enjoy the just one 200 pounds in the just major SMS text message competition courtesy. Later that week Hizer bush is the now in famous words up TV add during series finally of Big Brother simultaneously during the advertisement break or previous version V 2000 mobile campaign participant receive a text message from world wiser by Monday morning thousands of mobile phone Up and down a beeping to signal to delivery one of the most advertisement hook of 21 century. Mobile marketing is quite suddenly born.

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What can SMS marketing are used for?

1. Increase Customer Loyalty
Through staying in contact with your customers through recipients' mobile phones brand reinforcement is one benefit along with increased customer loyalty.

2. Encourage Repeat Sales

Sending SMS messages to your customer database regarding any special offers of promotions that youre currently running can dramatically increase sales.

3. Encourage Feedback
Launched a new product, service or website? The chances are youd be interested in getting some feedback from customers. Using SMS marketing is an excellent way of doing this.

4. Revenue-Raising Tool
Running a poll or competition is an effective way of raising money from your customers.

5. Attract New Customers

Opt-in SMS lists do exist but you have to be careful of this. SMS marketing can be used effectively to attract new customers but remember that people do consider their mobile phones as being very personal items so your message may not always be welcome.

Advantages of SMS Marketing

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People take their phones everywhere and tend to read new messages instantly, meaning that SMS marketing can generate instant results and is ideal for time-sensitive promotions. Unlike emails people always read new messages, so you can guarantee that your message will be read. The fact that people always read new messages means that response rates for SMS marketing are renowned for being very high.

SMS marketing is very cost-effective.

This form of marketing is also extremely flexible - it can even be used as a money-making tool.

Disadvantages of SMS Marketing

Mobile phones are very personal items and some people dislike receiving marketing messages through them. Your message is limited to 160 characters, which isnt many words to explain your offer. SMS marketing has limited appeal to new businesses because of the problems associated with opt-in SMS lists.

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Methodology
Nature of the study: The study is an exploratory research. Source of information of the study: Both primary data and secondary data are used to conduct the study. Primary Data: The primary data of this report were collected from various organizations. Secondary Data: The secondary data of this report were collected from different newspaper, website. Sampling Size: This survey will be limited within 6 organizations. Sampling Technique: For selecting the sample, non-probability sampling technique has been used. Methods of Data Collection: Data were collected by using two methods that is observation and interview. Data Analysis: Collected data has been analyzed through descriptive statistical tools and MSEXCEL, MS-WORD, SPSS. After analysis, they were presented in tabular and graphical format. Purpose of the study: Exploratory Types of the Study: Correlation Units of Analysis: six Organizations Time horizon: cross-Sectional

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Research Problem
The research will be focused on to the following problem Consumers initial attitude towards mobile marketing and perceptions of mobile marketing: The SMS Popularity The new consumer attitude towards SMS Marketing The responses of SMS marketing. The comparability of SMS marketing rather traditional marketing Feedbacks of SMS marketing.

Objectives of the Report

The aim of this study is to Provide detail concept of SMS marketing. Find out the prospect of SMS marketing in Bangladesh. Find out the difference between Previous and present attitudes of consumers towards SMS marketing. Evaluate the promotion effect of SMS marketing Identify technique of SMS marketing for brand promotion.

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Data Collection
Sampling: Non- Probability Sampling Convenience Sampling Total sample size is 6 organizations Sampling technique are convenience The sample consists of organizations which are using SMS marketing. For the advertisement of their products and services etc. Total sample size is 06 organizations. The sampling technique used is convenience sampling because we select those organization which easily available for this purpose.

Data Analysis
How satisfied you with this service?

Frequency

Percentage

Cumulative (%)

Strongly Satisfied Somewhat Satisfied Neither Satisfied

2 4 0

33.3 66.6 0

33.3 100 100

Total

100

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How much response you get from customer through SMS marketing?
Frequency Percentage Cumulative (%)

20-30% 30-50% 50-70% 70% to above Total

3 1 2 0 6

50 16.6 33.3 0 100

50 66.6 100 100

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Findings
According to the service provider organization they are strongly satisfied with the performance of this marketing tool. Most of all organization response that SMS marketing is a less expensive tool as compare to other marketing tools. The sample of product base organization we take 6 number of sample size. Satisfaction rate of these organizations is somewhat. In which 75% organizations are somewhat satisfied from this marketing tool. Majority of these organizations offer discount on its products through this service and increase customer loyalty and get competitive advantage. Response rate of customers through this marketing tool is about 50 % to70 %. Maximum organization prefer outside source for using this service.

Recommendation
Awareness campaigns are to be arranged for customers Extensive advertisement is required Proper feedback is provided to the customer Try to generalize the idea of SMS marketing by describing its advantages.

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Conclusion
After conducting this research we conclude that 1. Though SMS marketing is new concept under develop countries due to exclusive communication channels it has ability to develop the realization of the customer and forced them to adopt it. 2. As much as organizations get success to aware the customer they can attract the customer conveniently. 3. Since organization is using only cellular channels for SMS marketing the idea is not open. 4. Organizations are not taking interest in proper advertisement which it requires for generalization. 5. Catch Customer on the move

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References
http://www.aera.mobi/ http://www.marketingminefield.co.uk/unusual-ideas/sms-marketing.html http://www.mobilinkworld.com/index.php? http://www.txtimpact.com/ http://www.mobilesmsmarketing.com/restaurant.php http://www.textsmsmarketing.com/sms-text-marketing-case-studies.php http://videos.webpronews.com/2009/05/14/mobile-marketing-why-not/ http://www.squidoo.com/SLInteractive http://www.emate-econtent.org/ecommerce/how-does-sms-text-marketing-work/

Questionnaire
1) Overall, how satisfied were you with this service. (a) Strongly satisfied (b) Somewhat Satisfied (C) Neither Satisfied

2) Which network service you like to use. (a) Banglalink (b) GP (C) Airtel (d) Robi

3) What kind of customers you target through SMS marketing. (a) Loyal (b) Discount Customers (C) Impulse (d) Need-Based Customers 4) If your organization uses SMS marketing, then what advantage you have on your competitor. (a) Profit max (b) Customer loyalty (C) Competitive Advantage (d) Differential Advantage

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5) Which tool you use for marketing purpose (other than SMS marketing) (a) Print media (b) electronic media (c) personal advertisement (d) cyber

6) What is your product impact on customer when you utilize SMS marketing? (a) Positive (b) Negative (c) Neither 7) Does SMS advertisement lead to a more favorable attitude toward the advertisement in comparison to other medium of advertisement? (a) Yes (b) No 8) Would you like to suggest any thing? -----------------------------------------------------------------------

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