MOBILE MARKETING:

IMPLICATIONS FOR
MARKETING STRATEGIES
Phumisak Smutkupt, Donyaprueth Krairit, Vatcharaporn Esichaikul

Abstract:
Over the past few years mobile marketing has opened up new opportunities for firms to communicate and engage
with their target audience in a more effective way. However, the potential of this tool has not been fully exploited.
A lack of experience in mobile marketing among marketers and the current status of this phenomenon are believed
to attribute to this shortcoming. This study aims to provide an assessment of the potential impact of mobile devices
on marketing practices in general, using the familiar framework of the four Ps (product, price, promotion, place)
and the four Cs (consumer, cost, communication, and convenience). The findings indicate that mobile marketing
has a tremendous impact across all elements of the marketing mix. Its major advantage lies in its unique ability to
provide information in a personalized and interactive way, without restriction of time and place. The effective use
of mobile marketing depends on the ability of firms to make use of this feature.

Keywords: mobile marketing, mobile advertising, mobile commerce, the marketing mix

Introduction
Due to recent advancements in mobile
technology, along with the rapid proliferation and
inherent characteristics of mobile devices, the
mobile channel has emerged as a new, potential tool
for marketing activities (Bauer, Barnes, Reichardt, &
Neumann 2005; Varnali & Toker, 2010). Much of the
existing literature has been written about mobile
channels in this regard. Watson, Pitt, Berthon and
Zinkhan (2002) state that technical benefits of the
mobile medium present a new marketing
environment in which firms should take part if they
want to survive and flourish. Similarly, Shankar,
Venkatesh, Hofacker and Naik, (2010) assert that
mobile marketing has the potential to change the
paradigm of retailing from one based on consumers
approaching retailers to the other way around.
Barnes and Scornavacca (2004) argue that in the
near future the mobile device will become a
mainstream channel for advertising, just like TV or
newspapers. Friedrich, Grone, Holblin and Peterson
(2009) even claim that the mobile phone is the best
tool ever made for customer relationship
management (CRM). Furthermore, Wei, Xiaoming
and Pan, (2010) equate the popularity of SMS as a
mobile service application to that of e-mail on the
Internet.
Despite all of the opportunities made available
by mobile media, the potential of mobile marketing
has not been fully exploited. This is due, in large
part, to a lack of experience in mobile marketing
among marketers (Friedrich et al., 2009) and the fact
that the phenomenon is still in its infancy (Ong,
2010; Leppäniemi & Karjaluoto, 2005). As such,
there are few success stories to emulate. While prior
studies have attempted to fill this gap by proposing
an analytical framework in which to evaluate
marketing implications of the mobile medium (e.g.,
Mort & Drennan, 2002; Balasubramanian, Peterson,
& Jarvenpaa, 2002; Friedrich et al., 2009; Anckar &
D’Incau, 2002), these models have all been context-
specific and were developed purposively to reflect

Mobile Marketing Association 126 IJMM Winter 2010 Vol. 5. No. 2

the authors’ notions, further restricted to certain
domains. These studies were also developed based
on a single point of view; either that of advertisers or
of customers. As a result, the insights are
fragmented, inconclusive, and have a low level of
applicability.
For example, to identify changes in consumer
behaviour from electronic marketing to mobile
marketing, Mort and Drennan (2002) developed a
framework incorporating only three factors:
connection, consumer behaviour and environment.
Anckar and D’Incau (2002) suggest that the best way
to see the true value of mobile devices is to see it in
the context of user situations. The authors,
therefore, present five different possible settings in
which mobile services can offer value to customers:
time-critical needs, spontaneous needs,
entertainment needs, efficiency needs, and mobility-
related needs. Friedrich et al. (2009) argue that the
advantage of the mobile media is in the area of CRM,
and therefore should be assessed according to the
following five factors: customer access, customer
insight, customer dialogue, customer emotions, and
customer transactions.
Against this backdrop, this article aims to
provide a comprehensive assessment of the
potential impact of mobile devices on marketing
practices in general, using the familiar framework of
the four Ps and the four Cs. This research attempts
to answer the question of how mobile technology
impacts each marketing element.
The results of this research provide
contributions to both theory and practice.
Theoretically, this article extends the literature of
mobile marketing by focusing on its implications
from both advertiser and customer points of view.
This study also allows for a clear and enhanced
understanding of mobile marketing as a whole,
previously scattered and fragmented. On a practical
level, the results of this study advance the
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understanding of how to effectively incorporate the
use of mobile technology into existing marketing
strategies in order to improve a company’s
competitive advantage. This information enables
marketers to select the right mobile marketing tool
for their business strategy. It might also encourage
existing advertisers to invest in more advanced
applications, as well as encouraging new players to
enter into the technology.
The remainder of this article is structured as
follows: The first section provides the background of
mobile marketing and the marketing mix, followed
by an evaluation of mobile marketing contributions
in detail. This paper concludes with implications of
the findings and suggestions for future research.
MOBILE MARKETING
Definition
Although a large amount of literature exists on
mobile marketing, a common agreement on its
definition is still lacking (Varnali & Toker, 2010;
Leppäniemi, Sinisalo, & Karjaluoto, 2006). The
Mobile Marketing Association (MMA, 2008) defines
mobile marketing as, “A set of practices that enables
organisations to communicate and engage with their
audience in an interactive and relevant manner
through any mobile device or network.” Some
scholars, however, interpret its role more
specifically. For example, Scharl, Dickinger and
Murphy (2005, p. 165) refer to mobile marketing as,
“Using a wireless medium to provide consumers
with time- and location-sensitive, personalised
information that promotes goods, services and
ideas, thereby benefiting all stakeholders.”
Moreover, four different terms, namely mobile
marketing, mobile advertising, wireless marketing,
and wireless advertising, are interchangeably used to
define the concept of marketing through mobile
media.
This study, however, adopts the definition
proposed by Leppäniemi et al. (2006, p. 38) who
127 IJMM Winter 2010 Vol. 5. No. 2
reviewed and analyzed existing definitions of mobile
marketing before developing the following: “The use
of the mobile medium as a means of marketing
communications.” This definition was chosen
because it reflects major characteristics inherent in
both marketing and mobile commerce. It involves
communication, which is an important part of any
marketing strategy, and mobility, which allows
communication to be conducted without the
restriction of being at a fixed location at a certain
point of time (Leppäniemi et al., 2006).
Unique Characteristics of Mobile Marketing
Before examining to what extent mobile devices
can change marketing practices, it is necessary to
understand the underlying features of the devices
that fuel such change, and offer unprecedented
opportunities for business. It should be noted that at
this point, these features do not yet contribute any
value as such; not until they are discussed in the
context of marketing strategy. Those key features
are:
Ubiquity
Ubiquity is a primary advantage of the mobile
medium. It refers to the ability of users to receive
information and perform transactions wherever they
are and whenever they want (Clarke, 2001). Such
ability can be realised due to the fact that a mobile
device is portable and is switched on most of the
time. Today, people do not leave home without their
mobile phones, and usually do not leave them
unattended.
Personalisation
The mobile phone is highly personal, rarely used
by anyone except its owner (Bauer et al., 2005). It is
also equipped with a SIM (subscriber identification
module) card that can store personal information
and identity (Junglas & Watson, 2003). For
teenagers, a mobile phone is used as a means of
self-expression, as its features (e.g., ringtone,
display), are personalised to reflect the preferences
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of its user (Walsh & White, 2007). For adults, the
mobile medium becomes more personal when it
contains important information, such as contacts
and messages (Bauer et al., 2005).
Two-way communication
Two-way communication is another feature that
substantiates the potential of mobile devices in
marketing. Mobile devices allow for greater two-way
communication than any other tool because of their
“always on” connectivity and short set up times
(e.g., for booting) (Schierholz, Kolbe, & Brenner,
2007).
Localisation
Localisation refers to the ability to identify the
geographical position of a mobile user by locating
the mobile device (Clarke, 2001). This feature is
made possible through various location-based
technologies, lead by GPS (global positioning
system). With this technology, marketers are able to
target location-specific products or services to
potential customers. It is predicted that in the near
future, location-based marketing will create many
more business opportunities through innovative
applications like Bluetooth and RFID (radio
frequency identification) (Bruner & Kumar, 2007).
Industry background
The current mobile environment offers multiple
channels to reach customers, ranging from simple
messaging services such as SMS (short messaging
service), and MMS (multimedia messaging service),
to the mobile Internet. Some examples of
technologies that enable these applications are
WAP, GPRS, EDGE, and 3G networks.
SMS has been the most popular mobile
application (Salo, Sinisalo, & Karjaluoto, 2008;
Carroll, Barnes, Scornavacca, & Fletcher, 2007). In
2009, an average of 4.1 billion messages were sent
in the United States every day (CTIA, 2009). The high
volume of SMS usage suggests the potential of SMS
as a marketing vehicle. Barwise and Strong (2002)
128 IJMM Winter 2010 Vol. 5. No. 2
and Rettie, Grandcolas and Deakins, (2005)
empirically find that SMS advertising is highly
effective for generating brand awareness and
consumer response. SMS is mostly used in the form
of reminders, updates and confirmations, as it is
designed for quick messages rather than for
complete marketing communications. The
phenomenal success of SMS is attributed to its key
features, such as ease of use, low cost, message
forwarding ability, and unobtrusive nature (Doyle,
2001).
The Marketing Mix
The marketing mix is a combination of tactical
marketing tools that a firm uses to satisfy the target
market (Kotler & Armstrong, 2006). The tools vary,
but can be grouped into four categories widely
referred to as the four Ps: product, price, place, and
promotion. The four Ps have also been extended to
the seven Ps by further including three elements:
people, process, and physical evidence, although
some argue that these are already included in the
four Ps (Smith & Chaffey, 2005).
Because it was developed in the 1960s where a
push approach dominated marketing strategy, the
four Ps concept is criticised for its product-oriented
approach and does not recognise customer needs,
which is the essence of today’s market (Chaffey,
Ellis-Chadwick, Mayer & Johnston, 2006).
Consequently, the four Cs marketing mix model,
which redefines the four Ps from the customer
viewpoint, was introduced by Lauterborn (1990). The
four Cs are comprised of customer needs and wants,
cost to customer, convenience, and communication.
Lauterborn (1990) further explained these elements.
First, firms should sell only products that customers
actually want, as opposed to just anything they
happen to produce. Second, consumers are more
concerned with total costs of ownership of a
product, not only price. Third, firms should provide
consumers with the most convenient way possible
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for purchasing. Finally, firms should always provide
for and facilitate communication from customers.
Many have found that the four Ps is a useful
framework for assessing the impact of the Internet
on marketing strategies (Allen & Fjermestad, 2001;
Harridge-March, 2004; Chaffey et al., 2006; Smith &
Chaffey, 2005). Moreover, the concept of four Cs,
built on a customer-centric approach, lends itself
well to new media that support two-way
communication (Chaffey et al., 2006). Based on
these facts, it is reasonable to apply the four Ps and
the four Cs to mobile marketing strategies as the
mobile device is considered one of the Internet-
enabled new media.
MOBILE MARKETING IMPLICATIONS
Product
Enhancements to the mobile handset and
wireless networks allow new services to be created.
Among them, location-based services is seen as the
‘killer application’ of mobile commerce (Yunos, Gao,
& Shin, 2003) and is thus worth mentioning.
Marketers can make the best use of this service by
offering customers products or services that are
relevant to their current location, which could result
in more traffic to local stores with an immediate
purchase (Bauer et al., 2005; Kannan, Chang, &
Whinston, 2001). Location-based services have
already been used in a variety of marketing
applications. For example, Foursquare allows mobile
users to share their current location and opinions
with social network friends. And the Fonecta
directory service of Finland helps customers find the
nearest restaurants, shops, and banks (Pura, 2005).
The mobile phone has also proved to be an
efficient channel for new product development. An
interesting case was discussed by Okazaki (2009). In
the development of a new flavour of Soup Pasta,
Knorr Foods, a subsidiary of Japanese food
manufacturer Ajinomoto, used a mobile blog to
attract participation from young female consumers,
129 IJMM Winter 2010 Vol. 5. No. 2
the target group, as well as the majority of mobile
Internet users. On the blog, mobile users were
allowed to enter their opinions and suggestions
regarding new flavour preferences. As a result, a
new flavour of soup pasta was launched, reflecting
the suggestions that were submitted as a result of
the campaign, that helped improve sales of Knorr
Soup Pasta by 50 percent compared to the previous
year. By using a mobile blog, Knorr Foods was able to
generate and collect customer opinions, which
provided valuable input for new product
development, with minimal time and cost.
The implications of mobile channels are evident
not only for core products, but also for augmented
products. The mobile device is widely known for its
effect in streamlining business processes,
particularly ones related to fieldwork. A number of
studies have demonstrated these benefits. For
example, in a study of the value of mobile
applications in a public utility company, Nah, Siau
and Sheng (2005) reported that mobile applications
can improve efficiency by increasing accuracy and
saving time for its field workers in retrieving,
updating and communicating information while on
the road. Similarly, Varshney and Vetter (2002)
reported that with the proper use of mobile devices,
insurance companies can replace their traditional
claim payment process, which is usually time-
consuming and not very efficient, with quick on-the-
spot claim adjustment and payment.
Branding as a Part of Product
The potential impact of mobile channels on
branding has been widely recognised among
researchers and practitioners alike. Okazaki and
Taylor (2008) conducted a survey of 53 senior
executives of multinational corporations (MNC) to
examine factors affecting MNC decisions to adopt
SMS-based mobile advertising. The findings suggest
that a perceived brand building performance is the
strongest positive driver of intention in the use of
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mobile advertising. Based on the content analysis of
30 mobile marketing campaigns in Europe, Pousttchi
and Wiedemann (2006) concluded that mobile
marketing was mainly used for building brand
awareness, changing brand image, and enhancing
brand loyalty.
The effectiveness of mobile channels in
branding is commonly discussed in the areas of
brand awareness and brand associations. Through
the use of SMS marketing, marketers are able to
effectively establish brand recognition and recall
with push advertising. Sending ad text messages
assures high consumer exposure to the brand
because messages are likely to reach the target
almost every time. After reaching customers, the
messages are kept in the mobile phone’s storage
and can be read at customers’ convenience. Unlike
e-mail, SMS does not have a subject line. Thus, the
message is guaranteed to be opened before being
deleted (Rettie et al., 2005). SMS also supports viral
marketing (Doyle, 2000), which is beneficial to the
brand not only in terms of increased brand
awareness but also peer influence (Scharl et al.,
2005).
One of the primary functions of any marketing
activity is to establish strong, favourable and unique
brand associations in the customer’s mind (Keller,
1993). With several value-added features, mobile
marketing is an ideal means to this end. The ability
to provide time-sensitive alerts to customers (e.g.,
credit card payment due dates), enables the brand
to protect customers from a potential loss, or other
unnecessary problems caused by a lack of valuable
information. In this example, the ability to complete
tasks as scheduled and have one’s life run as
smoothly as possible, results in increased
satisfaction with the brand, which in turn leads to a
strong and favourable brand association (Nysveen,
Pedersen, Thorbjornsen, & Berthon, 2005).
Moreover, brands that employ mobile marketing
130 IJMM Winter 2010 Vol. 5. No. 2
campaigns are usually perceived as innovative and
high-tech (Ferris, 2007), leading to customer
perception of unique brand association.
Pricing
Compared to the pricing strategy of traditional
media, mobile retail prices (i.e., the prices that are
communicated by firms to customers’ mobile
phones), can yield higher profits, according to
Balasubramanian et al. (2002). The authors indicate
that through mobile devices, a consumer can be
offered a unique price without knowing what price
another has received. This allows retailers to
perform first-degree price discrimination, which
refers to each buyer being charged a customised
price. This pricing strategy is rarely if ever achieved
in the general marketing environment, where prices
are public knowledge and every customer is charged
according to menu-based pricing. As such, in the
mobile world, retail pricing and competition tend to
be highly complex due to the dynamic pricing model.
It should be noted, however, that to effectively
perform such a pricing strategy, firms require
extensive knowledge of customers and advanced
applications, allowing mobile prices to be
incorporated into retail pricing strategies.
A further benefit of mobile media, with regard
to pricing, is that through the use of the mobile
Internet consumers are able to make price
comparisons between Internet retailers and brick-
and-mortar stores while shopping at physical
locations. Such ability could increase customer
bargaining power over brick-and-mortar stores by
diminishing the information asymmetry between
buyer and seller, thereby reducing price differences
between these two types of retailers (Kannan et al.,
2001).
Placement (Distribution Channels)
Mobile technologies help firms increase
efficiency of product distribution. Some mobile
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applications can be used to track current locations of
rolling inventory, or multiple trucks carrying a large
amount of inventory while on the move. This allows
a store to request just-in-time delivery by locating
the nearest truck when the need for certain items
arise, thus reducing the total amount of inventory
space and costs (Varshney & Vetter, 2002).
The advent of 3G technology and smartphones,
capable of handling richer information, has
undoubtedly triggered developments of new mobile
contents in various formats, particularly in high-
resolution video (Senn, 2000). It is predicted that
future mobile content will be dominated by
entertainment (e.g., video-on-demand), distance
education, and news services (Senn, 2000; Varshney
& Vetter, 2002).
Promotion
The development of technology has not only
enhanced the communication ability of existing
promotional tools (e.g., advertising, sales promotion
and direct marketing), but has also provided new
channels for which these tools can be used
(Harridge-March, 2004). These emerging channels,
such as the Internet, digital TV and mobile phones,
have altered the way firms communicate and engage
with customers. Instead of focusing on the
traditional campaign of simple mass communication,
marketers are now heading toward more directed
and highly targeted activities (Karjaluoto,
Leppäniemi, & Salo, 2004).
Major impacts of mobile devices on the
marketing communication mix appear in three areas:
advertising, sales promotion, and direct marketing
(Leppäniemi & Karjaluoto, 2008). Mobile advertising
offers marketers the potential to promote products
and services in a personalised and interactive way.
Advertising content can be personalised based on a
combination of parameters, such as demographic
profile, customer purchasing behaviour, situation,
and location (Clarke, 2001; Varshney & Vetter, 2002;
131 IJMM Winter 2010 Vol. 5. No. 2
Kim & Jun, 2008). Mobile advertising can also be
used to drive consumers to mobile commerce-
enabled sites, which will further enhance a positive
connection with preferred brands.
As sales promotions are commonly used to
encourage the purchase of a product or service,
mobile sales promotions can help firms realise this
objective more effectively. Customers might find
text-to-win campaigns more attractive than
traditional approaches as they can participate
instantly, without involving the postal service. Time-
specific mobile coupons can be sent to potential
customers when it is most effective for the
promotion of a product. Food coupons, for example,
can be sent out at lunch time, and movie rental
coupons on weekend evenings (Banerjee & Yancey,
2010). Mobile coupons usually provide high net
returns because they require only modest costs to
implement (Shankar et al., 2010).
In general, the ultimate goal of direct marketing
is customer response. And mobile media has the
potential to engender such more efficiently than any
other media. Because a mobile phone is always
carried by its user, the channel provides marketers
with almost permanent opportunities to directly
reach potential customers. The fact that changing
one’s mobile phone number is troublesome helps
validate the previous claim (Scharl et al., 2005).
Moreover, mobile direct marketing possesses quick-
response capability that enables firms to quickly
respond to unforeseen situations with new
promotions or offers (Schierholz et al., 2007; Barwise
& Strong, 2002).
While many marketers recognise the benefits of
mobile direct marketing, this method is often
criticised for generating unwanted messages or
spam, irritating customers, and raising privacy
concerns. Spam is seen as the strongest negative
influence on consumer acceptance of mobile
marketing (Scharl et al., 2005). To deal with this
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issue, it is recommended that mobile direct
marketing and other marketing communication
activities via the mobile media be operated only with
appropriate permission. This allows firms to contact
only those customers who give consent, and avoids
irritating the others. Permission should be explicitly
obtained, and customers should be given an
opportunity to stop receiving messages at any time
(Tezinde, Smith, & Murphy, 2002). Nonetheless,
permission marketing requires a sophisticated
management strategy, along with efforts to
consistently acquire broader permission (Kavassalis,
Spyropoulou, Drossos, Mitrokostas, Gikas, &
Hatzistamatiou, 2003).
Despite having multiple channels with which to
reach consumers (e.g., mobile messaging services,
mobile Internet, mobile video clips), campaigns
utilising only the mobile-related channels may not
provide the most effective results (Karjaluoto et al.,
2004). It is recommended that the mobile channel
be integrated into multi-channel marketing
campaigns, and used to complement such traditional
media as TV, print, or radio, in order to enhance
brand awareness (Kavassalis et al., 2003; Ferris,
2007; Mort & Drennan, 2002).
Customers
Offering products or services that meet
customer needs and wants is an important part of
marketing (Bovee, Houston, & Thill, 1995; Kotler &
Armstrong, 2006). To achieve this, marketers need a
good database. The interactive capability of mobile
marketing campaigns allows marketers to build up-
to-date customer databases by inviting customers to
sign up for a campaign, or text back information in
exchange for extra benefits. The value of the
captured information is then analyzed and used as
the main factor in determining which products or
services should be offered, and to whom. The
desired result is in personalised offers being sent to
132 IJMM Winter 2010 Vol. 5. No. 2
individual customers, in response to specific
customer needs and wants.
Customised offerings lead to positive consumer
attitudes toward that which is advertised (Xu, 2007),
an increase in campaign response rates (Barutcu,
2007), and stronger relationships between firms and
their customers (Vesanen, 2007).
The mobile phone can also be seen as an ideal
medium for customer service. Several customer-
related activities, such as online order tracking,
response to customer queries, and after-sale service
are now offered through the mobile, suggesting
another way to satisfy customer needs by enhancing
the convenience of shopping (Shankar et al., 2010).
Another major influence of mobile devices on
the customer could be related to CRM. Kannan et al.
(2001) suggested four attributes that make the
mobile medium a perfect channel for CRM: ability to
offer personalised content, ability to track
consumers across media, ability to provide service
when customers need it, and ability to offer content
with highly engaging characteristics. Similarly,
Sinisalo, Salo, Karjaluoto and Leppäniemi (2007)
asserted that the key characteristics of the mobile
medium for CRM are flexibility, interactivity and
personalisation. Mobile CRM services are already in
place in some countries, such as Italy, where most
services are used in after-sales services to maximise
customer satisfaction (Valsecchi, Renga, & Rangone,
2007).
Cost and Convenience
As previously mentioned, price is no longer the
only concern for customers when making a
purchase; the total costs of acquiring, using, and
disposing a product are more important (Kotler &
Armstrong, 2006). These costs can take into account
many factors, such as time, activity, energy and/or
opportunity. The mobile phone has the advantage of
being able to reduce such costs by providing more
convenience to customers. Hence, the contribution
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of a mobile device to cost and convenience will be
discussed together.
Convenience is a key advantage for customers
who use their mobile device to complete a broad
range of activities in a more comfortable way,
thereby reducing costs and/or time. Consumers with
time pressures may opt to browse for products on a
mobile phone to reduce searching costs (Kannan et
al., 2002). Through the use of certain mobile
marketing services, consumers can now access
detailed information about products or services at
the point-of-sale, allowing for a better purchasing
decision to be made in the moment (Mort &
Drennan, 2002). When equipped with financial
applications, such as mobile banking or mobile
micropayment, a mobile phone can turn into digital
cash for small payments of everyday tasks, such as
car washes, subway rides, or purchasing from
vending machines (Balasubramanian et al., 2002),
saving customers time for coin exchange or
searching.
Mobile devices also save some quality time for
customers by offering the opportunity to use ‘dead
spots’ during the day to complete simple everyday
activities (Anckar & D’Incau, 2002). For example,
consumers can handle their mobile banking
transactions while they are stuck in the traffic.
Given that convenience depends on to what
extent customers can complete activities on mobile
devices, a wider range of available mobile
applications would mean more convenience (Clarke,
2001). As the number of mobile applications
continues to increase due to the recent advent of
the iPhone and Google android-based mobile
handsets, it is likely that consumers will enjoy ever
more convenience in the near future.
It is worth mentioning, however, that
convenience provided by advanced mobile
applications may entail high costs for customers. The
usage fee of the mobile Internet in particular is
133 IJMM Winter 2010 Vol. 5. No. 2
pointed out by researchers as one of the major designed for pull marketing (Dou & Li, 2008) such as
concerns for customer adoption of mobile marketing short codes, QR (quick response) codes, and image
(Yunos et al., 2003; Frolick & Chen, 2004). Therefore, recognition-based codes, it is likely that pull
the fee structure of the available channel for campaigns will have a greater role to play in the
information should be one of the main concerns in future of mobile marketing.
designing a mobile marketing campaign.
CONCLUSIONS
Communications
This paper uses the strategic framework of the
The mobile device is inarguably an effective
marketing mix to demonstrate the potential
communication tool. It allows customers to reach (or
contribution of mobile marketing. Findings indicate
be reached by) firms anywhere and anytime, in real-
that regardless of whether it is viewed from the
time. Such conditions are important, particularly
consumer perspective or the firm’s perspective, this
when there is time or location-sensitive information
new form of marketing has enormous impacts across
to be delivered (Clarke, 2001; Anckar & D’Incau,
all key elements of the marketing mix. The major
2002). Through the use of the mobile Internet,
advantage of mobile marketing lies in its potential to
consumers are able to access important sources of
enhance communications by providing
information, communication and entertainment in
customised/personalised, timely and location-
the same way they do with the PCs, but quicker. In
specific information without restriction of time and
other words, the mobile phone increases consumer
place.
connectedness.
The mobile media allows firms not only to
In addition, the mobile phone allows for two-
improve the quality of existing products and services
way communication. The business value of this
but also to create new services available only to
feature lies in its ability to enhance customer
mobile users. These advantages can be achieved
relations, build customer databases, and to instantly
through usage of mobile applications specifically
measure the results of a campaign. With such
designed for each task. The mobile device has also
benefits, marketers tend to incorporate a two-way
proved to be an effective channel for product
aspect within any mobile marketing campaign when
development as it can amass a large amount of
opportunity allows. Such campaigns include
consumer opinions with minimal time and cost.
sweepstakes, competitions, voting, and surveys.
Choosing the right channel to reach the target
In general, there are two ways to look at mobile
audience also contributes to this success.
marketing communication, push and pull. In a push
The mobile phone offers firms an
strategy, marketers initiate communications by
unprecedented opportunity to charge a unique price
sending information directly to customers without
to each customer, leading to a highly competitive
their prior request. And quite the opposite, pull
pricing strategy in a mobile world. However, such
strategies involve delivering messages upon
conditions cannot be achieved without extensive
customer request, or placing information on
knowledge of customers and their behaviours, and
browsed mobile content (Barnes, 2002). Push
advanced pricing applications.
marketing, mostly relying on SMS advertising, has
In terms of distribution channels, mobile
dominated mobile marketing for years (Barnes,
applications are used as an integrated part of the
2002). However, when looking at the trend of
total distribution network by employing its ability to
emerging mobile applications that are specifically
track current location of vehicles.

Mobile Marketing Association 134 IJMM Winter 2010 Vol. 5. No. 2

 Current mobile promotion trends indicate that
the application of patterns and concepts developed
in traditional marketing are now being applied to
mobile devices. Advertisements, coupons, and
incentives have become a regular part of mobile
marketing campaigns. This allows for a more
efficient and convenient way to utilise those tools.
However, effective mobile promotion strategy calls
for marketers to use the mobile channel as a
complementary tool for traditional media.
For customers, the mobile phone has the
potential to satisfy their needs effectively.
Interactive capability allows firms to capture
customer information and use it to build individual
profiles, which reflect the true needs of the
individual. The collected customer information can
also be kept as a database for future marketing
activities.
Due to the convenience it provides, the mobile
phone can save customers costs and time. With a
wide range of applications now available on mobile
devices, customers can complete numerous tasks
with less time and hassle. For some product types
(e.g., digital content), they can even complete the
entire shopping process (e.g., searching, selection,
purchase, payment and delivery) on a mobile phone.
Mobile devices make people feel more
connected than ever. They also have the potential to
make communication more meaningful by offering
immediate interaction with personalised content
from anywhere. Although push communication is
dominating the market, it appears that in the near
future, pull marketing will become more prominent.
IMPLICATIONS
The importance of mobile marketing
marketing practices is widely recognised because of
the unique features of mobile media. Effective
mobile marketing strategies therefore depend on
the ability of firms to manage and operate mobile
technologies and make use of their features. With
Mobile Marketing Association
the continued development of mobile technology
assured, there will be a vast array of new
opportunities for firms to capitalise on these
features. They should closely monitor
advancements, look for new possibilities, and
integrate them into their marketing strategy. This
should be performed regularly to ensure that they
are offering up-to-date activities that satisfy
customer needs, making the best use of existing
technology.
To fully exploit mobile marketing features, firms
should focus on the power of the personal nature of
mobile devices that distinguish mobile marketing
from other forms of marketing. Mobile devices
should no longer be used as just a channel for
advertising. Instead, they should be seen as a virtual
one-to-one marketing channel where marketers
engage customers in personalised relationships. Only
information that customers value, or that they deem
important, should be communicated through this
medium, in order to ensure that the right customer
is getting the right message at the right moment.
Given that there are multiple mobile
applications available on the market, firms should
make sure that their mobile marketing campaigns
are using the right application for the right target
audience. Different applications have different levels
of difficulty of use, and some applications are more
suitable for certain groups of consumers than
others. A lack of experience or knowledge in using
an application may prevent customers from
responding to the campaign. Standard applications
such as SMS may be the most appropriate for a mass
campaign, while a flashy and intriguing application
could be used in a campaign targeting teenagers to
in
attract their attention.
Regardless of whom the target audience is or
what application is employed, every mobile
marketing campaign should be planned and
implemented with respect to customer privacy and
135 IJMM Winter 2010 Vol. 5. No. 2
security concerns so that the most effective results
can be realised. For example, campaigns should be
permission-based. The permission should be specific
to mobile devices. A method of unsubscribing should
be clearly provided. A clear sender’s name should be
attached to the message. In other words, mobile
marketing campaigns must abide by relevant laws or
codes of conduct.
SUGGESTIONS FOR FUTURE RESEARCH
Based on the findings of this study, promotion is
the area in which mobile devices have the most
impact, and is therefore worth revisiting. The
marketing communication mix offers a wide range of
tools to reach customers. Each tool has unique
characteristics and is designed for different
purposes. While some of these tools have already
been applied to mobile media, some have not. This
gives firms the opportunity to expand the use of
mobile devices into new marketing areas, warranting
further investigation.
While this research has given a review of the
impact of mobile technology on marketing practices,
it is based only on existing technology and
applications. As technology continues to evolve, new
mobile technologies have been continuously
adopted for commercial use. The impact of these
emerging technologies needs to be investigated in
order to identify possible changes in a firm’s
marketing strategy.
Due to the personal nature of a mobile device,
communication through this channel has a high
tendency to invade customer privacy, which could
result in a negative influence on customer
perception of the brand being promoted. Future
research could explore the impact of mobile
marketing in this regard in greater detail so that
firms will have the knowledge to prepare themselves
for such challenges.
Mobile Marketing Association
Phumisak Smutkupt
School of Management
Asian Institute of Technology,
Thailand
Donyaprueth Krairit*
School of Management
Asian Institute of Technology
Thailand
donya@ait.ac.th
Vatcharaporn Esichaikul
School of Engineering and Technology
Asian Institute of Technology,
Thailand
*Corresponding author
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