LITERATURE REVIEW

Allocating marketing budgets in the most efficient way it remains one of the key challenges for
any marketing executive. Especially in cases of online pure plays such as social networks, the
trade-off between online channels (display advertising and search engine marketing) versus
classic communication (television, radio, print). In practice, online channels are often being
favored for their direct accountability in terms of cost per click.

Trends Observed with regards to E- marketing

MARKUS PFEIFFER (2010) has discussed the same in his research paper. With the
development and advancement in the knowledge and technology of the consumers there are
many different ways opening for the marketers for promoting there products through online or
traditionally. For example, display related advertising and search advertising together
accounted for more than 80 percent of the U.S. Q2 2009 online advertising revenues (IAB,
2009a).
Increased preference for online advertising over retail stores
In another article by: Jason Ankeny (2010) talks about how frequently the companies and
consumers are using the search engines and companies websites. According to Jason’s research,
more than 4 million businesses have claimed their Place Pages, posting contact information,
hours, photos, video clips and coupons. Business owners can use Place Pages to get customer
feedback and communicate with patrons, and a personalized dashboard compiles data including
how many times people have found your firm on Google and what keywords they used to sniff it
out.

To have an impact online marketing must be unique and right on target. Online marketing is not
just a mere web promotion activity because leading traffic to your site is not as simple as it may
seem. An article by: Robert B Hutchins. Just like in traditional marketing, many factors are
considered to make a business profitable. Since more and more people are turning to the internet
for different purposes such as research, shopping and downloading, this is a new market to tap
and if your marketing strategies work to your advantage, make huge profit out of it.
E- Mail Marketing and Geo marketing

Advertising is not the only way to attract new market. It is the whole approach that matters
actually. Although competition online is getting stiffer by the day, it is possible to target a
particular market. Email marketing is one common form of one-to-one approach. Getting
messages in your email inbox is a personal thing so this can work for most businesses who want
to inform, attract and lead people to their sites. Henry Assael(2005) talks about this in his article.

Geo Marketing Is another way of attracting traffic to your site. It identifies gender, group and
geography and so it targets a specific group. This is possible in online marketing and saves on
costs in the process. It’s not a “let’s see who will be interested” thing but rather marketing
professionals are right on target based on their study of market behavior. This type of marketing
even offer automated content in different languages to make an impact on their target audience.

Internet Advertising Influential for Consumer Purchases

In one of the research paper by: Fleishman-Hillard and Harris they have talked about When it
comes to driving consumer decisions about a range of products and services, the Internet is by
far the most influential media channel — but marketers have yet to capitalize on that influence.
“Our survey provides overwhelming evidence that the Internet is at the center of the decision-
making process of consumers,” said Dave Senay, Fleishman-Hillard president and chief
executive officer. “It suggests, definitively, that marketers who do not have end-to-end strategies
which put digital influence at the center of their marketing plans are doing so at their own peril.
Marketers who ‘get it’ will be able to leapfrog their competitors who don’t.”

Internet as One Stop Shop

One of the best thing about internet is tat it is an ultimate solution for all kind of customer
requirement. You can get al most every thing on net that’s the reason y a lot of people are
interested in buying products online. They just sit at their home relax and with a click they check
all the available models, verities, color etc of the various products they want to buy.
Social validation

In an article by: Maneesh Madambath 2008 With the advent of social media, social proof as a metric
has got into the marketing man’s lingo. Blogs, social networks, etc. have played a major role in creating
the social proof for brands online and thus helped their marketing efforts. As the web goes into higher
versions and more social, the influence that its users have on each other is bound to increase and
therefore the role of social influence is bound to tread the same path.

Social proof in fact is such a powerful phenomenon that one can assert the goal of new age web
marketing, the one that involves the socialness of the Internet is perhaps to build your products’
social proof. It goes beyond quarterly sales targets and creates a sphere of influence that turns
customers into sellers [no, not quite affiliate marketing. Having said that, social proof isn’t a
concept relegated to social media. It has its place in all web marketing efforts, from banner
advertising to pay per click campaigns, from social bookmarking to search engine rankings.
Advertising online is a factor of persuasion and social proof is the psychology of persuasion.

Accessing a Larger Customer Base

In an article by: Rachel Sadon it talks about how through online advertising even the small
companies can even reach out to a bigger customer base. Now the companies have an esy acess
to a large customer base. Advertising on facebook ,twitter etc is much cheaper in cost and cater
to much large audience. It filters the customer on these filters such as: Age, location, mobile
space, social media etc.

Cost Effective

Many a times the cost of making a web site is very huge and for small scale and local business is
out of their budget. Therefore rather than build a web site it is easy to make a facebook page at a
much lesser cost. In an article by Elsa Wenzel in which he says that making a facebook profile
page similar to a general profile and then put their data and information, pictures about their
business. This facebook business page give us all the options to personalize it and set our target
segment .People can like your page and become fan it gives a very good opportunity to the
company to interact with their customer or the future customers. With an expenses of $1 a day
we get an opportunity to experiment a lot.
Cross Media Advertising
LEA M. WAKOLBINGER, MICHAELA DENK, KUUS OBERECKER has very well explained
how Cross-media advertising has received wide attention from practitioners over the last
years, but there are only few experimental studies that analyze the effectiveness of
integrating online and print advertising. Contributing to this relevant research field,
this article analyzes advertising effectiveness of print and online media as well as the
impact of combining these two media forms on overall advertising effectiveness. Their
study supports existing findings that print and online advertising feature the same
advertising effectiveness. The experimental data, however, also indicate advantages of
cross-media advertising.

E- Marketing As An Instrument of Advertising

Online marketing is even used by the companies for influencing the customers regarding their
buying decisions. Social proof is actually psychological concept or factor of human decision
making. It has created a major role for proof of brands, its building influence. In this article
Ching H.L.;Ellis P. (2004) talks about how social proof is important in influencing the customers
mind set and that a lot of advancement in needed in this sector. Awareness is still to be created
among the people about the online marketing. There is large scope of online marketing in the
Indian markets. It is just that awareness is to be created on both the side customer as well as
sellers.

Joining Ad Platforms

. HBS professor Benjamin G. Edelman and doctoral candidates Itai Ashlagi and Hoan Soo Lee
explore competition among ad platforms that offer search engine advertising services. In
addition, the authors evaluate possible transactions among ad platforms—building tools to
predict which transactions improve welfare and which impede it. Key concepts include:

 Participation costs exist and matter, affecting bidders' decisions about which ad platforms
to use, and changing the welfare consequences of mergers or joins among platforms.
  By creating a joined ad platform of larger size than Microsoft or Yahoo alone, the
transaction lets advertisers spread participation costs over a larger purchase, making it
worthwhile for small to midsize advertisers to sign up with the joined Microsoft-Yahoo
platform even though they do not use Microsoft or Yahoo separately.
 Preventing a competing platform from attracting advertisers reduces the quality of that
competing platform (fewer ads yielding an inferior match with users' searches), cuts that
platform's revenue (impeding future investment), and generally hinders that platform's
efforts at growth.

Internet New Arena In Marketing

It is not that online advertising is a hit, in an article by: Eric Clemons (2009) stats that internet is
the most liberating of all mass media developed to date.  It is not meant solely to push content, in
one direction, to a captive audience, the way movies or traditional network television did.  It
provides the greatest array of entertainment and information, on any subject, with any degree of
formality, on demand.  And it is the best and the most trusted source of commercial product
information on cost, selection, availability, and suitability, using community content,
professional reviews and peer reviews. Now, inspired by the Internet's ability to do a better job
of targeting prospects and measuring results, advertisers are dreaming up new ways to break
through connect with potential customers at a lower cost. The new techniques are affordable to
smaller companies, too.

In the article by: ENRIQUE P. BECERRA and PRADEEP K. KORGAONKAR purchasing

power and Internet usage are on the rise, but published research on the influence of Web
advertising on their purchase intentions online is still scarce. Still there is a lot of development
that need to be done in online advertising in developed or developing countries another reason is
lack of technological advancements. In countries like India almost 60% people don’t know how
to use computers.
BIBLIOGRAPHY

 David H. Freedman The Future of Advertising is Here  |  Aug 1, 2005

 ENRIQUE P. BECERR Texas The Influence of Ethnic Identification in Digitai

Advertising State University and PRADEEP K.KORGAONKAR Florida Atlantic
University
 Enzmann, Matthias; Schneider, Markus (2005) Improving Customer Retention in E-
Commerce through a Secure and Privacy-Enhanced Loyalty System Information Systems
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 Eric Clemons Why Advertising Is Failing On The Internet March 22, 2009

 Henry Assael “Consumer Behavior”(2005),” Biztantra Publication

 Itai Ashlagi, Benjamin G. Edelman, and Hoan Soo Lee Competing Ad Auctions: Multi-
homing and Participation Costs January 22, 2010 Harvard Business School

 Jason Aukery “Another place to hang your shingle” Entrepreneur Magazine- August
2010

 LEA M.WAKOLBINGER, MICHAELA DENK, KUUS OBERECKER The

Effectiveness of Combining Online and Print Advertisements of University of Vienna.

 Markus Pfeiffer “Can old media enhance new media?” (2010)

 Maneesh Madambath The Concept of Social Proof and the Impact on Online Marketing •
December 12, 2008 Economics times.

 New Media and Online Marketing - Strategies, Advantages and Disadvantages Ching
H.L.; Ellis P. (2004) Marketing in Cyberspace: What Factors Drive E-Commerce
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 Rachel Sadon “ There’s Big Opportunity in Lower cost” 4 P’s magazine.

 V.seenu Srinivasn, Anand Bodapti “The impact of feature advertisements on consumer

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