Online Marketing and its Effectiveness

Dissertation submitted in partial fulfilment of the requirements for the

degree of

Bachelor of Business Administration

by

Sasanka Sekhar Mishra

Registration No. 1481307003

Under the Guidance of :

Dr. Manoranjan Dash

Associate Professor, Faculty of Management Sciences,
Siksha 'O' Anusandhan (Deemed to be University)

Institute of Business & Computer Studies

(Faculty of Management Sciences)

SIKSHA ‘O’ ANUSANDHAN

(Deemed to be University)
BHUBANESWAR, ODISHA, INDIA

2022
 DECLARATION

I undersigned, Mr Sudhansu Sekhar Panda, the student of INSTITUTE OF

BUSINESS & COMPUTER STUDIES (IBCS), SIKSHA ‘O’ ANUSANDHAN
UNIVERSITY, BHUBANESWAR declare and confirm that work done by me is
original and true to the best of my knowledge & beliefs.

I declare that this project is my own preparation and not copied or

extracted from anywhere else. It is the result of my efforts and dedication
Moreover; it has been approved by the management of OMFED, BALASORE.
And it does not contain any material objectionable to them.

This dissertation report is just a part of INSTITUTE OF BUSINESS &

COMPUTER STUDIES (IBCS), SIKSHA ‘O’ ANUSANDHAN UNIVERSITY,
BHUBANESWAR and will not be used elsewhere.

Date:

Place: (Sudhansu Sekhar Panda)

PREFACE

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 The successful completion of this project was a unique experience for

me and I achieved a better knowledge about Social media marketing in India.

The experience which I got by doing this project was essential to our future.

The information in this project being submitted by me contains detailed

analysis of the research undertaken by me.

The research provides an opportunity to us to devote my skills, knowledge and

competencies during my knowledge gathering sessions of marketing

management.

The research is on the topic “Online Marketing and its Effectiveness”.

ACKNOWLEDGEMENTS

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“Debts can be certainly repaid, but co-operation extended and the guidance

given by someone can never be repaid.”

“Knowledge is an experience gained in life, it is the choicest possession, which

should not be shelved but should be happily shared with others. It is the

supreme art of the teacher to awaken joy in creative expression and

knowledge.”The success of any project is the result of hard work & endeavour

of not one but many people and this project is no different. I take this as a

prospect to a vow that it was an achievement to have succeeded in my final

project, which would not have been possible without the guidance.

Therefore, I would thank to my University guide Prof. Manoranjan Dash

(Asst. Professor, IBCS, S’O’A University, Bhubaneswar) without his valuable

guide and support it would not have been possible to carry out my training.

Sudhansu Sekhar Panda

EXECUTIVE SUMMARY

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 Internet is fast emerging as a powerful medium of marketing in the new millennium.
With the number of Internet users increasing manifold, the new medium is viewed as the
advertiser's dream. The Internet is the fastest growing medium in the 2000’s with millions of
users and an average estimated growth of 124% annually. Internet advertising is becoming a
part of some companies marketing strategy- however it requires new strategies and
thinking. The benefits of Internet advertising is its ability to cover people from different
geographical area with varied tastes and preferences. This study is descriptive study and the
sampling technique here used is convenience sampling. The sample size is 200 selected from
the population of Bhubaneswar. The data is collected with the help of structured
questionnaire, which includes open end and close-ended questions.
The next step in the research process is Analysis and Interpretation of the Data collected
from the respondents. This Analysis and Interpretation is done with the help of Graphs and
Tabulation, They are prepared with the help of MS Excel software. With the help of Analysis
and interpretation the findings are drawn which includes whether consumers are aware of
online marketing, do online marketing effect their purchase behaviour. With the critical
Analysis and Interpretation the Suggestion’s are drawn on how to improve Online Marketing
in order to attract much of the viewership and to increase the purchasing efficiency and also
to improve the methods of online advertisement. Finally a conclusion, where the briefing
and the topic aspects is been given with few suggestions, finally concludes the Project
Report.

TABLE OF CONTENTS

Chapter No. Particulars Page No.

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 Introduction 7-10
1
1.1 The prologue
1.2 Research problem
1.3 Objective of study
1.4 Methodology of study
1.4.1 Research approach
1.4.2 Sampling techniques
1.4.3 Sample size
1.5 Scope of study
1.6 Limitations of study

2 Literature Review 11-14

About Online Marketing 15-26
3
3.1 Evolution of Marketing
3.2 7P’s of Marketing on the internet
3.3 Internet Marketing and its tools
3.4 E-commerce And Online Shopping
3.5 How online shopping works
3.6 Challenges in internet marketing

Data analysis and interpretation 27-43

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4.1 Methods of analysis
4.2 Data collections
4.3 Tools of representation
4.4 Analysis and interpretation

Summary And Conclusion 44-46

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5.1 Major Findings
5.2 Recommendations
5.3 Conclusion
Annexure 47-49
 Bibliography

 Sample copy of questionnaire

CHAPTER: 1

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 INTRODUCTION
1.1 The prologue
1.2 Research Problem
1.3 Objective of the study
1.4 Methodology of study
1.4.1 Research Approach
1.4.2 Sampling Techniques
1.4.3 Sample Size
1.5 Scope of Study
1.6 Limitations of study

1.1 THE PROLOGUE

Online marketing or Internet advertising is a form of marketing and advertising

which uses the Internet to deliver promotional marketing messages to consumers. It
includes email marketing, search engine marketing (SEM), social media marketing, many

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types of display advertising (including web banner advertising), and mobile advertising. Like
other advertising media, online advertising frequently involves both a publisher, who
integrates advertisements into its online content, and an advertiser, who provides the
advertisements to be displayed on the publisher's content. Other potential participants
include advertising agencies who help generate and place the ad copy, an ad server which
technologically delivers the ad and tracks statistics, and advertising affiliates who do
independent promotional work for the advertiser.
In 2011, Internet advertising revenues in the United States surpassed those of cable
television and nearly exceeded those of broadcast television. In 2013, Internet advertising
revenues in the United States totalled $42.8 billion, a 17% increase over the $36.57 billion in
revenues in 2012. 4–5 U.S. internet ad revenue hit a historic high of $20.1 billion for the first
half of 2013, up 18% over the same period in 2012. Online advertising is widely used across
virtually all industry sectors.

1.2 RESEARCH PROBLEM

After having reviewed the different survey design possible for internet marketing research
survey the practical problems of survey are:-
 Define the Universe: - The universe is total group to be studied. It is the grand total of
what is being measured. Internet is open and growing universe.
 Define the sampling units: - The sampling units are units for which information is
sought, they are individual, the elementary units comprising the population about which
interferences are to be drawn.
 Identifying the sampling frame: - Different internet research engine can be used.
 Select a sampling procedure: - The choice of procedure can be limited by the availability
of supplementary information.
 Determine the sample size: - Problem to evaluate the variance of the population.
 Select the sample elements: - Problem to control the randomization.

1.3 OBJECTIVE OF THE STUDY

 To compare the trust level of traditional marketing and online marketing (consumers
point of view)
 To find the effectiveness of internet marketing (reach and creation of awareness)

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  To find the reliability of internet marketing (recall and remembrance).
 To ascertain which type of online advertising is preferred by consumers.

1.4 METHODOLOGY OF STUDY

1.4.1 Research Approach

There are two sub categories for research approaches. First category is deciding between
deductive or inductive approach and the second category is deciding between qualitative or
quantitative approach.
Deductive or Inductive Approach
Deductive approach is “a research approach involving the testing of a theoretical
proposition by the employment of a research strategy specifically designed for the purpose
of its testing”. Inductive approach research as “an approach involving the development of a
theory as a result of the observation of empirical data”.
In general speaking, the deductive approach starts from theory to facts and the inductive
approach research develops theory from observations. In our thesis, a deductive approach is
adopted. First, we use existing theories and models to develop our research question and
then analyze our collected data.
Quantitative and Qualitative Approaches
“Quantitative is predominantly used as a synonym for any data collection technique (such
as a questionnaire) or data analysis procedure (such as graphs or statistics) that generates
or uses numerical data”. “In contrast, qualitative is used predominantly as synonym for any
data collection technique (such as an interview) or data analysis procedure (such as
categorizing data) that generates or uses non-numerical data”. Hence our interview
questionnaire is designed to collect both quantitative and qualitative data from
respondents; mixed method is adopted in our thesis.

1.4.2 Sampling Techniques

There are two possible sample selection options: Probability and Non-Probability.

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“Probability methods are based on the premise that each element of the target population
has a known, but not necessarily equal, probability of being selected in a sample” (Hair et
al., 2011). “Probability sampling is most commonly associated with survey-based research
strategies where you need to make inferences from your sample about a population to
answer your research question(s) or to meet your objectives”. “Non-Probability is where the
inclusion or exclusion of elements in a sample is left to the discretion of the researcher”.

Our sample selection method is non-probability and we used subjective criteria to select
our respondents, such as their availability for questioning and fitting to our age group.
Respondents of our research are aged between 20 and 30 years old who are in the age
group of most active internet users.

1.4.3 Sample Size

Sample should be a user of internet or should have knowledge about internet. Therefore
200 numbers in all.

1.5 SCOPE OF STUDY

In order to reach an entirely new and unexploited market it’s so very important these to
participate in internet or online marketing for your business. If you operate your current
business only in one physical location, wherein you’re only able to draw in customers who
happen to live in your town or end up shopping there for whatever reason, you are in true
need of right Internet Marketing Solutions. It is the general belief of people that online
marketing is too expensive these days but the fact is even without a lot of tech knowledge,
you can not only design a simple website for free but also spread the word yourself through
email or an online newsletter.

1.6 LIMITATIONS OF STUDY

 The sample size is limited to 200 Internet users hence the result of the study cannot
be taken as universal.

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 Findings of the survey are based on the assumption that the respondents have given
correct information.
 Since the respondents had to fill the questionnaire while busy with their hectic
schedule, many people were reluctant to answer.
 The study was conducted only in Bhubaneswar and therefore, several other
potential samples outside the city were neglected

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 CHAPTER: 2

LITERATURE REVIEW

REVIEW OF LITERATURE

E-Commerce and B2C

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According to Chaffey (2009) e-commerce defined as “all electronically mediated non-
financial transactions and financial transactions between an organization and any third party
it deals with”. Internet enabled users to pay lower transaction costs and it provided an easy
way of access on information and details; and internet provides more alternatives and more
competitive prices about the products or services rather than traditional environment (Chun
and Kim, 2005). Huang (2010) expresses that, internet has changed the way of business and
created new marketplace where companies and customers come together and create
communication with each other more efficiently. Similar to this view, Pries et al., (2006)
states that internet enabled easy access to a global marketplace where information of
products, prices and distribution are equal for all. Chaffey (2009) states “Business-to-
consumer (B2C) markets have made a significant contribution to the commercial
development of the Internet encouraging wide-scale use of computer networks by a diverse
and increasingly global range of consumers”.

Online Marketing
Development of internet led to new changes in businesses and created a new, interactive
and social communication platform for companies to interact with customers. Shih and Hu
(2008) states that, Internet is an important channel for companies and it must be used
wisely by marketing departments to attract new customers and retain the existing ones.
Nowadays, companies started to use the online medium as a new effective way of
marketing communication. Bush et al., (2000) supports this view by stating “The astonishing
growth of the Internet coupled with its unique capabilities has captured the attention of the
marketing community”. All these changes and developments brought up a new activity
which is marketing through internet. Chaffey et al., (2009) states that “E-marketing is
focused on how a company and its brands use the web and other digital media such as e-
mail and mobile media to interact with its audiences in order to meet its marketing goals”.
In addition to this view, Shih and Hu (2008) states that if companies expects to get return
from their e-commerce companies and online efforts, they must develop their marketing
activities well to be able to reach new customers and to be able to keep current ones by
providing good online customer service.

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Kierzkowski et al., (1996) states that there are several digital marketing success factors for
companies to succeed in the online market, these five factors are; attract users, engage
users‟ interest and participation, retain users and ensure their return to an application,
learn about their preferences, and, lastly, relate back to them to provide the sort of
customized interactions. Similar to Kierzkowski et al., (1996), Chaffey (2009) states that
there are three main operational processes of e-marketing: customer acquisition (attracting
site visitor), conversion (engaging site visitors), and retention (encouraging the continued
use of digital channels).

Online Marketing Communications

Kierzkowski et al., (1996) expressed “the current clutter on the Internet virtually ensures
that the „build it and they will come‟ model is insufficient to draw consumers, marketers
need to actively attract users in the first place” online marketing is much more complicated
and planned communication activity rather than just putting an online advertisement.
Companies may have great content, dynamic and attractive design on their website, but the
customer may not be aware of that website because of wrong or inadequate online
marketing. That’s why companies must start their online marketing strategy by focusing on
attracting visitors to the company’s website in first hand. Similar to this view Chaffey (2009)
states: “before an organization can acquire customers through the content on its site, it
must, of course, develop marketing communication strategies to attract visitors to the
website”. Online marketing communications defined by Chaffey (2009) as “Online
communications techniques used to achieve goals of brand awareness, familiarity and
favorability and to influence purchase intent by encouraging users of digital media to visit a
website to engage with the brand or product and ultimately to purchase online or offline
through traditional media channels such as by phone or in-store”. Marketing
communications through the online medium started to take active role in marketing
activities of companies. Shankar and Hollinger (2007) state “the role of online marketing
communications in the marketing mix is constantly evolving.”

Online Customer

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Starting with the term of „end-user‟ which was pushed by scholars in the late 1970s to
define the persons that would finally benefit from the usage of information, the growing
number of users, we refer to tens of millions, in the coming 20 years after that have given
birth to the term “consumers‟ which recognizes their economic power of purchase
(Nicholas et al., 2003).

Nicholas and Dobrowolski (2000) argue the over-usage of the term ‟user‟ in reference to
the Internet and introduce the new term of „player‟ to explain the interconnectivity
between a person and today’s interactive information systems. The term offers a new name
for the information consumer and characterizes information seeking behaviour as
interactive, recreational, social and competitive with nuances depending on individual
online engagement.

Effectiveness in communication

According to Lasswell (1948, cited in Danaher and Rossiter, 2011) communication has 4
main components: a source or initiator, a message, a channel of transition or media and a
receiver. Effective communication is seen as the sender’s ability to properly anticipate and
transmit, through a certain media or channel, a message that mirrors receiver’s needs. (Ibid)
13 Danaher and Rossiter (2011) put a lot of emphasis on the media that the message is
transmitted through and the important role of that media in the communication
effectiveness. To test channel and communication effectiveness they have established a list
of 14 attributes that describe and measure channel effectiveness in communication: easy-
to-reject, enjoyable, trustworthy, informative, convenient, acceptable, entertaining, reliable,
appropriate, objectionable, annoying, time-consuming, and difficult to ignore, disruptive.
Cho and Huh (2010) linked „enjoyable‟ and „entertaining together‟ and discovered the
importance of these two attributes in the form of multimedia features that can increase
effectiveness of customer interaction.
Seock and Norton (2007) divide attributes into direct, indirect, positive and negative
attributes that can influence students‟ online purchase intentions. Positive attributes were
linked directly to positive attitudes to purchase from B2C websites. „Fun to visit‟ was also
mentioned as a big plus for favourite websites and “utility” of a website. They also connect
intention of purchase directly to security and trustworthiness of websites and data

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presentation. But they argue an increase in positive meaning of this attribute to repeated
purchase. Also Nicholas et al., (2003) point out that obtrusive advertising is a directly link to
reduction in brand trustworthiness. For marketing managers, the problem of effectiveness is
more complicated as there are numerous ways to quantify data and the results can be as
many as the possibilities, all with different meanings. Adam et al., (2009) showed that
traditional marketing efforts (TME) and online marketing efforts (OME) are separate
marketing performance elements and they need different tools of measurement. Even
more, their results showed that OME are predicting marketing performance, while TME are
predicting financial performance.

CHAPTER: 3

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 About online marketing

3.7 Evolution of Marketing

3.8 7P’s of Marketing on the internet
3.9 Internet Marketing and its tools
3.10 E-commerce And Online Shopping
3.11 How online shopping works

3.1 EVOLUTION OF MARKETING

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At the beginning of the 19th century, social life was mostly local. It was followed by a period
in which commodities were produced on a mass scale. Consumer Marketing operated on
mass marketing principles and business primarily concerned itself with how to build the best
sales force. At the end of the century, there is an emerging global culture. The major driver
of these changes is technology. Technological change has moved steadily back focusing on
the individual. These changes shape the possibility and conduct of business. Marketing is
especially tied to communication and transportation revolution. As the tools and reach of
marketing increase, the job and responsibilities of marketers have evolved with them.

Kotler formalized this evolution with his book "Marketing Management." His key stages are
production, sales and brand management. Each of these is strongly motivated by
technological opportunities, which permit new methods and new opportunities. A fourth
stage, a focus on the individual customer, is also important. As the new technology of the
Internet develops, it reinforces the new marketing emphasis which in many ways is a return
to business at the turn of the century.
In today’s technology driven world, a new fast paced digital economy is emerging. In the
near future, it wouldn’t be surprising to see that there are companies that exist only inside
computer networks. Most business transactions will be made electronically, directly from
the producer to the consumer, bypassing the supply chain. In the digital marketing
environment, the consumer becomes an integral player in the development of the product.
In fact, a consumer might build the product himself from a wide array of parts provided by
the company. It is e-commerce that is changing the way products and services are
conceived, manufactured, promoted, priced, distributed and sold. The reason being that it is
much cheaper; it allows vast coverage and helps in serving the customer better.

3.2 7 P’S OF MARKETING ON THE INTERNET

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The four P's - Product, Price, Place and Promotion have long been associated with marketing,
but things have changed on the Internet. So along with a change in the nature of the four P’s
there are three new P’s which are relevant to the internet marketer.

1. The Product on the Internet usually changes form online, and the user experiences
it electronically, in the form of text, images and multimedia. Physical goods are usually
presented in the form of a detailed online catalogue that the customer can browse
through. Technology allows the user to virtually touch and feel the product on the
Internet - rotate it, zoom in or zoom out and even visualize the product in different
configurations and combination. The example of the above can be seen at dell.com
where the company offers the user to virtually feel every aspect of their product before
they go into a buy decision. Content and software are two avatars of digitized products
that can be even distributed over the Internet. Infact Information is one of the biggest
product on the internet as people search and read a lot of news and information on the
internet. On the Internet, E-marketing will be based more on the product qualities rather
than on the price. Every company will be able to bring down the cost of its products and
hence competition will not be on price. It will rather be on the uniqueness of the
product. To be able to attract the customers and retain them, the company will have to
provide nouvelle and distinct products that forces the net users to purchase and come
back for more.

2. The Price has been drastically changed over the Internet. It lets the buyer decides
the price. Also it gives the buyers information about multiple sellers selling the same
product. It leads to best possible deal for the buyers in terms of price. A website named
cleartrip.com is extremely popular as its compares the price of many airlines and offers
the least price to the buyer. The very famous bazee.com now known as eBay. in follows
the same principles and it is one of the biggest online shopping websites in the world.
Pricing is dynamic over the Internet.

3. The Place revolves around setting up of a marketing channel to reach the customer.
Internet serves as a direct marketing channel that allows the producer to reach the

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 customer directly. The elimination of the intermediate channel allows the producer to
pass the reduced distribution cost to the customer in the form of discounts. For example,
Dell Computers used this strategy very effectively and hence they have been able to
reduce their prices of their laptops drastically and reaped huge profits.

4. Promotion is extremely necessary to entice the customer to its website, as there

are currently more than 18 billion web pages. Promoting a website includes both online
and offline strategies. Online strategies include search engine optimization, banner ads,
multiple points of entry, social media marketing, strategic partnership and affiliate
marketing. Presently, the cyberspace is already cluttered with thousands of sites
probably selling similar products. For the customers to know of the Company’s existence
and to garner information on the kind of products or services that the company is
offering, promotion has to be carried out. There can be traded links or banner
advertisements for the same. Also the traditional mediums like print, outdoor advertising
and television can be used to spread awareness. Email campaigns and spamming the
Chat rooms on almost every server has been exploited to the maximum for the cause of
promoting their website.

5. Presentation The presentation of the online business/ website needs to have an

easy to use navigation and a pleasant and neat look. The look and the feel of the web site
should be based on corporate logos and standards. About 80% of the people read only
20% of the web page. Therefore, the web page should not be cluttered with a lot of
information. Also, simple but powerful navigational aids on all web pages like search
engines make it easy for customer to find their way around. The principle of K.I.S.S (Keep
it simple stupid) is the most important factor that has to be considered while presenting
the online business

6. Processes Customer supports needs to be integrated into the online web site. A
sales service that will be able to answer the questions of their customers fast and in a
reliable manner is necessary. To further enhance after sales service, customers must be
able to find out about their order status after the sale has been made. For e.g. FedEx

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 (www.fedex.com), the overnight Courier Company allows its customers to keep track of
the parcel and they are well informed about the present whereabouts of their package.
Similar variants have been used by the Govt of India for its Speed post and Registered Ad
services where you can keep a track of your post by entering the code that has been
issued to you.

7. Personalization Using the latest software from Broad-Vision and others, it is

possible to customize the entire web site for every single user, without any additional
costs. The mass customization allows the company to create web pages products and
services that suit the requirement of the user. A customized web page does not only
include the preferred layout of the customer but also a pre selection of goods the
customer may be interested in. For e.g. Yahoo! (www.yahoo.co.in) entered the Indian
cyberspace and started its personalized services. A registered user of Yahoo can now
personalize the front page with all the information he needs. He can read the news of
the world, add a tax calculator, see the weather forecasts of his city and listen to his
favourite songs and all this simultaneously.

3.3 INTERNET MARKETING AND ITS TOOLS

Internet marketing, also referred to as I-marketing, web marketing, online marketing, or e-

Marketing, is the marketing of products, or, services over the Internet. The Internet has
brought media to a global audience. The interactive nature of Internet marketing, both, in
terms of providing instant response and eliciting responses, is a unique quality of the
medium. Internet marketing is sometimes considered to have a broader scope because it not
only refers to, such as, the Internet, e-mail, and wireless media, but also it includes
management of digital customer data and electronic customer relationship management
(ECRM) systems.
There are various tools/modes to internet marketing. However, choosing the right one is
very important. Each of them has its own advantages and disadvantages. Choosing modes
mainly depends upon the kind of product you have and your target audience. Below are list
and an extensive analysis on the various tools of internet marketing:-
 SEO

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  E-mail Marketing
 Social Media Marketing
 Affiliate Marketing
 Banner Advertising/ Ads
 Rich Media Marketing
 B2B Web Portals

SEARCH ENGINE OPTIMIZATION (SEO)

A web search engine is a tool designed to search for information on the World Wide Web.
The search results are usually presented in a list and are commonly called hits. The
information may consist of web pages, images, information and other types of files. Some
search engines also mine data available in databases or open directories. Unlike Web
directories, which are maintained by human editors, search engines operate algorithmically
or are a mixture of algorithmic and human input.

E-mail Marketing

Ethical methods of gathering e-mail addresses are through on-line registration built into your
corporate Web sites, or requests for information forms that request submission to your opt-
in lists. An alternative is to purchase lists of customer e-mail addresses indexed by special
interests from a private company such as 'Postmaster Direct' or even use PC software’s for
mass e-mailing. It is a form of direct marketing which uses electronic mail as a means of
communicating commercial or fundraising messages to an audience. In its broadest sense,
every e-mail sent to a potential or current customer could be considered e-mail marketing.
However, the term is usually used to refer to:-
 Sending e-mails with the purpose of enhancing the relationship of a merchant with
its current or old customers and to encourage customer loyalty and repeat
business.

 Sending e-mails with the purpose of acquiring new customers or convincing old
customers to buy something immediately.

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Adding advertisements in e-mails sent by other companies to their customers.

Social Media Marketing

Social media are media designed to be disseminated through social interaction, created
using highly accessible and scalable publishing techniques. Social media supports the human
need for social interaction, using Internet- and web-based technologies to transform
broadcast media monologues (one too many) into social media dialogues (many to many). It
supports the democratization of knowledge and information, transforming people from
content consumers into content producers. Businesses also refer to social media as user-
generated content (UGC) or consumer-generated media (CGM).
Social Media are online technologies and practices that people use to share opinions,
insights, experiences, and perspectives with each other. Social media are distinct from
industrial media, such as newspapers, television, and film. While social media are relatively
inexpensive and accessible tools that enable anyone (even private individuals) to publish or
access information, industrial media generally require significant resources to publish
information.
One characteristic shared by both social media and industrial media is the capability to reach
small or large audiences; for example, either a blog post or a television show may reach zero
people or millions of people. The properties that help describe the differences between
social media and industrial media depend on the study. Some of these properties are:
 Reach - Both industrial and social media technologies provide scale and enable anyone to
reach a global audience.
 Accessibility - The means of production for industrial media are typically owned privately or
by government; social media tools are generally available to anyone at little or no cost.
 Usability - Industrial media production typically requires specialized skills and training.
Most social media do not, or in some cases reinvent skills, so anyone can operate the
means of production.
 Regency - The time lag between communications produced by industrial media can be long
(days, weeks, or even months) compared to social media (which can be capable of
virtually instantaneous responses; only the participants determine any delay in
response). As industrial media are currently adopting social media tools, this feature may
well not be distinctive anymore in some time.

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 Permanence - Industrial media, once created, cannot be altered (once a magazine article is
printed and distributed changes cannot be made to that same article) whereas social
media can be altered almost instantaneously by comments or editing.

Affiliate Marketing:

Affiliate Marketing enables you to increase online sales by promoting your products and
services through a network of Affiliate sites on a payment-by-results basis.
It also provides the opportunity to generate additional revenue by exploiting your site's own
content to promote the products and services of other online Merchants. A Merchant
recruits content sites to partner with them as Affiliates in exchange for commissions. A
common third party provider such as Commission Junction can be used. The Merchant
provides their advertising banners and links to their Affiliates and assigns a commission for
each click-through to their site, subscription to their service, or purchase of their products
that is generated from those links. Affiliates place the tracking code for these ads and links
on their Web sites. This allows click trough’s to be tracked online and commissions to be
calculated. If a product or service is purchased, the customer pays the Merchant directly and
the Affiliate is paid a commission for that transaction. The dating giant
adultfriendfinder.com has used this strategy to the maximum and has earned millions of
dollars by proper implementation of this strategy.

Banner Advertising

Banner advertising can play an extremely important role within your website strategy. One
can use banner advertising as a means of promoting its own products and services, raising
awareness, or as a way of generating revenue by selling advertising space on your own
website.
 Purchasing Advertising: There are currently two widely recognized methods of
purchasing banner advertising. The rates for these are usually quoted on a cost per

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 thousand basis or (CPM). The rates you pay can vary tremendously as there is
currently no standard price model - so be prepared to negotiate!
 Pay-Per-Impression: This method of purchasing banner advertising is based on a
charge for the number of times someone sees your banner. There are no guarantees
as to how many visitors will come to your site as a result of seeing your banner; you
are simply paying for the number of times your banner is displayed. Websites that
offer such programs include paypopup.com and adclicksor.com
 Pay-Per-Visitor: This method of purchasing banner advertising is based on a charge
for the number of times someone visits your site as a result of clicking on your
banner. This is a better method of purchasing banner advertising as you are only
paying for results, although expect to pay a premium.
 Pay-Per-Click: The revenue model of the Internet giant google.com has its very own
service which offers certain share of the profit that it makes by the click-through that
a website generates from its adsense codes. The revenue model is known as Google
adsense and almost every successful website uses this model to make profits. The
Google adsense ads can be seen on websites like Times of India, Moneycontrol.com,
ManagementParadise.com and a lot many other reputed websites. Google earns
more than y 90% of its revenues from ads. There are many other ad agencies like
Adbrite and Yahoo Ads.
 Branding:While CTR and cost per sale relate to direct marketing objectives, another
way of looking at banner ads is as "branding" tools. They create brand awareness,
and a brand image in the viewer's mind, whether or not the viewer clicks on the ad.
Branding is very difficult to measure, but can be very powerful.
 Monthly Marketer also offers a monthly deal to the site that has its ad and ad shows
up on a particular spot on every page of the site. Clicking the banner would redirect
you to the site/product of the marketer.
The average click through ratio on banners is just under 1%-2%, although with a well
planned and executed advertising campaign using effective banners you can increase this to
as much as 15%, but be prepared to work at it. It is a good idea to have a number of
different banner ideas so that you can carry out small test marketing campaigns with each
one until you find those that work best.

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 There are a number of key issues that must be considered when designing a successful
banner:
 It must have an attention-grabbing headline.
 It must be simple and get your point across.
 It must invoke action (i.e.: "Click here")
 It must download quickly.
 It must be placed effectively on a web site, Location, Location, Location
Any campaign is limited by the amount of advertising you can do depending on the size of
your budget. Therefore it is important that you target your market carefully so as to
maximize advertising spend on effective banner campaigns.

Rich Media Advertising:

Looking for ways to make online advertising more compelling, and hopefully thereby more
acceptable, marketers have increasingly been turning to streaming advertising. In effect
another kind of rich media advertising, streaming advertising comes in two basic forms.
First, it can either be part of a streaming audio or video program on the web. With many
people now listening to web radio or watching web broadcasts, this makes perfect sense.
After all, everyone is accustomed to getting commercials on their TV or car radio. The other
channel for streaming advertising is essentially an infomercial. Consumers can download a
streaming clip for a product or service from a marketer's website. Two new studies recently
released suggest that the streaming advertising market is going to boom now and in the
years to come. The giant ad selling company media turf uses this method for providing
content to advertisers.
B2B WEB PORTALS:

B2B is "business to business", B2B Website Portal is one emarket place for suppliers,
manufacturers, factory sellers, wholesalers, exporters to post trade leads to find importers,
buyers and buying leads. It is also one online directory for buyers and importers to find
suppliers for their products.
In a word, B2B Website Portal is one marketplace for ecommerce users to Internet
Marketing & E-commerce Promotion Online for their products and service.

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B2B Website Portal is most popular with countries with huge number of manufacturers to
export, especially in Asian countries, like China, India, and South-Korea who have a big
manufacturing sectors. One of the most important and largest B2B Website Portal is Alibaba
in China; it is one comprehensive and household b2b in the world.
In Asia, the B2B website portals are most successful; they act as one of the most effective
method of Internet Marketing & E-commerce Promotion Online for manufacturers and
ecommerce sellers to promote their large amount of products. Just for this demand or
business opportunity, there comes some famous B2B trade website portal through the
world, like alibaba, ec21, tradekey, ecplaza and so on.
All those websites are comprehensive and include a wide range of product categories and
industry sectors, almost related to every industry. They are meaningful to global trade, or
rather to manufacturers, suppliers, exporters, wholesaler, buyers, and importers. Above all,
they are preferred by small and medium companies (SMEs) begin their e-commerce solution
and website marketing.B2B Website Portal benefits supplier and purchaser, exporters and
importers, sellers and buyers.
For global buyers, they could find their ideal suppliers and manufacturers and post their
buying trade leads or threads in these B2B sites, because there are so many suppliers
available to global buyers in these ecommerce market. Meanwhile the suppliers are site's
member or user, they use every convenient internet marketing tool or ecommerce
promotion online tools to publicize their business supply and demand for partnership
negotiation further with buyers.
For global suppliers, they could advertise and promote their company and products by join
those B2B website as member. Of course, in order to gain advantages of internet marketing
and mass exposure of their products in search engine through b2b sites high pagerank, they
could join as premium member to acquire more privileges of top list in website search
results or search engine. By doing so, they could maximize inquiries from global buyers and
importers, meanwhile, drive a huge number of traffic to their e-commerce website to
expand sales.

3.4 E-COMMERCE AND ONLINE SHOPPING

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Ever imagined buying your next Car online? Or selling your old, unwanted music system to
someone sitting 1500kms away? Or doing a price comparison from dealers all over India
before buying a cell phone? If not, welcome to new era of retailing.
In today's competitive world one thing that has become scarce in our lives is - 'TIME'. Time
has become the most important commodity for working as well as non-working segment of
our society. In this age of growing popularity of shopping malls due to time and resources
constraint, sometimes it becomes difficult to physically go out. Shopping is inevitable for
everyone whether we like it or not, as shopping is done right from basic commodities to
luxury goods. Hence the new concept that enables us to do shopping at a click of a mouse is
'Online shopping'.
Online shopping can be defined as - The process of viewing, buying/selling and ordering of
goods or services done through electronic medium for instance a website, also the mode of
payment is done through electronic means with credit card or an established credit account
is known as online shopping.

Nielsen has published new statistics on the overall online shopping trends - Over 875 Million
Consumers Have Shopped Online - the Number of Internet Shoppers Up 40% in Two Years
(World) Among Internet users with Internet access using it shop, the highest percentage
shopping online is found in:

 South Korea (99%)

 UK (97%)

 Germany (97%)

 Japan (97%)

 US (94%)

The most popular and purchased items are:

 Books (41% purchased in the past three months)

 Clothing/Accessories/Shoes (36%)

 Videos / DVDs / Games (24%)

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 Airline Tickets (24%)

 Electronic Equipment (23%)

Some of the examples of online shopping portal are eBay.in, amazon.com, indiatimes.com,
shopping.rediff.com, etc. The reason of increasing popularity of online shopping is because it
is time saving and easy to use.
Online Retailing or Shopping as we may refer it to be a relatively new concept in India.
However Online Shopping has been prevalent in India since over 5 years now. With time it
has grown significantly, banking upon the increasing penetration of the Internet.

Growth of ecommerce in India:

Growth of Internet Usage has already been explained to in the stats above. This growth of
Internet Usage has undoubtedly boosted e-commerce all over the world and India too.
Electronic commerce or e-commerce which means buying and selling of products or services
over Internet or other electronic or computer networks has dramatically grown in India since
the spread of Internet. Though e-commerce in India is at a very nascent stage compared to
western world, if you compare it with the last year it has grown over a large extent. Bikky
Khosla, CEO of India’s largest business-to-business (B2B) portal Tradeindia which is
maintained and promoted by Infocom Network Ltd, recently made a statement that e-
commerce transactions in India is growing at a rate of 30-40% and in expected to reach $100
billion figure soon. Deeper penetration of Internet has broken various barriers and brought
geographically diverse markets on a common platform. E-trading not only helps cut down
costs in terms of manpower and time involved in transaction in the export-import business,
but is environment friendly too.
Credit cards transactions, Railway and Airlines have played a vital role in e-commerce
transactions in India. In near future, e-commerce is going to play a major role in multimedia,
entertainment and fashion industry. Gucci Co. an Italian iconic fashion and leather goods
label is eager to make its hold in India after growing strong in China.

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Along with e-commerce mobile-commerce is also spreading among India users, especially in
the banking sector.

3.5 HOW ONLINE SHOPPING WORKS

Diagram

Payment Modes

 Debit and Credit Cards

 Cheque/ Demand Drafts
 E-Cheque
 Cash on Delivery
 Online Money Transfer
 Mobile Payment
 Direct Deposit
 PayPal

3.5 CHALLENGES IN INTERNET MARKETING

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Competition:
Internet provides a very limited entry barrier to get started with. Hence there is a lot of
competition out there already and it’s only going to get more competitive. So as a marketer
you need to choose the right medium to market your product on the basis of the product
features. Also you need a have a sound marketing strategy and have a plan on how to
market your product as your competitors are doing it. You cannot rely completely on branch
of Internet Marketing and need to frame a marketing plan taking a combination of two or
three mediums. For e.g. for big companies who are looking for Branding, Social Media and
SEO are better, For manufacturing companies Ads, Email and b2b portals are better.
Internet Speeds and Penetration:
Though Internet has reached billions of users, the penetration is still low. It still has to catch
up with the other forms like TV, Radio etc which have a wider reach and more importantly
for many brands the internet audience might not be the right consumers or internet being
the wrong place to approach the customer.
The internet speeds in lesser developed countries are quite low upto (128kbps-1 mbps)
compared to other countries which have speed of around 16 mbps regularly. Also
technology like 3G and Wimax for high speed internet are only available in developed
countries like the US and UK. Speed is required as today sites require higher speeds for
browsing, download videos, songs, files etc
Reliability / Trust & Safety:
As a customer sometimes feels cheated and irritated by those ads as they often mis-
directed So as a marketer you should be conscious of the fact that you should post relevant
ads and do not make false promises to get ad-clicks.
Also there is an increase in number of frauds in banking transactions, shopping done by
people which leaves a feeling of mistrust amongst buyers. There is no proper mechanism or
legal structure to track such frauds and penalize them as they can be from any country.

Too technical

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Things can get real technical on the internet marketing and it’s difficult for the normal
marketer to understand all the terms and stuff on internet marketing. Therefore, he has to
hire an internet marketing expert who does all the work for him. However, there is a lack of
such individuals and there are false promises made by people who call themselves a SEO
expert Or a SMM expert. It’s very hard for an average marketer to filter good internet
practices and judge the quality of an digital marketing agency. So again the marketer/brand
can get cheated.
Requires Hard Work, Effort and Time (Maintenance)
No matter if you hire an expert or do internet marketing on your own you need to put a lot
of time and hard-work on it. It also requires a lot of maintenance and supervision as there
are constant changes and up gradations being done by search engines and social media
platforms. So you need to aware and updated about all the happening and changes in the
technical fields to be successful.
No matter how much effort you put into Internet Marketing, there is no proper successful
formula and no guarantee that you will succeed in marketing your product or increase sales
through internet marketing. Without proper knowledge and guidance one can end up
burning up loads of cash in this medium.

CHAPTER: 4

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 Data Analysis &
Interpretation

1.7 Methods of analysis

1.8 Data collections
1.9 Tools of representation
1.10 Analysis and interpretation

3.1 METHODS OF ANALYSIS

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As in Research methodology two methods were taken:-

 Observation method
 Survey method

In observation method, data are collected by direct observation, no talk’s takes place. In
survey method information is collected directly from individual through questionnaire
technique.

In order to analyse the data collected from questionnaire various statistical tools were used
like the percentage, charts were used.

3.2 DATA COLLECTION

 Secondary data: Online reports related to advertising

 Primary data: Questionnaire, Personal Interview, Interview with Marketing
Professional

3.3 TOOLS OF REPRESENTATION

The Researcher represents the data analysis using as a tools like Data Table’s, Pie
Chart and Bar chart.

3.4 ANALYSIS AND INTERPRETATION

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Respondents Age Group

Option Respondents Percentage

upto 18 20 10
18-25 120 60
25-30 50 25
30-40 10 5
40+ 0 0

Total 200 100

As it can be observed from the given table, the major portion of sample (60 %) is
constituted of people in the age group between 18-25 years, and also a portion of sample
i.e. (25 %) of respondent are in the age group between 25-30 years, (10%) of the respondent
are in the age group below 18 years, and the rest (10%) of the respondent are in the age
group of above 30 years. This states that the advertisement should target more of the
Young citizens to increase the awareness of their products or services which in turn
increases their sales revenue.

Attitude towards Advertisement

Option Respondents Percentage

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 Informative 71 35.5
Entertainment 51 25.5
Creates Awareness 62 31
Irritating 5 2.5
Annoying 4 2
Waste of time 7 3.5

Total 200 100

One can clearly make out that consumers perceive advertisements as a source of
information and awareness, be it general or towards TV commercials.
Not many people find advertisements to be irritating, annoying or waste of time. This clearly
shows a positive attitude toward them and hence is a good indication for marketers.

Attitude towards TV/Radio Advertisement

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 Option Respondents Percentage

Informative 60 30
Entertainment 50 25
Creates Awareness 38 19
Irritating 27 13.5
Annoying 12 6
Waste of time 13 6.5

Total 200 100

For television commercials, around 70% of consumers had a positive perception towards
advertising on TV. This clearly shows a positive attitude toward them and hence is a good
indication for marketers.

Respondents Internet Usage

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 Option Respondents Percentage

once a week 7 3.5

2-3 days a week 20 10
1-2 hrs a day 76 38
More than 3 hrs a day 97 48.5
Not at all 0 0

Total 200 100

From the graph it can be seen that most of the people i.e. 48% people using the internet
more than 3 hours and 38 % people uses 1-2 hrs a day. So we can say that most of the
people are internet savy.

Online Marketing Awareness

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 Option Respondents Percentage

Yes 192 96
No 8 4

Total 200 100

From the above analysis it is interpreted that Most of the people (i.e. 96%) are aware about
online marketing and only few people are there 4% those who are not aware about online
marketing.

Responding to Online Advts.

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 Option Respondents Percentage

Never 32 16
Sometimes 53 26.5
Depends on add 80 40
Often 35 17.5
Every time 0 0

Total 200 100

From the above analysis it is interpreted that most of the people prefer to (i.e. 40%)
responds towards online advt depending on the advt. So marketer should focus on the
advertisement quality and preference of customer. And 26 % people responds to online
advt sometimes, 18% people responds often, 16% people never responds to online advt and
no people are there those who responds to online advt every time.

Attitude towards online advertisement

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 Option Respondents Percentage

Informative 76 38
Entertainment 41 20.5
Creates Awareness 56 28
Irritating 14 7
Annoying 8 4
Waste of time 5 2.5

Total 200 97.5

From the above analysis it is interpreted that consumers perceive online advertisements as
an Entertainment, source of information and awareness. Not many people find
advertisements to be irritating, annoying or waste of time. This clearly shows a positive
attitude toward them and hence is a good indication for marketers.

Attitude towards online Websites

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Option Respondents Total
Strongly Neutral Disagree Strongly
Agree Agree Disagree

Good Design of 69 67 34 20 10 200

website
Language Not 0 0 5 89 106 200
Understandable
Too much Jargon 0 15 20 69 96 200
Used
Easy To Navigate 81 65 43 11 0 200
Information 77 63 49 9 2 200
available

From the above analysis it is interpreted that when people visited websites most of the
people have positive attitude towards design of the website, about the website language
almost all people understand the language. But few peoples have agreed that too much of
jargons used in websites. So marketer should concentrate on the jargons used in the
websites. And almost many people found websites are full of information, it’s a positive sign
for the marketer.

Purchase through online

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Option Respondents Percentage

Yes 142 71
No 58 29

Total 200 100

Form the above analysis it is interpreted that 71% people purchase through
online but still 29% people are there those who are not purchasing through
online. So marketer should focus more on quality of advt and understand the
requirements of customer.

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 CHAPTER: 5

Summary and Conclusion

3.12 Major findings

3.13 Recommendations
3.14 Conclusion

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3.5 MAJOR FINDINGS

This study was conducted with a view to know that whether Online Marketing is effective. It
has been observed that there are many factors, which effect this statement of Problem like
Occupation, Age, life style and social factor. For this purpose a structured questionnaire had
been designed and analyzed. After analyzing the data the following factors have been found
out as major causes for the Online Marketing Effectiveness:-

 Most of the internet users are in the age group of 18-25 years with 60% which
indicates that youngsters are using more internet than that of the other community.
 Most of the peoples are internet savvy as almost 80% people are using internet on
regular basis.
 Most of the people find online advertisement is informative, it creates awareness
and entertainment.
 Almost all people aware about the online marketing.
 Most of the student community use internet more than that of the other occupation
as it is a means of entertainment so the advertiser should target the student
community to influence their effectiveness.
 Compared to that of the students self-employed business people browse more for
purchasing products and students browse more for information and entertainment.
 Almost 40% of the people who browse the Net checks for online Ads while browsing
only if they are interesting and informative.
 While browsing the websites most of the people have positive attitude towards
website visibility and design.
 Internet with such high penetration still 29% of the respondents has not purchased
any products or services online.

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3.6 RECOMMENDATIONS

 Go International with multiple language:

Offer your web site in multiple languages. Like many sites come in Dutch, Spanish,
Slovene, French, Czech, German, Russian, and Italian. Translation service on websites
is also good which will help retain customers.
 Use of multi-media:
As we have seen the potential for banner and Internet ads, informative and creative
ads are also preferred therefore hot new designs and innovative sales concepts
should be developed. If a little radio-like audio message that plays from your site
upon a click of mouse or a T.V-mini commercial that plays at your banner on click of
a mouse, it will be much more effective and interesting.
 Free offers
The word free is just as effective in advertising online as it is offline. By sponsoring a
freebie, a simple name submission drawing can also get viewers to go through ads in
the process they become aware of the advertisement.
 Sponsor a contest
People love to win ANYTHING! Offer your product or service as a prize. When a
winner is selected, their name web address and a link to the site can be published.
Adding a reciprocal link is a professional way to say thank you and is of no cost to the
advertiser.
 Web site testimonials
Build trust or confidence in your online business by using testimonials. A direct quote
with the permission of the customer is a nice touch. Listing a name and e-mail
address it acts as a reference that is easy and quick. Keep the testimonials to one or
two sentences and keep it simple.
 Target Audience
Keep your target audience in mind. Business people aren't going to have the time or
inclination to participate in game-type ads. On the other hand, teenagers love them.
If your target group is younger people, games might be the thing for you. Design
your ad to meet the preferences of your target customer.

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  Include statistics
When you make a sales claim, back it up with information, including statistics. You
might say, "Our saucepans have a non-stick coating that's guaranteed for life. In
actual, in-home testing, food did not stick to our saucepans 98.3% of the time."
 Provide content on your site
As you surf the Web take note of information that supports your advertising claims.
Surveys, research, reports, testimonials, etc. can all provide valuable information
that could move a customer from the point-of decision to the point- of-purchase.
 Offer a free report
Give away information free with a purchase or subscription to your newsletter. Since
information is what surfers are looking to receive, it will work as a big incentive.

3.7 CONCLUSION

Is marketing on the Internet a viable option? I have looked at this question in terms
of effectiveness, profitability, and marketing methods. Internet Marketing offers increased
awareness of companies, an easy method to distribute information, advanced methods of
targeting consumers, an immediate and direct line to the customers, and reduced costs in
performing these tasks. The only negative aspect is that consumers have to conquer their
fears of the Internet - the fear that ordering through an on-line advertisement will get lost in
the void of cyberspace. Fears always come with new technology, but it does not take long
for people to adjust. As people get more accustomed to finding their product information
on the Web, more and more readers will actively seek out Internet advertising sites.
.

ANNEXTURE

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BIBLIOGRAPHY
Books and Journals:-

 DigiMarketing – The Essential Guide to New Media & Digital Marketing, - by

Kent Wertime, Ian Fenwick, John Wiley & Sons(Asia) Pte. Ltd., 2008 publication.
 Kotler P, Marketing Management, Tata McGraw Hill, 5th edition 2013 publication
 Principles of Internet Marketing- by Ward Hanson
 Principals of Advertising and IMC – by Tom Dunkan, Tata McGraw-Hill/Irwin;
2nd edition (January 23, 2004)

Webliography:-

 http://www.wikipediaorg/
 http://www.wisegeek.com/
 http://www.geert-hofstede.com/
 http://www.truckads.com/
 http://www.afaqs.com/
 http://www.buzzmachine.com/archives/cat_dell.html

SAMPLE OF QUESTIONNAIRE

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 Name: __________________________________________________________

Age Group (yrs): up to 18 18 to 25 25 to 30 30 to 40 40 +

Gender: Male Female

1. Do you like Advertisements?

Yes No

Informative Irritating
Entertaining Annoying
Creates awareness Waste of time

2. What you feel about the TV/Radio commercials during commercial

break?
Informative Irritating
Entertaining Annoying
Creates awareness Waste of time

3. How often do you use internet?

Once a week 1 or 2 hrs a day Not at all

2 to 3 days a week More than 3 hrs

4. Are you aware of Online Marketing?

Yes No

5. Do you see/check online ads/mails when you surf the internet?

Never sometimes depends on ad often every time

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6. Today, companies are using internet to reach and communicate with
you as a customer. How do you feel about this way of communication
through internet?

Informative Irritating
Entertaining Annoying
Creates awareness Waste of time

7. Which is the last online ad you remember? Which brand was it?

8. What mode of advertising influences you to buy/suggest any product?

Magazines and newspaper

Friends and relatives

TV Commercial

Online advertisements

Social Media – Blogs, forums, Social Networking sites

9. To what extent do you agree/disagree with the following statements

about the internet websites?

Strongly Agree Neutral Disagree Strongly

Agree Disagree
The overall design of the websites are
welcoming
The language used is difficult to understand
There is too much jargon used
It is easy to navigate around the website
I was able to find the information that I
Needed

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10. Name any five online ads you remember lately

1. _______________________________
2. _______________________________
3. _______________________________
4. _______________________________
5. _______________________________

11. Do you think that the face of advertising is transforming in terms of

technological and Cultural impact?

Yes No

12. Does the Online Ads interfere in your work while browsing?

Yes No

13. Have you made any purchases after seeing these Ads?

Yes No

14. How you think the online Ads can be improved?