Rural marketing of consumer products in India

Project Abstract:
Rural India has become the hot spot for the corporate firms in the recent
times as urban markets are saturated with some many different
categories of consumer products and also because of the fact that rural
incomes are increasing. Marketing executives are constantly exploring the
rural markets as they find rural markets as an ideal opportunity to expand
their business plans especially at this phase of stiff competition where
companies are facing tough times in market competition.
This study provides the significant information on rural marketing process
carried out by consumer durable and non-durable companies in order to
market their products. This study even identifies the actual reasons for
the failure of durable and non-durable companies while marketing their
products.
This study identifies the significant problems faced by companies in
marketing their products to rural areas. This study even suggests
marketing strategies and methods to be followed in order to overcome
those problems.
The quantitative research method is used in order to gather the
information on rural marketing process from articles, case studies, web
documents and journals that are already been reviewed by scholars. By
using qualitative research method researcher conducted survey in rural
areas of India and gathered the opinions of rural customers and
companies on failure of consumer products in rural areas.

Table of contents
Chapter 1
1.1 Aim
1.2 Objectives
1.3 Introduction to the Marketing
Chapter 2
Literature Review

2.1 Overview on Indian Rural Markets

2.2 Rural Marketing and State of Art
2.3 Rural Market is indeed important
2.4 Rural marketing- Exploring New Possibilities in Rural India
2.5 Marketing approaches of companies in Urban Areas
2.5.1 Overview of Social Networking Sites
2.5.2 SWOT Analysis of Social Networking Sites
2.5.3 Online Social Marketing
2.6 Role of Social Marketing in Brand Awareness
2.7 Success of Social Networking Sites
2.8 Success of Popular Social Networking Sites
2.9 Marketing approaches of companies in Rural Areas
2.9.1 Communication and change of perception
2.9.2 Proper communication in local languages
2.9.3 Target changing perception
2.9.4 Understanding social and cultural values
2.9.5 Fulfilling customers needs
2.9.6 Product promotion through celebrities
2.9.7 Indian association
2.9.8 Promotion through Indian sports teams
2.9.9 Communicating about Indians
2.9.10 Products for rural locations
2.9.11 Using Indian names
2.9.12 Indian brands
2.9.13 Media communication
2.10 Role of marketing strategies product success
2.11 Integrated marketing communication strategy
Chapter 3

Research Methodology
3.1 Introduction to Methodology
3.2 Classification of research methods
3.2.1 Quantitative research method
3.2.2 Qualitative research methodology
3.3 Use of both methods
3.4 Research Design
3.5 Research Strategies
3.6 Experimental
3.7 The surveys
3.8 The grounded theory
3.9 Research Conduct
3.10 The Reliability
3.11 The validation
3.12 Ethical issues
Chapter 4
Results and Analysis
Chapter 5
Conclusion, Future work and recommendations
5.1 Conclusion
5.2 Limitations
5.3 Recommendations
Chapter 6
References

Aim & Objectives Rural marketing of consumer products in India

Chapter 1

1.1 Aim
The main aim of this research is to identify the different problems faced
by the companies while marketing their consumer products in rural areas
and to propose different strategies and methods to overcome those
problems.
1.2 Objectives
The main objectives of this research are

To analyze the information on overview of rural marketing process

To evaluate the information on failure reasons of consumer products

in rural areas

To identify the actual problems faced by consumer durable and nondurable companies in marketing their products in rural areas

To study the marketing differences of company in approaching rural

customers and urban customers

To identify consumer behavior of rural customers towards company

products

To study different strategies and methods to the companies in order

to overcome problems related to rural marketing process

1.3 Introduction to the Marketing

There is a technological advancement in each and every sphere in the
world. It can be the social, political, economical or cultural aspects. With
these advancements, there are a number of changes that are being seen
in a very drastic way. These are in the form of the quantity of the goods
that are produced, the reduction in the costs, the higher expectations for
the profits that are being expected and so on.
There is a lot of importance that is being given to tap the unexplored
markets in the world. The world has become a global village with regard
to the computing and the communication technology. This is otherwise
called as the Information technology. There is another cause that has
further increased the competition levels in the market.
They would be the liberalization in the case of the restrictions that are
normally applied to the trades. It is important to note that the global
markets are saturated, which is leading to the designing of the
companies marketing strategies that are already in existence. They are
also forced to look into the marketing that they are doing in the rural
areas.
This would greatly help them to tap the rural market, through which they
have chances of spreading their business in a number of ways. The rural
scenario has now changed and they are well aware of all the things that
are existent. They demand standardized goods that are of good quality.

They also seek these goods at a reduced price and from reliable sources.
This is the reason why the rural markets are now becoming tougher to be
handled and are becoming very competitive with each passing day. In
case of the rural markets, the focus is laid down not only on the corporate
houses, there are other policy makers and the planners too who have to
be considered. There are the students, researchers, the teachers and
others who have to be considered too.
The art of marketing is the one that solely decides the way the product is
being sold in the market. This is the way it is perceived. But it is actually
a very complex process by which the whole thing happens. There are
market driven things that are to be considered that include the production
ad the consumption of these goods, the transportation charges that are
involved, the logistics, the packaging, the storage of these goods,
distribution and many more.
There is famous Kottler, according to whom it is a social process in which
the individuals and the groups get what they are seeking by the way of
creating it, the offers that are made and the free exchange of the
products that can happen. There is the American Marketing Association
(1995) which stated that the process is a very complex one and it
includes the planning and execution of the conception along with the
pricing, promotion that would be needed and the distribution of these
goods that are given in exchange to the goods that satisfy him
adequately.
It could be in the common view of the individual and the organization as
well. They also said that this complex process is what the marketing
process is, which is based upon a number of things that are the goals and
the abilities of the producers.
This way the producers give a marketing mix which is capable of meeting
the demands of the consumers. This has to be done within the limits of
the society too. There is another way to look at it. This would be based
upon the satisfaction level of the consumers, which would be based on the
needs and the wants of the consumers. One would have to look into how
to be able to achieve this. Whatever be the motive of the producers, there
are always financial profits and the social benefits too that they are
looking for.
According to what Drucker has to say (1958, p. 252), there is no
purchasing power that is created with these marketing strategies. There
are ways of converting the latent demand into the effective one, and
there are ways to channelize the purchasing power in the direction that
they would want to which would lead to a higher level in the economic
activity.
It has to be noted that the changes that are seen in the economic activity
cannot happen without the changes that have to be made in the methods

that are involved in the production process and the distribution that is
seen in the population or the income levels.
This implies that there is a direct relation that is existent in the marketing
procedures and also the economic activity. Kotler (1958) was able to
prove that marketing is the reason for economic growth in the case of the
underdeveloped countries. But the definition of the rural marketing would
be a tough one to give.
This concept itself is used in a number of ways. They are actually evolved
controversial ideas in the forums that have discussed about it. Though
there are precise definition too that are given in this regard, there are
changes that one would always want to make with it.

Overview on Indian Rural Markets

Chapter 2
Literature Review
Overview on Indian Rural Markets
Today, this idea of business expansion in rural locations is taken more
seriously even by the corporate firms and is a subject of discussion and
strategy. Godrej, having a range of business from personal stuff to real
estate business and whose chairman, Adi Godrej, does not hesitate to
reveal that todays fast changing world does of globalization does not
distinguish the gap between rural and urban lifestyle. People are smart
and quality conscious irrespective of their place of living and want quality
products and services from the companies.
A survey by the National Council for Applied Economic Research (NCAER)
confirms that the rural income levels are matching that f the urban level
and quality of life is improving at a very faster pace in the rural areas.
With the availability of a variety of products in any domain, buyers are
more inclined towards quality and feature rich products rather than just
paying and settling down for anything. Now the average rural income has
gone up to 63% to 64% in 2001-2002, and in 2004-2005 it almost
touched 66%.
The rural middle class is on a rapid pace of growth with 12% as compared
to its urban counterpart with 13% growth. Higher rural incomes are
nothing but a whole new world of opportunities to the business firms. As
far as sales of automobiles is concerned, rural India automobile sales
account to $ 1.7 billion which includes sales of cars, scooters, bikes etc.
It is no wonder that MNCs are taking high interest in rural India despite of
the fact that international markets are facing stiff competition. Beverage

giant Coke, accounts to 34% of rural growth as compared to just 24% of

urban growth. Not only Coke but its biggest rival PepsiCo also showed
great interest in the approach and took a wider approach to business.
Rural Marketing and State of Art

There is always confusion and this leads to an unclear understanding

about the whole concept. Though rural marketing is a very fashionable
subject, there are reasons as to why it has to be taken as a very serious
topic of discussion in the case of the Indian scenario. There is a greater
importance to it in India than in many other countries of the world. In
India, there is the opening up of the domestic economy to all the other
completion from the external sources that it can take. There is the
increased purchasing power in the rural areas that have to be noted in the
recent past. Thus, it calls for a better and clearer understanding about the
subject as a whole.
It can be rightly said that it would be a process of developing, promoting,
pricing and distributing of the goods in the rural areas, which finally leads
to the rural specific market, and then to the exchange of goods in the
rural and the urban markets. This should be satisfactory to both the
parties. This was earlier used as an umbrella term in order to describe the
commercial transactions that are happening in the rural areas. But it
started gaining more importance in the 1990s and that is when it got the
term as rural marketing. There was increasing trend in the growth that
was being seen in the industrial sector in India. There was more strength
and more maturity that was being seen.
The contribution to the GNP was found to be increased greatly. There was
a new service sector that had come into play with the advent of these
industrial changes that India started seeing. This was a good thing
happening to the country as such. There were a number of development
programs that were coming up both from the central government and the
state government side. These were the main reasons behind all the
socioeconomic progress that was being made in the country.
Further, the economic reforms were seen to be rising at the same time.
This was the time when there was an increase in the competition level
that was being seen in the markets. Thus the rural market had come to
grow in a very steady manner. There were a number of consumables and
the other items that were being required in more qualities than in the
normal cases. There are certain factors that have been identified for the
market boom that was seen in the case of the rural markets. They include
the following:

There was a great increase in the population levels in the rural

areas. This led to more demand in these places. There was a rural
population of just 43.80 crores in the year 1971. This has gone up to
52.50 crores in 1981, and had further increased to 72 crores in 1994.

There was prosperity in the agricultural sector. This was due to the
rural incomes that had seen an increase in this period.

There was a greater level of investment that was seen from the
government that was being made. This way, there was a great deal
spent on the rural development.

There was a good communication system that started coming into

the existence. There were a great number of people who could easily
communicate with the people I the urban areas. This made the
transportation, and other issues to be taken care of in a better way
than before.

There were increased levels of literacy that started coming into the
fore. This lead to the people wanting to lead more sophisticated lives
than they had been earlier living in.

There was also the increased level of the foreign goods that had
come in to the existence and they were easily made available to the
rural market too.

The changes that were made in the tenure system of the lands were
another reason for the change in the ownership pattern that was
earlier existent. This is one reason why there were changes in the
purchasing patterns that were seen.

In spite of all these things that are happening, there are other things are
still to be thought about. There are many weaknesses that the Indian
scenario has to compete with. There are the weaknesses as put forth by
Jha on this topic. They would be as follows:

Talking in terms of the people who are participating in the whole

process, there are a number of people who are actually not involved or
exclude from the privilege of using these rural markets. They include
the people who are from the rural poor.

When talking in terms of the products that are in use, they are
usually for the tangible goods and there are certain basic needs that
are actually ignored. There are products like health, drinking water,
education, housing and other similar ones that are being ignored. It is
only those goods that are economically giving gains are taken care of
in the rural market and not the others.

There are not many criteria that are talked up as for the
development of the market centers. There are the roles of the various
parties involved to be considered which a much ignored side of the
market is.

The norms of the behavior liabilities of the parties are something

that has not been talked about at all. This is with regard to the various
parties that are involved in the process. It is not done even with
regard to the conventional goods.

When we talk about the outcomes, the marketing literature is one of

the most neglected areas. This is seen at a greater rate in the rural
market.

Through all these, what is trying to be told is that there was important
given only to th9ose areas with which the rural people are involved in, like
the tractors and the fertilizers. This would actually be totally opposite to
the urban settings where there are a number of things that are actually
happening and are being taken care of. There are modern inputs and
there are highly costly inputs that are being made use of in the urban
market. They make more surpluses for the urban consumers, though they
are only ten percent of the rural consumers.
The term rural marketing has different meanings that are being given by
each of the authors. This way there are a number of interpretations that
one would want to know of. There is a set of concepts that have come
from the US, which is made solely on the experiences that were seen in
the Latin American regions, the African and the Asian countries. They tell
us a lot about the rural marketing in detail.
It is true that that India does live in her villages. There are a lot of
consumers who are present in the villages than in the cities. There are
profitable ways of farming and there are better options to market your
products in order to make things successful. There are a number of
potential consumers that you can find in these villages. They would be in
need of the consumables, the durable and also the Fast Moving Consumer
Goods. The size of the market and the profitability would depend on the
level of development that has been made by the village in the agricultural
sector. There are other things too that have to be considered.
It would include the development of the facilities that are present in the
villages. There are a number of things that the villagers want to consume.
It ranges from the soaps that are branded to the drinks like Pepsi that is
branded too. They would also want to have the tractors and the other
goods that would help them in agriculture. The producers still have a feel
that it is only the urban areas that would give those profits and not the
rural areas. It is for them to understand that it is the rural market more
than the urban one that is more profitable to them.
It is very interesting to see that there is a steady increase in the rural
market share. There were a number of goods that were earlier sold less
than 20 percent in the rural markets. These numbers have changed now
and there are more of them being sold out. They are absorbed in a better
way than they used to be earlier. There is a change in the demand pattern
too in the rural areas. The mega marketers have now understood that it is
important for them to reach the rural market. This would be the road to
greater success.
This is another reason why they have greater levels of profits that are
coming in to the huge producers who are reaching the rural markets.

There are trends that are indicating that there are the rural markets that
are coming up in a big way. They are the ones that make the big
producers to think twice before ignoring them. It is actually growing in a
faster rate than the urban market.
The rural market is found to grow at twice the rate of the urban ones. The
mains are the kitchen gadgets that are being more in demand. They
include the refrigerators, the pressure cookers, and the grinders and so
on. This is because they are all now having middle incomes, so that they
can afford all the goods to make their lives more comfortable in many
ways. There are lower middle income groups found in the rural areas than
in the case of the urban areas.
This is why the companies should try to target the rural market more in
order to gain more profits. This is the reason why the rural India is
expected to be growing double with respect to the markets. There was a
study that was conducted with regard to the ownership trends that were
seen with the various goods. This was found to divide the durables in to
three categories which would be:

The necessary goods like the transistors, the bicycle, and the
watches and so on.

The emerging goods like the television, the recorders, and more.

The lifestyle products which include the refrigerators, and more.

The producers are seen to be more dependent on the rural markets for
the first two cases, while there are other things in the third category
which are expected to be growing much more and bringing in profits to
the producers.
There is a huge population that is actually involved in the rural market.
There is 12 percent of the world population that is actually involved juts in
the rural India. There are more than 126 million houses that are to be
taken into consideration. The purchasing power in the rural market has
gone up. It is somewhere between 30 and 50 percent. This is supposed to
be increasing much more in the next few years. There is immense
competition that is being faced in this market. There is a huge amount
that is being spent in the urban market for the marketing procedures.
Though this is the case, there is the rural market that is in much more of
a demand than in the urban areas. This is one reason why the producers
are having to think more why having to put in more money for the urban
marketing than in the case of the rural scenario. This would be one big
thing that the companies would have to think about before investing huge
sums in the urban markets. They would as well prefer to go to the rural
market when it is more profitable.
Television is one of those things that have made a great difference in the
market scenario. The reach of the markets through the advertisements is
the best way to reach the rural markets. This would be an easier way for

the producers to deal with both the rural and the urban markets as well.
This is something that has been very successful in changing the way that
the people in the rural areas see things. There are changes in the
perceptions that they had. There is change that is happening in the way
they want to lead their lives.
When they come to know that they too can make their lives simples with
all the things that are being shown on the television, they are certainly
excited about it and want to try them out, when they know it is affordable
to them. This is a good trend to be seen. It not only helps the producers,
but it also helps in the growth of the country. Keeping this in the mind
there are the products that are being tailor made for these populations.
There are the rural population vehicles that have come up. There are the
watches that have come up from Titan in order to cater to the needs of
the rural, with lower prices. This is how much the rural market can
influence the producers.
Rural Market is indeed important

The rural market is booming in terms of opportunities which they give to

the corporate sector. In total consumption of Fast Moving Consumer
Goods, Rural India has 55% share in it. From the year 1993 to 1998,
Rural India had a growth of near about 14% per annum.
As per the data equipped by (NCAER) National Council for Applied
Economic Research showed a crystal clear rural market boom. It has
been clarified that rural growth has certainly outrun the urban by the chief
economist of NCAER. Therefore, occupancy in the rural market has
become a necessity. If a company wants to survive then it must go rural.
Research by NCAER in 1998-1999 has shown:
(i) Rural markets for group I durables (less than Rs.1000: items, such as
bicycles, pressure cookers, transistors, wrist watches and many more);
(II) for group II durables (Rs. 1001 to Rs. 6000: items, such as cassette
recorders, mixers, sewing machines, B&W TVs) will beat the urban market
by 2001-2002; (iii) Rural markets for group III durables (Starting from
Rs. 6001 or higher: items, such as washing machines, two-wheelers,
refrigerators, TVs) will be quiet smaller than urban market in 2006-2007;
and clearly displayed that (iv) on large base group I & II, growth rates of
rural market are much higher than urban markets. Also, the NCAER has
shown that is now seeing an abrupt shift towards rural households.
It has been predicted that the lower income class will come down to 20%
in 2006-07 from 60% in 1994-95. On the other hand, the higher class will
see an increment. The rural economy has triggered. The food grain
production has been boosted by about 1980 to 1999 along with the
procurement prices. This shows and implies the growth of rural demand
for the goods and prosperity. The rural FMCG (Fast Moving consumer
Goods) market will also boom as per the NCAER data.

Some great facts about the rural market:

In India, the number of supermarkets (42,000) has exceeded the

number of retail stores (35000) in the United States.

In the year 2001-2002, LIC sold 55% of its policies in the rural
India.

50% of BSNL mobile phone connections are in rural India.

Around 20 million people has registered with rediffmail and out of

those, 60% belong to small towns.

More than 50% of one Lac who have made online shopping on
Rediff are from rural India.

The (KCC) Kisan Credit Cars(24 Million) issued in rural India has
certainly exceeded the Number of Debit plus credit cards (17.7 Million)
issued in Urban areas.

The number of higher and middle income families (Earning Rs.

70,000+ annually) in rural India (21.7 Million) and Urban India (24.2
Million)are almost same.

The electricity consumed by the agricultural department has clearly

showed a steep increase of 11.6% of total consumption from 17.6% in
1980-81 to 29.2% in 1999-00. In the same course of time, industry
share faced a drop of 23.6% from 58.4% to 34.8%.

Rural marketing- Exploring New Possibilities in Rural India

Any market requires consumers with spending power. Home to nearly

seventy percent of its 1.1 billion population, India's 0.65 million villages
are a veritable treasure trove for any company worth its name. With
economic recession affecting the global economy, many companies have
started scouting for new markets offering growth potential and India's
untapped rural market has captured the attention of many companies
domestic and foreign. Starting with the introduction of economic reforms
in 1991, there has been a tremendous change in the lifestyle of the rural
Indian. Rural marketing would be the buzzword in marketing circles in the
future.
The 700 million rural population with their diverse desires, aspirations and
needs present a formidable challenge to any marketer who would like to
get a share of the rural Indian market. People who formulate rural Indian
marketing strategy should have a thorough knowledge and understanding
of the divergent tastes of various people in different geographic locations
of the country. Companies would have to work out different tactics and
strategies to attract the rural Indian customer. The advent of technology
and government's thrust on rural areas in the last decade has resulted in
a dramatic change in the social fabric and economic conditions of Indian
villages.

The advent of liberalization, opening up of the telecommunication sector,

allocation of Rs.600 billion for laying roads to connect 190,000 villages,
agricultural reforms in the last decade, NREGS, easy access to credit,
insurance coverage for crops and credit cards to farmers have all boosted
the rural economy. This has augmented the income levels of the rural
Indians that is reflecting in the increased consumption rate. Spending
pattern of the rural Indian has undergone a tremendous change in the
last decade.
In recent times it has become a rage among companies to market their
products in rural areas. However, rural marketing is not just offering
goods and services for sale in the villages. Companies should develop,
promote, price and distribute products tailored to meet the needs of rural
Indian men and women. This involves a subtle understanding of the rural
Indian psyche. It will then result in flow of goods and services between
both urban and rural markets leading to fulfillment of consumer needs
and also achievement of business objectives.
More often than not, companies tend to mistake rural marketing for
agriculture marketing while there exists a subtle difference between the
two. Rural marketing is the offering of processed products and services
specific to rural consumers while agriculture marketing is the marketing of
rural produce to the city dwellers and industrial customers. Approximately
66% of India's population resides in the villages and contributes 33% of
India's GDP. This is what captivates the attention of business
organizations.
As per the National Council of Applied Economic Research ( NCAER), India
has the most potential rural market in the world. One fact reveals the
power of the rural Indian market there are 47,000 haats ( rural Indian
equivalent of a super market) in rural India compared to the 35,000
super markets in USA. Rural India contributes to 53% of the total FMCG
sales and 59% of consumer durable sales like television sets,
refrigerators, mobile phones etc.
The future sustenance of the companies will depend on the improved
connectivity between villages and availability of economic opportunities.
The number of low and middle income households in rural India is twice
that of urban areas. High income households in the urban areas are 1.5
times more than that of rural areas. The middle and high income
households in urban India are expected to grow by approximately 30% as
per a study done by NCAER. The middle and high income households in
rural India are expected to register definite growth in the future.
Earmarking of Rs.300 billion for the NREGS in FY 2009 worked wonders
for rural India. It provided year round employment to about 4470 million
rural Indian families and created 2.15 billion man days during the past
three years. This huge infusion of government funds into the rural areas
has led to a lot of companies focusing on the rural market. 12 lakh of the

27 lakh projects that have been taken up under the aegis of the NREGS
have been completed during the last three years and this has led to
increase in income levels of the rural households. NREGS has also instilled
confidence among the rural masses. Payment for work done in NREGS is
credited to the individual's back account.
Opening of bank accounts has boosted the self-esteem and confidence
levels of the rural Indians. They are now saving money and also opting for
life insurance and health insurance products. In the last decade, there has
been a huge inflow of private and government funds in to the rural areas
and this has resulted in economic prosperity. Therefore, the number of
middle and high income households in rural India would be relatively
higher than in urban areas.
The advent of modern means of communication and transport has bridged
the gap between rural and urban India to a great extent. Mobile phones,
satellite television, easy access to Internet, improved road & rail
connectivity has led to increased interaction between urban and rural
masses. It has been noticed that the desire to lead a sophisticated life is
increasing with the rising literacy rates in rural India. Agricultural reforms
and change in the land ownership pattern has resulted in considerable
change in the spending pattern of the rural Indian population.
Increasing incomes, improved infrastructure and huge population has
made rural India a potential market offering huge benefits. Some of the
interesting facts that provide an insight into the huge untapped potential
of the rural Indian market are:

Life Insurance Corporation of India (LIC) is India's largest life

insurance company. 55% of its policies were sold in rural India.

18 million is the approximate number of debit cards and credit cards

issued in urban India while 24 million Kisan Credit Cards have been
issued to farmers in rural areas. Rs.520 billion is the amount
sanctioned for these credit cards.

Half of BSNL mobile phone connections are in rural India.

The number of households with annual income exceeding

Rs.70,000/- is almost the same in rural and urban India.

Half of the people who transact on Rediff.com online shopping site

are from small towns and rural areas. More than half of the people
who have signed up for Rediffmail are from non urban areas.

Mobile banking will reduce establishment costs and other expanses.

It will enable banks to increase their reach, expand customer base and
make banking much more feasible. Though mobile banking is
registering impressive growth in urban areas recently, it is still in a
nascent stage in the rural areas. If broadband penetration improves,
mobile banking is set to register an impressive growth and is expected
to be worth more than 500 billion dollars by 2011. As per an

Associated Chambers of commerce and industry report, the individual

income levels in rural areas is expected to double in three years.
Marketing approaches of companies in Urban Areas

Marketing approaches of companies in Urban Areas

In order to market the products in rural areas companies use different
types of internet marketing options such as follows:
Overview of Social Networking Sites
According to Dwyer et al (2007), SNS stands for social networking sites
that offer communications between users from mobiles and PCs. Social
networking sites embrace different types of online communities which
distributes information individual activities. Usually, there are 650 social
networking sites over the world and among them few are admired and
widely used by users. Famous social networking sites are Twitter,
MySpace, Facebook, Orkut, MSN and YouTube etc.
In views of Boyd (2004) social networking sites are used for different
purposes to perform chatting, information sharing, making friends,
personal and professional communications and product marketing etc.
Users involved in social networks will allocate information and experiences
with other users by using social networking sites.
Steeler (2008) stated that entities using social networking sites belong to
different groups based on the nature of information used and pooled
within the social networks.
Leading Socialisers:
Individuals using social networking sites to make friends in order to abuse
other users belong to this group.
Attention Seekers:
The entities using social networking sites to alter the information and
photos of other users belong to attention seekers category.
Followers:
The individuals using social networking sites in order to pursue their
friends and companies fall under this category.
Functional users:
Distinct user using social networking site for specific purpose are known
as functional users.

Focused Users:
Client using social networking sites for official and business purpose
belong to this category.
SWOT Analysis of Social Networking Sites
Zarrella D (2010) stated that social networking sites have equal
strengths, weaknesses, opportunities and threats that are explained in
detail as follows:
Strengths:

Good market command and access with massive number of community

people

Broad range of communications and information contribution

Face to Face contacts by straight communications

Cost effective process with high media exposure

Good demand of online markets

High publicity with popular member login

Free of cost and easy mechanism

Enormous network contacts

Weaknesses:

Lack of excellent isolation and security options

Low retention rate

Alien and unwanted abuses

High possibility of harassments

Online scams and threats

Unavailability of authentication processes

Problems related to health

Erroneous information directions

Opportunities:

Online employment opportunities

Association edifice among consumers and firms

Endorsements and trials

Vast environmental marketplace

Employment prospects to individuals

Brand Awareness

Constant interactions

Wide range of applications, games and news

Information processing through search engines

Professional online marketing tool

Enhanced opportunities to market development

Threats:

Offensive privacy and security options

Competitor upshots

Incorrect campaign

Attacker abuses

Hazardous messages from surplus users

Reduction in market share

Online Social Marketing

Online social marketing process includes different types of online
marketing resources such as follows:
Search Engine Campaign
These days, internet marketing process is playing key role in individual
lives and many users are depending on internet for different purposes
especially on search engines in order to find appropriate product
according to their preferences.
Text Messages through Mobile phones
Along with internet mobile phones are widely used by many users over
the world. The text messages forwarded from mobile phones will spread
fast when compared with other devices. Customers can send feedback to
their friends on the products and goods purchased recently that directly
amplifies the awareness of particular company brand.
Role of Social Marketing in Brand Awareness

Ferguson, (2008) acknowledged that viral marketing process is playing

key role in creating brand awareness among the customers. Companies
are using social marketing process as an alternate for general marketing
process because social marketing builds creates product awareness
among the customers. The product or service message will be conveyed
from one customer to the other depending on the product interest of
existing customers.
Lindgreen & Vanhamme, 2005; Dobele et al. (2007) specified that social
marketing process is playing vital role in developing and sustaining the
economical standards of companies that are using internet marketing

process. Before implementing social marketing process, companies should

first identify the advantages and disadvantages of them in order to
manage the sudden changes takes place in future. Social marketing
process attracts the customers on the way towards particular products of
the companies that allows them to fulfil their goals.
In views of Dobele et al (2005), social marketing can be considered as the
special type of technique which can be utilized to amplify brand
awareness among the customers in order to sale their products and
goods. Messages specified in the social networking sites will spread in the
form of virus from place to other that multiplies continuously.
keting is not only the process of marketing products to the new customers
by using old customers feedback, but it is the process of supporting the
product with existing customers in order to erect trust among network.

Success of Social Networking Sites

According to the views of Nicole (2007), social networking sites are widely
used by different communities of people and they are successful in
building communications among the people over the world. Social
networking sites are used for personal and professional uses according to
the user requirements. Social networking sites process the
communications of products between the users and companies in order to
create brand awareness among the customers. Nowadays, most of the
companies are using social networking sites as an alternate marketing
resource on behalf of traditional marketing process.
In views of Shih (2009) social networking user numbers are increasing
day and day and for this reason the demand of marketing process on
social networking sites is increasing rapidly. Social networking sites are
building relation between customers and companies and are supporting
them to market their products and goods.
Especially, communities and pages in the social networking sites are
emerging continuously and each and every small and large company are
depending on social networking sites in order to market their products. By
using these social networking sites companies are trying to approach the
customers with their new products in order to build relation with them.
Social networking sites are not only marketing the products but they are
even promoting the offers and packages offered by the companies which
are allowing the users to find the information on the required products
Weber (2009)
Social networking sites are more successful in providing the product and
company information to the users and they are working as information
search engines to find appropriate products and goods among the
internet. Social networking sites have effected traditional and media
marketing resources and they are leading the top position in marketing

process. Companies are getting more number of potential customers from

social networking sites and are successful in marketing their products and
goods through online. Social networking sites are having many benefits
such as customer loyalty, recruitment benefits, brand utility, low costs and
high customer influence (Borges, 2009).
According to the views of Zarrella (2010), in the earlier period, internet
and its resources are used only to send and receive messages through
emails and find required information from it. But according to the
technological advancements and developments, social networking sites
came into existence and totally changed the history of internet.
Success of Popular Social Networking Sites

Lacy and Hernandez (2009) stated that Twitter is one of the successful
social networking site widely used by many users among the internet.
Twitter includes different posts related to opinions and views of persons or
companies on any aspects. The different types of personal and
professional activities are included in twitter. Companies are using twitter
in order to tweet the messages and information about their products and
services to the users to reach end customers.
The important information on products of the companies will be included
in the tweet and the companies are sending their product information to
the customers by using these tweets. The tweets posted in the twitter will
be communicated between the customers and the companies through
which customers can communicate and share their information on
products with the companies and alternate users. Twitter is widely used
by the companies in order to sale their products through internet
marketing and create their brand awareness among the customers
(Chaffey, 2003).
Google and Yahoo are competing themselves in supporting their users
with required information on the products and services of the specific
companies. Google is the biggest search engine in the world that allows
the people to find any type of information at any time from any location
with free of cost. Google is the only search engine among the internet
which is used by millions of users per day in order to find the required
information according to their search.
In order to allow their customers to reach their companies easily, they are
using Google search as one of the best marketing resource. Google can be
considered as the successful social media search engine supporting wide
range and customers and companies equally. On the other hand, Yahoo is
one of the other biggest social media search engine used by the users in
order find and share information about different aspects. Companies are
even using Yahoo network in order to market their products to the users
(Stroud, 2007).

In views of Ricadela (2007), YouTube is one of the other biggest social

networking sites in the world that includes audio and video based
information on different aspects. Most of the companies are uploading the
audios and videos of the information related to their company products
and goods in YouTube in order to promote them online. YouTube is
another successful social networking site that markets huge numbers of
products and goods related to different companies.
Smith (2010) stated that Facebook is one of the biggest social networking
sites in the world which is widely used by many persons for different
purposes. Facebook is having high number of visitors when compared
with other social networking sites. Companies give first preference to
Facebook in order to market or promote their products because it is the
biggest social networking site that is connecting people all around the
world.
The companies involved in Facebook marketing process will not only
market their products but they even share information on experiences
and feedbacks of the existing customers on their products which is known
as social marketing process. Finally, when compared with the other
networking sites, Facebook is the successful social networking site
marketing huge number of company products to the customers (Brinlee,
2007).