UNIT :III

Integrated Marketing Communication

ADVERTISING MEDIA SELECTION
EXPLAIN ADVERTISING MEDIA AND MEDIA PLANNING AND MEDIA STRATEGY.
Defining Media Planning.
Media planning is the process of directing the advertisement message to the target audience at the
appropriate time and place, using the appropriate channel. In other words, a media planning outlines how
advertising time and space in various media will be used to achieve the marketing objectives of the company
through advertising. It helps answer such questions as:
What audiences do we want to reach?
- Target Audience
How to reach the audience?
- Media Selection
When and where do we want to reach them?
- Media Scheduling & Timing
How many people should we reach?
- Reach
How often do we need to reach them?
- Frequency
What will it cost to reach them?
- Cost effectiveness.
Media planning and marketing plans:
Just as advertising is one of the key functions of marketing, media planning is one of the key
functions of advertising. The advertising plan, which is based on the situation analysis and the marketing
plan, sets the advertising objectives. In turns, these plans & objectives guide the development of a
comprehensive media plan that outlines the specific media objectives, strategies, schedule and vehicle to be
used to carry out the advertising message.
Marketing Plan

Situational analysis
Marketing objectives
Marketing strategies
Action plan

Advertising Plan
Situational analysis
Marketing strategies
Promotional strategy
Advertising objectives

Media Plan

Media objectives
Media strategies
Media schedules
Media vehicles

Advertising strategy
Creative strategy
Media plan
Budget

Factors influencing media planning

There are several factors that influence the designing of a media plan. These may be grouped under
the following heads.
I.
Marketing Consideration.
II.
Specific media consideration.
III.
Level of competition consideration.
I. Marketing Consideration.
For an appropriate media plan, it is essential to know the type of consumers, its size, location and its
qualitative characteristics such as sex, age, socio-economic conditions, literacy level etc., people spend less
time with each media vehicle. Their attention to each media vehicle is becoming fragmented day by day,
Posing an additional challenge for media planners.
a)Products considerations. - The type of product & its features also determine the media to be used. For
example, industrial products are advertised through trade journals where as fashion wear are advertised in
film magazines or fashion magazines.
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b)Channels of distribution consideration - Distribution outlets may be classified into local, regional,
national and international. If the product is to be distributed locally or regionally, the media, which may
cover these areas, may be considered. If the product is to be distributed on a national basis, adequate
national media that has reasonable national coverage shall be considered.
C)Advertising copy formulation: The type of message to be conveyed influences the type of media vehicle
to be selected. In turn, the type of target audience influences the type of message. The underlying principle
should be that the message should effectively reach the target audience, reinforce the ideas, convenience
them and elicit buying action from the consumers.
II. Specific media considerations.
A)Size of the budget:
Quite often the size of the advertisement budget defines and confuses the advertising efforts. The
advertiser should select the media & plan the schedule strictly in accordance to his budget.
B)Media availability
Media availability covers such qualitative values such as audience charters, editorial personality and
contribution to advertisement effectiveness. Today, the number of media choices, and the number of options
within each category has multiplied. New medias are popping up, all around, favoring on the select type of
audiences. These have made media planners to evaluate their choices and media alternatives. The media
availability is measured in terms of
i) Distribution measurement
- expressed in the number of copies. Circulated.
ii) Audience measurement
- expressed in terms of audience size, composition and exposure.
iii) Exposure measurement
- expressed in terms of creative advertising exposure &
its impact in terms of perception & behavioral response.
c) Media Characteristics
-the inherent characteristics of a media viz, its reach, frequency and
continuity are to be considered for effective coverage.
d) Media costs - not only can it be expensive to produce commercials but it can also be costly to run them.
In fact, no matter what media are used, the media budget can dwarf the production budget, which makes
rising media costs a major concern.
III. Competitive considerations.
Media planners must always be like a watchdog on their competitors moves. They must analyse
their spending, type of media used and the timing & scheduling of their advertisement message. Many times
media planners are significantly influenced by the competitors advertisement campaign. They must plan to
match and win their competitors ad campaign.
Media planning process
Media objectivesMedia strategy
Media schedule
Media selection
Target audience Determine geographic
Determine
scope timing
Factors influencing media selection
Determining continuity
Distributing the message
Cost effectiveness Determining size/length
Cost effectiveness

Developing media objectives

The first step in the media planning process is to set media objectives that will act as a guide in the
selection and use of media. Whether the marketing objective is to launch a new product, introduce a product
in a new market, repositioning a product, or fend off new competitors, specific measurable objectives guide
media decisions. They provide a focus for co-coordinating advertising activities, and offer a clear standard
for measuring performance after the advertisement campaign has run.
Reaching the Target audience.The first step in media planning is the collection of useful information about
the audience or the market to be reached through advertising. Target audience profiles are generally
developed using demographic, psychographics, and produce wise descriptions, including age, education,
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income, occupation, life-style & brand preference. The more specific and detailed description of target
audience, the better will be the selection of the media vehicles that effectively & efficiently reach the target
audience, avoiding those media that reach only a few members of the target market or that reach people who
never use the type of product being advertised.
Distributing the message
Once you have identified the target audience, the next step is to set objectives for
- When, where and how often to distribute the message to that audience.
- How many messages to schedule?
- How often to schedule them?
To answer these questions, one need to consider how to balance reach and frequency within the
overall budget set by the marketing department.
Reach :Reach is expressed in terms of the number of households or individuals reached by a given media
over a period of time. Reach measures the number of audience members exposed to that medium at least
once, no matter how many times they actually see or hear the message in that medium.
Thus if 6000 out of the target audience of 10000 young adults aged 13 to 18 time in a daily MTV
Programmed one or more times during a month, the reach is 60% (i.e., 6000/10000)
Frequency :Frequency measures the number of times different households or individuals are reached by
a medium in a given period of time.
Thus, if 3000 people in the TARGET AUDIENCE watch a daily MTV Programmed 4 times during a
month and another 3000 watch it 6 times, then
Total number of exposures =
(3000 x 4) + (3000 x 6) = 30000
Total audience reach
=
6000
Average Frequency
=
30000/6000 = 5 times.
Marketing planners must actually determine the effective frequency, the number of times a target
audience must be exposed to a particular advertisement in a given medium to communicate the message &
stimulate action. Some of the factors that influence frequency are i.
Purchase Cycle
ii.
Market Share
iii.
Brand History
iv.
Clutter & Competitive share of voice
v.
Message complexity.
vi.
Message size and length.
Continuity: Refers to message delivers over a period of time or season. (same Medium). This is
important because isolated advertisements generally make very little impact.
Gross rating points. Message weight is the size of the combined target audiences reached by the media
vehicles in a single media plan. To calculate message weight, add up all the reach numbers for each
advertisement in the plan, ignoring any overlap or duplication message weight is expressed in terms of
GRPs.
GRPs is calculated by multiplying reach and frequency.
Thus, the GRP in the above example will be
GRP =
Total reach x average frequency
60 x 5 = 300 points.
Ideally, media objectives should represent the best balance of reach and frequency as well as the
appropriate message weight, to support adopting and marketing plans. For example, to combat a heavy
competitive advertising, the aims should be to increase frequency rather than reach. When advertising a new
product the aim should be to increase the reach and message weight so a larger audience is exposed to the
product launch.
It should be borne in mind that one cannot maximize both reach and frequency, because these two
are inversely related. For example., one can choose to allocate the given media budget to reach 1000 people
7 times, 3500 people 4 times or 6000 people one time.
Developing media strategy:

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Media strategy describes the course of actions to follow to achieve media objectives, including the
type of media and the individual vehicles to deliver advertising messages. The Media strategy involves
decisions to be taken in four broad areas.
- Determining geographic scope
- Scheduling the message.
- Selecting the media and
- Calculating cost efficiency.
1)Determining geographic scope
Products availability in the market is a vital factor to be considered. Since it is a waste advertising
the product in the areas where the product isnt available. Another factor to be considered is the products
strength in various geographic areas. By comparing each market under consideration, one can pinpoint the
markets that offer an opportunity for higher relations. Two tools used to compare sales strength in individual
markets ar BDI and the CDI
BRAND DEVELOPMENT INDEX:
The BDI is a ratio that measures the relative sales strength of a given brand in a specified area.
BDI

% of brands total sales in the market

-----------------------------------------------% of total population in the market

x 100

This index is convenient for computing the sales strength of the product in all markets under the
consideration so that one can prioritize where to invest more media budget.
CATEGORY DEVELOPMENT INDEX: Apart from knowing brands strength, it is also useful to look at
the over all sales potential for the product category, including the potential for all competitors selling the
same type of product.
% of product categorys total sales in the market
CDI = ------------------------------------------------------X 100
% of total population in the market

High BDILow bDI

High CDI

rket shareGood sales potential for category but our brand isnt doing as well as others in the catego

efend market- consider higher frequency during .

in awareness.Peak purchasing period.

r the category
Low CDIpotential low for both the category
for the brandand the companys brand.

e used to increase question whether advertisement

of purchase.Can make a difference.

BDI & CDI can help evaluate products sales strength & sales potential & yield clues about where to invest
advertisement budget. However its important to pay attention to other factor such as size of the population
(considering larger markets even if they have lower BDI / CDI), the lever of product usage (looking at
markets with higher usage), and the strength of distribution (avoiding markets where you have little or no
distribution).
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Scheduling the message

The second set decisions in developing media strategy revolve around message scheduling: - When to Advertise?
- How long to advertisement in each medium?
- How long to all media?
- How many times the advertisement are to be scheduled? And when?
There are three types of decisions involved in scheduling the messages - viz 1.Determining timing - depending on the media objectives, messages can be timed in four ways:i)
To reach people when the are most interest in buying the product.
ii)
To stimulate demand during slower periods.
iii)
To avoid competitors messages.
iv)
To reach the people in the target audience when they are receptive to the medium in use.
2) Determining continuity
The pattern of message repetition determines the continuity of media schedule. There are different
types of scheduling depending upon the nature of the product and type of audience targeted at.
i)
Continuity Scheduling - when a message is scheduled to run consistently over a long period without
gaps then it is known as continuous advertising. This type of scheduling is used to advertise food items,
soap and other products that are in demand all around the year.
ii) Flighting - not everyone needs or can afford to advertise continuously. Flighting, an intermittent schedule
with periods when your advertising runs and gaps when it doesnt one can use flighting to schedule
messages at peak purchasing intervals between each flight. This approach is useful for products that arent
in strong demand all through the year, such as sunscreen lotion.
iii) Pulsing - in the case of pulsing, you maintain a consistent, relatively low level of advertising throughout
the year and add pulses to make a heavier schedule during peak periods or to another competitive
challenges.
iv) Bursting - In case of TV advertising, bursting can be used during peak periods, ie., allowing to run an
advertisement repeatedly on the same station, which marks well if you are selling a complex or expensive
product or if you need to reinforce the message repeatedly during a short period.
v) Road blocking - scheduling the same advertisement on several major TV Networks at the same time.
This lets the advertiser have maximum reach in a short period.
3.Determining size/length and position:
Another important consideration while scheduling the advertisement is that of size or length and its
position in the media vehicle.
Print Media - How large the advertisement should be?
T.V.Media
- How long the advertisement should run?
Magazine
- Where to position the Advertisement?
4.Selecting the Media
Criteria for Selecting Individual Media Vehicles
1.Overall Campaign Objectives and Strategy
a. The media planners first job is to review the nature of the product or service, the intended
objectives and strategies, and the primary and secondary target markets and audiences.
b. The planner identifies the characteristics most relevant to the acceptance, purchase, and use
of the product.
c. The planner then matches these data to the characteristics of the audience of the specific
media vehicles under consideration. Advertising is most effective when it positions a product
as part of the solution the consumer seeks.
2. Characteristics of media audiences
a. Audience - the total of people or household exposed to a medium. Need to know how closely
the mediums audience matches the profile of the target market and how interested such
people are in the publication or program.
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b. The content of a medium usually determines the type of people in the audience. Each type or
programming attracts a different audience.
3. Exposure, attention, and motivational value of media vehicles - the media planner has to
select media that will not only achieve the desired exposure to the target audience, but also attract attention
and motivate people to act.
a.

Exposure Value - how many people sees an ad. Five factors that affect the probability
of ad exposure are:
The senses used to perceive messages from the medium
How much and what kind of attention the medium requires
Whether the medium is an information source or a diversion
Whether the medium or program aims at general or specialized audience.
The placement of an ad in the vehicle.
b. Attention Value - degree of attention. Exposure value relates only to the medium; attention value
concerns the advertising message and copy, as well as the medium. Six factors are known to increase
attention value:
1. Audience involvement with editorial content or program material
2. Specialization of audience interest or identification
3. Number of competitive advertisers
4. Audience familiarity with the advertisers campaign
5. Quality of advertising reproduction
6. Timeliness of advertising exposure
c. Motivation value - Motivation value is affected by those same factors but in different ways.
4. Cost efficiency of media vehicles - A common term used in media planning and buying is:
a. Cost per thousand (CPM) which is based on the mediums total audience.
b. However, media planners are more interested in cost efficiency, which relates to the cost of
exposing the message to the target audience rather than to the total circulation.
Calculating Cost efficiency
Even the advertisers with huge budget need to analyze the cost of using various media to reach in
their target audiences. By comparing and evaluating the cost efficiency of each medium of each vehicle and
of each media plan under consideration, advertisers can determine the best media mix to meet advertising
objectives.
CPM reflects the cost of reaching the mediums entire audience.
Cost of media unit
Cost per thousand
--------------------x 1000
Gross impressions
CPM can be a handy yardstick to support media selections, but it cant predict how your target
audience will react to a particular medium or which mix will best for the product. Thus, CPM may be a
good way to measure cost, but it doesnt measures effectiveness.
EXPLAIN THE VARIOUS TYPES OF MEDIA - PRINT
News Papers:
Despite vigorous competition from magazines, radio and T.V, Newspapers have traditionally
attracted largest share of advertisement spending due to its wide coverage, high frequency and cheaper rates.
Infact, the major source of income for most newspapers comes from advertisements from various business
houses.
Types of newspapers:Newspapers can be classified according to frequency of publication, page size, and
audience.
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Frequency of publication: - Advertiser can choose between newspapers that are published daily and those
that are published weekly. In India, two thirds of the newspaper are dailies that are distributed in the
mornings, one-thirds are circulated as evening editions. In addition to their usual 8-16 pages content they
normally attach supplements specialising in Trade, Education, and women and children news. They also
carry a lot of advertisements.
Page SizeAnother way to classify them is according to their page size newspaper are typically published in one
of two sizes, broadsheet or tabloid. A broadsheet, also known as standard size newspaper has a page size of
about 22 x 13 and is divided into eight columns. Broadsheet newspapers are more popular than their
counterparts.
AudienceA third way to classify newspaper is in terms of the audiences they serve. Most newspaper report
info of interest to the general population, so their audiences are broad, cutting across, social, economic and
cultural lines. However, some newspaper serves specialised audiences, which makes them particularly good
media vehicles to target these groups. Special interest audiences range from business people, doctors,
Auditors, lawyers, to ethic groups.
MarketA fourth way to classify newspaper is according to the markets in which they are distributed. In
India national newspaper are normally in English while regional/state circulated newspaper are in regional
languages. There are still come newspapers that are distributed only in one town, city or metropolitan area.
Types of Newspaper Advertising:
1.Display Advertising
Consists of headline and body copy, illustrations and other visual elements that set the message apart
from the editional material surrounding it. Large or small, in black and white or in color, display ads are
designed to crab the reader;s attention and they appear almost anywhere in the newspaper.
Nationally, display advertising is placed by national advertiser to support brands available in local
market.
Local display advertising is placed by retailers and local business houses, and it accounts for more
than half of a newspaper revenues.
Co-op advertising is one where a mmpays part of the bill when a local store advertisement features
its brand.
2.Classified advertising
In contrast to DA, which can include illustrations and other attention getting visual devices,
classified advertising consists of an all text message positioned in the newspaper according to categories
such as employment, automotive, and real estate. Whereas regular classified advertising rules in small,
uniform type, many up also accept CDA, which includes illustrations, borders and other visual elements as a
may of setting the advertisement apart from other advertisement in the section.
3. Preprinted InsertsA preprinted insert is an advertisement thats printed in advance and enclosed with newspapers.
Advertisers or their agencies can print any type of advertising material - broucher, catalogs, or postcards and
ship them to the publishers, where they are folded into the newspaper for delivery to readers. This
distribution method generally costs advertisers less than using mail or door-to-door delivery.
Advantage of Newspaper Advertising: 1. Market penetration - Newspapers generally offer good market coverage because their readership cuts
across economic, social and cultural lines.
2. Geographic selectivity - Advertisers can target narrowly defined areas by running advertisement in the
newspaper zoned editions or zoned sections that are distributed only in specific parts of the market. This can
help avoid wasteful targeting of unwanted audiences.
3. Responsive timing - Daily newspaper have daily advertisement deadlines, so any change or alternations
required to be incorporated requires very little time, normally a day or two. Further more, audience
reactions to the advertisements can be gauged quickly and easily.

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4.Creative Flexibility- Newspaper offer many creative options for print advertisers, whether advertisement
are large or small all text or illustrated, in black and white or in color. However, the creative possibilities do
not include sound and motion.
5. Audience interest- Readers are interest in what they read in the newspaper and this medium is the main
source of info when people want to rent or buy a home, find a new job or shop for a car. Further more,
advertiser seeking specific target audiences can advertise only in the sectors likely to be read by these
targets.
Limitations of Newspaper advertising:
1. Reproduction constraints Because of the coarse paper stock, the color printing process, and the fast turnaround time, the
reproduction quality of most newspaper is limited. Even with the sophisticated printing processes, color
newspaper advertisement do not look as good as they would a magazines.
2. Limited targeting capabilities:
Though newspapers can reach broad audience, they are not effective at isolating specific market
segments. To counter this limitation, many newspapers now publish sectors that appeal to specific
audiences.
3. Short lift spanMost readers spend relatively little time with newspaper before putting aside. Some just gaze
through only the headlines and some read only specific sections such as sports, and business. As the saying
goes todays newspaper is tomorrows waste paper newspaper are hardly preserved for future use.
4. ClutterNewspapers are filled with articles, photos, advertisement and inserts, so an individual advertisement
competes with a lot of clutters.
MAGAZINES:
Magazines have become a major advertising medium for all types of products. Lower cost of
distribution and creative possibilities in terms of color, space and text are the unique features offered by the
magazine advertising. Automotive, food, and household products are among the largest magazine
advertisers. These advertisers find magazines an effective medium for zeroing in on their target audiences.
Types of Magazines:
1. Consumer MagazinesConsumer Magazines offers info and entertainment for the general public, people who buy products
for personal or family use. Consumer magazines are usually sold by subscriptions, on newsstands, and in
stores. They can be further classified according to their editorial appeal. Some common editorial categories
include - General Interest Magazines (Readers Digest)
- Womens Magazines (Femina, Womens Era)
- Special Interest Magazines (Sports Star)
- News Magazines (India Today, Outlook)
- Shelters Magazines (Interior Decoration...)
2. Business Magazines.
Contains information of useful to people responsible for buying business products. This can be
further categorized into
- Trade publications which is edited for retailers, wholesales or other distributors
- Industrial magazine which is edited for manufacturers; and
- Professional magazines, which is edited for dentists, lawyers, physicians, or other professionals.
Advantage of Magazine Advertising:
1. Geographic selectivity Some may target relatively confirmed market areas, such as on region, one state or one city. This
allows advertisers easily reach target markets with little waste.
2. Audience Selectivity:
Professional publications often reach select audiences, such as doctors, lawyers, accountants, etc.,
some may even target women and children.
3. Creative flexibility30

May offer superior color reproduction and ability to use special paper for added effect. They can
also grab attention through pop-ups, which expand into three directions and advertisement with strings or
tabs that reveal a logo or creative element. Further, magazine can bind in small product samples; an
especially handy may to introduce readers to new products.
4. Long life spanUnlike newspaper, which are read and tossed out relatively quickly, magazines are around for a
longer period. They will be read at least till the next issue is bought. Some reader even preserves them for
future reference. This means that advertisement have more than one chance to get the audiences attention.
5. Audience interestReaders choose magazines on the basis of content where as newspaper cover a topic in one story or
few pages, magazines contains one or more longer articles on the topic. And because magazines contain a
mix of about 52% editorial & 48% advertisement material, there is less clutter then in newspaper.
Disadvantages of Magazines:
1. Limited reach and frequencyMagazines arent as mass market a medium as, say, television; to reach broad audience, advertisers
have buy a lot of magazine space. Apart from lack of reach, most major are published monthly/bi-monthly,
resulting in decreased frequency.
2. Long lead-time
Because magazine printing processes require considerable preparation, advertisers have to submit
materials well in advance of the publication date. Once the lead-time for placing an advertisement has
passed, advertisers are locked in and cant change their advertisement, even if they need to respond to
competitive shifts or other market place changes.
3. Lack of sound and motion:
Despite the creative advertisement of good quality color, reproduction and the ability to use long
copy, illustrations and other options, magazines advertisement relies primarily on visual techniques to
consumers. Magazines cant use should (Like radio) or motion (like TV) to attract and maintain audiences
attention.
EXPLAIN THE TYPES OF MEDIA - ELECTRONIC
Radio Advertising:
Since early days radio commercials have painted word and sound pictures that bring to life the
products they promote. Advertisers have used radio as a personal medium that can build brand awareness
with vast coverage at comparatively low cost.
Types of Radio Stations
- AM Radio - Networks
- FM Radio - Syndication
Types of Radio Advertising:
1. Straight commercials - is one that uses sound effects to arrest and hold the attention of listeners describing
the product features and merits.
2. Dialogue commercials- is a kind of testimonial advertising. The advertising message is developed by
presenting the conversation between the announcer and other persons - may be film stars, players, experts,
VIPs or users.
3. Dramatized commercials - a problem situation is dramatized and the product is introduced as a solutions
to the problem.
4. Integrated commercials - This is also called as personality commercial since a film star, or player, a VIP
is given a free hand to present the programme.
5. Musical commercials - is one where the sales message is sung sweetly with the matching music.
Advantages of Radio Advertising
1. Cost and efficiency Radios CPM is among the lowest of any medium. This means that it is affordable to
build reach and frequency through radio, even on a modest budget. The production cost for radio
commercials is also quite low, and its almost nothing if we hand the radio announcer a script to read on the
air.

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2. Wide exposure - Radio reaches virtually everyone in India. The listener has the unique advantage of
hearing the programme and commercials while doing his work. It requires hardly any effort and
concentration unlike other media like TV, Newspaper and magazines etc.,
3. Audience selectivity- Radio advertisers can reach audiences selectively. This is because each stations
programme format and geographic coverage attract a specific audience segment. The advertiser can adopt
his message and the intercity of coverage of different markers to meet local conditions.
4. Flexibility - advertisers can delete, change, or insert and copy almost instantly in the case of radio
advertising. Its as fast as substituting a new script or sending the station a new tape. This flexibility
allows the advertisers to quickly adjust to the changing market conditions.
5. Potential for powerful imagery- Because radio has no visual component, the advertisers has to say voices,
sound effects, or music and the listeners has to the mental picture. by inviting or challenging listeners to use
their imaginations, advertisements evoke feelings and reactions more powerful then those created by
advertisement in other media.
Limitation of Radio Advertising
1. Lack of Visuals - Creativity in Radio Advertising is limited to sound. One cant demonstrate or even show
the product register an image in the minds of the listeners.
2. Short life Span - As with TV commercials, radio advertisements are broadcast only for a few seconds and
then disappear. What compounds this fleeting life span is the tendency of some people to leave radio on in
the background as they work, drive, read or do something else. So they are likely to miss some or all of the
brief message.
3. Audience fragmentation: - with hundreds of stations and a wide choice of program formats, a single
station or network can capture only a tiny fraction of the total listening audience. Advertisers are forced to
buy sever time on many stations to reach large number in one market which can be both costly and cum.
4. Cluster - as with any other medium, radio stations, carry lot of advertisement during peak hours making
advertisement lose its uniqueness and significance. Further, they reach all the audience irrespective of the
fact that they are the targeted ones or not.
TELEVISION ADVRTISING:
With the combination of Sight, sound and motion TV offers endless creative opportunities to reach viewers
hearts and minds. Due to its efficiency of reaching mass-market reach almost all the manufacturers have
taken this route to advertise their products and services.
Types of TVs
- Broadcast TV
Cable TV
- Network
- Local
Types of TV Advertising:1. Sponsorship- under this type of advertising the advertiser assures responsibility
for producing a program and enjoys the exclusive right to air commercial during this show. Although
expensive, sponsorship has two main advantages first a sponsor can link its advertisement with a high
quality program gaining prestige from the publics perception of the show. Second, a sponsor has complete
control over the placement and content of its commercials, which can be shown at any time during the
sponsored programme. Since it is costly to be a sole sponsor, many times advertising become co-sponsors,
sharing the costs and the commercial time with others.
2. Participation An advertiser that doesnt want the expense or responsibility of sponsorship can choose
participation, in which various advertisers buy commercial time during a specific programme. Advertisers
can participate in a programme regularly or only sporadically and they may buy one or more commercials
during each programme, depending upon their budgets. However advertiser have no control over the
programme content or broadcast schedules.
3. Spot announcement- A less costly alternative to sponsorship is the spot announcement, where the
advertisements are presented to the viewers between the sponsored programme and the station break. Here
the advertiser pays only for the time of about as he is not paying for the sponsored programme. Further
when independent stations run their own programming, they can sell Spot announcement at any point during
or between programmes. By buying Spot announcement advertiser can reach specific markets without a lot
of waste, or they can emphasize particular markets where they see were sales potential.
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Advantage of TV Advertising
1. Create flexibility - TV offers clutters possibilities for using sight, sound, color, and motion to
communication and advertisement message. Advertiser can make their commercial short or long, build
credibility by demonstrating the product and highlight unique/new features of their products compared to
that of competitors.
2. Coverage of mass markets- Its hard to beat TV for reaching huge no of people quickly. Now a days
virtually 70% of Indian house hold owns a TV set and those sets are used, on average, mere than 4 hours a
day.
3. Cost efficiency - Although it is expensive to prepare and run a TV commercial CPM are relatively modest
compared with the national audiences that can be reached.
4. Deep Impact - TV is a personal medium that tries to involve the viewer by direct person to personal
selling. It, infact replaces personal selling. The dimension of vision, sound, motion and color are
accountable for creating deep impact on the minds of the audience.
Limitations of television advertising:
1. Limited selectivity - TV Allows to make broad audience distinctions such as using cartoon programs to
reach children and sport events to reach men, but its difficult to be mere specific than that TV reaches all the
audience in a market and cannot make a distinction between a desired audience and an undesired one.
2. Audience erosion - National Networks are fast losing their viewer ship to more narrowed cable and
private channels. This means that national advertisers have to advertise both in the national networks and in
private channels to reach the targeted audiences.
3. Relatively high entry cost - Apart from the cost of talent and production, airing advertisement during
desirable shows and prime time periods is costly high cost have made some advertiser prepare just 15
seconds advertisement instead of a 30 second or 1 minute commercials.
4. Clutter- breaking through clutter has become a major challenge because viewers see more advertisement
than ever. Some even blame the network for airing too many advertisements by interrupting an interesting
programme very often. This creates a negative impression in the minds of the viewer to skip or avoid
advertisement by changing to different channels.
5. Brevity - Although research shows that a 15 seconds advertisement have more than half the persuasion
and recall of 30 seconds commercials; trying to cram too much message into too few seconds can hurt the
effectiveness. Short advertisement may be effective reminders for people who are familiar with a product,
but longer advertisement are more effective when launching a new product.
6. Limited viewer attention - During an advertisement, viewers may resort to zapping, using remote control
to change channels. Many indulge in grazing, using their remote control to quickly scan a lot of channels as
they search for something interesting to watch. They may also zip through the advertisement on recorded
programmes.
EXPLAIN THE TYPES OF MEDIA - DIRECT MARKETING
DIRECT MARKETING
In a quest to reach out to specific individuals, advertisers are increasingly using direct marketing to
communicate directly with targeted individuals trespassing the intermediaries. The main idea behind such
marketing is that it is not the target audience that buys, its the individuals who taken action. Direct
Marketing establishes a direct two-way communication between the organisation and the customers and
prospects, Without the distractions, interruptions or in efficiencies of working through intermediations.
Forms of Direct Marketing
1. Direct - response advertising - It supports the direct marketing effort by asking the target audience to
respond, to take immediate actions. If the product marketed is simple and inexpensive, the adverse may
make the offer and ask for the order in one step. However, if the product is more expensive and complicated
to explain them the advertiser may use a two-step approach. In first, introduce the product and invite the
prospects to call or write bulk to get more info or free samples. In the second step, after prospects have seen
the additional information or the sample, they can be called on to place their orders.
2. Direct mail advertising - refers to advertising thats directly delivered to the target and by mail. The
advertiser can encourage. Consumer to order by mail, phone, fax of even computers and deliver the
merchandise by mail.
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Direct marketing can use any medium and its not uncommon to use a con* of say, direct mail and
telemarketing or some other media mix to reach the target and several times and in serveral ways.
Types of direct marketing
Using database marketing
An increasing number of advertisers have their direct marketing programmes on a database, a
comprehensive and continually updated file of information about individuals in the target audience. It
contains the name, addresses, contract nos and buying patterns of the customers, usually details gleaned
from subscriptions, invoices, inquires, warrant cards and other sources.
Database marketing is used to
- Turn prospects into customers
- Cultivate long-term relationships with existing customers
- Get repeat business form customers than to attract new.
Building a customer database can take time and efforts. But its the only way to know exactly who
does business with the company. Though its little costly to generate a database it helps in functioning the
marketing efforts of a company to target the prospective individuals thereby eliminating financial waste and
marketing efforts.
Using Direct Mail - Directing marketing is the most common medium for direct marketing. Every year
advertisers spend huge sums in mailing postcards, letters and other direct mail pieces to business houses and
consumers.
Direct marketing formats: -1. Self Mailer - is a postcard, broucher, or other printed materials thats
delivered without an envelope. The recipients name & address are printed directly on the outside of the self
mailer, which may be stapled or sealed shut for mailing.
Postcards are cheaper way to send messages which contain courier and pre* info about the company /
product.
Envelops are usually printed with graphics, color and c* statements so that the reader is encouraged to
open and read the controls*
Letters may be typed or computer generated which explains the benefits and features of the product and
call for action.
Business reply envelope - is a postage paid envelope that customer can use to respond. All the customer
has to do is insert the reply card seal the enveope and mail it.
2. Statement stuffer. - is a small printed advertisement designed to be inserted into a customer invoice.
3. Free print is a copy of an advertisement or an article that has appeared elsewhere but may be of interest to
customers.
4. House organ is a publication produced by the business houses that keep customers, dealers, and inverters
informed periodically.
Selecting mailing lists
1. House list - is a list of customers and prospects that maintained by the organisation itself. Its a valuable
resource because it contains the list of
Customers who have established a relation with the organisation and or the most likely to purchase again
and People who have made any inquiries in the part.
2. Response list - is a mailing list of people who have responded to direct marketing offers for the products
that are similar or related to the company.
3. Complied list - is one that has been assembled by an outside form from directories, public records and
other readily available sources. This list is helpful in identifying new consumers who are either a new house
owners, corporate purchasing agents, small business owners apart from other normal consumers.
2. Using catalogs:
A catalog is a direct marketing booklet that shows pictures, gives descriptions and quotes prices of
merchandise for sale. Since it is relatively expensive to produce, print and post many advertisers seldom use
catalogs for marketing. But many advertisers of expensive produce have resorted to catalogs for image
creation, product education and for product comparisons by the consumers.
3. Using print and electronic media Newspaper, magazine, TV and radio can be used as a direct marketing media. Print advertising can
simultaneously reinforce brand awareness or describe product benefits while offering more info, a product
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sample or the product itself through a DR mechanism such as a coupon or a phone no. To make it easy for
perfects to respond, relay cards are bound into a magazine or inserted between the pages of a newspaper or
magazine.
Broadcast and cable TV is used to promote a wide variety of products from cosmetics and kitchen gadgets to
cars. T.V. advertiser not only use picture and sound to communicate product benefits but also repeat the
telephone no or the address for ordering by using both voice-overs and on screen displays.
4. Using Telemarketing
Telemarketing is the promotion of goods and services via telephones contact with business or
consumer. As a cost effective alternative to personal sales calls, Telemarketing lets you reach more
customers in less time. It is an efficient to reach prospects and customers. It is a two-way conversation,
which enables to understand consumers needs and to respond immediately to questions or requests.
5. Using Bill boards
Billboards are large flat sign structure erected outdoors, usually at large traffic areas. It contains
product and company info along with a toll free number. Billboards remind people about the company or the
products they are on the look for.
Advantage of Direct Marketing
1.Audience Selectivity - Direct marketing can help advertiser reach either a large, diverse audience or a
small, selected group. Bu using Newspaper, Radio or TV, advertisers can put message in front of large
audiences, by selecting database, one can use direct mail to reach select audiences, and by using special
interest magazines, one can reach those who are most interest in the product.
2.Flexibility
Advertisers can plan and implement advertising campaign relatively quickly, which gives the flexibility to
respond to changing market conditions. Moreover, depending on the medium it offers unlimited creative
flexibility with direct mail advertising. The size, color, paper, copy, illustrations and other creative elements
can be excellently altered or improved to suit the individual medium.
3.Personalization
The high degree of personal touch makes direct marketing stand out from other forms of advertising. With
tele- marketing and direct marketing advertising. The advertisers can use the customer name and address to
add a touch of personal contact. Moreover, directing marketing can tailor the approach to suit each persons
need and situation.
4. Ability to measure results
Although its difficult to measure the exact results of a particular advertising campaign, it is early to measure
and evaluate direct marketing results by counting the no of coupons, order forms, or telephone responses
received by the co.
Limitations of Direct marketing:
1.Questionable accuracy
Although Direct marketing helps in pinpointing the target audience, the accuracy is only as good as the list
used for direct market advertising. If the names, address or telephone numbers arent correct or current, or if
the names on the list have been mistakenly included. The offer wont reach the target audience.
2. Public Criticism - Many people are annoyed about the flood of letters, catalogs and brouchers they
receive. They are also irritated by what they perceive to be junk phone calls. Some of the criticism stem
from the distrust of buying by mail, some from the inappropriate offers, and some from a rising concern over
the environment and the waste of paper and packing material used in direct marketing.
3. Lack of content support - Direct Market advertising on its own will not generate the required audience
action. Often it must be supported with enticing editorials and interesting commercials.
EXPLAIN THE TYPES OF MEDIA - OUTDOOR
Out Door advertising
Advertising that reaches the Target audience away from home is called out of home or outdoor
advertising. To reach people out of their houses, advertiser position advertising messages outdoors, on or in
trains, buses and in a variety of other places.
Types of Out-door Advertising:
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1.Poster Panels: A Poster panel is the small of the standardised billboard sizes. It carries a pre printed
message and may be mounted on the top or the side of a building or may stand alongside a street or highway.
The messages mounted on poster panels and usually printed using silk screens, or lithoraphy. Then the strips
are preposted, packaged, and brought to the site, where they are smoothed into position on the billboard.
2. Painted bulletins - is the larger of the standardised Billboard, typically measuring 14th x 48ft. often they
are painted in sections in studio and brought to the display site to be h* on the billboard. In some cases they
are painted directly on to the billboard. Recent developments involve using computerised printing services
that improve reproduction quality and consistency.
3. Spectaculars - An extremely large OD display that incorporates special electrical or mechanical devices is
called spectacular. Spectaculars such as huge neon or electric signs are expensive to product, but because
they are glitzy and colorful and often include moving text or graphics, they have a visual impact that
commands attention.
Advantages of out-door advertising
1.Reach & Frequency Since the message is on display 24 hours, it can gain wide and repeated exposure if
its in the proper locations.
2.Flexibility
The creative choices of Billboard and other outdoor advantages are almost endless. Color, typeface, size and
shapes can be varied, and the advertiser can use three-dimensional elements, inflatable, lights and other
attention getting techniques.
3. Audience impact The input on the audience is tremendous because out-door ads are larger then life and the advertisement
cant be turned off like a TV or thrown away like a newspaper.
Limitations of out-door advertising
1. Limited audience measurement It is difficult to really measure as to how many people actually see a particular Billboard or poster or if they
notice its message.
2. Limited message communication How much of a message can be absorbed by a driver passing a billboard at a high speed?
3.Message wear-out
After an outdoor advertisement has been up a while, people may become in different to the advertisements
or get tire of the message.
4.Public criticism Huge posters often attract much attention of a driver, which might lead to accidents.
Further public there is a growing resentment among the public for using billboard to advertise tobacco and
liquor advertisement.
Transit Advertising:
Transit advertising is placed inside or outside public transportation vehicles, in train or bus stations, and on
platforms, and in airport terminals.
Types of transit advertising:
1.Inside cardsAn inside card is an advertising panel displayed on the interior of a transportation vehicle such as a bus or
train. Inside cards are horizontal and may be mounted on the walls above the windows or doors, on larger
spaces next to the doors, or at either end of the vehicle.
What makes inside cards so attractive to advertisers is the captive audience of riders who often have little to
do but read the ads. Unlike the fast moving audience for out-door advertising who have time only for a brief,
simple message, the audience for inside cards have enough time to absorb a lengthy list of copy points or
complicated messages.
2.Outside postersan out-side posters is an advertising panel attached to the side, front, rear, or roof of a bus , train, subway,
trolley or taxi. Out-side posters attract attention from riders waiting to board as well as from people passing
on foot or in cars, which means that out-side posters offer a lot of reach and frequency for the money.
3.Terminal postersA terminal poster is an advertising panel mounted inside a bus, subway, train, or railway station, on a transit
platform; in a bus-stop shelter, or in an air line terminal. Terminal posters may be either printed, painted or
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produced as transparencies and placed in back lighted frames so that their images are illuminated from
behind. In addition, terminal posters may be made to appear on an electronic sign inside the terminal or
placed on or around a terminal clock.
4.Mobile billboardsA variation of transit advertising is the mobile billboard, a type of rolling advertisements in which a poster is
mounted on the side of a flat bed, a van, or a tractor-trailer. Small flat beds are manageable way to tow
mobile billboards through the narrow streets of many urban areas, where as tractor-trailers or vans with ads
posted on their sides can spread the message along highways and rural areas.

Transit Advertising
Advantages of transit advertising:
1.cost efficiencyTransit advertising is one of the least expensive ways to reach an audience not only the cost per thousand
low, but the production costs are low also.
2.High frequencyPeople who follow the same route to and from work or school are exposed to advertisements day after day.
Transit advertising is usually displayed for at least 30 days and sometimes as long as a year, which gives
them high frequency rates.
3.Goegraphic coverageTransit advertising can be used to cover an entire city or reach just the section in which the target audience
lives or works. For instance, to reach college students, advertisers might put ads on or in the buses serving
the local campuses.
4.Long exposureEven complex and lengthy messages can be conveyed using target audience because the people who
commute or wait for the bus/ train have nothing to do but to read and understand them.
Limitations of transit advertising:
1.Limited selectivityAlthough transit advertising allows advertisers to send messages to specific geographic areas, the
advertisements may still reach audiences who are not targeted at. Often buses and trains may be rotated
throughout the system from time to time, bringing the advertisements to areas the advertiser had not
intended.
2.Limited creative flexibilityUnlike billboard advertisements, which can incorporate three-dimensional gadgets, and other attention
getting elements, terminal posters must be flat. The messages in the transit advertisements have to be easy to
read as the vehicles (and the riders) bounce along.
3.Limited reachAlthough, a large audience may see transit advertisements daily, their reach is somewhat limited, for
example, they do not reach people who live or work outside the city. People who commute by car would not
see terminal posters. Hence there is a risk of missing an entire segment of the market audiences.
4.Poor public perceptionLooking at the same ads daily would lead to message wear-out. People might tend to become indifferent to
these ads. Further when buses, trains or stations are dirty, the audience may have difficulty separating the
ads from other political and local programme posters.
Other types of advertising:
1.Aerial advertisingAdvertising that is displayed on the side of a blimp or a hot air balloon that is created by skywriting is
considered aerial advertising. It reaches audiences hen they are out-doors or when they are looking outside.
It can be expensive, but it also tends to gather a lot of attention that usually translates into free publicity.
2.On-Screen theatre advertising:

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Film advertising is yet another medium characterized by sound, motion, color, vision and timeliness. It is
like a television run on a enlarged screen for a large audience. This audiovisual medium has a wide range
starting from an ordinary slide presentation to the advertisement film screening.
3.Electronic place based advertising:
It is an umbrella term for radio, television and computer ads that are being aimed at audiences when they are
not in their own homes. This type of advertising can be used to target audiences when and where they cannot
avoid being exposed to the message, the captive audience of people watching monitors in an airport lounge
or a doctors office cannot change channels and therefore must sit through the ads as well as programs.
MARKERING FUNCTONS ON INTERNET
EXPLAIN E- COMMERCE, ITS ADVANTAGES AND DISADVANTAGES.
e-commerce refers to the purchase and sale of goods and/or services via electronic channels such as
the Internet. E-commerce was first introduced in the 1960s via an electronic data interchange (EDI) on
value-added networks (VANs).
Categories of e-commerce
As with traditional commerce, there are four principal categories of e-commerce: B2B, B2C, C2B and C2C.
B2B (Business to Business) This involves companies doing business with each other. One
example is manufacturers selling to distributors and wholesalers selling to retailers.
B2C (Business to Consumer) B2C consists of businesses selling to the general public through
shopping cart software, without needing any human interaction. This is what most people think of
when they hear "e-commerce." An example of this would be Amazon.
C2B (Consumer to Business) In C2B e-commerce, consumers post a project with a set budget
online, and companies bid on the project. The consumer reviews the bids and selects the company.
Elance is an example of this.
C2C (Consumer to Consumer) This takes place within online classified ads, forums
or marketplaces where individuals can buy and sell their goods. Examples of this include Craigslist,
eBay and Etsy.
Explain the Key components of an e- Commerce system
Having an online presence is a must for any business in current world. For a company which is selling
products, it will mean creating an ecommerce website, from where customers can purchase products. There
can be businesses which are selling totally online (Amazon, ebay) and others which already have offline
selling mediums (showrooms), having ecommerce site as an additional way to sell products (Bestbuy).
Depending on the business, and role of ecommerce in it, and complexity of the system will vary. For
example, one can have listing of products online but actual selling is through phone, or user can order online
which is being manually interpreted by backoffice employees, or a completely automated system. There can
be different types of ecommerce systems as well, some selling tangible products like mobile phones,
electronics, apparels, other might be selling airline tickets, music for download, a consultant service etc.
As noted, we can have multiple types of ecommerce systems, but some of the key components used by most
sites areProduct Information: Product is the sellable unit in ecommerce system (we can sell services as well, but
then they will be considered as product for that particular system). We need to have as much information as
possible about product so that it can be shown to customer, who can then make an informed decision on
purchase. Information should be provided in industry accepted standards, so that it can be compared easily
by customer.

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Catalog: A catalog is online version of brochure or menu, which should contain all the products (services)
business is providing. The products are further categorized/ sub-categorized into meaningful lists like
electronics > kitchen appliances > microwave
Search: This is most used feature of any ecommerce website. Rather then looking for a product in catalogs,
customer will prefer searching for it by keywords. A good search functionality will make sure he gets what
he is looking for (or better).
Shopping cart: All the selected products by customer will be shown in shopping cart. This is responsible for
applying any offers, taxes, discount etc.
User Details/ Profile management: An ecommerce site might allow a user to shop without login to system.
But at times it is desirable to let user create a profile, so that he does not need to enter his details (address,
name, phone number etc) everytime he makes a purchase.
Order management: How can customer order for a product or a service? Can he order online, send emails,
call up customer care or go to nearby store.
Payment: What are different modes of payment customer can use- Credit card, debit card, net banking, cash
on delivery etc. Usually a third party payment gateway can be used to keep focus on business requirements.
Guarantee/ Warranty management: A product might have guarantee or warranty associated, which needs
to be honored by the business to make sure customer is coming back to it.
Offers: Businesses need to come up with frequent offers/ discounts/ loyalty programs to boost up sales.
Business also uses techniques like cross sell or up sell to increase profit and help customer make good
choices.
Privacy Policy: A business might need to collect some information from customer like name, address, age
(sometimes more private info) etc. What will happen to info collected from customer (kept private)? Also
will cookies be used by the site?
Security: Customer might be sharing sensitive information online, so system needs to use https/ SSL for
data collection. Additional requirement will be to secure data already collected by use of authorization and
firewalls.
SECURITY ISSUES
E-commerce security is the protection of e-commerce assets from unauthorized access, use, alteration, or
destruction. While security features do not guarantee a secure system, they are necessary to build a secure
system. Security features have four categories:
Authentication: Verifies who you say you are. It enforces that you are the only one allowed to logon to your
Internet banking account.
Authorization: Allows only you to manipulate your resources in specific ways. This prevents you from
increasing the balance of your account or deleting a bill.
Encryption: Deals with information hiding. It ensures you cannot spy on others during Internet banking
transactions.
Auditing: Keeps a record of operations. Merchants use auditing to prove that you bought a specific
merchandise.
Integrity: prevention against unauthorized data modification
No repudiation: prevention against any one party from reneging on an agreement after the fact
Availability: prevention against data delays or removal.
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PURCHASING HABITS: The second issue has strong ramifications for the ultimate success of ecommerce Currently , many consumers are most comfortable when they buy merchandise at retail stores.
Some are also comfortable buying through catalogs. It will take time to change these habits , especially the
preference for retail shopping.
Electronic data interchange:
Electronic data interchange is the transfer of business documents, such as purchase orders and
invoice, between computers as per a set of standards. EDI facilitates the transfer of business documents
stored in structured formats through mutually agreed messaging protocols from one computer
application to another. The users of DEI do not have to change their internal databases. However, users
must translate this information to or from their own computer system formats, bus this translation software
has to be prepared only once. Thus, EDI is a tool for business t business communication. In simple terms,
EDI is computer to computer communication using a standard data format to exchange business information
electronically between independent organizations. The goal of EDI is the elimination of paper work and
increased response time. E- Commerce, on the other hand, is a concept reflective of the infrastructure and
technology available for conducting business using the electronic media.
Uses of EDI:
EDI addresses many problems arising out of paper based information systems. In a paper based
information system, a number of delays occur. Lot of time is required, sometimes, for physical movement
of documents from one party to the other. Further, delays are caused by the manual processing which
requires one to key and re key the information along the timeline. Delays in transporting and keying
information result in ordering delays, billing delays, payment delays, poor customer service, and poor
management information. Some of the problems with paper based information systems that EDI can address
are;
Labour costs:
In a paper based system, manual processing is required for data keying, document storage and
retrieval, document matching, envelope stuffing etc.
Errors:
In the paper based system the same information is required to be keyed in a number of times. Hence,
the paper based information system is not only labour intensive but also error prone.
Inventory:
In addition to the delays and uncertainties, in paper based system lot of paper is required to record a
variety of information.
Uncertainty:
Uncertainty exists in three areas.
First, delay in transportation and keying mean that timing is uncertain.
Secondly, the sender does not know whether the matter dispatched will reach the party intended to or
not.
Thirdly, uncertainty regarding payment.
It is difficult to tell when the bank will disburse the cheque.
Advantages of EDI:
Through the implementation of EDI computers electronically exchange business documents with
each other with a minimum of human intervention thus reducing operating costs, administrative errors, and
delivery delays. The benefits accruing from EDI implementation can broadly be given as under;
Orders from the customers can be analyzed and executed without any delay.
Orders can be raised to reflect both demand and stock availability.
Carriage by road, rail, sea or air can be booked simultaneously, and
Customers clearance can be obtained even before the goods arrive.
All this can be done without any paperwork.
E- Mail:
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E-mail is the exchange of text message and computer files over a communications network such as
a local area network or the internet, usually between computers or terminals. It is also defined as an
electronic text message.
Internet:
Internet is the world wide collection of networks and gateways that use the TCP / IP suite of
protocols to communicate with one another. At the heart of the internet is a backbone of high speed data
communication lines between major modes or host computers, consisting of thousands of commercial,
government, educational and other computer systems, that route data and messages. One or more internet
nodes can go off line without endangering the internet as a whole or causing communications on the internet
to stop.
Advantages of E- commerce:
Provides with easy shopping: Shopping on the internet provides with a fascinating experience. In
traditional shopping a busy customer has to travel all the way to a local store to purchase things. If
he is not satisfied he goes to another shop and so on. In the process he will be wasting lot of time
and energy. A busy person finds it difficult to go in search of a product of his liking. On the other
hand, a potential customer can turn to web; browse different shops and place orders for a variety of
articles without wasting his precious time and energy.
E-commerce saves operating costs by eliminating human intervention in order processing.
E-commerce is a round the clock advantages for the customer. E-commerce allows a fast and
flexible execution and response to the market opportunities. The web enables a company to
introduce a new product, get immediate customer reaction, refine and perfect without heavy
investment and with much greater assurance of success.
Disadvantages of E-commerce:
Web shopping differs from traditional shopping in many ways. One of the most important differences
is web shoppers inability to browse a virtual store for merchandise. In a real store the customer can
walk through the general area looking for the merchandise required by him before homing in on the
exact product he wants to buy. One the other and an online shopper turns to search tools to locate
products.
In personal inspection one can select or reject the merchandise several times before he finalizes the
transaction and makes payment. But in online shopping he cannot do so. He cannot also look back
into contents of his basket to decide whether his shopping is complete or not.
Many commerce sites do not allow order checking and cancellation. Naturally, a customer would
like to know whether his order has been executed or not. If not, reasons for the same. In addition to
that customer may change his mind, items may get lost and cheques may bounce. A good commerce
site must allow order revision and monitoring but in practice many commerce sites do not.
Customers who browse the commerce web sites do not take a fixed route. They enter in some page
or the other at random and try to come out early to another product page, home page, check out page
or the customer registration page. Many commerce sites are not designed to facilitate such an easy
entry and exit (navigation).
E- Commerce may further widen the gap between the haves and have-nots. On line business
transactions require a computer and an internet connection, which have not yet come within the reach
of a common man. Hence, E commerce and internet may further marginalize the poorer population
groups and countries.
EXPLAIN THE FUNCTIONS OF MARKETING ON INTERNET.
E- BUSINESS:
E Business is about using the convenience, availability and world wide reach to enhance existing
businesses or creating new virtual business.
IBM defines e - business as a secure, flexible and integrated approach to deliver differentiated
business value by combining the system and processes that run core business operators with the simplicity
and reach made possible by internet technology.
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E - Business combines the traditional information systems with the vast reach of the web and conned
critical business systems directly to critical business constituencies customers, employees, and suppliers,
via intranets, extranets and via the web.
E Business can be divided into three areas;
They are
Within the organization
Business to business (B2B)
Business to customer (B2C) transactions.
With in the organization:
E Business within the organization uses the intranet. The intranet uses internet standards for
electronic communication. People on the intranet are able to see organization specific web sites.
Because of firewalls and other security measures outsiders cannot have access to these organization
specific intranet websites.
The intranet web sites allow the employees to obtain information and place order online.
Depending on the security policies of the organization of company, people may be allowed to
connect over the internet is a virtual private network (VPN) to the intranet using encryption lines and strong
authentication for identification purposes.
Business to business (B2B) dealings:
The second area is the business (B2B) dealings. B2B dealing takes place over the extranet.
The extranet consists of two intranets connected via the internet, whereby two organizations are
allowed to see confidential data of another.
B2B networks have existed long before the internet came into use.
Many organization have had used private networks to deal with their business partners.
But maintaining the private networks proved too expensive to the business concerns.
Cost of usage of B2B solutions through the internet have come down dramatically use of private
networks (VPNs) keep the costs low at the same time keeping the business transactions private.
Business to customer (B2C) transactions:
The third area of e - business to customer transactions. This is selling the goods and services through
the internet to the innumerable customers spread all over the world. In this, business concerns establish
virtual shops and offer goods and services to whoever visits the website.
E- Business categories:
Super set of electronic business is a business cases.
E- Commerce is one of the aspects of e - business.
International electronic commerce
International electronic commerce (IEC) involves crossborder transactions through computer networks. It
is a subset of electronic commerce (E-commerce), which itself generally involves buying or selling on line.
Definitions of IEC vary widely, although general agreement exists that an international electronic commerce
transaction must involve an on-line commitment to sell a product that results in the import or export of
goods or services. The value of IEC is not generally measured, as only one private research firm has made
an estimate of its size. The estimate suggests that IEC accounts for a small portion of overall international
trade.
How Is International Electronic Commerce Defined?
There is no widely accepted, specific definition for international electronic commerce. Nevertheless, several
government and private-sector entities have developed functional definitions of electronic commerce so that
they can collect useful statistics.1 These efforts have led to a general acceptance of transaction-based
definitions, many of which require an on -line commitment to sell a good or service for an activity to be
categorized as electronic commerce. In a transaction-based definition, electronic commerce is restricted to
buying and selling, as distinct from conducting E-business. E-business includes all aspects of on -line
business activitypurchasing, selling, tracking inventory, managing production, handling logistics, and
supplying communications and support services. Therefore, international electronic commerce, as a subset
of overall electronic commerce, can be generally defined as any transaction that involves an on-line
commitment to purchase and results in the import or export of goods and services.
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