47351398.

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INTERNET MARKETING.

BACHELOR OF MANAGEMENT STUDIES

(MANAGEMENT STUDIES)

SEMESTER V

ACADMIC YEAR

2010-11

SUBMITTED BY

NAGESH SATAM

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TBMS 31

________________________________________________________

SMT.PARMESHWARIDEVI DURGADUTT TIBREWALA

LIONS JUHU COLLEGE

OF ARTS, COMMERCE AND SCIENCE

J.B.NAGAR. ANDHERI (E). MUMBAI- 400059

INTERNET MARKETING.

BACHELOR OF MANAGEMENT STUDIES

(MANAGEMENT STUDIES)

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SEMESTER V

SUBMITTED

In partial fulfillment of the requirements

For the Award of degree of bachelor

Management studies

BY

NAGESH SATAM

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SMT.PARMESHWARIDEVI DURGADUTT TIBREWALA

LIONS JUHU COLLEGE

OF ARTS, COMMERCE AND SCIENCE

J.B.NAGAR. ANDHERI (E). MUMBAI- 400059

SMT.PARMESHWARIDEVI DURGADUTT TIBREWALA

LIONS JUHU COLLEGE

OF ARTS, COMMERCE AND SCIENCE

J.B.NAGAR. ANDHERI (E). MUMBAI- 400059

CERTIFICATE

This is to certify that Mr.NAGESH SATAM of bachelor management

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Studies Semester V (2010-11) has successfully completed the project on INTERNET

MARKETING under the guidance of Mrs. NEETA
PARMAR.

Course co-ordinator Principal

College seal

Project guide/ Internal Examiner External

Examiner

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DECLARATION

I am NAGESH SATAM the student of bachelor of management studies

Semester V (2010-11) hereby declare that I have completed the project On
INTERNET MARKETING. The information submitted in true and original
to the best of my
knowledge.

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Signature of student

NAGESH SATAM

ACKNOWLEDGEMENT

I would like to thank the teaching faculty of “SMT. PARMESHWARIDEVI

DURGADUTT TIBREWALA LION JUHU COLLEGE OF ARTS,
COMMERCE
AND SCIENCE” Affiliated to the University of Mumbai for their excellent
Suggestion
A special thank to Mrs. Neeta Parmar our respected Professor for her
constant
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encouragement and guideline from the beginning to the end with never
ending
patience. Her constant support and efforts helped me to complete my project
on
time.
I would also like to take an opportunity to thank all friends for co-operating
with
me and to all the people who are directly or indirectly connected to the
above
project. And I also want to thank our Principal Mrs.Trishala Mehta for her
co-
operation during the time of completion of the project..
I would also like to thank our respected Professors like, Mrs. Nanda Indulkar
our co-ordinator and our Librarian Attendant Subhash Kawade, without
whom the project would have not come to an end.
.

NAGESH SATAM
TBMS :31

Date:

Place: Mumbai

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INDEX

S.NO. CONTENTS PAGE

NO.
1 ACKNOWLEDGEMENT 3
2 DECLARATION 4
3 CERTIFICATE BY GUIDE 5
4 INTRODUCTION TO THE PROJECT 6
5 EXECUTIVE SUMMARY 8
6 INDUSTRY PROFILE 9
MARKETING MANAGMENT
7 CHAPTER 1- INTRODUCTION AND 13
HISTORY OF THE COMPANY
8 CHAPTER-2 OBJECTIVE AND SCOPE 25
9 CHAPTER-3 RESEARCH METHODOLOGY 26
10 CHAPTER-4 DATA ANALYSIS AND 28
INTERPRETATION
11 CHAPTER-5 LIMITATIONS 39
12 CHAPTER-6 FINDINGS 40
13 CHAPTER-7 SUGGESTIONS AND 41
RECOMMENDATIONS
14 ANNEXURE 42
15 PRODUCT PROFILE 45

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CHAPTER=1

INTRODUCTION TO INTERNET MARKETING

These days internet marketing is a broad church that can be defined as the
'use of the internet to advertise and sell goods and services'. Essentially
anything that is a service and which can make money on the internet is and
can be interpreted as internet marketing. The Internet has brought media to a
global audience. The interactive nature of Internet marketing in terms of
providing instant responses and eliciting responses are the unique qualities
of the medium. Internet marketing is sometimes considered to be broad in
scope because it not only refers to marketing on the Internet, but also
includes marketing done via e-mail and wireless media. Management of
digital customer data and electronic customer relationship management
(ECRM) systems are also often grouped together under internet marketing.
networks, the authors found the potential for collecting data upward of 2,500
times on average per user per month.

MEANING
Market=”Place where buying and selling of goods and service took took
place”

Process of getting to the market is marketing.

Marketing is a process of communication.

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INTERNET MARKETING is also reffered as:-

1) I-Marketing

2) Web Marketing

3) Online Marketing

4) Electronic marketing.

1.1)What is e-Marketing?

E-Marketing is a subset of E-Business that utilizes electronic medium to

perform marketing activities and achieve desired marketing objectives for an
organization. Internet Marketing, Interactive Marketing and Mobile Marketing
for example, are all a form of e-Marketing.

Meaning
The term E-Marketing is one that simply stands for the marketing of products
over the Internet. It is thanks to the Internet that we are greeted with lower
costs and greater capabilities for the distribution of information and media to a
global audience. Here at Article Alley we appreciate the importance of this
form of marketing, which is why we have dedicated this section completely to
E-Marketing. It is here that you will find all of the latest information, help and
advice to do with all aspects of E-Marketing through the articles that are
submitted by our authors. These articles are then yours to use as you please,
you may simply want to read them to find out a particular piece of information
or you may want to include them on your website, the choice is yours so enjoy

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and keep checking back as we are inundated with new articles on a daily
basis.

Definition:

E-Marketing, or Electronic Marketing is the act of trying to achieve marketing

objectives through electronic or digital means. Most E-Marketing campaigns
are performed through the use of Internet-based content, such as
E-News letters and emails..
• E-marketing, Internet marketing and Digital marketing are
defined in this article based on the introduction to my
Internet marketing book.

1.2) FEATURES OF INTERNET MARKETING

– In the electronic age it is all about internet marketing. It has found a

firm foothold in the marketing world. What is internet marketing?

When a product is sold in the market through internet it is known as
internet marketing. Many people spend a lot of their time on the
internet so the markets for the products in internet are very huge.
Nowadays people depend more and more on the internet marketing as
the cost that is involved in the distribution of information to the
people is reduced drastically.There are a few salient features that have
to be said about internet marketing. It allows for a larger coverage of
people than the other traditional marketing practices. It is a
combination of both the creative aspects and the technological

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features of marketing. It involves the structured method of sales,

advertisements and product development. The internet marketing
covers various services like behavioral marketing, digital marketing,
E-mail marketing, displays and advertisements in the web pages.
Interactive advertising is possible in internet marketing. Market
research can also be undertaken through internet marketing. The other
services that are rendered are pay per click, blogging and software
based marketing. The other important aspect to be kept in mind about
internet marketing is that it does not only mean advertisements alone
but it strives to work with a cohesive strategy keeping in mind the
principles and the target of the company through the proper
advertisements and the media available to reach the given market.
This kind of marketing differs from the other traditional types of
marketing like personal selling and advertising in television and
newspapers. The best thing about internet marketing is that it is
comparatively less expensive than traditional marketing methods.
Customers can check out the product features and compare the
product with other similar products before making a purchase
decision. Online purchases can be made at any time of the day or
night. Another important feature about internet marketing is that its
effectiveness can be statistically measured and tested. The potential
customers click the advertisements on various websites. They click on
the banners also. It is always possible to monitor how many clicks
have been made on the various advertisements and the banners. They
can be electronically tracked and the statistical data can be provided
about the number of people who have seen the particular product. This
kind of accurate statistical data is not possible in the other traditional
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advertising methods like books, magazines or pamphlets where it will

be impossible to determine how many potential customers have had a
look at the product. The image of the particular brand and its design is
imprinted in the customers’ minds.

However, not all features about internet marketing are positive.

Internet marketing requires the use of latest technology. Today,
internet technology is growing at such a rapid pace that what may
seem unique today becomes obsolete tomorrow. Internet marketers
have their work cut out for them. They have to design their online
marketing websites in such a way that there is flexibility to
incorporate future technological changes. The scope for online
business is huge. It is up to online businessmen to take advantage of
the business opportunities the World Wide Web provides.

FEATURES OF INTERNET MARKETING

1) Internet marketing allows global marketing facility – Internet service is

not for local purpose it allows global accessibility.

2) It is less expensive – The cost involved in internet marketing is very less

compared to other marketing strategies.

3) It makes marketing easier – You can find out both buyers and sellers
online.

4) Through internet marketing, you can sell your products and services and
encash your bills from anywhere.

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5) It increases the choice of products, services and sellers.

6) Vast availability of information.

Unlike other marketing media such as television, radio, news paper and
other printed media, internet marketing is growing rapidly and obtaining
recognition. The features of internet marketing also include effective sales
promotion activities, complete description about the product, company,
price, use, and many more.

*3 key essential features of internet marketing

Internet marketing has revolutionized the fields of marketing and advertising

.As now a day’s internet marketing is at its peak with the internet reaching
out to a global market. Thus this is the best possible way to target maximum
number of potential clients. Below are the top 3 ways of successful
marketing for net-entrepreneurs.

1) Email marketing is an essential part of internet marketing. It builds up list

of the right kind of consumers for your products that you hope to target and
obtain their email address. Through it we can send out not only product
information at certain but also include some freebie or incentive, this does
not need to be a high value product but definitely something important to
your client base, doing this ensures that your emails are not ignored or put in
spam. Sending emails in regular intervals is key factor to retain clients.

2)Advertising the product is the best way to do so, and it is very important
to present yourself well to your prospective clients by having a well
organized and well designed website because your online presence is

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defined by the first thing a person sees when they visit you to buy your
products. Your website must present a professional and reputed company
capable of building trust. Keep your banner ads tasteful and pertaining to the
product.

3) And if you have a product to sell, you have to promote it by advertising

on different sites in a attractive and informative way. The internet is a place
where content rules and every webmaster will love getting free content so
you can establish your name in the market. Articles are quickly becoming an
essential promotional part of internet marketing. Articles should be well-
written, and in concise form so that distribution become easy. Articles are
also excellent freebies when combine into an e-zine or site downloads

TYPES OF INTERNET-MARKETING

1) B2B(Business 2 Business) =

Definition =Business that sells products or provides services to other

business
(Business-to-Business) Between separate businesses. B2B is a handy term
used to describe transactions, collaborations or other interactions that span
separate business entities. It is used to distinguish these external interactions
from those that occur within a single organization, and also from those that
run from businesses to individuals (ie business-to-consumer, or B2C).
.
While business-to-business activity exists both online and offline, the acronym
B2B has primarily been used to describe the online variety.
There has been a significant amount of hype given to the potential size of B2B
markets--and how much bigger B2B will be than B2C. Despite the potential
size, however, some B2B markets may be overcrowded, too.

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2) B2C (Business 2 Consumer)

Definition =Business that sells products or provides services to

end-user consumers
Business-To-Consumer. A transaction that occurs between a
company and a consumer, as opposed to a transaction between
companies (calledB2B). The term may also describe a company
that provides goods or services for consumers.
While business-to-consumer activity exists both online and offline, the
acronym B2C has primarily been used to describe the online variety.
B2C businesses played a large role in the rapid development of the
commercial Internet in the late 20th century. Large sums of venture capital
flowed to consumers in the form of free online services and discounted
shopping, spurring adoption of the new medium.
When the capital markets turned sour, however, the B2C companies were
among the first to fall, and they fell fast. Many companies tried to follow the
herd of investors by undergoing a B2C to B2B makeover.
The term B2C, once popular, is now less frequently used, and the infrequent
references are often followed by "...is dead." However, some analysts still
predict that consumer businesses will thrive online, just not as big and fast as
initially predicted. This is not news, of course, to the many niche businesses
that are already enjoying success online.

3) C2C (Consumer to Consumer)

Definition
In internet commerce, means through which consumer s interact
with other consumers through online auctions.

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C2C refers to consumer to consumer commerce. This means that a

consumer sells something to another consumer. A good example of
a C2C consumer to consumer commerce website is eBay. eBay is
basically an auction site that facilitates sales by one consumer to
another.
Traditionally, C2C consumer to consumer sales occurred at flea
markets or swap events when people sold second hand goods to
somebody else. This may include monetary compensation or it
may simply be a swap, where somebody exchanges something for
something else.
These C2C consumer to consumer sales are normally once-off
transactions. For example, somebody may sell off their old
household goods or similar. Traditionally, people had to expend a
lot of time to engage in C2C commerce. For example, somebody
had to visit a local market. The latest breed of C2C consumer to
consumer websites has much improved the process. For example,
it now only takes a few minutes for a consumer to visit a poplar
auction website to sell off unwanted goods to other consumer.

8 Popular Types of Internet Marketing

. The internet has changed the way we do business. In fact, many would
agree it's one of the most useful inventions in history. Because of the web
and email we can now make our services and products available globally,
and we can keep in constant contact with our customers. Internet marketing
is an important part of your success online. Here are 8 popular types of
internet marketing.

1. PPC =Pay Per Click programs allow you to create an ad that is linked to
a keyword(s). You can create as many ads as you want. Google and Yahoo
both have pay per click programs. If you aren't familiar with PPC programs,

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you choose what you are willing to pay per click. The more you pay per
click the higher in the search engines your ad will appears. The rate per click
can be anywhere from pennies per click to hundreds of dollars per click.

2. SEO = Search engine optimization is a good way to increase the amount

of traffic your site gets. In fact, it's a fundamental internet marketing
technique. When you SEO your site you will remove all the things that stand
in the way of traffic reaching your site. This includes excessive code that the
search engines don't like. It also includes having plenty of relevant keywords
and then optimize your site pages around those keywords. Each page can be
optimized to different keywords.

3. Banner Ads = These ads contain graphics that are colorful, animated,
and catchy that will appear across the top or bottom of the web page. There
are also vertical ads called sky scrapers which appear either on the right or
left side of the page. Whichever type of ad appears on the page these ads
will link to another website. In this case the other website is yours. Avoid
animated ads. Statistically they are not as effective as ads that are just catchy
without motion.

4. Google AdSense = With this program you'll have ads of other websites
appear on your site. Each time one of these ads is clicked you'll make
money. How much varies depending on the keyword associated with the ad.
You can block out your competitors so they don't appear on your site. The
flip to this is when you purchase ads which will appear on other websites
creating a link back to your site and improving your search engine ranking.
These ads are not annoying like some styles like popups. In fact, they can be
very effective at generating targeted traffic.
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5. Online Magazines - You buy ad space for a fee much like you would
for a print magazine. The fee depends on how much traffic the magazine
generates. You can do an excellent job of targeting your ads to your desired
market.

6. Online Newsletters - Here's a way that lets you develop a relationship

between you and your customers. It lets you keep them up to date about
changes, new products and services, and it's also a method of providing
helpful tips. You can start with your core customer base and include a
request for these customers to forward the newsletter to their friends. There
should be an opt in and opt out option at the bottom of the newsletter. You
can also have an opt in on your website. You'll be amazed at how fast your
newsletter grows.

7. Website Lead Generation = These services provide you with

qualified leads and you pay a price per lead that's established in the
beginning. These companies find potential leads a variety of ways including
cold calls. Lead generation services guarantee a return on investment and
leaves your staff free to do other tasks.

8. Online Directories = There are all kinds of online directories and city
guides, as well as the online yellow pages. You can feature yourself under
the appropriate category or area. So for example, if you service the LA area
then you could have yourself listed in Los Angeles or if you sell women's
fashion then you could be under the fashion category. With most directories
a general listing is free and then you can purchase additional advertisements
if you like.

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This is just 8 popular types of internet marketing. There are plenty of others
you can use. In fact, most times the more the better. However, one thing you
need to remember is that you don't get the opportunity for personal
interaction with the potential customer and so you must make sure you do a
good job of portraying your message online.

E-Marketing Strategy

The E-Marketing Strategy is normally based and built upon the principles
that govern the traditional, offline Marketing – the well-known 4 P's
(Product – Price – Promotion – Positioning) that form the classic Marketing
mix. Add the extra 3 P's (People – Processes – Proof) and you got the whole
extended Marketing mix.
Until here, there are no much aspects to differentiate e- Marketing from the
traditional Marketing performed offline: the extended Marketing mix (4 + 3
P's) is built around the concept of "transactional" and its elements perform
transactional functions defined by the exchange paradigm. What gives e-
Marketing its uniqueness is a series of specific functions,
relational functions, that can be synthesized in the 2P + 2C+ 3S formula:
Personalization, Privacy, Customer Service, Community, Site, Security,
Sales Promotion.
These 7 functions of the e-Marketing stay at the base of any I- Marketing
strategy and they have a moderating character, unlike the classic Marketing
mix that comprises situational functions only. Moderating functions of e-
Marketing have the quality of moderate operate upon all situational
functions of the mix (the classic 4 P's) and upon each other.

1. Personalization
The fundamental concept of personalization as a part of the e- Marketing
mix lies in the need of recognizing, identifying a certain customer in order to
establish relations (establishing relations is a fundamental objective of
Marketing). It is crucial to be able to identify our customers on individual
level and gather all possible information about them, with the purpose of
knowing our market and be able to develop customized, personalized
products and services.

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For example, a cookie strategically placed on the website visitor's computer

can let us know vital information concerning the access speed available: in
consequence, if we know the visitor is using a slow connection (eg. dial-up)
we will offer a low- volume variation of our website, with reduced graphic
content and no multimedia or flash applications. This will ease our
customer's experience on our website and he will be prevented from leaving
the website on the reason that it takes too long to load its pages.
Personalization can be applied to any component of the
Marketing mix; therefore, it is a moderating function.

2. Privacy
Privacy is an element of the mix very much connected to the
previous one – personalization. When we gather and store
information about our customers and potential customers
(therefore, when we perform the personalization part of the e-
10
Marketing mix) a crucial issue arises: that of the way this
information will be used, and by whom. A major task to do when
implementing an e-Marketing strategy is that of creating and
developing a policy upon access procedures to the collected
information.
This is a duty and a must for any conscious marketer to consider all aspects
of privacy, as long as data are collected and stored, data about individual
persons.
Privacy is even more important when establishing the e- Marketing mix
since there are many regulations and legal aspects to be considered regarding
collection and usage of such information.

3. Customer Service
Customer service is one of the necessary and required activities
among the support functions needed in transactional situations.
We will connect the apparition of the customer service processes to the
inclusion of the "time" parameter in transactions. When switching from a
situational perspective to a relational one, and e-Marketing is mostly based
on a relational perspective, the marketer saw himself somehow forced into
considering support and assistance on a non-temporal level, permanently,
over time.
For these reasons, we should consider the Customer Service function (in its
fullest and largest definition) as an essential one within the e-Marketing mix.

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As we can easily figure out, the service (or assistance if you wish) can be
performed upon any element from the classic 4 P's, hence its moderating
character.

4. Community
We can all agree that e-Marketing is conditioned by the
existence of this impressive network that the internet is. The
merely existence of such a network implies that individuals as
well as groups will eventually interact. A group of entities that
interact for a common purpose is what we call a "community"
and we will soon see why it is of absolute importance to
participate, to be part of a community.
The Metcalf law (named after Robert Metcalf) states that the value of a
network is given by the number of its components, more exactly the value of
a network equals the square of the number of components. We can apply this
simple law to communities, since they are a network: we will then conclude
that the value of a community rises with the number of its members. This is
the power of communities; this is why we have to be a part of it.
The customers / clients of a business can be seen as part of a community
where they interact (either independent or influenced by the marketer) –
therefore developing a community is a task to be performed by any business,
even though it is not always seen as essential.
Interactions among members of such a community can address any of the
other functions of e-Marketing, so it can be placed next to other moderating
functions.

5. Site
We have seen and agreed that e-Marketing interactions take
place on a digital media – the internet. But such interactions and
relations also need a proper location, to be available at any
moment and from any place – a digital location for digital
interactions.
Such a location is what we call a "site", which is the most widespread name
for it. It is now the time to mention that the "website" is merely a form of a
"site" and should not be mistaken or seen as synonyms. The "site" can take
other forms too, such as a Palm Pilot or any other handheld device, for
example.

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This special location, accessible through all sort of digital technologies is

moderating all other functions of the e-Marketing – it is then a moderating
function.

6. Security
The "security" function emerged as an essential function of e-
Marketing once transactions began to be performed through
internet channels.
What we need to keep in mind as marketers are the following
two issues on security:
•security during transactions performed on our website, where
we have to take all possible precautions that third parties will
not be able to access any part of a developing transaction;
•security of data collected and stored, about our customers
and visitors.
A honest marketer will have to consider these possible causes of further
trouble and has to co-operate with the company's IT department in order to
be able to formulate convincing (and true, honest!) messages towards the
customers that their personal details are protected from unauthorized eyes

7. Sales Promotion
At least but not last, we have to consider sales promotions when
we build an e-Marketing strategy. Sales promotions are widely
used in traditional marketing as well, we all know this, and it is
an excellent efficient strategy to achieve immediate sales goals
in terms of volume.
This function counts on the marketer's ability to think creatively: a lot of
work and inspiration is required in order to find new possibilities and new
approaches for developing an efficient promotion plan.
On the other hand, the marketer needs to continuously keep up with the
latest internet technologies and applications so that he can fully exploit
them.

*7 P's of Marketing on the Internet

The four P's - Product, Price, Place and Promotion have long
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been associated with marketing, but things have changed on

the new marketing era has introduced 3 more P’s in it.

1) The Product on the Internet usually changes form

Online, and the user experiences it electronically, in the
form of text, images and multimedia. Physical goods are usually presented
in the form of a detailed online catalogue that the customer can browse
through. Technology allows the user to virtually touch and feel the product
on the Internet - rotate it, zoom in or zoom
out and even visualize the product in different configurations and
combination. Content and software are two avatars of digitized products that
can be even distributed over the Internet. On the Internet, E- marketing will
be based more on the product qualities rather than on the price. Every
company will be able to bring down the cost of its products and hence
competition will not be on price. It will rather be on the uniqueness of the
product. To be able to attract the customers and retain them, the company
will have to
10 provide nouvelle and distinct products that forces the
net users to purchase and come back for more.

2) The Price has been drastically changed over the

Internet. It lets the buyer decides the price. Also it gives the buyers
information about multiple sellers selling the same product. It leads to best
possible deal for the buyers in terms of price. A website named

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Priceline.com is extremely popular as its compares the price of many airlines

and offers the least price to the buyer. Pricing is dynamic over the Internet.
3) The Place revolves around setting
up of a marketing channel to reach the customer. Internet serves as a direct
marketing channel that allows the producer to reach the customer directly.
The elimination of the intermediate channel allows the
producer to pass the reduced distribution cost to the
customer in the form of discounts.

4) Promotion is extremely necessary to entice the

Customers to its website, as there are currently more than one billion web
pages. Promoting a website includes both online and offline strategies.
Online strategies include search engine optimization, banner ads, multiple
points of entry, viral marketing, strategic partnership and affiliate marketing.
Presently, the cyberspace is already cluttered with thousands of sites
probably selling similar products. For the customers to know of the
Company’s existence and to garner information on the kind of products or
services that the company is offering, promotion has to be carried out. There
can be traded links or banner advertisements for the same. Also the
traditional mediums like print, outdoor advertising and television can be
used to spread awareness.

5) Presentation The presentation of the online business needs

to have an easy to use navigation. The look and the feel of the web site
should be based on corporate logos and standards. About 80% of the people
read only 20% of the web page. Therefore, the web page should not be

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cluttered with a lot of information. Also, simple but powerful navigational

aids on all web pages like search engines make it easy for customer to find
their way around.
6)Processes Customer supports needs to be integrated
into the online web site. A sales service that will be able to answer the
questions of their customers fast and in a reliable manner is necessary. To
further enhance after sales service, customers must be able to find out about
their order status after the sale has been made. For e.g. FedEx
(www.fedex.com), the overnight Courier Company allows its customers to
keep track of the parcel and they are well informed about the present
whereabouts of their package.
7) Personalization Using the latest software from Broad-
Vision and others, it is possible to customize the entire
I–Marketing
web site for every single user, without any additional costs. The mass
customization allows the company to create web pages products and services
that suit the requirement of the user. A customized web page does not only
include the preferred layout of the customer but also a pre selection of goods
the customer may be interested in. For e.g. Yahoo! (www.yahoo.co.in)
entered the Indian cyberspace and started its personalized services. A
registered user of Yahoo can now personalize the front page with the all the
information he needs. He can read the news of the world, add a tax
calculator, see the weather forecasts of his city and listen to his favorite
songs and all this simultaneously.
Understanding the Internet Customers

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Now to be able to use the seven P’s effectively in order to achieve the
predefined goals of any organization it is imperative to understand the
customers. Customization will only be truly effective if we understand our
customers and their true needs.
Before adapting marketing practices to the Internet, the marketer needs to
understand the characteristics of the online customers. The Net users can be
classified into five categories depending upon their intention of using
the Internet.
The five categories of I-Marketing users are:

1) Directed Information Seekers: They require

specific, timely and relevant information about the
Products and services being offered.

2) Undirected Information Seekers: These users

require something interesting and useful. Something that can give them an
edge, advantage, insight or even a pleasant surprise.

3) Bargain Hunters: They are of two kind. One who

look for free items on the internet and other who are
seeking better deals, higher discounts etc.

4) Entertainment Seekers: they see the Web as an

entertainment medium of vast breath and potential and want to explore the
medium before the mass gets there.
5) Directed Buyers: They want to buy something -
now. They are sure what they require and just log on to
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the Web to purchase the item.

EFFECTIVE E-MARKETING TECHNIQUES

Internet Marketing differs from print advertising and person-to-person

marketing, but there are quite a few strategies to reach customers and get
them to buy online. Here are a few of the more popular and effective online
marketing techniques:

1. SEO (Search Engine Optimization) = The more traffic your

Website receives, the more sales you are likely to close. One way to increase
traffic to your site is through SEO (search engine optimization). This means
your Website is clear of any obstacles that would deflect traffic and has
plenty of keywords and metatags to attract search engines. I suggest you hire
someone who knows how to write in code language and create style sheets
rather than set up your own website through one of the templates offered by
email providers.

2. PPC (Pay Per Click) = Another way to bring more traffic to your site
is by using pay per click programs where you create ads and link them to
keywords. Both Yahoo and Google have these programs available. You only
pay when someone clicks on your ad. The rate may be from two cents to
hundreds of dollars per click. The more you pay per click the higher your ad
appears in the search engines.

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3. Google AdSense =It is a program that allows you to generate revenue

by placing other people's text or image ads on your website and in turn have
your ad appear on the pages of sites related to your product or service. You
can filter out your competitor's ad so it does not appear on your Website.
AdSense puts your ad all over the Web and creates links back to your site
which increases your ranking in the search engines. These are not pop up ads
that open a box or new screen while you are trying to read the text of a
Website. Web page, the hyped up ad remains and may be hard to close. Pop
up ads are annoying and along with spamming, they are the worst marketing
schemes available.

4. Banner Ads= This are usually animated, colorful graphics that go

horizontally across the top of a Web page. Sky-scraper Ads are similar but
they run vertically on the left or right side of a page. Both ads link to another
Website (yours) and entice the visitor to leave the page they are on to see
what the other site has to offer. These are losing popularity because people
don't enjoy being distracted by the movement. Ads that don't move or talk
are more effective.

5. E-commerce newsletters = This allow us to develop relationships

with our clients and let them know when we invent something they may be
interested in. You may start with just a few names and email addresses
asking those folks to forward your newsletter (it should have a link to a
permission-based sign up form) to their friends and urge them to sign up.
Before long you have a new client base to market your product. You will not
be spamming since everyone on your list has given you permission to email
them.

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6. Online magazines = It offer ad space for a fee (depending upon the

magazine's popularity and traffic) and may appear for the duration of the
current issue of the magazine. By selecting a magazine that relates to your
product you are able to direct your ad to your target market rather than to a
generic audience.

7. Online city guides or industry directories = Such as

Hellometro.com and CitySearch.com are Yellow Pages on the Internet
instead of in print. They feature businesses in a particular area. For example,
if someone in Atlanta is looking for a toy store, they may use the search
engine to browse the online guide and find all the toy stores within a 10 mile
radius of their zip code. In addition to the general listing which are many
times free, you may purchase an ad for a related page.

8. Website Lead Generation= This provides you with qualified leads at

a set price per lead. These are generated by telemarketing companies who do
cold calling to find potential clients for you. Lead Generation Services
guarantee a particular level of ROI (return on investment) and frees your
staff of marketing efforts.

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Types of E-Markets
1) E-storefront: A single or company Web site where products and services
are sold

2) E-mall (online mall): An online shopping center where many stores are
located
•some are merely directories
•some are actually large click-and-mortar
retailers (e.g., shopping.com)
•some are virtual retailers (e.g., buy.com)

3) E-marketplace: An online market, usually B2B, in which

buyers and sellers exchange goods or services; the three
types of e-marketplaces are private, public, and consortia
a) Private e-market places: Online markets owned by a single
company; can be either sell-side or buy-side marketplaces
i)Sell-side e-marketplace: A private e-market in which a company
sells either standard or customized products to qualified companies
Ii)Buy-side e-marketplace: A private e-market in which a company
makes purchases from invited suppliers
b) Public e-marketplaces: B2B markets, usually owned and/or
managed by an independent third party, that include many
sellers and many buyers; also known as exchanges
c) Consortia: E-marketplaces owned by a small group of large
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vendors, usually in a single industry

THE RISE OF INTERNET MARKETING

Internet marketing has seen a rise in demand year on year. The last few
years have seen an exponential increase in businesses advertising and
marketing over the internet. Internet marketing offers an excellent
opportunity for a business to reduce costs, lower its risks and access an
unlimited global market. Even smaller businesses today realize the true
potential of internet marketing.

According to the research report of Goldman Sachs, India will emerge as the
second largest Internet market in Asia after China with 70 million users by
2009. It estimates that Indian Internet Users will increase by 130%
compounded annual growth rate (CAGR) from 0.5 million users recorded at
end of 2000. Also by March 2008, there will be over 780 Internet Service
Providers (ISPs) and at least 52 private international gateways. As per
preliminary findings of the NASSCOM survey, the total volume of E-
commerce transactions in India was about Rs.131 crore in the year 1999-00.
Out of this volume, about Rs.12 crore were contributed by retail Internet or
Business-to-Consumer transactions, and about Rs.119 crore were
contributed by Business-to-Business transactions. The survey also revealed
that E-Business transactions in India are expected to exceed Rs.3000 crore
during 2004-2006. Out of this, about Rs.500 crore could comprise of retail
transactions. For Business-to-Business transactions, Indian industries are
expected to reach online penetration of 2% by 2003 and 8% by 2009.

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Growth of Internet Marketing – Top Factors

Following are some factors that have contributed to the rise of internet
marketing in recent years:

1) Economic Recession =

The economic recession has forced businesses to rethink their strategy and
reduce business costs. Most businesses have had to reduce operating costs in
order to remain competitive and profitable during volatile economic
conditions. Marketing and advertising have been one of the worst hit
activities of a company. Lower working capital has forces companies to
lower advertising and marketing expenditure. While larger companies have
seen huge reductions in marketing budgets smaller companies and are more
cautious in spending on marketing and promotional activities.

2) Shift from traditional advertising to internet marketing=

The last few years have seen a shift from traditional marketing methods
towards advertsing on the internet. Leading newspapers, magazines and
other publications have seen a fall in demand while online publications and
portals have benefited from increasing advertising demand. Search engines
such as Google and Yahoo have seen one of the largest increase in demand
over the last few years. Social networking websites such as My Space and
Face book have also reported a similar rise in advertising demand. Online
advertisements forms the largest revenue stream for many established
websites and portals. A recent study published in the Guardian Newspaper
has reported that online advertisers are continuing to spend more in spite of

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poor overall sales. This can be largely attributed to the shift in advertising
practices by businesses.

According to marketing analysts, increased competition by businesses on the

internet may cause growth to slow a little in the future. However in spite of
this total spending on online advertising spend is still expected to increase
manifold over the coming years.

3) Changes in Consumer behaviour =

There are approximately 1.5 billion internet users in the world today and the
it is growing every month. The sheer size of internet population provides
businesses with a global platform to do business in. In many countries,
eCommerce sales are growing faster than traditional high street sales. Online
sales in UK for 2008 crossed the 50 billion mark, which was an increase of
almost 27% from the previous year. Similar trend is being witnessed in
many parts of the world. Today, a significant percentage of business is either
done online or is influenced in some way by the internet.

Studies and reports published recently have only confirmed the strength of
internet marketing in UK.

According to the latest UK e-Retail report published by a leading

independent research organisation, online retail purchases is expected to
cross the £20 billion mark in 2009. This is an increase over 13 per cent
from the last year.

Similar trends are also being experienced in Other international markets. In

US, while the end of last year proved to be one of the worst performing

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months for retail sales, the mood in the online market was upbeat as internet
companies continued to predict positive growth in sales.

4) Growth of video advertising =

The growth of Video on the internet has also been an instrumental factor in
the emergence of online advertising. The continued rise of broadband is a
key factor in its growth. Video on demand over the internet has proved
popular among businesses who are now able to deliver a level of
interactivity that was previously unimaginable. Marketing Experts predict
online video advertising to be one of the fastest growing marketing channels
in the coming years. video over the internet allows businesses to deliver
innovative TV style advertising at a much lower cost.

A leading internet marketing research group forecasts an over 30 percent

increase in online video ad spending this year. Even TV Networks and stations
are now moving their programming on the internet, creating environments that is
appealing to major advertisers. Many businesses now see online video
advertising as being complementary to advertising on television.

5) Growth of Mobile advertising =

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The rise internet usage on mobile devices o Mobile advertising in the form
of text messages and more recently SMS have already been in existence
for quite some time. However new areas such as videos, interactive
banners and search advertising are changing the face of mobile
advertising by offering new opportunities to offer an innovative and
enriching user experience

offers a new advertising channel on the internet. Mobile internet has been
one of the fastest growing areas of the internet. The wide availability of low
cost, high quality multimedia phones and wide availability high speed
mobile networks are largely attributed to be the main factors for the
exponential growth of internet usage on handheld devices. Mobile
advertising thus offers a great opportunity for marketing.

Impact of the Internet Marketing across

the
globe:


530 million users connected to the Internet worldwide =

8.5% of the global population,


Developed nations = 15% of the world’s population

= 88% of all Internet users,


U.S. Internet users = 182 million

= 64% of the population,


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Indigenous peoples in remote locations gaining health, legal, and

other advice, or selling native products using the Internet

GROWTH OF INTERNET MARKETING IN India

The Internet marketing has been increasing around in India since last 5
years. However, e-commerce has picked up only recently and Online
Marketing is slowly growing up in India too.
Currently, most of the business people were doing their business through
online due to more
technology development and internet users across the India.

India is the fastest growing internet market in the world with over 23 million
active Internet users, holding out prospect of a larger growth in the number
of citizens

The top eight metros were driving the growth of internet in India with fast
growing adoption in smaller cities, said Manish Agarwal, Vice-President
(Marketing) of rediff.Com, one of the leading online community portals.

Kolkata accounted for 1.05 million active users and was ahead of technology
hubs like Bangalore (0.97 million) and Hyderabad (0.95 million).

Kolkata also had the highest percentage of 'innovators' among online users
in the country, he said after launch of rediff's new multimedia application
'iShare'.

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Day by day, online shopping is truly catching on in India, traditional brick

and mortar stores are also getting the hand of doing business online. The
trends demonstrate that traditional stores will keep on doing sufficient
business while the online stores increase their virtual presence on the
internet.
The internet is also proving to a boon in disguise for many small and
medium enterprises,
which are joining hands with major Indian online portals to display their
products and
advertise their services.
Internet Marketing is one of today’s fastest growing marketing
opportunities. With the use of today’s Internet Marketing medium one can
open doors to potential client who will be able to search and seek your
website through the use of Search Engines.

.Critical Success factors in E-Marketing

Having observed the evolving paradigms of business in the Internet era,
there are three critical success factors that the E- Marketer has to keep in
mind.
1)Attracting the Right Customer is the first crucial step =
Rising digital penetration would mean that the number of customer visiting
particular sites would inevitably go up. While the number of eyeballs or
page views has so far been conveniently used as a satisfactory measure by
most web sites, it would be foolish to cater to the whole spectrum of digital
visitors. Content has to be very target specific. The digital I -Marketing
company has to select its target segment by finding out which section of
customers are the most profitable in terms of revenue transactions and who
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are the customers who generate the maximum number of referrals. Here
again it is important to note that the majority of online customers are not
seeking the lowest price. Rather they are seeking convenience above
everything else. The power of customer referrals has never been so
enormous, since word of the mouse spreads faster than word of the mouth.
E-Bay attracts more than half of its customers through referrals. Not only do
referred customers cost less to acquire than those brought in by advertising
or other marketing tools, they also cost less to support since they use their
friends who referred them for advice rather than using the companies’ own
technical desk.
2)Delivering Content Value to engage the user’s interest=
Is the critical importance in retaining customer participation? This is
because content serves as a powerful differentiator. Content would include
Product enhancements (Software patches for glitches), personalized
interactions (through customized 22 navigation paths as seen on the web
sites of GM and Toyota) and Problem Resolution (updates of delivery
schedules and e-mail responses). Integral to the concept of delivering proper
content value is innovation. The retail financial services industry, for
example, is changing rapidly with multiple players jockeying for position.
Product innovation serves as a key tool to attract new customers.
Priceline.com, for example, has revolutionized the travel and related services
business by letting in a form of “buyer driven commerce”----Customers
specify their desired prices and competing companies then bid for customer
requirements. Delivering proper content to make existing customers in the
traditional “brick” business switch to Web-enabled transactions makes a lot
of sense because in every conceivable case, the cost of a Web-Based
transaction is an order of magnitude less than the traditional ways and is
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decreasing at a faster rate. The cost of an Internet based banking transaction

is less than one-tenth the cost of a human teller transaction. It is keeping this
aspect in mind that Indian Banks have started toying with the idea of setting
up Internet kiosks to let their low-value customers settle
3)Ensuring E-Loyalty is vital to the success of any online venture
This is because acquiring customers on the Internet is enormously expensive
and unless those customers stick round and make lots of repeat purchases
over the years, profits will remain elusive. Contrary to the general view that
Web customers are notoriously fickle, they in fact follow the old rules of
customer loyalty. Web customers stick to sites that they trust and with time
consolidate their purchases with one primary supplier to the extent that
purchasing from the supplier’s site becomes part of their daily routine. The
issue of trust is integral to the issues of privacy and security. Companies like
Amazon.com, which command amazing levels of consumer trust, have used
a variety of encryption tools ad simple ethical decisions like not accepting
money for publishers for independent book reviews to maintain the trust of
its customers

Advantages of Internet Marketing

Advantageshas a number of advantages, and is becoming increasingly

popular. In a world where more and more users are being connected to the
internet every day, the ability to market your business effectively is
becoming more crucial to success. That said, there are also certain
limitations on marketing online that will need to be taken into account.
Knowing the pros and cons of online marketing will allow you to promote

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your business and products in the most effective way possible, and here
we’ll take a brief look at some of the various advantages and disadvantages
of how web promotion works

1) Internet marketing is relatively inexpensive when compared to the ratio of cost

against the reach of the target audience. Companies can reach a wide audience
for a small fraction of traditional advertising budgets. The nature of the medium
allows consumers to research and purchase products and services at their own
convenience. Therefore, businesses have the advantage of appealing to
consumers in a medium that can bring results quickly. For example a roller

shades and blinds manufacturer can have his business on internet. The
company can market their different blinds product and woven wood shades
easily on internet. The strategy and overall effectiveness of marketing campaigns
depend on business goals and cost-volume-profit (CVP) analysis.

2) Internet marketers also have the advantage of measuring statistics easily

and inexpensively. Nearly all aspects of an Internet marketing campaign can
be traced, measured, and tested. The advertisers can use a variety of
methods: pay per impression, pay per click, pay per play, or pay per action.
Therefore, marketers can determine which messages or offerings are more
appealing to the audience. The results of campaigns can be measured and
tracked immediately because online marketing initiatives usually require
users to click on an advertisement, visit a website, and perform a targeted
action. For term life insurance agents, a online term life quotes can work as
good marketing tool and it’s easy to track it too because it require to click
online term life insurance quote too. Such measurement cannot be achieved
through billboard advertising, where an individual will at best be interested,
then decide to obtain more information at a later time.

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3)Internet marketing has many advantages that make it an attractive way to

promote a business. It is fairly inexpensive, especially when compared to other
forms of advertising, when it comes to the ratio of cost for reaching a target
audience. Businesses are able to access a gigantic viewer base for a small
amount of money, and consumers are able to look into and purchase products
when it is convenient for them. This in turn allows businesses to convert their
advertising into sales much more quickly than ever before. The general
marketing plan for an online business (or a business that buys advertising online)
is dependent on the cost volume profit analysis.

4)Another distinct advantage of internet marketing is that the statistics involved in

any given marketing campaign can be recorded and reviewed with ease. This in
turn allows marketers to analyze what works and what doesn’t, and if their
products appeal to certain age groups or people in particular areas of the world.
There are various types of advertising plans that will provide different types of
statistics, such as pay per click versus pay per impression.

5)Because exposure, response, and overall efficiency of Internet media are

easier to track than traditional off-line media—through the use of web analytics
for instance—Internet marketing can offer a greater sense of accountability for
advertisers. Marketers and their clients are becoming aware of the need to
measure the collaborative effects of marketing (i.e., how the Internet affects in-
store sales) rather than siloing each advertising medium. The effects of

multihannel marketing can be difficult to determine, but are an important part of

ascertaining the value of media campaign

Limitations of Internet Marketing

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Limitations of internet marketing include the requirement that consumers

have access to the technology required to access the advertising in the
first place. While many consumers have televisions, and therefore are
able to access advertising and marketing in that form, they may not have
internet access. Fortunately, internet access is becoming more
widespread, and the younger generation is very likely to have some sort
of access to the internet. The consumer is also not able to physically
interact with the product before purchasing it. The major barriers to entry
for marketing a product online are the low measurement of impact, the
poor internal capability, and the difficulty in convincing senior
management to move forward with it. From the buyer's perspective, the
inability of shoppers to touch, smell, taste or "try on" tangible goods
before making an online purchase can be limiting. However, there is an
industry standard for e-commerce vendors to reassure customers by
having liberal return policies as well as providing in-store pick-up
services

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Internet marketing requires knowing beyond the means, methodology, and

the other aspects of traditional marketing. The ever-changing and highly
advanced technology of the internet requires technical knowledge too.
Low speed internet connections might pose a difficulty for companies
who would be using highly interactive and complicated websites which
uses a lot of graphics, animation and audio. If individuals and potential
customers are using dial-up connections or are accessing the internet
through mobile devices, they may experience an inconvenient delay in
content delivery aspect internet marketing is heavily relying on. They
may not be able to fully appreciate the website and may opt to choose
other providers. While comfort and convenience is the primary reason
why most people are switching to transactions online, this aspect is
worth noting.

Sometimes, error messages also appear. These websites which are overly
complicated can have some bugs which can affect their overall internet
marketingcampaign.

While internet marketing cannot allow prospective buyers to touch, or

smell or taste or 'try on' the products, internet marketing however
provides some protection by offering a return policy on certain items.
Either traditional or internet marketing, marketing does have its ethics to
live by.

Internet marketing not only serves their respective companies well, but
also serves its customers by providing other information such as pick up
services, or promos, and other 'come ons' that puts them on a more
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advantageous edge over their competitors.

On the other hand, there are other executives who are not fully
convinced of the advantages of internet marketing. They would cite
inability to measure impact, lack of internal support and technical
maintenance and challenge in seeking approval from higher management
to pursue internet marketing.

Basically, except for the last one probably, these things are unfounded.
With the database and system available online, internet marketing can
even provide a venue for market research and analysis. They can gather
information and data from their customers that cans serve as their
reference for the study. They can also avail of outsourcing businesses to
handle the technical infrastructure for them almost seamlessly.

May be the considerable challenge really lies on the preparedness of the

company to launch a full blown internet marketing campaign. If they are
not ready and launched an internet marketing program haphazardly, they
can only experience complaints, which can eventually lead to poor
reviews, thus, making its probabilities un-maximized.

While internet marketing is very promising and has indeed produced

good results already for many businesses around the world, some of the
responsibility now lies with the people managing it. Just like any other
type or marketing, they can put it to its maximum extent for productivity,
or perform poorly by being mediocre.

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While the products and pricing can really be an edge, convenience is

every important for online businesses and internet marketing can do a lot
to augment that. By being technically responsive to the needs of a typical
online consumer, internet marketing can indeed be the turning point for
any online business.

QUESTIONNAIRE

World Investment Report 2006:FDI from Developing and

TransitionEconomies: Implications for Development

1. Name and professional address of respondent (optional):

2. Which of the following best describes your area of work? Government

Public enterprise Private enterprise institution Academic or research
International organization Media Not-for-profit organization Other (specify)

3. In which country do you work?

4. What is your assessment of the contents of this publication? Excellent

Adequate Good Poor

5. How useful is this publication to your work? Very useful Of some use
Irrelevant

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6. Please indicate the three things you liked best about this publication and
how are they useful for your work:

7. Please indicate the three things you liked least about this publication:

CONCLUSIONS

‡Foreign Direct Investment Is Better For The Growth Of any Country.

‡Foreign Direct Investment Is Better For The Developing Countries.
‡Foreign Direct Investment Is Risk Oriented.
‡Foreign Direct Investment Is better for the Investors to invest the money In
Foreign Business.
‡Foreign Direct Investment Is Better For The Retail Marketing.
‡Foreign Direct Investment Is Better For The Small Scale Industries

RECOMMENDATIONS

A multi-tiered strategy that seeks to move more foreign investors from

their present position, which is largely characterized by ignorance, through
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expressions of interest, to committed investment in India is therefore

proposed.
This requires that we not only develop a more effective communication
strategy, and expand attempts to develop a subjective preference for India,
but that we also reduce the risks associated with investment through more
coherent and consistent policies.
We also need to recognize that it is projects, rather than countries, into
which investment is ultimately made

BIBLIOGRAPHY

1. Websites visited-
www.Bookwhirl.com
www.amazon.com
www.rbi.org.in
mba.nic.in/fcra/intro/forms.html
2. Books-
Dave Chaffeys(2009) E-Marketing Excellence
Marketing with internet(2007)Shannon Kinnard

3. Journals-
>Economic Journals

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.4. Reports-
>CII survey reports
>FICCI survey reports.
5. Newsletters & Bulletins-
>SIA newsletters
>RBI buttetins.
MAGAZINE Business India.

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