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INTRODUCTION
Information technology affects everything from daily life to business in the 21st century. In business environment, it shapes not only commerce but also the way in which companies implement their marketing strategies. Offering new marketing channels to interact with customers is crucial to increase sales for company. Thus, the successful application of information technology to connect marketing applications is highly prominent. One of the advances in information technology is wireless mobile communication technology that makes the anytime-to-anyplace communication possible. This technology system allows increased mobility and extended services even to remote areas. Due to wireless communication system, mobile phone users are able to access their e-mails, search, order and buy products and services from everywhere without computers (Yen and Chou, 2000; Aungst and Wilson, 2005). Besides the Internet and personal computers, the mobile phone is the key to marketers because it is extremely popular and offers people the opportunity of mobility now. Through the introduction of data services, Short Message Services (SMS), Multimedia Message Service (MMS), Mobile Internet, etc., the mobile phone is rapidly becoming a viable commercial marketing channel. Even though companies are investing heavily in mobile commerce and mobile marketing, the nature and implications of this channel have yet to be fully understood and studies need to be performed to gain an insight into how to utilize it best (Bauer et al., 2005). Nowadays, mobile marketing adoption and acceptance is on the rise, but marketers would have little ability to consistently generate profits without a clear understanding of the elements driving consumer acceptance (Becker, 2005). The main objective of this study is to draw Global System for Mobile Communications (GSM) operators and entrepreneurs attention to new opportunities in mobile commerce and mobile marketing. Therefore, in this study, mobile commerce and mobile marketing concepts, the importance and benefits of mobile commerce and mobile marketing, how mobile phone influences marketing and business activities and the success factors and barriers of mobile commerce in consumer markets are explained and analyzed. The results of the survey conducted on 389 mobile phone users to determine consumers attitudes towards mobile marketing tools are provided.
2. Research methodology
Research Objectives
To check the awareness of the mobile marketing on the youngsters of Mumbai city To know the preference of people towards mobile marketing on the youngsters of Mumbai city To check the reliability of mobile marketing on the youngsters of Mumbai city
Research Design
Sampling frame: all individuals between 18 years to 35 years in Mumbai. Sampling unit: all individuals between 18 years to 35 years in Mumbai Sample size: 100 respondents Sampling method: non-probabilistic convenience sampling
Secondary Sources:
Websites , book for market research
Beneficiaries
1. mobile marketers 2. students who are going to do research on mobile marketing
Limitations
1. Time is short , 2. Respondents may give bias answers or may not feel questionnaire properly
Industry Review
Introduction
The Indian Telecommunications network with 110.01 million connections is the fifth largest in the world and the second largest among the emerging economies of Asia. Today, it is the fastest growing market in the world and represents unique opportunities for U.S. companies in the stagnant global scenario. The total subscriber base, which has grown by 40% in 2005, is expected to reach 250 million in 2007. According to Broadband Policy 2004, Government of India aims at 9 million broadband connections and 18 million internet connections by 2007. The wireless subscriber base has jumped from 33.69 million in 2004 to 62.57 million in FY2004- 2005. In the last 3 years, two out of every three new telephone subscribers were wireless subscribers. Consequently, wireless now accounts for 54.6% of the total telephone subscriber base, as compared to only 40% in 2003. Wireless subscriber growth is expected to bypass 2.5 million new subscribers per month by 2007. The wireless technologies currently in use are Global System for Mobile Communications (GSM) and Code Division Multiple Access (CDMA). There are primarily 9 GSM and 5 CDMA operators providing mobile services in 19 telecom circles and 4 metro cities, covering 2000 towns across the country.
India has one of the biggest telecom markets in the world. It has more GSM subscribers than
fixed-lin subscribers.
Total telecom subscribers -494.07 million (August 2009) Teledensity -42.27 per cent (August 2009) Addition of mobile subscribers (July-August 2009) -15.08 million Annual growth rate of telecom subscribers (June 2008-June 2009) -42.68 per cent Average Revenue Per User (ARPU) for GSM (as on 30 June 2009) -US$ 3.801 Telecom equipment market (2008-09) -US$ 24.99 billion2,3 Handset market (2008-09) -US$ 5.82 billion2,3 Expected mobile subscriber base (2013) -About 771 million.
Sources: 1) Exchange rate as on 30 June 2009 (1 US$ = INR 48.64380) , TRAI and TRAI; 2) Average exchange rate for the year 2008-09 and TRAI;3) Cyber media; 4) Stock watch Telecommunications September
Cellular Service provider: 1. BSNL 2. Airtel 3. Vodafone 4. Reliance 5. Tata indicom 6. Spice
Subscribers
Wireless subscribers crosses 200 million mark Tele density reaches 21.20%
The total number of telephone subscribers has reached 241.02 million at the end of August 2009 as compared to 232.87 million in July 2009. The overall teledensity has increased to 21.20% in August 2009 as compared to 20.52% in July 2009. In the wireless segment, 8.31 million subscribers have been added in August 2009 while 8.06 million subscribers were added in July 2007. The total wireless subscribers (GSM, CDMA & WLL(F)) base reaches 201.29 million at the end of August 2009. The wireline segment subscriber base stood at 39.73 million with a decrease of 0.16 million at the end of August 2009. Circle wise wire line subscriber base of service providers is given at following chart.
Future Plans
The thrust areas presently are: 1. 1.Building a modern and efficient infrastructure ensuring greater competitive environment 2. With equal opportunities and level playing field for all stakeholders. 3. Strengthening research and development for manufacturing, value added services. 4. Efficient and transparent spectrum management 5. To accelerate broadband penetration 6. Universal service to all uncovered areas including rural areas. 7. Enabling Indian telecom companies to become global players.
Recent things to watch in Indian telecom sector are: 1. 3G and BWA auctions 2. MVNO 3. Mobile Number Portability 4. New Policy for Value Added Services 5. Market dynamics once the recently licensed new telecom operators start rolling out 6. Services. 7. Increased thrust on telecom equipment manufacturing and exports. 8. Reduction in Mobile Termination Charges as the cost per line has substantially reduced 9. Due to technological advancement and increase in traffic.
GLOBAL SCENARIO
Until the 1980s the world telecommunications systems had a simply administrative structure. The United States telephone service was supplied by a regulated monopoly, American Telephone and Telegraph (AT&T). Telegraph service was provided mainly by the Western Union Corporation. In almost all other countries both services were the monopolies of government agencies known as PTTs (for Post, Telephone, and Telegraph). In the United States beginning in 1983, AT&T agreed in a court settlement to divest itself of the local operating companies that provided basic telephonic service. They remained regulated local monopolies, grouped together into eight regional companies.
AT&T now offers long distance service in competition with half a dozen major and many minor competitors while retaining ownership of a subsidiary that produces telephonic equipment, computers and other electronic devices. During the same period Great Britain's national telephone company was sold to private investors as was Japan's NTT telephone monopoly. For telegraphy and data transmission, Western Union was joined by other major companies, while many multinational firms formed their own telecommunications services that link offices scattered throughout the world. New technology also brought continuing changes in the providers of telecommunication. Private companies such as Comsat in the United States were organized to provide satellite communication links within the country. Around the world we are witnessing remarkable changes to the telecoms environment. After years of debate, structural separation is now taking place in many parts of the world including Hong Kong, New Zealand, Singapore and some European markets. Structural separation - or at least full-blown operational separation - is required to advance the entire industry and to create new business opportunities and innovations which will benefit our society, our economy and ultimately our industry.
The focus is also shifting away from broadband to what it can actually achieve. Next Generation Telecommunications better describes this new environment and is essential for the emerging digital economy. Important services that depend on NGT include tele-health,eeducation, e-business, digital media, e-government and environmental applications such as smart utility meters. In order to meet this burgeoning consumer demand for NGT applications, we are seeing increasing investment in All-IP Next Generation Networks and fibre networks. A proper inventory of national infrastructure assets is required if we want to establish an efficient and economically viable national broadband structure for these services. In the developing markets, next generations telecoms will take the form of wireless NGNs (ie, LTE/WiMAX). These are some of the elements of the broader ICT revolution that is unfolding before our very eyes. We are right in the midst of the transition from old communications structures (mainly one-way streets) to new structures that are fully-interactive and video-based. One of the drivers behind the industry changes are the declining revenues experienced by the telcos in their traditional markets. Over the past 10 years or so, fixed-line operators have been affected by deregulation, a severe industry downturn, declining prices and major inroads by mobile services. In addition, people are drifting to other forms of communication, such as email, online chat, and mobile text messaging instead of the traditional phone.
This has also led to an increased need for bandwidth, which in turn has revived the submarine cable sector. In recent times there have been many cable build-out announcements around the world, and some major systems are again being constructed. Over 25 systems are expected to be built over the next two to three years and network upgrades are also on the agenda for some existing systems. It is clear that the mobile industry is also undergoing profound changes. The saturated developed markets are forcing the industry to find new revenue streams and we are now seeing other organizations such as media companies, content providers, Internet media companies and private equity companies becoming involved in this market. For the time being however, voice will remain the killer application for mobile with some data services included as support services and niche market services. 4G (ie, WiMAX/LTE) is the real solution for mobile data and by 2015 it is expected that the majority of mobile revenues will come from data. With the Internet economy, digital media and other telecommunications activities becoming further established, the need for modern and efficient infrastructure is becoming more critical.
Telephony services (mobile and basic) and internet services dominate the Indian telecom services market.
The Indian telecom industry can be primarily divided into basic, cellular mobile and
internet services. It also has smaller segments such as radio paging services, Very Small Aperture Terminals (VSATs), Public Mobile Radio Trunked Services (PMRTS) and Global Mobile Personal Communications by Satellite (GMPCS).
The mobile services in India are growing more than basic wire line services.
TECHNOLOGIES
Technology is very much related to the way we conduct business. Today everything that we talk about in business, like, the way we conduct business, the way we do things, the way we deliver to the customers, etc. is using some form of technology. Therefore, role of technology cannot be defined because it is a mindset and it happens over a period of time. The various technologies used by the Telecom Service Providers are as follows:
GPRS to cover other standards, but instead those networks are being converted to use the GSM standard, so that GSM is the only kind of network where GPRS is in use. GPRS is integrated into GSM Release 97 and newer releases.
It was originally standardized by European Telecommunications Standards Institute (ETSI), but now by the 3rd Generation Partnership Project (3GPP).
CDMA employs spread-spectrum technology and a special coding scheme (where each transmitter is assigned a code) to allow multiple users to be multiplexed over the same physical channel. By contrast, time division multiple access (TDMA) divides access by time, while frequency-division multiple access (FDMA) divides it by frequency. CDMA is a form of "spread-spectrum" signaling, since the modulated coded signal has a much higher data bandwidth than the data being communicated.
7) WiMax
WiMax (Worldwide Interoperability for Microwave Access) is a technology designed to give people high speed access to the net over relatively long distances. A typical WiMax system could theoretically give users in an area three to 10 kilometers wide a 40 Mbps connection to the net. This technology already deployed in some urban centres like Chennai (Madras) and Mumbai (Bombay) would overcome the need to lay expensive cables or fibre optics to villages. At the moment there is a wired backbone throughout India but many villages are 30 to 40km away from the nearest connection. Wimax services can overcome that. One or two WiMax base stations are enough to connect three or four villages.
The government telecoms operator BSNL is also in the process of rolling out some WiMax services. But it is still expensive and at the moment is aimed squarely at large businesses that need a quick-fix solution to broadband access.
8) 3G TECHNOLOGIES
3G or Third Generation technology is a convergence of various Second Generation Tele-communication systems. The technology is intended for SMARTPHONES - multimedia cell phones. Video broadcasting and other e-commerce services such as, stock transactions and elearning will now be made possible much faster. It offers 3 Mbps speed for downloading, which is very high as compared to that of the 2G technology. The 3G technology provides for internet surfing, downloading, e-mail attachment downloading, audio-video conferencing, fax services and many other broadband applications. 3G Technology was implemented in Japan for the first time in the world. Today the technology is serving 25 countries over more than 60 networks having its existence in Asia, Europe and USA. Video conferencing has been a major factor in the success of the Technology.
3G Technology in Indian Telecom Industry From the time of telegraphs Indian telecom sector has witnessed an immense growth and has diversified into various segments like, Fixed Line Telephony, mobile telephony, GSM, CDMA, WLL etc. The telecom industry is growing at a fast pace introducing newer technologies. Even the network operators and handset providers are also coming up with newer value added services and advanced technology cell phones with multimedia applications. Now it's time to welcome the much-awaited 3G Technology. Bharat Sanchar Nigam Limited is all set to launch the technology by December 2007. Not only the network providers but also the handset providers in India are waiting eagerly for the launch of 3G to earn very high revenues from the value added services provided by the technology.
The technology is initially being launched on CDMA platform. The technology is being tested over various platforms and cellular networks.
9) 4G TECHNOLOGY
4G (also known as Beyond 3G), an abbreviation for Fourth-Generation, is a term used to describe the next complete evolution in wireless communications. A 4G system will be able to provide a comprehensive IP solution where voice, data and streamed multimedia can be given to users on an "Anytime, Anywhere" basis, and at higher data rates than previous generations. As the second generation was a total replacement of the first generation networks and handsets, and the third generation was a total replacement of second generation networks and handsets, so too the fourth generation cannot be an incremental evolution of current 3G technologies, but rather the total replacement of the current 3G networks and handsets. The international telecommunications regulatory and standardization bodies are working for commercial
deployment of 4G networks roughly in the 2012-2015 time scale. At that point it is predicted that even with current evolutions of third generation 3G networks, these will tend to be congested.
There is no formal definition for what 4G is; however, there are certain objectives that are projected for 4G. These objectives include: that 4G will be a fully IP-based integrated system. 4G will be capable of providing between 100 Mbit/s and 1 Gbit/s speeds both indoors and outdoors, with premium quality and high security.
Many companies have taken self-serving definitions and distortions about 4G to suggest they have 4G already in existence today, such as several early trials and launches of WiMAX. Other companies have made prototype systems calling those 4G. While it is possible that some currently demonstrated technologies may become part of 4G, until the 4G standard or standards have been defined, it is impossible for any company currently to provide with any certainty wireless solutions that could be called 4G cellular networks that would conform to the eventual international standards for 4G. These confusing statements around "existing" 4G have served to confuse investors and analysts about the wireless industry.
Currently, Japanese company NTT DoCoMo and Samsung are testing 4G communication. 3G services will enable video broadcast and data-intensive services such as stock transactions, e-learning and telemedicine through wireless communications.
All telecom operators are waiting to launch 3G in India to cash in on revenues by providing high-end services to customers, which are voice data and video enabled. India lags behind many Asian countries in introducing 3G services.
The telecom subscriber base in India is likely to reach 500 million by 2010.
The subscriber base grew to 494.07 million (August 2009), registering a growth of
approximately 42.67 per cent over last year. It grew at a CAGR of 45.21 per cent from June 2004 to June 2009.
Teledensity in India is still low as compared to that in some countries. As on August 2009,
India had a teledensity of 42.27 per cent as compared to the previous year's figure of 29.83%.
Even the cellular operators, whose stand was accepted by the TRAI, would accept privately that the respondent DoT was poorly served by many of its officers and lawyers who were entrusted with the task of representing DoT's case. They seemed to have cut a very sorry figure before TRAI, ignoring or not being prepared by reading pertinent papers, such as tender documents, the clarifications offered to would-be bidders, or the correspondence that DoT was having with the operators later. Since the tender documents mentioned that tariffs would be the same for circles and metros, it would have made sense for DoT to seek legal advice on how to correct a mistake, if that is what it was. An appeal to TRAI could perhaps have been recourse, as the body is in charge of tariffs.
Fixed line users pay local call rates when they dial a cellular number in the four metros (Calcutta, Chennai, Delhi, and Mumbai). But users in the circles (which are typically the same as states) would be charged Rs10 per call for the same facility, if the DoT order in question had not been quashed.
DoT had raised current rates on grounds that such charges were low and allowed users in the circles which are much larger than metros, to make long distance calls without paying STD charges. On the face of it, DoT is entitled to want to change this state of affairs. But in trying to correct one injustice to itself, it managed to inflict several on the users and other service providers. The cellular operators lost no time in going to the courts, since TRAI did not then exist. The courts in turn took an enlightened decision to pass the matter on to TRAI on March 3, as the body had been formally constituted by then. TRAI took a few weeks to give its judgment and ruled against the Department of Telecom. The body was not persuaded about the justness of DoT's order. Nor was TRAI particularly impressed by the operator's contention that DoT was not authorized to raise these tariffs. The judgment clearly says that the order of DoT to raise the tariff was passed before the TRAI was formally constituted and during the said period in question, the DoT was the sole body with the power to amend tariffs.
Functions of TRAI
1. Recommendatory Functions
of available spectrum
2. Mandatory Functions
-down the standards of QoS to be provided by service provider,ensure by periodical survey -down and ensure time period for providing local and long-distance circuits of telecommunication between different service providers
this
TRAI act Notify in Official Gazette the service rates and message rates within and outside India
The Indian VAS industry is growing at a rapid rate for various reasons. For one thing, the Indian economy is currently booming and has a high GDP rate. Another important factor is the availability of mobile phones and data plans at much cheaper rates. In India, VAS services are mostly provided in monthly plans. Two or more VAS services are often packaged together in a single set, which appeals to a lot of subscribers. Moreover, Indians love to participate in SMS contests of reality bites, SMS contests and other digital services. At present, VAS revenues are mostly from SMS services, but when 3G services finally get out of their red tape, an increase in the general usage of VAS is anticipated.
Early 2009, survey was conducted for mobile users based on various demographics (gender, age, education, income ). Mobile users are spread across all parts of India. Take a look at the summary (statistical reports) of the survey results of two popular services in Mobile VAS: Internet usage and SMS (Voting for TV contests).
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The rivalry between existing sellers in the market The power exerted by the customers in the market The impact of the suppliers on the sellers The potential threat of new sellers entering the market The threat of substitute products becoming available in the market
Understanding the nature of each of these forces gives organizations the necessary insights to enable them to formulate the appropriate strategies to be successful in their market (Thurlby, 1998). We will examine these concepts as described by Porter's 5 force model and as applied to Indian telecom industry simultaneously.
This force is located at the centre of the diagram Is most likely to be high in those industries where there is a threat of substitute products; and existing power of suppliers and buyers in the market Now let us understand the implication of degree of revelry in Indian telecom sector. The dimensions of this parameter are determined by:
High Exit Barriers: In any industry, if the exit barrier is high it increases the difficulty of any organization to leave the industry sector. So it makes any difficult to any willing to leave company to leave the industry. The telecom industry suffers from high exit barriers, mainly due to its specialized equipment. Networks and billing systems cannot really be used for much else, and their swift obsolescence makes liquidation pretty difficult.
High Fixed Cost: The industry also suffers from high fixed cost which makes the entry barrier also very high for the industry. It comes as no surprise that in the capital-intensive telecom industry the biggest barrier to entry is access to finance. To cover high fixed costs, serious contenders typically require a lot of cash. When capital markets are generous, the threat of competitive entrants escalates. When financing opportunities are less readily available, the pace of entry slows. Meanwhile, ownership of a telecom license can represent a huge barrier to entry.
Very less time to gain advantage by an innovation: Every company in this industrial sector in investing a huge amount in research and development and marketing strategy. That is why we see any offer launched by any company is counter attacked by other companies very soon. This makes the industry rivalry most prominent. Eg. Caller tunes, life time card
Price wars: The price war is really very fierce in this industry. Price war in telecom industry has commoditized the market that branding has taken a backseat.
Economies of scale: In telecom industry the economies of scale exists from the supplier side. That is why companies try to increase their subscriber base at drastic rate. Distribution channels: Distribution channels are also providing a major determining factor. These channels are not loyal to any company and competitors can easily access them and make out work for them. Customer Switching Costs: Customer switching cost is very low, as cost of new connection is really low. And new connection offers more benefits to the customers.
Product-for-product substitution (email for mail, fax); is based on the substitution of need; Generic substitution (Video suppliers compete with travel companies); Substitution that relates to something that people can do without (cigarettes, alcohol). Now let us discuss this concept for telecom industry. The potential major substitutes for telecom industry are as follows
This force is relatively high where there a few, large players in the market, as it is the cas with retailers a grocery stores; Present where there is a large number of undifferentiated, small suppliers, such as small farming businesses supplying large grocery companies;
Low cost of switching between suppliers, such as from one fleet supplier of trucks to another.
In the context of Indian telecom industry we can say that the following points influence the
buyer power:
The ability to charge customers different prices in line with differences in the value created for each of those buyers usually indicates that the market is characterized by high supplier power and at the same time by low buyer power. In the drawback of Indian telecom industry the following should be kept in mind:
which helps them to choose from a lot of options. So they try to select the best option to deliver the value to the customers and to have a competitive advantage from their competitor.
infrastructure. This basically helps them to reduce the initial investment a lot.
- medium.
SWOT ANALYSIS
A scan of the internal and external environment is an important part of the strategic planning process. Environmental factors internal to the firm usually can be classified as strengths (S) or weaknesses (W), and those external to the firm can be classified as opportunities (O) or threats (T). Such an analysis of the strategic environment is referred to as a SWOT analysis. The SWOT analysis provides information that is helpful in matching the firm's resources and capabilities to the competitive environment in which it operates. As such, it is instrumental in strategy formulation and selection. The following diagram shows how a SWOT analysis fits into an environmental scan:
Strengths
Here we will analyze the strengths of the telecom industry as a whole. The most important factors are:
Technology is advanced and easy to implement: For telecom industry the technology is really advanced and more and more investment is done on technology to get world class infrastructure and knowhow to put in this field. Recently the telecom sector is going to add 3G spectrum as its latest up-gradation.
Management Team has prior experience: The management team controlling Indian telecom sector in really efficient. Thank goes to the IITs which produce world class engineers. So Indian telecom sector has abundance of technological knowhow.
Weakness
The weaknesses of the Indian telecom sector are as follows. High Cost of Infrastructure: The infrastructure cost of telecom industry is very high. Low customer retention power: The customer retention power for telecom industry is really low and the customer changes their service provider company very soon.
Opportunity
Population: The population of India is really an opportunity of telecom service providers, as the number of population without telecom service is also very high. The industry has to target India's huge population to grow.
Changing Population psychograph: Population psychograph is also changing. Previously telecom service was thought as an emergency service, now it has become an essential part of life in our country.
Increased Penetration Level: All the organizations of the industry are trying to increase their penetration level, in other word to increase the tele-density of the country. The urban Indian population gives a real growth prospect to the industry.
FDI: The foreign direct investment in telecom has been hiked up from 49% to 74%. This move is positive for the sector, as it requires investments of Rs 700 -900 million over the next 5 years. FDI inflow by 2004 was 9950.94 cores in telecom. Countries like Europe, Korea, and Japan telecom are likely to enter India, as India is seen as fastest growing telecom market in world.
Threats
The treats to the industry are the following:
Government Policies - Government may provide licenses to many foreign operators, which may already have pose a threat for the existing players in the industry. New Technology can change the market dynamics: A lot of new technologies are coming. Then even have the potential of changing the entire industry dynamics or even create substitute of the telecom services existing.
Some of the examples are follows: VOIP (Skype, Messenger etc.) Online Chat Email Satellite phone
Marketers should focus this year and next on using mobile - especially SMS and applications - to build databases of consumers who have opted in not once but twice to receive targeted offers, alerts and information from marketers. A marketer without a mobile loyalty program in 2009 or 2010 will risk losing customers to competitors who have such efforts in place "Mobile advertising has increasingly become a twoway street, providing a link for engagement between customers and companies," said Bob Kraut, vice president of marketing
"Rather than simply giving customers information, companies are using mobile advertising as a way to provide customers with meaningful brand engagement," he said.
"In 2009, you'll see an increase in people using mobile devices to make purchases. Mobile advertising will give consumers a way to immediately interact with Pizza Hut by placing an order entirely from their mobile devices."
2. CONCEPTUAL FRAMEWORK
The rapid growth of mobile phone has also come up with a new term: mobile commerce. It has a strong impact on industries like e-commerce in general (E-Business Report, 2000) and transformed mobile commerce into a major driving force for the next wave of e-commerce (Liang and Wei, 2004). The growth and use of mobile commerce as an emerging technology has the potential to dramatically change the way consumers make business. Mobile commerce driven by wireless communication technology is also generating interest from marketers (Aungst and Wilson, 2005). Therefore, the penetration of this new technology has evoked changes in advertising, retailing and shopping in marketing, and companies wishing to make business in mobile markets should be ready for mobile marketing and mobile commerce.
In the literature, all mobile commerce definitions are very similar. In principle, any transaction with a monetary value conducted via mobile communication networks can be considered mobile commerce (E-Business Report, 2000). As regards this definition, Siau et al., (2001) define mobile commerce as a new type of e-commerce transaction conducted through mobile devices using wireless telecommunication networks and other wired e-commerce technologies. Dholakia and Dholakia (2004) describe mobile commerce as electronic commerce transactions carried out via mobile phones and wireless terminals. Bai et al., (2005) simply identify as the transaction conducted over a wireless telecommunication network, either directly or indirectly. Briefly, mobile commerce can be understood as a business model that allows a consumer to complete all steps of a commercial transaction using a mobile phone (DSTI/CP, 2006).
In mobile commerce, mobile marketing is increasingly prevailing and appealing to marketing for many reasons. For example, consumers carry them every day, everywhere, and mobile phones are almost always on (Yuan and Cheng, 2004). The forces underpinning the emergence of mobile commerce can be summarized as (1) proliferation of mobile devices, (2) convergence of mobile telecommunication networks and Internet, (3) transition to 3G (Third Generation Mobile System), and (4) the emergence of broad set of highly personalized location applications and services (Sadeh, 2002). Therefore, mobile commerce has attracted growing attention over the last few years and continued to revolutionize marketplaces by introducing new business models as well as offering some advantages to customers, retailers and GSM operators. Even though Barnes (2002) put forward that the diffusion of mobile commerce services are very poor so far due to high cost, slow transmission rates, high power consumption of devices and inadequate mobile interfaces, mobile commerce come true these days because of the wireless mobile technology developments and 3G phones.
lieu of tickets and money, and (7) mobile intranet applications. Consumers' Attitudes Towards Mobile Marketing and Mobile Commerce in Consumer Markets 19 Location-based mobile information and service play a significant part in B2C mobile commerce. The vast majority of uses for location-based mobile services are likely to be commercial, involving the provision of specific services adapted to individual profiles and their location (Casal et al., 2004). Using the information on the users identity, position, access time, and profiles, GSM operators or retailers can offer the users optimal information or services, which are contextually relevant to them at the point of need (Liang et al., 2004) and the resulting customers location data can be used for direct marketing (Casal et al., 2004). To this date, GSM operators have been most interested in the use of location information for providing innovative location-based mobile services. These services have gained attention as companies are facing new opportunities in offering more customized services. The ability to identify the customer's location at a certain time is one of the most promising applications of mobile commerce (Barnes, 2003; Pura, 2005). By using new browsers and other mobile applications, the new range of mobile technology offers the Internet in user pocket for which the users possibilities are endless, including banking, booking or buying tickets, shopping and real-time news (Barnes, 2002). When using the mobile Internet, mobile phone users reach all web pages via 3G mobile phone without computer. Therefore, Funk (2004) described the key technological trajectories and their potential effect on the expansion of mobile Internet applications. The advanced mobile Internet technologies make the phone a portable entertainment player, a new marketing tool for retailers and manufacturers, a multi-channel shopping device, a navigation tool, a new type of ticket and money, and a new mobile intranet device.
discounts, rebates, free samples, gifts and incentive items in order to observe an immediate effect on sales. Mobile coupons in sales promotion play a vital role, and marketers can predict a higher usage of mobile compared to their paper-based equivalents. Mobile coupons boast at least three advantages: (1) targeting based on mobile phone numbers, (2) time sensitivity, and (3) efficient handling by scanning the coupons bar code at the point of sale (Scharl et al., 2005). Thousands of Japanese retailers, restaurants, manufacturers, and other companies employ the mobile Internet to send discount coupons, conduct surveys, and offer free samples to registered users via mobile mail. For example, many restaurants use these mobile-based coupons to offer temporary discounts on slow nights, thus creating a form of dynamic pricing (Funk 2005).
(iii) Mobile Entertainment: The mobile phone has become an important media and entertainment platform. In the mobile entertainment industry, there are lots of entertainment services like listening music, playing games, gambling, watching television, video and sport matches etc., which have set a stage for an explosion of mobile entertainment industry.
(iv) Mobile Shopping: Mobile phone is an exciting tool to expand customers shopping options after the Internet. At first, mobile phone can seem like a scary place to shop; however, mobile phone users can go online to buy just about Consumers' Attitudes Towards Mobile Marketing and Mobile Commerce in Consumer Markets 21 anything their need or want. Used properly, mobile shopping is a new easy, practical, and economical shopping tool. The sudden growth of mobile shopping has placed mobile retailers at consumers fingertips, and allowed mobile phone users to purchase nearly anything they desire without ever leaving their houses and offices.
2.4. Success Factors and Barriers of Mobile Commerce and Mobile Marketing
There seem to be a good many issues that require attention from both the practitioner and academic worlds in mobile commerce and mobile marketing. Researchers from several countries gathered at the Fourth International Conference on Telecommunications and Information Markets to discuss some of the issues regarding e-commerce and mobile commerce in July 2001 (Dholakia, 2004). The fact that mobile commerce is not mature brings many challenges to mobile commerce adopters. Integrating content, software and hardware design and reconfiguring an effective business model to implement mobile commerce requires careful study and decision making (Wu and Hisa, 2004). Therefore, developing a successful mobile commerce system needs to meet a variety of success factors including process supports, functional capability, implementation, marketing (Bai et al., 2005) and improving trust. Major barriers to mobile commerce and mobile marketing are the mobile web browsers, technological skills, perception of risks and traditional shopping culture, lack of awareness and understanding of the benefits provided by them. While it is possible to use the mobile phone itself to purchase products, the small screens and keyboards make it difficult to search for products. Because the small screen and keyboard make it demanding to search for products via a search engine, a large number of the products purchased with a mobile phone are selected from personalized mail services that provide information on a specific type of product, which the user has registered for (Funk 2005) On the other hand, security, tangibility, and the lack of experience are also main barriers of mobile commerce (Fenech, 2002). Therefore, Yuan and Cheng (2004) and Baietal., (2005) suggested that special software like recommender system or intelligent on-line purchasing advisors should be developed in order to recommend or advice products and services on a one-to-one basis. Recommender systems of automated product recommendation acquire customers' preferences and recommend products accordingly on a one-to-one basis in real time at a lower cost (Yuan and Cheng, 2004).
Intelligent online purchasing advisors will assist buyers in specifying their product requirements, searching for product information and selecting the best supplier (Bai et al., 2005).
Briefly, mobile marketing managers should determine target customers and understand their demographics characteristics to develop successful mobile marketing programs and strategies.
MOBILES ALLOWS YOU TO USE VARIOUS TOOLS & ITS UNIQUE FACTORS
:- Call the call center :- Watch the video on your phone :- Contest to win goodies or generate leads :- Download branded/paid/unpaid mobile content :- SMS yourself or your friends address or m-coupon
Screen is small - less is better than more Not all phone are same - use 80:20 rule Phone and computer are different - @symbol - Long drop-down - Field validations
"Compared to traditional media and wired Web advertising, mobile is claimed to typically deliver better ROI."
Another industry executive claimed that a bare-bones SMS/text alert campaign can be launched for a few hundred dollars - excluding the cost of the common short code - and that a basic mobile Web/WAP campaign can be launched for several thousand dollars.
Most of the handsets sold in India are internet enabled India is the largest consumer of mobile internet in Asia
This gives mobile a great opportunity for being one of the main advertising mediums,
especially in a more digital future
campaigns Source: Airwide Solutions independent survey of 50 brand name companies ll be valued at over $16 billion by 2011 In August 2007, nearly 40 million US consumers received SMS advertisements, and 12 percent responded to them Source: M:Metrics, Common Short Codes: Cracking the Mobile Marketing Code
the cell phone (23%), followed by the Internet (21%) and the digital camera (19%) Source: Babycenter.com, March 2008
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Analysis
1. I decide to purchase on the basis of advertisements
Here it can be analyzed that majority people are neutral but we can see that 28 % people are agree with the statement. So gives clear idea that somehow advertisement do effect on the mind set of consumer
Here it can be analyzed that majority is with the option of agree and majority are strongly agree also so most of the people do not like to respond tele-callers at all.
Here it can be analyzed that majority are strongly agree with this statement that they seek full information before purchasing
Here it can be analyzed that majority is with the option of agree and majority are strongly agree also so most of the people do not like that callers call them on the frequent basis and ask for the feedback or something as reminder for the purchasing
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Here it can be analyzed that majority are agree and neutral so by the cross checking of question 1 and question 5 are almost same respond. So it can be clear those respondents are truly aware about the filling questionnaire
Majority are fully agreed with the statement because they think that mobile phone can be use for entertaining perspective. And today most of the teenagers use mobile for that perspective only as camera facilities are also available.
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Here this statement is asked for the verification of the respondent is giving true respond or not. It is cross checked with the 3rd question. So it can be said that majority of respondents had given true respond. As the ratio is almost same for both the statements.
Here it can be analyzed that respondents like to delete the sms are rarely read it on the immediate basis. As they read the sms only when they get time .only students do the immediate respond to sms.
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Ho : Preference for the DND registration is independent on the occupation at the significance level of 0.05 H1 : Preference for the DND registration is dependent on the occupation at the significance level of 0.05
DND * Occupation Crosstabulation Count Occupation student DND no Total yes 0 49 49 Business man 4 11 15 Employee 4 32 36 Total 8 92 100
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Chi-Square Tests Asymp. Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 11.836a 13.241 4.101 100 df 2 2 1 sided) .003 .001 .043 Sig. (2-
a. 3 cells (50.0%) have expected count less than 5. The minimum expected count is 1.20.
Out of the 100 respondents 92 have not registered for the DND as they like to know various schemes through mobile marketing. And they also want that they are interested in the calls coming from the service provider. In the hypothesis chi-square calculated is 11.836 but tabulated is .103 so hypothesis is rejected. So it also can be analyzed that preference of registration to DND is dependent on the occupation of the person.
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Ho : GPRS usage is independent on the occupation at the significance level of 0.05 H1 : GPRS usage is dependent on the occupation at the significance level of 0.05
GPRS * Occupation Crosstabulation Count Occupation student GPRS no Total yes 22 27 49 Business man 10 1 11 Employee 18 14 32 Total 50 42 92
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Chi-Square Tests Asymp. Sig. (2Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association 1.405 N of Valid Cases 92 7.737a 8.863 df 2 2 1 sided) .021 .012 .236
a. 0 cells (.0%) have expected count less than 5. The minimum expected count is 5.02.
Here it can be analyzed that students are the most users of GPRS than others. Here chi-square tabulated is 0.103 and which is lesser than calculated which is 7.737 so it is rejected at the significance level of 0.05. So the analysis says that GPRS usage is dependent on the occupation.
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Here it can be analyzed that the internet users are same at all the levels and it is not dependent on the occupation. As internet usage is must for every individual today. By this question it also can be conclude that internet users not only use internet for the registration on the web-sites like MY-TOADY. They register with sms also which gives revenue to both marketer as well as service provider.
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third_generation * Age Crosstabulation Count Age 18-23 third_generation No Total Yes 12 42 54 24-29 6 17 23 30-35 7 8 15 Total 25 67 92
Chi-Square Tests Asymp. Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 3.563a 3.298 2.985 92 df 2 2 1 sided) .168 .192 .084 Sig. (2-
a. 1 cells (16.7%) have expected count less than 5. The minimum expected count is 4.08.
Here it can be analyzed that the age group of 30-35 are using 3G enabled mobile than any other age group as in Gujarat 3G service is not yet started so many people do not have that mobile phone. As business men use that phone because they want facilities like videoconferencing. And also like to use internet so that they can send e-mail and download files.
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================================== Here it can be analyzed that sms-gupshup is more famous and subscribed by many than any other sms providing and mean of the sms-gupshup is 0.42 which is highest among all the other sites and the second highest is mytoday site which has 0.37 mean. As the skew ness in all the graphs is at right hand side in all the graphs. Which shows that it is far from the mean means selected is less than not selected in all.
MOBILE MARKETING
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Q6. How do you currently react on receiving mobile advertising through sms ?
============================================
Descriptive Statistics N mobile_advertising_through_ 92 sms Valid N (listwise) 92 Minimum 1.00 Maximum 3.00 Mean 1.7391 Std. Deviation .69329
Here it can be analized that the more number of people like read the sms but rarely try to follow it. Mean is 1.7931 which suggests that the average is fall near by the 2nd option which is selected by many.
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Descriptive Statistics N Deviation recall_increase Valid N (listwise) 92 92 1.00 3.00 2.0000 .81200 Minimum Maximum Mean Std.
Here it can analysed that people are not much aware that whether the recall is increased or not. Here the mean is 2.0000 which suggest that recall do not increase by mobile marketing. As many respondents has selected can't say option which suggests they are not aware whether recall increases or not.
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=============================
Descriptive Statistics N Time_to_delete_sms Valid N (listwise) 92 92 Minimum 1.00 Maximum 4.00 Mean 1.4565 Std. Deviation .81757
Here it can analyzed that people like to ignore such sms and do not like to store it in mobile which clearly gives idea that people are not like to give response or search for it.
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Q9. How do you currently react to receiving calls on mobile for advertising ?
======================================== =
Descriptive Statistics N mobile_advertising_through_ 92 calls Valid N (listwise) 92 Minimum 1.00 Maximum 5.00 Mean 2.2065 Std. Deviation 1.40281
Same as sms people like to ignore tele-callers as they ignore the callers are rarely like to search for it because mean is 2.2065 which shows the average preference of people By the help of behavioral questions it can be analyzed that many not like to respond tele-callers. Which is can be proved correct over here.
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=========================== ====
Here it can be analyzed that people more like to hear the voice of female than male. And females also like to respond female callers only. So marketers are hiring more female telecallers for the tele-calling.
===============
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Q11. Select the product for which you like mobile marketing
============= ===
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Here it can be analyzed that mobile phones recharging is more known by the people and they like to respond to that scheme. As mean of that is 0.71. As skew ness towards right side is more in all the graphs except in the option of Mobile recharging graph. So by that it can be said that in the mobile recharging option is more selected so for the recharging mobile people like to use mobile marketing. So marketers have to bifurcate the service accordingly.
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Q12. What do you think are the business benefits of mobile marketing?
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Here analysed that mobile marketig is cost effective as the mean of that option is 0.54 which is higher than any other options . And it is also cost effective because it is more customised in less cost. As the skewnesss of curve is towards right side in every graph exept in cost effective graph which suggests that the selection of the each option is less than not select But in cost effective graph scewness is equal which suggests that the option is more selected.
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Q13. If the prices of products and services in mobile shopping are lower than in traditional shopping, I prefer mobile shopping
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H1 : Purchasing through mobile advt. is dependent on the family monthly income at the
significance level of 0.05
Prefer_mobile_shopping * Family_income Crosstabulation Count Family_income below 15k Prefer_mobile_shopping no can't say Total yes 10 7 6 23 15k-30k 11 7 3 21 30k-45k 5 7 2 14 more than 45k 10 12 12 34 Total 36 33 23 92
Chi-Square Tests Asymp. Sig. (2Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association 2.095 N of Valid Cases 92 5.985a 6.025 df 6 6 1 sided) .425 .420 .148
a. 1 cells (8.3%) have expected count less than 5. The minimum expected count is 3.50.
Here chi-square tabuleted is 1.635which is lesser than the calculated which is 5.985 . it shows that the hypothesis is rejected and it can be analysed that the mobile shopping is preferable by the people if price is less comparitively. It can also analysed that the lower income family more like to purchase by the way of mobile marketing
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Personal details
Gender
=============== =======
Here 72% are male respondants and 28% are female respondants.
Age
=========== ==
As I want to check the awareness on youngsters so I have taken from 18 to 35 age group of peole. Here 54% are between 18-23 years old, 28% are between 24-29 years old and 18% are between 30-35 years old
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Monthly income of the family is majority more than 45k. as 39% person's family monthly income is more than 39% where 23% has below 15k and 21% and 17% has between 15k-30k and 30k-45k (respectively)
Occupation
=============== =======
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Here 49% are students, 15 % are business-man , 36% are employee as majority youngsters are going study.
Highest qualification
===================
Here we can see that majority are MBA and 8% are B.COM and 10% are BBA.
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CHAPTER - 6
OVERALL FINDINGS :
schemes and other value added services. Many of them less like to get call/sms from the apparel stores and from the hotels and restaurants.
the features and schemes that are provided so when the service is customized it becomes more useful to customers
one of main reason is that they are not aware about that and also it makes no difference to them whether advertisement comes or not.
g 3G enabled mobile phone because the service is not launched in GUJARAT. So most of them are not aware the services provided by the 3G
they generally feel that it will cost more and amount will charged. That's the main reason the to ignore the sms on the immediate basis
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the mobile advertising the detail of the product can not been known so people give less preference to mobile advertising.
technologies.
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CHAPTER - 7
SUGGESTIONS :
by increase share of voice the marketer can divert more fund towards the internet advertising.
get product for less cost through purchase of mobile advertising, So marketer can give some extra benefits for using the mobile shopping which is useful for both the buyer and customer.
to cross selling of the other service which is not used by them or at is same as the service which he is using .
as preference towards that option is more than other options of mobile marketing
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can be useful for the customer, but the customer is not aware about that service or not using it
because if mobile advertising is done on frequent basis than it gives negative impression.
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CHAPTER - 8
CONCLUSION:
Mobile phone is a new direct marketing device that provides direct access to consumers and interacts with them in a very personal way. All GSM operators announce the launch of new mobile services, and the B2C mobile commerce and mobile marketing will be obviously becoming more popular in India. The mobile advertising, mobile Internet, mobile banking and mobile entertainment services are growing in the world and in India, GSM operators and retailers expect to benefit from these mobile marketing tools. According to literature survey about consumers attitudes toward mobile marketing, Tsang et al., (2004) found that consumers generally had negative attitudes toward mobile advertising unless they have specifically consented to receive the mobile advertising messages. Bauer et al., (2005) found that consumers developed a positive attitude toward mobile marketing if mobile marketing messages were creatively designed, entertained and proved a high information value. Becker (2005) indicated that mobile marketing adoption and acceptance was on the rise. Even though it is too early to say whether mobile commerce and mobile marketing services are accepted or not in Turkey, the findings of the research conducted Turkish mobile phone users suggest that mobile phone users have positive attitudes towards mobile marketing tools except for mobile shopping. To come to the point, the mobile phone is rapidly becoming a practical direct marketing channel. There are some factors playing a role in improving and increasing mobile commerce. Besides mobile service quality, Bauer et al., (2005) emphasizes that entertainment value, information value and advertising content communication are some of the strongest drivers of the acceptance of the mobile phone as a marketing tool. Moreover, one of the ways to convince mobile phone users of the benefits of mobile commerce is the price of products and services. One of the implications of this survey suggests that potential mobile commerce users have price sensitivity, and that the lower price turns out 30 to be the most critical factor that motivates mobile phone users adoption of mobile commerce. Furthermore, GSM operators and retailers ought to (1) get ready the mobile revolution in
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commerce, (2) develop healthy mobile commerce market, (3) create a favorable mobile shopping environment, (4) increase mobile phones operational efficiency and customer interaction, and (5) develop effective the mobile marketing mix, programs and strategies. As long as these requirements are carried out, mobile commerce adoption level will be increased. In further research, target mobile phone users, their demographic characteristics, why mobile phone users have negative attitudes toward mobile shopping, how mobile marketers change the negative attitudes, and which products and services are preferred for mobile shopping should be identified in different areas, cities and countries. Moreover, the strategies and programs for implementing mobile commerce and mobile marketing should be analyzed as well.
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CHAPTER - 9 Bibliography
Bourke, C. (2007) How to Develop a Mobile Marketing Strategy, retrieved on Feb 10, 2010 from http://www.aerodeon.com/whitepapers/Aerodeon_ MobileStrategy_v100.pdf. Bauer, H., Barnes, S., Reinhardt, T., Neumann, M. (2009) Driving Consumer Acceptance of Mobile Marketing: A Theoretical Framework and Empirical Study, Journal of Electronic Commerce and Research, Vol. 6 (3), 181-192. Dholakia, R. R., Dholakia, N. (2009) Mobility and markets: emerging outlines of mobile commerce, Indian Journal magazine, Vol. 57 (12), Telecommunication Authority retrieved on Feb 26, 2010 from http://www.trai.gov.in/TelecomPolicy_ntp99.asp Telecommunication Authority retrieved on Feb 26, 2010 from http://www.trai.gov.in/Default.asp Mobile marketing provider retrieved on March 10, 2010 from http://www.relativitycorp.com/mobilemarketing/article2.html Mobile marketing association retrieved on March 12, 2010 from http://mmaglobal.com/main Levin and Rubin (2007) retrieved on March 19 2010 from the Statistics for manager 192-195 Indian resource center retrieved on March 19 2010 from http://www.ibef.org/sector.aspx
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Annexure Questionnaire
Strongly Stron gly No Disagree ree I decide to purchase on the basis of 1 2 3 4 5 advertisements I do not respond to telly callers I always seek detailed information before purchasing any product. I get angry if caller calls frequently Advertisement is the best source to decide to buy any product. Mobile is more than just means of 6 communication I check full details before buying any 7 8 new product. I always give response to sms Statements Agree Agree Neutral Disag
1. Do you have registered for DND (Do not disturb service)? Yes No
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-ginger
MOBILE MARKETING
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10. Give your preference regarding type of customer care executive calling you?
11. Select the product for which you like mobile marketing.(You can select multiple options)
12. What do you think are the business benefits of mobile marketing? (You can select multiple options)
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13. If the prices of products and services in mobile shopping are lower than in traditional shopping, I prefer mobile shopping
Personal Details:
Name: __________________________________
Gender: Age:
-23 -29 -35
Occupation:
Student
Highest Qualification
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