EFFECTIVENESS OF MOBILE MARKETING AS A VIRAL TOOL FOR MARKETING

A Research Paper presented to The Faculty of Business Administration College of Business Administration Lyceum of the Philippines University Intramuros, Manila

In Partial Fulfillment of the Requirement for the Course Bachelor of Science in Business Administration ENGN12A(Writing in the Discipline) Cruz, Machelle H. Gonzales, Jayson Roque, Leonalyn C. Salazar, Justine

May 2013
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I.INTRODUCTION
A. Background of the Study & Review of Related Literatures According to Jeanne Hopkins it takes 90 minutes for the average person to respond to an email. It takes 90 seconds for the average person to respond to a text message, a fact that represents how people truly engaged with their mobile phones. Mobile Marketing involves reaching customers and prospects when theyre using the internet away from the traditional home/office desktop environment. The increased usage of smart phones, tablets and similar mobile devices has made mobile marketing a must for many online businesses. The mobile marketing industries have foreseen the arrival of broadband mobile internet and rich multimedia phones, and currently the consumers usage of these technologies has been deepening daily. This has transformed the mobile content industry into a multi-million pound concern and some of the biggest traditional media owners. The unparalleled depth of interaction between consumers and their mobile phones, together with the ability afforded by mobile advertising to control the viewing environment provides advertisers with an opportunity to build more meaningful brand relationships than at any time in advertising history. Our research group has researched some various people who have an overview about mobile marketing. According to Jay Higley, founder and president of Pangea Partners, Indianapolis to me mobile is becoming everywhere how I access email, the Web or social networking really is all
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about mobile. SMS is intimate and immediate, and the first thing brands have to start doing is to build an opt-in SMS database of consumers that have raised their hand and said I want to have dialogue and discussion with your brand. Brand should think broader their SMS database to take what they are building and segment down to get their message to the right consumer at the right time.Based on our review we can see that in other countries, many companies are fond of using mobile marketing as one of their tool for advertising it is also a good example wherein we can see that mobile marketing is effective in many different ways. They use SMS to encourage people to patronize their product. This is a big help for them because in this generation most of us are using cellular phones wherein they can promote their product easily and inexpensive. B. Significance of the Study The purpose of this study is not to resolve all the open questions. Instead, this study aims to contribute to our understanding of issues related to the application of the mobile marketing communications in consumer markets. The finding of the study will be beneficial for the following reasons: 1. Companies whose using mobile marketing . This research can help those companies who are using mobile marketing as their main tool for advertising in terms of knowing how effective this tool for them to attract customers. 2. Future Businessman/woman. This research can be one of their inspirations and be also their guide in making up or choosing up on how they can advertise their products through the use of modern technologies.

3. Advertising Companies. This research can help advertising companies to think of new ways and strategies in promoting products with the use of modern technology with a cheaper cost and labor work. C. Definition of Terms
1. Brand the name, term, design, symbol, or any other feature that identifies one sellers good or service as distinct from those of other sellers. 2. Call-to-action is a banner, button, or some type of graphic or text on a website meant to prompt a user to click it and continue down a conversion funnel. 3. Mobile Marketing is marketing on or with a mobile device, such as cellphone. 4. Opt-ins is a term used when someone is given the option to receive bulk email, that is sent to many people at the same time. 5. Retailers a business or person that sells goods to the consumer. 6. ROI is a performance measure used to evaluate the efficiency of an investment or to compare the efficiency of a number of different investments. 7. SMS is a text messaging service component of phone, web, or mobile communication systems, using standardized communications that allow the exchange of short text messages between fixed line or mobile phone device. 8. Social Networking is an online service, platform, or site that focuses on facilitating the building of social networks or social relations among people who share interests, activities, backgrounds, or real-life connections. 9. Traditional Media has been used for years in the forms of advertising, sales promotions, public relations and direct marketing. 10. Captive Audience listeners or onlookers who have no choice but to attend.

II.METHODOLOGY

This chapter presents the research design and methodology which in general includes the overall plan, structure and methods of investigation that shall be used to obtain answers to the research questions and to control variance. The method or research to be used in gathering and analyzing data shall be directed towards reaching the research objectives and tackling the problems of the inquiry.

III.RESULTS AND DISCUSSION

This chapter shall discuss the finding obtained from the primary instrument used in the study. It shall discuss the demographic profile of the correspondents as well as their perception about mobile marketing. In order to simplify the discussions, the researcher provided graphs that summarize the collective reactions of the correspondents.

Demographic Profile: Age

40% 35% 30% 25% 20% 15% 10% 5% 0% 18-25 yrs. old 26-33 yrs. old 34-41 yrs. old 42-50 yrs. old
11 6 7 36

Figure 1. Most of our respondents are ages 18-25 years old.

Demographic Profile: Gender

120% 100% 80% 60% 40% 20% 0% Female Male

40 20

Figure 2. Most of our respondents are female.

Awareness of people about mobile marketing

160% 140% 120% 100% 80% 60% 40% 20% 0% Yes No 50 10

Figure 3. It represents that 50 out of 60 respondents are aware of mobile marketing.

Figure 4.This figure represents that most of our respondents perceived mobile marketing as advertising through cellphone.

People's perception about mobile marketing

30% 25% 20% 15% 10% 5% 0% Advertising through Cellphone Scam Promos Others 30% 12% 13% 4%

Effectiveness of mobile marketing

120% 100% 80% 60% 40% 20% 0% Yes No 40% 20%

Figure 5. The respondents agreed that mobile marketing is effective.

Figure 6. 42 out of 60 respondents said that mobile marketing can be considered as a marketing strategy.

Is mobile marketing considered as a marketing strategy?

140% 120% 100% 80% 60% 40% 20% 0% Yes No 42%

18%

10

Most preferable for the respondents

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%

28%

32%

Traditional Channel

Mobile Marketing

Figure 7. Majority of the respondents chose mobile advertising in advertising products.

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Figure 8. 32 out of 60 respondents are not in favor of replacing traditional channel.

Are you in favor of replacing Traditional ads with Mobile ads?

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%

28%

32%

Yes

No

Figure 9.Out of 60 respondents 36 of them said that mobile marketing is the faster way of advertising.
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Is mobile marketing a faster way of advertisment?

120% 100% 80% 60% 40% 20% 0% Yes No 36% 24%

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Figure 10. It shows that majority of the respondents think that mobile marketing can help in measuring responsiveness of the consumers.

Do marketing help in measuring responsiveness of the cosumer?

140% 120% 100% 80% 60% 40% 20% 0% Yes No 43% 17%

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Is mobile marketing viral enough to promote in wide spread audiences?

140% 120% 100% 80% 60% 40% 20% 0% Yes No 41%

19%

Figure 11. It shows that 41 out of 6 respondents think that mobile marketing is viral enough to promote in a wide scope of audiences.

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Is mobile marketing performing well nowadays?

140% 120% 100% 80% 60% 40% 20% 0% Yes No 45% 15%

Figure 12. 45 out of 60 respondents said that mobile marketing nowadays is performing well.

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Eisenmann, T. R. (2002). Internet Business Models: Text & Cases. Boston, MA: McGraw-Hill Publishing Company, Inc. Evans, D. & McKee, J. (2010). Social Media Marketing: The Next Generation of Business Engagement. Wiley, John & Sons, Incorporated. Evans, M. (2007). Property Management Careers. Chicago, IL: McGraw-Hill Publishing Company, Inc. Futrell, C. M. (2008). Fundamentals of Selling: Customer for Life through Service. Boston, MA: McGraw-Hill Publishing Company, Inc. Godson, M. (2009). Relationship Marketing. Oxford, UK: Oxford University Press.

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