CHAPTER-1

INTRODUCTION
Marketing is the science of meeting the needs of a customer by providing
valuable products to customers by utilizing the expertise of the organization, at
same time, to achieve organizational goals. According to the American Marketing
Association:Marketing is the activity, set of institutions, and processes for
creating, communicating, delivering, and exchanging offerings that have value
for customers, clients, partners, and society at large.With this definition, it is
important to realize that the customer can be an individual user, a company, or
several people who contribute to the purchasing decision. The product can be a
hard good, a service, or even an idea anything that would provide some value to
the person who provides an exchange. An exchange is most often thought of as
money, but could also be a donation of time or effort, or even a specific action. A
producer is often a company, but could be an individual or non-profit
organization.
Classical marketing is often described in terms of the four Ps, which are:
Product what goods or services are offered to customers
Promotion how the producer communicates the value of its products
Price the value of the exchange between the customer and producer
Placement how the product is delivered to the customer.
A complete analysis of these categories is often called the Marketing Mix. More
detail on these categories can be found in the later entry on the Marketing Plan.
Marketing has both inbound and outbound activities. Inbound activities largely
center on discovering the needs and wants of the potential customers. The
collective group of all potential customers is called a market. Categorizing these
needs into groups is called segmentation. Organizing markets into segments
allows a producer to more logically decide how to best provide value to that
group of potential customers. The analysis of market segment needs; analysis of
existing sales and profitability; the descriptions, design and introduction of new
products; and the analysis of competitor offerings are also inbound activities that
are important but not often seen by the public.
Outbound activities include all aspects of informing the market that a product is
available, delivering that product, and encouraging the purchase decision. These
activities include advertising, promotion, supply chain, sales support, product
training, and customer support.
Marketing Models
When the producer is a commercial entity and the end user makes the purchasing
decision, the model used to describe this transaction is often called a Business to
Consumer (B2C) model. When the producer is a commercial entity and a second
commercial entity makes the purchasing decision but provides the product to
their customer, then the model is often called a Business to Business (B2B) model.
The difference in these models affects how the marketer constructs his marketing
analysis and marketing mix.


Concepts of Marketing
Marketing has many aspects or sub-disciplines within the broad discipline of
marketing.
Advertising.
Branding.
Copywriting.
Customer relationship management (CRM).
Direct marketing.
Event planning.
Graphic design.
Internet Marketing.
Loyalty marketing.
Market research.
Marketing communications.
Media relations.
Merchandising.
New product development.
Pricing.
Product management.
Promotion.
Public relations.
Sales management and support.
Search engine optimization (SEO).
Social media optimization.
Strategic planning.
Supply chain management.

Marketing functions in all of these areas. A marketer can do many of these
functions within an organization or specialize in one or more.
Objectives of Marketing
To increase sales revenue
To improve and maintain image of the product or the business
To increase market share
To target a new market
To target a new market segment


INTRODUCTION TO TELECOM INDUSTRY IN INDIA

Over the last few decades the telecommunication sector in India has undergone a
sea change on account of the interplay of the Government and private sector. It
has played an important part in bridging the rural urban gap. Rapid economic
growth, leading to a rise in the standard of living of individuals has been the main
driving factor for the fastest growth of the Indian Telecom industry.

India's telecommunication network is the second largest in the world based on
the total number of telephone users (both fixed and mobile phone). It has one of
the lowest call tariffs in the world enabled by the mega telephone networks and
hyper-competition among them. It has the world's third-largest Internet user-
base with over 137 million as of June 2012.Major sectors of the Indian
telecommunication industry are telephony, internet and television broadcasting.

The telecommunication market in India is booming as reported by Telecom
Regulatory Authority of India (TRAI) the total telephone subscribers base has
reached 787.28 Million in December 2010. The Wireless subscription has reached
to 752.19 Million in December 2010. Every month on average there is an addition
of 22.62 million new subscribers for wireless telephone. The mobile phone has
become a ubiquitous device which has cut across all strata of the population, at
present the overall tele-density is 66.16% indicating the number of people using
mobile phones in India.

As per latest figures, The Indian telecommunications industry appears set for
growth in 2013. The overall number of subscribers to 657.56 million in January
2013, according to statistics from industry group Cellular Operators Association of
India (COAI). This is an addition of 400,000 new GSM subscriptions from the
previous month, or almost nine million more subscribers than the same time the
previous year.

The small growth marks a gradual recovery from the industry low point in
November, when the figures bottomed out at 657 million. It remains a big gap
from the record 679.05 million subscribers registered in June 2012. The bounce
back was also reflected in figures from the Telecom Regulatory Authority of India
(TRAI), which also counts CDMA and fixed line services in its statistics.

HISTORY OF MOBILE PHONES IN INDIA.

Undoubtedly India is the strongest market for mobile phones thanks to its fastest
growing economy. It was in the year 1995, the first cellular network from Modi
Groups were introduced in Kolkata. Soon cellular networks from other companies
such as BPL, Orange (now Vodafone), Airtel, BSNL and Idea Cellular were
introduced in all over India. Also, the first mobile phone was launched in 1995.
The handset was produced by Micromax. Slowly other brands started making
their way to the Indian market.
By the starting of the new millennium, Nokia had become the most popular cell
phone manufacturers in India. In 2000, Nokia 3310 was the most desirable
handset. It allowed users to send text messages, picture messages and make
phone calls. It was a costly and bulky device. Soon slimmer phones like Nokia
2100 and Nokia 1100 started making their way in Indian market. Then in 2003,
Nokia N-Gage (game-based phone) and Nokia 6600 (multimedia phone with a
camera) were introduced.
Even though other brands like Motorola, Sony and Samsung had already
penetrated the Indian market, at that time, Nokia did not have any competition.
In 2005, multimedia phones from other brand like Motorola RAZR V3 and
Samsung D500 appeared. However, Nokia's N72 was quite popular compared to
any other phone in 2005. In the same year Sony Ericsson K750 was unveiled which
was also a very successful phone and they had also launched the popular Sony
Ericsson W550 and W800 which belonged to the walkman series family.
In 2006, one of the best phones of all times from Nokia was surfaced. It was N95
which housed a 5MP camera and belonged to the elite N-series lines of phones
from Nokia. Sony tried to stay on par with Nokia by launching W700 and W810i.
Motorola also introduced couple of phones which included Motorola PEBL and
Motorola SLVR but it could not pull down Nokia from the numero uno position. In
2007, LG revealed Viewty and Shine but it did not achieve many sales in India.
In 2007 and 2008, Apple came out with the first iPhone and then iPhone 3G in US
but these iPhones were introduced very late in India and that too at a very
expensive price. In the same year, one of the most popular music-based phones
was rolled out by Nokia which was 5800 XpressMusic. After that a line of
XpressMusic series were shipped in India. Even the business class E71 from Nokia
became quite popular.
In 2009, Nokia N72 (business class phone) and BlackBerry 8250 were brought in
India. BlackBerry slotted itself as business oriented phone manufacturer and their
phones were mostly seen with people from the corporate world. LG Cookie also
became quite popular. In this year, phones from lesser known brands like Spice,
Micromax, Maxx, Lava, G-Five, Karbonn, MTS and ZTE started making way in India.
And Samsung started gaining the market by launching affordable and feature
entry-level phones.
2010 was the year when large-sized smartphones started penetrating in India. In
2010, the huge Motorola Milestone (Droid) was unveiled. HTC also showed up the
HTC Desire. Sony came out with Xperia X10 Mini Pro and Samsung with Galaxy S.
This marked the fall of Nokia. Still Nokia phone's like the E6 released in 2011 were
considered quite reliable. By 2011, Nokia had lost popularity as it replaced its
Symbian OS with Windows Phone OS. In 2011, Samsung's Galaxy line of phones
such as the Samsung Galaxy S2 and Galaxy Y took over the market like a storm.
In 2012, Samsung Galaxy SIII and Galaxy Note II completely devastated Nokia's
control over Indian market. Still, Nokia's attempt to gain back lost ground through
Windows Phone based Nokia Lumia phones like Lumia 520, Lumia 620, Lumia 720
and the powerful Nokia Lumia 920 have not been able to shake off Samsung from
the number mobile phone brand in India. 2013 has already seen the release of
topnotch smartphones like Sony Xperia Z, Micromax Canvas HD, and Lumia have
already hit the Indian market. Now, the markets awaits the launch of popular
phones like BlackBerry X10 (with new BlackBerry OS), Apple iPhone 4S, Apple
iPhone 5, HTC One, and Galaxy S4.
Want to know the forthcoming iPhone 6 price in India? Visit Price Tag India to
know the top smartphones' price in India?
MARKETING OF MOBILE PHONES
Mobile Marketing: Mobile marketing involves two- or multi-way communication
and promotion of an offer between a firm and its customers using the mobile, a
term that refers to the mobile medium, device, channel, or technology, is growing
in importance in the retailing environment.
The present world is facing a complete technological era, where social
demand requires to be in a constant evolution and communication required with
the outside world. Thus, mobile devices, such small digital media, easy to use and
manage, that can be taken anywhere without difficulty and without an electrical
connection, is one of the most important elements to consider when you want to
make a proper communication. After high penetration of the internet, mobile
broadband subscription rate also increased dramatically. Subscriptions of mobile
broadband out numbered the subscriptions of broadband by 2008, which is
indicating tremendous potential for mobile internet (International
Telecommunication Union, 2009). Another research conducted by ITU
(International Telecommunication Union, 2010) shows that 90% of the world
population has internet access, and 80% of people who is living in rural areas also
have internet access.
Different reasons play their role in rise of mobile devices usage;
Improvements in mobile technology, and integration of data, video and audio
context in one mobile device absolutely increased the usage of mobile devices.
Flexibility in communication and information sharing became possible with
improvements in mobile technology and integration of internet and computing in
to mobile medium. The possibility of reaching the information anytime and
anywhere triggered the improvements of mobile devices lately.
Potential for interaction with consumers, target marketing and managing
consumer relationship made mobile devices important channel for marketers.
Mobile services and marketing has become powerful source for marketing
communication and distribution. Backed up marketing activities with mobile
devices provide companies an opportunity to directly communicate with
consumers anytime, anywhere.
Internet has been used as an effective channel by companies for building and
managing consumer relationship. With the mobile internet, marketing
opportunities are defined when mobile internet subscriptions outnumber the
broadband subscriptions mobile internet will have the larger potential audience.
Marketing potential of the mobile devices also found by Friedrich et al., (2009) as,
probably mobile medium have more potential opportunities for marketing than
new media.
MOBILE TECHNOLOGY
Certainly mobile technologies have a very crucial and important impact on todays
businesses .As a result mobile technologies are providing many opportunities for
marketing activities, especially direct communication opportunity with consumers
anytime, anywhere. Latest improvements in an area of internet and wireless
technology during the late 1990s paved the way for unique telecommunication
service mobile internet.
Mobile technology holds great strategic importance, and it is integrating internet
and computing into wireless environment, and improving the communication,
information sharing and interworking. Even mobile phones and assistive networks
seem to be dominant mobile commerce providers, other technologies and
devices will probably have important role in mobile commerce soon. For instance,
there are new devices that combine mobile phones and personal digital
assistants (PDA) features in one device (ibid).
Mobile communication devices, such as cell phones, laptops, PDAs, etc.,
have provided people with new approaches to accessing web contents, emails,
instant messaging,whatsup, facebook and commerce services in a convenient and
flexible fashion which fully takes the advantages of mobility and timeliness of
mobile communication technologies.

MOBILE ADVERTISING:
After stating two types of mobile advertising which are push and pull
advertising:
Advertising that is pushed to the users devices is generally used in conjunction
with mobile advertising. Push advertising may be unsolicited such as special
promotions delivered by SMS to users within the context of an existing customer
relationship, or it may be solicited where users agree to have certain services or
promotions pushed to them at certain times (sponsored sports score alerts, for
example). Pull advertising, on the other hand, is defined as an advertising that is
attached to content or services that users request or pull to themselves. For
instance, when a customer requests the local weather from mobile service
provider, the content of the response, including any related advertising, is pull
advertising.
The increasing growth in the area of mobile commerce gives new dimensions to
interactive marketing. Direct interaction with consumers is possible via mobile
marketing without time and place boundaries. Personal nature of the mobile
phones provide an opportunity to understand buying habits and trends of
individual consumers which is impossible in PC environment, thats why
marketers should see mobile internet as a powerful medium.
CUSTOMER EXPECTATIONS:
7 Types expectations
Customer satisfaction reflects the expectations and experiences that the
customer has with a product or service. Expectations reflect both past and current
product evaluation and use experiences.
Think about any major purchases youve made recently. Did you research your
purchase? Did you collect information from advertising, salespersons, friends,
associates, or even test the product?
This information influences our expectations and gives us the ability to evaluate
quality, value, and the ability of the product or service to meet our needs.
Customers hold both explicit and implicit performance expectations for
attributes, features, and benefits of products and services.
The nature of these expectations will dictate the form and even the wording
of customer satisfaction survey questions.
Let me repeat this: the nature of these expectations will dictate the form and
even the wording of your satisfaction questions.
Understanding the following 7 customer expectations is critical before you set out
to measure customer satisfaction.
1. Explicit Expectations
Explicit expectations are mental targets for product performance, such as well-
identified performance standards.
For example, if expectations for a color printer were for 17 pages per minute and
high quality color printing, but the product actually delivered 3 pages per minute
and good quality color printing, then the cognitive evaluation comparing product
performance and expectations would be 17 PPM 3 PPM + High Good, with
each item weighted by the associated importance.
2. Implicit Expectations
Implicit expectations reflect established norms of performance. Implicit
expectations are established by business in general, other companies, industries,
and even cultures.
An implicit reference might include wording such as Compared with other
companies or Compared to the leading brand
3. Static Performance Expectations
Static performance expectations address how performance and quality are
defined for a specific application. Performance measures related to quality of
outcome may include the evaluation of accessibility, customization,
dependability, timeliness, accuracy, and user friendly interfaces.
Static performance expectations are the visible part of the iceberg; they are the
performance we see andoften erroneouslyare assumed to be the only
dimensions of performance that exist.
4. Dynamic Performance Expectations
Dynamic performance expectations are about how the product or service is
expected to evolve over time. Dynamic expectations may be about the changes in
support, product, or service needed to meet future business or use environments.
Dynamic performance expectations may help to produce static performance
expectations as new uses, integrations, or system requirements develop and
become more stable.
5. Technological Expectations
Technological expectations focus on the evolving state of the product category.
For example, mobile phones are continually evolving, leading to higher
expectations of new features.
Mobile service providers, in an effort to limit a consumers ability to switch to
new technology phones, have marketed rate plans with high cancellation
penalties for switching providers, but with liberal upgrade plans for the phones
they offer.
The availability of low profile phones with email, camera, MP3, blue tooth
technology, and increased storage will change technology expectations as well as
the static and dynamic performance expectations of the product.
These highly involving products are not just feature based, but raise
expectations that enhance perceptions of status, ego, self-image, and can even
evoke emotions of isolation and fear when the product is not available.
6. Interpersonal Expectations
Interpersonal expectations reflect the relationship between the customer and the
product or service provider.
Person to person relationships are increasingly important, especially where
products require support for proper use and functioning.
Support expectations include interpersonal sharing of technical knowledge, ability
to solve a problem, ability to communicate, reduced time to problem resolution,
courtesy, patience, enthusiasm, helpfulness, assurance that they understood my
problem and my situation, communication skills, and customer perceptions
regarding professionalism of conduct, often including image and appearance.



7. Situational Expectations
In building a customer satisfaction survey, it is also helpful to evaluate why pre-
purchase expectations or post-purchase satisfaction may or may not be fulfilled or
even measurable.
The following conditions may be considered:
Expectations may not include unanticipated service attributes that are new
to that consumer.
Expectations may be based on vague images, thereby creating wide latitude
of acceptable performance and expected satisfaction.
Product performance expectations and evaluations may be sensory and not
cognitive, as in expectations of taste, style or image. Such expectations are
not only difficult to evaluate and understand, but may change over time
and with consumption.
The product use may attract so little attention as to produce no conscious
affect or cognition (evaluation). When measured, this results in
meaningless satisfaction or dissatisfaction information.
There may have been unanticipated benefits or consequences of
purchasing or using the product (such as a uses, usage situations, or
features not anticipated with purchase).
The original expectations may have been unrealistically high or low.
The product purchaser, influencer and user may have each been a different
type of individual, each having different expectations.
Your research study may also benefit from considering expectations related to
perceived quality and value.
Customer Expectations
Remember to keep these 7 customer expectations in mind before you set out to
measure customer satisfaction. Understanding these will ensure that your
customer satisfaction research will provide accurate insights. Having a top-
notch online survey software is one thing, using it correctly is another.