PROJECT ON

CONSUMER BEHAVIOR TOWARDS MOBILE MARKETING.

SUBMITTED BY
MILONI S.SHAH
SEAT NO. 3322

T.Y.BMS (SEMESTER-V)
*2012-2013*

UNDER THE GUIDANCE OF

PROF. VANDNA

SUBMITTED TO
UNIVERSITY OF MUMBAI

NIRMALA MEMORIAL FOUNDATION COLLEGE OF

COMMERCE AND SCIENCE
90 FEET ROAD, ASHA NAGAR, THAKUR COMPLEX,
KANDIVALI (E), MUMBAI-400 101.
 DECLARATION

I MISS. MILONI S. SHAH OF T.Y.BMS. (BACHELOR DEGREE OF MANAGEMENT STUDIES

SEMESTER V) HEREBY DECLARE THAT I HAVE COMPLETED THE PROJECT ON CONSUMER
BEHAVIOR TOWARDS MOBILE MARKETING. IN THE ACADEMIC YEAR 2012-2013.
THE INFORMATION SUBMITTED IS TRUE AND ORIGINAL TO BEST OF MY KNOWLEDGE.

________________ ________________
DATE OF SUBMISSION. SIGNATURE OF STUDENT,
(MILONI SHAH)
 CERTIFICATE

THIS IS TO CERTIFY THAT THE PROJECT TITLED AS CONSUMER BEHAVIOR TOWARDS

MOBILE MARKETINGHAS BEEN COMPLETED BY MISS. MILONI SHAH OF T.Y.BMS. (SEMESTER-
V) EXAMINATION IN ACADEMIC YEAR 2012-2013.
THE INFORMATION SUBMITTED IS TRUE AND ORIGINAL TO THE BEST OF KNOWLEDGE.
______________ ______________
(DR. T. P. MADHU NAIR) (PROF. POONAM KAKKAD)
PRINCIPAL COURSE COORDINATOR

________________ ________________
(PROF. VANDNA) EXTERNAL EXAMINER
PROJECT GUIDE
 ACKNOLEDGEMENT

I WOULD LIKE TO EXTEND MY GRATITUDE TO PROF. VANDNA MATHUR FOR PROVIDING

GUIDANCE AND SUPPORT DURING THE COURSE OF PROJECT . SHE HAS BEEN A GREAT HELP THROUGH

THE MAKING OF THE PROJECT . I WOULD LIKE TO THANK THE UNIVERSITY OF MUMBAI FOR GIVING
ME THE OPPORTUNITY TO WORK ON SUCH A RELEVANT TOPIC .

I WOULD ALSO LIKE TO THANK THE COLLEGE FACULTY AND THE LIBRARIAN AND THE

PRINCIPAL DR.T.P.MADHU NAIR FOR THEIR HELP AND OTHER WHO ARE INDIRECTLY RESPONSIBLE
FOR THE COMPLETION OF THIS PROJECT . IN ADDITION I WOULD LIKE TO TAKE THIS OPPORTUNITY
TO THANK OUR BMS COORDINATOR PROF.POONAM KAKKAD FOR BEING THERE ALWAYS TO GUIDE
ME AND FOR EXTENDING HER FULL SUPPORT .

DATE- SIGNATURE OF
MUMBAI STUDENT

(MILONI SHAH)
 INDEX

Sr. no Topics Page no.

1. Chapter 1
1.1 Introduction.
1.2 Research Methodology.
2. Chapter 2: Marketing
2.1 Introduction to marketing.
2.2 Meaning & Definition to marketing.
2.3 Importance of Marketing.
3. Chapter 3: Consumer Behavior
3.1 Introduction to consumer behavior.
3.2 Meaning & Definition to consumer behavior.
3.3 Importances of consumer behavior.
3.4 Factors influencing consumer behavior.
4. Chapter 3: Mobile Marketing
4.1 Introduction to mobile marketing.
4.2 What is mobile marketing all about?
4.3 Importances of mobile marketing.
4.4 Types of mobile marketing.
5. Chapter 5: Process of Mobile Marketing
5.1 How is mobile marketing done?
5.2 Campaign rollout for mobile marketing.
5.3 Hurdles in mobile marketing.
6. Chapter 6: Usage of Mobile Marketing
6.1 Current market situation.
6.2 The Interactive scenes in India.
6.3 Organization that have adopted mobile marketing.
6.4 Future of mobile marketing.
7. Chapter 7: Questionnaire Analysis.

8. Chapter 8: Annexure.
9. Chapter 9: Conclusion.

10. Bibliography & Findings.

 INTRODUCTION

Today it is fashionable to talk about the new economy. We hear that businesses are operating in
a globalize economy; that the things are moving very fast; that are markets are characterized by
hyper competition; that disruptive technologies are challenging every business; and that
business must adapt to the empowered consumer.

The old economy seemed simpler. It was based on industrial revolution and on managing
manufacturing industries. Manufacturers applied certain principles and practices for the
successful operation of their factories. They standardized products in order to bring down costs.
They aimed to continually expand their market size to achieve economies of scale. They tended
to replicate their procedures and policies in every geographic market. The goal was efficiency;
and to accomplish this the firm was managed hierarchically, with a boss on top issuing orders to
middle managers, who in turn guided the workers.

The new economy, in contrast, is based on the digital revolution and the management of
information. Information has a number of attributes. It can be infinitely differentiated,
customized and personalized. It can be dispatched to a great number of people who are on a
network and it can reach them with great speed. To the extent the information is public and
accessible, people will be better

Marketing is the process of communicating the value of a product or service to customers.

Marketing might sometimes be interpreted as the art of selling products, but selling is only a
small fraction of marketing. As the term "marketing" may replace "advertising" it is the overall
strategy and function of promoting a product or service to the customer.

From a societal point of view, marketing is the link between a societys material requirements
and its economic patterns of response. Marketing satisfies these needs and wants through
exchange processes and building long term relationships. The process of communicating the
value of a product or service through positioning to customers. Marketing can be looked at as
an organizational function and a set of processes for creating, delivering and communicating
value to customers, and managing customer relationships in ways that benefit the organization
and its shareholders. Marketing is the science of choosing target markets through market
analysis and market segmentation, as well as understanding consumer buying behavior and
providing superior customer value.

There are five competing concepts under which organizations can choose to operate their
business; the production concept, the product concept, the selling concept, the marketing
concept, and the holistic marketing concept. The four components of holistic marketing are
relationship marketing, internal marketing, integrated marketing, and socially responsive
marketing. The set of engagements necessary for successful marketing management includes,
capturing marketing insights, connecting with customers, building strong brands, shaping the
market offerings, delivering and communicating value, creating long-term growth, and
developing marketing strategies and plans.

Marketing is an old mankind. Educational institutions trying to attract students, actors

promoting films, politicians seeking votes, Insurance agents selling new policies are examples
of marketing in practice. Business need to practice marketing for achieving growth and
generating profits to survive. It is a powerful mechanism which alone can satisfy the needs and
wants of consumer at the place and price they desire. Marketing is said to be the eyes and ears
of a business organization because it keeps the business in close contact with its economic,
political, social and technological enviorment. Marketing helps in having a good range of
product in constant demand and suggests to the management the scope for improving and
developing new products to satisfy the changing customer needs.
Marketing is the process of finding consumer needs and serving those needs profitably. Thus
customer is the heart of marketing activities. Marketing people are involved in Marketing 10
types of entities: - goods, services, experiences, events, persons, places, properties,
organization, information and ideas.
 Meaning of marketing

Marketing is the process of communicating the value of a product or service to customers.

Marketing might sometimes be interpreted as the art of selling products, but selling is only a
small fraction of marketing. As the term "Marketing" may replace "Advertising" it is the overall
strategy and function of promoting a product or service to the customer.

From a societal point of view, marketing is the link between a societys material requirements
and its economic patterns of response. Marketing satisfies these needs and wants through
exchange processes and building long term relationships. The process of communicating the
value of a product or service through positioning to customers. Marketing can be looked at as
an organizational function and a set of processes for creating, delivering and communicating
value to customers, and managing customer relationships in ways that benefit the organization
and its shareholders. Marketing is the science of choosing target markets through market
analysis and market segmentation, as well as understanding consumer buying behavior and
providing superior customer value.
There are five competing concepts under which organizations can choose to operate their
business; the production concept, the product concept, the selling concept, the marketing
concept, and the holistic marketing concept. The four components of holistic marketing are

relationship marketing, internal marketing, integrated marketing, and socially responsive

marketing. The set of engagements necessary for successful marketing management includes,
capturing marketing insights, connecting with customers, building strong brands, shaping the
market offerings, delivering and communicating value, creating long-term growth, and
developing marketing strategies and plans.

Customer orientation

Constructive criticism helps marketers adapt offerings to meet changing customer needs.

A firm in the market economy survives by producing goods that persons are willing and able to
buy. Consequently, ascertaining consumer demand is vital for a firm's future viability and even
existence as a going concern. Many companies today have a customer focus (or market
orientation). This implies that the company focuses its activities and products on consumer
demands. Generally, there are three ways of doing this: the customer-driven approach, the
market change identification approach and the product innovation approach.

In the consumer-driven approach, consumer wants are the drivers of all strategic marketing
decisions. No strategy is pursued until it passes the test of consumer research. Every aspect of a
market offering, including the nature of the product itself, is driven by the needs of potential
consumers. The starting point is always the consumer. The rationale for this approach is that
there is no reason to spend R&D funds developing products that people will not buy. History
attests to many products that were commercial failures in spite of being technological
breakthroughs.

A formal approach to this customer-focused marketing is known as SIVA, (solution Information,

Value, Access). This system is basically the four Ps renamed and reworded to provide a
customer focus. The SIVA Model provides a demand/customer-centric alternative to the well-
known 4Ps supply side model (product, price, placement, promotion) of marketing
management.

Product Solution

Promotion Information

Price Value

Place (Distribution) Access

 Definition to marketing

1.According to the American Marketing Association (AMA):

Board of Directors, 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.

2.Dr. Philip Kotler:

Defines marketing as the science and art of exploring, creating, and delivering value to
satisfy the needs of a target market at a profit. Marketing identifies unfulfilled needs and
desires. It defines measures and quantifies the size of the identified market and the profit
potential. It pinpoints which segments the company is capable of serving best and it designs and
promotes the appropriate products and services.

3. Marketing is the total system of business activities designed to plan, price, promote and
objectives want satisfying products to target market to achieve organizational objectives.
 Importances of marketing

Marketing is a very important aspect in business since it contributes greatly to the success of
the organization. Production and distribution depend largely on marketing. Many people think
that sales and marketing are basically the same. These two concepts are different in many
aspects. Marketing covers advertising, promotions, public relations, and sales. It is the process
of introducing and promoting the product or service into the market and encourages sales from
the buying public. Sales refer to the act of buying or the actual transaction of customers
purchasing the product or service.

Since the goal of marketing is to make the product or service widely known and recognized to
the market, marketers must be creative in their marketing activities. In this competitive nature
of many businesses, getting the product noticed is not that easy.

Strategically, the business must be centered on the customers more than the products. Although
good and quality products are also essential, the buying public still has their personal
preferences. If you target more of their needs, they will come back again and again and even
bring along recruits. If you push more on the product and disregard their wants and the benefits
they can get, you will lose your customers in no time. The sad thing is that getting them back is
the hardest part.

1.Marketing Promotes Product Awareness to the Public

It has already been mentioned in the previous paragraph that getting the product or service
recognized by the market is the primary goal of marketing. No business possibly ever thought
of just letting the people find out about the business themselves, unless you have already
established a reputation in the industry. But if you are a start-out company, the only means to be
made known is to advertise and promote. Your business may be spending on the advertising and
promotional programs but the important thing is that product and company information is
disseminated to the buying public.

Various types of marketing approaches can be utilized by an organization. All forms of

marketing promote product awareness to the market at large. Offline and online marketing
make it possible for the people to be educated with the various products and services that they
can take advantage of.

A company must invest in marketing so as not to miss the opportunity of being discovered. If
expense is to be considered, there are cost-effective marketing techniques a company can
embark on such as pay-per-click ads and blogging.

2.Marketing Helps Boost Product Sales

Apart from public awareness about a companys products and services, marketing helps boost
sales and revenue growth. Whatever your business is selling, it will generate sales once the
public learns about your product through TV advertisements, radio commercials, newspaper
ads, online ads, and other forms of marketing. The more people hear and see more of your
advertisements, the more they will be interested to buy.

If your company aims to increase the sales percentage and double the production, the marketing
department must be able to come up with effective and strategic marketing plans.

3.Marketing Builds Company Reputation

In order to conquer the general market, marketers aim to create a brand name recognition or
product recall. This is a technique for the consumers to easily associate the brand name with the
images, logo, or caption that they hear and see in the advertisements.

Ads

Marketing plays a very essential role in the success of a company. It educates people on the
latest market trends, helps boost a companys sales and profit, and develops company
reputation. But marketers must be creative and wise enough to promote their products with the
proper marketing tactics. Although marketing is important, if it is not conducted and researched
well, the company might just be wasting on expenses and time on a failed marketing approach.

Introduction to Consumer Behavior.

People differ not only in the usual ways by age and gender, by race and nationality, by
education and occupation, by marital status and living arrangements but also in their activities
and interests, their preferences and opinions. They differ in the music they like the television
shows thedy watch, the political beliefs they hold, the clothing they wear. Some people prefer to
shop at stores that offer large selection of merchandise and low price, while others prefer stores
where they can get in and out quickly and for which they are willing to pay a premium to save
time.

In addition to the diversity among people, there is also tremendous diversity among marketers.
Shift from mass marketing to niche marketing to direct marketing from showrooms to custom
catalogs, from selling through direct mail to selling through television shopping networks.

What we buy, how we buy, where and when we buy, in how much quantity we buy depends on
our perceptions, self concept, social and cultural background and our age and family cycle, our
attitudes, belifes value, motivation, personality, social class and many other factors that are both
internal and external to us. While buying, we also consider whether to buy and not to buy and,
from which source or sellers to buy. In some societies there is a lot of affluence and, these
societies can offer to buy in greater quantities and at shorter intervals. In poor societies, the
consumer can barely meet his barest needs.

To know the buyer, his buying motives, and buying habits, to understand not only his needs and
desires, but also his fancies, foibles and eccentricities, has throughout been a fundamental
necessity for the marketing man, but there is no unified, well defined, tested and universally
established theory of buyer behavior established. All researches and studies have contributed to
a vast assortment of information on buyer behavior.

The term consumer is ofent used to describe two different kinds of consuming entities:

The personal consumer who buys goods and services for his or her own use(eg. Shaving,
shampoo) for household use(VCR) or as a gift for a friend. In these contexts, the goods
are bought for a final use by individuals, who are reffered to as enduser or ultimate
customers.
The organizational consumer which includes commercial and not-for-profit businesses,
government agencies (local, state, and national), and institutions (eg school, hospitals,) all
which must buy products, equipment, and services in order to run their organizations.
 Definition of consumer behavior.

Consumer behavior can be defined as the decision-making process and physical

activity involved in acquiring, evaluating, using and disposing of goods and services.

This definition clearly brings out that it is not just the buying of goods / services that receives
attention in consumer behavior, but the process starts much before the goods have been
acquired or bought. A process of buying starts in the minds of the consumer, which leads to the
finding of alternatives between products that can be acquired with their relative advantages and
disadvantages. This leads to internal and external research. Then follows a process of decision-
making for purchase and using the goods, and then the post purchase behavior which is also
very important, because it gives a clue to the marketers whether his product has been a success
or not.

Consumer behavior involves the psychological processes that consumers go through in

recognizing needs, finding ways to solve these needs, making purchase decisions (e.g.,
whether or not to purchase a product and, if so, which brand and where), interpret
 information, make plans, and implement these plans (e.g., by engaging in comparison
shopping or actually purchasing a product).

Importances of Consumer Behavior

1. Saves From Disaster

The failure rate of new products is surprisingly high not only in highly competitive econo-
mies of USA, Europe and Japan etc but even in India. For instance Roohafza of Hamdard
succeeded well but when other companies, like Dabur, tried to produce similar products they
could not succeed. Dabur had to stop production of Sharbat, because consumers did not like
its taste. Maggi became very popular with consumers but when other companies tried they
failed, some of them have become sick. There are many more such examples. If one tests the
market before launching a new product this type of disaster can be avoided or minimized.

2. Helps in Formulating The Right Marketing Strategy

If one studies well what factors will influence demand of a product accordingly production
and marketing strategies can be framed. Nirma in initial stages succeeded in its washing
 powder only on account of its price. It gave tough competition to Hindustan Lever, Surf the
market leader and today Nirma has become a big producer.

In food items it is taste, which decides whether consumer will buy the product or not. Besides
big names even small producers have succeeded because of proper product. For instance, a
small producer of Sikanji (cold drink prepared by mixing syrup and lemon) at Modinagar has
become a name in the region and now he provides franchise to others. From a small pan shop
he has become a well-known name in the area of Delhi-Modinagar and made huge profits.

3. Helps in Sales Promotion

If through the study of consumer behavior one is able to know correctly the factors which
influence buying decision of the consumer one can promote sales of existing or new product
The scheme of buying back old items has helped a lot LML in pushing sales. Akai TV and
number of other companies like Bajaj Auto followed this strategy. Manufacturers of diesel
generator sets, refrigerators, electric iron, pressure cookers etc also adopted the strategy and
benefited.

Similarly introduction of small packs of shampoos, washing powder and pan masala etc has
helped the companies to expand their market. "When producers found that even a poor
person does not mind trying a new costly product if it is available in affordable price pack
many companies introduced such packaging and when the product was liked they became
regular customers.

4. Aids in Segmentation of Market

 The study of consumer behavior suggested that every one does not buy on price consid-
eration or utility consideration only. For high-income groups high priced cloth, cars, etc have
been produced. In certain cases the price of such cloth is three to eight times of normal
suiting price but some section still buy it for prestige or show. The producers of such items
make heavy profits, which would not have been possible without study of consumer
behavior because it is against basic economic theory. Even some producers to cater different
segments produce varieties of products such as soaps, creams, toothpastes etc.

5. Enables Development of New Products

Before launching a new product proper study of consumer tastes i.e. behavior avoids later
failure and loss. This is particularly true for food items and daily consumption products. It is

equally true for fashion goods like garments, cosmetics, cigarettes and new flavors of existing
products. In certain cases if a product is reintroduced after a long gap this type of study helps.

For instance Coca-Cola was banned in India in 1977 and consumers by and large forget its
taste and liking. Thumps up and other drinks took its place. When Coca-Cola was
reintroduced in 90's it could as yet not reach the same supremacy. Life Bouy re-oriented its
product and produced different items like Life Bouy Gold, Life Bouy Plus to meet demand of
different consumers.

6. Helps in Product Orientation

The study of consumer behavior helps to find out why consumers are drifting away from a
product or why they do not like it. For instance some of Indian toothpastes are being
produced for long like Neem but it could not capture the market. There are many other
instances when a new product has been developed or reoriented to again capture its old
glorious position. Those who do it scientifically succeed and others who do not study
 consumer behavior properly or do not orient loose the market, merely by pretty faces or fancy
claims he wants to be assured that what is claimed is really true. Therefore based on
consumer research new technique are used Hindustan Lever and Procter & Gamble for Surf
Ultra and Ariel has brought in producers of cloth Bombay Dyeing and Reliance to testify
claims of producers of these washing powders. This is not an isolated case but this type of
study had paid good results to others also.

7. Aids in Reorientation of Packaging

A great deal of importance is being given to packaging for quite sometime by marketing
department and market research. But whether a particular packaging is liked by consumers
or not is a recent phenomenon. Consumer if likes a packing helps in pushing sales.
Producers of Vanaspati (hydrogenated oil), milk, drinks items, etc have developed utility
packaging so that once container becomes empty they can be used for refilling. In certain
cases this fact is advertised also. But in many cases this has been done without study of

consumer behavior and his attraction or disliking of a particular packaging. The fact
however remains that proper study can help in pushing sales.

8. Helps Consumers to Study their Behavior

The consumers often are guided by their income, emotions, opinion of others and they do not
undertake study of their behavior whether it is scientific or not. The science however can help
them to study cost benefit of their buying decisions. The study can reveal to them whether
buying an expensive item is rational or not. Whether they should buy Rs. 2 ball pen or fancy
pen costing Rs. 100 or more. Whether they should decide in favor of expensive cloth, car,
consumer durables and other fashion goods or should they buy on utility consideration. If
 there are competitive goods it can help them to make consumer preference chart and then
decide what to buy immediately and what to postpone and what should be rejected.

Factor influencing consumer behavior

The factors that influence consumer behavior can be classified into internal factors or
(individual determinants) and, external environmental factors.

The individual determinants that effect consumer behavior are:

Motivation and involvement

Attitudes
 Personality and self concept

Learning and memory

Information processing

The external influences or factors are:

Cultural influences
Sub-cultural influences
Social class influences
Group influences
Family influences
Personal influences
Other influences

External factors do not affect the decision process directly, but percolate or filter through the
individual determinants, to influence the decision process as shown in Figure below. The arrow
shows how the external influences are filtered towards the individual determinants to affect the
decision process

A Internal factors
1. motivation and involvement

In a society, different consumers exhibit different consumer behavior because they are unique
and have unique sets of needs. Motivation is that internal force that activates some needs and
provides direction of behavior towards fulfillment of these needs.

Involvement refers to the personal relevance or importance of a product or a service that a

consumer perceives in a given situation. Depending on the value and personal interest, a
consumer can have a high or low involvement. For a professional tennis player, the choice of a
tennis racket is made with great car. He sees the weight, size, grip and tension of the strings, etc.
The racket is his most important professional tool. Similarly, a professional photographer has to
buy a camera with the right specifications and attributes. For another person, a tennis racket
may only be a means of entertainment or in the case of a camera, the recording of family and
other events by a camera, which is convenient and handy.

2. Attitude

These are our learned predispositions towards people, objects and events. Attitudes are
responsible for our responses and are not inborn but are learnt from people around us. They
influence our purchase decisions and consumer behavior. A person having a carefree attitude
will buy an object without much involvement. People, who want to play safe and avoid risk
taking, will go for a safe investment. People who want convenience and are short of domestic
help, will have positive attitudes towards canned and frozen foods.
3. Personality and Self Concept

It is the sum total of our mental, physical and moral qualities and characteristics that makes us
what we are. Consumers try to buy the products that match their personality. People wanting to
look-manly will buy products with a macho appeal, which would enhance their image and
personality. People, who give emphasis on comfort and care, will purchase comfort products
and so on. If one wants to emulate a film star his choice will be different from others.

4. Learning and Memory

Every day we are exposed to a wide range of information, but retain only a small portion of it.
We tend to remember the information that we are interested in or, that is important to us.
Different members of the family are interested in different types of information, which they
individually retain. Mothers retain information regarding household items. Father retains
information regarding his interest in cars, motorcycles and other objects. Children are interested
in objects of their interest like amusement parks, joy rides, Barbie dolls, etc.

Our motives, attitudes, personality filters the information. Keeping only relevant information in
our minds and, keeping the others out. This is known as selective retention. We retain in our
memory only selective information that is of interest to us.

5. Information Processing

All consumers analyze and process the information they receive. These are activities that a
consumer engages in, while gathering, assimilating and evaluating information. Consumers
assimilate and evaluate selective information and this reflects on their motives, attitudes and
personality and self-concept. Different individuals can evaluate same information in a different
manner. The most common example is a glass half filled with a liquid. It can be interpreted as
"half empty" or half full. The first is a pessimistic view and the other is an optimistic view of
processing the information.

B. External Environmental

1. Cultural Influences

It is defined as a complex sum total of knowledge, belief, traditions, customs, art, moral law or
any other habit acquired by people as members of a society. Our consumer behavior, that is the
things we buy are influenced by our background or culture. Different emphasis is given by
different cultures for the buying, use, and disposing of products. People in South India have a
certain style of consumption of food, clothing, savings, etc. This differs from the people in the
North of India. Different cultures and habits are predominant in different parts of the world.
Japanese have a different culture from that of USA, England or Arabian countries. Therefore, in
consumer behavior culture plays a very important part.

2. Sub-Cultural Influences

Within a culture, there are many groups or segments of people with distinct customs, traditions
and behavior. In the Indian culture itself, we have many subcultures, the culture of the South,
the North, East and the West. Hindu culture, Muslim culture. Hindus of the South differ in
culture from the Hindus of the North and so on. Products are designed to suit a target group of
customers that have similar cultural backgrounds and are homogeneous in many respects.
3. Social Class

By social class we refer to the group of people who share equal positions in a society. Social
class is defined by parameters like income, education, occupation, etc. Within a social class,
people share the same values and beliefs and tend to purchase similar kinds of products. Their
choice of residence, type of holiday, entertainment, leisure all seem to be alike. The knowledge
of social class and their consumer behavior is of great value to a marketer.

4. Group Influences

A group is a collection of individuals who share some consumer relationship, attitudes and have
the same interest. Such groups are prevalent in societies. These groups could be primary where
interaction takes place frequently and, consists of family groups. These groups have a lot of
interaction amongst themselves and are well knit. Secondary groups are a collection of
individuals where relationship is more formal and less personal in nature. These could be
political groups, work group and study groups, service organizations like the Lions, Rotary, etc.
Other member of the group influences the behavior of a group. An individual can be a member
of various groups and can have varied influences by different members of groups in his
consumption behavior. An individual can be an executive in a company and a member of a

political party; he may be a member of a service organization and of entertainment clubs and
study circles. These exert different influences on his consumption.

5. Family Influence

As has already been said, the family is the most important of the primary group and is the
strongest source of influence on consumer behavior. Children learn the family tradition and
customs, and they imbibe many behavioral patterns from their family members, both
consciously and unconsciously. These behavior patterns become a part of children's lives. In a
joint family, many decision are jointly made which also leave an impression on the members of
the family.

These days the structure of the family is changing and people are going in more for nucleus
families, which consists of parent and dependent children. The other type of family is the joint
family where mother, father, grandparents and relatives are also living together.

6. Personal Influences

Each individual processes the information received in different ways and evaluates the products
in his own personal way. This is irrespective of the influence of the family, social class, cultural
heritage, etc. His own personality ultimately influences his decision. He can have his personal
reasons for likes, dislikes, price, convenience or status. Some individuals may lay greater
emphasis on price, others on quality, still others on status, symbol, convenience of the product,
etc. Personal influences go a long way in the purchase of a product.

7. Other Influences

Consumers are also influenced by national or regional events, which could be like the Asiad,
the Olympics, cricket test matches, World Cup, the war or a calamity. These leave permanent or
temporary impressions on the mind of the consumer and affect his behavior. In these events,
products are advertised and sometimes the use of a product like drugs, etc. is discouraged.
People are urged to adopt family planning methods. Situation variables such as product display,
price reduction, free gifts and attractive offers also influence consumer behavior.
External factors cannot affect the decision process directly but these are also instrumental and
exert an influence on consumer behavior.

Factors affecting consumers can also be studied by dividing the factors into four groups as
shown below. This can be done under four broad headings, which can have sub headings as
shown

INTRODUCTION TO MOBILE MARKETING

Mobile allows a brand or content provider to target subscribers with anytime, anywhere
marketing. A consumer's mobile device is always on and always connected. That means always
available. Brands can now access consumers when they're at home, at work, in the car,
traveling, and so on. These consumers are in complete control of their mobile experience. When
they choose to be engaged, they're more likely to want to buy. When integrated into a cross-
media marketing communications campaign, mobile provides consumers with a flexible new
medium to target.

The industry has experienced near-hockey-stick vertical growth. In the U.S. alone, text
campaigns (SMS) have experienced approximately 200 percent growth in adoption in the last
year. No other marketing medium, not the Internet, out of home, or print, has experienced this
level of adoption. And this is only beginning (text messaging is only one aspect of the mix).

Mobile allows brands that have relied on traditional channels to create a more direct, sustained
relationship with consumers. Mobile Accord targets its mobile marketing business toward
nonprofits (NPO). They now have a more cost-effective means to target subscribers.

Mobile provides a far more cost-effective channel than direct mail or telemarketing campaigns,
which have traditionally been used by the nonprofits.

For the non-mobile savvy, however, the terms and perceived complexity of the industry appear
daunting. With abbreviations like "SMS," "PSMS," "WAP," and "MMS" and terms such as
"mobile video" and "mobile advertising," how does a brand begin to launch a mobile marketing
campaign? In fact, it's very simple.

The key terms:

SMS (short message service): This is often referred to as "text" or "text messaging." It's
the ability to send text-based messages person to person (P2P); from person to
application, such as a voting application (P2A); or application to person, as with an
acknowledgement or information (A2P).
 PSMS (premium SMS): Premium means the service user will be charged an incremental
fee instead of the basic text charge. The transaction usually involves participation in a
program, purchase of a ring tone or wallpaper, or something similar.
WAP (wireless application protocol): WAP is simply the wireless Web. When you
access an Internet session on your mobile device, you access via a WAP session.
MMS (multimedia messaging service): Ever taken pictures with your phone and sent
them to friends or e-mailed them? That's MMS.
Mobile video: It's exactly what it sounds like: watching TV, music videos, commercials,
and so on from your mobile device.
Mobile advertising: Like Internet or TV advertising initiatives, this is the ability to offer
a call to action or brand banner within the mobile application, whether it's mobile Web
(WAP), text messaging (SMS), pictures (MMS), or video.
Short codes: Cellular service providers offer short codes, made up of four-digit numbers.
Short codes can be used for voting, polling, contests, surveys and direct marketing. They
direct responses from mobile users to a database at the telecom operators' end, which is
then analysed. The data sourced from short codes can be used to track spending patterns.
Individual tastes as well as the needs of millions of users can then be determined.

SMS marketing offers real-time information about the target base, is personalized, accurate
and quantifiable. It is also location-sensitive, hence advertisers can evaluate demographic
charts. Mobiles enable a marketer to reach out to a niche audience and deliver results in
shortened time frames and quicker response times. Marketers who have used it are aware of
its competitive advantage, available literally at the push of a button and have insisted on

integrating the 4-digit short codes consistently across all campaigns. Currently, short codes
allow mobile users to download ringtones and picture messages and even participate in tele-
voting. Even at Rs 6-10 per ringtone, there are many takers. There are around 80,000
downloads a month. Per month, spice telecom company earns Rs 8 lakh-9 lakh just from
short codes.
 Tele-voting applications have also successfully combined the reach of the TV and mobile to
enable an interactive medium. Talent hunt shows such as Indian Idol have evoked a good
response. Each short code attracts around two lakh SMSs per month. The Indian Idol series
received around 5.5 crore SMSs per day.

What mobile marketing is all about?

Mobile marketing is a part of integrated marketing communication that provides a level of

interaction and direct connection with end customers. The ease of one-to-one communication
has popularized mobile marketing greatly. A study conducted by mobile agency Enpocket and
research firm ICM interviewed over 5000 end customers and covered a selection of 150 mobile
marketing campaigns. The study showed that brand awareness in mobile marketing was 12 per
cent higher than that in radio and television campaigns. According to Forrester Research,
mobile marketing response rates are up to five times higher than those of direct marketing. The
average response rate to an SMS campaign is some 8-11 per cent and average campaign cost is
relatively low.

To put it simply, mobile marketing is all about making effective marketing

campaigns by using mobile messaging as a channel between a brand and a consumer. By
sending marketing messages about a brand, the business owner can use mobile marketing as a
direct, immediate and personal interactive channel to the consumer. This can be used in a
number of ways, such as customer acquisition and retention, loyalty programs, product
launches, brand-awareness, redemption and m-coupon services. Mobile marketing can also be
effectively used for direct marketing that can earn revenue in lieu of news and information
services. This can also be used for time and location specific promotions. Mobile marketing is
effective enough to build a two-way relationship between the brand and the consumer, and
serves to generate greater consumer awareness and purchase intentions.

Importances of Mobile Marketing

Text message alerts on your phone are great, especially if you're running around. Not all phones
have e-mail access, but every (cell) phone has text messaging
Text messaging has evolved into a powerful non-voice form of communication for cell phone
users, especially younger subscribers who love to trade short notes and updates. The practice
has grown in just a few years to the point where more than one-third of cell phone users
regularly send and receive text messages, most of them personal.

Now businesses, governments and nonprofit groups are increasingly finding it handy to provide
a wide array of services and information.

In the process they are finding out that text messaging can reach an unusually large audience, is
easy to use and offers an immediacy not found in voice calls, e-mail or instant messaging.

Already texting, as it is commonly called, is being used to handle a number of tasks, from
delivering bank account balances and dispensing medical advice to coordinating emergency
response and providing coupons and marketing pitches.

Text messaging had an inauspicious debut in the 1980s when phone companies used it to alert
cell phone users about incoming voice mails. By the 1990s, text messaging caught on in
Europe, where it flourished as a low-cost alternative to regular phone calls.

Text messaging has been more popular in Europe and Asia, where 70 percent or more of cell
phone customers use it. In some countries, including Ireland, more than 80 percent use text
messages.

But it hasn't caught on as quickly in the United States, in part because people could not send
messages to subscribers of a different cellular service until rather recently. The relatively low
cost of voice minutes in the United States compared with other countries. Mobile marketing is
important because of following reasons:

1. Text to anyone
That changed two years ago, when texting caught on with teens and young adults after phone
companies began allowing text messages to flow between their networks. Television shows like
"American Idol," which allows viewers to text in their votes, have also given the medium a
boost.

Now, about 35 percent of mobile phone users text at least occasionally, paying either 10 cents a
message or a flat monthly fee for unlimited messages. About 48 percent of people said they will
probably use text messaging in the coming year, according to M:Metrics, a mobile marketing
research firm.

According to the wireless industry association CTIA, 9.8 billion messages were sent in
December 2005, up from 2.1 billion in the same month in 2003.

Texting is one major factor behind the runaway popularity of cell phones. There are 215 million
cell phone users in the country, compared with 204 million Internet users.

Companies, banks and government agencies are looking for ways to expand their use of text
messaging.

Bids, searches, flights

Last week, eBay said its customers can now receive text alerts when they are outbid for an
auction item. They can also re-bid via text message.

Google and other search companies like 4INFO have begun using text messaging to deliver
search results over a mobile phone. Airlines including Southwest, United and American offer
text message alerts about flights.
Banks and other financial groups are also getting into the act. Secure Wireless Transfers of
Orange County is a new company that will provide bank account and credit card balances via
text messages starting next month. It will also send alerts about account activity.

San Mateo's Clickatell, one of the leaders in bringing text messaging to the corporate world,
helps FedEx alert customers when a package is about to be delivered. They've also enabled
security firms like ADT to notify homeowners when their burglar alarms have been tripped.

Pieter De Villiers, CEO of Clickatell, said text messaging is an ideal way to contact people
because the message will reach them wherever they are.In the previous world, you would call
someone's home or office. Now with mobile phones you're contacting an actual person. We're
communicating with people, not places.

2.Powerful marketing tool

It's certainly proven popular with for people who want daily feeds on everything from weather,
news and sports to Bible verses.

Text messaging is also becoming a powerful marketing tool. In its World Cup commercials,
Adidas includes a five-digit short code.

A short code is a way that companies and organizations can deliver information to people.
When a person sends a text message to a short code, the company will reply with information or
an invitation to receive future updates and offers.

Snapple recently started a campaign where customers collected raffle numbers from their bottle
caps and participated in drawings via text message. Movie posters are starting to sport short
codes that provide information about the movie.
Enpocket, the Boston mobile marketing company behind the Snapple campaign, is also working
with several East Coast radio stations to let people request songs via text messages. The stations
message the listener 15 minutes before their song is to be played.

With text messages, you can send messages and you can get an instant reply. The phone
becomes a remote control for life.

Government agencies and nonprofit groups are also realizing the advantages of texting. San
Francisco's Public Health Department recently began offering information about sexually
transmitted diseases via text messages. Starting last year, cell phone subscribers could sign up
for Amber Alerts about missing children. And the San Francisco Neighborhood Parks Council
ran a disaster drill in April in which dozens of volunteers reported conditions from around the
city using text messages.

3 Emergency uses

Messages are a valuable emergency tool because they are more reliable than phone calls and use
less battery power. After Hurricane Katrina, most voice calls failed to connect but text messages
could be delivered.

During Katrina and the London subway bombing, the only way people could communicate was
over text because the voice lines were jammed. It remained open or didn't doesn't get clogged
up as quickly.

Text messaging also is credited with influencing elections in the Philippines, Spain and South
Korea. Experts said it will be only a matter of time before text messages play a role in U.S.
elections.
One of the organizations looking to take advantage of that potential is San Francisco's Music for
America and its nonprofit arm MFAC3, which recently began enlisting musicians to get people
to register to vote via cell phone. An artist at a concert can now direct people to text a keyword
to a short code, allowing them to receive voter registration forms in the mail or by e-mail.
MFAC3 plans to follow up by texting people on Election Day to remind them to vote.

4 .What about Spam?

With this growing interest in text messaging comes the potential that it can be used for Spam.
Though some subscribers have encountered isolated cases of unsolicited messages, text Spam
has not approached the volume of unsolicited e-mail messages.

That's because carriers have been vigilant about patrolling their networks for mass text message
senders and are quick to suspend numbers that are being used for spam. Companies also have
been required subscribers to consent to marketing messages. And because text messages cost an
average of 10 cents and e-mail is practically free, fewer people send Spam via phones.

The companies remain on guard.

5. The power of text messaging

-- Virtually all cell phones sold today can send and receive text messages.

-- A cell phone subscriber can send a short message of up to 160 characters to any other text-
enabled cell phone number or to a 5-digit short code, which acts as an address for companies
and other organizations.
-- Users can give their permission to receive alerts or they can text in requests for deals, contests
or information.

-- Each message typically costs 10 cents and is sent in a short package of data that is continually
transmitted until it arrives at its destination. One message can usually be sent to up to 25 people
at one time.

6. HEALTH

San Francisco Public Health Department dispenses medical information about sexually
transmitted diseases via text messages

7. Financial

Banks and financial companies are providing alerts for account activity

8. Political

Music for America is registering voters via text messages

9. Advertising

Advertisers are using text messages on posters, commercials and banners to reach out to
consumers, offering them coupons, discounts or deals
10. Education

Teachers can update parents and students on upcoming assignments or alert them to emergency
situations

11. Commerce

EBay users can get alerts when they are outbid on auctions and are given the opportunity to up
their big via text messages
 Types of mobile marketing

To get maximum benefits out of mobile marketing, it is important to understand the kind of
mobile marketing that is possible. By knowing more about various types of mobile marketing
options, one can plan an effective strategy. Lets look at the types of mobile marketing that are
available:

Message-based marketing using SMS and MMS. Short message service (SMS) or
multimedia messaging service (MMS) gives marketers an opportunity to send marketing
messages, strategy or campaigns to the customer. SMS is quick, silent and can be effective in
capturing hot leads. MMS adds value to the messages by combining text, sounds, images and
animation.

Voice-based marketing. The response rate is high in voice-based marketing as the

communication is on a one-to-one basis. Speaking on the mobile and passing on the marketing
details is a better option.

Voicemail marketing. This is an upcoming means of mobile marketing, wherein the

marketers as can simply leave their pre-recorded voice mail messages to their prospect clients.
 How is mobile marketing done?

1. SMS on Short Code.

Short Code is one unique 3 or 4 digit number active across various operators, which has a
SMS gateway.

Charged at Rs.2/- or Rs.3/- to the subscriber depending on the operator.

Each subscriber can get 2 messages free of cost for 1 message sent on any premium
number.

One billion SMS are sent per month by subscribers in India.

Short Codes are mostly used for Lead generation, Contests and Polls.

Works the same on CDMA and GSM technology.

SMS is the cheapest medium for Direct Marketing.

2. Advergaming.

Mobile gaming

There's been a lot of hype lately about gaming, advergaming, and the role both play in the
mobile marketing value chain. Brands can use mobile games for brand awareness, premium
content revenue, product placement, and so on. Games can help integrate fun and entertainment
into the mobile consumer's experience, driving overall adoption of mobile and brand
participation

Mobile Advergaming

Advergaming basically promotes a product or service throughout the game. Many brands
already leverage advergaming in campaigns. CoverGirl recently offered visitors to its site a
mobile game download for "Girls' Night Out Solitaire." Site visitors received $1.00 off the
$5.99 mobile game download just for visiting the site. If consumers entered the UPC code for
the LashExact product, they received $2.00 off the game download. CoverGirl also tempted
visitors to the site with tie-in promotional prizes. The game not only featured brand sponsorship
but also included brand or product placement within the game.

E.G.
 Teen Expectations

It is discovered teenagers expected to be marketed to on their phones, similar to how the

Internet, TV, and other media work. In regard to gaming, teens anticipate and expect
advertising, special offers, email, and SMS messages advising them of new games, incentives,
and ways to rate and share games .

Teens are surprised that there aren't more games that tie into the brands they recognize (they're
actually looking for looking for television and movie references). Teens expect advertising in
their gaming experience, particularly if it leads to discounts or incentives.

Conclusion

Advertising dominates every sphere of our life: the Internet, television, and outdoors. Ads are
everywhere, and mobile is no exception. Ads are being rolled out or trialed in messaging,
mobile Web, video, and downloads. As with every other advertising medium, ads will play a
role in the mobile channel.

Advergaming presents an opportunity for brands to reach the consumer. If the demographic
target is ideal and fun is a focus, try offering games as part of your mobile marketing mix.
3. Mobile Applications.

Informative and useful Java application that can be downloaded onto the Mobile phone just as a
Game.

The content could be sponsored by the brand, Brand placements inside the application or the
content could be about the Brand like address of consumer touch point, Product catalogues &
Mobile Brochure.

Eg

4. WAP (wireless application protocol) Site.

WAP site is a physical space that hosts Mobile content and can be sourced through GPRS
compatible handsets.

Most commonly visited WAP sites for content:

Vodafone Live.

Airtel Live.

BPL MiZone.

Yahoo India.

Rediff.
 Mobile2win.

Indiagames.

Android.

Operator WAP portals still contribute 75% of Indias mobile space.

GPRS Rentals have come down from Rs.499/- to Rs.99/- in the past eight months.

State owned BSNL just started their GPRS service increasing the reach to Rural

E.G. of a wap site

5,Mobile Content.

Wallpapers, Ring tones (Polytones, Truetones, Monophonic), Screensavers, Themes, SMS

Tones and Logos.

Cost for mobile content varies from Rs.7/- to Rs.30/-.

Bollywood still dominates 75% of the Mobile content in India, followed by Cricket and
International Music.

Branded content like Brand Jingle Ring tone, Brand ambassadors wallpapers and themes are
also created and distributed through various channels

6. R-World
Exposure on the R-World Application

Wallpapers

Ring tones

Videos

Contest and Polls

Ga

7. Bluecasting

A high traffic area such as a mall/multiplex hoarding location is required. The hoarding will
announce, You have entered the XYZ (brand) Casting Zone. Switch on your blue tooth
application to receive Free Ring Tones / Screen Savers / MMS/ Wallpapers / special videos

The user will switch on his blue tooth. As this is user initiated it is not spamming.

When a user is within the proximity of a BlueCast server and makes their handset discoverable
the Blue Cast server identifies their device via its blue tooth ID and serves the content in
accordance to the compatibility of the handset.
Users phone locates blue tooth server. The server will identify the users unique ID. It will then
check if the users phone is compatible to receive this data. Server asks permission to transfer
data.

User responds and starts receiving the content on its cell phone. It then rests with the user and
he could view the content whenever he/she wants to do the same.

A web-based access would be given to understand how many persons interacted with the brand
and downloaded content.

8. IVRS(dedicated)

We can have a dedicated system, which allows the consumer to interact with the brand, and it
could be for contests/ offers/or any brand promotion the brand wants to do.

This could be a dedicated no = XX on your handset and this would be connected across
operators pan India. It would be advertised across mass media so that the customers are aware
that they need to call this no to avail/know relevant discounts.

E.g. FOR ICICI Cr CARD: A person carrying a Gold card could press 1 and all the
benefits/discounts of a Gold card would be told to him and he can then all the places where he
can redeem his points could be mentioned..similarly for all other silver/executive card
members.

9) Mobile Shopping/Auction Portal

Now a days there are contests like bid2win through which you can make an reverse auction and
win many things like cell phones, laptops, etc.
 Campaign Rollout for mobile marketing

Steps involved:

Keep your text messages simple and use plain English

Avoid over zealous use of exclamation marks and capitalisation
Do not put spaces in telephones numbers but include them as a single number so they can
be dialed easily from within the message
Plan your communications in advance and keep a record of what you have done and to
whom.
Offer a mobile option alongside other response methods advertised in traditional media
let the consumer choose
Promote the mobile option on communications to reinforce the option
Consider an incentive for choosing the mobile channel, especially if your operational
(acquisition/service) costs are reduced through this medium
Allow opt-outs via text, web and through your front desk and highlight these clearly
Train all customer-facing staff in your permission/privacy policy including how to
manually record of opt-outs
Keep your database up to date
If you are going to be coordinating candidates make sure they can reply to your text
message, i.e. your software handles and re-routes the reply.
The software you use should be capable of supporting a thread so that a conversation of
several text messages is grouped together on screen for ease of use.
Finally, when you run an advertisement for a job include a text-back call to action with a
unique code being the job itself and prospects can find out more. If they send their
house number and postcode you can post a job summary or if they text their email
address you can automate an email reply even containing an interactive questionnaire.
 Hurdles in mobile marketing

There are other potential hurdles. For example, the impact of advertising messages may be
diluted, or even backfire, if the limitations of small screen devices and mobile networks are
not adequately compensated for, and technical issues such as inter-operator and device
interoperability are overlooked. It also warns that significant commitments and investment
by major brands might not materialize due to uncertainty regarding timing of key technology
developments, e.g. availability of ubiquitous, low cost and high speed mobile access, mobile
broadcast TV, alternative DRM and mobile payment systems.

The study demonstrates that rather than mobile operators driving this market, it is small,
entrepreneurial mobile marketing specialists or innovative, established advertising agencies,
which are creating the impetus. Marketers are searching for more effective mechanisms for
influencing buying behavior, partially because the effectiveness of traditional media such as
TV is decreasing as technological and cultural trends are heavily influencing patterns of
media consumption, especially in the youth market -- an important demographic for
advertisers.

Problem #1. The Short Code Process

It can take months to register short codes with a carrier. These are special 4- and 5-digit
numbers that can be used to address messages from mobile phones (GOOGL, 46645, Mozes,
66937, and American Idol voting, 7827). Agencies are frustrated by it. So are their clients
who get sold on a big idea and then learn they cant execute it until a lengthy bureaucratic
process is cleared.

So people are trying to find workarounds. One emerging application that had people buzzing
involves visual recognition technology, which allows a consumer to take a picture of a static
page or billboard using a cell phone and the image automatically gets them to more
information -- as if they had entered a short code.

But short codes have their purpose. Tagging the product with a short code is a common
practice in Europe, and its expected to occur in a major way this year in the US. Nesquik
tagged more than 40 million bottles for a recent promotion.

Problem # 2. Ad Buying Isnt Easy Enough

Advertisers are looking for efficiency.

Problem #3. Selling Mobile Content

Advertisers eager to bypass the restrictions and the tariff charged by the mobile carriers are
aggressively looking to market their services directly to consumers and go off deck, where
they will not appear on the actual cell phone menu. But doing this adds a new wrinkle:
finding a way to bill the consumer for subscription services.
Anil Malhotra, Senior VP of Marketing and Alliances at payment processor Bango, had
people lined up in the exhibit area to hear how his company helps marketers do it. One
client, Hearst Communications built a branded mobile site for readers of Cosmopolitan,
CosmoGIRL! And Seventeen offering pay-per-download and subscription services such as
ring tones, wallpapers and Cosmo Hunks and horoscopes. Print ads are used to promote the
mobile offerings.

One interested prospect was Charlie Minesinger, VP/Business Development for QMobile,
which sells downloadable ring tones, chat and other services. His biggest frustration? The
carriers antiquated billing systems. Dropped signals and other service problems result in a
high rate of failure to complete billing for services.
 CURRENT MARKET SITUATION

For marketers, mobile marketing and advertising has great promise -- it combines the wide
reach of television with the precision of direct marketing and the tracking potential of the
Internet. It enables marketers to create permission-based marketing campaigns rapidly and cost-
effectively in the most personal of all media: mobile.

For mobile operators, mobile marketing and advertising promises an opportunity to engage
with a new set of enterprise customers (brands and advertising agencies) and develop a new and
potentially lucrative revenue stream, and to drive demand for their own mobile data and content
services too.

For consumers, mobile marketing and advertising may provide cheaper or even free
communications and entertainment services on their phones and a convenient way to interact
with the brands they like.

Billion dollar bonanza:The firms latest market research study indicates that mobile
advertising is a huge opportunity with the potential to generate in excess of $1 billion in annual
revenues by 2010 for ad spend, and to facilitate far more in mobile commerce transactions. But
it warns that the development of a robust and profitable mobile marketing and advertising
market will only be possible if the major players -- operators, handset vendors, content
providers, advertisers and Internet portals -- collaborate effectively. It also predicts that the
extent of this collaboration may be limited as the motivations and objectives of some of the key
players will inevitably conflict.
 The Interactive Scene in India

Currently, the total mobile marketing industry is pegged at Rs 100 crore in Indiaand is said to
be growing exponentially, albeit on a small base. Advertising agencies aver that some corporate
insist that about 2% of their total media spend should be allocated to mobile campaigns. The
return on ROI is high. Recently, Coca-Cola has opted for only wireless marketing to promote its
brand Sprite. Players like Nokia and HBO are focusing on mobile marketing to gain visibility.

The trend is really catching upespecially in the past one year. Its a cost-effective way to
create a wireless database for future marketing activities too. Unlike other devices/media, the
handset is a non-share device. Thats an area open to marketers for leverage.

Mobile marketing has taken off for good because technology innovations have allowed
marketers to conduct campaigns across carriers. Dedicated agencies have sprung up that smartly
created the means for brands to monetise the channel and to make it fun for consumers.Since
mobile devices are something that people carry with them all the time and are connected to the
world around them, it has become a perfect marketing tool for advertisers,

What has also helped is the alacrity with which people have taken to the hand-held device in
India. According to Cellular Operators Association on India estimates, the GSM mobile
subscriber base crossed the 70 million mark in April 2006. The subscriber base grew from 69.2
million as on March 2006 to 72.12 million as on April 2006recording an addition of 2.93
million during the month.
Little wonder that media planners and buyers are gung-ho. Mobiles are being used to sell
lotteries to fast food joints to financial services to even FMCGs. Many like Cadbury, Tata AIG,
Asian Paints and Godrej are using mobile as a media platform.

The Internet, which has a penetration of 3.4%, has about 200 odd advertisers; but mobile has
only 80 odd advertisers with three times penetration (8.8%)

To give a quick comparison, the Internet and Mobile Association of India estimates that the
online population in India stands at 38 million, while the online advertising market is pegged at
Rs 162 crore.

There is no dearth of portals dedicated to online games and contests. Interactive advertisements
in rich media, with hyperlinked clicks leading to audio-visual commercial messages, are quite
common on popular websites. Most of the leading Indian media portals have their hands full in
keeping up with the demand for ad space on their web pages.

More than two-thirds of the mobile subscriber base is youth, with a strong penchant for SMS.
Marketers of financial services were among the first in using cell phones to serve their
customers. Many banks facilitate balance checks of customers' accounts through SMS
messages. ABN Amro and Kelloggs are two of the MNCs to promote their products/services
through mobile phones. To further exploit the full potential of SMS in a country with 18
officially recognized languages, Nokia launched many handsets at affordable prices that enable
SMS in the most spoken language, Hindi. Both automated and real-time voice calls are also
extensively used, in varied contexts of CRM.
Media convergence is in full swing, with mobile, TV and internet being complementarily used
by marketers. Reality shows on leading TV channels in India thrive on interactive responses
from viewers through SMS messages. These either enable participation on the shows or decide
the winners on the reality programs telecast. KBC2, the second edition of the Indian equivalent
of "Who Wants to be a Millionaire", elicited 1.6 million phone calls/SMSes for the first three
episodes telecast on Rupert Murdoch owned Star TV in August 2010. In early 2010, viewers
cast as many as 55 million votes through SMS/telephone/internet to decide the winner of a
singing contest "Dance India Dance little champs" on a TV channel. For brand promotion and
creating buzz, marketers and advertising agencies regularly use contest websites such as
contests2win and Hungama. Sometimes even print and radio media are used in tandem with
other media, for cross-promotion.

Direct marketing, sales promotion and events are also a regular part of leading Indian marketers'
strategies, across different product categories. Almost all of the major advertising agencies have
exclusive units to cater.
 Organizations that have used mobile marketing

BlueFire Digital has released a new mobile marketing product to allow digital signage
network operators to reach consumers on their mobile phones and PDAs. BlueFire MS
Standard Edition uses Bluetooth wireless technology to bring music, video trailers, ring
tones, wallpapers, promotional items, coupons, and catalogs to customers mobile devices
without airtime charges.
A NeoMedia Technologies, Inc.company, in cooperation with its FunkTicket AG partner,
brewed up a mobile couponing beer deal for fans attending FIFA World Cup games that
took place in Kaiserslautern, Germany.

To participate, fans call a hotline or send a text message (SMS) with their name
and the catchphrase "Bewegungsmelder Bier." They then receive a money-off
coupon in the form of a smartcode on their mobile phone, which they take to the
beer stand at the World Cup soccer stadium. The smartcode displayed on the
screen of the cellphone is then scanned by Gavitec's EXIO scanner, which instantly
prints a coupon which can be redeemed to save EUR 2 (approximately $2.60) off
the price of a Bitburger beer, drawn from the tap of Germany's second biggest
brewery.

NeoMedia's Gavitec AG developed the hardware scanners to enable the innovative

FIFA World Cup mobile couponing program for fans with partners including
FunkTicket, Bitburger beer, handypoints.de, and Pavillion.

NDTV 24x7 launched a current affairs show You Decide, hosted by staffer Vikram
Chandra. The show takes up topical issues and involves the viewer in the panel discussion
by asking him to vote on the issue by sending an SMS. As the votes keep coming in, the poll
results, displayed on the screen, keep viewers glued to the channel.
 Indian Idol, the music contest on Sony TV, involves voting via SMS as well as through the
internet. Worldwide, the `Idol series elicits nearly 100 million responses, generating huge
SMS traffic.
Star Plus reverse auction for jewellery worth Rs 20 lakh (promoted through its serial
Kahin to Hoga...) evoked six million SMS in three weeks, a response Star India claims
was the biggest generated by the network in Asia.
Celltick has launched a new service that allows companies to buy space on your mobile
phone's idle screen. Celltick's new service is called Live Screen Media, which makes it
possible for companies to advertise and sponsor content teasers on its original Live Screen
platform.

Live Screen Media delivers teaser messages directly onto the phones idle screen
when and only when it is not in use. The teasers can take the form of sponsored
content, brand campaigns or promotional messages. For example, users can select to
receive news headlines, traffic reports, games, sports updates or alerts about sales.
When subscribers see anything that interests them, all they have to do is click once to
access associated content or services.

Lifetime Television ran a six-week Watch, Bid and Win campaign, which allowed players
to bid on items tied into programming. Ratings spiked and it introduced text messaging to
the channels older demographic audience, even prompting some viewers to buy new phones
specifically so they could participate.

Education was crucial for the campaign to work. It included an explicit video step-through
of the process tied into a trivia challenge involving watching the days shows. Lifetime also
used its Web site to drive participation. Customer service staffers were on call to walk
people through the process. To show for its efforts, Lifetime now has a phone list of 8,500
viewers.
 PVR Cinemas will launch mobile ticketing across India in September 06. The solution
allows one to search and select the movie, and enter the theater without having to by a paper

ticket. On Mobile CO. is testing m-ticketing in Bangalore. Currently around 7% ticket sales
in PVR Bangalore take place using m ticketing.
They expect mobile users to adopt the m-ticket in a big way as it allows them the
convenience of sitting at home and booking a movie ticket.
The tickets, however, are going to be more expensive.

FAME CINEMAS LAUNCHES MOBILE TICKETING

Indiantelevision.com: Fame Cinemas has launched mobile ticketing and its available
in Mumbai, Pimpri (Pune) and Kolkata where the multiplexes are located. People can
now book movie tickets of any Fame Multiplexes by a voice-recognition service and
pay through their credit card. The service is powered by On Mobile and is available
for Hutch, Airtel and Idea subscribers.
 Future of mobile marketing

By Manjari Juneja

Mobile advertising has emerged as an integral part of any brands

marketing campaign today. It has become an important engagement
tool for brands, and aims to fulfill the gap that traditional media has
been unable to bridge. With the increasing popularity of the Mobile
Internet, this form of marketing is soon poised to achieve a significant
reach. More than 500 million people in India now own mobile phones,
and there are ample opportunities for content and service providers to generate mobile value
added services (mVAS) revenues from this nascent market.

With the advent of 3G, mvAS including mobile advertising will receive a boost. In the Indian
market, since mobile proliferation is much higher than PC penetration, 3G is expected to drive
the convergence between mobile and Internet platforms. There has been a dramatic increase in
online distribution and consumption of user generated content. The popularity of applications
such as Twitter, Facebook and YouTube is proof of this. As greater bandwidth is made
available with the advent of 3G and technological innovations in networks, platforms and end
user devices stimulate further demand, this trend will also be witnessed in the mobile space.

Dr. Vasudevan, CEO, Flytxt, said, There are at least 20 million 3G-enabled phones in India,
which means that India already has five times Singapore's population as a potential 3G market.
India is tipped to have a 3G subscriber base of over 100 million by 2012-2013. It will bring in
new value added products with higher visual impact to drive new revenue streams for operators
from different customer segments like the youth. The improved user experience of 3G will also
make the mobile Internet more popular, thereby increasing the potential for mobile advertising.

Sudarshan Dharmapuri, Vice President, Product Management, IMImobile, added, With

3G, the future of mobile advertising will become brighter. 3G will provide the bandwidth that is
required for a rich end user experience. The mobile phone will transform into a new
personalized channel to receive advertisements on.

The market today

The global mobile marketing industry is expected to grow to $24 billion by 2013. According to
industry reports, mobile advertising in India currently stands at around $25 million and
growing.

According to an IAMAI report, revenues from mVAS such as music downloads, mobile gaming
and social networking on mobiles, are slated to reach Rs. 16,520 corers by June 2010.

A recent study by Nokia and TNS India put forth some startling facts as to why mobile
advertising is destined to flourish in India. The report states that 18% of subscribers view
mobile banner ads and, of those, 56% seek more information on the ads viewed. Further, 49%
people opined that they did not mind viewing ads on their mobile phones. The 3G roll out in
India will drive the use of content-rich applications, which will further drive the growth of
mobile advertising.
 New services will be provided in future.

3G and 3.5G telecom services are among the most hyped and talked about in the field of mobile
telecommunications using which a mobile phone user can experience seamless data transfer of
up to 2-8 Mbps. The higher bit rate capabilities of these technologies will bring about the
development of bandwidth-intensive applications.

3G users will avail high-speed mobile broadband access at a much higher speed. Therefore, the
average revenue per user from 3G subscribers will be more than that of 2G or 2.5G mobile
subscribers. The services would enable video downloads and other critical functions.

Once the 3G services are activated, users owning a handset that supports 3G and video calling
would be able to make video calls to a compatible device without the hassle of using a Webcam
and being glued to a laptop or computer screen.
 Questionnaire analysis

1. Do you have mobile phones?

No. of responses %
Yes 100 100
No 0 0
Total 100 100%

Interpretation:

100% of responded use mobile phone in todays generation.

 Are you aware about Mobile
Marketing?
No. of response

Yes
No

2. Are you aware about mobile marketing?

No. of response %
Yes 90 90%
No 10 10%
Total 100 100

Interpretation:
According to survey 90% of the people are aware about Mobile Marketing. And 10% people are
not aware about Mobile Marketing.

Do you get frequent Marketing

Message on your mobile phone?
no.of response

Yes
No

3. Do you get frequent marketing message on your mobile phone?

No. of response %
Yes 80 80%
 No 20 20%
Total 100 100

Interpretation:

According to the survey 80% of the respondent do get frequent marketing messages on their
mobile phone. And 20% of the respondent are not aware.

How frequent do you receive message

on your mobile phone?

4. How frequent do you receive message on your mobile phone?

No. of response %
 15 days a month 23 23%
Once a month 50 50%
Twice a month 27 27%
Total 100 100
Interpretation:

According to the survey there are 23% of respondent who receive message within 15 days a
month, 50% of receive once and 27% of respondent receive twice a month.

Have you responded to the message?

5. Have you responded to this kind of advertising?

No. of response %
Yes 70 70%
No 30 30%
Total 100 100%
Interpretation:

According to a survey 70% of the respondent response to advertisement which they receive on
their mobile phone and rest 30% respondent do not response.

How many times you have responded

to the?

6. How many times you have responded to this kind of message?

None 30 30%
Once 55 55%
Twice 10 10%
 Every time 5 5%
Total 100 100%

Interpretation:

According to the survey there are 55% of the respondent have responded once , 10% of
respondent have responded twice, 5% of respondent have response everytime to the message
they have received on their mobile phone.

And 30% of respondent have never responded to such kind of advertising.

Which type of tool you persuade you

to by the product?
 7. Which type of tool you persuade to buy the product?

No. of response %
Phone calls 70 70%
Message 30 30%
Total 100 100%

Interpretation:

According to the survey 70% of respondent feel that the best way to buy the product is with the
help of phone calls rather than messaging it.

And 30% of respondent prefer message is the better tool to buy the product.

According to you is mobile marketing

effective?

8. According to is mobile marketing effective?

 No. of response %
Yes 85 85%
No 15 15%
Total 100 100%

Interpretation:

According to the survey 85% of respondent find that Mobile Marketing is most effective way
for marketing. And 15% find that mobile marketing is not an effective way for marketing.

Would like to receive such kind of

message on your mobile in future?

9. Would you like to receive such kind of message on your mobile in future?

No. of response %
 Yes 60 60%
No 40 40%
Total 100 100%

Interpretation:

According to the survey 60% of respondent feel that they should receive message in their
mobile in future and 40% of respondent dont want to receive marketing message on their
mobile.

ANNEXURE

Consumer behavior towards Mobile Marketing.

Name:

Age:

1. Do you use mobile phones?

o Yes
o No

2. Are you aware about mobile marketing?

 o Yes
o No

3. Do you get frequent marketing message on your mobile phones?

o Yes
o No

4. How frequent do you receive messages on your mobile phone

o 15 days a month
o Once a month
o Twice a month

5. Have you responded to this kind of advertising?

o Yes
o No

6. How many times you have responded to the message?

o None
o Once
o Twice
o Every time

7. Which type of tool you persuade you to by the product?

o Phone calls
o Message

8. According to you is mobile marketing effective?

o Yes
 o No

9. Would you like to receive such kind of messages on your mobile in future?
o Yes
o No

Thank you.

BIBLOGRAPHY/ FINDINGS

Website

http://www.exforsys.com/career-center/marketing-management/importance-of-
marketing.html

http://en.wikipedia.org/wiki/Marketing

http://www.expresscomputeronline.com/20100111/trend01.shtml
.
www.google.co.in
www.indiatimes.com
www.economictimes.com
 Books & Magazine

By Philip Kotler
Prof. Hemant Kombrabail (Consumer behavior)
Various marketing magazines