3G & 4G Technology: A New Dimension in Mobile Marketing

Dr. Nandkishor G. Sarode

SIBACA Lonavala

ABSTRACT:
Mobile phone is considered to be the next important life style product by consumers. Mobile
marketing is a term that has been used to promote brands; products; or services using the
cellular phones. Because this device is always with us, it has a very high response rate, and
allows spontaneous direct and targeted communication. Its biggest advantage is that the
messages can be pushed anytime, anywhere. Consumers don’t have to go and turn on the
television and actively watch an advertisement, they can receive an advertise on their phone
without any request initiation from their side. Mobile also opens up new markets in
innovative and interactive ways. Mobile subscriber’s base in India is touching 326 million
which is about 30% of total population. Out of the above 68 million are connected with
internet services. Mobile phone penetration in percentage is expected to reach 60% in next 5
years. Tackling competition and perusal of excellence in operations has made marketing a
challenge for all businesses. Mobile marketing is the next innovative tool available to the
marketers to reach out to the customer directly. This research effort is aimed at exploring new
horizons for marketing professionals to target the consumers through advanced mobile
devices. While mobile marketing can be done on any phone that receives SMSes, the new
generation of smart phones is now at the centre of the mobile revolution. Smart phones
consist of two hearts, namely the ‘computer’ component, which includes the mini-computer
aspect as well as the GPS and MP3 player; and the ‘phone’ component, which has
conventionally been used for phone calls and SMS/ text messages. Another way that mobile
phones can be used in interactive mobile marketing.

KEY WORDS AND PHRASES: 3G, 4G, Mobile Marketing, WiMax, GPRS.
INTRODUCTION:
The use of G, standing for generation, in mobile phones (i.e. Cell phone) technology covers
the major advances of the past 20-30 years. 1G technology involved the first widely available
mobile phones. 2G technology, which began in the early 1990s, switched to a digital format
and introduced text messaging. 3G technology improved the efficiency of how data is carried,
making it possible to carry enhanced information services such as websites in their original
format. The latest iPhone is the best known example of 3G technology.

4G mobile is not yet established as an agreed set of standards, so its features are currently
simply goals rather than requirements. As well as drastically increasing data transfer speeds,
4G mobile should use enhanced security measures. Another goal is to reduce blips in
transmission when a device moves between areas covered by different networks. 4G mobile
networks should also use a network based IP address system used for the internet. Unlike
previous generations of mobile technology, 4G mobile will be widely used for internet access
on computers as well as carrying cell phone communications.

Definitions:
Mobile Marketing:
The Mobile Marketing Association’s (MMA) Definition:
“Mobile Marketing is the use of the mobile medium as a communications and entertainment
channel between a brand and an end-user.”
Based on the diverse conceptions, a broader definition of Mobile Marketing could be:
‘Mobile Marketing is a mobile medium that, while still being mainly based on mobile
messaging, is used as a complementary channel to deliver time and location sensitive,
promotional information, advertisement or entertainment. Its aim is to build a one-to-one
marketing in which customers interact anytime, anywhere using their mobile devices. In a
global strategic framework, the goal of Mobile Marketing is to use a new kind of direct
marketing interacting through mobile networks in order to create added value for
stakeholders.’

1G - The first generation of cell phones are considered to be 1G (First Generation). There
networks used analog signals and possessed only voice abilities.
2G - The 2G technology features replaced 1G features by transitioning to digital spectrum
from analog, thus augmenting cell phone capabilities to host multimedia content and
increased bandwidth.

2.5G - Prior to 3G technology, 2.5G was launched - it is not an officially recognized

technology but a marketing term. It was a bridge between the 3G and 2G, which worked on
the 2G infrastructure but delivered some properties of 3G, like increased multimedia prowess
and better data transfer speeds.

3G - Stands for Third Generation of mobile telephony. It optimizes mobile internet services
such as multimedia, high speed mobile broadband, internet access and video footage on
mobile sets by improving data through-puts by about six times compared to 2G and 2.5G
networks. It was first launched in Japan in 2001.

4G - Refers to the fourth-generation wireless which will overtake the 3G platform. It will
primarily address two areas: Access to mobile network and Access to mobile services.
Currently these areas are controlled by one operator in a closed and proprietary way. The
mobile device system architecture will be open in order to converge multiple RTTs (radio
transmission technologies) in one same device. Same as laptop computer, the future
Smartphone will be based on open wireless architecture (OWA) technology which means,
when you change the wireless standards, you do not need to change phone. It is totally
different from current multi-standards phone which is in closed system architecture, and users
can not remove the unused RTT modules and basically cannot do anything on the mobile
phone system.

WiMAX (Worldwide Interoperability for Microwave Access) is a telecommunications

protocol that provides fixed and fully mobile internet access. The current WiMAX revision
provides up to 40 Mbit/s with the IEEE 802.16m update expected offer up to 1 Gbit/s fixed
speeds. The name "WiMAX" was created by the WiMAX Forum, which was formed in June
2001 to promote conformity and interoperability of the standard. The forum describes
WiMAX as "a standards-based technology enabling the delivery of last mile wireless
broadband access as an alternative to cable and DSL".
The WiMAX Forum is a non-profit organization formed to promote the adoption of WiMAX
compatible products and services.
Code Division Multiple Access 2000 (CDMA2000)
CDMA2000, also known as IS-136 and IMT-CDMA Multi-Carrier (1X/3X) is a radiotrans-
mission technology for the evolution of narrowband cdmaOne/IS-95 to 3rd-generation adding
up multiple features. CDMA2000 will be deployed in two phases.

General Packet Radio Service (GPRS)

A packet-linked technology that enables high-speed (115 kilobit per second) wireless Internet
and other data communications. GPRS will offer a tenfold increase in data throughput rates,
from 9.6kbit/s to 115kbit/s. Using a packet data service, subscribers are always connected and
always online.

Classifications of the different types of Mobile Marketing

1. The FirstPartner's experts [FirstPartner Research and Marketing, 2003] introduce four
different formats in which the audience interacts by using their mobile devices:
• Messaging based: marketing using SMS / Multimedia Message Service (MMS). Most
campaigns today use Short Message Services messaging. Despite the large thrust in the
market for MMS, the penetration in the end-customer population is still relatively low.
• Browser based: marketing using the "mobile Internet" in Wireless Application
Protocol (WAP) format via banner ads and interstitials
• Voice based: marketing using voice lines.
• Emerging: current cutting edge campaign formats which are being used by just a few
specialist agencies such as Java Games, voice mail marketing and LBS.

2. A Swisscom Mobile's executive [Andrist, 2003] introduces four concepts when talking
about Mobile Marketing.
• Once and free: Advertising / Public Relations / Sales Promotion
• With subscription and free: Advertising / Public Relations / Sales Promotion
• Once and charges: Premium Info / Revenues' growth / Contribution to the campaign's
costs
• With subscription and charges: Premium Info / Revenues' growth / Contribution to the
advertisement campaign's costs
3. The Mobile Marketing Association [Mobile Marketing Association, 2000] presents four
manners to conduct advertising campaigns when using mobile messaging, namely:
• SMS-1-Way: promotional code in text
• SMS-2-Way: user is requested to respond from the device
• SMS-call: user is requested to respond by calling a phone number
• SMS-pull: user initiates a call to a special phone number and hangs up; dialing the
number makes a system request to deliver a text message
• Push: mobile phones are used as a primary channel; the interaction is initiated by
sending an SMS to an end-customer; therefore an opt-in from the consumer is required; it
may invite or require an answer from the user; this type of campaigns is used when
targeting a large number of customers. This strategy is particularly useful when building a
relationship with the latter.
• Pull: opposite to push campaigns, mobile phones are used as a feed-back channel,
while the main information is displayed via other media such as TV, Radio, the
Internet…; this form of promotion is mainly used when a small set of consumers is
targeted;
• Fund Raising: this is a way to invite customers to donate to charity through
premium-priced SMS.
• Single-response: this is the simplest format of campaigns as it does not require to
take into account the answers given by the customers; one do not need to be careful not to
repeat the same information twice, either.
• Multiple-response: this may require the customer's subscription (either free or
chargeable). This requires a complicated relationship management as well as a more
complete creative design. This could be used when aiming at creating and maintaining
brand loyalty.
• Free: it is mainly used within a framework of advertising, public relations or sales
promotion. People may not be really interested in one's content due to its being free.
Therefore the privacy and spam concerns must be kept in mind.
• Charges: this allows a better targeting but requires at the same time information of
higher quality and of higher relevance. This enables to increase the company's revenues
and to partly contribute to the cost of the campaign.
What are the Opportunities for Marketers through 3G & 4G?

I) Business-to-Business Applications:
1. Ordering:
Mobile phones are used to reorder products with orders sent to the supplier in a standard
format. By scanning a bar code on a product with a mobile phone and using a simple
application to state quantity required, the owner of a small shop can automatically re-order
goods.

2. Delivery Confirmation:
Mobile phones are used to report or retrieve information about the status of orders during the
transport and delivery process. By using a mobile phone to read a bar code on a case or pallet,
a truck driver can confirm in real-time that an order has been delivered.
3. Stock control:
Mobile phones can be used to keep track of stock and send updates to a central database By
using a mobile phone to scan bar codes or RFID (i.e. Radio Frequency Identification) tags on
products, employees are able to supply the business with real-time stock updates to their
business. Mobile phones (as opposed to dedicated mobile scanners already used in
warehouses) are particularly attractive tools where stock is stored in many locations (such as
stock control of apparel items directly in department stores).
4. Authentication:
Mobile phones are used to check whether or not a product is genuine. By using a mobile
phone to scan an RFID tag on a product, anyone in the supply chain can check if a product is
genuine.
5. Supply Chain Information:
Information about the supply chain processes is available via a mobile device. By scanning
an RFID tag with a mobile phone, anyone in the supply chain can check information about a
product’s past and future states in the supply chain.
6. Traceability:
Mobile phones are used to access traceability information about a product by scanning a bar
code on a product with a mobile phone, anyone in the supply chain can verify traceability
information related to the product.
7. Distributed teams/collaboration:
Mobile phones are used by teams to work together more effectively by scanning an RFID tag
at a location, members of distributed teams can communicate to others in a team that they
have completed a task at a remote location. A security company requires that its agents use
their mobile phone to scan RFID tags at specific locations during their shift. They can use
this to prove that they are providing an effective service to their customers.
8. Advertising & Promotion
Advertising and promotional information is sent direct to mobile phones of consumers in a
shop.

II) Business-to-Consumer Applications:

1. Store Location:
A map is displayed on a mobile phone showing where consumers can buy a product A
consumer is visiting the website for a product he likes.

2. In-store navigation:
Consumers find products more easily when in a shop. A consumer comes into a store is scans
an RFID tag to turn their phone into a shopping assistant. They can now search for any
product in the store and know exactly where it is (aisle, shelf), how much it costs, and any
other information necessary to make a purchasing decision.
3. Comparison Shopping:
Consumers use their mobile phone to access information about product characteristics and
price for related products. A consumer is in a shop. She uses her mobile phone to access a
web-based comparison shopping application. By scanning a bar code on a product, she is able
to see the price of this product in different shops in her area. Having seen that the product is
reasonably priced, she decided to buy it.
4. Information & Extended Packaging
Consumers access additional information about products through their mobile phone A
consumer is in a foreign country.
5. Data-rich products
Consumers access information about products through their mobile phones. A consumer buys
a television. Full access to product instructions and guarantee are available using a mobile
phone to scan an RFID tag embedded inside the product throughout its lifecycle.
 6. Self-Scanning:
Consumers in supermarkets use their mobile phone (rather than a device supplied by the
supermarket) to scan products as they do their shopping
7. Authentication:
Mobile phones are used to check whether or not a product is genuine A consumer is watching
television. She sees a news report about a counterfeit pharmaceutical product. Using her
mobile phone, she scans a bar code on the product packaging. She connects automatically to
a anti-counterfeiting application that checks the product’s authenticity.
8. Ticketing:
Mobile phones are used to distribute and redeem tickets. A concert-goer buys concert tickets
online. When she pays she gives her credit card number. A unique bar code is sent by SMS to
her mobile phone. She gains entry to the concert by showing the bar code to a reader at the
entrance.
9. Interactive Publications:
Publication readers can retrieve more information using their mobile phone. Bar code under
each article and product advertisement allows readers of magazines, newspapers, and other
publications or retrieve additional information necessary to increase comprehension and to
make purchasing decisions.
10. Coupons:
Mobile phones used both to capture and redeem coupons and discounts. A consumer sees an
offer for a new product in a magazine. By scanning a bar code with her mobile phone, she is
able to take the offer with her to the shop.
11. Interactive TV
TV viewers can interact with what’s happening on screen using their mobile phone. A
consumer watches a dating programme on TV. Each of the potential dates is wearing a t-shirt
with a bar code. Using her mobile phone to scan the bar code, she received extra information
about the person and decides whether she is still interested. A bar code runs under a TV
advertisement for a product on TV. By scanning the bar code the consumer can purchase the
product.
12. Catalogue shopping
Mobile phones are used to place orders for products in a catalogue. A consumer receives a
catalogue by mail from a catalogue shopping company. Each product on sale is accompanied
by a unique bar code. By scanning the bar codes, the consumer can buy products directly
from the catalogue.
 13. Personal Safety
Mobile phones are used to alert current location. A person takes a taxi at night. By moving
her RFID enabled phone close to a unique RFID tag placed in the taxi, she is able to
automatically send her current location and her expected time of arrival to a friend by SMS.
14. Text to voice
Mobile phones translate text to voice for elderly or visually-impaired consumers. By passing
their mobile phone close to an RFID tag, an elderly or visually impaired consumer can hear
information about a product or promotion.

What are the key features of Mobile Marketing?

Mobile Marketing should be seen as part of the overall Marketing Mix not as a separate
channel. The key advantages of Mobile Marketing are that it is:
• Instant and Direct
• Interactive
• Personalized
• Perceived as highly innovative
• Offers ‘real time’ campaigns
• Can be well targeted - Coke claims that mobile phones are potentially more powerful than
TV in reaching its target audience
• Can be very cost effective - the average response rates for mobile campaigns are typically
several times higher than those achieved through conventional direct market media alone.
• Can reach people on the move – 15 to 19 and 20 to 23 year olds spend the least time at
home.
• More likely to reach the customer - Mobile messages are more likely to be opened and read
then Emails – possibly because they seem more personal
• Can cut through a saturated media landscape Opera telecom gives the following statistics:
• Mobiles outnumber PCs 10: 1
• More texts are sent than emails
• 94% of text messages are read – 75% instantly
• 66% of consumers recall mobile marketing campaigns
• 36% of recipients admit that they are likely to purchase products
References:

1) ‘Mobile Advertising in International Marketing Context’ Journal of International

Marketing And Exporting, Volume 14, Number 1, 2009
2) "WiMax Forum - Technology", www.wimaxforum.org/technology/.
3) ‘How to Develop a Mobile Marketing Strategy’ by Chris Bourke, Managing Director,
Aerodeon July 2006.
4) ‘TRAI starts process for 4G services’ April 2010 from www.expressindia.com
5) ‘3G in India: Technology & Market Analysis’, from www.researchandmarkets.com
6) ‘Grown up digital: how the net generation is changing your world.’ By Dan tapscott,
International Journal of market Research, Vol. 52, Issue 1, 2010.