Paper to read (An inquiry into the effectiveness of internet marketing)

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UNIVERSITY CANADA WEST

MBA 522 CONSULTING PROJECT

AN INQUIRY INTO THE EFFECTIVENESS OF INTERNET MARKETING FOR SOHI GLASS HOUSE, MOHALI, AND DEEP

GLASS HOUSE, DHURI, PUNJAB

Prepared by: Mandeep Kandola

For: Mr. Hardeep Sohi, Gagandeep Madahar, Dr. Shawn Ireland and Dr. Syd Scott.

Date: April 1, 2009

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Dedication

I would like to dedicate my paper to my parents and my husband who

have always had faith in my abilities and have always taught me to be my best

and for the support, encouragement they have provided me throughout this

project and the whole MBA program.

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Acknowledgment

I would like to acknowledge and thank those people who contributed to this

report:

Dr. Sydney Scott for her guidance, support, review, encouragements,

advice, and mentoring for my study.

Dr. Shawn Ireland for his endless support, valuable insight, and feedback

to make this research successful.

Dr. Marcelo Machado for providing an opportunity for this project and for

valuable feedback and suggestion in order to complete this report.

Dr. Alexandra Pett for her writing and editing assistance.

Hardeep Singh Sohi for his encouragement and endless support to

complete this project.

Mandeep Kandola

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TABLE OF CONTENTS

Dedication…………………………………………………… ………………………… ..2 Acknowledgement……………………………………………………………………… .3 Table of Contents……………………………………………………………………… ..4 Table of Figures………………………………………………………………………… .5 List of Tables………………………………………………………………………… ......6 Introduction…………………………………………………… .………………………… 7 Purpose………………………………………………………………………………… ...8 Statement of Project Deliverable……………………………………………………… .9 Literature Review...................................................................................................12

Internet Marketing......................................................................................12 History of Internet Marketing......................................................................15 Internet Marketing in India..........................................................................17 Web Portal..................................................................................................37 Online Consumer Behaviour and Market Shares.......................................40 Internet Challenges and Opportunities.......................................................40 Online Advertising Revenue Model............................................................44 Successful Online Branding.......................................................................49 The Technical Aspects of On-line Marketing..............................................61 Multilingual Websites..................................................................................66 Attracting More Online Customers..............................................................69 Security Fears Persist .................................................................................70

Research Methodology...........................................................................................72 Recommendations..................................................................................................77 Feedback................................................................................................................89 Modifications Due to Feedback...................................................................91 Caveats...................................................................................................................92 References..............................................................................................................93 Appendixes

Appendix A……………………………………………………………………… .99 Appendix B……………………………………………………………………… .101 Appendix C……………………………………………………………………… .104 Appendix D……………………………………………………………………… .107 Appendix E…………………………………………………………………… .....111 Appendix F...................................................................................................116

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Table of Figures

Figure1. World Internet Users and Population Statistics....................................28

Figure2. Internet Penetration in Asia..................................................................29

Figure3. Asia Internet Users...............................................................................30

Figure4. Internet Usage Rate………………………………………………… .…….31

Figure5. Percentage of Online Buyers…………………………………………… ..32

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List of Tables

Table1. Indian Internet Usage and Population Statistics……………27

Table1. World Internet Usage and Population Statistics……………29

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Introduction

The purpose of this study is to explore the potential for Internet marketing

for the companies Sohi Glass House in Mohali and Deep Glass House in Dhuri,

both in the state of Punjab. The final delivery will be recommendations of best

practices of Internet marketing for the two companies based in India. Today’s

companies and corporations in India have products or services to sell. They

currently market their products through advertising in T.V., newspapers,

brochures, magazines, and radio. It’s time to take the promotions online. The

reason behind this statement is that online marketing is an effective way of

advertising that uses the power of Internet and World Wide Web in order to

effectively deliver marketing messages and attract customers (Internetwork

solutions, 2009). Online advertising includes contextual ads on search engine

result pages, banner ads, advertising networks and e-mail marketing, including e-

mail spam and newsletters. In India, internet users often go to India Centric

websites which are popular and have good traffic building. These sites will bring

the products advertised to a broad base of the Indian population.

The Internet has brought many unique benefits to marketing, one of which

is lower costs for the distribution of information and media to a global audience

(Articlebase, 2008). The interactive nature of Internet marketing, both in terms of

providing instant response and eliciting responses, is a unique quality of the

medium. Internet marketing is sometimes considered to have a broader scope

than other marketing media because it refers to digital media such as the

Internet, e-mail, and wireless media; however, Internet marketing also includes

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management of digital customer data and electronic customer relationship

management (ECRM) systems (Articlebase, 2008).

URL: http://www.articlesbase.com/affiliate-programs-articles/internet-for-business-

637758.html

Purpose

Internet Marketing is one of the important and effective means of

marketing all over the world (Internet Marketing – Benefits galore, November

2008). URL: http://www.synapseinteiractve.com/blog/category/im. The purpose of this

study is to develop recommendations for two companies operating in India to

expand their marketing on-line in accordance to the best practices uncovered in

the literature review. The companies are Sohi Glass House in Mohali, and Deep

Glass House in Dhuri, Punjab.

This research project was designed both to gather the relevant information

concerning adopting the internet for marketing for the two selected clients and to

develop best practices for its effective implementation. The study began with a

literature search on best practices for online marketing including search engine

maximization. Technology world wide is changing rapidly (Technology Review,

February 2003). Due to this technological advancement and the continuous up

grading in technology, Internet marketing is gaining a lot of importance (John,

September 2007).

URL:http://timesofindia.indiatimes.com/India_China_will_drive_Internet/articleshow/2332

060.cms

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Many people searching the internet resort to search engines to help them

find the information needed. Hence, a good ranking on search engines will be

imperative.URL: www.go4promotion.com/internet-marketing-india.htm

Statement of Project Deliverables

Scope

The major component of the research undertaken in this project was the

gathering of information concerning the acceptance rate and opinions regarding

Internet in the Indian market. The original research determined the preferences

and attitudes of the companies’ key clients so that this information could be

considered when developing the recommendations. The final product was the

recommendations of best practices for internet marketing in India. Specifically,

the benefactors of this report will be Sohi Glass House and Deep Glass House.

They will be implementing the recommendations for best practice in internet

marketing.

The project was divided into three phases. The first phase was a literature

search on online marketing including prospects of online advertising in India,

challenges of internet marketing, web portal industry, IT industry in India, search

engine maximization, and establishing best practices in website utilization. These

are covered in the literature review.

The second phase was original research and findings that were client

based. Existing clients of the selected companies were asked to participate in a

survey. The data from the survey were analyzed to assist in recommendations

for Internet marketing.

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The final phase consisted of delivering the recommendations of best

practices for the two companies’ internet marketing. The project will be reviewed

by Dr. Shawn Ireland, Hardeep Singh Sohi and Dr. M. Marcelo, who has

significant experience with internet technology and its use in businesses. The

purpose of this project is to meet both the academic qualities and the business

needs of the two business owners. The breakdown of the phases is based on the

guidelines provided by Business Canada for researching your market (Business

Canada, 2007). The work to be done in each phase within the context of this

project follows:

Phase I included the following tasks:

o Review literature of internet marketing.

o Review literature of internet marketing in India.

o Review literature of challenges and opportunities of internet

marketing.

o Review web portal industry.

o Review of quantitative research methodologies

Phase II was defined by the following tasks:

o Create a questionnaire for existing clients, according to guidelines

provided by Malhotra, & Birks (2000), and Spunt (1998).

o Create a questionnaire for internet marketing clients, according to

guidelines provided by Malhotra, and Birks (2000), and Spunt (1998).

Phase III consisted of:

o Recommendations to the clients (hard copy and electronic).

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Deliverables

The first deliverable of this study was the literature search and

establishing best practices in website utilization, search engine maximization,

online marketing, and questionnaire research. The second deliverable was the

original research into the specific clients of the two companies and their

preferences and attitude towards the internet. The final deliverable was the group

of recommendations for Internet marketing for the two companies. The two

companies intend to focus their strategies in the Internet to allow them to step up

their expansion efforts in India for business, develop genuine leadership,

enhance their sales capacities, and increase their profitability and free cash flow.

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LITERATURE REVIEW

In this section I will be addressing the key areas of exploration in the

literature. The primary focus will be on the internet, India and research methods

which are applicable to a quantitative research study. I will cover the history of

internet marketing in India, internet challenges and opportunities, online

advertising revenue model, success online branding, the technical aspects of

online market maximization, internet marketing in India the security fear, and

quantitative research methods.

Internet Marketing

Internet marketing is by far the fastest growing advertising method for all

companies today. Internet Marketing is yet to be considered as an effective

marketing tool in the Indian environment (Press, Foster, & Goodman, 2003). As

India moves to incorporate Internet marketing, the marketers in India, will need to

develop the knowhow of Online marketing. The companies dealing with Internet

marketing solutions have to keep themselves updated daily with the competition

and the pace set by new products being introduced (Weblinx, 2008).

The more exposure a website gets the more the possibility that the web

site will generate sales, which are the core to any business. An effective website

is one in which there is the adoption of many techniques to promote website

through increasing traffic (Mansoft Creations, 2001). Some of these techniques

used in website promotion and Internet marketing are search engine submission

and ranking, cost per click, branding and banner advertisement (Mansoft

Creations).

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The Internet offers many opportunities for the early adaptors in such a

populated country as India with the growing middle class (Dutta & Roy, 2004).

URL: http://ieeexplore.ieee.org/xpl/freeabs_all.jsp?arnumber=1265240. Sohi and

Deep Glass will be early adapters of internet marketing in India. They will be one

of the first adapters; this places them in good position for future gain. Once the

internet marketing has gained acceptance in India the potential profits gained

through their online campaign will be significant.

Marketing efforts have to be done online not because a few marketing

consultants and strategists say so, but because the clients and prospects are

online and their online experiences are influencing all buying decisions. This

makes it necessary for marketers to focus on the web to sell everything from high

tech services to complex industrial products and for business-to-business

services. Service companies—even those that are beginning to embrace

marketing as a part of their strategy—seem woefully slow to embrace the march

to the World Wide Web. Most common reasons for inaction are slow decision

making. The decision-making process in most 50-person service firms is slower

than in a $500 million dollar company. They simply can't get out of their own way

and allow themselves to implement a serious change to their marketing or

business-development initiatives. Online efforts are so challenging to them that

they retreat to less-confusing ways: buying some ads in the local business

journal, sponsoring a trade show, redesigning their brochure (CRM Today, 2008).

Internet users are increasing in numbers year to year (Weblinx, 2008).

The new generation is geared up for the Internet, and according to Weblinx,

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another big boom of internet users is likely in the near future. In order to

maximize the benefits of internet marketing, it is crucial that this venue of

marketing is addressed in a conscientious manner. First movers, early adapters,

often capture a greater percentage of market shares than those that follow (Hitt,

Ireland, Hoskisson, Rowe, & Sheppard, 2006). As the market is large, the goal is

for Sohi Glass House and Deep Glass House to be innovators in India and

capture the market of the internet savvy clientele. To do this they must create a

quality and accessible internet site which will serve their clients in an efficient

manner to promote sales (Zinkhan, 2002).

It is critical that the recommendations for successful incorporation of the

internet into their marketing be based on best practices. The recommendations

for these companies will provide them with the best practices for creating their

web site. Their website will be their new marketing tool. To get the website traffic

required to generate sales, the recommendations for their website will be

structured correctly for the search engine spiders to understand which web page

represents what product or service on the website (Weblinx, 2008). There are

website marketing techniques—best practices in website marketing—that will

give these companies the edge on their competition. Internet marketing is a cost

effective way to deliver quality buyers for the services at little cost compared to

most types of marketing services (Weblinx, 2008).

URL:http://www.weblinx.biz/internet_marketing.htm.

Internet Marketing not only aims to cater to the demands of millions of

people quickly but also adds convenience for both customers and suppliers

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(Weblinx, 2008). Therefore, future marketers in India, must understand the

relevance of internet marketing. Chowdhury (2007) said, “As of today, the online

advertisement segment constitutes only 1 per cent of the total $2.2 billion Indian

advertisement industry. The segment is likely to cross the $100 million mark by

2010” (p. 45).

URL:http://epaper.timesofindia.com/Repository/ml.asp?Ref=Q0FQLzIwMDcvMDEvMDM

jQXIwNDUwMA==&Mode=HTML&Locale=english-skin-custom

History of Internet Marketing

Marketers were rapidly convinced by the Internet’s huge potential for

success. By the end of 1998, consumers’ e-commerce attitudes forecasted a

tripling of e-commerce activity for the up-coming year (Kottolli, 2005). The online

medium was thought of as a way to create a differentiated image with little effort

to develop a variety of online resources. However, in only several months later,

the problems facing many advertising companies to succeed in cyberspace

proved the opposite (Kottolli). What are the reasons for the online failures, and

should the internet be blamed for this negative result? According to Kottolli,

marketers were operating under the assumption that especially online companies

could effectively activate “marketing plans that assumed brand loyalty could be

built in a quarter” (Para 8). What proved to be even more problematic was that

advertising companies merely concentrated on capturing online users and their

dollars. The adapters of online marketing were “overlooking the simplest

marketing remedies”, disavowing years of consumer and advertising research

(Para 8).

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A lot of businesses spent much money on Internet marketing initiatives yet

few were successful in reaching any specific target (Kottolli). The Internet offered

new business models and media options to only those firms that tried it?

(Kottolli).

Kottolli (2005) emphasized that advertisers should not forget about the

basics of marketing, since these principles have retained much of their value.

What had changed was the how and where these basics were applied. Kottolli

felt that besides considering general issues in branding, including the competitive

advantage of strong brands, and the role of the consumer, advertisers should

pursue the following steps to successfully promote their products online:

o Develop a clear vision of their product on line.

o Conduct extensive research on their consumers and their needs and

habits including on-line habits.

o Formulate an attractive value proposition.

o Develop an appropriate communication campaign to retain previous

customers and acquire new ones.

To break free of old patterns of behaviour and embrace new ways of

acting, companies often need a significant event: a merger, a massive drop in

sales, a major technological advance in their industry (Schultz, 2009). A sea of

change has happened, and that sea is on-line, and it's a matter of taking

advantage of it, before the competitors do.

URL:http://www.whillsgroup.com/pages/6753_services_marketing_is_moving_online_ar

e_you_.cfm

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Schultz found that businesses should approach marketing not by asking

"How should we do marketing," but by asking "How do we want to grow? What

do we need to get done to reach these goals?" These questions may lead to

finding new customers, engaging them with marketing, helping to close new

business and keeping existing customers happy and buying. This means one not

only needs to be online but also needs to be doing the right things online for the

right reasons: in other words strategy.

Internet Marketing in India

Acceptance of the internet as a mode of marketing has been slower in

India than in other countries due to lack of accessibility and infrastructure

(Sridhar & Sridhar, 2006).

URL:http://books.google.ca/books?hl=en&lr=&id=w4zJOECe_tAC&oi=fnd&pg=P

A63&dq=Acceptance+of+the+internet+as+a+mode+of+marketing+has+been+slower+in

+India+due+to+lack+of+accessibility+and+infrastructure&ots=muugc93i1v&sig=hssVTP

RtXbGdjALpC_LaAxZUdkY"a+mode+of+marketing+has+been+slower+in+India+due+to

+lack+of+accessibility+and+infrastructure&ots=muugc93i1v&sig=hssVTPRtXbGdjALpC_

LaAxZUdkY

Online spending is still a small percentage of the overall ad expenditures,

and not all advertisers in India have adopted the medium in their marketing plans

yet. Currently in India, there are two sectors that have opened their arms for

online advertising. These are financial services (which use the internet to

generate leads and business) and internet companies (that use the internet to

generate registrations; job portals, for example, use the net advertising for getting

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resumes). URL: http://www.financialexpress.com/news/knocking-on-the-net/184718/2

As of 2005, many people in India still hesitated to do any transactions via

Internet (Indax, 2005). In India, Internet Marketing is still not regarded as a

reliable and a safe means for undergoing any transactions.

URL:www.indax.com/internet.html.

This perspective is changing as the government ensures greater access to

the Internet. In the 1980s, the internet was only available for large corporations

and government in India. Today, the individual use of the internet is still in its

early years, thus marketing in this venue has yet to gain its popularity in India

(OMLogic News, Online Marketing, October 2008; The Times of India, 2006;

Press, Foster, Wolcott, & McHenry, 2002). New entrants to the on-line marketing

will be challenged by keeping pace with the rapidly changing landscape of online

advertising, which can be daunting for the marketing personal in India. Effective

website marketing is the keyword for generating revenue from online business

(Mansoft Creations, 2001). URL:http://www.mansoftcreations.com/webmarket.html.

Chowdhury (2007) predicted huge growth in the usage of the internet in

India. This change is slowly happening. The attitude and approach towards the

internet industry hasn’t changed significantly. The unfamiliarity with the new

medium, lack of understanding of its reach, fear of venturing into a new area that

hasn’t been tapped before are a few reasons that have made it difficult for

marketing executives in India to use internet to get clients (Chowdhury). Change

is expected to come slowly according to Dr. Ray, President of the Internet and

Mobile Association of India (IAMAI). Chowdhury quoted him as saying “The

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market at large is still not ready to see the value proposition of online

advertisements” (Para 10).The large audience is getting ready for this

technology. BrainPulse Technologies, 2006 found that the latest statistics

revealed that 400 million people access Internet regularly in India and that is a

jump of 700% in last six years. Even though this is a small—3.6% of the

population, it is a large market. Now you can imagine the potential scope of

Internet marketing in India! (BrainPulse Technologies, 2006).

URL:http://www.brainpulse.com/articles/internet-marketing/scope-of-internet-marketing-

in-india.html

The internet offers huge possibilities when it becomes part of the middle

class society in India. URL:http://www.zealousweb.net /internet-marketing.htm.

In order to make recommendations regarding the use of internet marketing in

India, I conducted a literature review on the best practices of the online

advertising and explored various opportunities that this vast industry has to offer

(Chowdhury, 2007). I also explored the challenges facing internet users in India.

The two clients desire to capture a new audience for their products—the internet

users.

Access to internet in India has been problematic but this is changing

according to Indax (2005). Five years ago, there was limited Internet access in a

few major cities. The access was primarily limited to the government. VSNL

(Videsh Sanchar Nigam Limited), the agency responsible for Internet activities,

and the DOT (Department of Telecommunications) provided an agonizingly

erratic connectivity, with miserly bandwidth and far too few phone lines.

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Connection rates ran as low as five percent (for every 20 dialups you might get

connected once) and users were frequently cut off. Domestic users paid about

two dollars per hour, and leased lines. Few companies could afford it, as the

costs ranged over $2000 per month for a 64 Kbps line. By the end of 1998, after

three years of government monopoly, there were barely 150,000 Internet

connections in India. URL: www.indax.com/internet.html, 2005.

Today the government monopoly is largely over. This is good news for

those wanting access to the internet. Dozens of small to large Internet Service

Providers have set up shop, triggering both a price war and an improvement of

service (Indax, 2005). Internet users are now estimated at over two million, with

the growth predicted to reach 50 million in the next five years (Indax). Small

Internet kiosks have been set up in small towns, and the governments, both

State and Central are pushing for growth in the Internet sector (Indax). Internet is

the new buzzword. The many small tutorial colleges that pushed computer

software courses of variable quality are now in a hard sell scramble to push Net

related content (Indax). Working in the Internet industry represents the new

wealth frontier for the middle classes, a good salary and a clean job, and for a

few, the chance to go abroad (Indax). URL: http://www.indax.com/internet.html.

Many entrepreneurs have been quick to realize Net can reach the large

and wealthy Indian middle class (Anil, 2008). There has been a great increase in

Indian content on the Internet (Anil, 2008).

URL:http://webanalyticsindia.net/blog/2008/04/current-internet-status-and-web-analytics-

oppurtunities-in-india/

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In India, business to business (B2B) transactions are on the increase

according to Indax (2005), though there is no accurate estimate of the current or

projected volumes. Indian businesses interested in marketing effectively to the

large internet market will be finding that the Net provides an efficient medium of

communications. Indax found that effective communication is a factor that has

been attributed to the retardation of trade within India in the past. Internet can be

very convenient . Email and web sites are available 24 hours a day. Indax found

that the Internet offers the ability to reach a client, respond to problems on a real

time basis, and transfer products instantly with the click of a mouse.

The demand and responding availability for efficient Internet infrastructure

is growing rapidly in India. Even the government, which has monopolized

infrastructure development until recently, has recognized it must not hold back

this development but the demand for internet access has not yet been met

efficiently. This represents an enormous barrier to business and societal

development. The access to and affordable usage of the internet is still

problematic (Indax, 2005).

India has opened up the internet industry to private entrants and promised

support the growth in this area (Indax, 2005). In practice, the vast bureaucracies

that implemented [theoretically] the government programs have moved sluggishly

and ineffectively. For instance, the private ISPs that were first allowed to operate

were initially required to acquire their bandwidth from VSNL, who wanted a

country wide monopoly on this lucrative sector (Indax). This conflict resulted in

new users having to sign up for increasingly limited bandwidth from VSNL. This

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restriction is lifting as now the ISPs have been allowed to establish their own

gateways but the effect has not yet been felt extensively (Indax). The DOT,

responsible for providing phone lines to ISPs lagged way behind and the new

providers are often left with far too few lines to service the increased

demand. Lease lines are reduced, though still very expensive, approximately

$1000 per month for a 64 Kpbs line (Indax). Wireless may be a way to go.

URL:http://www.indax.com/internet.html

Some cities in India have developed more efficiently than others (Indax,

2005). Indax found that Bangalore and Madras currently offer better bandwidth

than other cities. Of course, this is relative to the poor service people were

forced to put up with in the past. Hyderabad, where the INDAX offices are

located, is trying to promote a cyber savvy image, but the reality is still very

poor. It is a challenge to justify a lease line. Currently, businesses rely on a dial

up connection which works well in the early hours of the morning or late at night

only (Indax). It is often not possible to get a productive connection for hours at a

time during the day, even though we use four or more ISPs (Indax). The poor

connectivity still costs Indians hundreds of dollars a month (Indax). This lack of

infrastructure is causing acute frustration, not to mention the loss of productivity

suffered. The two companies for which this project has been undertaken have

experienced this lack of infrastructure and if they are to be considered typical

entrepreneurs then their losses can be multiplied by that of millions of other small

business across the country, amounting to billions of dollars of lost potential

business each year.

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Can India support the huge amount of internet usage growth expected to

occur over the next five years when the infrastructure of both the Internet and the

telephone network is already far behind current demand? In developed countries,

telephone networks had basically reached saturation before the Internet

arrived. The problem was primarily to provide the increased bandwidth and line

usage the Net demands. In India, the telephone network is antiquated,

overextended and only reaches a fraction of the population still interested in

getting a phone. Internet demand is straining the telephone system further

(Indax, 2005). URL:http://www.indax.com/internet.html

Private ISPs have entered the arena, and though they were initially

stymied by both the uncooperative government agencies and by lack of existing

infrastructure, there is some promise here (Indax, 2005). There are also

experiments with wireless and cable connections, but even with these ventures,

an antiquated infrastructure and government obstructionism were problems.

Businesses are relying more and more on aspects of the Internet. Email, for

instance, is a huge asset to companies. More and more companies are entering

into web related business activities, like web site creation, software development,

and various service oriented businesses utilize the Net, like medical transcription

or data processing for overseas companies. The more Indian companies rely on

the internet, the more vulnerable they become to the infrastructure problems

(Indax).

Indax (2005) expressed their belief, that in the future those who can pay

for the internet will have adequate access to the global community. As in

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developed countries, those who can't pay for it, or lack the skills to use it, will be

left behind. Unfortunately in India, this disadvantaged group will be the majority

of the population well into the current century (Indax). Until the country can

mobilize the resources, the education, and the infrastructure to provide a much

larger section of its population both the means and the reason to access the

Internet, India will not truly join the global community. This statement may be a

discouragement for entrepreneurs looking at India for potential expansion. The

size of India as a country must be remembered. But if the internet is limited to

those in the middle to higher incomes, this will amount to a significant market.

URL: http://www.indax.com/internet.html

It's reboot time for Indian advertising with predictions that the online

segment is likely to cross the 100 million dollar mark by 2010 (Sen, 2005). India's

advertising industry generates about 2.2 billion dollars annually. Currently, Online

advertising comprises less than one per cent of the pie (Chowdhury, 2007).

URL:http://epaper.timesofindia.com/Repository/ml.asp?Ref=Q0FQLzIwMDcvMDEvMD

MjQXIwNDUwMA==&Mode=HTML&Locale=english-skin-custom. The total spending

for 2004-2005 was about 18 million dollars, but the Indian Online Association

(IOA), predicts this will touch 34 million dollars in the next financial year and will

cross 57 million in 2006-2007. Industry watchers feel it is going to be boom time

soon (Sen).

The Internet usage and market in India are growing fast. The market is a

complex one, with international companies having their presence known. To gain

a following of online users, the marketing strategy must be savvy. All companies

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are competing against tens of thousands of Web sites (Cusumano & Yoffie,

1998). To be successful , they will need more than a buzz to create a significant

presence. Word-of-mouth is no longer sufficient to get the word out (Cusumano &

Yoffie). However, traditional advertising still plays a large role. Television, radio

and print have to be used to complement the web site. Strong brands have to be

seen everywhere, with their Web site featured on television advertisements, radio

and stationery. The best approach is to integrate all modes of brand

communication with a sense of purpose to create a strong brand (Cusumano &

Yoffie).

Year 2006-07 witnessed a revalidation of the Indian Information

Technology – Business Process Outsourcing (IT-BPO) growth story, driven by a

maturing appreciation of India’s role and growing importance in global services

trade. Industry performance was marked by sustained double-digit revenue

growth, steady expansion into newer service-lines and increased geographic

penetration. This was accompanied by an unprecedented rise in investments by

Multi-national Corporations (MNCs), in spite of lingering concerns about gaps in

talent and infrastructure impacting India’s cost competitiveness. The sector looks

set to close the year 2006-07 at record levels, with the revenue aggregate

growing by nearly ten times over the past ten years (Nasscom, 2007).

URL: http://74.125.113.132/search?q=cache:2gXtY-

iU63gJ:www.nasscom.in/upload/5216/Indian_IT_Industry_Factsheet_Feb2007.pdf+Year

+2006-

07+witnessed+a+revalidation+of+the+Indian+Information+Technology+%E2%80%93+B

26

usiness+Process+Outsourcing+(IT-BPO)+growth+story&hl=en&ct=clnk&cd=1&gl=ca

While India is uniquely advantaged to best address these opportunities,

they are not lost to others. Timely, coherent, and continued action is needed to

ensure that India makes the most of these opportunities and maintains its lead.

The landscape in India is changing, as the target audience is transforming its

behaviour. “The online advertising market is growing by leaps and bounds"

(Eluvangal, 2008). Still to be determined is what will work for the Indian based

organization. Current market statistics are just an indication of the shape of

things to come. According to the Internet and Mobile Association of India

(IAMAI), between 2003-04 and 2005-06, online marketing has grown by 286%—

from Rs 42 crore to Rs 162 crore (2004-05: Rs 107 crore). This has kept pace

with the rise in individuals using the internet, which stands at 40 million (Indian

Express, 2006). Specialist online agencies like Mediaturf, Quasar, Webchutney

Studio, eMaven Solutions, BC Webwise, Indiads, Interactive Aveneus,

Communicate, Pinstorm, Mediacontacts, Media2Win, WebShastra and Module

One have already secured their positions in the advertising market. Currently

they are slugging it out against specialist divisions of traditional full-service

agencies, such as, GroupM Interactions and Tribal DDB, among others.

27

The table gives the Indian internet usage and population statistics

(Internet world stats, 2008).

Table1. Indian Internet Usage and Population Statistics

YEAR Users Population % Pen. Usage Source

1998 1,400,000 1,094,870,677 0.1 % ITU

1999 2,800,000 1,094,870,677 0.3 % ITU

2000 5,500,000 1,094,870,677 0.5 % ITU

2001 7,000,000 1,094,870,677 0.7 % ITU

2002 16,500,000 1,094,870,677 1.6 % ITU

2003 22,500,000 1,094,870,677 2.1 % ITU

2004 39,200,000 1,094,870,677 3.6 % C.I. Almanac

2005 50,600,000 1,112,225,812 4.5 % C.I. Almanac

2006 40,000,000 1,112,225,812 3.6 % IAMAI

2007 42,000,000 1,129,667,528 3.7 % IWS

URL:http://www.internetworldstats.com/asia/in.htm

This table gives the number of users and percentage of internet usage in

India from the year 1998 till 2007. As we can see from the table in the years from

1998 to 2004, the population remained the same but the internet users increased

in number. In the year 2006, the internet usage percentage decreased but again

increased in the year 2007.

28

Figure1. World Internet Users and Population Statistics


This figure shows the internet users by world regions. As we can see Asia

has the highest number of users when compared to other regions of the world.

Australia and the Middle East region have the lowest number of internet users.

The figure shows the internet penetration in Asia and rest of the world. As

the information from Internet World Stats (2008) suggests, the percentage of

internet penetration is slower in Asia as compared to the rest of the world.

29

Figure2. Internet penetration in Asia


Table2. World Internet Usage and Population Statistics

WORLD INTERNET USAGE AND POPULATION STATISTICS

World Regions

Population Population Internet Usage,

% Population

Usage

Usage Growth

(2007 Est.) % of World Latest Data (Penetration) % of

World 2000-2007

Africa 933,448,292 14.20% 33,334,800 3.60% 3.00 638.4%

Asia 3,712,527,624 56.50% 398,709,065 10.70% 35.80 248.8%

Europe 809,624,686 12.30% 314,792,225 38.90% 28.30 199.50%

Middle East 193,452,727 2.90% 19,424,700 10.00% 1.70 491.40%

North America 334,538,018 5.10% 233,188,086 69.70% 20.90 115.70%

30

Latin

America/Carib

bean 556,606,627 8.50% 96,386,009 17.30% 8.70 433.40%

Oceania /

Australia 34,468,443 0.50% 18,439,541 53.50% 1.70 142.00%

WORLD TOTAL 6,574,666,417 100.00%

1,114,27442

6 16.90% 100. 208.70%

NOTES: (1) Internet Usage and World Population Statistics as on March. 10, 2007.

Source: Internet World Stats

This table shows the world internet usage and population statistics. Asia

has the highest population number and internet usage when compared to the

other world regions.

Figure3. Asia Internet Users


31

This is a pie diagram of World Internet users. Asia makes up close to 40%

of the entire world use of the internet.

Most of the urban Indian users are fairly experienced in using internet. In

fact, almost two out of three users have more than three years of experience in

using the net. Further, almost two-third of the respondents login to the Internet

every day. Twenty five percent access Internet thrice a week and seventeen

percent login at least once a week.

Figure4. Internet usage rate

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

Rate ofUsage

Use EverydayThrice a weekOnce a week

URL: http://www.ecommerce-guide.com/news/research/print.php/3527761

Current trends found that 40 % of all urban Internet users (respondents)

buy online, while 42 % of the sales originate through just five percent of

consumers. This table shows the percentage of online and offline buyers.

32

Figure5. Percentage of online buyers

0%

10%

20%

30%

40%

50%

60%

70%

Online Buyers Offline Buyers

Indian buyers spend 5,000 rupees or more per month on the net; the

Canadian equivalent is one hundred and twenty dollars. It is interesting to note

that two out of every three heavy spenders are also 'netholics,' those who are on

the net for more than three hours per day (Comiskey, 2005). Of all those who buy

online, only 25 % are spending more than 1,000 rupees per month while the

remaining 75 % bill less than 1,000 rupees per month. Depending on the product

type, nine percent to 25 % are buying online, whereas 33 to 47 % are searching

the net for product information.


What's drawing many companies to the internet is that the effect of

internet advertising which have become more measurable states Gupta,

executive vice-president and director, Connecturf India. The Indian online

advertising and marketing sector is growing at a fast pace. Almost 60-70% of

online advertising today utilizes the ability to measure visitors’ reactions. Around

Rs 150-200 crore in the financial year 2007, online ad expenditures targeting

33

Indians are expected to have jumped to around Rs 500 crore in FY 2008,

according to industry estimates (Eluvangal, 2008). “In 2008-09, it is expected to

hit Rs 900 crore,” states Murthy. Search engine marketing (pay-per-click) is

purely based on performance, and today it alone contributes to around 30% of

total online advertising expenditures. A study by IAMAI-Pinstorm puts the size of

Search Engine Marketing in India at Rs 236 crore. This could yield high ROI.

Brands are trying to engage with customers online through search marketing,

viral marketing, display advertisement, mailers, micro sites, communities and

blogs. Search marketing clearly has become the hot favourite.

URL: http://www.dare.co.in/strategy/marketing-branding/the-online-advertising-food-

chain.htm

Brynjolfsson and Smith (2000) called Internet “The Great Equalizer”

because the technological capabilities of the medium reduce buyer search

and switching costs and eliminate spatial competitive advantages that retailers

would enjoy in a physical marketplace. The ability to accumulate a large

customer base and create true loyalty among users becomes a vital asset for

online firms in India and elsewhere. Many companies have benefited in some

way by the explosive popularity of the Web, but contemporary Internet

companies are challenged to muster the kind of trust and loyalty that brands like

Coca-Cola have (Borovikova, NA). With a million channels just a mouse

click away, little keeps a person from hopping from Yahoo! to Netscape if

he/she is not satisfied.

URL:http://www.kse.org.ua/people/alumny/2000/Borovikova%20Volha%20SINC%20%2

34

020%2009%2002.pdf

Sen (2005) felt that traditional ads are more indirect and assumption-

based. In case of online communication and marketing, it’s two-way

communication. Sandeep, Group Head, Account Management of online ad

agency Webchutney said, “ One can exactly track to how many people clicked on

a particular ad, how many people found it interesting and how many of them went

a step further” (Para. 3). The immediacy of this client or potential client

information can be extremely useful in making the online advertisements more

effective in their call for action. Information that can be captured includes the

average age group of Internet users who clicked on a particular online ad, the

user’s click for further information, and if so, what product. The appeal of this is

that the material on site can be adapted to the clients’ demographics. This is

done through the site collecting data from the feedback forms the internet user

fills out, in a particular ad (Chowdhury, 2007).

URL:http://www.monstersandcritics.com/tech/news/article_1031212.php/Internet_adverti

sing_in_India_boots_for_boom_time.

Internet advertising has a global audience, costing far less money than an

international TV ad (Chowdhury, 2007). Internet population in India is expected

to grow to close to 100 million in the next 1- 2 years. A large number of these

citizens are within 20-40 age groups (Chowdhury). Again, one has a plethora of

options to create to attract this audience base from building websites, displaying

ads which would further include banners, media planning and buying, designing

email marketing, optimizing search engine, and search marketing.

35

Chowdhury (2007) quoted Sandeep as saying,

Online ads are more direct and crisp (content wise and concept wise). For instance, a Google ad word count has a maximum of 25-30 characters. The design too isn’t very flashy. The logic behind the execution of an online ad is simple. What might look dull as a TV ad might just work well in the format of an online ad. URL:http://epaper.timesofindia.com/Repository/ml.asp?Ref=Q0FQLzIwMDcvMDEvMDMjQXIwNDUwMA==&Mode=HTML&Locale=english-skin-custom

Hence, the first step towards venturing online is acquiring the required

skills. Two such skills were identified by Chowdhury (2007) as knowledge and

planning.

1. Thorough knowledge of the Internet is a must. Niche skills like

creativity, inclination towards search marketing, technological know how, and

understanding of consumer behaviour are also needed.

2. Planning is extremely important. Questions like ‘what is it that I want

to achieve out of a particular campaign?’, ‘how can I cater to a cross section of

my target group?’ and ‘how can I tactfully calculate the ROI?’ will arise. The

number of questions while conceptualizing an online advertisement is multifold.

"Internet is increasingly a part of the media mix for advertisers as they

realize its high potential in reach and penetration," said C.V.S. Sharma, chief of

Tribal DDB India, which is linked with Tribal DDB Worldwide, a global digital

marketing agency. The growth over the past three to four years has been good.

Tushar Vyas of Group M, one of India's top media investment enterprises

attached to global advertising agency Walter Thomson Associates (WTA), pegs it

36

at 50 % a year for at least three years in a row. The Internet has great cost

advantage as well. "The cost for reaching 1,000 is very effective when compared

to other media” says Tushar Vyas (Sen, 2005).

URL:http://www.monstersandcritics.com/tech/news/printer_1031212.php

The advantage of internet advertisement is that you can monitor the

response to your advertisements and have a choice to alter the campaigns you

are running and maintain a complete control on your advertising campaigns as

well as budgets (Dimakh, 2008). The number of net surfers in India is increasing

at a rapid rate and studies have shown that people are spending more and more

time on the web (Dimakh). Buying products online is convenient, hassle-free and

easy. Online market places allow buyers to see the best deals available without

moving from their desks and choose the products they want which they could not

find at the local supermarket. For a company putting advertisements online, it

gives a benefit of being present right next to your competition when people are

looking for products or services.

In a market where customers are loyal, a firm’s current market share is an

important determinant of future profitability. Internet users choose which website

to visit as they make all other choices; given all the information they choose the

best alternative. The significance of consumer loyalty is often stressed in the

marketing research. An important factor in determining the profit of any company

is its ability to increase market share. Some of the additional features of web

portal market make it even more interesting to investigate:

• Easily imitated technology

37

• No price, competition in quality

• Low costs of switching

• Possibili ty to combine services from different providers at little additional

costs

Summary

India is a fast growing market and media buying is becoming a very

important decision for all online spenders. The biggest advantage of online

advertisement is it helps to track your user online and understand online

consumer behaviour. URL:http://www.dimakhconsultants.com/internet-marketing-in-

india.htm

The number of net surfers in India is increasing at a rapid rate and studies

have shown that people are spending more and more time on the web

URL: http://www.internetworldstats.com/usage/use009.htm. Buying products online is

convenient, hassle-free and easy. Online market places allow buyers to see the

best deals available without moving from their desks and choose the products

they want which they could not find at the local supermarket.

This research project is designed both to gather the relevant information

concerning adopting the internet for marketing for the two selected clients and to

develop best practices for its effective implementation.

Web Portal Industry

‘Portal’ is a term, generally synonymous with gateway, for a World

Wide Web site that either proposes to be a major starting site for users when

they get connected to the Web or that users tend to visit as an anchor site. This

38

can be considered as a starting point of the web portal industry. Yahoo! Along

with Yahoo, other Internet search engines and directories, like Altavista,

Excite, Open Text, Magellan, Infoseek, and Lycos became popular. All of

these sites started off as merely search engines or directories, but when

they began experiencing page views numbering in the millions each day, most

realized they could use their popularity by offering more features that would keep

people at their sites once the users finished their initial search (Nowlin & Bliss,

2003).

URL:http://searchciomidmarket.techtarget.com/sDefinition/0,,sid183_gci212810,00.html

Today the web portal industry has several hundreds of portals. According

to Borovikova, only 10 to 15 can be considered to be main portals; others are

fringe. Portals offer a wide range of customization options and functionality

including: Internet search and navigation; email; homestead; customized

news, weather, sports, and horoscopes; planners, calendars, and contact

managers; bookmark managers; real-time chat; message boards; original

content on every imaginable topic; shopping; free home pages; and much

more. Increasingly, major portals developed a technology allowing that vital

content such as news, stock prices, and messages can be accessed with

wireless devices and phones (Borovikova, N.A.)

URL:

http://www.kse.org.ua/people/alumny/2000/Borovikova%20Volha%20SINC%20%2020%

2009%2002.pdf

In 2000, Gallaugher and Downing analyzed the determinants of

39

leadership on the web portal market. First, they gave theoretical and practical

foundation along with the classification for factors that are considered important

in the web portal industry analysis. All the factors were included in their designed

model, portal combat.

Their portal combat model included: market penetration—market reach

was the dependent variable, the independent variables were age; affect, brand of

a service; features that create switching costs; features that enhance utility and

the features that establish virtual communities. Their analysis found that the four

biggest portals were: Yahoo!, Lycos, Excite and Info seek. Borovikova found that

by increasing the quality of search the business can also increase the loyalty of

their customers and can increase their market share and ability to generate

revenue (Borovikova, N.A.). Their research focused on certain aspects of

consumer choice and specific features that led to changes in consumer

preferences. Since competition on the online market is in quality, rather than in

prices, maintaining a strong position and gaining customer loyalty is effective and

efficient.

Borovikova (N.A.) found that portals contained complex offerings of more

than one service. He also recommended the use of portals to facilitate the

consumers’ ability to make their decisions based on more than one factor. In

short, portals are a good experience, and users continuously adapt their

behaviour based on previous visits to portals. Borovikova, (N.A.) felt it was

beneficial to create a comprehensive model for portal design that allows for the

analysis of all services featured by the portals, identifies the main factors that

40

affects consumers’ behaviour and influences their decision to visit the portal

again.

Online Consumer Behaviour and Market Shares

There is a small but rapidly growing literature on consumer behaviour on

the Internet (Borovikova, NA). A few authors have looked at the questions related

to loyalty, switching costs and some of the aspects of leadership on online

markets. One of the first attempts to understand trends on online market was

made by IT professionals in the late 1990’s (Borovikova). In 1999 International

Data Corporation and Relevant Knowledge conducted research and found out

that data suggests that users are loyal to no one web portal (Borovikova).

According to Borovikova, most Internet users rely on two or three different portals

and have no portal loyalty. Yahoo has the most loyal user base, according to IDC

and Relevant Knowledge. Their study found that the "loyal" 36 % of Yahoo users

hang around on Yahoo-owned sites for 161 minutes a month, compared with the

"discrete" remainder, who stick around for 67 minutes (Borovikova). Spring

(1999) analyzes reasons for this and suggests that not every portal realized the

importance of building “closer and tighter relationships with consumers”.

Internet Challenges and Opportunities

Although it may sound easy, marketing on Internet is challenging

(Omniture, 2005). Online marketing creates a wealth of opportunities for above-

average growth and success for firms willing to take advantage of it (Schultz,

2009). One of the best opportunities is the potential of combining direct response

41

marketing and brand marketing into one integrated experience. Online, branding

experience (what one wants customers to think about the product) and one’s

direct-marketing tactics (what one wants customers to do as a result of

marketing) are converging. The search landscape is incredibly dynamic and

marketing managers are faced with a myriad of business and technical

challenges:

o How to profit from paid and natural search traffic.

o How to measure visitor behaviour beyond the click.

o How to plug leaks in the conversion funnel.

o How to adjust for multisession activity, latent response, and

keyword stacking.

o How to identify possible click fraud. (In case of pay-per-click

schemes)

The term online marketing is one that is simply used to define marketing

on the internet. There are other related terms such as e-marketing and e-

commerce that are often used as synonyms, too. Online marketing is a very

dynamic, fast changing field, and there are many advantages and challenges to

marketing on the internet (Adams, 200). It is possible to start online marketing

with search engine advertisements and grow from there to other concepts such

as funnel construction. However, it is important to note that there is a lot of

competition on the internet already and you will have to continue to be up-to-date

with your information, services and products. Overall online marketing is a great

opportunity for most businesses.

42

One of the great advantages of online marketing involves search engines.

Only with search engine marketing can you promote your product or service

directly to people who are actively looking for it! Another advantage of online

marketing is that it allows you to easily track advertising, promotion, and sales.

This means several things. First of all, you can easily monitor your advertising

and focus your efforts on the most effective. Secondly, you can easily identify

and target specific markets individually, resulting in more effective marketing

(Adams, 2007).

Another advantage to companies is that they are capable of offering

bonus offers for purchases made online as they spend less overall on their

marketing. They also use e-newsletters to get new customers and to keep old

customers informed and updated on new products and thereby retain their

customer base. Another important aspect of online marketing is ensuring that the

customer is always satisfied. This can be a great disadvantage in terms of online

marketing as there is no person to person interaction and this can be a serious

disadvantage. It is often difficult to facilitate excellent customer communication

via the internet, so often you will need to utilize offline methods to achieve

greater customer satisfaction, such as follow up phone call (Adams, 2007). It is

crucial to keep customers coming back.

Although the marketing basics remain important, the internet also offers

some unique advantages and challenges. First of all, advertisers can utilize its

interactive nature to build top-of-mind awareness among customers (Kottolli,

2005). Computer maker Sun, for example, utilizes the business websites to

43

communicate with corporate buyers. The Internet possesses the feature of

relevance in so far that it is more efficient than other channels in reaching people

who are using their computers for business needs. Websites are able to combine

sponsorships with editorials, making use of their relationships to link users and

their needs with the branding goals of advertiser’s (Kottolli). The Internet can also

be used to increase brand awareness all over the world (Palumbo & Herbig,

1998).

To become accomplished in internet advertising entails acquiring a new

set of skills (Ghosh, 1998). The web has to be handled differently to reach the

consumer. The attention span of the target audience, the types of display modes

available on the web and its two-way interactivity distinguish it from other ad

media. It’s not that conventional agencies can’t create online advertising; it just

works better when specialized agencies, who understand the workings of the net,

develop solutions. Online and offline messaging have to be different, even if the

basic idea of the promotion is the same. In the case of MakeMyTrip.com, for

example, the idea is lowest airfares but the online and offline promotion are

completely different.

URL:

http://books.google.ca/books?hl=en&lr=&id=jqWuD7dF3GcC&oi=fnd&pg=PA101&dq=To

+become+accomplished+in+internet+advertising+entails+acquiring+a+new+set+of+skill

s&ots=IeM0DTx350&sig=Ak-iTtGBzSXGZeSr4pZ-15mBJ44

In short, Internet marketing can be incredibly lucrative, but it is not easy.

To maximize success, one must constantly manage Internet marketing with a

44

focus on retaining and attracting customers. To become accomplished in internet

advertising entails acquiring a new set of skills (Ghosh, 1998). The web has to be

handled differently to reach the consumer. According to Omniture, the following

questions are critical:

o How does one know if SEM (Search Engine Maximization)

campaigns are working and when they are not?

o How does one seamlessly connect clicks with conversions and

o ROI (Return on Investment)?

URL:http://assets.omniture.com/en/downloads/guides/06_SuccessKit.pdf

Online Advertising Revenue Model

Specific revenue models for online advertising include the following:

banner advertising such as x amount per 1,000 banner views; high fees from

advertisers or partner retailers who are "featured" on the main start page; fee-

based premium services; direct marketing campaigns; and keyword-based

advertising on search engines. Customers have always been the goal of the

“portal wars,” yet the main question remains how to acquire customers when

technology and business model can be easily imitated. Gallaugher and Downing

(2002) proposed to focus on four major determinants of market leadership on the

Internet market. These include first-mover advantage, brand effect, stickiness

associated with switching costs, and virtual communities. (Dess, Lumpkin &

Peridis, 2006)

Leveraging the Features of the Internet

Consumers looking for product information log onto the internet for one of

45

two reasons—to get practical information such as the product detail or to shop

(Griffith, 1999). Almost 80 % of the people logging on for information to a site

said they would like to buy the products in future. Thus web presence creates a

virtual sales channel.

URL:http://www.strategy-business.com/press/16635507/16419

The need to sell in cyberspace has challenged many industries. Some

manufacturers have no experience in selling directly to customers online but see

one-on-one relationships as simply invaluable. High tech services companies can

secure future sales by using online presence as means to communicate with

customers. Firms can send targeted message to their customers online. Just

providing exhaustive information about their products can help future sales of

capital goods. Xilinx, for example, provides extensive information on its

programmable chips on their website.

Griffith (1999) recommended leveraging existing expenditures on brand-

building as much as possible. A corporation's Web address should be listed on

television commercials, stationery, shopping bags and receipts. Sales people

should recommend the Web site to customers.

Branding in cyberspace offers advertisers unique opportunities allowing

them to strengthen brand affinity. However, the diverse Web programs and tools

have to be fully understood and used in consistency with the company’s branding

strategy to guarantee a successful branding result. In accordance with the

findings of Bruner (2000), the following features are most important for online

branding success: (1) search engines, (2) permission email, (3) personalization,

46

(4) word of mouth, and (5) affiliate networks.

A considerable number of online users primarily learn about new websites

via search engines like Google and Yahoo. Though often neglected by

marketers, appearing among the first results on Web search engines is a key to

success by positively influencing a brand’s awareness among customers. Kottolli

(2005) found a problem facing internet marketers which was a severe disconnect

between how customers find new web sites and where companies are focusing

their branding investments. Search engines are consumers’ top choices in

discovering new websites, followed by recommendations from friends. Marketers

were observed to spend most of their budget on banner, newspaper, television

and radio ads versus spending the money to be represented in the search

engines the consumers are using. Search engine maximization is more

responsive to the consumers’ habits. This reinforces the need for online

marketers to know their consumers including their consumers’ online habits.

Strongly correlated to the users’ online experience is the personalization

of a company ’s web presence. Allowing customers to interact with a firm, for

example, by tracking the shipment of an online order at FedEx, will increase

customer satisfaction and consequently improve brand loyalty.

The companies for which I will be doing the on-line marketing plan are the

first movers in their industry to go online in India. The marketing plan will be

developed to capture the first mover advantages. First-mover advantage allows a

firm to capture market share, establish industry standards and gain reputation.

The first mover is the first company to move into a market. Yahoo!, being a first-

47

mover, now has the strongest position on the portal market. However, the

pioneering, first moving firm faces some risk in developing completely new

technology and creating consumer interest. The important feature of the web

portal market is that any innovation introduced by a market agent can be

easily implemented by competitors. This reduces the advantage of being the

first-mover. The first mover takes the risk and ventures where others have yet to

go, but this move is often short lived before the competetion copies the first-

mover and reduces their potential gains. The average time it takes followers to

copy the implementation is less than 2.5 months (Gallaugher and Downing,

2002).

URL:http://www.kse.org.ua/people/alumny/2000/Borovikova%20Volha%20SINC%20%2

020%2009%2002.pdf

Gallaugher and Downing (2002) insisted that companies in information-

technology industries may be particularly vulnerable to investment asymmetries

between first and subsequent movers because the first mover may spend more

on research and design than later movers. The existence of brand effect or brand

loyalty allows online firms to earn above normal return by reducing the cost of

attracting visitors. If true loyalty exists in the Internet market, it will be hard for

portals to acquire customers from competitors, thus limiting potential for growth in

the customer base to new coming users (Borovikova, N.A.)

The switching cost refers to the cost for the customer to switch the

company from whom they get the product. A user might be reluctant to switch to

another portal because he/she has to learn how to navigate this new site. This

48

would be referred to as a switching cost. By creating switching cost a company

endeavours to ensure loyalty (Borovikova, N.A.). It will cost the customer to

switch to a new supplier. A firm may exploit low switching costs and convince the

competitor’s customers that it is worth their while to switch to them. In this

manner a firm can get higher market share (Borovikova). In the internet setting,

where competition is greatly influenced by the quality of the web design, the

problem of system design becomes complex.

The design of the user interface typically has a significant impact on the

performance of the system. The simpler the design, the quicker the system will

respond, but the customers also want all the information they need to be

convenient to locate. These two aims are often in conflict. Users of a system

learn how to use the system over time. Once customers have mastered the

system and know exactly how to get the information they want, they become

locked in. Good usability helps to create lock-in to the portal for a customer.

While monetary transaction costs are not high (or even do not exist) on the

Internet, learning costs are incurred at every switch between portals

(Borovikova). Closely related to this is the factor of virtual communities

associated with some services provided by Internet portals, such as e-mail,

chat, games, and homestead. By switching portals, users may potentially lose

contact with people they have come to view as part of their community. People

will have to put a lot of effort into communicating with those in the community that

they are living in and ensuring that they have the new address. Most people have

experienced this when they get a new computer and their email addresses are

49

not transferred in, or they get a new cell phone but cannot transfer their contacts

into the new system. The community locks people into the product/service. They

may lose friends, chat and game partners made in this particular community.

Successful Online Branding

To create branding, advertisers can choose between a large number of

different media channels, including newspaper and magazine advertisements,

direct mail, television and radio advertisements. Some years ago, the

introduction of the Internet promised the beginning of a new branding area.

These online branding efforts often failed (Kottolli, 2005). Consequent ly, many

companies disdained the Internet and regarded it as a risky choice to promote a

brand. The understanding of how to make the internet profitable puzzled people

for some years (Kottolli). With the continued growing presence of the Internet,

however, marketers became more interested in the internet as a marketing

media once again. The question was: does it still make sense to use the Internet

as an alternative to traditional channels? Is it possible to successfully promote a

company ’s brand in the online space at all? The answer appears to be yes.

URL:http://arunkottolli.blogspot.com/2005/06/successful-online-branding.html

Branding, constituting one specific part of e-marketing, can be understood

as the inspiration of people “to think or feel a certain way about a product in the

hopes of inducing or increasing product purchase and loyalty” (Kottolli, 2005,

para. 15). In cyberspace, marketers face new and different challenges and

opportunities. This is a given; however, the rules of the Old World are still true

and should not be neglected. Spending a lot of money alone is no guarantee for

50

success. Rather, the development of a powerful brand requires analysis,

planning, execution, time, and money (Sharpe, 2000).

Fogg (1974) discussed the following key means of increasing market

shares:

1. Price—firms may set price below the market’s average price to take

customers away from their competitors.

2. New products—introducing innovations or significant modifications of

product. This is a first move in the competition between suppliers and may well

be responded to by the competitors copying the move or worst bettering the

move.

3. Service— improve the quality of services and support.

4. Strength— improve the quality of marketing including advertising and

sales promotion.

http://www.kse.org.ua/people/alumny/2000/Borovikova%20Volha%20SINC%20%2020%

2009%2002.pdf

For an online market with low or no monetary transaction costs, only the

last three factors can be considered as important part of their strategy to gain

market share. For all other markets, there will be tradeoffs between profit margin

and market share, as the marketing costs reduce the profit. Borovikova wrote

about the implications of market shares on the firms’ profit and welfare.

This relationship may be overridden if the percentage of market share becomes

significant as Szymanski, Bharadwaj and Varadarajan (1993) and Cook (1985)

found the market share and profitability are positively related. They examined the

51

factors that moderate the magnitude of this relationship. Most managers must

focus on building market share as the mean of increasing profits. This

relationship does not extend to the higher percentages of market share. Boulding

and Staelin (1990) have demonstrated that high market share may derive no

additional profit. Karnani (1982) developed a zero-sum game to calculate

equilibrium market shares. Schwalbach (1991) found that the optimal market

share was between 65 and 70 % on service and retail markets.

According to Borovikova (N.A.), game theorists have also incorporated the

phenomenon of switching costs in their analysis. According to Borovikova in the

presence of switching costs, consumers have a strong incentive to continue to

buy the same brand thereby increasing customer loyalty and ensuring repeat

business. This can eventually lead to an increase in the market share of the firm.

The following key branding principles are guidelines for brand managers

on how to build a robust brand on the Internet and thus how to be successful in

the online branding business (Siegmund, 2003).

Key Branding Principles are:

• Defining the Brand

• Branding on Internet

• Selecting the Brand Strategy Framework

• Developing Specific and Achievable Goals

• Operationalizing the Brand

• E-Mail Marketing for High Tech Companies

• Viral Marketing

52

• Monitoring the Brand’s Performance

• Caring for Customers

URL:

http://66.102.1.104/scholar?hl=en&lr=&q=cache:yXDN8fmokUUJ:www.globalbrands.org/

research/working/Online_Branding.pdf+Rather,+the+development+of+a+powerful+brand

+requires+analysis,+planning,+execution,+time,+and+money

Defining the Brand

The first crucial step to successful e-marketing is investing time

and energy in gaining a thorough understanding of your brand, including its

meanings to potential consumers, its relationship to competitors’ brands, and the

brand’s role in the market (Siegmund, 2003). Effective marketers bring these key

branding elements with them when they enter the online space.

URL:http://74.125.113.132/search?q=cache:mCFW7YZM4PUJ:www.globalbrands.org/a

cademic/working/Online_Branding.pdf+&hl=en&ct=clnk&cd=1&gl=ca

In advertising, differentiation became a golden rule to gain an advantage

in the growing competition for consumers’ attention on and preference for a

company ’s brand. Kottolli (2005) found that by offering a variety of different

features (e.g. online account servicing, interest based attractions designed for

children) and adding huge amount of creativity, the Internet inspired marketers

began to create new branding and advertising tools. Though some companies at

first questioned the relevance of brands in cyberspace, advertisers were soon

taught that the need for brands can be even higher in the online medium than it is

in traditional channels (Kottolli). Being confronted by similar products from many

53

often unknown providers, consumers relied on the strength of brands which

possessed a meaningful, clear and trusted set of values and attributes,

facilitating their online purchase choices (Reynolds 2000, Ward and Lee 2000).

URL:http://arunkottolli.blogspot.com/2005/06/successful-online-branding.html

Branding on Internet

While it is not easy or cheap, creating brands in cyberspace is important.

Companies will have to let go of some of the thinking that has been holding them

back. Senior managers must embrace the medium with gusto. They must realize

that interactivity on the Internet does not mean a fun game, but sell-through

marketing. They must become closely involved in all aspects of the company's

Web strategy.

In the early days of the World Wide Web, newcomers just elbowed their

way in. They did not have advertising budgets; many did not have budgets. They

survived on the buzz created first by Internet surfers, then by the media.

Businesses have discovered cyberspace. Technology giants Intel, Cisco,

Microsoft have spent millions on Internet—to create a strong brand name and

presence source. The cost of creating a Web brand is escalating quickly, ranging

from $1.5 million to $3 million (Griffith, 1999). Competing with an established

brand can push those figures into the stratosphere. Entrepreneurs may have to

spend big but also change their brand-building strategies. While spending big

amounts to create a strong brand name is feasible for established companies,

small firms or start-ups have to innovate to create their brand name and a strong

54

brand presence.

Selecting the Brand Strategy Framework

Depending on a company ’s products, brand managers can choose

between three basic frameworks. The first is a, conglomerate brand strategy in

which the company ’s brands stand on their own (for example, Procter &Gamble

with independent brands like Crest and Tide. The second is a, corporate brand

strategy in which there is a more dependent relationship between the company

and its brands (for example, car brand Renault and its models like Renault

Mégane and Renault Twingo. The third is a, master brand strategy in which there

is a close relationship as every brand name includes the corporate brand name

(for example, hotel chain Holiday Inn and its brand Holiday Inn Express).

Developing Specific and Achievable Goals

Different objectives demand different strategic approaches. Graham,

(2002) therefore, recommended distinguishing between specific branding goals.

The goals he identified were awareness and message association. Awareness is

the aspect which distinguishes the brand, product, or company from the

competitors. This requires effective online and offline advertising and public

relations. Message association is the ability to get customers to associate a

company ’s message with its products. Marketers have to guarantee “high

frequencies of simple, uncluttered ad units or sponsorships of content tied to a

brand's message” (Siegmund, 2003).

Operationalizing the Brand

The identification and formulation of the brand action plan is a necessary

55

step to ensure effective communication and delivery of the brand’s attributes.

This important part of the branding process should therefore not be overlooked. It

requires that all parts of the company coordinate their behaviours and act

consistently for achieving a consistent brand identity on the Web. The technology

for building a Web site is the easy part; it's the marketing strategy that makes

many companies stumble. All senior managers must be on board and intimately

involved in the Internet strategy (Griffith, 1999). The setup and running of the site

may be centralized, or even outsourced, but executives should know exactly

what the site is trying to do and how well it works from a practical standpoint. A

site with glitches should not be allowed, no matter how "cool" it is. The

establishment of performance and measurement systems, rewarding specific

brand behaviours, supports the successful accomplishment of the brand action

steps in each involved brand business area (Siegmund, 2003).

URL:

http://66.102.1.104/scholar?hl=en&lr=&q=cache:yXDN8fmokUUJ:www.globalbrands.org/

research/working/Online_Branding.pdf+Rather,+the+development+of+a+powerful+brand

+requires+analysis,+planning,+execution,+time,+and+money

Beyond advertisers’ disregard of basic marketing principles, many

companies’ internal organizational structure lacked the ability to properly address

online objectives (Kottolli, 2005). Online branding is complex, often involving a

number of different organizational parties and constituents “from the top of the

corporate structure to the individuals that are actually interacting with customers”

(Kottolli, 2005, para. 11). It is clear from Kottolli’s findings that the best practice

56

will be to ensure that the control, design upkeep, and communication is clearly

part of a cohesive organizational structure.

Kottolli (2005) found that the management of e-businesses is generally

shared by three departments: information technology, marketing, and

communications. These three parties often did not work well together and often

were not clear on who was accountable for what. Kottolli found that getting

organized remains a major problem, with companies struggling with the common

organizational phenomenon of, “everyone being in charge and no one being in

charge” (Kottolli, 2005, para.12). Resulting from this lack of consensus are

diverse problems, ranging from slowness in exploiting the online medium, due to

endless debates over the most appropriate e-branding business model to

companies confusing their users with hundreds of websites. The result was a

confusing message for the consumer and this severely affected the future of a

company ’s e-business (Kottolli). Being confronted with an impatient online

community, firms are advised to concentrate their efforts on an appropriate

organizational structure, if they plan to survive in cyberspace. The solution is to

be organized and to structure online business for fast appropriate, accurate, and

timely information.

E-Mail Marketing

There are strong points for and against E-Mail marketing. Marketers soon

learned that online customers became tired of ‘spam’ – marketing messages

bombarding their email boxes. Still, email as an online marketing tool can be very

effective in acquiring new customers and retaining existing users. Examples for

57

permission email are the daily or weekly corporate email newsletters (e.g.

McKinsey Newsletter) and customer relationship email (e.g. order confirmation

by Amazon.com).

E-Mail works great for niche services or new services that can be

marketed to the current customers. If the new services are an extension to the

existing services, then email marketing is a great way to generate customer

interest and create the right environment for the actual sales pitch. This is done

by implementing an email marketing campaign using a permission-based email

marketing service; sending an unsolicited e-mail is undesirable and is known to

antagonize customers and is therefore counterproductive (NetStride Internet

Solutions, 2004).

The best plan is to implement an email direct mail campaign to current

customers and to offer them a good deal on the new service. This is particularly

effective if the customer has been buying the new service from another supplier.

This upgrade will be beneficial to the current customers. The art will be in the

communication package of attractive and well-written emails that will explain the

benefits of the new service levels.

Best Practices for Email Marketing

1. Segment customers in the database so that it is easy to send out

customized emails that speak directly to the customer’s situation. That is, if they

are buying plain glass (service A) and wants them to also buy etched glass

(service B), send a different email than if they were buying service A and one

wants them to also buy service B.

58

2. Offer the current customers a special lower price on the new service,

which is valid with a year agreement. Upgrade to an etched glass. The discount

is based on the principle of lower cost of customer acquisition, and the savings is

passed on the customer. This builds a better relationship with the customer.

3. Think through the best and most beneficial upgrade/up sell path for each

current account type and group of customers. This upgrade path idea should be

considered carefully, for example, plain glass to etched glass.

4. Pilot test by sending out an email to only part of the segment of customers

(10%) and track results such as click through rates and how many actually buy

the service. Then modify the message if needed, and resend out to yet another

10% and measure the results with the revised message. This ensures the

message has been pretested and will result in customers’ purchases. Pick the

most effective email and send the rest of the segment. Repeat with each

segment.

5. Possibly send out more than one email. Start by sending out one email

which talks about one new/additional service. If there are multiple services, that

can be mentioned in a subsequent email after the initial pitch. Although there are

several new services/Products, the email is focused to motivate each customer

to upgrade one step up from where they are now. If one puts all the

services/products in one email, it will confuse and clutter up the message and fail

to win the customer over. Do not clutter these emails with too much information.

Viral Marketing

Viral marketing is the online notation for ‘word of mouth’. It can be a very

59

cost-efficient tool in acquiring new customers: satisfied users recommend a

website to their friends. Powerful advocacy marketing demands companies to

provide its customers with incentives to tell their friends about their good

experience (e.g. discounts for books at Amazon.com) and simple mechanisms.

With a high percentage of online users randomly surfing the Web, the

company ’s presence on many websites becomes critical in reaching potential

customers. So-called partner programs or affiliate networks, allowing cooperative

advertising and promotions, are marketing techniques that prove to be more

rewarding than conventional banner ad campaigns (Siegmund, 2003). The

consumers’ habits are critical for sponsorship on sites the consumers frequent

(Kottolli, 2005). Many firms neglected to use this powerful mechanism to reach a

considerate number of users. For online marketing to be effective the campaign

must reach the intended customer. The solution to this is unique to the

customers of the company and must be designed as such.

Monitoring the Brand’s Performance

With brands showing a dynamic nature, their online performance needs to

be monitored and measured on a regularly basis. This process reveals whether a

brand remains of relevance for the customer and informs marketers in time if

steps have to be taken to improve the brand’s performance. The monitoring part

of the branding process should not be neglected since it is important to track

progress, so you can justify efforts and expenses for future branding actions

(Siegmund, 2003).

60

Caring for Customers

To succeed, the top levels of a company must know what they have

always needed to know: what their customers want from a Web site. Successful

companies know this. One common theme among successful executives is a

genuine interest in what happens in cyberspace. They go into their own sites,

and competitors' sites, on a regular basis. Successful Internet managers are

obsessed with streamlining the process. They know how many clicks it takes to

get the required information, and how long it takes them to respond to e-mail.

According to Bruner (2000), a key component of any brand experience is

the quality of customer service and support. A sound understanding of the

company ’s customers is a critical prerequisite in achieving such service

excellence. It becomes a necessity to increase the frequency of communication

with online users by establishing dialogue systems like focus groups and

quantitative studies (Siegmund, 2003). In addition, the online experience should

be easy and logical in order to delight users and encourage repeat site visits

(Siegmund). Therefore, good website usability is a key to satisfy online

customers. Comparing established brands with pure players, Sharpe (2000)

found that the online experience is of higher importance for a mature brand.

Believing that familiar brands like Crest or Tide are able to afford a sound online

presence, consumers expect experiences that reflect this. Consumers often

make no distinction between the brand in cyberspace and in the real world

(Siegmund).

URL:http://66.102.1.104/scholar?hl=en&lr=&q=cache:yXDN8fmokUUJ:www.globalbrand

61

s.org/research/working/Online_Branding.pdf+Rather,+the+development+of+a+powerful+

brand+requires+analysis,+planning,+execution,+time,+and+money

Though confronted by a rapid changing technology, marketers can face

the challenges of the online world by pursuing the above key branding principles.

Branding on the Web, they will gain a deeper understanding of the diverse

unique opportunities of this modern media channel. Online advocates, for

example, suggest specific solutions that will help companies to further distinguish

them from their competitors. URL:

http://74.125.113.132/search?q=cache:mCFW7YZM4PUJ:www.globalbrands.org/acade

mic/working/Online_Branding.pdf+&hl=en&ct=clnk&cd=1&gl=ca

Taking into account, to be successful in the online branding business the

following key branding principles should be considered (Siegmund, 2003):

Key Branding Principles are:

• Defining the Brand

• Branding on Internet

• Selecting the Brand Strategy Framework

• Developing Specific and Achievable Goals

• Operationalizing the Brand

• E-Mail Marketing for High Tech Companies

• Viral Marketing

• Monitoring the Brand’s Performance

• Caring for Customers

62

The Technical Aspects of On-line Market Maximization

In this section I will be addressing Search Engine Maximization (SEM)

which can drive substantial profit to any business. Maximizing the success with

SEM is not easy. Marketers are faced with technical challenges. One can

maximize the success by addressing these challenges.

Distinguish Between Paid & Natural Search

When one enters a keyword or phrase—for example, "ASIC"—Google

displays two sets of results—paid and natural. The "natural" or "organic" results

come from Google’s massive index of Web pages located all over the Web. At

last count, this totalled over two million pages. These pages are indexed based

on Google’s unique algorithm. The pages displayed range from sea food,

Australian Securities & Investments, American Society of Irrigation consultants,

and Semiconductors. Natural search results can span hundreds of result pages,

and the sort order is determined by the search engine’s proprietary algorithms

(Omniture, 2005).

URL: http://assets.omniture.com/en/downloads/guides/06_SuccessKit.pdf

In the web design when the first page is optimized favourably, there is a

good chance it will appear somewhere towards the top of the natural results

(Omniture, 2005). If this occurs, it is a very low-cost method of advertising and

the visibility gained can be tremendously powerful. Multiple studies have

highlighted the power of being listed on the first page of search engine results—

either in the top ten or even in the top three. To ensure this ability sites need to

63

be maximized. Multiple agencies offer search engine optimization (SEO)

services, which promise to improve one page ranking in natural search listings.

Most of these efforts involve multiple months of careful planning, changes, and

measurements—which are often quite costly.

The alternate way is to have paid search results or advertise in Google.

Paid search results pose the challenge of how to distinguish the incoming traffic

between paid & natural search (Bazac, 2004). Without having a mechanism to

distinguish web paid search page and hits from natural search, it is difficult to

measure the ROI of marketing dollars spent on the paid advertisement. A

solution is to use a web analytics tool which modifies the URL on the search

results - it adds a unique tag ID to each click on the paid search. A web analysis

tool can measure the number of the unique tag IDs coming to the site and log in

the results. Web analytics tools such as: Ominiture, Intellitracker, Clicktracks etc

can be used to track the effectiveness of the paid search.

URL: http://www.internetretailer.com/dailyNews.asp?id=11862

This strategy for identifying traffic from paid and natural search channels is

critical to maximizing SEM success. It is important to understand what traffic is

driven by each channel and the profit resulting from that traffic. This information

must be reliable and accurate. If one works with an agency, this insight can be

used as a baseline to model the ROI from the SEO activity. If managing the SEO

efforts in-house, one can leverage this to better understand how many resources

can be profitably allocated towards continual SEO efforts. One can maximize the

profit yield on matching paid and natural search keywords by reducing those paid

64

campaigns that effectively cannibalize natural search positioning (Omniture,

2005).

Measuring the Paid Click

When using a paid search, it’s critical to buy more than just clicks. One

needs to buy the conversion of the clicks which will eventually lead to profit

whether it’s direct via online sales or indirect via offline means (Omniture, 2005).

Every keyword has a break-even point. Each word in the maximization list is

bought and bidding any higher than the benefits received will be ineffective. In

this sense, to succeed with paid search, one must have an intimate

understanding of one’s break-even point (Omniture). It is important to have the

right keywords, effective ad copy, and a persuasive and optimized Web site

experience.

Building a Conversion Funnel

Measuring beyond the click isn’t just about conversion and profit. Average

campaign conversion rates are anywhere from two to ten percent. The majority of

the visitors are simply not converting to customers (Omniture, 2005). Somewhere

in the sales process they bail out. It could be as early as the landing page, or as

late as the order confirmation page. There is no ability to identify and plug those

exiting in the conversion funnel, when measuring click-through rates. This

represents a huge untapped opportunity of lost customers.

Web analytical tools offer the perfect solution to this challenge. Even with

the most basic Web analytic tags, one gets comprehensive click-stream data that

will show the click path of every user. Unfortunately, most Web analytics

65

providers will sell one that measures the click stream of a user only (Omniture,

2005).

Search marketers (along with most analytics users) will benefit from a

higher level path analysis called fall-out or conversion funnel reporting. Fall-out

reporting allows one to select major checkpoints (or nodes) in a process and

analyze how many users progress through each checkpoint. With fall-out

reporting, one can quickly identify major leaks in the conversion funnel.

Identifying Online Fraud

Online or click fraud is emerging as a key concern for many search

marketers. Despite numerous industry efforts, it is still unclear how large or

extensive this issue may be. Click fraud occurs when visitors click on the

advertising and have no real intention of purchasing. Regardless of how one

defines click fraud; the results are effectively the same: spending money on

clicks or advertising that has zero chance of becoming revenue.

Unfortunately, detecting click fraud isn’t much easier than defining it.

There are Web analytics tools that can help retake control of click fraud. These

tools provide automated alerts that can be configured to look for certain

conditions. Web analytics should provide daily reports on suspicious trends in

one’s SEM activities so that immediate action can be taken. It also provides a

valuable proxy relative to click-fraud reporting that would otherwise be available

from the search engines themselves (Omniture, 2005).

As the popularity and complexity of SEM grows, staying ahead of the

competition will become even more challenging. If one has a list of ten to twenty

66

keywords to manage, it is fairly easy to analyze the data by hand or with Excel or

by using the tools provided by the major search engine vendors. More realistic

would be to manage 100,000 keywords or more daily. At this level it becomes

very complex. At the same time, bidding costs continue to rise as stiffer

competition for ad position within a finite space. MSN and Ask Jeeves have

introduced pay-per-click ad networks to the market in addition to Google, Yahoo.

This further complicates the job of analyzing effective web sites.

In short, marketers are faced with technical challenges. One can maximize

the success by distinguishing between paid and natural search, measuring the

paid click, building a conversion funnel, and identifying online fraud.

Multilingual Web Sites

Internet users who do not speak English now outnumber users who do.

Google offers 97 language interfaces, making it one of the most multilingual Web

sites on the planet. All those languages have paid off. Today, more than half of

all Google's traffic is generated by non-US Web users. Minocha, Hall and

Dawson (2004) recommends ensuring the websites are sensitive to local needs

and local markets by considering factors such as cultural and linguistic nuances,

appearance of graphics, colors, icons and images, culturally relevant examples.

URL: http://www.elda.org/en/proj/scalla/SCALLA2004/minocha.pdf

Consider the following points while building a multilingual web site source.

1. A multilingual web site must be supported locally by individuals with the

ability to write effectively in the local languages site.

67

2. A consistent co-ordination is necessary for local web pages to ensure that

web page looks feel the same in all languages. Most importantly, all the local

web pages must convey the same message.

3. Successful companies offer end-to-end localization; that is, marketing

materials for a product should be localized along with their customer support and

product support content.

4. Marketing and sales drive Web spending, which translates into what

languages are selected. The languages selected for localization tend to reflect

the markets in which a company wants to succeed rather than markets in which

the company is already successful.

5. Multilingual content must be written for the local audience, but it must

adhere to the global standards. Ideally one must use one template to standardize

the look and feel of the web site. A well designed template will provide room for

localization.

Some of the best practices for a multilingual web site are:

1. Develop one template. The best sites apply the template across countries

and languages, thereby enhancing brand consistency and facilitating ease of

update. For example see the similarity between www.monster.com,

www.monster.co.in and www.monster.fr

2. Assume that visitors will be using a dial-up connection and build the home

page accordingly; it should load within a few seconds.

68

3. Build a global gateway. Most customers will enter through owner ".com"

front door. Make it easy to navigate to the local language websites. For example,

the link to Hindi site should be labeled �ह�द�. Punjabi will be ਪੰਜਾਬੀ.

4. Provide the same amount/level of information in local languages as on the

main web site.

5. Learn from the best. Take a look at Intel, Google, Microsoft, etc., and see

how they have approached developing multilingual Web sites. One can learn a

lot by taking a look at the industry leaders.

6. Leverage any existing translations. If one has any translated material

leverage these to cut the costs and speed up translation time.

7. Use paid-search engine marketing and create ads for each language the

site is in.

8. Ensure customers can find the Web site in their language.

9. Watch for colors, numbers and names: colors and numbers can have

different meanings in different countries.

Taking the length and the breadth, multilingual websites receives not just

many new orders, but it enjoys a bigger flow of traffic (Sitecritic, 2009). The future

language will become a mix of languages and having the website translated to

most of them will secure small business in the long run and will ensures its

steady source of income.

69

Attracting More Online Customers

As more and more companies go the online way to do business, it

becomes imperative to attract consumer attention and hold it to the website

(Geissler, 2001). To be a profitable investment, one needs to attract new

customers. To generate new customers, the website needs to attract many

unsolicited visitors. To attract many visitors, the site needs to rank near the top of

search engine results pages (Fling, 2006).

Some of the best practices that can help attract customer’s attention to the

website are:

1. Generate sales leads. For most businesses, the primary goal of a Website

should be to generate sales leads. Use pay-per-click advertising by Google

Adwords (www.adwords.google.com), Yahoo Search (http://search. yahoo.com)

and MSN Advertising (http://advertising. msn.com) to promote business online

and attract visitors. Pay-per-call, another form of paid search that triggers a

phone call to your business, allows you to sell to online customers without having

a Web presence. Some Pay-Per-Call vendors include AOL

(http://search.aol.com), Verizon SuperPages (https://my.superpages.com/spweb/

products/pay-for-call), and lira (www.miva.com/us/

content/advertiser/paypercall.asp). Use an online newsletter service, such as

Aweber Communications (www.aweber.com), to collect contact information, and

then stay in touch via e-mail and postal mail. There's also an online system that

allows to send a printed greeting card with just a few clicks of the mouse

(www.SendMyReferralCards.com).

70

2. Build relationships. Effective Websites encourage a continuous two-way flow of

information with visitors (Fling, 2006). This is a long-term business development

strategy that will reap tremendous benefits for the business. Use e-mail and

interactive tools such as surveys to find out visitors' burning issues and

questions. Use blogs to further the dialogue with visitors in an informal way and

increase customer loyalty. The ability to build successful relationships with the

customers is integral to building the foundation of the business. The absolute

best way to build relationship is to stay in contact with them. A business

newsletter mailed or emailed is always a good way to go.

3. Provide relevant content. The design and content of the website should be in

accordance with customer requirements. On average, users spend no more than

46 seconds per web page; that is the time to attract consumers' attention and

make them curious enough to browse through the products and services.

Content can be in the native language of the target audience. Using multilingual

websites, one can maximise the sales by giving potential clients the choice of

browsing through the website in the language they are comfortable with.

Security Fears Persist

Comiskey (2005) found that the motivation for Indian users to make

purchases online varies, but most Indian users of the internet fear compromised

personal information. They felt this is still a great risk when it comes to e-

commerce (Comiskey). The single biggest motivation for buying online for Indian

net users was saving time. Comiskey found that thirty-two percent of internet

users looked to shop online to save time. Convenience of shopping '24x7' and

71

home delivery are other major incentives. However, the concern of possible

misuse of credit car or personal information is extremely significant among online

buyers, with almost 55 percent of them voicing their concern. Clearly, tackling

and countering the issue of online safety is an imminent challenge for net

marketers.

In summary, the online market in India is blossoming but is yet to take off

in a considerable way (Comiskey, 2005). The Internet is still being used more for

searching than buying products and services. Though a noticeable proportion of

net users (32%) are also net consumers, 55% fear buying online. Targeting and

maintaining the good relationship with current users should become the

important part of internet market policy.


Now more and more Indian Internet users are opening their wallets online

even through such hurdles as limited broadband access and security concerns

remain. Currently more than 4.2 million shoppers shop online in India (Comiskey,

2005). While current trends point to increased e-commerce growth in India, the

online marketplace in the country of more than 1 billion people is still relatively

small.

72

Research Methodology

The methodology used for this project was quantitative research. The

primary research source was the survey conducted through questionnaire with

existing clients and potential clients. Secondary research data was collected and

reported in the literature review. This material was collected through internet and

other various secondary sources which included books, reference materials and

websites. The primary research is explained and supported by the secondary

research undertaken in the literature review. This section is a combination of

literature review and actual practice undertaken in the research for this study.

The practice followed the best practices identified in the literature.

Data was obtained through:

A. Quantitative research through surveys

The clients of Sohi Glass House and Deep Glass House were asked to answer a

questionnaire.

Potential clients were also asked to complete the survey designed to gather

information on internet marketing and its effectiveness.

B. Analysis and statistics of the data collected from the customer questionnaires.

The following studies have been reviewed:

1. The importance of interaction, identification and intensity characteristics to

ensure the success of any on-line business (Pazzal & Sikka, 1999).

2. The importance of e-commerce in the emerging electronic society

underlying the web (Hoffman & Novak, 1996).

3. Harmonization of traditional concept of marketing with the e-commerce

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marketing strategies for the success of a business (Allen & Fjermestad, 2001).

Two separate questionnaires were generated and offered to existing

clients of two companies, and clients for internet marketing. The existing clients’

questionnaire was pretested on a sample of UCW students to ensure they

generated consistent interpretation and a sample of four individual key clients to

test that the questions were appropriate for the Indian market. The internet

marketing questionnaire was tested on a sample of UCW students for

consistency of meaning and then with four clients located at Chandigarh and

Punchkula.

The clients’ privacy will be protected; no names were kept. Upon receipt of

the questionnaire, the names were removed and a number assigned to the

questionnaire. Participants were also reminded not to answer any question they

consider inappropriate or threatening. The participation in the project did not

affect the daily routine of the participants and was strictly on a voluntarily basis.

Any information provided by the participants is anonymous and will be

safeguarded to protect the integrity of the participants in the context of

questionnaire.

Quantitative Research

Quantitative research is a means for testing objective theories by

examining the relationship among variables. Those variables in turn, can be

measured, typically on instruments, so that numbered data can be analyzed

using statistical procedure (Creswell, 2008). The type and amount of data to be

collected depends upon the nature of the study, together with its research

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objectives. If the study is descriptive or casual in nature, it is likely to require a

relatively large amount of quantitative data obtained through surveys or by

accessing existing electronic databases (Hair, Babin, Money, & Samouel, 2003).

Quantitative methods are research techniques that are used to gather

quantitative data - information dealing with numbers and anything that is

measurable (Hair et al., 2003). Statistics, tables and graphs, are often used to

present the results of these methods. Quantitative data are measurements in

which numbers are used directly to represent the properties of something. Since

they are recorded directly with numbers, they are in a form that lends itself to

statistical analysis. Quantitative data help provide objectivity in that hypothesis

are tested by applying statistical criteria to the measures.

Surveys

A survey is a procedure used to collect primary data from individuals. The

data can range from beliefs, opinions, attitudes, and lifestyles to general

background information on individuals. Surveys are used when the research

project involves collecting information from samples of individuals (Hair, et al,

2003). They claimed that the methods of collecting survey data fall into two broad

categories: self-completion and interviewer-administered. Self-completion

methods include mail surveys and electronic surveys. Interviewer-administered

methods involve direct contact with the respondent through personal interviews,

including face-to-face and telephone.

Questionnaires

A questionnaire is a predetermined set of questions designed to capture

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data from respondents. It is a scientifically developed instrument for

measurement of key characteristics of individuals, companies and other

phenomena (Hair et al., 2003). Questionnaires are used to collect quantitative

data from number of individuals in a relatively quick and convenient manner.

Good survey research requires good questionnaires to ensure accuracy in the

data.

Draft Questionnaire

The quantitative data for this project was derived from two survey

questionnaires aimed at existing clients, and internet marketing clients. The

questionnaires were used to identify the information concerning the acceptance

rate and opinions regarding internet of the Indian market. Sample questionnaires

were developed in accordance with guidelines for creating effective surveys

(Spunt, Trevor, & Hepworth, 1998). The guidelines provided by marketing

research, an applied approach by Malhotra, & Birks, (2000) were also

considered. According to them, a good questionnaire must consider the

following issues:

o Does it provide the necessary decision-making information?

o Does it consider the respondent?

o Does it consider the interviewing environment and questionnaire length?

o Does it meet editing, coding, and data processing requirements?

The existing clients’ questionnaire was comprised of 10 questions and

internet marketing clients’ questionnaire comprised of 13 questions. Drafts of the

questionnaire are in Appendix A and B.

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The questionnaires probed the following:

1. Perception of the customer towards internet marketing.

2. Benefits of the customer from internet marketing.

3. Level of satisfaction among the existing clients from the current marketing

operation for glass, and the area of dissatisfaction.

4. Level of satisfaction among the internet marketing clients from the current

internet marketing operation in different industries, and the area of

dissatisfaction.

5. Level of comfort with the internet marketing

6. Effectiveness of internet marketing in glass industry.

Validity

Validity describes the extent to which a measure accurately represents the

concept it claims to measure (Punch, 1998). There are two broad measures of

validity—external and internal. External validity addresses the ability to apply with

confidence the findings of the study to other people and other situations, and

ensures that the 'conditions under which the study is carried out are

representative of the situations and time to which the results are to apply' (Black,

1999). Internal validity addresses the reasons for the outcomes of the study, and

helps to reduce other, often unanticipated, reasons for these outcomes.

Three approaches to assessing internal validity are content validity,

criterion-related validity, and construct validity (Eby 1993, Punch 1998). For this

study the content validity method was used.

Content validity is concerned with the relevance and representativeness of

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items, such as individual questions in a questionnaire, to the intended setting. It

is particularly important to measure this if the study is designed to ascertain

respondents' knowledge within a specific field, or to measure personal attributes

such as attitudes (Eby, 1993). It can be achieved through conducting a pilot

study with people who are similar to the intended study participants. Such

relevance can be supported by literature reviews and documentary evidence,

where available. The questionnaires were validated through a pilot study on 7

UCW students. No changes to the questionnaire were undertaken as the student

pilot tests demonstrated that the questionnaire served its purpose.

RECOMMENDATIONS OF BEST PRACTICES FROM THE LITERATURE

REVIEW AND RESEARCH FOR SOHI GLASS HOUSE AND DEEP GLASS

HOUSE FOR INTERNET MARKETING

The literature review was conclusive in best practices involved in internet

marketing. I have selected the practices which will guide the development of the

internet marketing for the clients. The goal for the internet marketing is to develop

customer loyalty and to increase the customer base of these companies through

internet marketing. When it comes to business websites, a return on investment

is expected (Montague, 2007). To get any kind of return, the website needs to

have a goal. Is the website intended to inform, share news and information,

communicate with different locations, entertain, or make a profit by selling

information, services, or products? The survey findings indicated that the current

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and potential customers want internet marketing that has clear information and

prices.

The marketing goal is always to attract and convert the target market into

customers (Montague, 2007). The people surveyed who were not current

customers indicated their use of online to inform them. This bodes well for

reaching new clientele through this medium. People still buy based on their

needs. The product or service offered by the company should fulfill one or more

of the customers’ needs; in this case, it is the need for industrial glass. The

companies’ branding is associated with Saint Gobain glass which is a dominant

global player in the glass sector.

In the literature review on best practices it was clear that the internet

marketing plan should contain the following (Marketing Scoop, 2007):

1. Provide value to the market. Glass purchase is price and service

sensitive. The internet marketing will present the companies focusing on the

price (below the competitors), and service (beyond the norm). If this message is

clearly indicated new customers will be attracted to doing business with them.

2. Provide enough information for the customers. The survey indicated the

internet was used to gain information on product offers quality, availability and

price

3. Communicate Respectfully - No one likes SPAM. No one wants to wait on

hold when they call Customer Service. No one wants to wait a week for a

response to an email. The email will be done with permission. The survey

indicates that an internet inquiry should be responded the same day. This will be

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a company policy to ensure this rapid response to customer inquiries on line.

4. Be Trustworthy - People buy from people they like and people they trust.

The survey indicated that clients are loyal customers and are satisfied with the

current services of the companies. This will be conveyed in the internet material

– perhaps with some customer quotes

5. Build Relationships - Your customers must will feel comfortable with you

and ideally talk about you to others. The ability to build successful relationships

with the customers is integral to building the foundation of the business (Miller,

2008). The absolute best way to build relationship is to stay in contact with them.

A business newsletter mailed or emailed is always a good way to go. Another

way to build relationship is to know the customers. Having a relationship that is

on a first name basis helps to make customers feel more secure and they will be

willing to recommend other people that might be interested in the product or

service offered (Miller, 2008). Follow up calls are also important to value the

relationship with customers. The survey findings indicated that this was being

done as money came to the business through referrals from friends.

6. Provide relevant content - The design and content of the website should

be in accordance to customer requirements (Fling, 2006). At an average, users

spend no more than 46 seconds per web page; that is the time to attract

consumers' attention and make them curious enough to browse through the

products and services. Content can be in the native language of the target

audience. Using multilingual websites, one can maximise the sales by giving

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potential clients the choice of browsing through the website in the language they

are comfortable with.

7. Generate sales leads - For most businesses, the primary goal of a

Website should be to generate sales leads (Fling, 2006). Use pay-per-click

advertising by Google Adwords, Yahoo Search and MSN Advertising to promote

business online and attract visitors. Pay-per-call, another form of paid search that

triggers a phone call to your business, allows you to sell to online customers

without having a Web presence. Use an online newsletter service, such as

Aweber Communications to collect contact information, and then stay in touch via

e-mail and postal mail.

Internet Marketing Techniques

The internet marketing strategies and techniques are very important to

rank high in the search engines, to make money on the internet, and for the

ultimate success online. Internet marketing strategy is a systematic plan that

uses search engine optimization (SEO) techniques to get quality traffic to the

website, and successfully converting that traffic into customers. Following are the

internet marketing techniques:

Search Engine Maximization

Search engine maximization is the most appropriate and effective

technique for the website to generate traffic. Generally 70-80% of the web traffic

comes from search engine referrals (Mansoft Creations, 2001), so it is always

advisable to optimize your website to search engine listing. Internet marketing

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with the use of website design search engine optimization can make massive

savings on advertising budgets in the long term (Mansoft Creations, 2001).

Website optimization is the premier solution to your internet marketing

requirement (Weblinx, 2008). This is because search engine optimization is a

process which places company websites in the natural search engine listings.

Listing in search engine should not be avoided, as investing small amount today

will give many times greater return in future (Weblinx, 2008). The sites for the

companies will be developed by search engine experts so that their optimization

is assured.

The companies will optimize their websites on search engine listings. They

will provide navigational links to all of their web pages. Add reviews on the

different type of glass that the companies carry. This will attract potential buyers

to the web site because buyers research first before they buy online, according to

the literature search and the survey conducted for these companies.

CPC (Cost per click)

Cost per Click refers to paying for quality visitors to the website. This is an

effective form of advertising on the internet and can be costly. Cost per click

internet advertising comes in various forms online such as advertising with

sponsored links, recommended links etc (Weblinx, 2008). Payment is due when

potential buyers visit the website (Mansoft Creations, 2001). Internet advertising

with cost per click is more popular and can be more profitable than banner

advertising (Mansoft Creations, 2001).

The downside to advertising with "cost per click" links is that the top

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listings on all search engines receive the bulk of the traffic. The more popular the

website, the more the web site has search engine optimization and the more the

fees will be for pay for clicks, even when a customer does not actually buy from

the website. Many companies use the cost per click form of advertising because

they are unable to get their website high in the natural listings (Mansoft

Creations, 2001). Due to the competitive nature of the advertising market and the

web design market, it is extremely difficult to achieve top positions. This has

formed a massive gap in the market and that is why search engine optimization

is the most affective form of advertising online.

The companies will track pay-per-click marketing when potential buyers

will visit the website. Clicks will be tracked and reported on time with daily

summary reports. For pay-per-click marketing, it is essential to know “per click”

results from the money that has been spent.

Branding and Banner Advertisement

Companies that use pop up banner advertising are mainly in the loans,

insurance, property, travel, sex or gambling industries. Advertising via page

banners expect to receive between one and fifteen percent of the traffic (Vlook,

2008). Banner advertising on the internet is extremely effective for branding

awareness. The banners you can use to advertise your business come in all

shapes and sizes. Banner advertising can be static with a picture or logo along

with text that is developed to attract the end user to the product. There is also

internet advertising with a creative banner that moves and flashes to attract the

end users attention. When advertising on the internet using pop up banners, note

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that the end users, are tired of having banners popping up on their screens

advertising products that they are not interested in. While India has not yet had

the exposure of the other end users it is expected that over a short time the new

users in India will have a similar resistance to the pop ups.

Banner advertising is mainly a brand awareness form of advertising and

helps to corner the market when you do advertising for your business. This

approach may be lucrative when introducing internet advertising to India. Banner

advertising is more effective when it is exclusive to the company; it is the only

banner on the page and if it appears on every page throughout the search (Net

Commerce Solutions). Banners can also be maximized; on the few search

engines that have banner advertising, it is handy to secure a single keyword

phrase, so that the banner get all hits from variations for that keyword.

Advertising with banners can be extremely costly if the keywords are not

maximized for effectiveness. Example of a banner for them:

E-Mail Marketing

The survey indicated potential receptivity to email marketing if it was done

well. There are strong pro’s for and against email marketing. When done

correctly, email marketing can be an extremely powerful and effective marketing

technique. It’s a medium that allows a buyer and seller to freely communicate

with one another and build a relationship based on value and trust. When done

incorrectly, however, email marketing can be destructive, erode brand equity,

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and turn your happy clients into litigious flamers. Marketers soon learned that

online customers became tired of ‘spam’, marketing messages bombarding their

email boxes. Still, email as an online marketing tool can be very effective in

acquiring new customers and retaining existing users. Examples for permission

email are the daily or weekly corporate email newsletters (e.g. McKinsey

Newsletter) and customer relationship email (e.g. order confirmation by

Amazon.com).

E-Mail works great for niche services or new services that can be

marketed to the current customers. If the new services are an extension to the

existing services, then email marketing is a great way to generate customer

interest and create the right environment for the actual sales pitch. This is done

by implementing marketing campaign using a permission-based email service;

sending an unsolicited e-mail is undesirable and is known to antagonize

customers and is therefore counter productive (NetStride Internet Solutions,

2004). According to David Daniels (2008), “Better understanding and reaching

out to your most influential customers via email is one way to cement customer

loyalty”.

The recommended plan is to implement an email direct mail campaign to

current customers and to offer them a good deal on the new service. This is

particularly effective if your customer has been buying the new service from

another supplier. This upgrade will be beneficial to the current customers. The art

will be in the communication package of attractive and well-written emails that

will explain the benefits of the new service levels. The companies will follow

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these steps to implement the e-mail campaign.

1. Segment customers in the database so that it is easy to send out customized

emails that speak directly to the individual customers’ situation by client type and

past purchases.

2. Offer the current customers a special lower price on the new service, which is

valid with a year agreement. The companies have a very fashionable service

they can add to plain glass which is to upgrade to an etched glass. Etched glass

has been featured in model homes, office buildings – even as an interior window

wall around the conference rooms. It adds individuality to the glass and helps

others to enhance their branding.

3. Pilot test will be conducted by sending out an email to part of the segment of

customers (10%) and the results will be tracked by click through rates and the

number of actually buyers of the service. Upon analysis of the pilot results, they

will modify the message if needed, and resend out to yet another 10% and

measure the results with the revised message. This ensures the message has

been pretested and will result in customers’ purchases. They will pick the most

effective email and send the rest of the segment. This will be repeated with each

segment.

4. The email campaign will be more than one email. Possibly It will start by

sending out one email which talks about one new/additional service. As there are

multiple services, these will be mentioned in a subsequent email after the initial

pitch.

5. The emails will be kept simple. It is important not to clutter these emails with

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too much information.

Multilingual Web Sites

Internet users who do not speak English now outnumber users who do.

Google offers 97 language interfaces, making it one of the most multilingual Web

sites on the planet. All those languages have paid off. Today, more than half of

all Google's traffic is generated by non-US Web users. Minocha, Hall and

Dawson (2004) recommends ensuring the websites are sensitive to local needs

and local markets by considering factors such as cultural and linguistic nuances,

appearance of graphics, colors, icons and images, culturally relevant examples.

The market these companies serve is multicultural with people speaking

different languages. The languages most commonly spoken are Punjabi, Hindi

and English. Multilanguage website not just receives new orders, but also enjoys

a bigger flow of traffic by being translated to other languages.

Company must consider the following points while building a multilingual

web site source.

1. A multilingual web site must be supported locally by individuals with the

ability to write effectively in the local languages site.

2. A consistent co-ordination is necessary for local web pages to ensure that

web page looks feel the same in all languages. Most importantly, all the local

web pages must convey the same message.

3. Successful companies offer end-to-end localization; that is, marketing

materials for a product should be localized along with their customer support and

product support content.

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4. Marketing and sales drive Web spending, which translates into what

languages are selected. The languages selected for localization tend to reflect

the markets in which a company wants to succeed rather than markets in which

the company is already successful.

5. Multilingual content must be written for the local audience, but it must

adhere to the global standards. Ideally one must use one template to standardize

the look & feel of the web site. A well designed template will provide room for

localization.

Some of the best practices for a multilingual web site are:

1. Develop one template. The best sites apply the template across countries

and languages, thereby enhancing brand consistency and facilitating ease of

update. For example see the similarity between www.monster.com,

www.monster.co.in and www.monster.fr

2. Assume that visitors will be using a dial-up connection and build the home

page accordingly; it should load within a few seconds.

3. Build a global gateway. Most customers will enter through owner ".com"

front door. Make it easy to navigate to the local language websites. For example,

the link to Hindi site should be labeled �ह�द�. Punjabi will be ਪੰਜਾਬੀ.

4. Provide the same amount/level of information in local languages as on the

main web site.

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5. Learn from the best. Take a look at Intel, Google, Microsoft, etc., and see

how they have approached developing multilingual Web sites. One can learn a

lot by taking a look at the industry leaders.

6. Leverage any existing translations. If one has any translated material

leverage these to cut the costs and speed up translation time.

7. Use paid-search engine marketing and create ads for each language the

site is in.

8. Ensure customers can find the Web site in their language.

9. Watch for colors, numbers and names: colors and numbers can have

different meanings in different countries.

Operationalizing the Brand on line

The current companies have a brand which is Saint Gobain Glass which is

a dominant global player in the glass sector. The identification and formulation of

the brand action plan is a necessary step to ensure effective communication and

delivery of the brand’s attributes. This important part of the branding process

should therefore not be overlooked. It demands all parts of the company to

coordinate their behaviours and act consistently for achieving a consistent brand

identity on the Web. The technology for building a Web site is the easy part; it's

the strategy that makes many companies stumble. All senior managers must be

on board and intimately involved in the Internet strategy (Griffith, 1999). The

setup and running of the site may be centralized, or even outsourced, but

executives should know exactly what the site is trying to do and how well it works

from a practical standpoint. A site with glitches should not be allowed to launch,

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no matter how "cool" it is. The establishment of performance and measurement

systems, rewarding specific brand behaviours, supports the successful

accomplishment of the brand action steps in each involved brand business area

(Siegmund, 2003).

Beyond advertisers’ disregard of basic marketing principles, many

companies’ internal organizational structure lacked the ability to properly address

online objectives (Kottolli, 2005). Online branding is complex, often involving a

number of different organizational parties and constituents “from the top of the

corporate structure to the individuals that are actually interacting with customers”

(Kottolli, 2005, para. 11). It is clear from Kottolli’s findings that the best practice

will be to ensure that the control, design upkeep, and communication are clearly

part of a cohesive organizational structure.

Being confronted with an impatient online community, firms are advised to

concentrate their efforts on an appropriate organizational structure, if they plan to

survive in cyberspace. The solution is to be organized and to structure your

online business for fast, appropriate, accurate, and timely information for their

consumers.

Feedback

I shared this report with Dr. M. Machado in order to garner feedback from

an e-business specialist. Dr. Machado teaches E-Business at University Canada

West. His initial comments were on the business prospect of e-business in India.

He wrote,

The idea of researching potential use of E-marketing in India is very good

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and worth pursuing. India has a large population, fast growing middle class as potential target. I am not sure the industry you have chosen (i.e., the two companies you have studied) is the best one to start He certainly found a restriction for this project if the focus was to find a

business opportunity to introduce E-business in India. The project was not

undertaken for that purpose but rather to do the research into how the owners of

these two businesses could enter into e-business--not to find the most lucrative

venue for e-business. Dr. Machado felt that, “The highlight of your work is the

study of the Indian internet population and consequent ly potential market; good

job there”.

He recommended that I needed to do further research in to—“How do you

attract potential customers to your website?” I thought I had covered this area

well but in response to the feedback I went back to the literature search to find

what I had left out. He pointed to the need to focus on how you increase

conversion rates (i.e., percentage of people who visit a company’s website ad

actually do business with them). As he acknowledged, at this time e-business is a

novelty in India with huge growth potential. The expected initial users of the site

will be current customers, and the internet trend setters. With time and increased

usage of reliable internet in India, the opportunity will grow from the mentioned

population to the general public. The internet site originally being established by

these companies will be expanded at that time to attract new users and convert

them into loyal customers.

Machado also asked “How do you increase profitability of loyal

customers?” I realized that while it was covered in the literature review, this also

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needed to be addressed in the best practices. I amended the best practices to

reflect this.

He continued by talking about the complexity of web design. He said,

There are many factors involved on that, some of them you have actually approached, but I don’t think you have reached the depth needed to achieve your objectives. For instance, taking website design do you provide enough guidance for the two case companies to either design or improve their website?

The intent of this study was to give the clients an overview of what was needed

as they went into e-business. The intent was never to go into the technicalities of

developing the actual web site. As Dr. Machado acknowledged that the talent is

already in India to do so. He wrote “. . . the number of talented IT professionals in

India. Companies all over the world are tapping in these resources to develop

and maintain systems, including web services. E-marketing is for sure a potential

market for those people”.

Modifications Due to Feedback

The first time that I solicited feedback was when I sent the almost finished

project to Dr. Marcelo Machado. Comments received back were focused on the

business prospect of e-business in India. He recommended that I needed to do

further research into—“How do you attract potential customers to your website?”

I amended the literature review by adding more information gathered on

attracting more online customers. I also amended the best practices to reflect

this. I have tried to address all the feedback comments and other issues to the

best of my knowledge. I feel that the experience of gathering feedback on the

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project for an e-business specialist was valuable. He pointed out areas the

owners of the glass shops will need to address when they get their actual web

site designed. This was helpful to me as well as it will be helpful to the clients.

Caveats

The project might be impacted by the constraints outlined below:

1. Limited number of subjects—the two clients and their key clientele. The

expected sample size is only four, which is not a true representative of the

population as a whole. As Dr. Machado pointed out this certainly reduced the

rigour of the final study. With more time and more availability of contacting

business as in India I would certainly have increased the depth.

2. Level of accuracy of the results of research is restricted to the accuracy

level with which the customers have given their answers and the accuracy level

of the answers cannot be predicted. The questions were pre tested with a group

of students from UCW to determine the consistency of replies. The students were

asked about their understanding of the questions so that the final questions

would be clear and direct, ensuring constancy in the replies they generated.

3. Limited amount of resources. Information is partly based on secondary

data and hence the authentic of the study can be visualized and is measurable.

4. One of the biggest limitations was time and money. The limited amount of

money did not allow for expensive analysis of the data. It was difficult to reach

key clientele. Often the top rank officials did not have sufficient time to provide

information; they always seemed to have to attend some meetings or

conferences.

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Appendix A

Draft Questionnaire for Existing Clients

1. How do you came to know about our company? A. Newspaper

B. Friends

C. Relatives

D. Other modes

2. Since how many years you have been client of the company?

3. What are the current marketing tools company is using for you?

A. Advertisements

B. Sales promotion

C. Personal selling

D. Internet marketing

E. Others

4. Which marketing tool motivates you most to make buying decision?

A. A. Advertisements

B. Sales promotion

C. Personal selling

D. Internet marketing

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E. Others 5. Are you satisfied with the current marketing

approach?

A. Yes

B. No

6.

How much internet do you use?

High (More than 7 hrs)

Medium (5 – 6 hrs)

Low (2 – 4 hrs)

7. What is average duration of your internet usage?

8. What are your motives for using internet?

A. Business

B. News

C. Entertainment

D. Other

9. Are you familiar with concept of internet or

e-marketing?

A. Yes

B. No

10.

What are your views about application of Internet marketing in glass industry?

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Appendix B

Draft Questionnaire for Internet marketing clients

1. What benefits does Internet marketing offers in Glass industry?

A. Time

B. Cost

C. Accessibility

D. Convenience

E. Any other

2. Which type of information do you seek from internet marketing?

A. Product specific

B. Price specific

C. Problem specific

D. Any other

3. What different sections would you like to have on company website?

A. Public Information

a. Application of glass b. Function of glass c. Products offered d. Contact details e. News from world of Glass f. Introduction about

company B. Professional Information

a. Product detail b. Product price c. Classification of product d. Project references

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e. Technical support 4. Do you prefer descriptive or specific

information?

5. Would it be valuable to receive monthly newsletters regarding new product launches and current updates in glass industry?

1 – Extremely valuable

2 – Somewhat valuable

3 – Neutral

4 – Not Interested

5 – Do not send these to me

6. How do you rate client information privacy on internet marketing?

1. Extremely concerned 2. Moderately concerned 3. Least concerned

7. Using scale, rate the quality and usefulness of information through internet marketing.

1 – Excellent

2 – Very Good

3 – Good

4 – Average

5 – Needs Improvement

8. Using the scale, rate the reliability and consistency of information on internet marketing.

1 – Excellent

2 – Very Good

3 – Good

4 – Average

5 – Needs Improvement

9. In case of an internet enquiry, within what 1. 30 mins- 1hr

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time frame you want company to respond?

2. 1hr – 6 hrs

3. 6hrs – 14hrs

10. What specific information do you like to have under technical section of website?

11. In case you are completely satisfied with the quality of product, would you like to go for an online purchasing facility?

A. Yes

B. No

12. Is it valuable to have a brief online presentation to make buying decision?

1. Extremely valuable

2. Moderately valuable

3. Least valuable

13. What additional information would you like to have, which you think can be offered by means of internet marketing?

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Appendix C

Questionnaire

1. How do you came to know about our company?

This is to know the source of knowledge about the company in order to deliberate

the issue of marketing strategy.

2. Since how many years you have been client of the company?

As this survey is given to the existing clients of the company with the objective of

knowing the effectiveness in service quality for retaining the customer.

3. What are the current marketing tools company is using for you?

This question was to know the proportion of the each marketing tool pushing the

current sale of the company which would help us to prepare for the future

marketing strategy.

4. Which marketing tool motivates you most to make buying decision?

This would lead to find about the important marketing tool.

5. Are you satisfied with the current marketing approach?

It is to know whether to change the current marketing approach.

6. How much internet do you use?

It is to create the base for making internet strategy.

7. What is average duration of your internet usage?


8. What are your motives for using internet?

It is to find the motive in order to build the internet marketing strategy.

9. Are you familiar with concept of internet or e-marketing?

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10. What are your views about application of Internet marketing in glass

industry?

It is specific on the marketing strategy for the glass industry. (is something

missing here???)

Questionnaire

1. What benefits does Internet marketing offers in Glass industry?

It would help us to find with what intention they have come online.

2. Which type of information do you seek from internet marketing?

It is intended to create the important tool on the web page.

3. What different sections would you like to have on company website?

It is create the effectiveness and leverage of the information required.

4. Do you prefer descriptive or specific information?

For putting the kind of information over the internet.

5. Would it be valuable to receive monthly newsletters regarding new product

launches and current updates in glass industry?

It would support us to find out the importance of monthly newsletters to the

customers.

6. How do you rate client information privacy on internet marketing?

It would help us to win the “trust”, which is an essential for any marketing

strategy, of the customers as they are very sensitive to this issue

7. Using scale, rate the quality and usefulness of information through internet

marketing.

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Scaling would help us to find how much rely be made on internet marketing.

8. Using the scale, rate the reliability and consistency of information on

internet marketing.

Scaling would find whether customers really find it useful and reliable or do they

still need to personally visit the house. If they still need, a goal oriented marketing

team should be there to handle them.

9. In case of an internet enquiry, within what time frame you want company

to respond?

It would lead to an important decision of e-marketing strategy.

10. What specific information do you like to have under technical section of

website?

This would enable us to build the effective and useful website on the line of

expectations of clients.

11. In case you are completely satisfied with the quality of product, would you

like to go for an online purchasing facility?

It would find to know whether we are going to serve only existing customers or

only new customers or both of them.

12. Is it valuable to have a brief online presentation to make buying decision?

It would find to know whether we are going to serve only existing customers or

only new customers or both of them.

13. What additional information would you like to have, which you think can be

offered by means of internet marketing?

It would help us to serve the purpose better and in more effective way.

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Appendix D

Questionnaire Testing

For Questionnaire A for Existing Clients was distributed to 7 UCW students

to test that the questionnaire was easily understood by them.

Q1. How do you came to know about our company? Easily understood

Q2. Since how many years you have been client of the company? Easily

understood.

Q3. What are the current marketing tools company is using for you? This

question was easy to understand and the students enjoyed answering the

question theoretically. 1 answered (A) Advertisement, 1 answered (C) Personal

selling, 1 answered (D) Internet marketing, and 1 answered that marketing tools

for company would vary, but as a client he thought he would not answer this type

of question.

Q4. Which marketing tool motivates you most to make buying decision?

2 of the students answered (C) Personal selling, and 1 answered (A)

Advertisement.

Q5. Are you satisfied with the current marketing approach? This question was

easily understood.

Q6. How much internet do you use?

1 answered low (2—4 hrs), 1 answered high (More than 7 hrs), 1 answered

medium (5—6 hrs).

Q7. What is average duration of your internet usage?

2 students said the Q6 & Q7 should be combined because both were similar. 1

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student thought these were unclear, 1 answered 1 p.m.—12 a.m., 1 answered 8

p.m.—11 p.m.

Q8. What are your motives for using internet?

3 students answered (B) News, 1 answered (D) Other

Q9. Are you familiar with concept of internet or e-marketing?

2 students answered yes and 2 answered no

Q10. What are your views about application of Internet marketing in glass

industry?

1 of the student answered that the question is not clear to answer and clients

usually prefer easy questions to answer others had no comments on the

question.

For Questionnaire B distributed to UCW students:

Internet Marketing Clients Questionnaire was given to 7 UCW students to test

that the questionnaire was understood by them.

Q1. What benefits does Internet marketing offers in Glass industry? This

question was easily understood.2 students answered (B) and 1 answered (E).

Q2. Which type of information do you seek from internet marketing? This

question was easily understood.2 answered (A) Product specific and 1 answered

(B) Price specific

Q3. What different sections would you like to have on company website?

2 answered the question was confusing, others would like different selection

options (a, b, c, d, e) from section A of answer and (a, b, c) from section B of

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answer.

Q4. Do you prefer descriptive or specific information? This question was easily

understood.1 student answered specific.

Q5. Would it be valuable to receive monthly newsletters regarding new product

launches and current updates in glass industry? This question was easily

understood. 2 answered somewhat valuable, 1 said not interested and 1

answered maybe yes or no.

Q6. How do you rate client information privacy on internet marketing? This

question was easily understood. 2 said extremely concerned and 1 said least

concerned.

Q7. Using the scale, rate the quality and usefulness of information through

internet marketing. This question was easily understood.3 of the students rate

the quality and usefulness of information through internet marketing as good.

Q8. Using the scale, rate the reliability and consistency of information on internet

marketing. This question was easily understood. Out of 7 students, 2 said good

and 1 said very good.

Q9. In case of an internet enquiry, within what time frame you want company to

respond? This question was easily understood. 3 answered 1—6 hrs

Q10. What specific information do you like to have under technical section of

website?

This question was easily understood. They needed information on installation,

trouble shooting and new in glass industry from the world.

Q11. In case you are completely satisfied with the quality of product, would you

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like to go for an online purchasing facility? This question was easily understood.

2 said yes they would like to go for an online purchasing and 1 said no.

Q12. Is it valuable to have a brief online presentation to make buying decision?

2 of the students found moderately valuable for online presentation and 1 found

least valuable.

Q13. What additional information would you like to have, which you think can be

offered by means of internet marketing? This question was easily understood.

They need warranty after sales service.

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Appendix E

Existing Client Questionnaire Analysis

Existing Clients questionnaire was completed by 4 clients of the company.

Q1. How do you came to know about our company?

2 of the existing clients came to know about the company through friends, 1

through relatives and 1 through newspaper. I note from this that it is the

networking that has been feeding the customer base.

Q2. Since how many years you have been client of the company?

Number 1 client is client of the company from 2 years, number 2 is from 15

years, number 3 from more than 5 years and number 4 client is a client from 1

year. The clients all have established relationships with the company with the

most recent one being with the company for only one year.

Q3. What are the current marketing tools company is using for you?

2 clients answered advertisement and 2 answered personal selling. These clients

came through networking and 50% indicate they still respond to face to face

contact from the firm. The other 50% were responding to advertising. They

should there for be able to respond to personal advertising through emails.

Q4. Which marketing tool motivates you most to make buying decision?

Advertisement and personal selling motivates them to make buying decision. The

responses to this question and question 3 were identical.

Q5. Are you satisfied with the current marketing approach?

All are satisfied with the current marketing approach so the answer was yes.

Q6. How much internet do you use?

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2 of the clients use internet 2—4 hrs and 2 were not sure about the question and

whether it meant for a week or a day. They did indicate there usage as high and

medium. All were using the internet. This is a positive finding for extending the

marketing to on-line.

Q7. What is average duration of your internet usage?

First client uses internet for 3—4 hrs, second for 1—2 hrs, third 1—2 hrs per day

and fourth wasn’t sure of the question and did not answer. It would appear that

these clients would be able to receive internet marketing material within a day as

they are all on line daily.

Q8. What are your motives for using internet?

2 of the clients indicated that their motive to use internet was business and

others is news and entertainment. For those that are on line for other reason but

business the question is how would they respond to internet marketing for

business.

Q9. Are you familiar with concept of internet or e-marketing?

Yes, all the clients are familiar with concept of e-marketing. This is positive for

the companies plan to market on line.

Q10. What are your views about application of Internet marketing in glass

industry?

Client 1—Internet marketing can help a lot in promoting the sales of glass, one

can get to know different designs and latest fashion these days for glass.

Client 2—One can get to know about the rates and different designs the

company is offering to its customers.

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Client 3—It’s good and will increase exposure for businessmen and buyers.

Client 4—It’s the best way of marketing.

The survey of existing clients demonstrates that client response to internet

informative marketing should be very positive.

Internet Questionnaire Analysis

Internet Client questionnaire was tested on 4 people from Chandigarh and

Punchkula. These people are not clients of the companies. They were chosen

because they live in the cities that in the companies’ service area.

Q1. What benefits does Internet marketing offers in Glass industry?

All 4 clients answered time. Clients will save time by ordering products online.

According to findings clients intention is to look for cost, accessibility and

convenience when ordering online.

Q2. Which type of information do you seek from internet marketing?

The responses show that all clients need price and product specification on the

website. They will be looking for the prices of the products they will be buying

and also give them chance to compare prices with other dealers.

Q3. What different sections would you like to have on company website?

Findings show that clients will like to have products detail, products price,

products offered, news from world of glass and the contact details on the

company website.

Q4. Do you prefer descriptive or specific information?

3 of the clients answered descriptive and 1 answered for specific information.

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Q5. Would it be valuable to receive monthly newsletters regarding new product

launches and current updates in glass industry?

According to the survey 3 clients find valuable to receive monthly newsletters

which is positive for the companies to market.

Q6. How do you rate client information privacy on internet marketing?

All the clients are extremely concerned to give their private information on the

internet.

Q7. Using scale, rate the quality and usefulness of information through internet

marketing.

2 clients rated the quality as very good, 1 excellent and 1 answered good. This is

a positive for the companies to market online.

Q8. Using the scale, rate the reliability and consistency of information on internet

marketing.

According to the findings 2 clients rate the reliability and consistency of

information as very good, 1 average and 1 good. It seems that the clients feel

comfortable and convenient to shop online.

Q9. In case of an internet enquiry, within what time frame you want company to

respond?

2 clients want an enquiry responded within 1 to 6 hrs and the rest 2 want it within

6 – 14 hrs. The findings show that clients want their enquiries to be responded as

soon as possible. This is very important for the companies to retain their

customers by giving them good service.

Q10. What specific information do you like to have under technical section of

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website?

Client 3-- Under the technical section the clients want which kind of glass should

be used with what kind of material and tools to be used for the particular glass.

Q11. In case you are completely satisfied with the quality of product, would you

like to go for an online purchasing facility?

All clients are completely satisfied with the quality of product and would like to

shop online.

Q12. Is it valuable to have a brief online presentation to make buying decision?

All clients find valuable to have online presentation.

Q13. What additional information would you like to have, which you think can be

offered by means of internet marketing?

Client 1-- The nearest dealers address is must.

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Appendix F

Consulting Letter of Acceptance

University Canada West 950 Kings Road, Victoria B.C. V8T1 W6

Dec 3, 2008

Subject: Consulting Letter of Acceptance

Respected Sir,

I want to state through this letter that I Mandeep Kandola is preparing a marketing plan for Mr. Hardeep Singh Sohi and Gangandeep Singh Madahar who owns and operates Sohi Glass House and Deep Glass House respectively.

My client Hardeep Singh Sohi is located at 132, Industrial area, Phase IX, Mohali and his phone number is 011919417007370. Gagandeep Singh Madahar is located at Bagrian Road, Dhuri and his phone number is 011919814131925. The work done by me in this project will help them to mould their services according to market need and eventually increase their market share by marketing online. My clients want me to complete this project at the earliest and have provided me access to his clients. No other restrictions are applied by my clients. Sincerely, Mandeep Kandola

Paper to read (An inquiry into the effectiveness of internet marketing)

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