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RESEARCH REPORT
ON
SCOPE OF E-MARKETING
I hereby solemnly declare that this work (Research Project Report- “ SCOPE OF E-
MARKETING) is my own original piece of work.
The work in this Project has not been submitted to any other institute or University.
All the information in this Project Report given by me are true and Research
This report would not have been possible without the support and guidance
of my teacher.
I would also like to thank Dr. Kulwant Nehra ,Mrs Rachna Srivastava and
Mrs.Ankita Singh.., for giving their valuable suggestions regarding how to
go about the dissertation.
Rationale
Introduction
• Definition
• Indian Overview
• Environmental Analysis
Literature Review
• Prior Research on Marketing with Internet
• The Arena of Marketing Research
• The Art of Database Building
• The essence of Customer Service
An Insight
• Role of Internet in Marketing
• Fundamentals of effective marketing on the internet
Research Methodology
Data Analysis
Discussion
• Recent Trends in Indian Market
• Indian dot com Scenario
Annexure
• Questionnaire
• Internet Glossary
RATIONALE
Objective:
Electronic marketing is rapidly transforming the way hospitality and travel organizations
conduct business. Electronic marketing is normally associated with Internet marketing.
Internet marketing captures data which feeds into the firm’s database; the database is
used to generate profiles and lists, which enable the firm to have effective direct
marketing campaigns; and two of the media for direct marketing are the Internet using e-
mails and CD-ROMs with hyperlinks to the Internet. Underlying electronic business are
two phenomena: digitalization and connectivity. Digitalization consists of converting
text, data, sounds, and image into a stream of bits that can be dispatched at incredible
speeds from location to another. Connectivity involves building networks and expresses
the fact that much of the World’s business is carried over networks connecting people
and companies. These networks are called intranets when they connect people within a
company; extranets when they connect a company with its suppliers and customers; and
the Internet when they connect users to an amazingly large information superhighway.”
E-Business Barriers
If e-commerce is so hot, why has it still made no major impact in India? There are many
reasons.
Internet usage
If computer usage itself is insignificant, Internet usage is almost non-existent. The largest
ISP, VSNL, has about two and a half-lakh subscriber. All the other ISPs put together may
add an equal number. E-commerce happens over the Internet and with low Internet usage.
The governments role also seems useless when compared to forecasts which promise
telephone lines to 15% of the country by 2010!But maybe our internet usage will speed
up due to the fact that industries, services i.e. banking, appliances etc are being net based.
Also, the introduction of wireless application protocol and generalized radio services
internet and other forms of electronic exchange will come onto the scene.
Bandwidth
The lack of bandwidth is a major cause for concern. Currently all international
connectivity is through VSNL and is limited to a very slow speed of 165megabits per
second compared to other countries i.e. in China the speed is of almost 2 gigabits per
second. But there have been have several applications with the DoT by small ISPs to set
up their own gateways, which would definitely mean the introduction of newer and faster
technology.
Cyber laws
People have had problems of non-delivery of orders placed on Rediff on the Net. And it
takes only one scam to shake the confidence from the system. Legal shelter is extremely
imperative for confidence to build up. Then there is the issue of insurance against fraud.
Whether the centralized insurance agencies, which are opposed to the very idea of
privatization, will provide low-premium insurance cover to a high-risk, totally intangible-
based area like transaction indemnity anytime soon is anybody's' guess. The lack of a
secure online payment mechanism and the continued debate on passing the Digital
Signature Act are all major stumbling blocks.
Business-to-business sites are comparatively better off, as they normally have negotiated-
contracts, with governing laws and jurisdiction set out clearly. Also, the transactions are
normally between known entities that have, or are actively looking for long business
relationships.
Digital identity
How can you trust the site you are doing business with? Similarly, how does the site
ensure that you are not using a stolen credit-card number? The answer to this is digital
certificates. But, to issue a digital certificate, you need an extremely trustworthy agency
issuing the certificate of identity.
Inter-state goods movement regulations
Anyone involved in selling and shipping goods across the state borders will testify what a
nightmare this can be. No two states have the same sales tax and excise-duty rules. The
rates differ, the forms to be filled in differ (so do the rates of bribe). And then there’s
octroi.
E-business is what happens when you combine the broad reach of the Internet with vast
resources of traditional information technology systems. It uses the Web to connect
together customers, vendors, suppliers and employees in a way never before possible.
The actual e-Business operation can be described as follows:
1. The client uses the web browser on the local terminal to connect to the e-Commerce
site via the Internet / Intranet.
2. The site presents the client with the products/services offered
3. The client chooses to make an online transaction, and the e-Commerce site requests the
client browser to enable an SSL-protected link. This link-to-link encryption offers high
level of security to the entire process.
4. The e-Commerce site (also called the server), requests personal and financial
information from the client that is relevant to the authentication and validation of the
transaction in process. This is sent for validation to a transaction server connected to all
the databases of all the supporting financial institutions. (For example, the authentication
databases of MasterCard, American Express or VISA), or the internal authentication
database of an Intranet. Depending on the values returned to the transaction server by the
authentication databases, the client’s transaction process is further processed.
E-business really means, the extension of business systems and providing an easy-to-use
interface between the external world and the organization, while increasing reach. Where
one can complete the transaction online and integrate the supply chain into transaction
management process.
Within 30 years, the Internet has grown to the Information superhighway. Just as the
railroads of the 19th century enabled the Machine age, and revolutionized
the society of the time, the Internet takes us into the Information age, and
profoundly affects the world in which we live. Today, some people
telecommute over the Intent takes us into the information e.g. and
profoundly affects the world in which we live. Today, some people
telecommute over the Intent, allowing them to choose where to live based
on quality of life, not proximity of work. Many cities view the Internet as
a solution to their clogged highways and fouled air. Schools use the Intent
Sa a vast electronic library, with untold possibilities. Doctors use the
Intent to consult with colleagues half a world away. And even as the Intent
offers a single Global Village, if threatens to create a 2 nd class citizenship
among those without access.
The web as a Model of Marketing Communications
Firms use various media to communicate with their current and potential customers.
Marketing communications perform three functions: inform, remind and
persuade. Most of the communications are one to many. The Internet, a
revolution in distributed computing and interactive multimedia is
dramatically altering this traditional view of one to many communications.
The new one to one marketing communication model defining the offers a
radical departure from traditional marketing environments.
The Internet offers an alternative to mass media communication. As a marketing and
advertising medium, the web has the potential of radically changing the
way firm do business with their customer by blending together publishing
real-time communication broadcast and narrowcast as an operational
model of distributed computing, the net supports –
Discussion groups (e.g. USINET news, moderated and immoderate mailing lists)
Multi-player games and communications systems 9e.g. chat)
File transfer (ftp) remote login (telnet)
Electronic mail (e-mail)
Global information access and retrieval systems (e.g. archie, vernica gopher and WWW)
INDIAN OVERVIEW
The Indian private sector has already recognized the attractive economics of e-business.
Clearly, the opportunity (and the need) for Indian businesses to get onto the e-business
power curve is really quite high. Needless to add, that the potential exists. The size of the
transactions were over the net was Rs10 crore, a piddling size when compared to the
world, which is expected to cross $900 billion by the year 2007.
Unlike in the past, where existing attitudes have posed major challenges to adopting a
new way of life, with the Internet it has been rather a smooth sailing, thanks to the
extraordinary levels of Internet awareness in the country.
As a result of this, companies have been more open to taking studied chances, as is
evident. Here, we are not just talking of companies that have static web sites but those
which conduct commerce on the net like Color Plus, India Book Shop, bababazaar,
Rediff-on-the-net and Shoppers Stop, selling from books and shirts to vegetables and
soaps.
The lack of infrastructure was a serious impediment, but bottlenecks are soon being
removed. With several private value-added networks (VANs) coming up and with the
reach of Internet expanding, this is becoming less of a problem.
In fact, collective experience indicates that firms can deploy e-commerce solutions over
the current infrastructure and realize significant benefits from them. To be fair, this is one
area that has received focus from the highest levels and there is feverish activity to build
bigger bandwidth and crucial payment gateways, which will enable online credit card
authorization
Indeed, there is much at stake for, say, an automobile company or a fast-moving
consumer goods company which has multiple offices with different manufacturing sites
and warehouses etc across the country. Infact ,Dynamix-a software infrastructure
solutions company, is in the process of helping TELCO to replicate the Ford “just in time
technology” The recent announcement of Hindustan Lever indicates that soon all of its
cosmetic line will be made available only on the net, with one center in each city acting
as demonstration/guidance center.
The country needs to get its legal, legislative, regulatory, infrastructure and manpower
ready for ebusiness. We already see some of this readiness, and hence, India is ready to
boom in ebusiness. While the air of optimism persists, the fact remains that in India
Electronic Data Interchange (EDI) has not really taken off. Therefore, doubts persist
whether corporate and government in specific will adopt and accept this as quickly as is
made out. One of the main reasons is the high entry cost of EDI because of which
companies fight shy of trying out.
The ratification of financial transactions reconciled without paper via the internet by the
Reserve Bank of India. A critical issue, it is expected to be resolved once the government
passes the Electronic Support Act and the Information Technology Bill. Institutions such
as RBI and SEBI are considering various ways to make usage of electronic systems
mandatory for areas such as interbank settlements, payment of dividends etc. These bills
also contain a comprehensive range of provisions that are expected to usher in e-business
in India.
To add to this government incentive has been minimal in the past. However, the fact that
EDI-related issues are being addressed by the government, is again indicative of the
change in the offing. For instance, government agencies like ports are moving to
exchanging documents through EDI and are planning a complete move to accept
documents in only EDI. Similarly, a major pilot project in the auto industry was
successfully completed last year by ACMA (Auto Component Manufacturers
Association), paving the way for its wider acceptance.
Welcome to the new invasion of technology in the Indian banking system.
In developing countries like India with a vast majority of the population living in poor
conditions, technology plays an important role. Technology to the extent that it helps to
reduce costs is a welcome I India. This could be explained by the fact that to process a
banking transaction manually it costs around Rs30-40 where as the same transaction on
the Internet would cost Rs.7-8.
In countries like India technology acts as a leveler that removes inequality between
people of different income groups. For example poorer people who visit banks for their
regular banking activities feel that an unequal treatment is meted out towards them as
against their richer counterparts, especially with the insignificant sums of tier
transactions; while the same people feel more at ease with an ATM that shows no
emotion and all clients are treated alike.
Internet hits the Indian banking sector
Today you send an email or pick up a telephone and your banker lands at your doorstep.
Welcome to the new invasion of technology in the Indian banking system! The
liberalization and the technology-invasion have worked wonders for the banking sector,
say bankers. If ICICI has shown what technology can do for banks, others have quickly
realized the potential and are fast trying to catch up with it. Is technology then the new
driver in the Indian financial system? When all the banks and financial institutions are
offering the vanilla product, the differentiation had to come from service. This
automatically put pressure on the institutions to adopt technology as their USP.
According to industry estimates, some of these new banks on an average send out 500
emails on a daily basis regarding new products, services, or other routine matters.
Internet banking is fast catching up. Banking will never be the same again in India.
Welcome to the new invasion of technology in the Indian banking system.
ICICI announced a tie-up with a Compaq-led consortium for setting up the country’s first
payments gateway to facilitate secured on-line B2B and B2C e-commerce transactions.
This will be the first payment gateway tailored to meet Indian requirements and will not
be subject to all the regulatory concerns that cloud other non-India based payment
gateways. The gateway offers the flexibility of multiple payment modes including credit,
debit and smart cards, direct bank debits and e-cheques. The ICICI e-commerce payment
gateway will launch a state-of-the-art internet payment system and is set to open the
world of e-commerce to many more merchants, consumers and businesses in India by
significantly lowering the cost and complexity of enabling secure transactions over the
Net .The customers credit card number will be protected through hardware cryptographic
devises so that the only information available to merchants is a code. This will
substantially reduce the capital costs of merchants.
Indian Government has liberalized the telecom sector and due to lack of infrastructure
facilities in India, there is a tremendous scope of growth in this sector. The
Indian IT industry is growing at the rate of 40% per annum. There has
been sharp rise in the IT industry if India and is growing at a rate of 40%
per annum which shows that there is a great scope for the companies who
want to enter this field.
Intense competition can be foreseen once the private players are allowed to be ISP’s.
About 200 Indian and MNCs are trying to become ISP’s in India so then
going to be large competition in this market.
OPPORTUNITIES
Liberalization of telecom sector
Rapidly growing industry.
THREATS
Instability of government and the erratic government policies
Fast technological obsolescence
Lack of telecom infrastructure
Slow down of Indian economy
LITERATURE
REVIEW
ELECTRONIC COMMERCE
Time is money. And probably the quickest way to save time and create business, thereby
generating income, is through e-commerce. The success of e-commerce has led to its
implementation in many important business sectors. The ability to conduct critical back
office transactions in a fast, secure and reliable way has become as major part of the
manufacturing, retail and transportation industries. It is rapidly being adopted in other
vertical market sectors.
Electronic commerce is a big picture phenomenon destined to change business habits in
more than one way. Driven by the Internet (also called Internet Commerce'), electronics
commerce is rapidly emerging as an entirely new method to conduct business and interact
with suppliers, partners, and clients. Applying all elements of this new model brings new
dimensions of speed efficiency, spontaneity, interactivity, pervasiveness, and cost
reduction. Jay M. Tenenbaurn, chairman and founder of Commerce Net defines
electronic commerce as "the opportunity for companies to electronically exchange
information and services that are important to business. E-commerce includes the
creation of an open marketplace. " Randall Whiting, president and CEO of CommerceNet
states that "E-Commerce is about a global electronic marketplace that enables all
members of a value chain to interact spontaneously for mutual benefits. It provides an
environment where customers are empowered to control the buying process more
effectively, receiving and accessing personalized information. It provides a platform for
complete relationship management not just a one time transaction."
TYPES OF ECOMMERCE
The two main forms of e-commerce are EDI and Internet-based e-commerce. Internet
commerce largely consists of web-based e-commerce. Today, EDI
features and technologies differ from those offered by Internet commerce,
but these differences win become less pronounced as Internet commerce
matures and as traditional EDI utilizes new Internet-based technology.
Electronic Data Interchange (EDI)
Historically, the main form of e-commerce has been EDI. EDI is a form of program-to--
program communication that lets business applications in different
organizations exchange information automatically to process a business
transaction.
EDI typically has the following characteristics:
Direct application-to-application exchange of information
Well-defined, tightly specified message formats and industry standards
Store-and-forward massaging to transport messages through an intermediary over a VAN
Batch oriented rather than messages operation
Internet Commerce
Internet commerce revolves managing and conducts a business transaction using the
Internet. Web commerce, a subset of Internet commerce, goes beyond
using the Internet as a transport mechanism and presupposes that
participants have web access. Typically, the web browser is used as a
software client for interactive access to a web server implementing e-
commerce. Currently, web-based e-commerce is the most widely used
form of Internet commerce.
Components of the transaction may include catalog display, ordering, order fulfillment
payment processing and back-end integration. Internet commerce
embraces all stages in the trading cycle, from information exchange and
relationship building negotiation and contract agreements to transactions
and fulfillment logistics.
EDI and Web work together Transmit shipping data View inventory and
shipping
E-nasties
There are other nastics out there on the Internet including Fakemail, Mailbombs,
Unwanted Enrolment and viruses.
Fake email messages seem humorous but can have a devastating effect on some of the
recipients. Fakemail messages can come from anyone. Ale recipients are
informed that they have won, been promoted, sacked, seconded etc. Nasty
messages, or hatemail, are not quite the same as the 'traditional' fakemail
since hatemail is real email sent by very angry people to very real people.
Worse still are the Mailbombs. 100 megabytes of messages and
mailbombs have previously brought one organisation's computer system to
its knees and led to the organisation's Internet supplier suspending its
access.
The big worry for anyone using the Internet is catching a virus that will eat into our files
and destroy everything. Downloading multimedia presentations opens up
the receiver's computer to the dangers of collecting a virus. A virus can
destroy flies and sometimes hiding until it is released later at a specific
time.
Dumb search engines
When searching for a particular brand, person, item or subject a user can call up a search
engine and key in a word. Some search engines search according to the
number of references a particular site might have. So, if a competitor
wanted to grab all the Internet traffic aimed at its competitor, they could,
insert thousands of tiny words almost invisible to the eye. The tiny words
could be laid out to form an overall pattern or image, which looks innocent
but in fact uses the competitor's name on their site. Another naughty
approach is to insert a word repeatedly in the background m the same
colour as the background color, thereby becoming invisible to the eye but
visible to some search engines.
Un audited audiences
As with any medium, marketers are interested to know about the audience. Measuring
audience sizes currently presents marketers with a problem: many sites
report the number of ‘Hits'. The problem is that one person can roam all
over a particular web site and register a click for each page, even
registering a click if they go back to a page already opened. Measuring
user hits can be misleading, since one user counts as multiple hits when
accessing multiple files or pages on the same web site.
Exhausted audiences
Information fatigue is all around us. In fact information fatigue syndrome contributes to
stress, which increases illness and ultimately poor performance and
absenteeism. There is too much information out there. Almost 100 books
are published daily around the world. How to find the relevant
information, the accurate information, the easily updateable information,
is now compounded by Information Addiction. In the vast cyber world,
users can eventually get lost confused, frustrated and increasingly anxious
and might just switch off.
Cyber-skivers
Surfing, browsing and wandering around the Internet can cost time and money: executive
time and phone bills as well subscription bills. Nielsen Media Research
revealed that employees from Apple Computer Inc, AT&T and IBM
collectively spent 350 eight-hour workdays visiting the soft porn web site,
Penthouse, in one month.
Trademark hijacking
Internet domain names have a country of origin attached to them e.g. addresses ending in
'UK' and 'IE' is United Kingdom and Ireland respectively. So Microsoft
will register their 150 domain names (one for each country). Companies
that don't register their names complete with the country of origin suffix
leave themselves vulnerable to local laws of name ownership. The Asian
country Turkmenistan has become another country Keen to sell Internet
domain name. Not all countries allow this kind of trademark hijacking.
Tax complications
A problem that won't go away. Where should taxes be paid for goods and services
provided over the Internet? In which country does the transaction occur?
FUNDAMENTALS OF EFFECTIVE MARKETING ON THE INTERNET
The Internet provides an excellent communication tool that lets you reach tens of millions
of professional users. The problem is that although this might seem like a
marketing dream, you have to tread very carefully and observe the Internet
rules of etiquette.
Following are few rules to make marketing effective on the Internet so as to compete in
the market.
Provide a service
In order to attract new visitors and to keep regular visitors coming back, you need to
provide the visitors with a service. The best way to ensure success is to
include all the information a visitor might want, provide timely or updated
information to keep them coming back, and make sure that the site is well
designed and fast to download so that they are not put off by slow speeds.
Timely information
To make sure that your site is a regular stop for visitors, make sure that you include
updated and timely information about your products or services or
information that might be useful to your visitors.
Feedback
Keep the Web site interactive and try encourage visitors to provide feedback and the
service or to provide new information.
Global requirements
Make sure that you provide relevant information for your global audience. Think about
how the needs of a local customer might differ from a visitor on a different
continent. This can be, as simple as including information on your
worldwide distributors or providing pages that are translated into different
languages.
Integrate Internet Marketing
Try and integrate Web site marketing efforts and budget within the overall marketing for
the company. If you are a huge company, make sure that everyone in the
department knows about the Web site and how it works. If you are a small
company, you will find it useful to write down your marketing tasks - for
traditional and Internet marketing - together with an agenda for actions,
costs and results.
Participate on the Internet
One of the best forms of marketing is to go out and be heard. With the Internet this
means someone should participate in newsgroups, answer e-mail messages
and ensure your 'Web site is up to date.
Neat design
Keep the design of your Web pages neat and ensure that there are not too many large
image files that would take a long time to download. For example, if you
have spent a lot of effort creating a rich site you could spoil it with too
many graphics that take minutes to download.
Don't abandon other channels
Treat the Internet as a new opportunity rather than as a replacement for existing
marketing and advertising. It is not worth developing a Web site at the
expense of print advertising or mail shots - these traditional marketing
methods can be measured and will reach existing customers.
Increase the number of visitors
There are many ways of increasing the number of visitors that come to look at your Web
site. Some require effort on your part, others are simple and need only
forward planning. Here are the best ways you can improve the traffic to
your site.
Use newsgroups to reach-an audience
Link to related sites
Swap banner advertising
Announce your Web presence
Use signature flies
Provide something for the visitor
Select an effective domain name
Register your Web site with search engines
Submit your Web site to magazine reviews
Correlating Internet with Marketing and Advertising
www.toyota.com few years ago, no one would have known what this meant. Today,
companies ranging from industrial giants to emerging startups are using
the Internet as a marketing-and-advertising medium.
Entrepreneurial companies, in particular, can benefit tremendously from the use of the
Internet as a marketing, promotional, and advertising tool.
On the Internet, you can create a Web site to attract customers and clients. You can
advertise your site with so-called "banner ads" on other sites. You can
increase traffic through the smart use of promotions. You can use e-mail
to round out your electronic business-building efforts. These four steps
comprise the building blocks of advertising-and-marketing on the Internet.
Taken together, they are unleashing the fastest-growing marketing
opportunity since the coming of television a half century ago. What
follows is a discussion of each.
Build a Web Site
The starting point for any company interested in using the Internet as a marketing vehicle
is your own Web site. Several years ago, building a Web site was a
mysterious and complex task. Today, an entire industry has grown up
around Web-site development, and the Web is a well-accepted new
medium of communication.
For companies, a Web site is becoming as common as a printed brochure, although with
substantial benefits, such as lower distribution cost, worldwide access, and
the ability to communicate with customers (this is called "interactivity")
and create a "community." While building a great Web site can be
expensive, it gives you access to many more prospects for a price that is
comparable to developing a print-marketing campaign.
In addition to creating your own Web site, it is critical that you publicize the existence of
your Web site. Many small companies overlook this and forget to include
their Web-page addresses on printed materials, business cards, and
advertisements. Publicizing your site on the Web is also important.
The most effective way to do this is to get your site listed on a variety of "search
engines," or places people go on the Web to search for specific Web sites,
such as Yahoo! (www.yahoo.com), Lycos (www.lycos.com), and Excite
(www.excite.com). There are a number of products--including Web-based
ones such as Submit-It (www.submit-it.com)--that help you get listed in
these search engines.
Advertise Your Site
Once you've got a Web site up, the most common way to advertise your site (and hence,
your business), on the Web is through something called a "banner ad". A
banner ad is the image that you see at the top of a Web site that says
something like "Click here to fly to Jamaica," (which might be a banner ad
for an airline or a travel service).
Putting a banner ad for your Web site on someone else's Web site accomplishes two
things. First, it gives your Web site and your products or services visibility
on other sites on the Web. Second, it drives traffic to your site through
users "clicking" on your banner ad and going to your Web site. Other Web
sites charge you to put a banner ad on their sites. Not surprisingly, high-
traffic sites such as Yahoo (www.yahoo.com) charge substantially more
than low-traffic sites.
If you want help getting your ads placed for a reasonable cost on other people's Web
sites, there are a number of "ad networks" that help promote banner ads.
These include Link Exchange (www.linkexchange.com), DoubleClick
(www.doubleclick.net), and SOFTBANK Interactive Marketing
(www.simWeb.com). In addition, a number of advertising agencies are
now helping companies--including small and medium-sized ones--develop
banner-ad campaigns to compliment their print and other media
campaigns.
The most common measure of effectiveness--and thus, the basis for pricing banner ads--
is something called a "CPM", which stands for "cost-per-thousand
impressions." This represents one thousand people actually seeing your
banner ad.
However, the real measure of effectiveness is something called a "click-through." It's
one thing to have people see your banner ad; it's another to have them
actually click through to your site. This is what you really want to have
happen, so you should make sure you measure your click-through rate, as
well as monitor your CPM, as part of assessing your electronic advertising
campaign.
Use E-Mail and Promotions
Another powerful, but somewhat controversial source of Internet advertising and
marketing, is the use of e-mail. I'm sure many of you have gotten
unwanted e-mails telling you about amazing new products, suggesting
money-making schemes, or simply clogging up your e-mail inbox with
garbage. This Internet equivalent of junk mail is called "spam" (named
after the famous luncheon meat). Spam is often perceived as an offensive
use of the Internet.
However, there are non-spam ways to use e-mail effectively as a marketing tool. Direct-
marketing companies, such as Make It So (www.makeitsoinc.com), help
you plan and execute "friendly" direct-marketing campaigns on the
Internet. If you have an audience of people that is interested in receiving
information about your company and products on a regular basis (for
example, the audience that would be interested in getting your company
newsletter), companies such as Email Publishing (www.emailpub.com)
can help you with this task. In other words, use e-mail to round out your
electronic marketing efforts by targeting specific groups of prospects.
Finally, many business owners overlook linking the Web to promotions for their
companies. When you run a promotion for your company, such as a two-
for-one special, or a give away of products or services, you can often link
this to your Web site to expand the scope of the promotion. Since the Web
is fast becoming the most widely used interactive medium, it is a great
extension of the non-Internet promotion that you are doing. Companies
like Yoyodyne (www.yoyobiz.com) specialise in bringing promotions to
the Internet. So build a Web site. Advertise it with banner ads. Link
promotions to your electronic home. Use e-mail, albeit judiciously. Once
you've done all this, you will have created something you wouldn't have
known could exist in the distant past of two years ago:
INTERNET- A NECESSITY TODAY!!
We live in the information age, where knowledge is the power. The Internet helps in
three ways:
To get information
To provide information
To compile information
To get information: One can get information about people, products, organizations,
research data, electronic versions of printed media etc from the Internet.
One will be amazed at the amount of information available through the
Internet. To make all of it more easily available to users, programs such as
the Gopher were developed to help present material in some logical
fashion. The most recent and very successful attempt at presenting
information over the Internet is the World Wide Web (WWW).
Providing information: Most of what you want to provide could be considered as global
advertising. The best and most inexpensive way to let people know who
you are, what are you doing/have done, and how. For an organization or
institution, setting up a home page is a good way to let the world know
what its product and services are. The Internet also helps disseminate
information.
Compiling information: This is obviously a special case of getting information. It is
possible to get specialized information from the web. If, for instance, you wanted to pole
the readership for a magazine or conduct a survey to detect the pulse of a selected
community, web provides you an opportunity. Using forms, e-mail, etc., you can conduct
surveys and get opinion of people across the world. There are hundreds of discussion
groups and list servers, where one can post a question and get answered by hundreds of
people who participate in these discussions.
RESEARCH
METHODOLOGY
RESEARCH METHODLOGY
• Research Design
• Data Collection
• Questionnaire
• Sampling Procedure
OBJECTIVE
The objective of research is to find out the market share of different music system player
& to find the perception.
This is in fact management problem. This management problem has to be translated into
research problem. Then the process involves collecting, analyzing and reporting the
information specified in the research problem. Identifying and researching one problem
may lead to the recognition of other problem and to additional research to help in solving
them.
In order to fulfill the objective of the research a set of questionnaire was developed. The
questionnaire was designed in such a way that it could be helpful to solve the research
problem i.e. to find out the market share and to find out the preferences of consumers in
this industry.
• To identify the market, product and make an in depth comparison of the same
on certain parameters, which will be defined in the due course of the proposal.
• Gather useful information and provide a critical analysis through the use of
various techniques.
RESEARCH DESIGN
We carried out the research using a combination of primary and secondary data. Thus we
design our research on a combination basis of
EXPLORATORY RESEARCH
As I was unaware of the market for Internet, exploratory research helped me to gather
information from the secondary resources. I referred to various magazines, internet, and
industry association reports etc. and was able to gather information on the scope of e-
marketing.
DESCRIPTIVE DESIGN
After conducting the exploratory research, for further concrete details regarding scope of
e-marketing I resorted to the Descriptive Design of market research. Under this I have
analyzed the consumer behavior on different parameters. The Descriptive design has
given me a better insight of scope of e-marketing by bringing to the fore many minute
details regarding the consumer preferences. It has further helped I in a careful analysis of
the secondary data and also refining the desired data by making the objective clearer.
I conducted the Descriptive Design using the following methods:
QUALITATIVE METHODS:
1. Focus Groups
QUANTITATIVE METHODS:
1. Surveys
Data Collection
Primary Data: Primary data collected through the questionnaire from the various users &
non-users of Internet
Sampling Procedure
Sampling is a necessary and inseparable part of human affair. I sample the kind of
performance and service we can expect from internet, a wine by a few sips and a
restaurant by a first meal and a new acquaintance by an initial meeting. If all possible
information needed to solve a problem could be collected, there could be no need to
sample, I can rarely do this, however because of limitations on the amount we can afford
to spend, the time we can take or other reasons, we therefore must take sample.
It is sometime possible and practicable to take a census; that is to measure each element
in the group or population of interest.
Survey of industrial consumer or of distributor of consumer products are frequently in the
form of a census. More often than not, however one or more of number of reason make it
impractical or even impossible to take a census. These reasons involve consideration of
cost, time, accuracy and destructive nature of the measurement.
The time of cost we have just considered is an out lay cost. The time involved in
obtaining information of either a census or sample involves the possibility of also
incurring an opportunity cost.
The time of cost we have just considered is an out lay cost. The time involved in.
obtaining information from either a census or sample involves the possibility of also
incurring an opportunity cost.
Accuracy and Census versus Sample
A study using a sample may involve sampling error. Therefore other thing the equal, a
census will provide more accurate data than a sample but it is costly and time consuming.
Steps Description
3. Specify Sampling Unit for sampling which holds the sampling household
elements e.g. city block, household.
4. Specify sampling method The method by which the sampling unit to be selected
is described i.e. probability / non-probability.
7. Select the sample The office and field work necessary for the selection
of the sample are carried out.
To solve my research problem, a census of all the consumer of music system in Delhi &
NCR is taken
SAMPLE SIZE:
• Time constraint
• Resource constraint
• Cost constraint
]
LIMITATIONS
Regional limitations
Sample size
The sample size taken for this market research was 60. But this sample size is too small
to be a true representative for population size. The data collected from this sample size
cannot be generalized for the population.
Target population
The target population for this market group was 18 and above. But while conducting the
research I found that the respondents were maximum in the age category of 18-25, which
limited the boundaries of our research.
Class limitation
The targeted population was in majority from the middle and high income group, which
affected our inferences on the preference on the internet. Thus adding biasness to the
inferences
DATA ANALYSIS
Ques: 1 How would you like to make purchase?
Ques: 2 For how many hours on an average you surf the net in a week?
25
20
frequency
15
Series1
10
5
0
1--5 6--10 11--15 16--20 21--25 26--30 31--35
hours
Ques3. With the falling of Internet prices from Rs 50 to Rs 5 an hour will you
increase the surfing hours?
yes
30%
no
70%
50
Y
40
C
30
E
U
20
Q
E
10
R
F
0 e-mail entertainment information downloading buying things
44 21 47 29 5
purpose
no
90%
8%
8%
84%
50 46
40
percentage
32
28
30 24
18
20 14
8 6
10
0
d
s
ts
s
s
s
ft
e
om
od
et
/c
ok
en
gi
ar
te
k
go
bo
ftw
nd
rm
tic
et
co
ss
ga
so
ni
ca
tro
ec
el
50
frequency
40
30
20
10
yes
44%
0
no 0-10 10--25 >25
44 6 0
56%Series1
percent of the time
Ques:9 Do you feel ads on the net give more insights of product/service than other
media?
Ques:10 Do you receive e-mail from business sites?
no
34%
yes
66%
Ques:11 How often do you respond to it?
yes
7%
no
93%
Ques: 12a Mention the factors which motivate you to make purchase on net?
percentage of the people
60 56 56
52
50
40
30
24
20
10
0
convinience secrecy wide choice saving of time
factors
RESULTS
&
FINDINGS
FINDINGS
1. The idea of buying through Net is catching up slowly. Around 88% of the people
choose Brick and Mortar shop as their first preference for shopping, while it is only
8% for making purchase on the Net. Nevertheless 50% people have purchasing
through Net as their second preference.
2. People at present on an average spend around 9 hours surfing the Net in a week. This
figure is expected to rise to around 16 hours a week with falling Internet access
prices, this is around 77% rise in the Internet access.
3. Of all the products Books and CDs emerge as favorite products to be bought on the
Net with 40% people mandate, seconded by electronic goods and garments with 255
people mandate.
4. Presently 10% of the people use Net for buying things, and among the rest 90% of
people 75% are willing to make purchase through net in the future.
5. Among various uses of net, generally around 90% of the people use Internet for e-
mail/chat and 95% for gathering information where as only 10% of the people use
Net for purchasing.
6. Around 56% of the people think that advertisements on Net don’t give more insights
of products and services than other media.
7. 66% of the people receive mail from business site, out of which 50% don’t reply at all
and the other 80% which reply, does it so only 20% of the time (i.e. reply 1 mail out
of 5 mails).
8. ‘Convenience’, ‘wide range of choices’ and ‘saving of time’ have emerged as the
main factors which motivate people for making a purchase through Net where as
‘security’ and ‘lack of actually feeling the product’ are the main factors which
denominate people from making a purchase.
9. On an average people click only 7% of the time on advertisements.
10. All organizations feel that their presence on Net give them better opportunity to
inform the customer interactively about their product/service and build strong
customer relationship.
11. Around 70% of the sites are one year old, 20% are 1 to 2 years old and 10% more
than 2 years old.
12. Around 10% of the organisations have active e-commerce sight used for transaction,
rest 90% are just for the sake of presence out of which 10% provide the service on-
line but the payment is done off-line.
13. There is almost 60% annual increase in companies coming forward to advertise on
Net.
14. Most of the organisations feel that the environment is highly uncertain but are
confident of exponential growth in terms of business through Net. There is a trend of
80% rise in number of hits every 6 months.
15. Around 0.02% of the total hits materialize into transaction, which is also showing a
rise of 60% annually.
As the organisations don’t have fully activated sites from the perspective of e-commerce
due to technological bottlenecks they measure the efficiency of their sites through
number of hits. Cost per thousand impressions (CPM) is used for this purpose. The
pricing of banner ads are also on the same basis, it is not dependent upon the timing but is
priced according to ‘per thousand page views” which is a flat rate of around 500Rs (i.e.
the host site will receive Rs 500 for every 1000 hits from the organization who is
advertising).
DISCUSSIONS
RECENT TRENDS IN INDIAN MARKET
Information Technology is the fastest growing segment of Indian industry both in terms
of production and exports. In recent times, ‘software development and IT enabled
services’ have emerged as a niche opportunity for India in the global context. The
Government of India is taking all necessary steps to make India, a Global Information
Technology Superpower and a front-runner in the age of Information Revolution. The
Government of India has announced promotion of Information Technology as one of the
five top priorities of the country and constituted a National Task Force on Information
Technology and Software Development.
India's IT industry ranks among the fastest growing sectors within the country's economy.
Driven primarily by software exports, the industry has been logging in extremely
impressive year on year growth. The software industry in fact has been growing well with
a CAGR exceeding 50% over the last five years, and only in the last year, impacted by
the worldwide economic downturn, has the momentum reduced marginally. The
Government of India projects an export of US $ 50 billion by the year 2008 for the Indian
software industry.
India's international-class manpower that creates high quality software and services
solutions is finding favor among overseas customers. The success story being played out
by the IT industry at the global level is also being reflected on Indian soil, with more and
more organizations embracing IT. The Government too is getting IT enabled and using
state-of-the-art technology solutions to bring greater benefits to Indian citizens and
improve its internal efficiencies.
Top 10 tech trends for India
1. Blu-Ray of hope
Remember the 1.44 MB humble floppy? Now we only talk about CDs (can store around
650 MB) and DVDs (anywhere from 4.7 GB to 17 GB). However, with the
announcement of Pioneer's Blu-ray or Blu-disc format, the game is changing.
Blu-ray is the next generation large capacity optical disc video recording format --
enables recording, rewriting and play back of up to 27 gigabytes (GB) of data on a single
side and can transfer date at 36 Mbps (the CD transfers data at around 150 Kbps while
DVDs do the same at around 11 Mbps).
The High Density Digital Versatile Disc (HD-DVD) is also in the news. However, HD-
DVDs can store up to 15 GB on a single layer. While HD-DVD is promoted by Toshiba,
NEC, Sanyo and Microsoft and backed by four major film studios, Blu-ray is backed by
Japanese consumer electronics giant Sony.
At CES 2006, Sony already announced plans for its first high-definition Blu-ray DVD
players and recorders. High-definition technology from Toshiba called HD DVD will
also be available to consumers in March 2006.
Market monitor SMD sees Blu-Ray and HD DVD discs (Moser Baer is already working
on them) really kicking in only from 2007 onwards in India. For now, CDs and DVDs are
here to stay -- at least till 2010.
And as these two formats battle each other, the first holographic storage systems, capable
of storing up to 300 GB on a single disc (over six times more content than Blu-ray and
HD-DVD), will reportedly go on sale towards the end of 2006.
2. Digital ticket
After the convenience of booking cinema tickets online, comes the ease of buying tickets
on your cellphone. And also paying for it through the phone. Bangalore-based Jigharak is
believed to be working on the software application. Not only this, you will be able to
book tickets using your personal digital assistant (PDA) or any hand held.
Vijay Basrur of Inox Leisure says it is kicking-off one such initiative this February, either
in Bangalore or Pune. Shringar Cinemas also has plans to start hawking tickets through
PDAs in the next couple of months at its multiplex in Andheri, says Arshad Kazi,
technology head.
Moreover, with the setting up of self-collection kiosks, buying tickets will become as
simple as withdrawing cash from an ATM. Costing around Rs 1 lakh each, they will be
installed in metros soon. PVR Cinemas has already installed one in Bangalore.
As for the theatre screens, D-Cinema (the high-end of digital cinema is still about five
years away thanks to high costs) 2006 could see some upgrades of E-Cinema.
Currently, around 150 theatres in India are digitised which means that unlike a celluloid
print, there are servers hooked on to projectors that beam the pixels (read picture) onto a
screen. But only two screens of Satyam Cinema in Chennai have real D-Cinema.
Kazi opines that it is a volume game -- at least 800-1,000 screens are needed for cinema
operators to be able to afford the D-Cinema projectors and servers. The price of a D-
Cinema projector is four times that of an E-Cinema projector, which currently costs about
Rs 15-20 lakh (Rs 1.5-2 million).
The global mobile games' business is pegged at $ 2.2 billion, with India accounting for
around $100 million of the overall pie. Nasscom states this market could well touch $500
million in exports alone by 2010.
And thanks to the next generation of cell phones with enhanced graphical, sound and data
capabilities, mobile gaming is poised as the next big thing for the Indian gaming scenario.
However, a console/PC genre, awaiting its day, in India is the massively multimedia
online role playing game (MMORPG). Indeed, even the introduction of MMORPGs in
the mobile market should bring in a whole new audience.
Due to the stratified nature of online gamers, there is little crossover between those who
play first-person shooter (FPS) games and those who play MMORPGs, states a recent
Juniper report.
While versions of these games are currently available on mobiles -- EverQuest, for
example, which was introduced on the BREW platform in 2003 -- they do not permit
multiplayer play. Juniper expects subscriptions to be the key source of revenues for such
games.
In the console/PC market, MMORPGs such as Dark Age of Camelot, EverQuest and Star
Wars Galaxies typically retail at around $40 with monthly subscription costs of nearly
$15 per month. So, as the MMORPG community increases, gaming revenue should
increase.
4. Movies on Demand
With Tata Sky planning to launch Direct to Home (DTH) services in May-June this year,
consumers will have much more choice. Not to mention better picture and sound quality,
thanks to set-top boxes.
Vikram Kaushik, CEO, Tata Sky, says his company will leverage the expertise of BSkyB
and Foxtel and customise the programmes to suit local needs.
Gaming channels too are likely to become a reality. We should also see the launch of
digital video recorders this year which can record 100 hours of programing, says Sunil
Khanna, CEO, Dish TV. So you can always record your favourite programmes -- six
channels at a time -- and watch them at your leisure.
Last month, DishTV kicked-off with a Movie-on-Demand Service for Hindi films and
this will be followed up with a service for English films in March. India might also see
High Definition TV (HDTV) before 2006 is over. Khanna notes that HD-compatible
television sets are already here but broadcasters need to get their act together.
Are customers biting? Yes, the momentum's been building up in the last six months or so
say broadcasters. Khanna believes that by March 7, Dish TV would have 2.5 milion
subscribers. A set top box which earlier cost Rs 6,000 now comes for Rs 4,000. And
subscriptions are affordable, starting from Rs 60 and going upto Rs 300.
And do you want to replay Sachin's square cut repeatedly? Thanks to interactive TV, this
too will be possible in 2006.
While Internet Protocol telephony is known in India -- many of us having used it on the
sly for the last four years -- what is little known is that Indian enterprises have bought
over 100,000 IP phones in the last couple of years.
IP phones transmit voice using data packets (similar to the way the Internet routes data)
instead of circuit-switched (the way your vanilla telephone operates) connections over
voice-only networks. Since the calls are routed through the Net (these phones have an
ethernet phone in which your phone (copper) cable can be inserted), all the user pays for
is the IP phone software and the Internet connection.
While it took Cisco three years to sell its first million IP phone, it took just four months
to sell the sixth million (total global sales till date). In a few year's time, one out of two
phones in India could be an IP phone, opines Ranajoy Punja, VP (Marketing), Cisco.
Frost & Sullivan estimates the Indian IP telephony market in India to be around $ 54
million.
IP phone prices have, on an average, dropped from $800-$900 four years ago to around
$100 today. The voice quality too has improved. However, since the IP phone uses the
Internet route, there are concerns over security, though companies are taking care to
ensure that the network is adequately protected and all messages are scrambled. IP
phones (unlike the vanilla phones) can be customised. And this trend is expected to catch
on further in 2006.
Aibo has a cult following in the United States and Japan. Of course, American AIBO
buyers tend to be computer geeks who want to hack the robotic dog's programming.
Japanese consumers, on the other hand, treat this Sony robot as a pet.
Robots in the US have already taken over domestic tasks like lawn-mowing, vacuum
cleaning (the Roomba by iRobot) and window cleaning. iRobot says it has sold hundreds
of thousands of units of the Roomba -- a self-guided, self-propelled vacuum cleaner that
sells for around $200 -- in just one year.
A United Nations report on Robotics expects the sales of such robots to reach 4.5 million
units with an estimated value of $3 billion. The market for entertainment and leisure
robots, including toy robots, is tipped to touch 2.5 million units. The sales value is
estimated at over $4.4 billion. With labour cheap in India, will domestic robots become
popular? Not likely in the coming years. However, robots have other uses in our country.
Many Indian auto, auto-ancillary majors and machine tool players are using robots to
meet global precision standards. Robots have also been used in cardiac surgeries. And
now a Pune-based urologist has taken the lead for using this technique to treat prostate
cancer and other urological disorders, like opening up narrow fallopian tubes in women.
A Kolhapur-based general surgeon, Suresh Deshpande, along with a young IT engineer,
Vikrant Yadav, has also developed a laparoscopic robotic arm fitted with a camera to
perform orthopaedic surgeries.
7. Tag on to RFID
Radio Frequency Identification (RFID) technology is no longer only about the US and
Wal-Mart. Pune University's Jayakar library uses RFID tags on its books as well as
library cards; the Chitale Dairy at Bhiwladi in Maharashtra's Sangli district has installed
RFID to monitor the feeding patterns of cattle and bisons; Pantaloon Retail India and
Shopper's Stop have RFID tags in their factories; more than 45 colleges in Pune have
introduced student identity RFID cards that allow students access to hostels and monitor
their classroom attendance; and ITC uses RFID to track what goes into the manufacturing
of its cigarettes.
These are but a few cases in point. Indian suppliers to retail majors such as Wal-Mart,
Metro, Target and Tesco have already been issued directives to replace barcodes with
RFID tags.
While this may lower margins of these suppliers, it will unwittingly create a demand for
RFID tags in India. The estimated market size of this industry in India is anywher
between Rs 125-150 crore (Rs 1.25-1.50 billion) and is said to be growing at 30 per cent
per annum.
The current cost of tags is anywhere from Rs 5 to Rs 30, considered to be prohibitive
when tagging hundreds of products. The rates are bound to decrease this year. Worldwide
RFID spending is expected to surpass $3 billion in 2010, predicts Gartner. A Research
and Markets report pegs the figure at $6 billion by 2010.
RFID is not a bar code replacement, note analysts. While bar codes are better at
collecting data in structured places like warehouses (likely to continue for the next five to
seven years), RFID tags are expected to be used for data collection in largely chaotic or
unstructured business processes like retail environments to hospitals.
The recently-introduced Tata Novus range of commercial vehicles feature the 'TRAK i t'
Vehicle Locater -- a GPS system for vehicle tracking; 'TRAK i t' Vehicle Data Recorder
-- for critical vehicle and driver performance recording; and electrical systems that ensure
'vehicle start' in neutral gear, as an enhanced safety feature.
Our cars too are becoming smarter. For instance, the REVA-NXG introduced this April
as a "concept car" in Monaco, was fitted with a `wireless tablet' -- an embedded computer
based on Mobilius having a touch screen display which shows all essential information
about the car like speed and mileage. It also doubles up as a GPS navigation system.
Internet is accessible via GPRS. It also has a MP3 player.
Vehicle telematics systems are also increasingly being used to provide remote
diagnostics; a vehicle's in-built systems will identify a mechanical or electronic problem,
and the telematics package will automatically make this information known to the vehicle
manufacturer and service organisation. Other forthcoming applications include on-
demand navigation, audio and audio-visual entertainment content.
If you have an iPod, you would know what podcasting is. For the uninitiated, imagine a
desktop aggregator where you subscribe to a set of feeds. Podcasting works similarly,
except that instead of reading, you listen to the content on an iPod. Juice was the first
major podcasting software (downloads podcast media file like oggs/MP3) and is still the
most popular podcast aggregator.
With smartphones getting cheaper by the day and 3G networks becoming commonplace
(well at least in developed nations), 2006 will see the growth in 'mobilecasting', predict
tech pundits. All we need now is empower people with video phones, 3G mobile
telephony, and a Flickr-like tool to upload audio and video to RSS-enabled websites. This
is not mobile blogging or podcasting now -- we're talking about a social revolution and
that's mobcasting. Mobilecast (a software to convert podcasts to Adaptive Multi Rate
(AMR) converter for mobile phones) and mobilecasting have become the 'One' when it
comes to downloading and listening to podcasts on mobile phones. All you need to do is
install and configure Mobilecast on the iPod. Thereon, it will be run after each podcast
downloads, splitting the podcast into segments of 10-minute AMR audio files for the
mobile phone. Podcasters have now begun brainstorming on how to create podcasts
specifically for mobile phones.
WIMAX covers wider metropolitan or rural areas. It is meant to solve the last-mile
problem. In India, where the telecom infrastructure is poor and last-mile connections are
typically through copper cable, Digital Subscriber Line (DSL) and fibre optic, installation
costs are high as it requires ripping up streets to lay cables. The ability to provide these
connections wirelessly, without laying wire or cable in the ground, greatly lowers the cost
of providing these services.
Intel and BSNL have already introduced Hot Spots (wherein you can connect your Wi Fi-
enabled (or Centrino) laptop to wireless network and logon to the Net instantly). Satyam
Infoway is on the way to adopt WIMAX. Intel (which also plans to introduce a WiMAX
computer chip) is said to be working with Reliance on a pre-standard WIMAX pilot
project. It is also reportedly working with Bharti and Navini Networks, and is in talks
with BSNL for similar pilot projects.
Meanwhile, the Indian government is expected to introduce 3G by 2006. Intel and BSNL
have already introduced Hot Spots (wherein you can connect your Wi Fi-enabled (or
Centrino) laptop to wireless network and logon to the Net instantly). 3G will help in
enhancing India's competitiveness in the ITES / BPO segment.
All this will entail an increase in India's optical fiber network which currently stands at
670,000 km (all providers including BSNL).
Thus, E-Commerce is not just a western version. The most talked about and now well-
endorsed feature of E-Commerce is its global flavor. Evidently, the E-
Commerce has also started to show its true potential in India. While on
one hand, India’s E-Commerce solutions are becoming a sought after
commodity around the world; even the E-Commerce based businesses are
leaving their distinct marks of technology competitiveness, viable business
model and entrepreneurship.
31-Mar-04 2.5 8
31-Mar-05 4.5 15
31-Mar-06 10 32
31-Dec-06 15 50
THE INDIAN DOT COM SCENERIO
Boom or Bust!
To do dot com or not to dot com, that is the question?
India is certainly in the mist of a dot com revolution. Most businesses today are entering
or at least planning to enter into internet domain, enabling themselves, and strategizing
on how they can use the internet to conduct business.
The proliferation of Internet across the country:
According to recent studies conducted by leading industry bodies, Internet penetration in
India has jumped substantially over the past two years. In fact the NASSCOM, study E-
commerce and Internet marketing in India will touch Rs. 15000 crore by 2006-07 of these
while Rs 13200 will be accounted for B2B and B2C transactions.
The sky then, certainly is the limit for Indian dot coms.
• The Capital Cities (New Delhi and Other State Capital) accounts for 79% of
Internet Connections of the Country.
• More than 86% of top Corporate Houses have endorsed that Internet and E-
Commerce is an integral part of their corporate strategic framework.
• Over 76 % of the Internet Users use E-mail Services
• Over 61% of the Users Access Internet from school, colleges, place of work and
Cyber Cafes while 27% access Internet from homes.
• Among the career conscious and education driven middle class, Internet is seen as
critical to success in professional life.
• There are approx 59 million telephone connections (including Mobile) and 8.5
million PC base in India.
• There are approx. 47 million Cable T V Connections out of 92 million TV Sets in
the Country.
• Encourage cost effective wireless access systems for Internet Access by de-
licensing of 2.4 GHz (ISM) band for low power, short range outdoor W-LAN
applications and last mile Internet Access.
• Reductions in Customs Duties on Access Devices, Set Top Boxes and other
important equipment used in ISP network and not manufactured in India. The
availability and pricing of PCs should be at par with TVs.
• Facilitate direct access by ISPs to the bottleneck facilities for access to
International Sub-marine cable systems.
• Proliferation of effective computer based education at the School and University
level, particularly in small towns and non-metros
• Policies and plans should be formulated and implemented for e-Governance
applications providing citizen services through Internet by suitable
standardization and with an objective of increasing efficiency and improving
citizen care.
• Increase the tele-density particularly in remote / under-developed and rural areas.
• Encourage setting up of Cyber Café / Internet Dhabas in rural and remote areas by
offering Infrastructural facilities at subsidized cost and encouraging provision of
soft loans facilities to such entrepreneurs.
• Receive Only Satellite system by ISPs should be permitted without the
requirement of licensing and clearances from the government agencies, including
SACFA, except for the mandatory security clearance.
• Simplifications of administrative procedures and regulations particularly for
provisioning of RF Links.
• Tax incentives to businessmen / consumers for using Online Services and institute
measures to reduce E-transaction cost.
The govt helping hand first became visible when the ISP was announced. The policy
liberalized the internet service environment. The monopoly of the VSNL was finally
shattered as the other ISP policy emerged.
Further boost had been to the ISP market by the decision of the govt. to allow private ISP
(internet service provider) to set up their own internet gateways. This step is expected to
further push the dot coms cause in India. Over the past years in particular, the arrival of
significant names in the business such as mantra online, rediff.com, dish net, and satyam
online have virtually revolutionized the Internet business in India.
Yet another area where the govt has been playing Santa Claus is the “bandwidth”
segment, where we are likely to see significant improvements over the next few years,
while currently India is going through a bandwidth crunch, a number of initiative are
underway which will ease the situation subsequently.
The Prime Minister Mr. Manmohan Singh has announced a range of concessions for
improving and strengthening India’s telecom infrastructure. For the bandwidth they had
decided to go for satellite gateways. So India is going slowly on the boom world but it
will take couple of years for picking up as the infrastructure is picking up
SUMMARY
&
CONCLUSION
EXECUTIVE SUMMARY
The Internet is growing at a rate of almost 50-100% per year; in India also this growth is
mirrored. From being a medium for exchange of information and
communication between the scientific research workers, it has opened a
vast vista of entertainment and information (edutainment) for millions of
people on the Internet (netizens). The Internet in the form of World Wide
Web has opened the doors to a new technology in the communication
media, which is even now relatively untapped for business purposes (all
over the world and more so ever in India).
In the present work an effort is made to access the potential of Internet Marketing in India
in consonance with the various environmental factors. Various techniques
that can help the marketers to boost their business by harvesting the power
of the Internet are explored.
At the same time the study also focus on the various players involved in providing
Internet service, their tariff structure, their infrastructure etc. the study also
includes the growth of Internet in India, the features attracting most of the
companies to be on the net and the present usage pattern in India. Besides the
advantages of marketing on the Internet, the study also focuses on how Internet
can hinder marketers and what are the rules that should be adopted for effective
marketing on the net. It also covers the Indian dot coms scenario
CONCLUSION
The Internet has been developing at an exponential pace over the past 4-5 years. It’s
difficult to estimate the number of users connected to the ‘Net’, but there are figures that
suggest an audience of over 75 million users. Since the technology is so fast, it is difficult
to predict where it will go.
At the moment, you need a computer to connect to the Internet. Network computers were
hailed as the new way of accessing the Internet. These have not taken off as predicted.
Instead the next development is from television manufacturers who are providing new
TV sets that can access the Internet and allow the viewer to browse the web or send e-
mails. Internet service on Cellular (Mobile) phone will also increase its popularity.
For ultimate portability, several companies are working on ways to include e-mail
displays on public phone kiosks that will let anyone connect to their mailbox and read or
send messages across the Internet. In similar move, many communication companies
have been working on a network of satellites in orbit around the world that will allow you
to carry a personal digital assistant (PDA) in your pocket and receive e-mail messages
anywhere in the world such as PDA by Nokia
Beside these technological changes there is a tremendous shift in the inclination of the
public towards Internet. More and more people are willing to use it for varying purposes.
It has started taking shape conducive to business requirements. To start with, it was
unregulated and unruly. Now, slowly, the larger software companies are bringing
business features and securities to the Internet so that business can work securely on it
and trust it as an efficient business tool.
ANNEXURE
QUESTIONNAIRE
11. How often do you respond to it? Please mention the percentage. ______
12. Please mention what factors motivate you or stop you from making purchase on net.
a) Motivate you:
i. Convenience
ii. Secrecy
iii. Wide range of choices
iv. Saving of time
v. Any other (specify) _________________________
b) Stop you:
i. Security
ii. Late delivery
iii. Wrong delivery
iv. Lack of actually feeling the product
v. Any other (specify) _________________________
Name: __________________________________
Age: ___________________________________
Sex: ___________________________________
Qualification: ___________________________
Occupation: _____________________________
Address: _______________________________
Email: ________________________________
Thanks for sparing your valuable time for filling of our questionnaire.
INTERNET GLOSSARY
ACCESS METHOD: The rules that manage how all the computers and other devices on
a network can send information through the same physical medium in an orderly fashion.
ACCESS PROVIDER: A company providing a computer system that connects your
computer to the Internet.
ACCOUNT: You are said to have an account on a host computer, or with an on-fine
information system, when you have registered with its administrators to use the system.
There are usually restrictions on who can register, and registration may involve a fee.
When you get an account you are issued a user name (user-id) and a password that you
see to log into the system. Some guest or anonymous accounts, set up for public access
to some Internet computers, do not require prior registration, but limit access to a few file
directories and allowed commands.
ADDRESS: Network addresses are usually of two types: (i) The physical or Hardware
address of a network interface card for ETHERNET. The hardware address is used to
forward PACKETS within a physical network, fortunately, network users do not have to
be concerned about hardware addresses since they are automatically handled by the
networking software. (2) The logical or INTERNET address is used to facilitate moving
data between physical networks. Each host computer on the INTERNET has a unique
address.
ADDRESSING: A scheme determined by network protocols for identifying the sending
device and destination device for any given items of information travelling on a network.
BROWSER: A program that allows a person to read hypertext. The browser gives some
means of viewing the contents of nodes, and of navigating from one node to another.
CLIENT: A program, which requests services of another program. Normally the
browser is a client of a data sewer.
COM: The highest level Internet domain name used to identify commercial services.
CYBERSPACE: The sensation of place without location or space experienced while
using global computer networks. The term was popularized by Wffiiam Gibson in his
novel Neuromancer.
DATAGRAM: Using the TCP/IP suite of protocols, a datagrarm is a self contained
packet of information consisting of the data and a header, which tells where it came from,
where it is going, what kind of data it contains, and its relation to any other datagram
being sent.
DIAL-UP: Temporary connection between computers by a telephone link, usually with a
modem. Unlike dedicated connections, dial-up connections are established only for
duration of the session.
DIRECTORY SERVICE: A service which provides network addresses or user-id's of
individuals, hosts and services.
DISCUSSION GROUIP: An ongoing exchange of messages about a topic. Listsevre
provides one mechanism for organisation of discussion groups as mailing lists. Usenet
news groups are another example, using a different format and protocol.
DOMAIN: The Internet naming scheme which consists of a hierarchical sequence of
names, from the most specific to the most general (left to right), separated by dots, for
example, nic.ddr.mil. Most often used to refer to the highest level domain such as,
edu.com.net.gov. Technically each part of a name is a domain.
DNS (Domain Name System): A protocol and a distributed system of databases and
server programs (name serves), that translates human readable names into numeric IP
addresses. No single DNS name server contains information for all Internet hosts, but by
accessing a hierarchy of name servers, a local DNS program can resolve a name and
route -communication to an intended computer.
DOWNLOAD OR DOWN LOADING: The transfer of flies to your local computer
from another, often large computer, using communications software and a modem.
ELECTRONIC BULLETIN BOARD: A shared file where users can enter information
for other users to read or download. Many bulletin boards are set up according to general
topics and are, accessible throughout a network.
E-MAIL (Electronic Mail): A network service that enables users to send and receive
messages via computer.
FILE SERVER: A computer that stores files and proN4des network access to those
files.
FILE TRANSFER: Copying of a file from one computer to another over a computer
network or phone connection.
FTP (FileTransfer Protocol): The Internet standard high level protocol for transferring
files from one computer to another.
GIF (Graphical Interchange Format): A computer bitmap graphics format originally
developed by CompuServe, but now widely used across the Internet and elsewhere. GIF
provides highly compressed information in comparison to other bitmap graphics format.
GOPIHER: Gopher is a protocol and programs for a menu driven document derive
system that connects you to resources and sites an over the world. Gopher mend options
can point to other gophers, telnet sites, text files, utilities, and other menus. They can
also launch a search to do things, such as look up the definition of a word, or find where a
word occurs in a document. The beauty of gopher is that it formats all information in the
same menu structure. You can easily track down items of interest where they may be in
the world.
HOST COMPUTER: In the context of networks, a computer that directly provides
service to a user. In contrast to a network server, which provides services to a user
through an intermediary host computer.
HOST NAME: The portion of the fully qualified domain name that refers to a specific
host computer. For example, in "fibrary.nwu.edu", "library" is the host name within the
"nwu.edu" domain.
HTML (Hypertext Mark-up Language): Hypertext document format used by the
World Wide Web. Built on top of SGML, 'tags' are embedded in the text so that a certain
place within an document can be specified. HTML supports some national characters
through special escape sequences.
HTTP (Hypertext Text Transfer Protocol): A public domain application layer protocol
which uses TCP to transfer text over the Internet and is used for the design of information
systems using Hypertext links, (Hyperlinks) connections are usually made via the telnet
command with a specific Internet port (socket) being identified. The World Wide Web
uses an HTTP like system for creating its links.
HYPERTEXT: Text that is not constrained to be linear.
IP (Internet Protocol): Though the Internet is considered a "multi protocol" network.,
the Internet protocol remains the protocol of choice. The EP is a packet switching
protocol that provides a common layer over dissimilar connections network. The IP
defines a general set of rues for formatting and routing packets across the various
networks on the Internet.
INTERNET: The largest world-wide system of interconnected computer networks,
capable of the exchange of messages and offering seamless connectivity or service, such
as, remote login and file transfer. Today, the Internet is mainly composed of local and
wide area networked that use the TCP/IP suite of protocols for computer-to-computer
communication; its technical standards are, defined by an international co-operative
committee known as the Internet Activities Bureau and the IAB's Internet Engineering
Task Force. (Other computer networks, which can exchange messages with computers on
the Internet but which cannot connect for services, such as file transfer and remote login
can be considered part of an even larger network, sometimes referred to as the Matrix.
ISDN (Integrated Services Digital Network): An emerging digital telephone
technology. ISDN combine voice and digital services in a single fine ISDN standards are
specified by CCITT.
ISO (International Organisation for Standardization): The organisation responsible
for creating the ISO/OSI protocol that may eventually replace the current Internet
protocols. The ISO members are the national standards organisations of the 89 member
countries, including ANSI for the United States.
MAILING LIST: A List of email addresses for a group of people all interested in a
particular topic. Mailing lists are used by a mail exploder to forward one message to all
people on the list. Lists may be, moderated. The moderator maintains the list and
decides which messages to explode. In many cases, you can subscribe to or leave a
mailing fist by sending a message to the lists "request" address.
MODEM: Short for modulator/demodulator a peripheral device that links your computer
to other computers and information services using the telephone lines.
MOSAIC: A popular web client developed by the National Centre for Supercomputing
Applications (NCSA) at the University of Illinois at Champaign-Urbana for using
Internet information available through the World Wide Web.
PROTOCOLS: A specification that describes the rules and procedures by which
computers can communicate. Most Net tools are named after the protocols they use.
ROUTER: A hardware device connected to a host on a LAN that acts as a gateway
between different types of networks. For example, a router connects an Ethernet-based
network to die TCP/lP based net. Data traffic routes from individual computers to the
route, and then through the telecommunications line to the service provider's computer.
RTF (RICH TEXT FORMAT): A text file format that includes such formatting, as bold
italic, and underlines text.
SERVER: A computer, also called a host that can distribute services or resources to
users at remote computers - that is, clients. A server is the combination of hardware and
software that provides access to information that is requested by client computers.
SERVICE PROVIDER: An organisation that provides connections to the Net.
SGML (Standard Generalized Mark-up Language): A set of formatting codes for
creating documents. These codes define the components of Documents such as headers,
tables, and so on. HTML is a subset of SGML.
SMTP (Simple Mail Transfer Protocol): system that allows servers to exchange
electronic mail messages in transit from the sender to the recipient.
TCP/IP (Transmission Control Protocol / Internet Protocol): A set of
communications protocols developed by the US Department of Defence (DOD),
originally for use in military applications. TCP/IP bundles and unbundles, sent and
received data into packets, manages packet transmission and checks for errors across
networks.
TELNET : System that lets you connect to any computer on the Internet (that allows
Telnet) and type in commands as if you were sitting in front of the computer. In practice.
Telnet is normally used when you are setting up your web site to create directories, set up
security and move files.
URL ( Uniform Resource Locator) : The full address that defines where a Web page is
stored on a server connected to the Internet.
USENET : The most popular collection of newsgroups.
WEB BROWSER : Software that lets you view Web pages stored on the Internet or on
your computer.
WEB PAGE : Single file stored on a Web server that contains formatted text, graphics
and hyper-text links to other pages on the Internet. A Web page is created using HTML
codes.
WEB SITE : Collection of Web pages from one person or company that link together
with hypertext links to form a home that user can visit on the Internet.
WWW (World Wide Web): The collection of the millions of Web sites and Web pages
that together form the Web of information that allows a user to see a graphical view of
the Internet and the information it contains.
BIBLIOGRAPHY
Websites:
• Eshoppers.biz
• A &M.com
• Webpromotions.com
• Rediff.com
• Yahoo.com
• Cnet.com
• Ebusness.com
• Lycos.com
• Microsoft.com
• I2technologies.com
• Ways.com
• Indiainfoline.com
Magazines:
• Business world
• Computers today
• A& M.
• Data Quest, March 31 2004
• PC Quest
• PC Magazine
• A&M
• Internet News
Economic Times
• Business World
• Cyber Rules
• Business On The Internet