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SUBMITTED BY
Sapna Arora
Roll No. : FC12165
SUBMITTED TO
Mrs Deepika Saxena
Associate Processor
ACKNOWLEDGEMENT
I would like to express my deepest appreciation to all those who provided me the possibility to
complete this report. I have taken efforts in this project. However, it would not have been
possible without the kind support and help of many individuals and organizations. I would like to
extend my sincere thanks to all of them.
First and foremost, I would like to thank to our Faculty mentor of this project, Mrs Deepika
Saxena, Associate Professor, JIMS for the valuable guidance and advice. She inspired us
greatly to work on this project. Her willingness to motivate, contributed tremendously to the
project.
This project is an attempt to study Marketing via Mobile Appvertisement
-------------------------Sapna Arora
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DECLARATION
I hereby declare that the project work entitled Marketing via Mobile Appvertisement
submitted to Jims Institute of Management and Studies as a part of the PGDM curriculum, is a
record of an original work done by me under the guidance of Associate Prof, Mrs. Deepika
Saxena (Faculty Guide, JIMS) and this project work is submitted in fulfillment of requirement
for the award of the PGDM. The results embodied in this project have not been submitted to any
other university or company for the award of any degree or diploma.
Sapna Arora
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PREFACE
A technologist said, THE THEORETICAL KNOWLEDGE REINFORCED WITH THE
PRACTICAL WORK MAKES AN MBA PERFECT IN HIS FIELD.
And hence, going by this quote, we have prepared this project which has proved to be of a
specialized nature. During the tenure of this project, we could understand the practical aspect of
the subject matter which till now we could read only in the relevant books. We are confident that
the findings from this project would prove to be very helpful and prove to be an asset.
In the following project we have tried to use our academic knowledge on marketing research into
practical use. We have tried to research on Marketing via Mobile Appvertisement
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CONTENTS
S.No.
Chapter
Page No.
Abstract
Literature Review
Introduction
10
13
Research Methodology
17
21
28
31
33
10
37
11
38
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ABSTRACT
Smartphone and Tablet revolution is taking place across all generations, geographical regions,
cultures and age groups. It has become the most personal device with communication media that
a consumer carries and hence marketers cannot ignore developing their brand presence via these
devices. Mobile devices provide opportunity to marketers to reach their consumers when they are
on the go and away from the other media. Mobile Apps are the latest trends that are sitting in
these mobile devices and providing key differentiators on top of traditional media in terms of
Mobile marketing via SMS, Mobile Banner Ads and Mobile web provides one way
communication channel and mostly deployed by marketers as part of outbound marketing. But,
mobile apps enable engagement using bi-directional channel of inbound marketing. Its the brand
merchandise for the mobile generation, reminding you that the brand is there with you, and for
you. Several categories of mobile apps such as gaming, social networking, travel, productivity,
communication are emerging and hence providing opportunities to several businesses to connect
to their consumers / customers.
There are many successful branding stories that have emerged because of mobile apps and
marketers need to develop an effective strategy to integrate this new media with their overall
brand experience. Mobile App based marketing is not only popular in B2C segment, but also in
B2B segment where brands are now enhancing the experience of business users by providing
various utility based apps such as access to secure business content.
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Developing an app that is enriching, engaging, interactive, value adding and personalized holds
the key to grab a piece in todays popular real estate called consumers mobile device for
marketers.
So we have to consider an application which will provide marketers with a new form of brand
building and engagement that is measurable and highly effective marketing via mobile apps.
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Review of Literature
Mobile Advertising 2020 Vision by Ogilvy and Acision
Mobile advertising in 2020 will be mobile directed advertising which is selected and chosen by
the individuals themselves. Individuals and not consumers; consumers remain a group or type of
person which conforms to a pre-defined segment by the brands. Individuals, on the other hand,
are fully independent, they may let you know them or part of them but they will never let a brand
own them.
It is the individual who will be the pivotal player in the mobile advertising domain of the future
and the mobile device will be a technological representation of them. The mobile phone will
transform from being seen as a new personalized channel to receive advertisements on; to a
device which will orchestrate where, when and how selected advertisers information will be
delivered.
Implications for Marketers:
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Customer Acquisition
It continues to be the primary goal for existing & new marketing initiatives over the last two
years
Social media
Social Media initiatives are gaining momentum and email continues to be the most effective
marketing channel. Social Media (68.8%) and Email marketing (53.1%) emerged as top 2 online
marketing initiatives that will see an increase in marketing investments in 2012.
No Spam
A majority of Indian marketers (36%) wanted a code of conduct by an industry body like
IAMAI, while 31.5% of the participants believe stronger anti-spam laws in like CAN-SPAM
would help curb the spamming campaigns.
Mobile Applications/Games:
This from of mobile marketing involves have your ads inside of a mobile application/game.
Mobile Apps are little software programs you download from an app store connected with your
mobile devices operating platform. Theres the App store from Apple for iPhones, and similar
ones for Droid and Blackberry-based mobile devices. Apps (short for applications) can be
anything from games such as Words with Friends to specialized information and entertainment
experiences like the one from ABC News. Some are free while others have a cost associated with
them.
For businesses, building an application might be a smart way to reach consumers in a compelling
way. Whether its delivering company news, coupons or specials or engaging customers around
your business in some fashion (quizzes, polls, games, etc.), you can be an ever-present icon on a
customers mobile desktop, increasing the chances theyll remember you when theyre ready to
buy.
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INTRODUCTION
Mobile Apps is one of the latest trends using which marketers are trying to promote their brand
presence. This report will begin by outlining the brief overview of the mobile devices market
(smart phones and tablets) and growth success achieved by mobile applications (also called apps)
in these devices. We will discuss various advantages offered to marketers via mobile apps as
compared to traditional media. Further, we will present the example of mobile apps in B2C and
B2B segment deployed for increasing brand awareness and presence. We will also highlight the
best practices towards mobile app based marketing.
Mobile Marketing
Mobile Marketing is a set of practices that enables organizations to communicate and engage
with their audience in an interactive and relevant manner through any mobile device or network1.
Mobile marketing can be done using various channels such as
Via SMS:
Marketing through cellphones' SMS (Short Message Service) became increasingly
popular in the early 2000s in Europe and some parts of Asia when businesses started to
collect mobile phone numbers and send off wanted (or unwanted) content. On average,
SMS messages are read within four minutes, making them highly convertible.
Over the past few years SMS marketing has become a legitimate advertising channel in
some parts of the world. This is because unlike email over the public internet, the carriers
who police their own networks have set guidelines and best practices for the mobile
media industry (including mobile advertising).
The IAB (Interactive Advertising Bureau) and the Mobile Marketing Association, as
well, have established guidelines and are evangelizing the use of the mobile channel for
marketers. While this has been fruitful in developed regions such as North America,
Western Europe and some other countries, mobile SPAM messages (SMS sent to mobile
subscribers without a legitimate and explicit opt-in by the subscriber) remain an issue in
many other parts or the world, partly due to the carriers selling their member databases to
third parties. In India, however, government's efforts of creating National Do Not Call
Registry have helped cellphone users to stop SMS advertisements by sending a simple
SMS or calling 1909.
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Via MMS:
MMS mobile marketing can contain a timed slideshow of images, text, audio and video.
This mobile content is delivered via MMS (Multimedia Message Service). Nearly all new
phones produced with a color screen are capable of sending and receiving standard MMS
message. Brands are able to both send (mobile terminated) and receive (mobile
originated) rich content through MMS A2P (application-to-person) mobile networks to
mobile subscribers. In some networks, brands are also able to sponsor messages that are
sent P2P (person-to-person).
Good examples of mobile-originated MMS marketing campaigns are Motorolas ongoing
campaigns at House of Blues venues, where the brand allows the consumer to send their
mobile photos to the LED board in real-time as well as blog their images online.
Advertising on web pages specifically meant for access by mobile devices is also an
option. The Mobile Marketing Association provides a set of guidelines and standards that
give the recommended format of ads, presentation, and metrics used in reporting. Google,
Yahoo, and other major mobile content providers have been selling advertising placement
on their properties for years already as of the time of this writing. Advertising networks
focused on mobile properties, SMS resellers and advertisers are also available.
Additionally, web forms on web page can be used to integrate with mobile
To get reminders about meetings, seminars and other important events that assume users
are not always at their computers. In addition Mobile websites are another aspect of
mobile web marketing and can be a tool than can used to help make purchasing goods
and services easier as well as create better communication opportunities between trades.
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Though some of the above channels have been in use by marketers for some time, the latest
channel of marketing is via Mobile Apps which will be the focus of this report.
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Fig 2: Comparison of PC vs Mobile Devices global unit shipment growth from 2005 to 2013
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Growth of smart phones and tablets has created the new market of mobile applications. In 2009,
total numbers of app downloads were 7 billion and it is expected that by end of 2012 the number
of apps download will increase to 50 billion4. Figure 3 shows that global mobile apps download
are showing growth close to 62% CAGR.
Mobile apps have evolved to a stage where it provides rich and fast user experience. This
channel is quite engaging for consumers as compared to traditional marketing via SMS. Various
categories of mobile apps are coming and gaining popularity day by day. Consumers are using
these apps for connectivity, entertainment, information access and productivity. Apps are being
used for purposes such as organize day to day financials, create a shopping list, count calories,
and, play games. One survey indicates that on average each iPhone user downloaded 88 apps and
spent 84 minutes per day5.
4
5
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One of the most popular categories of mobile apps is Games. 65% of smart phone owners
indicated using a game app in the past 30 days.
While all categories of applications are more popular on smart phones than on feature phones,
the difference is more pronounced in categories such as Maps/Navigation, where more
computing power, larger screens and touch interfaces deliver a more satisfying experience.
Hence, indicating that as the computing power of these devices further increase, varying trends
of popular categories of apps may emerge.
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Research Methodology
Objectives:
1. To identify opportunities for advertising through Mobile Marketing Apps.
2. To study profiles of mobile solution providers along with their business categories,
solutions and supported mobile platforms in order to identify mobile marketing
opportunities
3. To establish the hypothesis by identifying opportunities and trends of mobile marketing
Apps.
Formulation of Hypothesis:
Hypothesis is a tentative theory or supposition provisionally adopted to explain certain facts and
guide the investigation of others. It is a tentative and declarative statement formulated to be
tested describing relationship between concepts. Hypothesis is a statement of predicated
outcomes of the research. A hypothesis is proposition which the researcher wants to verify.
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Research Hypothesis:
With new trend of more and more users switching to smart phones across the world, there
is larger audience for marketing on mobile in general.
Mobile Marketing adoption in every industry is quite likely because of the online
presence of most of business and growing buzz of Ecommerce.
Research Design
The research is both exploratory and descriptive in nature.
Scope of Study:
This research would help marketers to explore more of this medium called Mobile.
Strategies to build an effective mobile app.
New ways to promote your brand by giving an engaging experience to customers.
Data: Primary and Secondary
Tool: Questionnaire, MS Excel, MS Word, BB App world and websites.
Research Limitation
Research and analysis were based only on the secondary data available from the internet
so any error in the data gathering by the original source may generate inaccurate results.
Research is conducted by considering the urban India as the presence of smart phones is
high in urban India as compared to rural India.
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Findings:
Smartphone User
90
80
70
60
50
Smartphone User
40
30
20
10
0
Yes
No
The above graph shows that mostly people own a smartphone hence more exposed to Apps.
This graph shows that more than 80% of the sample surveyed has once in a lifetime visited Apps.
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20
10
0
Everyday
Weekly
Monthly
Never
Mostly people visit and seethe apps coming in their mobile phones.
The above graph shows that games indulge more customers followed by banking and restaurant
services.
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mobile
Android
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App
on
B. Location Awareness
Location-based marketing allows brands to adapt their marketing messages based on where
consumers are geographically, when they see them, and also what are their habits in that
location. Whole gamut of consumer behaviour can be analyzed based on the location where they
are in. Mobile Marketing Association (MMA) stats reveal that 63% of iPhone owners use
location services at least once a week7.
Businesses such as retailers are using location awareness features
to provide information of their nearby stores, its working hours and
special promotional deals. Coffee shops such as Tim Hortons has
launched a mobile app called TimmyMe that helps consumer to
get list of 10 nearest location as well as the menu list of various
offerings.
Adding location as a dimension can increase the relevancy to the
consumer and provide a more meaningful response to the retailer,
making it a win for all parties. Such relevancy ultimately helps
meeting the need of the consumer and hence overall positive brand
experience. According to research from ShopAlerts programs, 55%
to 79% of consumers find location-based alerts from retailers
appealing, and 11% to 34% percent report making a purchase, Fig 6: Timmy Me App
depending on the brand and the offer.
indicating location of
Tim Hortons as well as
promoting
Iced
coffee
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Capp
C. Brand Building
Branding is all about creating mental map associations in the mind of audience. Apps can act as a
great medium to increase or emphasize such mental map associations. Gaming apps are such
brand building blocks as it associates the brand with fun. For example, PepsiCo launched an app
called Pepsi Loot, which allows users to get free music (called loot) with check-ins made at
Pepsi locations. The intention was to make association of the soda brand with great music. Pepsi
promoted their locations as pop spots to increase its association with music.
of
Live
Chat
with
customer service
Several times, the PC is shared by many users and hence a specific PC identity cannot be
tied to single user.
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By having unique and secure identity of mobile device users, marketers now have the ability to
reference prior interaction history, improve personalization and meet customers conversation
expectations.
F. Shopping with Mobile Commerce
Mobile commerce (also called m-commerce) is showing exponential growth. Consumers use
their mobile device for shopping on-the-go and making more-frequent mobile payments. Mobile
commerce offers useful opportunities to businesses to enhance the consumers shopping
experience. It is particularly useful for busy shoppers. As consumers are constantly accessing
content from mobile device, m-commerce provides the opportunity to convert users desire to
purchase a product instantaneously via mobile device.
eBays launch of Fashion App is an example towards integrating convenient and bargain
shopping via m-commerce. The app allows users to browse for clothes, have access to exclusive
sales, and try on an outfit by snapping a picture with the phones' camera. It then lets you share
your outfits with friends on Facebook and Twitter. All of the features add to the shopping
experience, but most importantly, consumers are able to buy what they like through the mobile
device itself.
Build relationships
Build loyalty
Give you tools that are driving the "New App Economy"
Enhance your social networking strategies
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Mobile apps and mobile websites have their similarities and differences; companies looking to
take advantage of the mobile boom need to consider how each solution will help them reach their
business goals. Preparing before you take your business mobile will help ensure the route you
take will be the right one.
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Have fun
In this instance, Audis mobile app is not wholly centered around a campaign designed to sell
cars in the short-term. Instead, it focused on marrying entertainment with the brand name. This
app has received more than 3.5 million downloads. Audi claimed its "A4 Driving Challenge
game had resulted in half a million referrals to the A4's iPhone website -- more than the number
of visitors who weren't referred by the game8.
Banner advertisement and TV commercials based promotion can run only for a limited time and
hence provides finite advertisement opportunities. But, with mobile apps engaging experience,
Audi was able to provide a long term strategy towards promoting their various car models and
created
10
vast
scope
of
non
time
limiting
interaction
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with
the
consumers.
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Fig 11: Various snapshots of Hoovers Near Here App that helps building leads for sales
professional
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Adhish Kulkarni: With 40% of Facebooks revenue coming from mobile, the social channel has
fused with mobile. Photograph: Dado Ruvic/REUTERS
Understanding what customers value has been made easier by the tracking that is available
through apps and mobile sites. It's now possible to predict not only how likely a customer is to
respond positively to a particular mobile campaign, but also the reward or benefit that will most
excite them.
Deciding what customer data is most useful for accurate prediction will depend on the brand and
target market. Advanced analysis can prove remarkably accurate and it doesn't have to be as
complex as you might think.
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For example, BMW ran a mobile campaign for snow tyres, targeting all customers who
purchased a vehicle in the summer with a timely reminder message in October, when the snow
started falling. By personalizing the message with the recommended tyre for the individual
customer's car and an option to call, or get a call back from their closest dealer, BMW was able
to significantly increase effectiveness, and capitalize on the unique functionality of mobile.
Once you've got data you can use, the next element of an effective mobile relationship strategy is
the ability to execute it in as close to real time as possible. This is a very different skillset, and
requires a technology platform that can respond immediately to key customer behaviour, and
trigger an offer or message relevant not only to the customer, but to the moment.
A "closed-loop" approach to mobile data will also continually enrich your database, by recording
how individual customers respond to particular campaigns, learning from those responses and
applying it to future targeting strategies.
If brands want to build a mobile relationship, they must build trust though messages that
increasingly focus on customer preferences and individual moments such as birthdays and
membership anniversaries. The only alternative to not having a mobile relationship strategy is to
spend more money, acquiring more new customers to replace the ones that have left.
With any investment, marketing professionals must demonstrate return. Only a mobile
relationship strategy can turn a one-time advertising investment into a long-term conversation
that gets you closer to your customers.
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References:
http://en.wikipedia.org/wiki/Mobile_marketing
http://www.phonesale.com/blog/smartphone-sales-outpace-pc-sales-for-first-time/
http://www.androidtapp.com/investors-global-mobile-apps-economy-worth-17-5-billion-by2012/
http://tech.fortune.cnn.com/2011/01/28/108-apps-per-iphone/
http://blogs.forbes.com/marketshare/2011/06/06/how-to-advertising-on-an-intimate-device/
http://www.clickz.com/clickz/column/1717381/the-future-mobile-advertising-location-locationlocation
http://econsultancy.com/us/blog/7645-ten-ways-brands-can-use-location-based-marketing
http://www.mobilemarketer.com/cms/news/advertising/9540.html
http://geoffnorthcott.com/blog/2010/02/brand-iphone-apps-benchmarks-for-success/
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