Project Report: "Effectiveness of Digital Marketing: A Study From Consumers' Perspective"
Project Report: "Effectiveness of Digital Marketing: A Study From Consumers' Perspective"
Project Report: "Effectiveness of Digital Marketing: A Study From Consumers' Perspective"
ON
“Effectiveness of Digital marketing: A Study from
Consumers’ Perspective”
Submitted to:
Department of MBA (HRM and OB)
Central University of Jammu
-----------------
SIGNATURE
ACKNOWLEDGEMENT
I would like to thank our Dean School of Business Studies Prof. Jaya Bhasin for her
immense support and blessings. I would like to express my special thanks of gratitude
to my research guide Dr. Mansey Verma, Department of Marketing and Supply Chain
Management for his valuable suggestions and guidance and for giving me the golden
opportunity to do this wonderful research project on the topic: “EFFECTIVENESS OF
DIGITAL MARKETING: A STUDY FROM CONSUMERS’ PERSPECTIVE”.
Without his help it would have been difficult for me to have reached this state of
completion of my project report. Also, I would like to thank my parents and friends
who helped me a lot in the preparation of this project.
I wish to acknowledge the help of those who have provided me information, guidance
and other help during my research period.
TABLE OF CONTENTS
INTRODUCTION
TO
DIGITAL
MARKETING
Today’s era of Internet has opened a gate of vast variety of opportunities for
businesses. Using social networks, one cannot only share a private picture of one’s
birthday but also earn customers for one’s business and reach them conveniently. The
speed and ease with which the digital media transmits information and help boost a
business is amazing.
The following table lists a few points that differentiate digital marketing from
traditional marketing –
Social media grew up as the most popular outcome of the Internet as people around
the world like to communicate and share their special moments, problems, ideas, and
suggestions with others. They also like to learn about a place worth visiting, a new
craft projects, recipes, or a new language. Social media websites enable you to share
convenience.
This popularity of social media has inspired the business minds around the world with
the idea of small online businesses. One can open a store in Amazon, eBay, or any
other custom platforms such as Shopify or Etsy. But the main challenge is finding the
customers. There are ways like search results in Google, Bing or in any other search
engine. But for a new business with established competitors, it takes a long time to get
a high rank in the search results.
Social networking websites are a great solution to this challenge. The basic technique
here is to share engaging posts and the right content created for the desired audience.
Then the audience helps by sharing the content further, which in turn reaches further.
Hence there is another option of advertising the product, services, or ideas on the
social networking websites where there is less degree of competition.
Evolution of Digital Marketing – The Timeline
The 90s
Archie, the first search engine, debuted in the early 1990s, heralding the birth of
search. SEO, or Search Engine Optimization, quickly followed.
The first clickable web-ad banners were introduced in 1994. The first identifiable
social media site was launched in 1997, with 3.5 million users. In the 1990s, a slew of
websites still in use was found, including Google and Yahoo's web search, both of
which debuted in 1998.
A massive economic bubble grew in the new millennium. However, the bubble's peak
and burst between 2000 and 2002 harmed many businesses. Many new sites were
launched in the 2000s as the economy recovered from the boom, including the
beginnings of LinkedIn in 2002, Myspace and WordPress in 2003, and Facebook in
2004. In the early 2000s, mobile text messaging marketing became increasingly
popular.
The latter half of the decade saw increased marketing and sales, with Amazon's e-
commerce sales surpassing $10 billion. Over the next few years, mobile app culture
expanded with the introduction of WhatsApp, Instagram, and Snapchat to the digital
world.
The Present
Today, 65% of an individual's digital media time is spent on a mobile device. The
digital advertising industry is now valued at around $200 billion, with Google Ad
Words accounting for 96% of the company's revenue. With an estimated 3.1 billion
online users, social networking has led the digital marketing revolution. The rise of
bloggers and Instagram has resulted in a $1 billion industry for influencers, which are
anticipated to grow. Digital marketing is expected to grow in the coming years, with
many new developments and changes in this exciting industry.
1. Digital Devices
Digital devices are those that people use almost every day. For example, these
can get used to marketing to a specific audience—computers and mobile
phones.
3. Digital Media
Paid or owned digital media channels can be used to reach your target audience.
They include things like online advertising and social media marketing.
4. Digital Data
Data about your target audience used to achieve a marketing goal is called
digital data. You can generally collect data about your target audience through
surveys, apps, and other means.
5. Digital Technology
Digital technology is all about using technology to achieve a marketing goal.
Artificial Intelligence (AI), Augmented Reality (AR), and Virtual Reality (VR)
are a few examples.
Types of Digital Marketing
The following are some of the different types of digital marketing:
Content Promotion
Content marketing is a type of digital marketing that focuses on the creation and
distribution of content for a specific audience.
Affiliate Promotion
Affiliate marketing is a popular way for people to make money online these
days.
Email Marketing
The use of email to promote one's products or services is known as email
marketing.
Check out our Digital Marketing Course sensing an opportunity, Google began
to expand, introducing such products as AdWords, which are 3-line ads that
show up at the top or to the right of search engine results, and AdSense -which
is a cost-per-click advertising scheme. In time, Google realized the value of
analysing the content they received and then target ads based on the interests of
the users, and thus became a major player in the world of business.
INTRODUCTION
TO
THE STUDY
MARKETING
Advertisers are expected to spend Rs. 22,500 million in digital advertising in the year
2009 third only to TV and Print ads, which is around 5257% more than that in the
year 2004, compound percentage increase of 124% over the last 5 years. This is the
new age of advertising.
It is true that people have started realizing that internet can serve as a one stop point
for all their needs. Be it communication, entertainment, shopping, information
search, internet serves as a panacea for all their requirements. This has led 70% of
the ever users to glue themselves to the Internet and access it on a regular basis. This
is an opportunity for advertisers to exploit this revolution. But is it the end of
traditional advertising? Is digital advertising effective and efficient compared to the
traditional form?? Does it fulfill the basic objectives of advertising (create
awareness, to generate sales, build positive image, etc…)???
The problem is that volumes of consumers are online every day for their personal
work, but do they notice the ads, banners etc. displayed on that webpage, most
important what is their recall/remembrance value. What about the reach of online
advertising, is it effective across over all target groups? We have trusted traditional
advertising all these.
Year’s and it’s a proven medium that fulfils all the objectives of advertising, can one
have the same trust for online advertising…
In today’s technology driven world, a new fast paced digital economy is emerging.
Tomorrow there will be companies that will exist only inside computer networks.
Most business transactions will be made electronically, directly from the producer to
the consumer, bypassing the supply chain. In the digital marketing environment, the
consumer becomes an integral player in the development of the product. In fact, a
consumer might build the product himself from a wide array of parts provided by the
Company. It is e-commerce that is changing the way products and services are
conceived, manufactured, promoted, priced, distributed and sold. The reason being
that it is much cheaper; it allows vast coverage and helps in serving the customer
better.
CHAPTER:2
OBJECTIVE
OF THE
STUDY
LITERATURE
REVIEW
Chaffey, 2013 The purpose of doing research in the area of digital marketing is
because it seems huge, intimidating and foreign. Businesses are looking for
clearer picture to start but do not know where and how to start doing digital
marketing. In today’s time, social media channels such as Face book, Twitter,
Google, and other social media firms have successfully transformed the
attitudes and perceptions of consumers and in the end helped revolutionized
many businesses. This was done through measurable vast network of customers
with trustworthy data with real-time feedback of customer experiences. It is
much more convenient for businesses to conduct surveys online with a purpose
to get relevant information from targeted groups and analysing the results based
on their responses. Potential customers can look for reviews and
recommendations to make informed decisions about buying a product or using
the service. On the other hand, businesses can use the exercise to act on relevant
feedback from customers in meeting their needs more accurately. Digital
marketing is the use of technologies to help marketing activities in order to
improve customer knowledge by matching their needs.
Smyth 2007 Marketing has been around for a long time. Business owners felt
the need to spread the word about their products or services through newspapers
and word of mouth. Digital marketing on the other end is becoming popular
because it utilizes mass media devices like television, radio, and the Internet.
The most common digital marketing tool used today is Search Engine
Optimization (SEO). Its role is to maximize the way search engines like Google
find your website. Digital marketing concept originated from the Internet and
search engines ranking of websites. The first search engine was started in 1991
with a network protocol called Gopher for query and search. After the launch of
Yahoo in 1994 companies started to maximize their ranking on the website.
When the Internet bubble burst in 2001, market was dominated by Google and
Yahoo for search optimization. Internet search traffic grew in 2006; the rise of
search engine optimization grew for major companies like Google.
Parsons, Zinsser, wait man 1996, In 2007, the usage of mobile devices
increased the Internet usage on the move drastically and people all over the
world started connecting with each other more conveniently through social
media. In the developed world, companies have realized the importance of
digital marketing. For businesses to be successful they will have to merge
online with traditional methods for meeting the needs of customers more
precisely. Introduction of new technologies has creating new business oppose.
CHAPTER: 4
RESEARCH
METHODOLOGY
RESEARCH DESIGN
This is descriptive research as it will clarify the doubts about online advertising. It
would give us a clear picture on the effectiveness and reliability of online
advertising compared to the traditional form of advertising.
DATA COLLECTION
SAMPLE UNIVERSE
Basis of sampling:
Sample should be a user of internet or should have knowledge about
internet.
36 numbers in all
SAMPLING TECHNIQUE
DATA ANALYSIS
AND
INTERPRETATION
1. Gender
40%
Male
60% Female
others
2. Occupation
3.80%
Student
Businessman
Professor
96.20%
3. What do you think about digital marketing?
One can clearly make out that consumers perceive advertisements as a source of
information and awareness, be it general or towards TV commercials.
3.80%
34.60%
INFORMATIVE
38.50% ENTERTAINING
CREATE AWARENESS
IT'S IRRITATING
ANNOYING
WASTE OF TIME
23.10%
INTERPRETATION
0.038
0.038
INTERPRETATION
From above chart and survey done around 23% watch for informative purpose,
38% for entertainment, 31% feels that it creates awareness and other 3.8% just
watch to waste time.
ONLINE ADVERTISEMENT
As above seen consumer are more influenced by Social Media- Blogs, Forums,
Social networking sites of 35% after that by online advertisements of 23%, 27%
by friends and relatives also 11% influenced by TV commercials , where
magazine and Newspaper is only 4% as surveyed.
15.4
TV COMMERCIALS
19.2 PRINT ADS: NEWSPAPER,
MAGAZINE
61.5
OOH : BANNERS, EMAILS
3.9 ONLINE ADS : BANNERS,
EMAILS
INTERPRETATION
3.8
23.1
RECOMMENDATIONS FROM
CONSUMERS
RADIO
TV
73.1
NEWSPAPER
INTERPRETATION
The above is the chart for trust level of advertisement medium from consumer’s
point of view which is 73%, after that Radio 23% and TV around 4%.
3.9
19.2
ALWAYS
DEPENDS UPON Ads
NEVER
76.9
INTERPRETATION
According to the survey, around of course there are people (77%) who change
channels during breaks but not always. In fact, according to the survey there
were 19% people who change the channel each and every time. Only 4% people
were there who never change the channel and feels that the ad is attractive and
appealing.
7.7
30.8
SOMETIMES
61.5 DEPENDS ON AD
OFTEN
INTERPRETATION
Whereas in case of online advertising, around 62% of consumers ignore it completely,
they try not see those advertisements, and that of 31% see them if they find it to be
attractive. Out of that 8% said that the intension was not to see those ads, but they didn’t
have any option but to see them as they were Interstitial Adverts, Pop – up ads or Floating
ads. These ads either block the view of the content, or appear right in the middle of the
page, or keeps on floating (moving) around which is considered to be very irritating for the
consumers.
INTERPRETATION
5. Near about 19% consumers use internet for chatting and social like whatsapp,
facebook, etc.
INTERPRETATION
From the above survey mostly youngster has selected Mobiles 73% they feel
It was strange that nearly 8% selected books as no one can live without online sites.
12.Do you think that the face of advertising is transforming in terms of technological
and cultural impact?
3.8
YES
NO
96.2
INTERPRETATION
From the above survey made Around 96% has given positive reply on cultural impact
such As standard of living, income etc But around 4% has given negative an as they
don’t feel any transformation as during survey I asked people why they are selecting no
26.9 NEWS
42.3 ADVERTISEMENT
FAMILY
FRIENDS
3.8 INTERNET
OTHER SOURCES
15.4
INTERPRETATION
From the survey, we found that Consumer’s collect most of the information
which is around 42% through internet. Along with this 27% collect information
from advertisement, 15% from friends, 7.7% from News, 3.8% from family and
the rest which is around 4% from other sources.
32 CUSTOMER EXPERIENCE
48
QUANTITY
ATTRIBUTES
QUALITY
PRICE
12
4
INTERPRETATION
From the survey we observed that before purchasing the product, around 48%
consumer tries to collect information from the past customer experience , 32%
check the quality, 12% find out the attributes and the rest of the consumers
checks the quantity and the price of the products.
11.5 7.7
3.2
RADIO
30.8
OOH
NEWSPAPER
46.2 ONLINE Ads
TV
INTERPRETATION
Consumers gives more importance to Online ads which is around 46%, 30%
people gives importance to Newspaper , also 12% on TV, 7.7% on the Radio and
the least importance is given to OOH which is around 3%.
16.How do you normally purchase a product?
11.5
Research online and purchase
30.8 from retail shop
Research in mobile and
purchase from retail shop
34.6 Purchase directly from a retail
shop only
11.5 Research and purchase from
mobile
11.5 Visit the retail shop and
purchase from mobile
INTERPRETATION
From the above survey, we observed that Consumers around 35% believes in
searching and purchase from mobile because they feel it is more convenient
way to do shopping, around 31% customers research online and purchase from
retail shop and the rest feels to Research in mobile and purchase from retail
shop or Purchase directly from a retail shop only or visit the retail shop and
purchase from mobile.
17.How will you share your experience with others?
11.5
INTERPRETATION
Customers or consumers love to share their experiences through face to face talk
(46%). In messaging 19% share their experience and in company website around
15% people share their experiences and the rest other believes in sharing their
experience by writing a blog or on social networking sites.
18.Do you believe that digital marketing is effective for consumers in today’s
scenario?
15.4
YES
NO
84.6
INTERPRETATION
FINDINGS,
LIMITATIONS
&
SUGGESTIONS
FINDINGS
According to the survey, not many people find advertisements to be irritating,
annoying or waste of time. This clearly shows a positive attitude toward them
and hence is a good indication for marketers; as from above survey only 34.6%
think digital marketing as informative purpose, 38.5% thinks it creates
awareness and 23.1% as entertaining, while only 3.8% feel as irritating.
As above seen consumer are more influenced by Social Media- Blogs, Forums,
Social networking sites of 35% after that by online advertisements of 23%,
27% by friends and relatives also 11% influenced by TV commercials , where
magazine and Newspaper is only 4% as surveyed.
From above chart and survey done around 23% watch for informative purpose,
38% for entertainment, 31% feels that it creates awareness and other 3.8% just
watch to waste time.
The study shows trust level of advertisement medium from consumer’s point of
view which is 73%, after that Radio 23% and TV around 4%.
According to the survey, around of course there are people (77%) who change
channels during breaks but not always. In fact, according to the survey there
were 19% people who change the channel each and every time. Only 4%
people were there who never change the channel and feels that the ad is
attractive and appealing.
Near about 19% consumers use internet for chatting and social like whatsapp,
facebook, etc.
From the above survey mostly youngster has selected Mobiles 73% they
It was strange that nearly 8% selected books as no one can live without online
sites.
From the above survey made Around 96% has given positive reply on cultural
impact such As standard of living, income etc But around 4% has given
negative an as they don’t feel any transformation as during survey I asked
people why they are selecting no some said it is not our Indian culture
From the survey, we found that Consumer’s collect most of the information
which is around 42% through internet. Along with this 27% collect information
from advertisement, 15% from friends, 7.7% from News, 3.8% from family
and the rest which is around 4% from other sources.
From the above survey, we observed that Consumers around 35% believes in
searching and purchase from mobile because they feel it is more convenient
way to do shopping, around 31% customers research online and purchase from
retail shop and the rest feels to Research in mobile and purchase from retail
shop or Purchase directly from a retail shop only or visit the retail shop and
purchase from mobile.
From the above survey, we observed that Consumers around 35% believes in
searching and purchase from mobile because they feel it is more convenient
way to do shopping, around 31% customers research online and purchase from
retail shop and the rest feels to Research in mobile and purchase from retail
shop or Purchase directly from a retail shop only or visit the retail shop and
purchase from mobile.
CONCLUSION
Practically it has been proved through the research that online advertising is neither
effective nor reliable as compared to the traditional medium which is Television
commercials and print media i.e., newspapers and magazines. Also, consumers trust
the traditional medium more than that of online and there is a vast difference in their
trust levels. Of course, it could be because of the Indian culture which is different from
the western countries that are more into e-commerce and prefer to buy things online
and they trust the internet more as compared to the other forms. Therefore, Internet
advertising is more successful in those countries. All in vain in India, as we prefer to
tangibles the things that we buy. Being collective we go shopping along with family
friends and relatives.
In most cases, users view banner advertisements as a nuisance as they are engaged in
other activities while they are being exposed to the ads. Additionally, we can assume
the most people exposed to an ad do not have the need for the products being
advertised at that time. Therefore, these ads are less likely to be noticed. To have an
impact on brand metrics, we can hypothesize that getting a message in front of
someone as quickly as possible, before they scroll away, is of extreme importance. In
addition, the presence of a logo, the size of a logo, and the size of the banner should all
have an impact on the banner’s ability to brand.
Also, the banner could lay a subliminal effect on the consumer which might drive him
to buy the product or create some association with it. Because it is the subconscious
mind that plays the game here. If one can take target this subconscious mind, then
definitely it can create a positive impact on branding.
Finally, I would like to end by saying that even though the internet has opened up a
new avenue for reaching the end consumer; it is still very much an open field. This is
true as there is no fixed way or strategy for marketing on the net. It is still very much
an arena where ingenuity and creative thinking very much rule the roost. Thus,
marketing as usual has not changed, i.e. it is still the same usual self…….
unpredictable but very much required.
LIMITATIONS
Though, best efforts have been made to make the study fair, transparent and error free.
But there might be some inevitable and inherent limitations. Though outright measure
is undertaken to make the report most accurate. The limitations of the survey are
narrated below:
It was not possible to cover each and every respondent due to time constrains.
There may be some biased response from the respondents.
Unwillingness on the part of the customers to disclose the information as per the
questionnaire.
ANNEXURE
o Informative
o Entertaining
o Creates awareness.
o It’s irritating.
o Annoying
o Waste of time
2. For what purpose you watch the TV/Radio commercials during commercial break?
o Informative
o Entertaining
o Creates awareness.
o It’s irritating.
o Annoying
o Waste of time
o TV commercials
o Print Ads: Newspaper, Magazines
o OOH: Banners, Posters
o Online Ads: Banners, Emails
o Never
o Depends on ad.
o Sometimes
o Depends on ad.
o Often
10. Do you think that the face of advertising is transforming in terms of technological
and cultural impact?
o Yes
o No
o Other Sources
o News
o Advertisements
o Family
o Friends
12. What type of information you collect before purchasing the products?
o Customer’s Experience
o Quantity
o Attributes
o Quality
o Price
13. Mention one form of media, which you give more importance?
o Radio
o Ooh
o Newspapers
o Online ads
o Tv
o Yes
o No
Bibliography
2. http://www.ranker.com/list/indian-social-networks/dot-commander
3. http://www.jagranjosh.com/general-knowledge/top-10-social-networking-sites
4. http://digitalworld.com/impact/onpeople/prefrence