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Consumer Buying Behavior: Digital Marketing

2208 words (9 pages) Essay in Marketing

21/04/17 Marketing Reference this

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A very important aspect related to the online marketing is its ability to contact potential customers irrespective of time and location. A major transformation has occurred due to the evolution of the mobile phone. Mobile marketing has been defined as the utilization of a medium that is wireless to ensure that consumers have access to information that is real time-based, location-sensitive and personalized, which aims towards promoting products, services, and ideas, thus proving beneficial for all stakeholders (Robinson, Wysocka, & Hand, 2007). According to (Shukla, 2010) mobile marketing will prove to be extremely popular on account of the fact that the mobile phone will be used as a personal device.

Mobile commerce has been the outcome of the swift development of the mobile phone. ]]]/|}|}Definitions related to mobile commerce alike in all existent literature. Mobile commerce transactions refer to all transactions conducted through a mobile communication network using monetary values. According to Robinson, Wysocka and Hand, (2007) (Robinson, Wysocka, & Hand, 2007) any e-commerce transaction that uses the media of mobile devices and that is conducted through wireless telecommunication networks and other wired e-commerce technologies may be termed mobile commerce. According to Frolick and Chen, (2004) (Frolick && Chen, 2004) mobile commerce maybe defined as any form of mobile communication that occurs between a business and its customer.

Dholakia and Dholakia opine that mobile commerce is used to carry out electronic commerce-transactions throuvgh mobile phones and wireless terminals. Finally, (Balasubramanian, Peterson, & Jarvenpaa, 2002)define any transaction that is carried out over a wireless telecommunication network, either directly or indirectly, as mobile commerce.

Thus, to conclude, mobile commerce may be considered to be a business model that enables a consumer to undergo all the steps of a commercial transaction simply using a mobile phone.

The media through which consumers will be able to conduct their transactions have the potential to undergo transformation primarily due to the development and usage of mobile commerce as a technology that is gradually emerging. Not just consumers but marketers too are attracted to mobile commerce that is based on wireless communication technology. The availability of this new technology will provide for a complete make-over in the fields of advertising, retailing and shopping in the domain of marketing. Companies that desire to conduct business operations in mobile markets must then, be ready to adopt mobile marketing and mobile commerce.

Mobile commerce will be similar in many respects to the internet-based e-commerce but it will also be distinct in some aspects. These are:

Ubiquity- The ability that makes it possible for mobile commerce to be availed of anywhere and at any time.

Personalization- Mobile hardware undoubtedly is limited by its memory capacity. However, software can be used in such a way that the users’ needs are satisfied.

Flexibility- Users can conduct transactions and/or receive information even when they are engrossed in other activities, such as, travel or work.

Dissemination- It is quite possible that the people who act as the origins of information (for example, local retailers) may make use of the wireless network of mobile commerce so that the customers get the required, specific information.

Convenience- Users can operate mobile phones very easily.

Instant connectivity- Marketers can use the mobile phones to connect with target users just by clicking a button.

Location- It is possible to provide location-specific information and products using a mobile phone.

The channels related to mobile commerce and mobile marketing need to be comprehended and further analyzed although a number of companies utilize these channels extensively. This research aims at drawing the attention of entrepreneurs towards the Global System for Mobile Communications (GSM) operators as well as towards the opportunities that exist in the domain of mobile commerce and mobile marketing. This research will focus on (1) mobile commerce and concepts related to mobile marketing (2) tools available for mobile marketing (3) the significance of mobile marketing in India and (4) the comprehension and examination of consumers’ attitudes towards mobile marketing tools.

The digital world has introduced a new aspect of marketing and branding and this has seen an increase in the number of consumers who have turned to the digital space to get their daily dose of entertainment, education, media, and more.

The Internet, social media, interactive television, CDs, DVDs, and cell phones are all various aspects of the digital world and these will be preferred extensively by people in the context of digital marketing. The usage of digital media will prove to be an extremely cost-effective measure that will efficiently enhance the online presence of a business thereby increasing it manifold.

The popular saying that ‘there is no such thing as a free lunch’ has been negated by the digital media. This is because marketing using social media and blogs will be seen to help an individual reach out to professionals who were thus far untouched. Also this will increase the visibility among the users of the websites. Consumers will be b able to avail of these services at no cost (Cheung, 2006).

If I refer to the figures from Internet World Stats dated March 2008, Internet usage is said to have risen to 91.3% between 2000 and 2008. The spurt in Internet usage has been seen as enabling companies to grab the chance to interact with global customers through online advertising thus resulting in spending of over USD 60 billion in 2008. (Media, 2008)

The aspect of digital marketing is quickly automated and adapted to. Digital marketing unlike its other counterparts will be available 24 hours a day, and will not be disrupted by weekends, holidays, hangovers, late lunches, etc. Digital marketing will be easy to connect to and will follow all commands without questioning. It will target prospects, who are interested in the products displayed that very moment (Nicopolitidis, Obaidat, Papadimitriou, & Pomportsis, 2003).. Digital marketing will be most preferred because advertising space online will be much cheaper than the print version and will offer better visibility.. The content however will have to be framed in such a manner as to be of use to consumers or else it may have a negative impact. This low-cost marketing technique is expected to be useful to small businesses too.

Marketing prospects will increase because of the availability of information through digital media. It will now be possible to decide the target consumers and use a mix of various measures, examinations and profiling of consumers/segmentation to enable a two-way communication process (Thomas && Gillenson, 2003).

2. Background

The interactive digital advertising perspective includes presentation of information using means that depend on digital technology. Using digital technology makes it possible to create an immediate communication process between marketers and consumers (Stewart, 2004). Consumers can control advertising through interactive digital media by manipulating what they view on the screen while surfing online (Stern, 1994). Given that it can be measured easily, it is precise, customized, and personalized apart from being able to target consumers easily (Iii && Woodside, 2005), interactive digital marketing ends up being a very good potential tool for advertisers (Radzeviciute && Sliburyte, 2005).

Tools that refer to interactive digital advertising include the: Online community, short messaging systems, and the transfer of photographic images using computers that have internet access and mobile phones, which are commonly used today (Stewart, 2004). It can be clearly seen that interactive digital advertising will explore and further strengthen the connection between computers with internet access and mobile phones. Advertising using the above-mentioned media will also be sub-divided into internet-based e- and email advertising, and mobile-phone-based SMS- and MMS-type advertising.

3. Research Aims

The main objective of the research will be to examine the attitudes of the consumer towards the four different types of interactive digital advertising including: Internet-based e- and email advertising apart from the mobile-phone-based SMS- and MMS-type advertising.

4. Research Objectives

The chief aims of the research include:

To estimate if there have been changes in the Indian customer’s buying behavior due to digital marketing.

To evaluate the attitude of the consumers in the context of interactive digital advertising.

To analyze different marketing models.

To study the various strategies and policies that organizations are likely to follow in this dynamic Indian market.

5. Literature Review

Given the prolific use of digital media interactivity amongst advertisers and consumers, marketing activity has been upwardly impacted. Any form of advertising that includes the chances of interacting with consumers is known as interactive digital media. A producer can use this medium to interact with consumers by conducting campaigns related to his products (Schlosser, Shavitt, && Kanfer, 1999).

The TV-like experience is no longer relevant today. Consumers now demand much more given the rapid inroads being made by interactive digital advertising. Consumers also prefer options like In-Stream, In-Game, HD interactive video, IPTV, interactive kiosks, and mobile advertising platforms (Cho && Cheon, 2004). This undoubtedly heralds a change in marketing and the shifts are obvious. Though these run parallel to the increased expectations of consumers these in no way put any boundaries as there may be new and modern forms of advertising that may evolve in the future.

The main aim of any Digital Advertising medium will be to draw the attention of the consumer by inventing new and creative advertisements that enable development of personal relations. New technology will enable agencies and advertisers to make use of, evolve and reach new levels of brand-awareness and consumer commitment (Martin, van Durme, Raulas, && Merisavo, 2003). This new medium of advertising will pave the way for agencies and advertisers alike to command increased values in terms of worth that is returned.

Using the internet as a medium for advertising will now gain significance for gathering consumer information as there has been a rise in the number of internet users (Cheung, 2006). Mobile phones will ensure that targeting consumers becomes even more accurate compared to what it was like before and advertisers will be able to reach potential clients at places and times that are most suitable for the marketing campaign, while at the same time ensuring high interactivity (Nicopolitidis, Obaidat, Papadimitriou, & Pomportsis, 2003). The internet advertising industry will thus take recourse to mobile phones (Thomas && Gillenson, 2003). Advertising within these two potential channels may be of four types and will include: Internet-based advertising through the website (e-advertising), emailing (’email advertising’), and mobile-phone-based advertising (‘m-advertising’) of the SMS- (short messaging service) and MMS-types (multimedia messaging service).

If I consider the two communication media forms, interactive and individual,, they will comprise what I call ‘interactive digital advertising.’ It is important to understand consumer behavior towards this medium as the attitudes of the consumer will impact consumer exposure, attention, and reaction to individual advertisements (Schlosser, Shavitt, && Kanfer, 1999).

There have been a few instances of empirical studies carried out in the context of consumer attitudes and e-advertising (Ravi, 2005). Yet, a majority of the literature fails to include email advertising in its research. Many are unsuccessful in distinguishing email advertising from other forms of advertising. Still, there is limited research which emphasizes email advertising (Martin, van Durme, Raulas, && Merisavo, 2003). If I consider advertising, there exist a small number of articles that focus on consumer attitudes towards SMS-type m-advertising, including the study by Tsang, et al., (2004), Rettie, et al., (2005), and Carroll, et al., (2007). The new generation MMS-type m-advertising has received practically no attention from the academic aspect.

The fact is that consumer markets and communication media will become fragmented to a great extent (Karson, et al., 2006) so it is important that the differences between the media in the advertising domain be noted. Any analysis that is carried out, which focuses on these differences will enable the marketers to get in-depth information related to the application and suitability of individual sub-types of interactive digital advertising. It will also help choose between the four available sub-types of interactive digital advertising channels to ensure that the message is communicated correctly to the customers. Still, empirical studies related to this subject are rarely found. This research will help aid further study into consumer attitudes related to interactive digital advertising. Actually, this research will aim at identifying the differences that are present in consumer attitudes, which may be related to these four sub-types of interactive digital advertising. I can conclude by stating that the research questions in this study will be designed so as to elucidate whether the attitudes of the consumers differ when it comes to internet-based e- and email advertising, and mobile-phone-based SMS- and MMS-type advertising.

Today, when the media are so fragmented there are several ways that can be used to create advertising campaigns that use Interactive Digital Advertising. Interactive Digital Advertising will be inevitable given the Internet is becoming an inseparable and intrinsic part of our lives.

6. Research Methodology

Research methodology is the core behind any research that is conducted. I will opt for the Questionnaire method since the primary data suits the needs of this research. There were 20 questions included in the questionnaire that were simple to comprehend. The questions were all close-ended. This has eased the workload of both the researcher and the respondents.

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