A STUDY OF INTERNET MARKETING IN INDIA: CHALLENGES AND OPPORTUNITIES

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1 A STUDY OF INTERNET MARKETING IN INDIA: CHALLENGES AND OPPORTUNITIES Niharika 1, Satinder 2 1 Assistant Prof. (Extn.), Department of Commerce, Govt. College, Hisar, Haryana,(India) 2 Assistant Prof. (Extn.), Department of Computer Science, Govt. College, Hisar, Haryana, (India) ABSTRACT In the past few years, the internet and e-commerce business activities have become one of the fastest growing technologies that playing a significant role in the daily life of human being. Today, E- marketing is one of the most emerging technology in IT and E-Commerce sector. E-marketing is also referred to as Internet marketing (IM), online marketing or web-marketing, means using the internet to market and sell goods and services. E- Marketing helps to find out the right audience to whom goods and services are to be provided by the business organizations. It consists of all processes and activities with the purposes of attracting, finding, winning and retaining customers. The scope of E- Marketing is deemed to be broad in scope it does not only use to promote marketing over the internet but also helps in marketing as well through and wireless media. Here we analyzed to find out the opportunities and challenges of Internet marketing in India. Keywords: Internet Marketing, Online, Consumers, marketing, Challenges I. INTRODUCTION Due to globalization, not only nations are coming closer to each other but also different sector undergoes into significant changes. And marketing sector is also affected by this and experiencing so many changes continuously. To sell our product through internet or digital media is known as E- marketing. Types and size of business organization affects marketing traditionally but in today s scenario, digital technology is a valuable addition. E- Marketing is also known as web marketing and online marketing. E- Marketing helps to find out the right audience to whom goods and services are to be provided by the business organizations. It consists of all processes and activities with the purposes of attracting, finding, winning and retaining customers. Creative use of internet technology is made by using various multimedia, text, graphics etc. with different languages to create catchy advertisements, forms, e-shop where product can be promoted, viewed and sold. The scope of E- Marketing is deemed to be broad in scope it does not only use to promote marketing over the internet but also helps in marketing as well through and wireless media. E-marketing also joins technical and creative aspects of the Internet, including: development, design, advertisement and sales. Use of websites are made by e- marketing in combination with online promotional techniques such as social medial marketing, search marketing (SEM), interactive online ads, marketing, online directories, viral marketing, affiliate marketing and so on. E- Marketing also include product display, advertisement consisting of graphics videos and audio with text, 3D product view, product navigation, basket selection, checkout and payments. The digital technologies used as communication and delivery mediums within the scope of e-marketing which include: 265 P a g e

2 Internet media i.e., websites and Digital media i.e., wireless, mobile, cable and satellite. In most of the business models, this form of marketing is equally applicable: E-commerce Direct sales of goods to the mass consumers/customers as well as to the business customers. Publishing Services where advertisement are sold Lead-based websites like policy bazaar, where sales leads are generated and sold to either by the third party or used in house to convert them into sales through appropriate channel suitable for it. Affiliate marketing a referral marketing strategy where reward is given to the referring product company or website which refers about product or services to the other friends, relative or in nutshell other potential customer or target customers. E-marketing is a cost effective tool where customization becomes very easy and affordable along with very less marketing efforts.various methods are used by the advertiser i.e., pay per play pay per click, pay per impression or pay per action. In this way marketers can able to determine that which message is good appealing and which message is not so effective. It helps to provide a large variety of high quality product in less time at reasonable rate.customer s familiarity with the latest innovation both in digital technology as well financial and legal domain is required by E- marketing. In this way, its appeal is limited because requirement of High speed Internet connections is there and also further complications are faced like customers are not able to touch, taste or smell the things and also fear about security in online payments over different websites. Definition Internet Marketing or E-Marketing is the process of promoting a brand, products or services over the Internet. Its broad scope includes marketing, electronic customer relationship management and any promotional activities that are done via wireless media. E-marketing means using digital technologies to help sell your goods or services. These technologies are a valuable complement to traditional marketing methods whatever the size of your company or your business model. II. NEED OF THE STUDY India will likely see the golden period of the Internet sector between 2013 to 2018 with incredible growth opportunities and secular growth adoption for E-Commerce, Internet Advertising, Social Media, Search, Online Content, and Services relating to E-Commerce and Internet Advertising. As we all know, India has a long way to go in the world of Digital Marketing as more and more Indians are spending time on the internet as compared to China and US. III. OBJECTIVE In this paper we focus on the study of E-Marketing and online behavior of consumers. They also provide an incentive to focus on critical areas and formulate strategies to help achieve intended objectives. To review the present status of online trading in retailing in India. To identify the problems in online trading in retailing from the point of view of providers and consumers. 266 P a g e

3 To provide suggestions to popularize online trading and increase the profitability of online retail companies in India. There are different E-Marketing objectives depending on their individual circumstances. A basic framework for developing effective E-Marketing objectives is the five S s framework, which includes: 1. Sell : For sell products and services. 2. Serve : To serve best service to customers. 3. Speak: Internet use for communicate with customers. 4. Save: Using Internet to save cost 5. Sizzle: To build brand identity. IV. TYPES OF INTERNET MARKETING There are several types of internet marketing, some which work alone, others which work in conjunction with others. Here is some types of internet marketing: 4.1 Search Engine Optimizer Search engine optimizer or SEO for short, is possible for popular search engine to index a website and boost it up to the top of the result page. He Should revise the structure of website, webpages or blog. He Should correct the errors. He should develop his own content. He should manage online campaign. 4.2 Social Media Marketing Social media marketing (SMM) is the process of gaining website traffic or attention through social media sites. The goal of SMM is to produce content that users will share with their social network to help a company increase brand exposure and broaden customer reach. The use of social media services to garner attention and website traffic is gaining just as much popularity as the networks themselves. Listening: Know when to engage 267 P a g e

4 Sharing: Turn your buyers into salesmen Measuring: Track ROI in social 4.3 Blog Marketing Blog marketing is any process that publicises or advertises a website, business, brand or service via the medium of blogs. This includes, To raise the visibility of our company. To increase the sale growth and profit To make a contribution to our industry. To give the public a look at what goes on within a real live publishing company about the feature of their up coming products. 4.4 Pay Per Click Advertising PPC stands for pay-per-click, a model of internet marketing in which advertisers pay a fee each time one of their ads is clicked. Essentially, it s a way of buying visits to your site, rather than attempting to earn those visits organically. It based on advertisers keyword list to show relevant content to the user. Using Pay per Click is the quick measurement of success. It creates a highly targeted audience to attract visitors Marketing marketing is a way to reach consumers directly via electronic mail. Unlike spam, direct marketing reaches those interested in your business area of expertise. It includes, It s the easy, effective, and affordable way to keep your customer coming back It should be professional to attract About new product Promoting their products by wishing special events While giving feedback they put information about their product too Save paper and postage 4.6 Networking A business model in which a distributor network is needed to build the business. Usually such businesses are also multilevel marketing in nature in that payouts occur at more than one level. The advantages of network marketing include: Flexibility of time More Freedom High chances at success Free Training Easy Business plan Work at Home 268 P a g e

5 Easy to run V. IMPORTANCE OF INTERNET MARKETING Below are some of the reasons why it is absolutely important for any business to invest in online marketing for their brands. a. Cost effective IM (internet marketing) is one of the best cost effective ways of advertising because marketing products on the internet is less expensive in comparison to physical marketing due to short chain of middlemen in online marketing as well as less expenses on the physical outlet of the showrooms and the use of marketing articles or social media in establishing an online presence is minimal and you don t have to incur cost of rental property and its maintenance because you will not have to purchase stocks in bulk for display in a store. b. Convenient Internet marketing enables to provide 24*7 services without worrying about the opening and closing hours of a physical store. It s also convenient for your customers because they can browse your online store at any time and from any place worldwide and place their orders at their own convenient time. c. Increase website traffic The use of articles or social media as a marketing strategy will help to increase traffic to a business website. The more people visiting the site the more likelihood to closing with more sells and generating more interests of people in the products. d. One-to-one Marketing Internet marketing overcomes barriers of distance is overcome by internet marketing because you can sell goods in any parts of the world without setting up a local outlet over there, thus the scope of target market becomes very wide. However if you want to sell the product or services internationally you will have to use localization services to ensure that your products are suitable for local markets and comply with local business rules and regulations. Localization of services include translation and product modification which reflect the differences in local market. e. Improves customer seller relationship Better platform to build relationships with customers to increase customer retention level is provided by internet. For example when a customer has purchased a product, first step to begin the relationship by sending a follow up to confirm the transaction and then thank the customer. You can also invite the potential customers to give product reviews on your website regarding the existing product and this will help to build a sense of community. f. Personalization By building a profile of their purchasing history and preferences, internet marketing will help a business to personalize offers for customers. You can do this by tracking the product information and web pages that helps to prospect, visit and make targeted offers which reflect their interests. g. Increases sales Internet marketing will increase your sales because it provides the consumers opportunity to purchase the products online rather than physically going to a place or sending an order form by mail. This will increase 269 P a g e

6 the impulse rate of purchasing power resulting in an increase of revenue for business organizations and an excellent return on their investments. h. Always available to consumers Using internet marketing techniques businesses can give their consumers a 24 hour outlet for finding the products they want, in physical outlets shopping is done in only normal working hours which impact the work schedule and lifestyle of the customers. i. Better conversion rate If you have a website of your business organization, then your customers are only few clicks away from completing a purchase from your website. Unlike other media, e-marketing is seamless, which require people to get up and make a phone call, post a letter or go to a shop. VI. UNIQUE CHALLENGES OF E- MARKETING AND THE WAYS TO OVERCOME THEM Since late 1990s, there is a boom in the use of internet.hence, so many web-based companies have been starting up every day. What more is available? What are the new opportunities for growth?, is expanding the reach and capabilities of the cyberspace. But for all these some problems are faced by these industries which are unique in itself. Special set of challenges are faced by these web-based industries. In this article, we have taken a look at those and their possible solutions. 1. Marketing integration Multiple channels are employed by the sales efforts which are online and offline, e.g. advertising, social networking, outbound call handling and so on. The problem faced with these is that they are supposed to serve a concrete and measurable goal as part of an integrated campaign even though they are often handled as different parts of the work. So to coordinate all marketing efforts must be a priority. Alongside the traditional campaign, e-marketing should be done and should not be tacked at the end of the business plan. 2. Security and privacy Most people do not completely trust Web companies and, thus, they hesitate about offering information about themselves on the cyberspace. When companies that collect data are exposed to scammers and spammers,this is especially true. To adopt a sound policy and implement a fool-proof security measure, it becomes imperative for e-businesses. In a particular Encryption systems are a tool that online companies should seriously consider investing in. 3. Impersonal service Electronic methods of providing customer service are used by businesses which are operating online, such as posting and ing info on the website to answer possible user questions. Sometimes customers perceived this to as just too impersonal or uncaring. Merchants must develop efficient checkout procedures for selling goods via the Web, for addressing this problem. Hiring call handling services is also taken into consideration, so that customers can talk to real people when they have inquiries about problems that need instant answer. 270 P a g e

7 4. Improving brand awareness A big challenge for companies is that: primarily use the Internet to sell their products and services (tangible and intangible products). This is because, online adverts can be shut off by users unlike traditional advertising, (such as television, radio, billboard, and print) in which the campaign's message can be reinforced and repeatedly introduced to consumers at the marketers' will. So the challenge faced by web companies is to be more innovative in terms of advertisement. Other Challenges Are As Follows: 1. Dealing with the IT Department There is a circle of IT vs. marketing for a long time. But, it's a time to understand that we need to be partner with our IT friends to implement our marketing programs more efficiently. In simple sense, we need them and they need us or we can say that both complement each other. 2. Continuing Education Constant learning is needed by the marketers of 21 st Century. It is said that knowledge in marketing comes with an expiration date and continues professional development is a necessity for up gradation. Take a class, get a certification, read a book, attend a seminar or conference whatever works for you, but keep learning. 3. Bad Marketing Anyone can call themselves a web designer, marketer, consultant, SEO expert and so on. Poorly created and executed marketing programs degraded our profession and also create mistrust among clients, marketers and other related parties. By doing marketing in a right time or way helps you to tip the scale in favor of our own profession which helps in long run survival. 4. Lack of Trust In general, identity theft, Spam, intrusive advertising and technological glitches have left many mistrusting of marketing. You are either part of the problem or part of the solution, you have to decide it. 5. Know-It-Alls Nobody is able to fully understand all aspects of marketing. There is simply too much to know, and whatever you do to know is changing at supersonic speed. If you are going to be an expert, you will have to get specialization in one aspect of e-marketing. 6. Ethical Practices An unprecedented mass of un-ethical businesses has been spawned by the Internet. There have always been scam regarding bottom feeders and artists, but the Internet seems to have brought them out in epic numbers. Make sure that your own practices are squeaky clean and try to educate your customers about some of the pitfalls of e-commerce. 7. Corporate Culture In many companies every department "owns" the website and no department "owns" the website. Websites should belong to marketing, not finance/operations/ IT or legal. When the committee doesn't have a clue, it is difficult to produce good marketing by committee. Collaboration is an important in this situation and your associates should provide 100% input for this, but marketing should make the final decisions. 271 P a g e

8 8. International Commerce The Internet has made possible to provide products and services available around the world as close to customers and their living room (or wherever they have their computer). Unprecedented revenue flows in and out of foreign countries is allowed by this new world channel and that impact could eventually have a dramatic effect on our domestic economy. We have a lot in common with people of other countries in term of culture and traditions, but there are some differences as well which is known as Unity In Diversity. Understanding is the key for good international commerce as well as relations. 9. Intellectual Property It has never been easier to steal someone else's hard work. Everyday everything from music to software, movies and images are lifted from the Internet. This is a bad thing. 10. Customer Expectations Never before customers had expected too much. Managing your customer expectations is vital to marketers, because if you don't know your competitors will, you are not able to survive in long run in the market. Without customers you will not have a business because customer is treated as a king of market, so take the time to get to know them, treat them with due care and respect, and in the same way you want to be treated as a customer. VII. CONCLUSION E-mаrketing аlso offers businesses the opportunity to gаrner dаtа аbout their consumer bаse to аn extent thаt hаs till now been very difficult to аchieve viа trаditionаl mаrketing methods. The development of internet mаrketing аnd sociаl mediа аdvertising hаs led to exаmples of businesses in recent yeаrs thаt аppeаr to little more thаn cаtegories аnd filter informаtion relаting to products аnd services on the Internet, tаking а smаll cut from аny trаnsаction thаt mаy occur аs а result. In the next few yeаrs, online mаrketing in Indiа will strengthen even further. However, long-stаnding sustаinаbility directly depends on fаctors like chаnges in the mаrket, innovаtions аnd interаctivity by mаrket plаyers. Owing to increаsed penetrаtion of credit cаrds аnd eаsy аccess of computing witnessed а promising growth. Moreover, bаrgаin-hunting consumers аre lаtching on this trend аs Internet retаilers аre known to offer products аt speciаl discounted prices compаred to store-bаsed retаilers. Consumers in the country cаn now truly expect а well streаmlined, efficient аnd world-clаss shopping experience supported by the best technology. REFERENCES [1.] Karakaya F., T.E. Charlton., Electronic Commerce: Current and Future Practices, Managerial Finance, Vol. 27 (7), pp , [2.] Mohammed R., Internet Marketing, McGraw Hill, New York, Vol. 4, 2001 [3.] Coker B. L. S., Ashill N. J., Hope B., Measuring internet product purchase risk, European. [4.] Devi.C.S and Anita.M ( 2013) : E marketing challenges and opportunities pg retrieved from [5.] Shanker, Ravi (1998), Marketing on the Net, (Dissertation), Banaras Hindu University, Varanasi, India. 272 P a g e

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