PROJECT REPORT (RMB -451) ON "A study on effectiveness of Digital marketing in today's scenario" Master of Business Administration (MBA) Of Faculty of Management Science PDF

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PROJECT REPORT (RMB - 451) ON “A study on effectiveness of Digital marketing in today’s scenario” Master of Business Administration (MBA) Programme: 2017 - 19 Of Dr.A.P.J Abdul Kalam Technical University, Lucknow SUBMITTED BY CHITRESH LAHIRI MBA – 4th SEMESTER ROLL NO. 1701470007 Faculty of Manageme...

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PROJECT REPORT (RMB - 451) ON “A study on effectiveness of Digital marketing in today’s scenario” Master of Business Administration (MBA) Programme: 2017 - 19

Of

Dr.A.P.J Abdul Kalam Technical University, Lucknow SUBMITTED BY CHITRESH LAHIRI MBA – 4th SEMESTER ROLL NO. 1701470007

Faculty of Management Science Shri Ram Murti Smarak College of Engineering & Technology, Bareilly

CERTIFICATE

This is to certify that CHITRESH LAHIRI a regular student of MBA 2017 Batch has made project report on the topic of “A STUDY ON EFFECTIVENESS OF DIGITAL MARKETING IN TODAY’S SCENARIO” and this project is the part of MBA 4th semester. This Project Report embodies the facts and figures collected and interpreted by her during the course of Training.

(ANUJ KUMAR)

Date:

Head - MBA

Place: Bareilly

Page ii

DECLARATION

I, CHITRESH LAHIRI, student of MBA Faculty of Management Science Shri Ram Murti Smarak College of Engineering & Technology, Bareilly hereby declare that the project report on “A STUDY ON EFFECTIVENESS OF DIGITAL MARKETING IN TODAY’S SCENARIO” is an original and authenticated work done by me.

CHITRESH LAHIRI

MBA – IVth sem.

Page iii

ACKNOWLEDGEMENT I am using this opportunity to express my gratitude to everyone who supported me throughout the course of this project. I am thankful for their aspiring guidance, invaluably constructive criticism and friendly advice during the project work. I am sincerely grateful to them for sharing their truthful and illuminating views on a number of issues related to the project. I would also like to thank my project guide Mr. S. K. Suman Faculty of Management Science for her guidance which has resulted in successful completion of the project.

Chitresh Lahiri

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Table of Contents Chapters

Subject

Page No.

Chapter 1

Introduction to the study

01 – 03

Chapter 2

Literature Review

04 – 05

Chapter 3

Research Methodology

06 - 07

Chapter 4

Data Analysis and Interpretation

08 – 18

Chapter 5

Findings, Suggestions and Limitations

19 – 24

Bibliography Annexure

25 26 - 28

Page v

CHAPTER – 1 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

Chitresh Lahiri

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years and it’s a proven medium that fulfills all the objectives of advertising, can one have the same trust for online advertising… 1. The act of buying or selling in a market. 2. The total of activities involved in the transfer of goods from the producer or seller to the consumer or buyer, including advertising, shipping, storing, and selling. At the beginning of the century, social life was mostly local. It was followed by a period in which commodities were produced on a mass scale. Consumer Marketing operated on mass marketing principles and business primarily concerned itself with how to build the best sales force. At the end of the century, there is an emerging global culture. The major driver of these changes is technology. Technological change has moved steadily back focusing on the individual. These changes shape the possibility and conduct of business. Marketing is especially tied to communication and transportation revolution. As the tools and reach of marketing increase, the job and responsibilities of marketers have evolved with them. Philip Kotler formalized this evolution with his book "Marketing Management". His key stages are production, sales and brand management. Each of these is strongly motivated by technological opportunities, which permit new methods and new opportunities. A fourth stage, a focus on the individual customer, is also important. As the new technology of the Internet develops, it reinforces the new marketing emphasis - which in many ways is a return to business at the turn of the century.

Chitresh Lahiri

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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.

 RESEARCH OBJECTIVES  To compare the trust level of traditional advertising and digital advertising (consumers point of view)  To find the effectiveness of digital advertising (reach and creation of awareness)  To find the reliability of digital advertising (recall and remembrance)

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CHAPTER – 2 LITERATURE REVIEW  Chaffey, 2013 The purpose of doing research in the area of digital marketing is because it seem 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 realtime 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 analyzing 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 take action 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.

Chitresh Lahiri

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 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. In order 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.

Chitresh Lahiri

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CHAPTER – 3 RESEARCH METHODOLOGY  RESEARCH DESIGN This is a 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  Secondary data: Online reports related to advertising  Primary data: Questionnaire, Personal Interview, Interview with Marketing Professional

 SAMPLE UNIVERSE Basis of sampling:  Sample should be a user of internet or should have knowledge about internet  50 numbers in all

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 SAMPLING TECHNIQUE Judgmental Non Probability sampling can be used to select the individual units for better productivity of the questionnaire. A well educated person may be able to reason out the questions in the better way.

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CHAPTER – 4 DATA ANALYSIS AND INTERPRETATION Q.1 WHAT DO YOU THINK ABOUT DIGITAL MARKETING? Attitude towards Advertisements One can clearly make out that consumers perceive advertisements as a source of information and awareness, be it general or towards TV commercials.

Attitude towards Ads 3%

3% 3% 35%

Informative Entetaining

31%

Creates awareness Irritating 25%

Annoying Waste of time

INTERPRETATION 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 35% think digital marketing as informative purpose while only 3% feel as annoying and irritating. Chitresh Lahiri

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Q.2

DO

YOU

WATCH

THE

TV/RADIO

COMMERCIALS

DURING

COMMERCIAL BREAK?

Attitude towards TV/Radio Ads

5%

11% 30% Informative

11%

Entertaining Creates awareness Irritating

19% 24%

Annoying Waste of time

INTERPRETATION From above chart and survey done around 30% watch for informative purpose other 11% just watch to waste time.

Chitresh Lahiri

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Q.3 WHICH MODE OF ADVERTISING INFLUENCES YOU TO BUY/ SUGGEST PRODUCT?

Influencers Magazines and newspaper 6%

8%

17% Friends and relatives

29% 40%

TV Commercial

Online advertisement

INTERPRETATION

As above seen consumer are more influence by friends and relative of 40% Where online advertisement is only 6% as survey from different consumer is from friends and relative.

Chitresh Lahiri

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Q.4 WHICH MODE OF ADVERTISMENT WOULD YOU PREFERS?

Consumer preference of advertising

Preference

17% 34%

TV Commercials Print Ads: Newspaper,Magazines

18%

OOH: Banners, Posters 31% Online Ads: Banners, Email

INTERPRETATION Again, one can easily make out that traditional form of advertising has an edge over internet advertising in terms of consumer preference mode of advertising. Traditional mode got over31% preferences than that of internet advertising which is a huge margin. The reason for this is same as that of influencer, i.e. cultural attitude of consumers towards advertising. Consumers would prefer to check out ATL elements in case there is a need i.e. information search and take their decision in terms of purchasing.

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Q.5 WHICH MODE OF ADVERTISING YOU TRUST?

Consumers Trust on advertising

17% 36%

RECOMMENDATION FROM CONSUMER

RADIO TV

31%

16%

NEWSPAPER

INTERPRETATION The above is the chart for trust level of advertisement medium from consumer’s point of view. Again recommendation and traditional advertisement are a leap ahead of online mobile and BTL form of advertising. One can say that Indian mentality towards online form of advertising is still at the baseline and that of mobile is even worse.

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Q.6 I CHANGE CHANNEL DURING COMMERCIAL BREAKS?

I see/check online Ads

21%

Its depends

79%

Never

0%

10%

20%

30%

40%

50%

60%

70%

80%

INTERPRETATION According to the survey, around of course there are people (21%) who change channels during breaks but not always. In fact, according to the survey there was no one who change the channel each and every time. Effectively, 79% of viewers will see the advertisement if the ad is attractive and appealing. Hence there is a probability of .79 of a consumer viewing the particular advertisement (for creating awareness and information) on television making it an effective mode of communication. As it is, it is the second most trusted mode of communication in the minds of people.

Chitresh Lahiri

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Q.7 DOES YOU SEE/CHECK ONLINE ADS/MAILS WHEN YOU SURF THE INTERNET?

I change the channel during Ads

63.%

It depends

26%.

Often

11%

Sommetimes

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

INTERPRETATION Whereas in case of online advertising, around 63% of consumers ignore it completely, i.e. they don’t even see them and that of 21% see them if they find it to be attractive. Out of that 26%, 11% 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.

Chitresh Lahiri

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Effectively, only 6% saw the online advertisement coz they were of their interest or was attractive. Some said they liked few ads coz of their interactivity and animation effects. This might give that flash ads are more appealing. Trust levels of online advertisements are at the bottom of the list. Hence considering the trust levels and the effective impression, one can conclude that it is not an effective mode of communication.

Chitresh Lahiri

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Q.8 YOU USE INTERNET FOR?

Internet usage

14%

18% Chatting and Social Networking

1%

Email

12%

Information Entertainment 30%

E-Commerce Downloading

25%

INTERPRETATION From above survey: 1. Around 18% use internet for chatting like facebook, whatsapp, etc. 2. 30% use email as part of their business 3. It is bad that 1% is doing e commerce 4. 14% consumer only do downloading from internet.

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Q.9 YOU CANNOT LIVE WITHOUT?

INTERPRETATION From the above survey mostly youngster about 18/25 years of age has selected computer with internet with50% It was strange that mo one selected books as no one can live without online sites.

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Q.10 DO YOU THINK THAT THE FACE OF ADVT IS TRANSFORMING IN TERMS OF TECHNOLOGICAL AND CULTURAL IMPACT?

AD.CULTURAL IMPACT

INTERPRETATION From the above survey made on September Around 60 % has given positive reply on cultural impact such As standard of living, income etc But around 40% 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

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CHAPTER – 5 FINDINGS, LIMITATIONS & SUGGESTIONS  FINDINGS  This clearly shows a positive attitude toward them and hence is a good indication for marketers; as from above survey only 35% think digital marketing as informative purpose while only 3% feel as annoying and irritating.  From above chart and survey done around 30% watch for informative purpose other 11% just watch to waste time.  As above seen consumer are more influence by friends and relative of 40% Where online advertisement is only 6% as survey from different consumer is from friends and relative.  Traditional mode got over31% preferences than that of internet advertising which is a huge margin. The reason for this is same as that of influencer, i.e. cultural attitude of consumers towards advertising.  The above is the chart for trust level of advertisement medium from consumer’s point of view. Again recommendation and traditional advertisement are a leap ahead of online mobile and BTL form of advertising. One can say that Indian

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mentality towards online form of advertising is still at the baseline and that of mobile is even worse.  According to the survey, around of course there are people (21%) who change channels during breaks but not always. In fact, according to the survey there was no one who change the channel each and every time. Effectively, 79% of viewers will see the advertisement if the ad is attractive and appealing.  Whereas in case of online advertising, around 63% of consumers ignore it completely, i.e. they don’t even see them and that of 21% see them if they find it to be attractive. Out of that 26%, 11% 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.  -

Around 18% use internet for chatting like facebook, whatsapp, etc.

-

30% use email as part of their business

-

It is bad that 1% is doing e commerce

-

14% consumer only does downloading from internet.

 From the above survey mostly youngster about 18/25 years of age has selected computer with internet with50% It was strange that mo one selected books as no one can live without online sites.  From the above survey made on September Around 60 % has given positive reply on cultural impact such As standard of living, income etc But around 40% has given neg...