“An empirical study of online advertising and paid ads with reference
to mydeals247.com”
By Fernandes Prengle IV Semester MBA
Reg.No: 12MB6525
Guide Prof. Sreeranjan Menon
Project Report submitted to the University of Mysore in partial fulfillment of the requirements of IV Semester MBA degree examinations 2012 – 2014 2014
National School of Business #33, 22nd Main, 1st Cross, Phase – Phase – II, II, JP Nagar, Bangalore – Bangalore – 560 560 078
“An empirical study of online advertising and paid ads with reference
to mydeals247.com”
By Fernandes Prengle IV Semester MBA
Reg.No: 12MB6525
Guide Prof. Sreeranjan Menon
Project Report submitted to the University of Mysore in partial fulfillment of the requirements of IV Semester MBA degree examinations 2012 – 2014 2014
National School of Business nd
st
#33, 22 Main, 1 Cross, Phase –II, Phase – II, JP Nagar, Bangalore – 560 Bangalore – 560 078
“An empirical study of online advertising and paid ads with reference
to mydeals247.com”
By Fernandes Prengle IV Semester MBA
Reg.No: 12MB6525
Guide Prof. Sreeranjan Menon
Project Report submitted to the University of Mysore in partial fulfillment of the requirements of IV Semester MBA degree examinations 2012 – 2014 2014
National School of Business nd
st
#33, 22 Main, 1 Cross, Phase –II, Phase – II, JP Nagar, Bangalore – 560 Bangalore – 560 078
CERTIFICATE
This is to certify that the project work ―An empirical study of online advertising and paid ads with reference to mydeals247.com‖ mydeals247.com‖ submitted to University of Mysore in partial fulfilment of the requirements for the award of the degree of Master of Business Administration in IV semester is a record of the original work done by Fernandes Prengle under my supervision and guidance and this project work has not formed the basis for the award of Degree or similar title to any candidate of any University.
Signature of Director.
Signature of Guide.
i
DECLARATION
I, FERNANDES PRENGLE student of Master of Business Administration 4th semester in Marketing, At National School of Business, Bangalore, hereby declare that the Internship Work report having the title ―An empirical study of online advertising and paid ads with reference to mydeals247.com‖ is the outcome of my own work and the same has not been submitted to any university/college. All the information and data in my project are authentic to the best of my knowledge and taken from reliable sources.
ii
29th September, 2013 Bangalore
INTERNSHIP EXPERIENCE LETTER
This is to certify that Mr. Fernandes Prengle, MBA student of National School of Business has satisfactorily completed his Internship project titled “Study of online advertising and paid ads of Mydeals247” in our organization under the guidance of Mr. Shashikanth Kabra, (VP for Business Development) for a period of 29th july to 29th september,2013. During his tenure we found his performance satisfactory and he was found hardworking and diligent. During the period his conduct and character were good.
We wish him success in all his future endeavors.
Contact No:8050001079 Mydeals247 Ecommerce Pvt. Ltd.
iii
ACKNOWLEDGEMENT
I have taken efforts in this project. However, it would not have been possible without the kind support and help of many individuals and organization. I would like to extend my sincere thanks to all of them. I am highly indebted to Mr. Shashikanth Kabra for his guidance and constant supervision as well as for providing necessary information regarding the project and also for his support in completing the project. I would like to express my gratitude towards member of mydeals247.com for their kind cooperation and encouragement which help me in completion of this project. I would also like to thank my guide Prof. Sreeranjan Menon who helped me in finishing this project. I would like to express my special gratitude and thanks to industry persons for giving me such attention and time. My thanks and appreciations also go to my colleague in developing the project and people who have willingly helped me out with their abilities.
iv
Content Introduction………………………………………………………………………...1 Chapter I literature review………………………………………………………….5 1.1 What is e-commerce…………………………………………………………..6 1.2 E-commerce in India………………………………………………………...11 1.3 How an e-commerce website works…………………………………………15 Chapter II company profile……………………………………………………….18 2.1 About the company…………………………………………………………..19 2.2 Introduces personalised Ad display & pay per lead model………………….21 2.3 Business structure & policies of mydeals247 .com…………………………..26 2.4 Getting star ted……………………………………………………………….29 2.5 SWOT analysis………………………………………………………………31 2.6 Different competitors for mydeals247.com………………………………….32 Chapter III internship profile……………………………………………………...38 3.1 Internship profile…………………………………………………………….39 Chapter IV advertisement…………………………………………………………42 4.1 Advertising…………………………………………………………….…….43 4.2 The vision for the rol e of digital media……………………….…….……….44 4.3 History……………………………………………………….….…………...46 4.4 Delivery methods…………………………………………..………………...48 4.5 Advertising of mydeals247.com…………………………………………….56 Chapter V Findings………………………………………………………………..60 5.1 Analysis and results………………………………………………………….61
v
Chapter VI Summary of findings…………..……………………………………..73 findings…………..…………………………………….. 73 6.1 Data analysis……………………………………………………………….. analysis………………………………………………………………...74 .74 6.2 Conclusion……………………………………………………………...……75 Conclusion……………………………………………………………...……75 6.3 Recommendation…………………………………………………..….……..76 Recommendation…………………………………………………..….……..76 Chapter VII annexure………………………………………………..……………77 7.1 questionnaire………………………………………………………………...78 questionnaire ………………………………………………………………...78 Bibliography………………………………………..……………………………..79
vi
List of tables 5.1 Gender ……………………………………………………………………..…61 ……………………………………………………………………..…61 5.2 Age…………………………………………………………………...……….62 Age…………………………………………………………………...……….62 5.3 Occupation……………………………………………………………...……..63 Occupation……………………………………………………………...……..63 5.4 Income level……………………………………………………………..……64 level……………………………………………………………..……64 5.5 Internet usage……………………………………………………………..…..65 u sage……………………………………………………………..…..65 5.6 Usef ulness………………………………………………………..……………66 ulness………………………………………………………..……………66 5.7 Click on advertisement……………………………………………..…………67 adv ertisement……………………………………………..…………67 5.8 Reads after clicking……………………………………………………..…….68 c licking……………………………………………………..…….68 5.9 Productivity……………………………………………………..…………….69 Produ ctivity……………………………………………………..…………….69 5.10 Paid advertisements…………………………………………..………… adv ertisements…………………………………………..………… .…..70 5.11 Online marketing marketin g growth………………………………………………….....71 growth………………………………………………….. ...71 5.12 Internet marketing overtaking tra ditional marketing………………………...72 marketing……………………….. .72
vii
List of figures 1.1 Aranca research, IBEF report, 2012………………………………………..… 2012………………………………………..…13 13 1.2 Aranca research, IBEF r eport, eport, 2012…………………………………………..14 2012………………………………………….. 14 1.3 Functioning of an e-commerce e-com merce web…………………………………………..15 web…………………………………………..15 2.1 Organisational str ucture……………………………………………………….28 ucture………………………………………………………. 28 5.1 Gender ……………………………………………………………….………..61 ……………………………………………………………….………..61 5.2 Age………………………………………………………….………………. Age………………………………………………………….………………...62 ..62 5.3 Occupation…………………………………………..……………………….. .63 5.4 Income Income level………………………………………….……………………….64 level………………………………………….……………………….64 5.5 Internet Internet usage…………………………………………..……………………...65 usage…………………………………………..……………………...65 5.6 Usefulness……………………………………..………………………………66 Usefulness……………………………………..………………………………66 5.7 Click on advertisement…………………………..……………………………67 5.8 Reads after clicking…………………………………..……………………….68 5.9 5.9 Productivity…………………………………………………………………...69 Productivity…………………………………………………………………... 69 5.10 Paid Paid advertisements………………………..………………………………...70 advertisements………………………..……………………………….. .70 5.11 Online marketing marketing growth………………………………..…………………...71 5.12 Internet marketing overtaking trad itional marketing………………………...72 marketing………………………... 72
viii
Introduction Online advertising, also called Internet advertising, uses the Internet to deliver promotional marketing messages to consumers. It includes email marketing, search engine marketing, social media marketing, many types of display advertising (including web banner advertising), and mobile advertising. Like other advertising media, online advertising frequently involves both a publisher, who integrates advertisements into its online content, and an advertiser, who provides the advertisements to be displayed on the publisher‘s content. Other potential participants include advertising agencies who help to generate and place the ad copy, an ad server who technologically delivers the ad and tracks statistics, and advertising affiliates who do independent promotional work for the advertiser. Online advertising is a large business and is growing rapidly. In 2011, Internet advertising revenues in the United States surpassed those of cable television and nearly exceeded those of broadcast television. In 2012, Internet advertising revenues in the United States totalled $36.57 billion, a 15.2% increase over the $31.74 billion in revenues in 2011. Online advertising is widely used across virtually all industry sectors.
TITLE:
―An empirical study of online advertising and paid ads with reference to mydeals247.com‖ NEED OF THE STUDY: Over the past five years, advertising budgets allocated to internet media have grown spectacularly. This growth is significantly fuelled by search and performance tools (affiliate marketing, email, comparison websites, etc.), although display advertising continues to represent a large portion of online budgets:
1
Two trends are driving this boom:
• An increase in Web usage which strengthens the internet‘s role in providing recommendations and preparing consumers to make purchases and recommendations • Developments in targeted advertising formats and techniques which help shape more communicative and relevant online campaigns.
Although the internet is by nature a quantifiable medium, online strategies are not yet adequately based on a suitable performance measure. Advertisers realise that measuring performance is an important issue, but for the most part they face difficulties in implementing appropriate methods and indicators. This is first of all put down to a lack of resources, but other reasons often alluded to are organisation, tools and the need to strengthen expertise.
This new environment has prompted advertisers to consider several fundamental questions:
• Which media mix should be used to achieve an optimum communications strategy? • How can digital media be most effectively combined with other media? • How do online communications influence a brand‘s image and reputation? • How can the impact that online advertising has on bricks-and-mortar distribution networks be measured? • Which targeted advertising formats and techniques are best suited to the marketing objectives?
Aside from traditional click through rates, the limitations of which are outlined in this study, there are several indicators available to advertisers, including the web-based gross rating point (GRP), return on investment (ROI), media post-tests, exposure time and the engagement rate. However, it is important to define in which framework and with which objectives these resources should be used.
The purpose of this study is to identify the different ways of measuring the effectiveness of online advertising. It is aimed at online marketing and media buying professionals and, more generally, at all departments involved in digital media.
2
My study focuses on measuring the performance of display advertising and covers five key approaches: • Measuring the impact of online campaigns on offline sales • Measuring media mix effectiveness • Analysing the impact of online advertising on browsing behaviour • Assessing the impact of targeting on all aspects of the campaign • Defining an online communications strategy
RESEARCH METHODOLOGY: Primary data: Through questionnaire. Secondary data: It will be collected from company or internet and other source. Sample unit: Anyone who has more than 3 to 5 years‘ experience.
3
SCOPE OF THE STUDY: Every businessman is interested in increasing the popularity of his product and service and at the same time to increase the profit motive is the main aim of the entrepreneur. Advertising provides valuable help to these businessmen for increasing their sales as well as profit targets. There are various mediums of advertising in the current scenario that have emerged and aim at taking the business to new highs. Internet is one such medium of advertising where the product can have a vast reach and increased sponsorship. Various developing nations have become a sizeable market for advertising their products. In today‘s economy every business faces a tight competition from its counterpart. This makes the way for easily hiring online advertisers as well as agencies. If the advertising agency has a proper planning and coordination mechanism running advertisements on the Internet become much easier. Online advertising is a valuable tool for the advertisers as it can reach a vast majority of population. People of all ages surf the net every day and this can become one of the plus points for advertisers. This form of advertising is not restricted to any time zone or geographical boundaries. The search engines index pages on a regular basis and a common buyer can also find a product according to his needs by putting a search phrase in Google or Yahoo. A professional Internet advertising agency can handle your tasks properly if you want to put a banner advertisement for your product.
4
Chapter I Literature Review
5
1.1 What is e-commerce? Electronic commerce, commonly known as e-commerce, is a type of industry where the buying and selling of products or services is conducted over electronic systems such as the Internet and other computer networks. Electronic commerce draws on technologies such as mobile commerce, electronic funds transfer, supply chain management, Internet marketing, online transaction processing, electronic data interchange (EDI), inventory management systems, and automated data collection systems. Modern electronic commerce typically uses the World Wide Web at least at one point in the transaction's life-cycle, although it may encompass a wider range of technologies such as e-mail, mobile devices social media, and telephones as well. Electronic commerce is generally considered to be the sales aspect of e-business. It also consists of the exchange of data to facilitate the financing and payment aspects of business transactions. This is an effective and efficient way of communicating within an organization and one of the most effective and useful ways of conducting business.
E-commerce can be divided into:
E-tailing or "virtual storefronts" on websites with online catalogs, sometimes gathered into a "virtual mall"
Buying or selling on various websites and/or online marketplaces
The gathering and use of demographic data through Web contacts and social media
Electronic Data Interchange (EDI), the business-to-business exchange of data
E-mail and fax and their use as media for reaching prospective and established customers (for example, with newsletters)
Business-to-business buying and selling
The security of business transactions
6
A timeline for the development of e-commerce:
1971 or 1972: The ARPANET is used to arrange a cannabis sale between students at the Stanford Artificial Intelligence Laboratory and the Massachusetts Institute of Technology, later described as "the seminal act of e-commerce" in John Markoff's book What the Dormouse Said.
1979: Michael Aldrich demonstrates the first online shopping system.
1982: Minitel was introduced nationwide in France by France Telecom and used for online ordering.
1983: California State Assembly holds first hearing on "electronic commerce" in Volcano, California. Testifying are CPUC, MCI Mail, Prodigy, CompuServe, Volcano Telephone, and Pacific Telesis. (Not permitted to testify is Quantum Technology, later to become AOL.)
1984: Gateshead SIS/Tesco is first B2C online shopping and Mrs Snowball, 72, is the first online home shopper.
1984: In April 1984, CompuServe launches the Electronic Mall in the USA and Canada. It is the first comprehensive electronic commerce service.
1984: California becomes first US state to enact an Electronic Commerce Act defining basic consumer rights online.[citation needed]
1990: Tim Berners-Lee writes the first web browser, Worldwide Web, using a NeXT computer.
1992: Book Stacks Unlimited in Cleveland opens a commercial sales website (www.books.com) selling books online with credit card processing.
1992: St. Martin's Press publishes J.H. Snider and Terra Ziporyn's Future Shop: How New Technologies Will Change the Way We Shop and What We Buy.
1992: Terry Brownell launches a fully graphical, iconic navigated Bulletin board system online shopping using RoboBOARD/FX.[citation needed]
1993: Paget Press releases edition No. 3 of the first [citation needed] AppStore, The Electronic AppWrapper.
1994: Netscape releases the Navigator browser in October under the code name Mozilla. Netscape 1.0 is introduced in late 1994 with SSL encryption that made transactions secure.
1995: The US National Science Foundation lifts its former strict prohibition of commercial enterprise on the Internet.
1995: Thursday 27 April 1995, the purchase of a book by Paul Stanfield, Product Manager for CompuServe UK, from W H Smith's shop within CompuServe's UK Shopping Centre is the UK's first national online shopping service secure transaction. The shopping service at launch 7
featured W H Smith, Tesco, Virgin Megastores/Our Price, Great Universal Stores (GUS), Interflora, Dixons Retail, Past Times, PC World (retailer) and Innovations.
1995: Jeff Bezos launches Amazon.com and the first commercial-free 24-hour, internet-only radio stations, Radio HK and Net Radio start broadcasting. Dell and Cisco begin to aggressively use Internet for commercial transactions.[citation needed] eBay is founded by computer programmer Pierre Omidyar as Auction Web.
1996: IndiaMART B2B marketplace established in India.
1996: ECPlaza B2B marketplace established in Korea.
1996: Seller deck, formerly Actinic, the UK's first PC/LAN e-commerce platform established.[citation needed]
1998: Electronic postal stamps can be purchased and downloaded for printing from the Web.
1999: Alibaba Group is established in China. Business.com sold for US $7.5 million to eCompanies, which was purchased in 1997 for US $149,000. The peer-to-peer file sharing software Napster launches. ATG Stores launches to sell decorative items for the home online.
2000: The dot-com bust.
2001: Alibaba.com achieved profitability in December 2001.
2002: eBay acquires PayPal for $1.5 billion. Niche retail companies Way fair and Net Shops are founded with the concept of selling products through several targeted domains, rather than a central portal.
2003: Amazon.com posts first yearly profit.
2004: DHgate.com, China's first online b2b transaction platform, is established, forcing other b2b sites to move away from the "yellow pages" model.
2007: Business.com acquired by R.H. Donnelley for $345 million.
2009: Zappos.com acquired by Amazon.com for $928 million. Retail Convergence, operator of private sale website RueLaLa.com, acquired by GSI Commerce for $180 million, plus up to $170 million in earn-out payments based on performance through 2012.
2010: Group on reportedly rejects a $6 billion offer from Google. Instead, the group buying websites went ahead with an IPO on 4 November 2011. It was the largest IPO since Google.
2011: Quidsi.com, parent company of Diapers.com, acquired by Amazon.com for $500 million in cash plus $45 million in debt and other obligations.[19] GSI Commerce, a company specializing in creating, developing and running online shopping sites for brick and mortar businesses, acquired by eBay for $2.4 billion. 8
2012: US e-commerce and Online Retail sales projected to reach $226 billion, an increase of 12 per cent over 2011.
2012: US e-commerce and Online Retail holiday sales reach $33.8 billion, up 13 per cent.
Some common applications related to electronic commerce are the following:
Document automation in supply chain and logistics.
Domestic and international payment systems
Enterprise content management
Group buying
Automated online assistants
Instant messaging
Newsgroups
Online shopping and order tracking
Online banking
Online office suites
Shopping cart software
Teleconferencing
Electronic tickets
Social networking
Forms: Contemporary electronic commerce involves everything from ordering "digital" content for immediate online consumption, to ordering conventional goods and services, to "meta" services to facilitate other types of electronic commerce. On the institutional level, big corporations and financial institutions use the internet to exchange financial data to facilitate domestic and international business. Data integrity and security are very hot and pressing issues for electronic commerce.
9
Global trends: In 2010, the United Kingdom had the biggest e-commerce market in the world when measured by the amount spent per capita. The Czech Republic is the European country where ecommerce delivers the biggest contribution to the enterprises´ total revenue. Almost a quarter (24%) of the country´s total turnover is generated via the online channel. Amongst emerging economies, China's e-commerce presence continues to expand. With 384 million internet users, China's online shopping sales rose to $36.6 billion in 2009 and one of the reasons behind the huge growth has been the improved trust level for shoppers. The Chinese retailers have been able to help consumers feel more comfortable shopping online. China's cross-border e-commerce is also growing rapidly. E-commerce transactions between China and other countries increased 32% to 2.3 trillion Yuan ($375.8 billion) in 2012 and accounted for 9.6% of China's total international trade. E-Commerce is also expanding across the Middle East. Having recorded the world's fastest growth in internet usage between 2000 and 2009, the region is now home to more than 60 million internet users. Retail, travel and gaming are the region's top E-Commerce segments, in spite of difficulties such as the lack of region-wide legal frameworks and logistical problems in cross-border transportation. E-Commerce has become an important tool for businesses worldwide not only to sell to customers but also to engage them.
Impact on markets and retailers: Economists have theorized that e-commerce ought to lead to intensified price competition, as it increases consumers' ability to gather information about products and prices. Research by four economists at the University of Chicago has found that the growth of online shopping has also affected industry structure in two areas that have seen significant growth in e-commerce, bookshops and travel agencies. Generally, larger firms have grown at the expense of smaller ones, as they are able to use economies of scale and offer lower prices. The lone exception to this pattern has been the very smallest category of bookseller, shops with between one and four employees, which appear to have withstood the trend. 10
1.2 E-commerce in India India has an internet user base of about 137 million as of June 2012. The penetration of ecommerce is low compared to markets like the United States and the United Kingdom but is growing at a much faster rate with a large number of new entrants. The industry consensus is that growth is at an inflection point. Unique to India (and potentially to other developing countries), cash on delivery is a preferred payment method. India has a vibrant cash economy as a result of which 80% of Indian ecommerce tends to be Cash on Delivery. Similarly, direct imports constitute a large component of online sales. Demand for international consumer products (including long-tail items) is growing much faster than in-country supply from authorised distributors and e-commerce offerings. India's e-commerce market was worth about $2.5 billion in 2009, it went up to $6.3 billion in 2011 and to $14 billion in 2012. About 75% of this is travel related (airline tickets, railway tickets, hotel bookings, online mobile recharge etc.). Online Retailing comprises about 12.5% ($300 Million as of 2009). India has close to 10 million online shoppers and is growing at an estimated 30% CAGR vis-à-vis a global growth rate of 8 – 10%. Electronics and Apparel are the biggest categories in terms of sales.
Key drivers in Indian e-commerce are:
Increasing broadband Internet (growing at 20% MoM) and 3G penetration]
Rising standards of living and a burgeoning, upwardly mobile middle class with high disposable incomes
Availability of much wider product range (including long tail and Direct Imports) compared to what is available at brick and mortar retailers
Busy lifestyles, urban traffic congestion and lack of time for offline shopping
Lower prices compared to brick and mortar retail driven by disintermediation and reduced inventory and real estate costs
Increased usage of online classified sites, with more consumer buying and selling second-hand goods
11
Evolution of the online marketplace model with sites like eBay, Infibeam, and Tradus. The evolution of ecommerce has come a full circle with marketplace models taking centre stage again. India's retail market is estimated at $470 billion in 2011 and is expected to grow to $675 Bn by 2016 and $850 Bn by 2020, – estimated CAGR of 7%. According to Forrester, the e-commerce market in India is set to grow the fastest within the Asia-Pacific Region at a CAGR of over 57% between 2012 – 16. As per "India Goes Digital", a report by Avendus Capital, a leading Indian Investment Bank specializing in digital media and technology sector, the Indian e-commerce market is estimated at Rs 28,500 Crore ($6.3 billion) for the year 2011. Online travel constitutes a sizable portion (87%) of this market today. Online travel market in India is expected to grow at a rate of 22% over the next 4 years and reach Rs 54,800 Crore ($12.2 billion) in size by 2015. Indian e-tailing industry is estimated at Rs 3,600 crore (US$800 mn) in 2011 and estimated to grow to Rs 53,000 Crore ($11.8 billion) in 2015. Overall e-commerce market is expected to reach Rs 1,07,800 crores (US$ 24 billion) by the year 2015 with both online travel and e-tailing contributing equally. Another big segment in ecommerce is mobile/DTH recharge with nearly 1 million transactions daily by operator websites like Airtel.in, Vodafone.in and third party sites like paytm.com, rechargeitnow.com.
Top 10 e-commerce website in India:
flipkart.com
ebay.com
snapdeal.com
jabong.com
yebhi.com
myntra.com
naaptol.com
tradus.com
fashionandyou.com
infibeam.com 12
Growth of e-commerce over the years (figures in INR crores)
70000 60000 50000 40000 30000 20000 10000 0 2009
2010
2011
2012
2013
Figure 1.1: Aranca Research, IBEF Report, 2012
2009 – 19,249 2010 – 26,263 2011 – 35,142 2012 – 47,349 2013 – 62,967 (expected)
The ecommerce market in India is expected to grow by 33 per cent to reach Rs 62,967 crores by the end of 2013 predicted a report released by the Internet and Mobile Association of India (IAMAI) and IMRB International.
13
Componants of e-commerce in India 2012 (INR 47,349 crores)
Financial Service 6%
Classified 5%
Other online 2%
E-tailing 16% Online Travel 71%
Figure 1.2: Aranca Research, IBEF Report, 2012
The
ecommerce
market
was
valued
at
Rs
47,349
cr
in
December
2012.
As per the findings, Online Travel (booking rail, air, bus tickets, hotel accommodations, tour packages) comprised a majority 71 per cent of the whole Digital-Commerce pie in 2012. While e-tailing, which includes purchases of various consumer products/services constituted 16 per cent of the overall share.
Financial Services, which include services such as paying insurance premiums and renewals, paying utility and mobile bills, trading shares and securities amounted to 6 per cent of the overall share. B2B and B2C Classifieds (jobs, matrimony, car, real estate etc.) contributed 5 per cent, whereas other online services such as online entertainment ticketing, online food delivery, buying discounts/deals/vouchers etc. constituted 2 per cent of the overall digital commerce market in 2012.
14
1.3 How an e-commerce website works?
Customer
E-commerce website
Shipping provider
Payment processor
Product database
Admin interface
you
Figure 1.3: functioning of an e-commerce website
15
E-Commerce is driven by the software, so the exact way it works depends on the shopping cart software you select. There are several components, however, that make up any online shopping cart solution:
Web Hosting – The foundation of a good online store is a good Web server to host it on. Some
shopping carts come packaged with a specific hosting provider or product. Others can run on a variety of Web servers and are offered by a wide range of Web hosting providers. Factors such as support, reliability, bandwidth, features, and cost will drive your hosting provider selection. You may already have a Web site through a provider you are happy with where you can put your online store.
Merchant Interface – The merchant interface is the tool you use to manage your online store.
It's what you use to set up and use all the other tools. It's more important to have a usable merchant interface than having a fancy-looking complex interface. On the other hand, if your merchant interface is too simple, you lose flexibility. A good merchant interface has to strike a balance between these opposing requirements. ShopSite is an incredibly powerful and flexible Shopping Cart, but the merchant interface is kept as simple and straight- forward as possible. In addition, there are a variety of wizards and tools to optimize common or complex tasks.
Product Catalog – Your product catalog is what your customers see, and how they find out
about the products you're selling. It is the part of your online store where you want to invest the majority of your time and effort. Just like a printed catalog, your online catalog consists of products and pages. The pages create the structure of the catalog, but they also establish the look of the catalog. The pages are also one of the main ways you will present product information to your customers. The way you design your pages and how you present your products will have a significant impact on how potential customers perceive your store.
Shopping Cart – The shopping cart is what your customers will use to place orders. Customers
add the products they want to purchase to the cart, provide information about shipping and payment, then submit the order. Like the product catalog, how the shopping cart looks has an impact on customer perception.
16
More importantly, however, how your shopping cart works can make the difference between an abandoned or completed sale. One of the biggest turn-offs for potential customers comes from not knowing the final price until they've completed several tedious forms.
Payment Processing – Accepting payments is the backbone of any online store; without it,
customers can't place orders. If you have a brick-and-mortar store, you probably already have a system for processing credit card payments. Online payment processing is a similar process; customers enter payment information, which gets forwarded to a payment gateway that validates the information and confirms available funds, then transfers the funds to your merchant account. There are many different payment gateway and merchant account providers, as well as online payment services such as PayPal and Google Checkout.
Shipping – Once you get an order, you need to gather the products, prepare them for shipping
and then send them to the customer. You will need to plan how you will handle the various costs and effort this involves. It's common practice for online merchants to pass this cost on to the customers — although offering free shipping is great incentive to get customers to buy from you. There are also different shipping services, such as next-day, second-day, and ground shipping, which you may want to offer your customers. With all of this, your customers want to know what their shipping costs will be before they place an order.
Tax Calculation – Calculating, collecting, and paying appropriate sales tax is another part of
your online store that you need to consider. How you handle it depends on the laws where your business is.In the United States, for example, you are currently only required to collect sales tax for orders shipped within the state your company operates from (your customers are responsible for paying sales tax in their home state otherwise). In Europe, you are responsible for collecting and paying Value Added Tax (VAT) based off your business location, your customer's location, and the type of product you are selling.
Advertising – Drawing customers to your Web site is a critical part of any online store and good
shopping cart software includes features to help you with this task. One key element of advertising an online store is making sure it shows up in the popular search engines, such as Google, Ask, and Yahoo!. Another excellent advertising tool is E-mail marketing, particularly to customers who have bought from you before.
17
CHAPTER II Company Profile
18
2.1 About the Company : MyDeals247 E-Commerce Pvt. Ltd is the world‘s first personalized ecommerce platform which was started in the year 2009 and based in Bangalore having Global headquarters at California(USA).MyDeals247 is different from other ecommerce players in today‘s market. MyDeals247 brings the lowest offers from the sellers based on buyer‘s request in the local markets MyDeals247 acts as a facilitator between Seller and the Buyer and make sure that the buyer would be getting the best product/service for the best price by creating healthy competition among the sellers who are associated with MyDeals247.
MyDeals247 has three unique business models:
A Real-Time Market Place (Buy / Sell Model)
Volume Based Discounts
Personalized Ad display and ‗Pay-Per Lead‘ model
MyDeals247.com offers revolution technology in the e-commerce industry which identifies individual's preferences, interests, then delivers on-the-fly adjustments that make each customer feel the site was built just for him/her. MyDeals247 brings the lowest offers from the sellers based on buyer‘s request in the local markets all the bids from sellers happens real time. Also, MyDeals247.com provides the current need analytics to the sellers in the local markets.
MyDeals247 has won awards for its innovative business model all over the world
Online Retail Awards, UK
Finn-ovate Asia Awards, Singapore
19
A Real-Time Market Place (Buy / Sell Model): No inventory on the website everything starts from the consumer interest. System notifies the consumer requests to all the sellers whoever selling the particular product or service along with the consumer's budget. Sellers make offers against the consumer request along with the offer expiry times. System picks only the top 5 best offers (by lowest price), totally real-time and rank order changes based on the offers received by the sellers, consumers takes advantage of the best offer and purchase the same.
Volume Based Discounts: Deals with only 5 star rated retailers - focus on general house-hold items, entertainment, education, local events, amusement parks, professional training, and services companies consumer can share the vouchers with friends and colleagues etc.
20
2.2 Introduces personalized Ad display and ‘Pay per Lead’ model: Displays the local Ads based on the consumer‘s interest within the local city at any given point in time. MyDeals247 introduces a revolutionary technology to improve ROI for the merchants while displaying the relevant Ads to the consumers based on their interest at any given point in time. Also, the consumers get paid for every click. Here is how?
Scenario: Whenever the consumer clicks on the Ad, there will be a video (1-2 minutes length) and simple product description (500 characters maximum) and asks the consumer to answer a simple questionnaire about the uniqueness of their product or service (i.e. 2-3 questions). Consumers can answer these questions very easily based on the information provided. If the merchant pays $1 per Ad click (i.e. lead), MyDeals247 pays 60% of $1 (i.e. $0.60) to the consumer whoever clicks on the Ad and answer all the questions (as part of the questionnaire) right the first time. If the consumer does not answer all the questions correctly for the first time, there will not any pay to the consumer. It‘s a great advantage for the merchants to create a real awareness about their products or services using this questionnaire model - eventually, it will lead to word-of-mouth marketing. There is no pressure for the consumers to click on any Ad with this new approach. In other words, when the consumer clicks and answers the basic questions, consumer gets paid a good chunk of what merchant offers. Consumer is allowed to click on the same Ad for more than once - just once chance whether to make it or break it.
21
Simple Rules:
One click per Ad
Get paid 60% of what the Advertiser pays when the user answers all the questions right about the product or service for the first time – only one chance is given whether to make it or not.
Earn money and use the same credit
To recharge any prepaid or post-paid mobile phone(if you have a
minimum of Rs 50 credit)
Or
To purchase any item(s) at MyDeals247.com right away(whatever the credit available) Or
To transfer the money into your bank account once in a month
A minimum of Rs 250 credit is required to transfer the money into your bank account - PAN card required – transfer happens once in a month – For instance, the credit earned for the month of 1st August – 31st August will be paid during the first week of September.
All taxation laws of Government of India are applied.
22
Today's most E-commerce sites routinely experience transaction closure rates in the range of 3 to 5 per cent of the total visitors - the primary reason for the failure is most of the sites are too generic - no personalization whatsoever. Most shoppers spend a significant amount of time by going through multiple websites and related comparison websites and still they cannot make a quick decision - average time to make a decision to buy any product online is between 2 hours to a week - also, they confine to a couple of choices.
Internet users want some of these aspects today: personalized dashboards based on their current needs (what they want, when they want, where they want) pretty much real-time. MyDeals247.com offers revolution technology in the e-commerce industry which identifies individual's preferences, interests, then delivers on-the-fly adjustments that make each customer feel the site was built just for him or her. It's pretty much like having your own ecommerce or online store to fulfil your own needs on daily basis. MyDeals247 brings the lowest offers from the sellers based on buyer‘s request in the local markets - all the bids from sellers happen real time and very much live. Also, MyDeals247.com provides the current need analytics (on daily basis) to the sellers in the local markets.
23
Pay Per Potential Lead: MyDeals247 displays the Ads based on the user's interest. When the user clicks on any Ad, MyDeals247 showcases a questionnaire asking a couple of questions related the Advertiser's product or service - if the user answers all the questions correctly, MyDeals247 charges the cost per potential lead from the Advertiser. If there is any wrong answer(s), Advertiser will not be charged at all. All the user information (whoever answered all the questions correctly) will be shared with the Advertiser. The cost for the "Pay Per Potential Lead" will be calculated by number of questions Advertiser wants to ask the user:
For Rs. 5 per click, Advertiser can ask up to two questions.
For Rs. 10 per click, Advertiser can ask up to three questions.
For Rs. 15 per click, Advertiser can ask up to four questions.
For Rs. 20 per click, Advertiser can ask up to five questions
Whenever the consumer clicks on the Ad, there will be a video (1-2 minutes length) and simple product description (500 characters max) and asks the consumer to answer a simple questionnaire about the uniqueness of their product or service (i.e. 2-3 questions). Consumers can answer these questions very easily based on the information provided.
If the merchant pays Rs.1 per Ad click (i.e. lead), MyDeals247 pays 60% of Rs.1 (i.e. Rs.0.60) to the consumer whoever clicks on the Ad and answer all the questions right the first time. If the consumer does not answer all the questions correctly for the first time, there will not any pay to the consumer. It‘s a great advantage f or the merchants to create a real awareness about their products or services using this questionnaire model - eventually, it will lead to word-of-mouth marketing.
24
Different Products available in MyDeals247 are:
Books
Laptops
Mobile Phones
Cars
Hotel booking
Apple Products
Electronic products
Computer affiances
Automobile services
Baby products
Pets
Sports
Instruments
Home appliances
Real estates
Flight booking Gaming
Perfumes
Kitchen Products
How Mydeals247 is different from other real time e-commerce platforms:
Targets only on right audience.
Creates true awareness about the product or service in the market.
Educates the consumers about the value proposition of the product or service Awareness leads to word of mouth.
Attract new customers and maintains them with good personal relation.
There is no warehouse for mydeals247.
25
2.3 Business Structure and Policies of MyDeals247: Mydeals247 has different Structures, Strategies and Policies in their business. The company works as a mediator between Buyer and Seller.
Real time Market: User need to Sign up in the MyDeals247 website before posting a request to Buy or Sell a product. After posting a buy request (what exactly you want to purchase) MyDeals247 creates a healthy competition among the sellers real-time and brings the top 5 lowest offers (from the sellers) within 1-2 hours. Customer can choose the best offer among the top 5 and purchase the same at MyDeals247. There are two kinds of users - buyer or seller. If user wants to purchase the item(s), user can sign-in as a buyer. If user wants to sell any item(s), user can sign-in as a seller and choose the category of item(s) user wanted to sell. Being a seller, user can still purchase other items. That is the beauty of MyDeals247. Unlike other Ecommerce sites, MyDeals247 do not have to maintain any inventory. All customer have to do is that, just sign-in as a seller by choosing the right category of item(s) which customer are selling. Whenever someone is looking to purchase the similar item(s), user will get notified instantaneously. And, customer can offer the best price for the buyer's request(s).
Paid Ads: At MyDeals247, company focus on the personalized Ad display for the users(patented solution) based on user personal interests or preferences and current location (once customer login). Unlike other websites, company does not annoy the users with irrelevant Ads. Customer get paid for every click and answering some basic questions. If customer clicks any Ad without being logged into the system is not a paid Ad. It‘s a very simple process. Advertiser can sign-up as a seller and post the Ad about the product or service. At the same time, Advertiser can showcase the unique selling points about the product or service and ask the user some basic questions as part of the questionnaire. Advertiser sets the budget per click or potential lead. If chooses Rs10, Advertiser can post up to 2 questions; Rs15 allows up to 3 questions.
26
MyDeals247 covers both the local city Ads as well as nationwide Ads. All the Ads will be shown on the website (once customer login into the system). Whenever customer clicks on any Ad, it showcases the video and talks about unique selling points of the product / service. Based on the Ad, customer will be asked to answer 2-4 basic questions about the product/service. With the knowledge customer get through the video, it will be very easy for customer to answer those basic questions. If customer answers all the basic questions right at the first time customer will get paid 60% of what the Advertiser is paying. For example, if the advertiser pays Rs 20 for every click, customer will get paid Rs 12 when customer answers all the questions correctly. Customer will get paid in 3 ways. First option is that, customer can recharge any of customers pre-paid or post-paid cell phone using the same credit. Second option is that, customer can literally use the credit when customer purchase any product or service at MyDeals247 - for example, if customer have a credit balance of Rs 200 and would like to purchase an item of value Rs 500, customer can pay the remaining amount Rs 300 (after using the credit balance). The third option is that, customer get real money transferred into customer bank account monthly, only if customer provide the PAN card details – MyDeals247 transfer the money directly to customer bank account if customer credit is more than Rs 250 once in a month (during the 1st week of following month).
Pay Per Potential Lead: MyDeals247 displays the Ads based on the user's interest. When the user clicks on any Ad, MyDeals247 showcases a questionnaire asking a couple of questions related the Advertiser's product or service - if the user answers all the questions correctly, MyDeals247 charges the cost per potential lead from the Advertiser. If there is any wrong answer(s), Advertiser will not be charged at all. All the user information (whoever answered all the questions correctly) will be shared with the Advertiser. For Rs10 per click, Advertiser can ask up to two questions. For Rs15 per click, Advertiser can ask up to three questions. For Rs20 per click, Advertiser can ask up to four questions. For Rs25 per click, Advertiser can ask up to five questions
27
Organizational Structure
Venu somineni CEO
Marketing and sales
Ravi Kumar (Director)
Sujana B. (Sr. manager) (Rural and online marketing)
Technical Department
Shashikant Kabra
Gautam Nath
(Vice President)
(Ex. Manager)
Aneesh Sharma
Sandeep Raju
(Sr. BDM)
(Sr. BDM)
(Volume Sales)
(Paid Ads.)
Interns
Interns
(Digital marketing)
Interns
Figure 2.1 organisational structure
28
Finance
Ram (IT Head) (PHP Developer and IT)
G. Valentina (Account department head)
Interns
2.4 Getting started How to purchase an item at MyDeals247? Just post your buy request (what exactly you want to purchase). MyDeals247 creates an healthy competition among the sellers real-time and brings the top 5 lowest offers (from the sellers) within 1-2 hours. You can choose the best offer among the top 5 and purchase the same at MyDeals247.
Do I have to sign up? Yes – there are two kinds of users - buyer or seller. If you want to purchase the item(s), you can sign-in as a buyer. If you want to sell any item(s), you can sign-in as a seller and choose the category of item(s) you wanted to sell. Being a seller, you can still purchase other items.
What kind of items I can sell? You can sell wide variety of items such as laptops, cell phones, tablets, ACs, travel packages, and many more. You can see the bits of categories you can sell as part of the sign-up process.
Do I have to upload all the item(s) which I am selling? No - that is the beauty of MyDeals247. Unlike other Ecommerce sites, you do not have to maintain any inventory at MyDeals247. All you have to do is that, just sign-in as a seller by choosing the right category of item(s) which you are selling. Whenever someone is looking to purchase the similar item(s), you will get notified instantaneously. And, you can offer the best price for the buyer's request(s).
What is the volume based discount? Unlike most of the daily deal offers, MyDeals247 offers volume based discounts to the buyers. The basic philosophy is that, ―Buy more, save BIG." - once the buyer purchase the huge quantity of item(s) or service(s) at volume discount rate, MyDeals247 allows the buyer to split the same quantity among the friends and colleagues. Everybody wins!
29
Do I have to pay anything in the form of registration fee? Absolutely not. It‘s totally FREE service for both the buyer and seller. MyDeals247 charges a small commission fee from the seller when the transaction is successful.
Barriers to Entry:
Some indicators for threat of new entrants in e-commerce industry are
Brand names are not well-known
Not properly promoted
Low initial capital investment
Distribution channels are easy to access
Switching costs are very low (Registration on new websites)
30
2.5 SWOT analysis Strength
Cost effective No inventory
Real time e-commerce
Lower transaction costs
One time solution providers
New advertisement concept
Weaknesses
Organization structure
Low credit term trading
Some categories yet to be included
Unorganised system
Website is not properly designed
Opportunity
Global expansion
Can start operations in other regions
Attract customers by introducing credit terms
Threats
Business models can be imitated by big ecommerce sites
Heavy traffic can hamper functioning of website
31
2.6 Different competitors for MyDeals247:
Flipkart
eBay
Amazon
Jabong
Snap deal
Yebhi
junglee
Flipkart Flipkart is an Indian e-commerce company headquartered in Bangalore, Karnataka. It was founded by Sachin Bansal and Binny Bansal in 2007. In its initial years, Flipkart focused ononline sales of books, but it later expanded to electronic goods and a variety of other products. Flipkart offers multiple payment methods like credit card, debit card, net banking, e-gift voucher, and the most important of all Cash on Delivery. The cash-on-delivery model adopted by Flipkart has proven to be of great significance since credit card and net banking penetration is very low in India.
History: Flipkart was founded in 2007 by Sachin Bansal and Binny Bansal, both alumni of the Indian Institute of Technology Delhi. They worked for Amazon.com before quitting and founding their own company. Initially they used word of mouth marketing to popularize their company. A few months later, the company sold its first book on flipkart.com. John Woods' Leaving Microsoft to Change the World. Today, as per Alexa traffic rankings, Flipkart is amongst the top 20 Indian Web sites and has been credited with being India's largest online bookseller with over 11 million titles on offer. Flipkart claims to have had at least 100% growth every quarter since its founding. The store started with selling books and in 2010 branched out to selling CDs, DVDs, mobile phones and accessories, cameras, computers, computer s, computer accessories and peripherals, peri pherals, and in 2011, pens & stationery, s tationery, other electronic items such as home appliances, kitchen appliances, personal care gadgets, health care products etc. Further in 2012, Flipkart added A.C, air coolers, school supplies, office supplies, art supplies & life style products to its product portfolio. As of today, Flipkart employs more than 4500 people. 32
Products: Flipkart started with selling books. In 2010, they added to their catalogue media (including music, movies and games) and mobile phones and accessories. In 2011, product launches included cameras, computers, pens & office supplies, computer accessories, home and kitchen appliances, personal care, health care, gaming consoles, audio players and televisions. In 2012, product launches launch es includes health & beauty beau ty products, produc ts, Life style products which includes watches, belts, bags & luggage.
In November 2011, Flipkart launched a new Electronic Wallet feature that allows shoppers to purchase credit to their Flipkart account using credit or debit cards, and can subsequently subsequentl y be utilised to make purchases on the site, as and when required. From June 2012, Flipkart allowed people to buy toys, posters and from October 2012, Flipkart entered into apparel retailing. Flipkart has recently started its own brand of computer accessories under the name of DigiFlip.
eBay: eBay, American multinational internet consumer-to-consumer corporation, headquartered in San Jose, California. It was founded in 1995, and became a notable success story of the dot-com bubble; it is now a multi-billion dollar business with operations localized loc alized in over ov er thirty countries. countries . The company manages eBay.com, an online auction and shopping website in which people and businesses buy and sell a broad variety of goods and services worldwide. In addition to its auction-style sellings, the website has since expanded to include "Buy It Now" standard shopping; shopping by UPC, ISBN, or other kind of SKU (viaHalf.com); online classified advertisements (via Kijiji or eBay Classifieds); online event ticket trading (via StubHub); online money transfers (via PayPal) and other services.
History: AuctionWeb was founded in San Jose, California, on September 5, 1995, by French-born Iranian-American computer programmer Pierre Omidyar (born on June 21, 1967) as part of a larger personal site that included, among other things, Omidyar's own tongue-in-cheek tribute to the Ebola virus. One of the first items sold on eBay was a broken laser pointer for $14.83. Astonished, Omidyar contacted the winning bidder to ask if he understood that the laser pointer was broken. In his responding email, the buyer explained: "I'm a collector of broken laser pointers." The frequently repeated story that eBay was founded to help Omidyar's fiancée trade Pez candy dispensers was fabricated by a public relations manager in 1997 to interest the media, 33
which were not interested in the company's previous explanation about wanting to create a "perfect market". This was revealed in Adam Cohen's 2002 book, The Perfect Store, and confirmed by eBay. Chris Agarpao was hired as eBay's first employee and Jeffrey Skoll was hired as the first president of the company in early 1996. In November 1996, eBay entered into its first third-party licensing deal, with a company called Electronic Travel Auction to use SmartMarket Technology to sell plane tickets and other travel products. Growth was phenomenal; in January 1997 the site hosted 2,000,000 auctions, compared with 250,000 during the whole of 1996. The company officially changed the name of its service from AuctionWeb to eBay in September 1997.
Meg Whitman was hired as eBay President and CEO in March 1998. At the time, the company had 30 employees, half a million users and revenues of $4.7 million in the United States. eBay went public on September 21, 1998, and both Omidyar and Skoll became instant billionaires. eBay‘s target share price of $18 was all but ignored as the price went to $53.50 on the first day of trading.
By early 2008, the company had expanded worldwide, counted hundreds of millions of registered users, 15,000+ employees and revenues of almost $7.7 billion. After nearly ten years at eBay, Whitman decided to enter politics. On January 23, 2008 the company announced that Whitman would step down on March 31, 2008 and John Donahoe was selected to become President and CEO. Whitman remained on the Board of Directors and continued to advise Donahoe through 2008. In late 2009, eBay completed the sale of Skype for $2.75 billion, but will still own 30% equity in the company.
In July 2010, eBay was sued for $3.8 billion by XPRT Ventures that accused eBay of stealing information shared in confidence by the inventors on XPRT's own patents, and incorporated it into features in its own payment systems, such as PayPal Pay Later and PayPal Buyer Credit.
On December 20, 2010, eBay announced its acquisition of a German online shopping club, brands4friends.de, for €150 million ($197 million) to strengthen the company's interests in the fashion industry in Europe. It is subject to regulatory approval and expected to close it in the Q1 2011.
34
Products: Millions of collectibles, decor, appliances, computers, furnishings, equipment, domain names, vehicles, and other miscellaneous items are listed, bought, or sold daily on eBay. In 2006, eBay launched its Business & Industrial category, breaking into the industrial surplus business. Generally, anything can be auctioned on the site as long as it is not illegal and does not violate the eBay Prohibited and Restricted Items policy. Large international companies, such as IBM, sell their newest products and offer services on eBay using competitive auctions and fixed-priced storefronts. Separate eBay sites such as eBay US and eBay UK allow the users to trade using the local currency. Software developers can create applications that integrate with eBay through the eBay API by joining the eBay Developers Program. In April 2006, eBay opened its new eBay Express site, which was designed to work like a standard Internet shopping site for consumers with United States addresses. It closed in 2008. Selected eBay items were mirrored on eBay Express, where buyers shopped using a shopping cart to purchase from multiple sellers. The UK version was launched to eBay members in midOctober 2006 but on January 29, 2008 eBay announced its intention to close the site. The German version, eBay Express Germany, was also opened in 2006 and closed in 2008. eBay maintains a number of specialty sites including the discussion boards, groups, answer center, chat rooms, and reviews and guides. eBay has a robust mobile offering, including SMS alerts, a WAP site, Java ME clients, an Android OS application and an Apple iPhone application available in certain markets.
Amazon: Amazon.com, Inc. is an American multinational electronic commerce company with headquarters in Seattle, Washington, United States. It is the world's largest online retailer. Amazon.com started as an online bookstore, but soon diversified, selling DVDs, CDs, MP3 downloads, software, video games, electronics, apparel, furniture, food, toys, and jewelry. The company also produces consumer electronics notably the Amazon Kindle e-book reader and the Kindle Fire tablet computer and is a major provider of cloud computing services.
Jeff Bezos incorporated the company (as Cadabra) in July 1994, and the site went online as Amazon.com in 1995. The company was renamed after the Amazon River, one of the largest rivers in the world, which in turn was named after the Amazons, the legendary nation of female warriors in Greek mythology. 35
Amazon has separate retail websites for the following countries: United States, Canada, United Kingdom, France, Germany, Italy, Spain, Brazil, Japan, and China, with international shipping to certain other countries for some of its products. It is also expected to launch its websites in Poland, Netherlands, and Sweden.
History: The company was founded in 1994, spurred by what Bezos called his "regret minimization framework", which described his efforts to fend off any regrets for not participating sooner in the Internet business boom during that time. Amazon was originally founded in Bezos' garage in Bellevue, Washington. The company began as an online bookstore. In the first two months of business, Amazon sold to all 50 states and over 45 countries. Within two months, Amazon's sales were up to $20,000/week. While the largest brick and mortar bookstores and mail order catalogs might offer 200,000 titles, an online bookstore could "carry" several times more, since they had an almost unlimited virtual (not actual) warehouse: those of the actual product makers/suppliers. Bezos wanted a name for his company that began with "A" so that it would appear early in alphabetic order. Amazon was incorporated in 1994, in the state of Washington. In July 1995, the company began service and sold its first book on Amazon.com. In October 1995, the company announced itself to
the public. In 1996, it was reincorporated in Delaware. Amazon issued its initial public offering of stock on May 15, 1997, trading under the NASDAQ stock exchange symbol AMZN, at a price ofUS$18.00 per share.
Amazon's initial business plan was unusual; it did not expect to make a profit for four to five years. This "slow" growth caused stockholders to complain about the company not reaching profitability fast enough to justify investing in, or to even survive in the long-term. When the dot-com bubble burst at the start of the 21st Century, destroying many e-companies in the process, Amazon survived, and grew on past the bubble burst to become a huge player in online sales. It finally turned its first profit in the fourth quarter of 2001: $5 million (i.e., 1¢ per share), on revenues of more than $1 billion. This profit margin, though extremely modest, proved to skeptics that Bezos' unconventional business model could succeed. In 1999, Time magazine named Bezos the Person of the Year, recognizing the company's success in popularizing online shopping. 36
Products and services: Retail goods: Amazon product lines include books, music CDs, videotapes and DVDs, software, consumer electronics, kitchen items, tools, lawn and garden items, toys & games, baby products, apparel, sporting goods, gourmet food, jewelry, watches, health and personal-care items, beauty products, musical instruments, clothing, industrial & scientific supplies, and groceries.
In August 2007, Amazon announced AmazonFresh, a grocery service offering perishable and nonperishable foods. Customers can have orders delivered to their homes at dawn or during a specified daytime window. Delivery was initially restricted to residents of Mercer Island, Washington, and was later expanded to several ZIP codes in Seattle proper. AmazonFresh also operated pick-up locations in the suburbs of Bellevue and Kirkland from summer 2007 through early 2008.
In 2012, Amazon announced Vine.com for buying green products, including groceries, household items and apparel. It is part of Quidsi, the company that Amazon bought in 2010 that also runs the sites Diapers.com (baby), Wag.com (pets) and YoYo.com (toys). Amazon also owns other e-commerce sites like Zappos.com, Shopbop.com and Woot.
Consumer electronics: In November 2007, Amazon launched Amazon Kindle, an e-book reader which downloads content over "Whispernet", via the Sprint Nextel EV-DO wireless network. The screen uses E Ink technology to reducebattery consumption and to provide a more legible display. As of March 2011, the stated library numbers over 850,000 titles.
In September 2011, Amazon announced its entry into the tablet computer market by introducing the Kindle Fire, which runs a customized version of the operating system Android. The exceedingly low pricing of Fire ($199 USD) was widely perceived as a strategy backed by Amazon's revenue from its content sales, to be stimulated by sales of Fire.
37
Digital content: In July 2010, Amazon announced that e-book sales for its Kindle reader outnumbered sales of hardcover books for the first time ever during the second quarter of 2010. Amazon claims that, during that period, 143 e-books were sold for every 100 hardcover books, including hardcovers for which there is no digital edition; and during late June and early July, sales rose to 180 digital books for every 100 hardcovers.
In 2011, Amazon announced that it was releasing a Mac download store to offer dozens of games and hundreds of pieces of software for Apple computers.
On August 2012, Amazon announced it would be adding a gaming department to its company titled Amazon Game Studios. Amazon states that they will be bringing "innovative, fun and well-crafted games."
38
Chapter III Internship
39
3.1 Internship profile
Lead generation
Social media marketing My internship started from 29th July an ended on 29th September; in span of time I did all of above things.
Lead generation In marketing, lead generation is the generation of consumer interest or inquiry into products or services of a business. Leads can be generated for purposes such as list building, e-newsletter list acquisition or for sales leads. The methods for generating leads typically fall under the umbrella of advertising, but may also include non-paid sources such as organic search engine results or referrals from existing customers. Businesses strive to generate 'quality' leads. Quality is usually determined by the propensity of the inquirer to take the next action towards a purchase. Lead generation is the process of creating sales leads which might convert into sale for the company. The leads may come from various sources or activities, for example, digitally via the Internet, through calls, through advertisement and list purchase. Companies may also rely on referrals, telemarketers, and advertisements to generate leads. Some use a phony local address to fool the search algorithm, as is liberal posting of the lead generator's. Similar practices are used in Yellow Pages ads as well
Roles and responsibility To generate potential leads for MyDeals247 in various sectors like Electronic products Educational, Food and beverage, NGO‘s etc. Under lead generation I was told to contact genuine customer and ask what their requirements are, get the details about their requirements and mail it to our head who will further carryout the work. Contact potential buyer who post buy request on the site. Communicate the information to buyer about the goods and services that he/she going to buy.
40
Social media marketing Social media marketing refers to the process of gaining website traffic or attention through social media sites. Social media marketing programs usually centre on efforts to create content that attracts attention and encourages readers to share it with their social networks. A corporate message spreads from user to user and presumably resonates because it appears to come from a trusted, third-party source, as opposed to the brand or company itself. Hence, this form of marketing is driven by word-of-mouth, meaning it results in earned media rather than paid media. Social media is a platform that is easily accessible to anyone with internet access. Increased communication for organizations fosters brand awareness and often, improved customer service. Additionally, social media serves as a relatively inexpensive platform for organizations to implement marketing campaigns.
Tactics
Twitter
Facebook
LinkedIn
Google+
Blogs
You tube
Yelp
Instagram
Roles and responsibility Under social media marketing I was told to create content about mydeals247.com and post on different social sites. I have worked on above sites for promoting mydeals247.com, in this I was regularly posting about mydeals247.com and was creating and posting different content for each time.
41
I also worked on trafficking i: e contacting to different service provider and explaining them about the company and making them to sign up as a seller. Some time I had to send mails regarding company profile to services provider when convincing them to sign up and even to different buyer regarding their deal update.
3.2 Learning’s
To create content for company
To give business presentation to potential client
To work as a team
42
Chapter IV Advertisement
43
4.1 ADVERTISING The act or practice of calling public attention to one's product, service, need, etc., especially by paid announcements in newspapers and magazines, over radio or television, on billboards, etc.: to get more customers by advertising
ONLINE ADVERTISING The number of internet users is on a rapid rise worldwide and the internet is being used by people of all age and types. Internet has become one of the major medium for communication, entertainment and is indeed in the process of replacing traditional entertainment, promo products, and informative Medias. The advantages of online advertising are many when compared with the traditional advertising and marketing techniques. The online advertising and marketing scenario is drastically entering a wider area and in the coming years one cannot even think of a business promotion without the help of internet advertising.
Generally accepted types of Online Media:
Portals
Yahoo, AOL, MSN
Content
NY Times.com, CNN.com, Forbes.com, CBS.com
Search Engines
Google, Yahoo Search, Bing
Social Media (Or User Generated Content – UCG)
Facebook, MySpace, linkedin
Video
YouTube, Veoh
Blogs
Federated Media,
Email & Newsletters
E-commerce
Amazon, BestBuy.com 44
RSS (real simple syndication); aka Feeds
Feedburner, Google Reader
Ad Networks
Tacoda (AOL), Blue Lithium (Yahoo), Tremor Media, Advertising.com
4.2 The Vision for the role of Digital Media
BEFORE
Suppliers
Monologue
One way
Mass communication
Static
Customer
No interaction among customers
Shotgun approach
Hard to identify customers
Hard to manage customers
45
AFTER
Suppliers
Dialogue
One-to-one marketing
Real-time
Dynamic
Collaborative
Segmented
Rich customer interaction
Rich customer data
Internet
46
Customers
Online is getting to the point where it may be more important than the 30-second TV spot.
4.3 History In early days of the Internet, online advertising was not allowed. For example, two of the predecessor networks to the Internet, ARPANET and NSFNET, had ―acceptable use policies‖ that banned network ―use for commercial activities by for - profit institutions‖. The NSFNET began phasing out its commercial use ban in 1991. Email: The first widely publicized example of online advertising was conducted via electronic mail. On May 3, 1978, a marketer from DEC (Digital Equipment Corporation), Gary Thuerk, sent an email to most of the ARPANET‘s American west coast users, advertising an open house for a new model of a DEC computer. Despite the prevailing acceptable use policies, electronic mail marketing rapidly expanded and eventually became known as ―spam.‖ The first known large-scale non-commercial spam message was sent on January 18, 1994 by an Andrews University system administrator, by cross-posting a religious message to all USENET newsgroups. Four months later, Laurence Canter and Martha Siegel, partners in a law firm, broadly promoted their legal services in a USENET posting titled ―Green Card Lottery – Final One?‖ Canter and Siegel‘s Green Card USENET spam raised the profile of online advertising, stimulating widespread interest in advertising via both Usenet and traditional email More recently, spam has evolved into a more industrial operation, where spammers use armies of virus-infected computers (botnets) to send spam remotely. Display Ads: Online banner advertising began in the early 1990s as page owners sought additional revenue streams to support their content. Commercial online service Prodigy displayed banners at the bottom of the screen to promote Sears products. The first clickable web ad was sold by Global Network Navigator in 1993 to a Silicon Valley law firm. In 1994, web banner advertising became mainstream when Hot-wired, the online component of Wired Magazine, sold banner ads to AT&T and other companies. The first AT&T ad on Hotwired had a 44% click-through rate, and instead of directing clickers to AT&T‘s website, the ad linked to an online tour of seven of the world‘s most acclaimed art museums.
47
Search Ads: GoTo.com (renamed Overture in 2001, and acquired by Yahoo! in 2003) created the first search advertising keyword auction in 1998. Google launched its ―Ad Words‖ search advertising program in 2000 and introduced quality-based ranking allocation in 2002, which sorts search advertisements by a combination of bid price and searchers‘ likeliness to click on the ads. Recent Trends: More recently, companies have sought to merge their advertising messages into editorial content or valuable services. Examples include Red Bull‘s Red Bull Media House streaming Felix Baumgartner‘s jump from space online, Coca-Cola‘s online magazines, and Nike‘s free applications for performance tracking. Advertisers are also embracing social media and mobile advertising; mobile ad spending has grown 90% each year from 2010 to 2013.
48
4.4 Delivery Methods
Display advertising
Display advertising conveys its advertising message visually using text, logos, animations, videos, photographs, or other graphics. Display advertisers frequently target users with particular traits to increase the ads‘ effect. Online advertisers (typically through their ad servers) often use cookies, which are unique identifiers of specific computers, to decide which ads to serve to a particular consumer. Cookies can track whether a user left a page without buying anything, so the advertiser can later retarget the user with ads from the site the user visited. As advertisers collect data across multiple external websites about a user‘s online activity, they can create a detailed picture of the user‘s interests to deliver even more targeted advertising. This aggregation of data is called behavioural targeting. Advertisers can also target their audience by using contextual and semantic advertising to deliver display ads related to the content of the web page where the ads appear. Retargeting, behavioural targeting, and contextual advertising all are designed to increase an advertiser‘s return on investment, or ROI, over untargeted ads. Advertisers may also deliver ads based on a user‘s suspected geography through geo targeting. A user‘s IP address communicates some geographic information (at minimum, the user‘s country or general region). The geographic information from an IP can be supplemented and refined with other proxies or information to narrow the range of possible locations. For example, with mobile devices, advertisers can sometimes use a phone‘s GPS receiver or the location of nearby mobile towers. Cookies and other persistent data on a user‘s machine may provide help narrow a user‘s location further.
Web banner advertising
Web banners or banner ads typically are graphical ads displayed within a web page. Many banner ads are delivered by a central ad server. Banner ads can use rich media to incorporate video, audio, animations, buttons, forms, or other interactive elements using Java applets, HTML5, Adobe Flash, and other programs. 49
Frame advertisement (traditional banner)
Frame ads were the first form of web banners. The colloquial usage of ―banner advertisements‖ often refers to traditional frame advertisements. Website publishers incorporate frame ads by setting aside a particular space on the web page. The Interactive Advertising Bureau‘s Ad Unit Guidelines proposes standardized pixel dimensions for advertisement units.
Pop-ups/pop-unders
A pop-up advertisement is displayed in a new web browser window that opens above a website visitor‘s initial browser window. A pop-under advertisement opens a new browser window under a website visitor‘s initial browser window.
Floating advertisement
A floating advertisement, or overlay advertisement, is a type of rich media advertisement that appears superimposed over the requested website‘s content. Floating ads may disappear or become less obtrusive after a pre-set time period.
Expanding advertisement
An expanding advertisement is a rich media frame ad that changes dimensions upon a predefined condition, such as a pre-set amount of time a visitor spends on a webpage, the user‘s click on the ad, or the user‘s mouse movement over the advertisement. Expanding ads allow advertisers to fit more information into a restricted advertisement space.
Trick banners
A trick banner is a banner advertisement where the advertisement copy imitates some screen element users commonly encounter, such as an operating system message or popular application message, to induce advertisement clicks. Trick banners typically do not mention the advertiser in the initial advertisement, and thus they are a form of bait-and-switch. Trick banners commonly attract a higher-than-average click-through rate, but tricked users may resent the advertiser for deceiving them.
50
Interstitial advertisements
An interstitial advertisement displays before a user can access requested content, sometimes while the user is waiting for the content to load. Interstitial advertisements are a form of interruption marketing.
Text advertisements
A text advertisement displays text-based hyperlinks. Text-based advertisements may display separately from a web page‘s primary content, or they can be embedded by hyperlinking individual words or phrases to advertiser‘s websites. Text advertisements may also be delivered through email marketing or text message marketing. Text-based advertisements often render faster than graphical advertisements and can be harder for advertisement -blocking software to block.
Search Engine Marketing (SEM)
Search Engine Marketing, or SEM, is designed to increase a website‘s visibility in search engine results pages (SERPs). Search engines provide sponsored results and organic (non-sponsored) results based on a web searcher‘s query. Search engines often employ visual cues to differentiate sponsored results from organic results. Search engine marketing includes all of an advertiser‘s actions to make a website‘s listing more prominent for topical keywords.
Search Engine Optimization (SEO)
Search Engine Optimization, or SEO, attempts to improve a website‘s organic search rankings in SERPs by increasing the website content‘s relevance to search terms. Search engines regularly update their algorithms to penalize poor quality sites that try to game their rankings, making optimization a moving target for advertisers. Many vendors offer SEO services.
Sponsored search
Sponsored search (also called sponsored links or search ads) allows advertisers to be included in the sponsored results of a search for selected keywords. Search ads are often sold via real-time auctions, where advertisers bid on keywords.
51
In addition to setting a maximum price per keyword, bids may include time, language, geographical, and other constraints. Search engines originally sold listings in order of highest bids. Modern search engines rank sponsored listings based on a combination of bid price, expected click-through rate, keyword relevancy, and site quality.
Social media marketing
Social media marketing is commercial promotion conducted through social media websites. Many companies promote their products by posting frequent updates and providing special offers through their social media profiles.
Mobile Advertising
Mobile advertising is advertisement copy delivered through wireless mobile devices such as smartphones, feature phones, or tablet computers. Mobile advertising may take the form of static or rich media display advertisements, SMS (Short Message Service) or MMS (Multimedia Messaging Service) advertisements, mobile search advertisements, advertising within mobile websites, or advertisements within mobile applications or games (such as interstitial advertisements, ―adver gaming,‖ or application sponsorship). Industry groups such as the Mobile Marketing Association have attempted to standardize mobile advertisement unit specifications, similar to the IAB‘s efforts for general online advertising. Mobile advertising is growing rapidly for several reasons. There are more mobile devices in the field, connectivity speeds have improved (which, among other things, allows for richer media advertisements to be served quickly), screen resolutions have advanced, mobile publishers are becoming more sophisticated about incorporating advertisements, and consumers are using mobile devices more extensively. The Interactive Advertising Bureau predicts continued growth in mobile advertising with the adoption of location-based targeting and other technological features not available or relevant on personal computers.
Email Advertising
Email advertising is advertisement copy comprising an entire email or a portion of an email message. Email marketing may be unsolicited, in which case the sender may give the recipient an option to opt-out of future emails, or it may be sent with the recipient‘s prior consent (opt-in). 52
Online classified advertising
Online classified advertising is advertising posted online in a categorical listing of specific products or services. Examples include online job boards, online real estate listings, automotive listings, online yellow pages, and online auction-based listings. Craigslist and eBay are two prominent providers of online classified listings.
Adware
Adware is software that, once installed, automatically displays advertisements on a user‘s computer. The ads may appear in the software itself, integrated into web pages visited by the user, or in pop-ups/pop-unders. Adware installed without the user‘s permission is a type of malware.
Affiliate Marketing
Affiliate marketing (sometimes called lead generation) occurs when advertisers organize third parties to generate potential customers for them. Third-party affiliates receive payment based on sales generated through their promotion.
Compensation Methods
Advertisers and publishers use a wide range of payment calculation methods. In 2012, advertisers calculated 32% of online advertising transactions on a cost-per-impression basis, 66% on customer performance (e.g. cost per click or cost per acquisition), and 2% on hybrids of impression and performance methods.
CPM (Cost Per Mille)
Cost per mille, often abbreviated to CPM, means that advertisers pay for every thousand displays of their message to potential customers (mille is the Latin word for thousand). In the online context, ad displays are usually called ―impressions.‖ Definitions of an ―impression‖ vary among publishers, and some impressions may not be charged because they don‘t represent a new exposure to an actual customer. Advertisers can use technologies such as web bugs to verify if an impression are actually delivered.
53
Publishers use a variety of techniques to increase page views, such as dividing content across multiple pages, repurposing someone else‘s content, using sensational titles, or publishing tabloid or sexual content. CPM advertising is susceptible to ―impression fraud,‖ and advertisers who want visitors to their sites may not find per-impression payments a good proxy for the results they desire.
CPC (cost per click)
CPC (Cost Per Click) or PPC (Pay per click) means advertisers pay each time a user clicks on the advertisement. CPC advertising works well when advertisers want visitors to their sites, but it‘s a less accurate measurement for advertisers looking to build brand awareness. CPC‘s market share has grown each year since its introduction, eclipsing CPM to dominate twothirds of all online advertising compensation methods. Like impressions, not all recorded clicks are valuable to advertisers. Gold Spot Media reported that up to 50% of clicks on static mobile banner ads are accidental and resulted in redirected visitors leaving the new site immediately.
Other performance-based compensation
CPA (Cost Per Action or Cost Per Acquisition) or PPP (Pay Per Performance) advertising means the advertiser pays for the number of users who perform a desired activity, such as completing a purchase or filling out a registration form. Performance-based compensation can also incorporate revenue sharing, where publishers earn a percentage of the advertiser‘s profits made as a result of the ad. Performance-based compensation shifts the risk of failed advertising onto publishers.
Fixed cost
Fixed cost compensation means advertisers pay a fixed cost for delivery of ads online, usually over a specified time period, irrespective of the ad‘s visibility or users‘ response to it.
54
Here are some advantages of online advertising when compared with the traditional offline advertising.
Wider Coverage
The online advertising gives your ads a much wider global coverage and this helps in making your online advertisements reach more audiences, which may ultimately help you in getting better results through your online advertising campaign. With internet advertising, you can also specify the range of your advertisement coverage which helps you to enjoy a better advertisement campaign.
Targeted Audiences
When compared with offline advertising, online advertising always helps you to reach the targeted audience and this helps in making your campaign more profitable and getting more relevant leads.
Affordable
Another main advantage of online advertising or marketing is the much affordable price when compared with the traditional advertising costs. With a much lesser cost you can advertise on the net for a wider range of audience and geographical locations.
Easy to Track and Measure Conversion
Measurability and easiness to track the conversion makes online advertising miles ahead on the traditional advertising methods. A lot of effective analytics tools are available to measure online advertising campaigns which helps in more improvisation of the ads.
Speed
Online advertising is much faster than offline advertising and you can start sending out your ads to a wider audience, the moment you start your advertising campaign.
55
Informative
In online advertising, the advertiser is able to convey more details about the advertisement to the audience and that too at relatively low cost. Most of the online advertising campaigns are composed of a clickable link to a specific landing page, where users get more information about the product mentioned in the ad.
Flexible Payment
Payment flexibility is another added advantage of online advertising and marketing. In offline advertising you need to pay the full amount to the advertising agency irrespective of the results. But in online advertising there is the flexibility of paying for only qualified leads, clicks or impressions.
Better ROI
Since online advertising is mainly focused on performance based payment, you ROI is sure to be far better when compared with offline advertising.
Easy Audience Engagement
Online advertisement makes is easy for the audience to engage with your ads or products. As an advertiser we would be able to get more feedback from the audience and thereby improve the quality of our ads going forward.
Better Branding
Any form of advertising helps in improving the branding and online advertising stands a notch high in improving the branding of your company, service or product
DISADVANTAGES
Online marketing is not free. The cost of software, hardware, wed site design, maintenance of your site, online distribution costs and of course time, all must be factored into the cost of providing your service or product.
56
Slightly over 50% of households shop online. While that number will continue to grow, you are reaching less than two out of three households.
The internet is still regarded as a source of information gathering for the majority of your customers. Of the number of visitors to your site, the vast majority of visitors who are motivated to buy will do so in person. Many people prefer the live interaction when they buy. If you have a small business with one location, this may deter customers from buying.
Easier to have outdated information on your site, thus timing of updates is critical
There is no replacement for good old fashioned customer service. The majority of internet marketers lack customer service and inquiry response programs. As a result, many online visitors to your site will already have painted your site as poor service before they have even contacted you.
The majority of websites also have poor navigation, which makes it difficult for your visitor to find what they are looking for. Many sites were created with a marketing view, not a customer service point of view.
Is your site secure? Does your customer know this? There are many incorrect stereotypes about the security of the internet out there. As a result, many of your visitors will not want to use their credit card to make a purchase. The fear of having their credit card info stolen is a clear and present danger in the minds of your visitors
There is a lot of competition for your product already out there. By the time your visitor finds you, they have already been clicking many links. Unless they can find what they are looking for quickly, they are gone. There are many other pros and cons of internet marketing. It is important to consider each when creating your internet marketing strategy. Each of the disadvantages can be overcome, but only if you view the customer experience from the eyes of your customer, not as an internet marketer.
57
4.5 Advertising of mydeals247.com Paid ADs How does Advertising work at MyDeals247?
At MyDeals247, we focus on the personalized Ad display for the users (patented solution) based on your personal interests or preferences and current location (once you login). Unlike other websites, we do not annoy the users with irrelevant Ads. The good news is that, you get paid for every click and answering some basic questions. If you click any Ad without being logged into the system is not a paid Ad. How does it work for the Advertiser?
It‘s a very simple process. Advertiser can sign-up as a seller and post the Ad about the product or service. At the same time, Advertiser can showcase the unique selling points about the product or service and ask the user some basic questions as part of the questionnaire. Advertiser sets the budget per click or potential lead. If chooses Rs 5, Advertiser can post up to 2 questions; Rs 10 allows up to 3 questions; Rs 15 allows up to 4 questions; Rs 20 allows up to 5 questions. Advertiser will have access to the user data whoever answers all the questions correctly. Do I get paid for real?
Yes... Of course. That is the whole idea of this revolutionary advertising model. Most advertisers spend huge money on the branding/advertising and pay hefty sums to the websites. But the ROI (return-on-investment) is too low since the random Ads are not getting much attention from the users. With this innovative advertising model, we focus on the personalized Ad display for the users (patented solution) based on your personal interests or preferences and current location (once you login). Unlike other websites, we do not annoy the users with irrelevant Ads. The good news is that, you get paid for every click and answering some basic questions. If you click any Ad without being logged into the system is not a paid Adel, MyDeals247 shares the advertiser‘s money with the users.
58
How much do I get paid?
Firstly, you see the Ads based on your interest ONLY - MyDeals247 covers both the local city Ads as well as nationwide Ads. All the Ads will be shown on the right side (once you login into the system). Whenever you click on any Ad, it showcases the video and talks about unique selling points of the product / service. Based on the Ad, you will be asked to answer 2-4 basic questions about the product/service. With the knowledge you get through the video, it will be very easy for you to answer those basic questions. If you answer all the basic questions right at the first time - you will get paid 60% of what the Advertiser is paying. For example, if the advertiser pays Rs 20 for every click, you will get paid Rs 12 when you answer all the questions correctly. In fact, you can literally see the amount you get paid on top of every Ad. In case, if you do NOT answer all the questions correctly, you will NOT get paid any money. At the same time, MyDeals247 will NOT get pai d either. How often do I get paid?
Whatever the money you make through Ads, you will get paid in 3 ways. First option is that, you can recharge any of your pre-paid cell phone using the same credit (with a minimum of Rs 50 credit). Second option is that, you can literally use the credit when you purchase any product or service at MyDeals247. For example, if you have a credit balance of Rs 200 and would like to purchase an item of value Rs 500, you can pay the remaining amount Rs 300 (after using the credit balance). The third option is that, you get real money transferred into your bank account monthly, only if you provide the PAN card details - we transfer the money directl y to your bank account if your credit is more than Rs 500 once in a month (during the 1st week of following month). For example, if you have the credit of Rs 3000 for the month of August, you will get the money transferred to your bank on the first week of September (i.e. within one week). Does MyDeals247 share my personal information with any Advertiser?
Unlike most of the websites, we do NOT share your personal information with the Advertisers without your permission. When you answer all the questions correctly, you will get paid 60% of what Advertiser pays for the click - at that time, we share your name, email and contact information with the Advertiser. 59
If you don‘t answer all the questions right, you will NOT get paid and your information will NOT be shared with the Advertiser. MyDeals247 works with the decent Advertisers where they have unique selling points or differentiations at what they offer. They use your information for the right cause to notify about their future promotional offers etc. Can I create multiple accounts and click Ads to make more money?
It‘s totally a violation. You are NOT allowed to create more than one account as per the terms and conditions. Firstly, MyDeals247 allows you to create one account per cell phone number you cannot use the same cell phone number to create more than one account. Secondly, if you try to create more than one account using multiple cell phone numbers, we can easily find the patterns (using the secured algorithms) and block your account completely and proceed with legal action in the country - at the same time, you have to pay back the cost of all the damages. Let‘s be HONEST! Is the amount taxable?
It‘s totally based on the taxation laws of the state and country. We deduct the TDS as per the government norms. You have to provide your PAN card number. Who is the influencer?
Influencer is pretty much same as a referrer. Influencers can be individuals, Facebook page owners or Twitter page owners or any bloggers - any person with a good network of fan base (or followers). MyDeals247 encourages the influencers to share the specific link (provided by MyDeals247) with their fan base. Since MyDeals247's advertisement platform is so unique, most of the influencers would like to share about this paid Ad model with their fan base. The very advantage here is that, influencer can make a real good money every month for sharing the link provided by MyDeals247.
60
How does MyDeals247 selects the influencer?
Most times, the influencers approach MyDeals247 to share about the paid advertisement model with their followers. MyDeals247 verifies the information and provides a specific link (i.e. www.MyDeals247.com/A1B2C3D4E5) with the influence ID (i.e. A1B2C3D4E5) in it. Influencer can simply paste this link on their social community, blogs and more. How does the Influencer get paid?
MyDeals247 provides the influencer link (i.e. www.MyDeals247.com/A1B2C3D4E5) with the influence ID (i.e. A1B2C3D4E5) in it. Like aforementioned, the influencer can paste the link on any of the social community and blogs - if any user clicks on the link and registers through the same link, the influencer becomes the "referrer" for the user. At the same time, the influencer gets paid 5% of the total Ad credits the user earns every month. For example, if 500 users register through the same influencer's link and every user makes an average of Rs 1000 per month, the influencer can make up to Rs 25,000 per month just for sharing the link. The amount will be paid every month based on the total Ad balance earned by the referred users. Also the influencer will be given the user credentials by MyDeals247 to check the transaction history and balance etc. Using the same money, the influencer can recharge the mobile phone or purchase any item online or make a request to transfer the money directly into his/her bank account. Mydeals247.com has unique type of advertisement that differentiates them from others in the market.
61
Chapter V Findings
62
5.1 Analysis and results Male and female respondent
Gender
Number of respondent
Male
60
Female
40
Table 5.1 Gender Interpretation
Out of the total 100 respondents it is observed that, 60% of respondents were male and 40% were female. From above observation we can say that most of the customers who buying through online are males.
Gender
male female
Figure 5.1 Gender
63
Age group
Age
Number of respondent
20 & blow
-
21-30
50
31-40
30
41 & above
20
Table 5.2 Age Interpretation
Out of the total 100 respondents it is observed that, 0% of respondents are age group 20 & below years, 50% are age group between 21-30 years, 30% are age group between 31-40 years and 20% are age group 41 & above years.
From above observation we can say that most of the customers who buying through online are lies between age group 20-30 years.
Age
20 & below 21-30 31-40 41 & above
Figure 5.2 Age
64
Occupation Occupation
Number of respondent
Government employee
0
Private employee
40
Student
50
Others
10
Table 5.3 Occupation Interpretation Out of the total 100 respondents it is observed, 0% of them are Govt. Employees, 40% of them are Pvt. Employees, 50% of them are Students and 10% of them are others.
From above observation we can say that most of the customers who buying through online are Students.
Occupation
Govt. employee Pvt. Employee Student Others
Figure 5.3 Occupation
65
Income level Income range
Number of respondent
No income
20
Below 3 lakhs
30
3-6 lakhs
40
Above 6 lakhs
10
Table 5.4 Income level Interpretation
Out of the total 100 respondents it is observed, 20% of them are with No Income, 30% of them are earning Income less than 3lakh per annum, 40% of them are earning Income between 3lakh to 6lakh per annum and 10% of them are earning Income more than 6lakh per annum.
From above observation we can say that most of the customers who buying through online are earning between 3lakhs to 6 lakhs per annum.
Income level
No income Below 3 lakhs 3-6 lakhs Above 6 lakhs
Figure 5.4 Income level
66
Internet usage Internet usage
Responses
Yes
70
No
-
Some times
30
Table 5.5 Internet usage Interpretation
Out of the 100 respondent it is observed, 70% of the respondent use internet, 0% of the respondent don‘t use internet and 30% of the respondent use internet when needed. From above observation we can say that most of the people use internet.
Internet usage
yes no some time
Figure 5.5 Internet usage
67
Online advertisement Useful
Responses
Yes
60
No
40
Table 5.6 Usefulness Interpretation
Out of 100 respondents it is observed that, 60% of the respondents think that online advertisements are useful and 40% of the respondents think that online advertisements are not useful. From the above observation we can say that most of the respondents think online advertisements are helpful and useful.
Usefulness
Yes No
Figure 5.6 Usefulness
68
Click on advertisement Click
Responses
Yes
100
No
0
Table 5.7 Click on advertisement Interpretation
Out of the 100 respondents it is observed, 100% of the respondent do click on advertisement and only 0% of the respondent do not click on advertisement. From the above observation we can say that most of the people do click on advertisement which are been displayed online.
Click on ads
Yes No
Figure 5.7 Click on advertisement
69
Reads after clicking Reads the advertisement
Responses
Yes
10
No
90
Table 5.8 reads after clicking Interpretation
Out of 100 respondents who said they click on advertisement, only 10% of that reads the advertisement properly and rest 90% just over look it or close it. From the above observation we can say that most of the people do not read the advertisement.
Reads the advertisement
Yes No
Figure 5.8 reads after clicking
70
What do you think about the advertisement? Productive
Responses
Yes
60
No
40
Table 5.9 Productivity Interpretation
Out of 100 respondents it is observed that, 60% of respondent think that it is productive and 40% of respondent think that it is not productive. From the above observation we can say that most of the respondents think that it is productive because people do get some information about the company.
Productivity
Yes No
Figure 5.9 Productivity
71
New way of advertising online Sustainable
Responses
Yes
70
No
30
Table 5.10 Paid advertisement Interpretation
Out of 100 respondents it is observed that, 70% of the respondents think it will work and 30% of the respondents think it will not work. So we can say that most of the respondent think it will work.
Sustainability
Yes No
Figure 5.10 Paid advertisement
72
Will online marketing grow? Online marketing growth
Responses
Yes
75
No
-
Maybe
25
Table 5.11 online marketing grow Interpretation
It is observed that from above table that of the total 100 respondents, 75% of them are agreeing that Internet marketing will grow in future, 0% of them are disagreeing that Internet marketing will grow and 25% of them are not sure that either Internet marketing will grow or not in future. From above observation we can say that most of the customers are agreeing that Internet marketing will grow more in future.
Growth
Yes No Maybe
Table 5.11 online marketing grow
73
Is Internet marketing overtaking Traditional marketing? Internet marketing overtaking
Responses
Traditional marketing
Yes
70
No
20
Maybe
10
Table 5.12: Internet marketing overtaking Traditional marketing. Interpretation
It is observed that from above table that of the total 100 respondents, 70% of them are agreeing that Internet marketing overtaking Traditional marketing, 20% of them are disagreeing that Internet marketing overtaking Traditional marketing and 30% of them are not sure that either Internet marketing overtaking Traditional marketing or not. From above observation we can say that most of the customers are agreeing that Internet marketing overtaking Traditional marketing.
Internet marketing overtaking Traditional marketing
Yes No Maybe
Figure 5.12 Internet marketing over traditional marketing
74
Chapter VI Summary of findings
75
6.1 Data analyses We are using Judgmental Non Probability technique to analyse the data. It is observed from the above data that most of the respondents (i.e. 50%) who use internet fall under the age group between 20-30 years and also 50% of the males and 50% of the females fall under this age group. It is clear that most of the males and females who use internet are between the ages of 20-30 years, mostly a young people. So it is important that the advertisements displayed must be able to attract and keep the customers, a company must design the advertisement in such a way that it explains every details in few words and pictures. It is found that they don‘t read whole details if it is big. The respondents, who use internet fall under the income range between 3-6 lakhs, constitute 40% of the respondents and mostly they are private employees. The company must focus on these areas which will give them more customers. From the above data it is observed that almost every one click on advertisement according to their need or compels them to click. It is also understood that only 10% of the respondents tries to read every details of the advertisements, people don‘t take an effort to read it because either it is too long or it is not relevant to what they were searching. So it is crucial that a company must keep their content shot and simple, change according the time or fashion. Data also speaks about growth of online marketing in future; it says the online marketing is going to grow with a huge potential of attracting more people. It also tells that there is lot of scope to the advertisements technique used by mydeals247.com to grow and flourish.
76
6.2 Conclusion The Internet has reduced the cost and increased the speed of information transfer. This has transformed the economic landscape, allowing new and exciting ways to generate revenue that include and differ from traditional marketing. We can also in the data collected that many respondents think that internet marketing is overtaking traditional marketing. It is also found that there is lot of scope to grow in future as internet usage and awareness is increasing. As it is increasing there is also scope for others to enter into market. It is found that the advertisements used by mydeals247.com are really interesting but they have to keep changing the attractiveness of advertisements because many other are likely to enter.
77
6.3 Recommendations:
Sell Targeted Advertisements Test different advertisements locations: The layout and content on your site can make it vastly
different on where advertisements should be located. Create your own heat map. Change things often: Users who visit your site a lot will get used to where you place
advertisements, and will learn to totally ignore those areas. A good way to get a little boost is to shake your site up and move advertisements to new locations. Make sure you‘re watching your advertisement rates and ad statistics to see what happens with your tests. Work with different advertisement pricing models: Similar to the types of advertising you
accept, I recommend opening up to different advertisement pricing models. Increase your traffic: Bring in more people which will help to build an image. Use your advertisement analytics: study what sizes are working the best, what increasing click
or conversion rate does to your revenue, which advertisers are the most successful with you, what affect changing your site layout and content does to your advertisement rates, and more. Expand your advertisement sizes
78
Annexure
79
Questionnaire This survey is conducted as a part of the MBA Project report. I am pursuing at National Shool of Business, Bangalore. Details provided by you in the survey will be used for academic purpose only. Information will be strictly confidential. Please complete the following questions to reflect your opinions as accurately as possible and to answer factual questions to the best of your knowledge. You can provide your comments wherever necessary Please be as kind as to answer all questions. In advance I sincerely thank you for your time.
1. Name: 2. Please mention your gender a. Male b. female 3. please mention your age a. below 20 b. 21-30 c. 31-40 d. 41 and above 4. What is your occupation a. Government employee b. Private employee c. Student d. others 5. your annual income a. no income b. below 3 lakhs c. 3-6 lakhs d. Above 6 6. Do you use internet? a. Yes b. No
80
7. Do you think the advertisements are useful? a. Yes b. No 8. Do you click on advertisements which are displayed? a. Yes b. No c. Sometimes 9. Do you read the entire advertisements completely? a. Yes b. No 10. What do your view about online advertisements, are the productive? a. Yes b. No 11. What do you think about advertisements in which both (user and advertiser) are benefited? Will it work? a. Yes b. No 12. Will online marketing grow? a. Yes b. No c. Maybe 13. Is online marketing overtaking traditional marketing? a. Yes b. No c. Maybe
81
Bibliography
82
