BlACK BOOK
BlACK BOOK
INTRODUCTION:
Information technology has affected everything in the business. Due to the presence of tough competition
it has become necessity to introduce and implement new techniques by the organisation .It is advisable
for modern day producers to stay competitive in the market they will have to use the technological
advancements the market. The revolution in the field of communication with advance development of
software technology has entirely changed the way of communication between people to people nationally
and internally. Especially the revolution in telecommunication via satellite and new software technology
has became new milestone. This advancement has resulted in easier communication between people from
different countries, cultural backgrounds and profile communicate with each other more easily. It has
become much easier to access internet with the help of mobile phones even in the absence of computers.
Mobile phones have influenced the youth with the coming of mobile internet. With this advancement
people can easily access the world out of their reach with a press on a button. The consumers are now
more aware about the changes in the market and they are considered an integral part of any business as
now the market is expanding beyond market. This trends has lead to the introduction of mobile marketing
as mobile is considered as an inevitable part of life of youth. Mobile phones have influenced the way the
market works and thinks. It is used as a tool for targeting, interacting and establishing relationships with
the consumers. This adoption of mobile phones by people have created a need for understanding the
trends of mobile marketing and the factors that affect the marketing behavior. With the evolution of e-
commerce a new marketing channel has emerged known as mobile marketing.Media industry is also
benefited through revolution in marketing by using mobile phones. Other names for mobile marketing are
mobile advertising, wireless advertising and wireless advertising.
In 2010, International Telecommunication Union conducted a research shows that 90% of the world
population has internet access and 80% of people who is living in rural areas also have internet
access. Mobile internet usage is also expected to increase desktop internet usage by 2014. As the
number of mobile users is growing, mobile marketing becomes the latest marketing forms. mobile
marketing is much more interactive because the receiver of the message can react by subscribing to the
company web pages or sending the company a message . Furthermore, the mobile marketing services
have a border context of electronic services that has a positive effect on society. It increases production
activity and leads to economic growth of the country.
Mobile Commerce and Mobile Marketing Business experts are estimating potential of mobile world without time
and place boundaries Widespread usage of mobile phones accelerated the growth of usage of mobile devices to
conduct mobile commerce: In a mobile world, these activities (process of planning and executing the conception,
pricing, promotion, and distribution of goods, services, and ideas to create exchanges that satisfy individual and
organizational goals) are performed via mobile devices, such as cellular phones and pagers, cordless telephones,
personal digital assistants, two-way radios, baby crib monitors, wireless networking systems, global positioning
systems (GPS) based locators and maps. Commonly mobile commerce is considered as part of the electronic
commerce By taking advantage of technology and applications, mobile internet become
advantageous subsidiary channel for traditional electronic commerce, which is indicating big
potential Current improvements in mobile technology resulted in widespread usage and different
functions of mobile devices, the mobile medium has turned into a powerful marketing channel,
which allowed businesses to set up electronic presence alongside with their consumers without
time and place boundaries. The Mobile Marketing Association, (2008) defines mobile marketing
as The use of wireless media as an integrated content delivery and direct response vehicle within
a cross-media marketing communications program. Anyway, it is important to clarify mobile
marketing and mobile advertising). Mobile advertising as Any paid message communicated by
mobile media with the intent to influence the attitudes, intentions and behavior of those
addressed by the commercial messages. which can be also inferred from definitions mobile
advertising is part of mobile marketing. After stating two types of mobile advertising which are
push and pull advertising, explains it as following: Advertising that is pushed to the users devices
is generally used in conjunction with mobile advertising. Push advertising may be unsolicited
such as special promotions delivered by SMS to users within the context of an existing customer
relationship, or it may be solicited where users agree to have certain services or promotions
pushed to them at certain times (sponsored sports score alerts, for example). Pull advertising,
MOBILE MARKETING:- It is a way of marketing through wireless networks. It refers to the process of
marketing when done through mobile phones/tablets. As defined by Andreas, Mobile Marketing is “any
marketing activity conducted through an established network to which consumers are constantly
connected using a personal mobile device.” Mobile marketing can not only be done through mobiles but
also through other digital technologies such as Ereaders or tablets. It helps the marketers to remain
connected to their customers 24/7. Mobile marketing helps to both the marketers and the customers for
effective marketing process.
Marketing through mobile phones SMS (Short Message Service) became increasingly popular in
the early 2000s in Europe and some parts of Asia when businesses started to collect mobile
phone numbers and send off wanted (or unwanted) content. On average, SMS messages have a
98% open rate, and are read within 3 minutes, making it highly effective at reaching people
quickly.
Over the past few years SMS marketing has become a legal advertising channel in some parts of
the world. This is because unlike email over the public internet, the carriers who police their own
networks have set guidelines and best practices for the mobile media industry (including mobile
advertising). The IAB (Interactive Advertising Bureau) and the Mobile Marketing
Association (MMA), as well, have established guidelines and are evangelizing the use of the
mobile channel for marketers. While this has been fruitful in developed regions such as North
America, Western Europe and some other countries, mobile SPAM messages (SMS sent to
mobile subscribers without a legitimate and explicit opt-in by the subscriber) remain an issue in
many other parts of the world, partly due to the carriers selling their member databases to third parties. In
India, however, government's efforts of creating National Do Not Call Registry have helped cellphone users to
stop SMS advertisements by sending a simple SMS or calling 1909.[5]
Mobile marketing approaches through SMS has expanded rapidly in Europe and Asia as a new channel to
reach the young customer. SMS initially received negative media coverage in many parts of Europe for being a
new form of spam as some advertisers purchased lists and sent unsolicited content to young
customer’s phone; however, as guidelines are put in place by the mobile operators, SMS has
become the most famous branch of the Mobile Marketing industry with several 100 million
advertising SMS sent out every month in Europe alone. This is thanks in part to SMS messages
being hardware agnostic—they can be delivered to practically any mobile
phone,smartphone or feature phone and accessed without a Wi-Fi or mobile data connection.
This is important to note since there are over 5 billion unique mobile phone subscribers
worldwide in 2017, which is about 66% of the world population.
SMS marketing has both inbound and outbound marketing strategies. Inbound marketing focuses
on lead generation, and outbound marketing focuses on sending messages for sales, promotions,
contests, donations, television program voting, appointment and event reminders.
There are 5 key components to SMS marketing: sender ID, message size, content
structure, spam compliance, and message delivery.
WEB MARKETING: Web marketing is the process of using the Internet to market your
business. It includes the use of social media, search engines, blogging, videos, and email. Web
marketing takes your message to the big wide web. With tons of people using the internet every
day, there are huge opportunities to get your product or service in front of people who need or
want it.
Drilling down into it, web marketing takes many forms. Banner ads, email promotions, and
social media posting are three of the ones you have probably heard about. They, and more, live
under the “web marketing” umbrella.
According to Broadband Policy 2004, Government of India aims at 9 million
broadbandconnections and 18 million internet connections by 2007. The wireless subscriber base
has jumped from 33.69 million in 2004 to 62.57 million in FY2004- 2005. In the last 3 years,
two out of every three new telephone subscribers were wireless subscribers. Consequently,
wireless now accounts for 54.6% of the total telephone subscriber base, as compared to only
40% in 2003.
Wireless subscriber growth is expected to bypass 2.5 million new subscribers per month by
2007. The wireless technologies currently in use are Global System for Mobile Communications
(GSM) and Code Division Multiple Access (CDMA). There are primarily 9 GSM and 5 CDMA
operators providing mobile services in 19 telecom circles and 4 metro cities, covering 2000
towns across the country.
•India has one of the biggest telecom markets in the world. It has more GSM subscribers than
fixed-lin subscribers.
•Total telecom subscribers –494.07 million (August 2009)
•Teledensity –42.27 per cent (August 2009)
•Addition of mobile subscribers (July–August 2009) –15.08 million
•Annual growth rate of telecom subscribers (June 2008–June 2009) –42.68 per cent
•Average Revenue Per User (ARPU) for GSM (as on 30 June 2009) –US$ 3.801
•Handset market (2008-09) –US$ 5.82 billion2,3
•Expected mobile subscriber base (2013) –About 771 million.
SOCIAL MARKETING: Social media marketing is the use of social media platforms to connect with
your audience to build your brand, increase sales, and drive website traffic. This involves publishing great
content on your social media profiles, listening to and engaging your followers, analyzing your results,
and running social media advertisements. The major social media platforms (at the moment) are
Facebook, Instagram, Twitter, LinkedIn, Pinterest, YouTube, and Snapchat.
There are also a range of social media management tools that help businesses to get the most out of the
social media platforms listed above. For example, Buffer is a platform of social media management tools,
which can help you achieve success with your social media marketing. Whether you want to build a brand
or grow your business, we want to help you succeed.
Social media marketing is the use of social media platforms and websites to promote a product or
service.] Although the terms e-marketing and digital marketing are still controlling in academia, social media
marketing is becoming more popular for both practitioners and researchers.
Marketing with the help of mobile phones will help the brand managers to communicate with the customers
through SMS, MMS and other available services. Considering the fact that today's youngsters are tomorrow's
consumers, there is a need to prepare youngsters to consider different consumption patterns. This is done with
the aim to empower young consumers to access the market with clearer ideas and to develop their capacity to
select among existing products and services. Producers on the other hand have powerful resources and
therefore the consumers or youngsters cannot adopt defensive strategies. The competition faced by these
producers are high that they have to adopt new and improved way of marketing the products and they have to
ensure that they reach the core customers while marketing their product. INFORMATION technology has
affected everything in the business. Due to the presence of immense competition it has become necessary that
effective marketing techniques are to be adopted by the organisation. Thus, it has been advised that for the
producers to stay competitive in the market they will have to use the technological advancements available in
the market. These technological advancements have led to the invention of mobile phones and this has been a
mile stone in communication media. This advancement has resulted in easier communication between people
from different countries, cultural backgrounds and profile communicate with each other more easily. It has
become much easier to access internet with the help of mobile phones even in the absence of computers.
Mobile phones have influenced the youngsters with the coming of mobile internet. With this advancement
people can easily access the world out of their reach with a press on a button. The customers are now more
aware about the changes in the market and they are considered an integral part of any business as now the
market is expanding beyond market. This trends has lead to the introduction of mobile marketing as mobile is
considered as an inevitable part of life of youngsters. Mobile phones have influenced the way the market
works and thinks. It is used as a tool for targeting, interacting and establishing relationships with the
customers. Mobiles help in easy communication between the 2 ends.
The popularity of cellular phones has resulted in mobile-based brand advertising and promotions
that specifically target the youth. The mobile medium is used by marketers as an additional channel
to current marketing communications strategies.
Consumers have the choice to choose whether they want to receive advertising messages of a company and
stop it whenever they want. Companies need to consider whether the advertising information meet the
interest of their customers. Companies also can adopt appropriate strategies to segment their customers
accurately. Lastly, the database shared with consumers by companies must be kept confidential to
prevent consumers from losing trust in the company.
Instantaneous results
We always carry our mobile phones. Like our wallet or keys, we never leave home without them.
And, most of the time, our mobile phone is ON, which means, we receive the message at the
very moment it is sent. You can use mobile tactics to get your marketing message out
immediately.
Convenient to use
Since the screen size of a mobile phone is small, it limits the scope of content that can be
displayed. This makes it convenient for the creators of the content, who can keep it basic and
simple. Also, simpler content will adapt itself better to the various mobile platforms.
Tracking response
User response can be tracked almost instantaneously. Mobile marketing is an effective way to
collect user data. Databases that use phone numbers, as unique IDs are more effective, since
many people generally keep their phone numbers for a longer period of time, unlike their email
addresses. This helps the mobile advertiser better understand and analyze user behavior and
create buyer personas.
Since mobile content can be easily shared among users, mobile marketing enhances the
potential for virality, or a piece of content - usually a video - “going viral.” Users more than
likely will share good information and offers with their friends and family, so companies
get a lot more exposure with no extra effort.
Privacy issues
This is always in question on any network or device. Savvy mobile marketers need to understand
and respect the fact that users would like their privacy. So they should offer clear instructions for
opting out of marketing communications should the user want to do that.
As you can see, there are more pros than cons when it comes too mobile marketing. Either way
it’s a necessity. So if you haven’t already optimized website for mobile or thought about how
online strategy should be different for people using smartphones.
There are advantages and disadvantages of mobile marketing . It is not to say that traditional
media is becoming less important. However, marketing messages in traditional media are a more
passive way in which it cannot personalize the advertising message for different target markets.
It may end up reaching the wrong audience at the wrong time. The characteristics that can
be found in mobile marketing are personalization, ubiquity, interactivity, and localization. It has
made mobile marketing different from other media channels and keeping an important potential
for commercial communication . In addition, marketers have a better way to reach young
consumers by using push and pull marketing strategies in mobile marketing. Push tactics are
sending the advertising message without necessarily obtaining permission of the mobile users.
Then, pull tactics try to attract the young consumer to the brand by offering something
valuable and establish loyalty. Besides that, mobile marketing contains permission-based
communication that allows mobile users to opt-in or –out of marketing messages and
advertising. For example, consumers can opt-in by signing up online or responding to an SMS.
Besides that, quick response codes (QR) can benefit both consumers and businesses.
Marketers can distribute a QR code to their website which can save advertising costs.
Then, consumers just need to scan the QR code on the company website by using mobile phones
and they can read the information about the company. Consumers also can scan the QR code and
store their purchase information for future reference. Therefore, it could be said that one of
the benefits of mobile marketing is marketers getting the recognition and attention from the
target audience and improving data management of the consumer. Consequently, it can help
marketers to meet their business goals and objectives. At the same time, consumers can have
access to a range of exciting and diverse presentations before deciding to purchase certain
products or services.
There will still be an existing disadvantage of mobile marketing. There is clear evidence of
consumers being concerned about the issue of privacy invasion due to company access to
personal information.
The power of SMS is now being used to research the tastes and opinions of youth through other
communications channels. Developing countries, for instance, with no optic fiber or landlines,no
web access or even telephones, still have mobile phone capabilities. Mobile marketing
companies and charity organizations alike are trying to use SMS to reach those outliers on the
global grid.
Denver-based Mobile Accord has launched a new venture called GeoPoll, which performs
surveys on behalf of non-profits, international organizations like the U.N. and the mobile
marketing strategies of big business. Participants are compensated with airtime credits which, in
many countries, can be used as a currency. GeoPoll plans to extend its current reach of 50
million to 500 million by the end of 2014.
Mobile phone is a new direct marketing device that provides direct access to consumers and interacts with
them in a very personal way. All GSM operators announce the launch of new mobile services, and the
B2C mobile commerce and mobile marketing will be obviously becoming more popular in India. The
mobile advertising, mobile Internet, mobile banking and mobile entertainment services are growing in the
world and in India, GSM operators and retailers expect to benefit from these mobile marketing tools.
According to literature survey about consumers‟ attitudes toward mobile marketing, Tsang et al., (2004)
found that consumers generally had negative attitudes toward mobile advertising unless they have
specifically consented to receive the mobile advertising messages.
Bauer et al., (2005) found that consumers developed a positive attitude toward mobile marketing if
mobile marketing messages were creatively designed, entertained and proved a high information value.
Becker (2005) indicated that mobile marketing adoption and acceptance was on the rise. Even though it is
too early to say whether mobile commerce and mobile marketing services are accepted or not in Turkey,
the findings of the research conducted Turkish mobile phone users suggest that mobile phone users have
positive attitudes towards mobile marketing tools except for mobile shopping.
To come to the point, the mobile phone is rapidly becoming a practical direct marketing channel. There
are some factors playing a role in improving and increasing mobile commerce. Besides mobile service
quality, Bauer et al., (2005) emphasizes that entertainment value, information value and advertising
content communication are some of the strongest drivers of the acceptance of the mobile phone as a
marketing tool. Moreover, one of the ways to convince mobile phone users of the benefits of mobile
commerce is the price of products and services. One of the implications of this survey suggests that
potential mobile commerce users have price sensitivity, and that the lower price turns out 30 to be the
most critical factor that motivates mobile phone users‟ adoption of mobile commerce”
Those customers who like to respond mobile advertising are mainly for recharging schemes and
other value added services. Many of them less like to get call/sms from the apparel stores and
from the hotels and restaurants.
Many youngsters like to respond to advertisement and also like to purchase by analyzing the features
and schemes that are provided so when the service is customized it becomes more useful to youngsters
Youngsters do not trust on the SMS because they think that there is always some conditions apply
which they do not disclose
Majority of respondents have not registered in the DND (do not disturb service). The one of main
reason is that they are unaware about that and also it makes no difference to them whether advertisement
comes or not.
Youngsters like to read the sms but they rarely go through it for mobile marketing because they
generally feel that it will cost more and amount will charged. That’s the main reason they ignore the sms
on the immediate basis
Recall of the brand does not increase but sometimes it creates negative impression if mobile marketing
is done on very frequent basis.
Young Customers are now like to know full details before the buying the product and by the mobile
advertising the detail of the product can not been known so people give less preference to mobile
advertising.
Family income of the Youngsters is increasing day by day so they like to use new technologies.
Entire world has been reconstructed into a global suburb. In order to survive in the competitive
environment the marketers need to be flexible. Generation Y are selective and are more dynamic as
compared to Generation X. The role of mobile phones in their life made the marketers to create new
channel to communicate with young customers. This paper aims to depict the impact of mobile marketing
on youngsters
1.Understanding Your audience: To understand what your audience would respond to best on mobile,
consider what you know about how they interact with brand today – and what you know about how they
use mobile.
2. Define your mobile marketing strategies: Which of your business objectives can mobile help you meet?
How deep will your mobile marketing strategy go at this time, given available resources ? Will it be an
add on, or are you moving to a mobile –first approach? The answers to these kinds of question will help
you identify the best approach for getting started
3.Explore Mobile Marketing Channel: Mobile marketing strategies should leverage a number of different
mobile marketing channels- using these channels in concert with each other, employing each one in
service to both the user and business goals.
Here are some points to consider for core mobile marketing channels.
Mobile app
Mobile Wallet
SMS/MMS
Marketing strategies are evolving ever than before and Mobile Marketing is an integral part of
any marketing strategy . The main reason behind this is thast youngsters spend a lot time with
their mobile.
This study aims to focus on factors affecting consumer attitudes toward mobile marketing. Consequently,
the objectives are identified as follows:
Testing the research model, designed to gauge the effect of the attributes of mobile
marketing, information, excitement and credibility on the attitudes of youth (sample
respondents) toward mobile marketing.
Identifying the attributes of mobile marketing that affect the attitudes of youth (sample
respondents) toward mobile marketing.
Identifying the impact of exciting and attractive information on the attitudes of youth
(sample respondents) about mobile marketing.
Determining the impact of the credibility of the information on the attitudes of youth
(sample respondents) to mobile marketing..
The primary objective of the study is to find out the impact of Mobile Marketing on
youngsters. The other objectives are :
2. To understand whether the industry has adopted Mobile Marketing as an effective marketing
strategy from the point of view of customers.
Methodolgy used to collect data- This research is empirical and analytical in nature. For
collecting primary data, FieldSurvey technique is employed. Questionnaire framed to collect data
from youngsters who areusing mobile phones has been Total
SCOPE OF THE STUDY- Youngsters today are knowledgeable and they know what they
want. They never compromise on the quality of products used by them. They are well aware
about the brands and competition between these brands. They ensure that they are never
exploited by these competitors. The paper intends to study the effectiveness of Mobile Marketing
among youngsters. The target audience for this study is youngsters i.e. the people in the age
group of 18-35.
Mobile marketing has a great scope as youth spend maximum time on their mobile devices and
hence to reach youth has become easy. Big brands have got their location based mobile apps
developed in order to serve youth better. They give out discount coupons on messages or emails
to lure youth. These coupons come with a validity period which youth can use according to their
convenience. Youth don’t have to remember to carry these coupons wherever they go
Since internet access, smart phone and tablets have brought entire world within our reach at
any time, it has become easy for us to browse web for any information. Maximum number of
time youth use their mobile to search web and gather information. A company can tap a
customer and interact with, when a customer is in actual need. Hassle-free marketing and selling
at the right time is the beauty of mobile marketing.
One can find brands marketing on news apps installed on mobile. This is one of the
indirect ways for online businesses to reach youth and advertise their products. Mobile
marketing leaves no opportunities to reach youth.The direct way of advertising is sending
bulk messages on text or internet messenger or mobile app.
Even small shopkeepers have also understood the power of mobile marketing and they
have also started intimating their young customers on either text message or other
messenger services. Since they are small time shopkeepers and cannot take risk of losing
young customers, they seek their customers’ permission.
The Mobile Marketing Market was valued at USD 66.42 billion in 2019 and is expected to
reach USD 253.40 billion by 2025, at a CAGR of 25% over the forecast period 2020 - 2025.
Mobile marketing is emerging as the most effective marketing technique via which
enterprises can engage with its customer at any time of the day regardless of the location.
Mobile marketing is the multichannel promotion of products or services through mobile
phone, mobile devices, smartphones, and networks. Mobile marketing channels are the
fastest growing mean to connect with the audience since customers check text messages
more frequently than emails.
With the ongoing shift from traditional to the digital platform, it has been more flexible
for the online retailers to generate their leads (B2C) by using the branding and
advertising strategy with the help of the different mobile devices.
Moreover, major e-commerce giants are using the mobile marketing strategies to
generate a recurring source of income, increase customer loyalty, and acquisition which
will help them to improve the bottom line of their business in the near future.
Young Consumers with different personality traits and expertise levels will perceive
different message designs as more appealing and enjoy different types of message
content. So there is no global best way of designing a mobile marketing message. The
most effective design depends on the target of the marketing message. Nevertheless,
empiric studies and market-based evidence suggest that mobile marketing messages
should be short and to the point, be interesting and relevant for the target group, call to
action, include incentives and include elements to facilitate viral effect (e.g., incentives
for sharing, seem as little as advertising as possible, and include self-expressive aspects).
The literature unanimously agrees on the importance of the prior explicit permission of
the consumer for the acceptance and success of a marketing message. Prior permission is
even more critical in the mobile context because in all other marketing channels,
consumers may simply choose to ignore or get away from marketing effort if they are not
interested in it or do not like it, which is not possible when the message is delivered to the
personal mobile handset of an individual. Permission-based mobile marketing requires
that consumers have to opt in before they receive mobile advertising messages of any
kind, have the ability to control timing and frequency of message delivery and the content
of the message, and have the option to opt out at any stage.
Prior empiric studies found support for the claim that user control has a significant effect
on consumers attitudes toward mobile marketing and willingness to receive mobile
advertising messages. The situational context, especially time and location in which a
mobile ad is received by a consumer is of crucial importance to how he/she reacts to it.
Mobile marketing presents an unprecedented opportunity to deliver contextually
congruent marketing messages. Location sensing ability and immediate message delivery
features of the mobile medium enable marketers to communicate with their customer
exactly at the time when the communication is most needed and when it is most likely to
be effective. Therefore, an important success factor of mobile marketing is timing of
message delivery. It should be contextually congruent both with the situation the user is
in and the role the user plays at that particular time. The mobile medium has a strong
inherent viral element. Anything that has a conversational value with a peer has a strong
potential to be used by a person as a basis to interact with others in his or her social
network. It may be considered as a convenient way to remind others that he or she is an
active member of that community
Mobile devices are attractive media for directly communicating with consumers who
have become busier and more difficult to reach. While SMS (short message service)
advertising has received some attention in the literature, Bluetooth-enabled advertising is
still unexplored.
they needed both to be in control of the frequency with which they receive messages and
also to be reassured that the medium could ensure privacy and security.
The research further indicated that peers influence the acceptance of Bluetooth-driven
advertising.
Mobile marketing is still in its early stages, and mobile marketing practices will
likely go through fundamental changes as the technology continues to evolve
(Karjaluoto et al., 2008). Research on mobile marketing is also in its early stages, but
the literature is growing. Prior research has focused on themes such as mobile phone
consumption (Andrews et al., 2005), consumer perceptions and attitudes towards
mobile marketing (Roach, 2009; Barutc¸u, 2007; Karjaluoto and Alatalo, 2007; Grant and
O’Donohoe, 2007), consumer responsiveness (Heinonen and Strandvik, 2007), the role
of permission (Barnes and Scornavacca, 2004; Jayawardhena et al., 2009), and adopter
segments and cultural influences on adoption (De Marez et al., 2007; Muk, 2007).
Moreover, the literature to date is based on mobile marketing practices using the
classic mobile phone, with its very limited capability, compared to today’s
smartphones, which have almost unlimited potential. As Barnes and Scornavacca
(2004) note, the majority of mobile marketing to date are SMS-based and uses simple,
push-based practices. However, the introduction of smartphones means that marketers
can develop a wider range of pull-based services and employ a larger set of marketing
techniques. Further, with the introduction of new technologies, such as radio frequency
identification tags (RFID) and e-wallets that easily integrate with smartphones,
marketers and consumers will be exposed to a whole range of marketing innovations
that were not possible with the classic mobile phone. For example, smartphone apps
such as Amazon’s Price Check and Google Shopper allow consumers in a physical
retail store to use their smartphone to enter the bar code of a product or take a photo of
a product and immediately receive price comparisons, customer reviews, discounts,
coupons, and other information on their smartphones while also looking at the product
in the store. The smartphone has the capability to transform consumers’ shopping
experiences and the value of marketing: consumers can now easily and quickly shop
across multiple channels (physical store, web-based, and mobile) with substantially
greater level of convenience, flexibility, efficiency, and personalisation. However, this
technology also has the potential to be intrusive and annoying.
Further research is needed to gain clearer insights into how consumers will react to
this type of marketing given the many technological and marketing capabilities that
smartphones offer over the traditional mobile phone. Classic mobile phones offer
primarily talk and text-messaging capabilities with a few other features, such as a
camera, calendar, and organiser. However, smartphones (e.g. iPhone and BlackBerry)
have larger and higher resolution screens and offer consumers a wide array of features,
including mobile web browsing, thousands of apps, e-mail, instant messaging, picture
messaging, video and audio playback, GPS, games, a video camera, picture and video
editing, and much more. In addition, telecom carriers are encouraging smartphone
Mobile
marketing via
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users to take advantage of all of these features by offering consumers data plans that
persuade them to use their smartphones more often.
The increased capabilities of smartphones have presented marketers with a
substantially expanded set of possibilities to reach and serve consumers not only by
using rich media – text, audio, and video – but also through a variety of apps, which
are pull-based. Indeed, consumers are attracted to smartphones for their many
practical and entertainment applications and because they can personalise the devices
with add-on features and apps specific to their needs (comScore, 2009). Further, flat-fee
unlimited social media plans allow consumers unlimited browsing and use of popular
social networking sites, such as Facebook, Twitter, Flickr, and YouTube. This presents
marketers with a huge opportunity to integrate and expand their social media
marketing strategy with their mobile marketing strategy. Also, as the prices of data
plans continue downward, consumers will most likely increase the amount of time they
spend online via their smartphones.
The present study contributes to the growing literature on mobile marketing by
examining the intentions of Canadian consumers to adopt innovative marketing
services via the smartphone. The smartphone is seen as another key stage in the
evolution of mobile marketing technology and practices because it has the capability to
seamlessly integrate Bluetooth, location-based marketing, and other technologies with
web-based and physical store marketing to produce superior consumer experiences.
Thus, understanding its impact on consumers’ intentions to engage in mobile
marketing will add to prior research that was conducted in the era of the classic mobile
phone, where mobile marketing was limited to SMS or very limited multimedia
message service (MMS). Barnes and Scornavacca (2004) noted that research on mobile
marketing based on SMS may need fine-tuning with the introduction of new
technologies, which could substantially change marketing practices. Smartphones
offer many more opportunities for marketers to connect with and serve consumers in
better ways. Additionally, this study’s focus on Canada adds to the empirical evidence
being gathered from around the world since most previous studies on mobile
marketing are based on consumers in Europe, except for those of Roach (2009), Barutc¸u
(2007), Muk (2007), Megdadi and Nusair (2011), and Sultan et al. (2009), which are based
on consumers in Australia, Turkey, the USA and Taiwan, Jordan, and Pakistan,
respectively.
The remainder of this article is structured as follows. The next section presents a
brief review of the literature on mobile marketing, followed by a discussion of our
conceptual framework and hypotheses. We then describe the research method, present
the results, and discuss the implications of our findings for managerial practice and
ongoing research. We conclude by highlighting the limitations of our study and
avenues for further researMarketing to children on mobile continues to be a tough balancing act
with very real and potentially significant repercussions if not handled correctly, which is why big
players are treading carefully even as they remain reluctant to abandon the space completely.
The Federal Trade Commission has imposed hefty fines on marketers who have collected
information from children under 13 for violating the Children?s Online Privacy Protection Act
(COPPA), and has prosecuted mobile applications as well as app stores that manipulate children
into making in-game purchases. The crackdown underscores the need for marketers to act
responsibly as mobile gains traction in the marketplace, especially with younger, more
vulnerable consumers.
?It's important for mobile-marketers to understand that any type of marketing to children is
unfair,? said Josh Golin, associate director, Campaign for a Commercial-Free Childhood, an
organization that supports limiting commercial access to children and ending child-targeted
marketing. ?Children are more vulnerable to advertising than adults. And while kids may be
increasingly adept at using mobile devices, that doesn't mean they understand how they're being
marketed to.
?Marketers should also be aware that parents are increasingly concerned about privacy issues
and mobile marketing to kids and that companies that target children directly on mobile devices
risk harming their brands,? he said.
Complex topic
Experts agree that marketing to young mobile users is the most complex and sensitive mobile-
marketing topic, due to the privacy and security issues the practice raises. Yet despite this tricky
area, marketers continue to dabble in it, lured by the promise of connecting with legions of
mobile-addicted youngsters.
DinnerTime Plus is a free Android app with real-time remote monitoring and parental control
features that lets parents manage and take control of their children?s smartphone/tablet usage
habits and addiction.
The app works from the parent?s Android phone or iPhone to link with up to two youngsters'
Android devices. It gives parents the ability to easily lock and unlock their child?s Android tablet
or smartphone during dinner time, studying time or bed time, without intrusive controls, no
matter where they ar
Studies show 89 percent of 6-9 year-olds are active online.
?Recent studies showed that kids can use a smartphone before they learn to write their names or
tie their shoes,? he said. ?Eighty-nine percent of 6-9 year-olds are active online, and 14 percent
of 3-5 year-olds tie their own shoes, but a staggering 57 percent know how to operate a tablet.?
Parents often voice concerns that their kids are making unwanted in-app-purchases from games,
inadvertently clicking on some mobile advertising and being redirected to an unknown site,
viewing age-inappropriate advertising content, Mr. Sah said.
Marketers need to implement safety measures such as confirming the user?s age, or gaining
parental consent through the sending of a confirmation link to a parent or guardian's email
address before anything is activated, the executive said.
Kuddle, a Norwegian picture sharing app designed for children, plans to launch a child-safe
tablet with Microsoft on Dec. 1.
The first device will be an iPad Mini-sized tablet priced under $100. The device does not permit
downloading of games such as Grand Theft Auto or apps such as Snapchat.
Kuddle, which bills itself as a rival to Instagram, lets parents monitor what their children publish
and keeps access to content restricted, preventing strangers from seeing and sharing pictures.
There are no hashtags or comments to prevent online bullying and "likes" are anonymous.
But even the best app features may be overmatched against the skills of a generation of children
who live and breathe technology.
?The fact is, it isn?t very difficult for children to gain free, unmonitored access to the Internet -
even if their parents block it on their phones,? said Shuli Lowy, marketing director, Ping Mobile.
?Wi-Fi hotspots are everywhere and there are many mobile devices (aside from phones) that can
connect to them.
?The key, therefore, is for parents to have early conversations with their children about how to
use mobile and the Web in a positive, healthy manner.?
Before commenting for this article, Ms. Lowy asked that her remarks be preceded by a
disclaimer emphasizing that she is not a lawyer and that her information is for educational
purposes only. She urged those involved in tracking or marketing to children through mobile to
seek legal council.
?The mobile ecosystem is massive,? she said. ?If you do not know any information about who
your ads are going to, then it is easy to throw large ad budgets down the drain quickly.
?Owners of ad inventory therefore work to get as much information about their users as
possible,? she said. ?Gathering data on a mobile user allows app developers to provide a better,
more personalized service and dramatically increase the value of their ad inventory. In some
instances, just one piece of information about a mobile user (such as their location) can literally
double the value of an ad spot.
?The key issue is that COPPA laws do not allow marketers to disseminate personal information
about children under 13, without verifiable parent consent.?
Under the law, personal information is defined as anything that can personally identify the child,
including first and last name, a physical address, social security number, an email address or
contact information, a phone number, a persistent identifier, or any sets of information which
when combined can uniquely identify the youngster.
This article addresses mobile marketing as a phenomenon of great impact and relevance for
marketing communications nowadays. The growing adoption by consumers of mobile devices
(smartphone and tablet), raises the need to continue studying how these new mobile digital
platforms would be generating a context for the modification of the interaction and
communication between the brands and their consumers. The increased consumption of mobile
digital media has allowed the expansion in the number and complexity of tactics through which
brands can create and maintain more lasting relationships with consumers. For instance,
computer and communications market research firm International
Mobile marketing is still in its early stages, and mobile marketing practices will
likely go through fundamental changes as the technology continues to evolve
(Karjaluoto et al., 2008). Research on mobile marketing is also in its early stages, but
the literature is growing. Prior research has focused on themes such as mobile phone
consumption (Andrews et al., 2005), consumer perceptions and attitudes towards
mobile marketing (Roach, 2009; Barutc¸u, 2007; Karjaluoto and Alatalo, 2007; Grant and
O’Donohoe, 2007), consumer responsiveness (Heinonen and Strandvik, 2007), the role
of permission (Barnes and Scornavacca, 2004; Jayawardhena et al., 2009), and adopter
segments and cultural influences on adoption (De Marez et al., 2007; Muk, 2007).
Moreover, the literature to date is based on mobile marketing practices using the
classic mobile phone, with its very limited capability, compared to today’s
smartphones, which have almost unlimited potential. As Barnes and Scornavacca
(2004) note, the majority of mobile marketing to date are SMS-based and uses simple,
push-based practices. However, the introduction of smartphones means that marketers
can develop a wider range of pull-based services and employ a larger set of marketing
techniques. Further, with the introduction of new technologies, such as radio frequency
identification tags (RFID) and e-wallets that easily integrate with smartphones,
marketers and consumers will be exposed to a whole range of marketing innovations
that were not possible with the classic mobile phone. For example, smartphone apps
such as Amazon’s Price Check and Google Shopper allow consumers in a physical
retail store to use their smartphone to enter the bar code of a product or take a photo of
a product and immediately receive price comparisons, customer reviews, discounts,
coupons, and other information on their smartphones while also looking at the product
in the store. The smartphone has the capability to transform consumers’ shopping
experiences and the value of marketing: consumers can now easily and quickly shop
across multiple channels (physical store, web-based, and mobile) with substantially
greater level of convenience, flexibility, efficiency, and personalisation. However, this
technology also has the potential to be intrusive and annoying.
Further research is needed to gain clearer insights into how consumers will react to
this type of marketing given the many technological and marketing capabilities that
smartphones offer over the traditional mobile phone. Classic mobile phones offer
primarily talk and text-messaging capabilities with a few other features, such as a
camera, calendar, and organiser. However, smartphones (e.g. iPhone and BlackBerry)
have larger and higher resolution screens and offer consumers a wide array of features,
including mobile web browsing, thousands of apps, e-mail, instant messaging, picture
messaging, video and audio playback, GPS, games, a video camera, picture and video
editing, and much more. In addition, telecom carriers are encouraging smartphone
Mobile
marketing via
smartphones
419
users to take advantage of all of these features by offering consumers data plans that
persuade them to use their smartphones more often.
The increased capabilities of smartphones have presented marketers with a
substantially expanded set of possibilities to reach and serve consumers not only by
using rich media – text, audio, and video – but also through a variety of apps, which
are pull-based. Indeed, consumers are attracted to smartphones for their many
practical and entertainment applications and because they can personalise the devices
with add-on features and apps specific to their needs (comScore, 2009). Further, flat-fee
unlimited social media plans allow consumers unlimited browsing and use of popular
social networking sites, such as Facebook, Twitter, Flickr, and YouTube. This presents
marketers with a huge opportunity to integrate and expand their social media
marketing strategy with their mobile marketing strategy. Also, as the prices of data
plans continue downward, consumers will most likely increase the amount of time they
spend online via their smartphones.
The present study contributes to the growing literature on mobile marketing by
examining the intentions of Canadian consumers to adopt innovative marketing
services via the smartphone. The smartphone is seen as another key stage in the
evolution of mobile marketing technology and practices because it has the capability to
seamlessly integrate Bluetooth, location-based marketing, and other technologies with
web-based and physical store marketing to produce superior consumer experiences.
Thus, understanding its impact on consumers’ intentions to engage in mobile
marketing will add to prior research that was conducted in the era of the classic mobile
phone, where mobile marketing was limited to SMS or very limited multimedia
message service (MMS). Barnes and Scornavacca (2004) noted that research on mobile
marketing based on SMS may need fine-tuning with the introduction of new
technologies, which could substantially change marketing practices. Smartphones
offer many more opportunities for marketers to connect with and serve consumers in
better ways. Additionally, this study’s focus on Canada adds to the empirical evidence
being gathered from around the world since most previous studies on mobile
marketing are based on consumers in Europe, except for those of Roach (2009), Barutc¸u
(2007), Muk (2007), Megdadi and Nusair (2011), and Sultan et al. (2009), which are based
on consumers in Australia, Turkey, the USA and Taiwan, Jordan, and Pakistan,
respectively.
The remainder of this article is structured as follows. The next section presents a
brief review of the literature on mobile marketing, followed by a discussion of our
conceptual framework and hypotheses. We then describe the research method, present
the results, and discuss the implications of our findings for managerial practice and
ongoing research. We conclude by highlighting the limitations of our study and
avenues for further research
Mobile marketing is still in its early stages, and mobile marketing practices will
likely go through fundamental changes as the technology continues to evolve
(Karjaluoto et al., 2008). Research on mobile marketing is also in its early stages, but
the literature is growing. Prior research has focused on themes such as mobile phone
consumption (Andrews et al., 2005), consumer perceptions and attitudes towards
mobile marketing (Roach, 2009; Barutc¸u, 2007; Karjaluoto and Alatalo, 2007; Grant and
O’Donohoe, 2007), consumer responsiveness (Heinonen and Strandvik, 2007), the role
of permission (Barnes and Scornavacca, 2004; Jayawardhena et al., 2009), and adopter
segments and cultural influences on adoption (De Marez et al., 2007; Muk, 2007).
Moreover, the literature to date is based on mobile marketing practices using the
classic mobile phone, with its very limited capability, compared to today’s
smartphones, which have almost unlimited potential. As Barnes and Scornavacca
(2004) note, the majority of mobile marketing to date are SMS-based and uses simple,
push-based practices. However, the introduction of smartphones means that marketers
can develop a wider range of pull-based services and employ a larger set of marketing
techniques. Further, with the introduction of new technologies, such as radio frequency
identification tags (RFID) and e-wallets that easily integrate with smartphones,
marketers and consumers will be exposed to a whole range of marketing innovations
that were not possible with the classic mobile phone. For example, smartphone apps
such as Amazon’s Price Check and Google Shopper allow consumers in a physical
retail store to use their smartphone to enter the bar code of a product or take a photo of
a product and immediately receive price comparisons, customer reviews, discounts,
coupons, and other information on their smartphones while also looking at the product
in the store. The smartphone has the capability to transform consumers’ shopping
experiences and the value of marketing: consumers can now easily and quickly shop
across multiple channels (physical store, web-based, and mobile) with substantially
greater level of convenience, flexibility, efficiency, and personalisation. However, this
technology also has the potential to be intrusive and annoying.
Further research is needed to gain clearer insights into how consumers will react to
this type of marketing given the many technological and marketing capabilities that
smartphones offer over the traditional mobile phone. Classic mobile phones offer
primarily talk and text-messaging capabilities with a few other features, such as a
camera, calendar, and organiser. However, smartphones (e.g. iPhone and BlackBerry)
have larger and higher resolution screens and offer consumers a wide array of features,
including mobile web browsing, thousands of apps, e-mail, instant messaging, picture
messaging, video and audio playback, GPS, games, a video camera, picture and video
editing, and much more. In addition, telecom carriers are encouraging smartphone
Mobile
marketing via
smartphones
419
users to take advantage of all of these features by offering consumers data plans that
persuade them to use their smartphones more often.
The increased capabilities of smartphones have presented marketers with a
substantially expanded set of possibilities to reach and serve consumers not only by
using rich media – text, audio, and video – but also through a variety of apps, which
are pull-based. Indeed, consumers are attracted to smartphones for their many
practical and entertainment applications and because they can personalise the devices
with add-on features and apps specific to their needs (comScore, 2009). Further, flat-fee
unlimited social media plans allow consumers unlimited browsing and use of popular
social networking sites, such as Facebook, Twitter, Flickr, and YouTube. This presents
marketers with a huge opportunity to integrate and expand their social media
marketing strategy with their mobile marketing strategy. Also, as the prices of data
plans continue downward, consumers will most likely increase the amount of time they
spend online via their smartphones.
The present study contributes to the growing literature on mobile marketing by
examining the intentions of Canadian consumers to adopt innovative marketing
services via the smartphone. The smartphone is seen as another key stage in the
evolution of mobile marketing technology and practices because it has the capability to
seamlessly integrate Bluetooth, location-based marketing, and other technologies with
web-based and physical store marketing to produce superior consumer experiences.
Thus, understanding its impact on consumers’ intentions to engage in mobile
marketing will add to prior research that was conducted in the era of the classic mobile
phone, where mobile marketing was limited to SMS or very limited multimedia
message service (MMS). Barnes and Scornavacca (2004) noted that research on mobile
marketing based on SMS may need fine-tuning with the introduction of new
technologies, which could substantially change marketing practices. Smartphones
offer many more opportunities for marketers to connect with and serve consumers in
better ways. Additionally, this study’s focus on Canada adds to the empirical evidence
being gathered from around the world since most previous studies on mobile
marketing are based on consumers in Europe, except for those of Roach (2009), Barutc¸u
(2007), Muk (2007), Megdadi and Nusair (2011), and Sultan et al. (2009), which are based
on consumers in Australia, Turkey, the USA and Taiwan, Jordan, and Pakistan,
respectively.
The remainder of this article is structured as follows. The next section presents a
brief review of the literature on mobile marketing, followed by a discussion of our
conceptual framework and hypotheses. We then describe the research method, present
the results, and discuss the implications of our findings for managerial practice and
ongoing research. We conclude by highlighting the limitations of our study and
avenues for further research
Mobile marketing is still in its early stages, and mobile marketing practices will
likely go through fundamental changes as the technology continues to evolve
(Karjaluoto et al., 2008). Research on mobile marketing is also in its early stages, but
the literature is growing. Prior research has focused on themes such as mobile phone
consumption (Andrews et al., 2005), consumer perceptions and attitudes towards
mobile marketing (Roach, 2009; Barutc¸u, 2007; Karjaluoto and Alatalo, 2007; Grant and
O’Donohoe, 2007), consumer responsiveness (Heinonen and Strandvik, 2007), the role
of permission (Barnes and Scornavacca, 2004; Jayawardhena et al., 2009), and adopter
segments and cultural influences on adoption (De Marez et al., 2007; Muk, 2007).
Moreover, the literature to date is based on mobile marketing practices using the
classic mobile phone, with its very limited capability, compared to today’s
smartphones, which have almost unlimited potential. As Barnes and Scornavacca
(2004) note, the majority of mobile marketing to date are SMS-based and uses simple,
push-based practices. However, the introduction of smartphones means that marketers
can develop a wider range of pull-based services and employ a larger set of marketing
techniques. Further, with the introduction of new technologies, such as radio frequency
identification tags (RFID) and e-wallets that easily integrate with smartphones,
marketers and consumers will be exposed to a whole range of marketing innovations
that were not possible with the classic mobile phone. For example, smartphone apps
such as Amazon’s Price Check and Google Shopper allow consumers in a physical
retail store to use their smartphone to enter the bar code of a product or take a photo of
a product and immediately receive price comparisons, customer reviews, discounts,
coupons, and other information on their smartphones while also looking at the product
in the store. The smartphone has the capability to transform consumers’ shopping
experiences and the value of marketing: consumers can now easily and quickly shop
across multiple channels (physical store, web-based, and mobile) with substantially
greater level of convenience, flexibility, efficiency, and personalisation. However, this
technology also has the potential to be intrusive and annoying.
Further research is needed to gain clearer insights into how consumers will react to
this type of marketing given the many technological and marketing capabilities that
smartphones offer over the traditional mobile phone. Classic mobile phones offer
primarily talk and text-messaging capabilities with a few other features, such as a
camera, calendar, and organiser. However, smartphones (e.g. iPhone and BlackBerry)
have larger and higher resolution screens and offer consumers a wide array of features,
including mobile web browsing, thousands of apps, e-mail, instant messaging, picture
messaging, video and audio playback, GPS, games, a video camera, picture and video
editing, and much more. In addition, telecom carriers are encouraging smartphone
Mobile
marketing via
smartphones
419
users to take advantage of all of these features by offering consumers data plans that
persuade them to use their smartphones more often.
The increased capabilities of smartphones have presented marketers with a
substantially expanded set of possibilities to reach and serve consumers not only by
using rich media – text, audio, and video – but also through a variety of apps, which
are pull-based. Indeed, consumers are attracted to smartphones for their many
practical and entertainment applications and because they can personalise the devices
with add-on features and apps specific to their needs (comScore, 2009). Further, flat-fee
unlimited social media plans allow consumers unlimited browsing and use of popular
social networking sites, such as Facebook, Twitter, Flickr, and YouTube. This presents
marketers with a huge opportunity to integrate and expand their social media
marketing strategy with their mobile marketing strategy. Also, as the prices of data
plans continue downward, consumers will most likely increase the amount of time they
spend online via their smartphones.
The present study contributes to the growing literature on mobile marketing by
examining the intentions of Canadian consumers to adopt innovative marketing
services via the smartphone. The smartphone is seen as another key stage in the
evolution of mobile marketing technology and practices because it has the capability to
seamlessly integrate Bluetooth, location-based marketing, and other technologies with
web-based and physical store marketing to produce superior consumer experiences.
Thus, understanding its impact on consumers’ intentions to engage in mobile
marketing will add to prior research that was conducted in the era of the classic mobile
phone, where mobile marketing was limited to SMS or very limited multimedia
message service (MMS). Barnes and Scornavacca (2004) noted that research on mobile
marketing based on SMS may need fine-tuning with the introduction of new
technologies, which could substantially change marketing practices. Smartphones
offer many more opportunities for marketers to connect with and serve consumers in
better ways. Additionally, this study’s focus on Canada adds to the empirical evidence
being gathered from around the world since most previous studies on mobile
marketing are based on consumers in Europe, except for those of Roach (2009), Barutc¸u
(2007), Muk (2007), Megdadi and Nusair (2011), and Sultan et al. (2009), which are based
on consumers in Australia, Turkey, the USA and Taiwan, Jordan, and Pakistan,
respectively.
The remainder of this article is structured as follows. The next section presents a
brief review of the literature on mobile marketing, followed by a discussion of our
conceptual framework and hypotheses. We then describe the research method, present
the results, and discuss the implications of our findings for managerial practice and
ongoing research. We conclude by highlighting the limitations of our study and
avenues for further research
Data Corporation (IDC) points out that the global smartphone market grew by 40% in 2013 and
is likely to reach 1.07 billion a year by 2017. The factors associated with this important growth,
according to IDC, are, first and foremost, the subsidies offered by operators to users in exchange
for the adoption by them of a minimum stay clause in their mobile communication service plan.
It is important then to study the mechanisms of adoption and use of mobile technologies, since
unlike the desktop computer, and even the laptop, smartphones are considered as personal
devices of private use, which suggests that consumers have different attitudes towards mobile
services compared to traditional media. According to these authors, television was the first
screen that marketers relied on to provide information to young consumers. After that, the
internet appeared as a second screen through which it was tried to satisfy this need. The rise of e-
commerce facilitated the emergence of a third screen, mobile marketing, which now allows users
to access an almost unlimited amount of information on brands at any time and place through
mobile devices. However, in spite of the advantages that mobile communication offers to
companies, the aspect related to the confidence that young consumers show to these tactics can
become a factor against for the creation of loyalty and the development of services in this digital
context.
The study surveyed 488 young professionals to examine the relationships between social media
and productivity in the workplace. Drawing on Users and Gratification theory, random samples
were taken from the study group between the ages of 18-35 years. The results indicate that there
is a positive relationship between productivity at the workplace and social media. However, the
impact appears to be related to certain specific uses. Networking, finding information as well as
knowledge sharing and exchanging appear to have a higher impact on the professional
enhancement of the young professionals. Also the results show that more females (64%) than
male (36%) are influenced by social media sites in the professional discharge of their duties. In
addition, respondents indicated that social media is a catalyst for the enhancement of their
professional development. The study concludes that organizations should take advantage of the
strengths in social media use and develop appropriate policies at workplace that will govern the
use of social media sites to gain competitive advantage. Key words: social media, social
network, young professionals.
Discusses the relevance of mobile phone technology in marketing to young consumers aged
between 18 and 22; these are the millennials who are heavy mobile phone users. Shows how
permission is vital in connecting with these consumers interactively: they do not hate all
advertising, but they hate “spim”, which is receiving, and paying for, spam messages over their
mobile phone instant messaging systems. Describes some relevant features of this converging
technology: podcasting and mobcasting, super‐megapixel camera phones, television on demand,
purseless payments using radio frequency identification (RFID), recognition technologies, and
mobile teleconferencing. Suggests some strategies for marketing to millennials: develop case‐
specific insights, target mindsets, and develop new ways of connecting with Young consumers.
Mobile marketing is still in its early stages, and mobile marketing practices will
likely go through fundamental changes as the technology continues to evolve
(Karjaluoto et al., 2008). Research on mobile marketing is also in its early stages, but
the literature is growing. Prior research has focused on themes such as mobile phone
consumption (Andrews et al., 2005), consumer perceptions and attitudes towards
mobile marketing (Roach, 2009; Barutc¸u, 2007; Karjaluoto and Alatalo, 2007; Grant and
O’Donohoe, 2007), consumer responsiveness (Heinonen and Strandvik, 2007), the role
of permission (Barnes and Scornavacca, 2004; Jayawardhena et al., 2009), and adopter
segments and cultural influences on adoption (De Marez et al., 2007; Muk, 2007).
Moreover, the literature to date is based on mobile marketing practices using the
classic mobile phone, with its very limited capability, compared to today’s
smartphones, which have almost unlimited potential. As Barnes and Scornavacca
(2004) note, the majority of mobile marketing to date are SMS-based and uses simple,
push-based practices. However, the introduction of smartphones means that marketers
can develop a wider range of pull-based services and employ a larger set of marketing
techniques. Further, with the introduction of new technologies, such as radio frequency
identification tags (RFID) and e-wallets that easily integrate with smartphones,
marketers and consumers will be exposed to a whole range of marketing innovations
that were not possible with the classic mobile phone. For example, smartphone apps
such as Amazon’s Price Check and Google Shopper allow consumers in a physical
retail store to use their smartphone to enter the bar code of a product or take a photo of
a product and immediately receive price comparisons, customer reviews, discounts,
coupons, and other information on their smartphones while also looking at the product
in the store. The smartphone has the capability to transform consumers’ shopping
experiences and the value of marketing: consumers can now easily and quickly shop
across multiple channels (physical store, web-based, and mobile) with substantially
greater level of convenience, flexibility, efficiency, and personalisation. However, this
technology also has the potential to be intrusive and annoying.
Further research is needed to gain clearer insights into how consumers will react to
this type of marketing given the many technological and marketing capabilities that
smartphones offer over the traditional mobile phone. Classic mobile phones offer
primarily talk and text-messaging capabilities with a few other features, such as a
camera, calendar, and organiser. However, smartphones (e.g. iPhone and BlackBerry)
have larger and higher resolution screens and offer consumers a wide array of features,
including mobile web browsing, thousands of apps, e-mail, instant messaging, picture
messaging, video and audio playback, GPS, games, a video camera, picture and video
editing, and much more. In addition, telecom carriers are encouraging smartphone
Mobile
marketing via
smartphones
419
users to take advantage of all of these features by offering consumers data plans that
persuade them to use their smartphones more often.
The increased capabilities of smartphones have presented marketers with a
substantially expanded set of possibilities to reach and serve consumers not only by
using rich media – text, audio, and video – but also through a variety of apps, which
are pull-based. Indeed, consumers are attracted to smartphones for their many
practical and entertainment applications and because they can personalise the devices
with add-on features and apps specific to their needs (comScore, 2009). Further, flat-fee
unlimited social media plans allow consumers unlimited browsing and use of popular
social networking sites, such as Facebook, Twitter, Flickr, and YouTube. This presents
marketers with a huge opportunity to integrate and expand their social media
marketing strategy with their mobile marketing strategy. Also, as the prices of data
plans continue downward, consumers will most likely increase the amount of time they
spend online via their smartphones.
The present study contributes to the growing literature on mobile marketing by
examining the intentions of Canadian consumers to adopt innovative marketing
services via the smartphone. The smartphone is seen as another key stage in the
evolution of mobile marketing technology and practices because it has the capability to
seamlessly integrate Bluetooth, location-based marketing, and other technologies with
web-based and physical store marketing to produce superior consumer experiences.
Thus, understanding its impact on consumers’ intentions to engage in mobile
marketing will add to prior research that was conducted in the era of the classic mobile
phone, where mobile marketing was limited to SMS or very limited multimedia
message service (MMS). Barnes and Scornavacca (2004) noted that research on mobile
marketing based on SMS may need fine-tuning with the introduction of new
technologies, which could substantially change marketing practices. Smartphones
offer many more opportunities for marketers to connect with and serve consumers in
better ways. Additionally, this study’s focus on Canada adds to the empirical evidence
being gathered from around the world since most previous studies on mobile
marketing are based on consumers in Europe, except for those of Roach (2009), Barutc¸u
(2007), Muk (2007), Megdadi and Nusair (2011), and Sultan et al. (2009), which are based
on consumers in Australia, Turkey, the USA and Taiwan, Jordan, and Pakistan,
respectively.
The remainder of this article is structured as follows. The next section presents a
brief review of the literature on mobile marketing, followed by a discussion of our
conceptual framework and hypotheses. We then describe the research method, present
the results, and discuss the implications of our findings for managerial practice and
ongoing research. We conclude by highlighting the limitations of our study and
avenues for further research
CHAPTER – 3 CONCEPTUAL FRAMEWORK
First, a quick definition: Mobile marketing is the art of marketing your business to appeal to
mobile device users. When done right, mobile marketing provides customers or potential
customers using smartphones with personalized, time- and location-sensitive information so that
they can get what they need exactly when they need it, even if they're on the go.
I would tell you that mobile is the future of marketing, but really the era of mobile has already
arrived. If you're not implementing some kind of mobile marketing strategy, you're already
trailing behind!
As you can see from the graph below, more users are spending larger amounts of time engaged
with mobile devices than ever before. We can expect this trend to continue even further in the
future, so get ready!
80% of mobile device time in spent on apps, with game apps eating up the largest percent
of app time
People browse 70% more web pages on tablets than smartphones
Retail conversion rates are 2.2% on tablets, considerably higher than 0.7% on
smartphones, but traditional PC conversion rates are still highest at 3.3%
Mobile searches have increased 200% year over year in 2012
Mobile is predicted to surpass desktop in 2014
Mobile is here to stay, and if forecasts are correct, it will soon by eclipsing desktop usage. If you
don’t have a mobile marketing strategy yet, it’s time to get going!
App-based marketing: This is mobile advertising involving mobile apps. While 80% of mobile
time is spent engaged with apps, you don’t have to create an app yourself to get in on the action.
Services like Google AdMob help advertisers create mobile ads that appear within third-party
mobile apps.
Facebook also allows advertisers to create ads that are integrated into Facebook’s mobile app.
Facebook’s mobile Promoted Post ads integrate so seamlessly with Facebook’s news feed that
users often don’t realize they’re looking at ads.
In-game mobile marketing: In-game mobile marketing refers to mobile ads that appear within
mobile games, like in the example below. In-game ads can appear as banner pop-ups, full-page
image ads or even video ads that appear between loading screens.
QR codes: QR codes are scanned by users, who are then taken to a specific webpage that the QR
code is attached to. QR codes are often aligned with mobile gamification and have an element of
mystery to them, since users who scan them don’t always know exactly which rabbit hole they’re
jumping down.
Location-based marketing: Location-based mobile ads are ads that appear on mobile devices
based upon a user’s location relative to a specific area or business. For example, some
advertisers may only want their mobile ads to appear when users are within a 1-mile radius of
their business.
Mobile search ads: These are basic Google search ads built for mobile, often featuring extra
add-on extensions like click-to-call or maps.
SMS: SMS marketing involves capturing a user’s phone number and sending them text offers.
This is considered somewhat passé.
If you're ready to dig in and optimize your mobile marketing campaigns, check out our list of 13
mobile marketing tools you need.
Enhanced Campaigns allow advertisers to manage their Google Ads bids across various devices
in one single campaign, rather than make separate campaigns for mobile vs. desktop.
Google advertisers can simply take the Google search ads they already use, and then set bids to
adjust for mobile devices. To increase bids for mobile devices, users can set a positive bid
adjustment, such as +20%, and vice versa – a bid adjustment of -10% reduces the bid by 10% for
mobile devices.
It’s in Google’s best interest to make mobile marketing easy for advertisers – Google generates a
large amount of revenue from mobile ads.
Google’s Enhanced Campaigns allow for advertisers to manage bids across devices, locations,
and time with ease. Some advertisers may choose to bid higher for users on mobile devices who
are within a certain range of their store, or may only want to bid on mobile devices during their
store’s open hours, and Enhanced Campaigns make that an easy possibility for advertisers.
Mobile Site Links: Mobile site links make it easy for mobile users to jump to specific pages of
your site without wandering around. Site links are especially useful in mobile marketing, as it’s
much more convenient for users on mobile devices.
Click-to-Call Mobile Ad Extension: The click-to-call extension puts a “call” button directly
beneath an ad. Clicking the button automatically generates a business’s phone number on a
user’s mobile device.
While this handy ad extension makes it easy for searchers to get in contact with your business
and drives users down the conversion funnel, it’s best to only have the click-to-call mobile ad
extension appear when your business is open and able to answer the phone.
Google Offers for Mobile: The Google Offers mobile ad extension lets advertisers post a
discount offer or coupon beneath their ad. These special offers can capture the attention of users
who might otherwise ignore an ad.
Google offers for mobile
Local Ad Extensions: Local ad extensions are probably the most important extensions for
mobile, considering that 1 in 3 mobile searches have local intent. Considering how many mobile
searches are questions looking for a local solution, local mobile marketing needs to be a key
aspect of your mobile strategy.
Local mobile marketing extensions often involve a phone number or link to Google Maps.