To Determine Market Potential for Internet Marketing

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ABACUS INSTITUTE OF COMPUTER APPLICATION, PUNE

PROJECT REPORT

ON

To Determine Market Potential for Internet Marketing

SUBMITTED TO,

ABACUS INSTITUTE OF COMPUTER APPLICATION

BY:

Mr. Vijay A. Payghan

ROLL NO: 11

BATCH: II

Under the guidance of

Prof. Jayant Kulkarni

Submitted to

"University of Pune"

In partial fulfilment of the requirement for the award of the degree of

Master of Business Administration (MBA)

JUNE 2010-2011

Abacus Institute of Computer Application

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ACKNOWLEDGEMENT:

The research work I under took was an attempt to overcome the boundaries of books & to jump into the arena

of practical learning. A research is a step process; its very difficult for any researcher to master this entire step

without proper guidance. I would like to extend my gratitude to all those who helped me in doing this.

First of all I would like to pay respect to Mr. Harimohan Mishra Operational MANAGER at ELVES

TECHNOLOGY PVT LTD PUNE, Who guided me throughout my internship.

I am also grateful to our respected Director Prof. Dr. Pathak madam who included such kind of project in our

curriculum. I would like to give my regards to our course coordinator Prof. Raj Kumar Jadhav, Prof. Jayant

Kulkarni (internal guide) who helped me to enhance my knowledge a great deal & supported by each means.

Finally I would like to thank the management trainees for their support & encouragement who were with me

all throughout our project & to my friends who have supported me through all the means.

DECLARATION OF STUDENT

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I Mr. Vijay Payghan

HERE BY DECLARE THAT THIS PROJECT REPORT IS THE AUTHENTIC WORK CARRIED OUT BY

ME, DURING THIS PERIOD FROM MAY 24 to JULY 24 AND HAS NOT BEEN SUBMITTED TO ANY

OTHER UNIVERSITY OR INSTITUTE FOR ANY AWARD OR ANY DEGREE/ DEPLOMA ETC.

SIGNATURE:

NAME OF THE STUDENT: Vijay Payghan

DATE:

CERTIFICATE:

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This is to certify that Mr. Vijay Payghan of ABACUS INSTITUTE OF COMPUTER APPLICATION have

successfully completed the project work titled To Determine Market Potential for Internet Marketing, AT

ELVES TECHNOLOGY PVT. LTD. PUNE. in partial fulfillment of requirement of the completion of PGP

course as prescribed by the ABACUS INSTITUTE OF COMPUTER APPLICATION.

This project report is the record of authentic work carried out by him / her during the period from MAY 24 to

JULY 24.

He has worked under my guidance.

Signature

Name

Project Guide (Internal)

Date:

Counter Signed by

Signature

Name

Director

Date:

INDEX

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LIST OF TABLES

5

CHAPTER NO. TITLE PAGE NO.

I ACKNOWLEGEMENT 2

II DECLARATION FROM STUDENT 3

III DECLARATION FROM COMPANY 4

IV LIST OF TABLES AND GRAPHS 6

1. BACKGROUND OF STUDY 7

2. COMPANY PROFILE 24

3. HOW INTERNET IS NEXT REVOLUTION 34

4. INTERNET AS OUTBOUND MARKETING 43

5. INTERNET AS INBOUND MARKETING 68

6. CONCLUSION 84

7. RECOMMANDATION 85

8. BIBLIOGRAPHY 86


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SR.NO. PARTICULAR PAGE.NO.

1 INDIA INTERNET USAGE AND POPULATION STATISTICS 18

2ASIA INTERNET USAGE AND POPULATION

19

LIST OF GRAPHS

SR.NO. PARTICULAR PAGE.NO.

1 INTERNET USER IN THE WORLD 17

2 INTERNET IN ASIA-2009 18

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CHAPTER 1

BACKGROUND OF OUR

STUDY

INTRODUCTION

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The study is basically based on how internet is vital in todays business world. We live in country where one-

third of population comes under youth bracket. Who target internet for getting resources for daily lives. Today

you log in 99ACRES.com for property related information, you book your travel tickets at REDBUS.com, you

want take loan but have no time to complete all the formalities check BANKBAZZAR.com and if that is less

you can meet people, make friends on social Networking sites and so on.

The objective of internet marketing is to bring maximum visitors to a web site it can be an E-commerce site

like E-Bay or compareindia.com or an informative website like compareindia.com and technorati.com. The

World Wide Web (WWW) is n/w of web sites so the higher the number of visitors you have on your website

the higher profits you can make. The study is basically based on how internet can be used as a marketing tool.

According to survey of internetworldstats.com there are 8,10,00,000 internet users in INDIA which has

become almost doubled in last 3 years. Forrester is predicting a significant rise in Internet marketing by those

in the B2B space. In fact, its predicting spend will almost double over the next five years from $2.3 billion

in 2009 to $4.8 billion in 2014. Nearly 25% of Indian Population stays in cities. Out of which, 32% are PC

Literate. Of the PC Literate population, 72% have used Internet.

16th march is the day which created history. A milestone in history of internet--the numbers of Facebook users

were found to be more than Google (According to Alexa.com). A social networking site beats the giant search

engine. Today more sales can be generated from SMO than SEO. The internet trends are changing and will

keep changing always. But, one thing is common if you want to be market leader you need to be market leader

in technology also.

Evolution of Internet

How do you evaluate a technology that has completely captured the publics imagination and spawned

thousands of articles in newspapers n magazines? What about a technology that has come to indicate

innovation, where the ignorance of how it works is a sure sign of being on the wrong side of a generational

divide? What if that technology so captured the publics imagination that commentators claimed it would

revolutionize culture, education, and commerce?

Such a dilemma confronted the radio analyst in 1992. Radio was the original WWWWorldwide wireless.

When the RCA Corporation took this logo in 1920, it saw itself in the business of wireless telegraphy and

wireless telephony. It had U.S rights to send telegrams and messages to ships and other hard to reach locations.

As part of a settlement following World War 1, the Marconi Company of England had been forced to give up

its monopoly of the world wireless market and turn the American rights over to the newly formed RCA.

Wireless was viewed as a security matter, having little impact on commercial activity.

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In 1922, radio suddenly changed from a low cost niche business to a consumer and business phenomenon. It

was top of the charts and seemed to point the way to the future. The number of broadcasting stations

mushroomed from five at the end of 1921 to more than 575 a year later. Starting radio stations was the height

of entrepreneurship. Listening to radio became a runaway consumer fad. Combing the ether was the hit of

the day.

Radio changed business, especially marketing. Radio accelerated economys transformation into a mass

market. It greatly facilitated the creation of national brands. A firm could launch national marketing campaigns

simultaneously, backed by a nationally created image. New product store introductions could be synchronized

with advertising campaigns to build consumer interest. Product positioning became more flexible. Business

throughout the economy learned to use this new, powerful method of reaching customers.

Radio changed the everyday life of millions of listeners, altering aspects of their lives from church attendance

to newspaper reading. A scheduled mass culture emerged. As early as 1923, the happiness boys had become

famous as your Friday night date, from seven-thirty to eight. Timeslots, lead-ins, and prime time became

familiar concepts.

In making the transition from hobby to industry, radio as an industry struggled with the basic requirement of

generating a self sustaining revenue base. Providing value to customers created opportunities, but it was

necessary to make a profit to sustain a business. Radio had to solve the business model problem. There was a

major competing vision. Some argued bitterly against advertising support and commercialization. In many

European countries, this stance led to government support of radio. The U.S administration was opposed to

government control and pushed for a purely private solution.

For a time, a private solution did not look promising. By the end of 1924, 581 broadcast stations were

operating. Many of these stations found it impossible to be profitable, and by mid 1926, stations were failing at

a rate of almost 15 percent per month. At the same time, consumers continued to rush to purchase new radios.

Ultimately the emergence of national networks combining local and national advertising made radio profitable.

Internet marketing and commerce show many of these same uncertainties, potentials and impact. The internet

changes the way companies connect to their customers. It expands the opportunities for branding, innovation,

pricing and selling. It leads to new ways of thinking about time and distance and opens up new distribution

channels and markets.

Fundamentally, the internet forces every business to think carefully about the benefits it provides to its

customers. It encourages new thinking and innovation.

Evolution of Marketing9


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At the beginning of the century, social life was mostly local. It was followed by a period in which commodities

were produced on a mass scale. Consumer Marketing operated on mass marketing principles and business

primarily concerned itself with how to build the best sales force. At the end of the century, there is an

emerging global culture. The major driver of these changes is technology. Technological change has moved

steadily back focusing on the individual. These changes shape the possibility and conduct of business.

Marketing is especially tied to communication and transportation revolution. As the tools and reach of

marketing increase, the job and responsibilities of marketers have evolved with them.

Kotler formalized this evolution with his book "Marketing Management." His key stages are production, sales

and brand management. Each of these is strongly motivated by technological opportunities, which permit new

methods and new opportunities. A fourth stage, a focus on the individual customer, is also important. As the

new technology of the Internet develops, it reinforces the new marketing emphasis - which in many ways is a

return to business at the turn of the century.

In todays technology driven world, a new fast paced digital economy is emerging. In the near future, it

wouldnt be surprising to see that there are companies that exist only inside computer networks. Most business

transactions will be made electronically, directly from the producer to the consumer, bypassing the supply

chain. In the digital marketing environment, the consumer becomes an integral player in the development of

the product. In fact, a consumer might build the product himself from a wide array of parts provided by the

company. It is e-commerce that is changing the way products and services are conceived, manufactured,

promoted, priced, distributed and sold. The reason being that it is much cheaper; it allows vast coverage and

helps in serving the customer better.

What is Internet Marketing?

Internet marketing or Internet-based marketing can be defined as the use of the Internet and related digital

technologies to achieve marketing objectives and support the modern marketing concept. These technologies

include the Internet media and other digital media such as wireless mobile media, cable and satellite.

In practice, Internet marketing will include the use of a company web site in conjunction with online

promotional techniques such as search engines, banner advertising, direct e-mail and links or services from

other web sites to acquire new customers and provide services to existing customers that help develop the

customer relationship.

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However, for Internet marketing to be successful there is a necessity of integration with traditional media such

as Print and TV

Internet marketing also referred to as i-marketing, web-marketing, online-marketing or e-Marketing, is the

marketing of products or services over the Internet.

The Internet has brought media to a global audience. The interactive nature of Internet marketing in terms of

providing instant responses and eliciting responses are the unique qualities of the medium. Internet marketing

is sometimes considered to be broad in scope because it not only refers to marketing on the Internet, but also

includes marketing done via e-mail and wireless media. Management of digital customer data and electronic

customer relationship management (ECRM) systems are also often grouped together under internet marketing.

Internet marketing ties together creative and technical aspects of the Internet, including: design, development,

advertising, and sales.

Internet marketing also refers to the placement of media along many different stages of the customer

engagement cycle through search engine marketing (SEM), search engine optimization (SEO), banner ads on

specific websites, e-mail marketing, and Web 2.0 strategies. In 2008, The New York Times - working with

comScore - published an initial estimate to quantify the user data collected by large Internet-based companies.

Counting four types of interactions with company websites in addition to the hits from advertisements served

from advertising networks, the authors found the potential for collecting data upward of 2,500 times on

average per user per month.

Significance of Internet marketing

How significant is Internet marketing to businesses? Today, the answer to this question varies dramatically for

different products and markets. For companies such as electronics equipment manufacturer Cisco

(www.cisco.com), the answer is very significant

Cisco now gains over 90% of its multi-billion dollar global revenue online. It also conducts many of its other

business processes such as new product development and customer service online.

Similarly, easyJet (www.easyjet.com), the low-cost European airline gains 90% of its tickets sales online and

aims to fulfil the majority of its customer service requests via the Internet.

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However, the picture is quite different for the manufacturers of high-involvement purchases such as cars or

fast-moving consumer goods (FMCG) brands. Here the impact is less significant the majority of their

consumer sales still occur through traditional retail channels. However, the influence cannot be described as

insignificant any longer since the Internet is becoming increasingly important in influencing purchase

decisions - many new car purchasers will research their purchase online, so manufacturers need to invest in

Internet marketing to persuade customers of the features and benefits of their brands. The FMCG manufacturer

finds that consumers are spending an increasing proportion of their time on the Internet and less time using

other media so the Internet has become an effective way of reaching its target markets.

The Internet can be used to increase the frequency and depth of interactions with the brand, particularly for

brand loyalists who are the advocates of these brands. For example, drinks brand Tango (www.tango.com)

uses competitions and games on its web site to encourage interactions of the consumer with the brand (Brand

promotion).

How does the Internet work?

The Internet enables communication between millions of connected computers world-wide. Information is

transmitted from client PCs whose users request services to server computers that hold information and host

business applications that deliver the services in response to requests. As such, the Internet is a large-scale

client/server system. By end 2000, Nua compilations estimated that worldwide, there were over 450 million

users of clients accessing over 30 million web sites hosted on servers (Web update, www.nua.ie/surveys,

www.cyberatlas.com). The client PCs within homes and businesses are connected to the Internet via local

Internet Service Providers (ISPs) who, in turn, are linked to larger ISPs with connection to the major national

and international infrastructure or backbones. In the UK, at the London Internet Exchange which is the

Docklands area of East London, a facility exists to connects multiple backbones of the major ISPs within the

UK onto a single high-speed link out of the UK into Europe and through to the US. These high speed links can

be thought of as the motorways on the information superhighway while the links provided from ISPs to

consumers are equivalent to slow country roads.

Client/server

The client/server architecture consists of client computers such as PCs sharing resources such as a database

stored on a more powerful server computers.

Internet Service Provider (ISP)

A provider enabling home or business users a connection to access the Internet. They can also host web-based

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Backbones

High-speed communications links used to enable Internet communications across a country and

internationally. A request from the client PC is executed when the user types in a web address, clicks on a

hyperlink or fills in an online form such as a search. This request is then sent to the ISP and routed across the

Internet to the destination server using the mechanism described in the section on protocols. The server then

returns the requested web page if it is a static (fixed) web page, or if it requires reference to a database, such as

a request for product information will pass the query on to a database server and will then return this to the

customer as a dynamically created web page. Information on all page requests is stored in a transaction log file

which records the page requested, time it was made and the source of the enquiry. This information can be

analysed using a log file analyser along with different browser-based techniques to assess the success of the

web site

Static web page

A page on the web server that is invariant.

Dynamic web page

A page that is created in real-time, often with reference to a database query, in response to a user request.

Transaction log files

A web server file that records all page requests

Log file analyzer

Software to summarise and report the information in the transaction log file

Effectiveness of the Internet in Reaching Out to the Masses

The reach of Internet may not yet be as wide as that of other mass media, but given its unique advantages, it is

undoubtedly the communication medium of the future. Marketers around the world have from time to time

tried to reach their target audiences through various media. Scientific and technological advances have and will

continue to create newer media to improve communication, and marketers will try to use the same to

effectively address their audiences. Internet is one of the latest to join the list of such media inventions.

Internet Fame with the Indian Audiences

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Let us first take a quick look at the audience that this medium is trying to reach. The top 8 metros of the

country, the scope of the Internet as a medium to reach out to a large number of people is presently limited.

However, some of these limitations can be addressed.

1. Internet is available in regional languages also. Even today this medium is largely confined to only

those who are literate in English. Various initiatives of companies like ITC and HLL like E-choupal

and i-Shakti have given a considerable boost to vernacular usage of internet.

2. Internet is accessible though other media also and not only through telephone lines. In the current

scenario, the usage of internet might be dominated by telephone lines, but broadband and cable net are

coming in a huge way.

3. Government policies are aimed at broadening and strengthening the infrastructure required for Internet

accessibility.

There could be several other modes to increase the reach of the Internet. However, with the current limitations,

the projections on Internet usage appear to be as follows:

Current Media usage habits of the Indian audiences

TV, print and cinema have penetrated the most. Internet in the media terms is expected to make an impact and

show its true caliber, but is yet not taken as a serious medium.

Does that mean that Internet is not an effective tool for reaching out to people? Or is it likely to work very well

under certain conditions?

To understand this better, let us compare Internet and other traditional media, first from the customers point of

view. Current media options serve two broad benefits to the customer:

1. Information

2. Entertainment

The reach or popularity of any media is related to

1. The extent of benefits perceived to be delivered

2. The cost of acquisition of the media itself

In short, the reach is related to the net value perceived by the customer about that particular medium.

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On the basis of the above clarification, Internet appears to have a comparatively higher cost of acquisition.

However, Internet has brought with it a very high degree of control to the media user. Not only are there a

plethora of sites catering to every imaginable need, there is also a high degree of flexibility in what the user is

able to do. All of this makes Internet a highly interactive media but also an expensive one.

If the internet is treated and used exactly like any other medium, it is unlikely to yield major benefits to the

marketer. Its effectiveness is dependent not only on the target audience one is talking to, but also largely on the

ability of the marketer to make use of the real advantages of the Net like interactivity, flexibility, ability to

monitor and the like.

Next, one can also evaluate Internet as a media from the marketers point of view by way of a similar

classification. If evaluation as per the above classification is done, the Internet does not appear to be a very

advantageous option either in terms of reach or in terms of cost-effectiveness. But Internet has various other

advantages over the traditional media which cannot be neglected. These stem mainly from the ability of this

medium to allow a far more focused targeting as compared to other media.

To quickly summarize the advantages of the Internet as seen from the point of view of the user as well as the

marketer:

To the user:

Internet gives more control in choosing content. It offers customization of the content, the way the user wants

to view it. It offers a variety of options for information and entertainment. It offers a wide range to choose

from for the user.

It offers tremendous convenience to the user not only in delivery of information, but also in allowing him to

transact often in a seamless manner.

The best example of giving control of content is the My Yahoo!! Service offered by the Internet giant, Yahoo

Inc. It gives the user the choice of content for various topics ranging from news to stock options to

entertainment to sports and just about everything.

To the marketer:

The Internet offers several options to a marketer trying to target a particular community

It serves not only as a channel of information, but also of product distribution

It offers a highly interactive medium that sometimes (e.g. chats, forums, VoIP) is almost equal to one-to-one

interaction with the audience.

It offers a higher level of identification of the user to the marketer.

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It allows the marketer to actually link his spends to action, and pay only on action

This action could be a click on the banner or even product purchased or just a banner impression or per 1000

impressions. In this ability Internet is, in fact, unlike any other media.

Given the payment options and high interactivity, the Internet offers a medium for high level of

experimentation at a low cost.

E.g. one can change the whole look of the advertisement within hours and increase the effectiveness of the

communication on the Internet. Imagine doing the same with a television advertisement. Therefore, though the

Internet with its present limitations may not be able to match other media in actually reaching out to large

numbers of people, the benefits of this highly customizable and interactive medium can be used effectively to

target niche audiences.

This can be elaborated a little more by answering the following questions:

1. Who are the people who can be reached through the Internet?

2. Which are the products that can possibly benefit from marketing on the Internet?

3. What are the options available to the marketer to reach out more effectively to their audiences?

4. Are there ways for monitoring effectiveness of this medium in order to control it better?

INTERNET USAGE IN WORLD AND ASIA

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INDIA Internet Usage and Population Statistics:

YEAR Users Population % Penetration Usage Source

1998 1,400,000 1,094,870,677 0.1 % ITU

1999 2,800,000 1,094,870,677 0.3 % ITU

2000 5,500,000 1,094,870,677 0.5 % ITU

2001 7,000,000 1,094,870,677 0.7 % ITU

2002 16,500,000 1,094,870,677 1.6 % ITU

2003 22,500,000 1,094,870,677 2.1 % ITU

2004 39,200,000 1,094,870,677 3.6 % C.I. Almanac

2005 50,600,000 1,112,225,812 4.5 % C.I. Almanac

2006 40,000,000 1,112,225,812 3.6 % IAMAI

2007 42,000,000 1,129,667,528 3.7 % IWS

2009 81,000,000 1,156,897,766 7.0 % ITU

2010 81,000,000 1,173,108,018 6.9 % ITU

ASIA INTERNE USAGE AND POPULATION

ASIAPopulation

(2010 Est.)

Internet Users,

(Year 2000)

Internet Users,

Latest Data

Penetration

(% Population)

User Growth

( 2000-2010 )

Users (%)

in Asia

Afganistan 29,121,286 1,000 1,000,000 3.4 % 99,900.0 % 0.1 %

Armenia 2,966,802 30,000 208,200 7.0 % 594.0 % 0.0 %

Azerbaijan 8,303,512 12,000 3,689,000 44.4 % 30,641.7 % 0.4 %

Bangladesh 158,065,841 100,000 617,300 0.4 % 517.3 % 0.1 %

Bhutan 699,847 500 50,000 7.1 % 9,900.0 % 0.0 %

Brunei Darussalem 395,027 30,000 318,900 80.7 % 963.0 % 0.0 %

Cambodia 14,753,320 6,000 78,000 0.5 % 1,200.0 % 0.0 %

China* 1,330,141,295 22,500,000 420,000,000 31.6 % 1,766.7 % 50.9 %Georgia 4,600,825 20,000 1,300,000 28.3 % 6,400.0 % 0.2 %

Hong Kong* 7,089,705 2,283,000 4,878,713 68.8 % 113.7 % 0.6 %India 1,173,108,018 5,000,000 81,000,000 6.9 % 1,520.0 % 9.8 %

Indonesia 242,968,342 2,000,000 30,000,000 12.3 % 1,400.0 % 3.6 %

Japan 126,804,433 47,080,000 99,143,700 78.2 % 110.6 % 12.0 %

Kazakhstan 15,460,484 70,000 5,300,000 34.3 % 7,471.4 % 0.6 %

Korea, North 22,757,275 -- -- -- -- 0.0 %

Korea, South 48,636,068 19,040,000 39,440,000 81.1 % 107.1 % 4.8 %

Kyrgystan 5,508,626 51,600 2,194,400 39.8 % 4,152.7 % 0.3 %

Laos 6,993,767 6,000 527,400 7.5 % 8,690.0 % 0.1 %

Macao* 567,957 60,000 280,900 49.5 % 368.2 % 0.0 %Malaysia 26,160,256 3,700,000 16,902,600 64.6 % 356.8 % 2.0 %

Maldives 395,650 6,000 87,900 22.2 % 1,365.0 % 0.0 %

Mongolia 3,086,918 30,000 350,000 11.3 % 1,066.7 % 0.0 %

Myanmar 53,414,374 1,000 110,000 0.2 % 10,900.0 % 0.0 %

Nepal 28,951,852 50,000 625,800 2.2 % 1,151.6 % 0.1 %

Pakistan 177,276,594 133,900 18,500,000 10.4 % 13,716.3 % 2.2 %

Philippines 99,900,177 2,000,000 29,700,000 29.7 % 1,385.0 % 3.6 %

Singapore 4,701,069 1,200,000 3,658,400 77.8 % 204.9 % 0.4 %

Sri Lanka 21,513,990 121,500 1,776,200 8.3 % 1,361.9 % 0.2 %

Taiwan 23,024,956 6,260,000 16,130,000 70.1 % 157.7 % 2.0 %

Tajikistan 7,487,489 2,000 700,000 9.3 % 34,900.0 % 0.1 %

Thailand 66,404,688 2,300,000 17,486,400 26.3 % 660.3 % 2.1 %

Timor-Leste 1,154,625 - 2,100 0.2 % 0.0 % 0.0 %

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Turkmenistan 4,940,916 2,000 80,400 1.6 % 3,920.0 % 0.0 %

Uzbekistan 27,865,738 7,500 4,689,000 16.8 % 62,420.0 % 0.6 %

Vietnam 89,571,130 200,000 24,269,083 27.1 % 12,034.5 % 2.9 %

TOTAL ASIA 3,834,792,852 114,304,000 825,094,396 21.5 % 621.8 % 100.0 %

Advertising options available on the Internet.

The Internet offers a variety of options for the marketer to advertise her/his products/brands. These include

1. Banner ads and their variations

2. E-mailers and their variations

3. Search Engine Marketing (SEM)

4. Search Engine Optimization (SEO)

5. Social Media Optimization (SMO)

6. Website Designing

In India, banners still remain the most popular option. However, wider options are now available to the

marketer which, even at the cost of being intrusive, serves to enhance the visibility and effectiveness of the

banner. Today, we can classify internet marketing into two main categories:

1. Outbound(Direct) Internet Marketing

2. Inbound(Indirect) Internet Marketing

Outbound Internet Marketing

The Internet has revolutionized direct marketing for promoting the sale of products and services to

targeted audiences. Access to the Internet provides users with services in four basic areas: information,

entertainment, shopping, and individual and group communication.

Online channels can eliminate geographic considerations. With this capability people around the world have

the same access as the person across the street. Many businesses that can sell their products and services

through downloading or can economically ship those products have discovered an entirely new way to market.

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The Internet makes direct marketing easier, more targeted, more flexible, more responsive, more affordable,

and potentially more profitable than ever. Virtually every business should seriously consider the Internet as a

part of their marketing mix and determine if it is a viable fit for direct marketing.

Inbound Internet Marketing

The indirect marketing is use of those channels which increase sales of organization by targeting customers

indirectly. The Buzzword is SMO (social media optimization) is the use of social networking sites to make

your product popular among people. The more popular our product become the more people will buy it.

Today every small and big company has a profile on facebook, twitter and likedIN etc. It also helps to rank

your pages for some keywords in top search engines which is popularly known as SEO (search Engine

Optimization)

7 PS OF Marketing on the Internet

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carried out. There can be traded links or banner advertisements for the same. Also the traditional

mediums like print, outdoor advertising and television can be used to spread awareness.

5. PRESENTATION The presentation of the online business needs to have an easy to use navigation.

The look and the feel of the web site should be based on corporate logos and standards. About 80% of

the people read only 20% of the web page. Therefore, the web page should not be cluttered with a lot of

information. Also, simple but powerful navigational aids on all web pages like search engines make it

easy for customer to find their way around.

6. PROCESSES Customer supports needs to be integrated into the online web site. A sales service that

will be able to answer the questions of their customers fast and in a reliable manner is necessary. To

further enhance after sales service, customers must be able to find out about their order status after the

sale has been made. For e.g. FedEx (www.fedex.com), the overnight Courier Company allows its

customers to keep track of the parcel and they are well informed about the present whereabouts of their

package.

7. PERSONALIZATION Using the latest software from Broad-Vision and others, it is possible to

customize the entire web site for every single user, without any additional costs. The mass customization

allows the company to create web pages products and services that suit the requirement of the user. A

customized web page does not only include the preferred layout of the customer but also a pre selection

of goods the customer may be interested in. For e.g. Yahoo! (www.yahoo.co.in) entered the Indian

cyberspace and started its personalized services. A registered user of Yahoo can now personalize the

front page with the all the information he needs. He can read the news of the world, add a tax calculator,

see the weather forecasts of his city and listen to his favorite songs and all this simultaneously.

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CHAPTER NO 2

COMPANY PROFILE

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About Elves Technology

Elves technology has a Joint Venture (JV) with Tristar.

Ahigh-end Search Engine Optimization, Internet Marketing and Database Provider.

Elves Technology is a Professional Website Designing Company incorporated in Year 2007 providing Internet and

web based solution to Organizations in India.

Elves Technology offers effective Search Marketing services. Search Engine Marketing directly targets a

companys ROI. And seeks to target specific audiences or improve a companys market reach for a target audience.

Elves Technology uses aggressive link popularity building services that also target known and proven links that

help websites rank on the major search engines as well as offering direct traffic to websites.

With a philosophy that all websites need:

1) To get visitors to the website (Traffic).

2) To keep them on the website (STOP Method, easy to find products or services target specific products).

3) To Give them a reason to come back (Newsletters, Tutorials, Business Guides, News, Business Information,

Special Sales, Get Free help, etc.).

And the ability to generate ideas and strategies that offer solutions directly related to your company's website. Elves

Technology is an effective marketing and SEO Company and our services will empower your website to a new

level.

Our Vision

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To help customers achieve their business objectives by providing innovative, best-in-class consulting, IT solutions

and services, and to actively engage all stakeholders in a productive, collaborative, and mutually beneficial

relationship.

Our vision is to be one of the top 10 global companies by the year 2010.

Our Mission

Our goal is to help you make better forecasting, promotions, pricing and markdown decisions based on fact-based

insights about customer demand. We strive to be a trusted business partner and work hard to ensure you realize

significant business value for your investment-both today and into the future.

Our Solutions and Services are designed to provide:

Enhanced Productivity High Level of Data Security

High Quality Service Reduced Turnaround Time

Substantial Cost Savings

Elves Technology allows businesses to redefine their scope and increase the overall output. We at Maverick

Software (I) Pvt. Ltd. build customer relation for our clients that help them improve their way they conduct

business with their customers, with the help of website designed by us.

CEO`s Corner

Mr. Umesh Sahai is The Elves Technology founding CEO, and is responsible for the exponential growth of Elves

Technology from a start-up in 2010 to a global web products company with over 4 businesses, 10+ products, 60+

employees and millions of global customers. Under his leadership, Usatweb Inc. (2009) and Maverick Software

(2007) have become industry leaders in their respective verticals, and Elves Technology has consistently featured

amongst the fastest growing online Promotion Company. He continues to manage the Vision, Mission and

Operations of Elves Technology.

He holds a Master's degree in Marketing and has been with the Company for 06 months. He has been recognized as

one of the finest professionals in the IT industry. Presently, he heads the Online Promotion and advertising

business.

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In 1999 2001, while he was in college he has been awarded as Young Scientist and new inventor award.

In 2007 he was director for Maverick Software India PVT Ltd and still gives the consultation to various sectors

like: Financial Institutions, IT industries, BPO.

PRODUCTS and SERVICES

Website Designing

Website Development

Web Application Development

E-Commerce Development

SEO & Internet Marketing

Content Management System

Web Hosting & Consulting

Website designing

Website's design is of greatest significance for a successful presence on the web for your business. Nowadays

websites are increased for business and also personal purposes. We apply specific, measurable business goals to

create sites and web design solutions that really help you to Bring in more quality enquiries, Increase sales revenue,

Make your business more efficient, improve your customer services.

To be a first class IT services company and transform businesses radically by adding value to the prime objective.

Web development

Web development expertise shows the strength of our creative ideas in actions. Elves Technologys web

development team is fully dedicated, experienced and well versed about the required skill & knowledge.

Elves Technology is one of the leading Effective web development company at Pune in India provides web

development services. We have over a few years of experience in constructing and development of interactive

website services, using the new and latest scripting technologies available and the newest marketing technologies,

along with our best professionals.

Our experience in offering complete web development services and complex internet solutions, by website design

and programming to the complex marketing campaigns in the area. Elves Technology is committed to provide

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software development services that deliver robust, scalable, and cost-effective website solutions within your budget.

We develop and support business software applications, unique technologies, proven development process and a

global deliver model for our customers.

Our web development services includes web design and web development, PHP Development, Data base

application development, web maintenance services, web designing services for flash, web re-design and

development, custom web application, ASP.Net Development, html, effective ecommerce website development etc.We provide those services at affordable rate so that even small business owners can take our service. Elves

Technology can improve the way your company functions by providing value-added Web solutions. We offer

services that would optimize your operational efficiency by enabling faster access to knowledge repositories,

cutting costs by designing website that would aim at extracting the best possible results out of your present

resources in terms of manpower and infrastructure, increasing real-time throughput with regards to production

parameters and decrease time taken to achieve present results.

Web Application Development

We develop value added solutions & customized applications for our clients to leverage on the power of

information technology like SEO Services, and designing & development of web sites, internet marketing services

& solutions.

Maverick Software India Private Limited is a website development company based in Pune, India implementing IT

enables services - projects of any complexity. Our experience in providing successful web development, web design

services and maintenance of sophisticated internet applications for different industries helps us create solutions

working trouble free from the outset. ELVES TECHNOLOGIES expertise guarantees quality, competent and rapid

execution of any projects - from small websites to complex one and custom solution programming.

Our service includes Web application development, Website designing, Corporate profiles and presentations,

maintenance, Mail gateways, Web hosting solutions, Custom web development, Search Engine Optimization,

Graphics designing, Development, IT solutions and Consultancy Services. As we acknowledge internet has opened

up tremendous opportunities, endless possibilities, and drastically changed our outlook on conducting online

business. It lies beyond any boundaries, unites people worldwide and considerably increases chances of boosting

business by online advertising solutions.

We provide the services

To enhance your business or organization's online reputation

To be a content rich, informative resource for your online visitors

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To deliver targeted traffic to your products or services

To be optimized for enhanced search engine promotion

To be affordable and very low maintenance

E-Commerce Development

To have a successful and a meaningful presence on the Internet, a website is an absolute must. Maverick Software

brings you the finest IT enable services at your finger tips. Providing affordable, value added web solutions the

company has carved a niche for its clients. We have excellent experience in web development, SEO and ITES

solutions integrate the latest technology and business expertise to deliver you a more innovative product.

Maverick Software India Private Limited is a Web Development Company in India designs, develops, integrates

and maintains website application development that enable enterprises to solve complex and critical business

problems at ease.

ELVES TECHNOLOGIESs cost effective Services Include Website Designing, Search Engine Optimization

(SEO), Web Hosting, Search Engine Marketing (SEM), Website Application Development, we hold official

Business Partnership with Airtel, one of the leading broadband service provider in India.

With an unmatched potential, our teams innovates and discover strategies to deliver the best in Web Design, Web

Development, Application Development, E-Commerce Development, SEO Services, SEO Marketing, Logo Design,

Domain hosting, Web Consulting and other IT Services. The company having a clear vision and strong ethics, we

believe on trust, mutual respect, and growth takes pride in building a whole new generation of web leaders. The

world becoming glorious with technical advances, business has come a long way. Maverick Software is also proud

of being the drivers of todays change and over the years emerged as a top notch web service provider.

Internet Marketing and SEO

Elves technologies formulate proven and measureable Internet marketing strategies for your business. We research

the target market of each client and create a personalized internet marketing plan that will achieve the best results

for their particular requirements. Our search engine marketing (SEM) ensures a high return on investment (ROI) by

achieving higher search engine results (SERPs) for your website within major search engines like Google. We are

internet marketing professionals working for small and big businesses to increase profits from online marketing

using a variety of methods. We provide proven internet marketing results using only white-hat SEO techniques.

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Our search engine optimization service ensures your web pages are accessible to search engines, will be positioned

prominently during a search and will connect with potential buyers. You will see a dramatic increase in traffic once

your website undergoes the SEO process.

Position your website in the top ten search engine results

Maximize visibility of website

Accurately measure site traffic to help enhance market share

The site is carefully prepared for search engine optimization; using a combination of techniques such as a thorough

research on the subject, competitor status/activity, key word identification, search engine friendly content

development and ensuring the site design is suitable for search engine crawlers to find in addition to HTML

programming and directory submissions.

Website promotion is an online marketing solution for companies and small businesses who want to maximize their

online visibility. We formulate the web promotion strategies that bring higher return on investment. The scope and

size of internet is growing every second. To carve your niche you need to start with the professional approach to

build your traffic, brand recognition, and sales.

CONTENT MANAGEMENT SYSTEM (CMS)

What is CONTENT MANAGEMENT SYSTEM (CMS)?

CMS is ideal for any business searching for a robust, full-featured WEB Content Management System at an

affordable price. Maverick Softwares CMSs web content management technology includes a set of rich features

that range from comprehensive workflow management including access permissions, approvals and notifications.

We manage the robust feature is our easy-to-access authoring using ASP.net technology, input and presentation

template design and management, content re-use management and dynamic publishing capabilities. Web content

management system genuinely aids a business website to avert the risk of losing customers.

OUR System

Elves Technology creates a totally scalable and flexible system that will expand easily without significant future

investment.

We provide the development of a content management system for your web site designed to your exact

requirements.

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We guarantee the security of the developed Content Management System with password protected login pages.

We work out the additional file upload facilities for you so that you may upload documents such as word files,

PDF files, images etc.

We provide our customer to change the contents (text/images) dynamically

We Provide

Effective Content Management System solutions by Maverick Software India Private Limited will reduce your

company's operating costs and enhance customer service. In addition, your sites will always be up-to-date that will

help you gain leadership with your internet presence and the prosperity of your business. With our CMS, companies

control not only the current web site's content, but also have a tool to implement their own ideas. They will managenavigation, web site structure, dynamic elements, tables and web-forms. These tools help them easily create pages

on the web site in the way they want and place them online in real-time without specialists' help.

OUR Products

Elves Technology 2010

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Classifieds 11 exists for one simple reason: life is busy. It's a rare day when you're not doing at least one thing

where Classifieds11 could help: looking for a job, buying a car, selling your old bike, lining up a babysitter, looking

for Products, watching your products videos or warming up to your kids' plea for a puppy.

Life is too busy to deal with too many classifieds sites. Sites that are not completely free, remarkably simple, and

safe enough for your kids to look at they're not worth your time.

Classifieds11 launched originally in Pune, India. in April 2010.

Contact Us

We take extreme pride in mentioning that we have always executed our projects professionally and in a timely

fashion. Despite the distances and geographical boundaries that separate us from our clients, we have always

ensured that we remain in constant touch to ensure an open and constant flow of communication between us.

Contact us today for your web designing, web development and other IT requirements.

Our Addresses and modes of contact are provided below:

Elves Technology

Corporate Headquarter

4th floor, Sagar Complex, C-Wing,

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Opp., Kasarwadi Railway Station,

Pune- 411 034.

CHAPTER NO 03

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HOW INTERNET

IS

NEXT

REVOLUTION!

HOW INTERNET HAS CHANGEDTHE WORLD

The internet has only really been around for most people for less than 20 years, yet its impact on the world has been

immense. What follows are five ways the internet has changed the world.

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Communication

Remember the days when you had to pick up a piece of paper and a pen in order to write to someone? And then you

would have to go through the process of putting the letter in an envelope, stamping it and taking it to a post office to

send. All this, and the card you sent for Christmas would invariably arrive sometime around Easter...

But that was before the arrival of the internet. With the internet came e-mail, and then a bit later VoIP, Instant

messaging and video calls. Now you can send a letter to someone halfway across the world, confident that it will

arrive almost instantly. You can have telephone conversations online, and even video chats, so granny in South

Africa can see her grandchildren in Australia and talk to them like they were in the same room.

This doesn't even include social media such as Facebook, Twitter, and MySpace, which allow people to

communicate with a large number of friends at a time, as well as to post pictures and comments.

Entertainment

In the days before the internet, it we wanted to watch TV, we had to watch whatever was being shown by the

networks. If you missed an episode, and weren't able to record it, that was it unless you managed to see a rerun.

Now, with the rise of the internet, you can not only download whatever episode of whatever series whenever you

want, you can also download movies, music, games and more.

It used to be that to be discovered as a musician or actor, you had to go to auditions and be "discovered by agents

and directors or music company executives. Today, all you need to do is post a video of yourself on YouTube or

MySpace, like Justin Bieber or Lily Allen.

With the internet, you no longer have to wait for a friend to visit if you want to play multiplayer games. There are

now numerous games that you can play online against people all over the world. There are even games like Second

Life, where people are able to log on to a virtual world and interact with other people. They are able to buy

property, create works of art and have relationships.

News

With the internet came a different form of news. You used to have to rely on the mainstream media for your daily

dose of news. You know how it went, every night at 7 the kids would have to be dead quiet because dad had to

watch the evening news, and the stories of butlers having to iron the morning newspapers for their wealthy masters.

The news was basically fed to you, you weren't able to go out and find different opinions.

Nowadays, you are able to go out and find the news. You can read an article on the gulf oil spill on the Time

Magazine site, and then read one from a different point of view from CNN. The news is also no longer just being

reported by journalists and mainstream media. There has been many times where the larger news companies have

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been scooped by smaller sites, or even blogs, as in the case of Michael Jackson's death where TMZ.com was the

first to report that he had been taken to the hospital.

Information

One of the biggest advantages the internet has had to our daily lives is that now we can find a piece of information

anywhere in the world where there is internet access. Need info on the Mount St. Helen's eruption? The release date

of the latest Artemis Fowl book? Or even instructions on how to tie certain Boy Scout knots? In just a few seconds,

you can find millions of sites that give you just what you are looking for. No more spending hours searching

through the library for me...

Business

Just about every type of business, from large news corporations, to small clothing stores have websites to promotethemselves and their products. New methods of business have even started due to the web, such as people making

money from blogs and websites they have started, web design companies, and on-line shops that have thrived with

many people choosing on-line shopping over going to regular shops.

How Internet Changed Marketing Forever

A new marketing terrain was created at the end of the Twentieth Century. A generation of pioneering entrepreneurs

set out on a great adventure. They invented new technologies and carved out new business models from an

uncharted virtual frontier. Many did not understand the terrain they would have to pass through. Hundreds of failed

Dot-Com startups would litter the landscape of the, so called, New Economy. Those who did succeed figured out

what the new terrain looks like. As time went by, they adjusted their business plans to meet the realities of that

terrain. In the process, they forever changed the way marketing is practiced. Those days are over now. But the

lessons still remain. Everyone who hopes to succeed with Internet Marketing will be following in the footsteps of

those original innovators and must learn the lessons their experiences teach.

This puts the field in perspective by looking at exactly what happened to Marketing when the Internet came on the

scene. In a few short years, the Internet has gone from being an obscure new idea to being an essential part of any

marketing strategy. Something changed dramatically when the Internet came on the scene. To be successful

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marketing on the Internet, the first lesson is to understand what did change and the role the Internet now plays in the

new marketing world.

How Did We Get Here?

In the opening years of the Twenty-first Century, we find the practice of marketing is noticeably different than it

was throughout the Twentieth Century. In the decade of the 1990s, the field of marketing went through a rebirth of

sorts.

It was similar to another rebirth that happened a hundred years earlier. Advances in the technology of mass

production at the beginning of the Twentieth Century created a need for marketing as a strategic tool to bring

products to the masses. Traditional textbooks still emphasize things such as balancing product, placement, price

and promotion to appeal to the largest possible audience.

Three phenomena came together in the 1990s to make this possible. To understand todays Internet Marketing

world, we must start with a basic understanding of these three.

(1) Database Marketing

(2) One-to-One Marketing

(3) The Internet.

None of these are new. In fact, in one form or another they have all been around since the early 1970s. However,

advances in technology prompted their explosion into the mainstream in the 1990s. As a result, the Twenty-first

century finds no company insulated from the need to interact with their customers as individuals.

Database Marketing

The advent of database marketing can be thought

of as the first step in the evolution of todaysInternet Marketing environment. In the early

1970s, innovators began experimenting, using

computing technologies to take the field of direct

marketing to a new level. For the first time,

companies began to put their entire customer lists

into databases with the specific purpose of

learning about them to maximize direct

marketing efforts. These early efforts were very

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costly and involved huge mainframe computer systems to make them work. So, only very large companies and

direct marketing list vendors made use of the new technology.

In the early 1990s, microcomputers and local area networks made it possible for every company to have a

customer database. Database marketing moved into the mainstream. Forward thinking companies put that

technology to work to better understand their customers. In turn, they were able to target their marketing efforts to

meet their customers wants and needs. These forward thinking companies began to raise the bar for their

competition by reaching out to customers on a more personalized basis. The trend which continues to drive

marketing innovation today was born. Database marketing technologies were put to use by savvy marketers to

reach customers in ways they had only dreamed of before.

One-to-One Marketing

At the same time as database marketing technology was becoming popular; a little revolution in how we think about

the practice of marketing itself was sparked. Writings like The One-to-One Future by Don Peppers and MarthaRogers (1993) changed the way we think about marketing itself. Marketers started to think in terms of using the

new technologies to build long term relationships with their customers, one at a time. As with database marketing,

the basic concepts of One-to-One Marketing were not new. In fact, the basic concept is to reproduce an earlier time

when shop owners got to know each one of their customers and built loyalty by meeting each ones specific wants

and needs. Early examples of one-to-one marketing ideas include such things as store membership programs where

customers received birthday cards, gift reminders or other personalized communications.

The revolution of one-to-one marketing was a change in perspective. Marketers traditionally focused on

maximizing market share across entire customer segments. This began to change. Some began trying to maximize

the share of each customers expenditures that their company was able to capture. New technologies were to be

applied to the customer database to transform it into a learning engine. This would allow companies to discover the

wants and needs of each customer. Then through automated, customer focused communications that same

technology was used to maximize the share of each customers wallet that the company was able to meet. Peppers

and Rogers coined the term share of wallet as a contrast to the traditional focus on market share.

Back in the early 1990s this seemed more like a pipedream than a realistic goal. Nevertheless, the ideas were

having a big impact on direct marketing and customer relationship practices at the time. We did not realize that a

new technology was about to make the pipedream a reality.

The Internet

In the late 1990s the Internet brought the revolution right into customers homes. Most marketers today know the

basic history of the Internet. It first came online in 1969 as a way to share information between universities and

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government agencies. But, it was the invention of Hypertext Markup Language (HTML) and the World Wide Web

(www) in the early 1990s that created the websites we know today.

The basic design of a website makes it an engine for collecting detailed customer information. Right from the start,

there were companies applying statistical algorithms to transform that information into learning that could drive

personalized marketing messages. Once again, savvy marketers started using the new technologies to do what we

only dreamed of before. Today, customers themselves are raising the bar by going to those web sites which best

meet their needs and wants as individual customers, rather than as generic members of a target audience.

Successful Internet Marketing strategies will combine components from all three streams.

Database marketing provides the technological backbone to capture and utilize the flood of customer information

coming into your company through the Internet. It also provides the tools and techniques to transform that

information into actionable intelligence and to maintain customer communications. The principles of one-to-onemarketing provide practical guidelines for using technology to build and maintain customer relation-ships. Finally,

the Internet provides technology which transforms the customer communication process into a real time interaction

which takes place in the customers home or cubicle at work. One way to think about it is that the Internet has

turbo-charged database marketing technologies to make the dream of one-to-one marketing a reality.

The New Marketing Terrain

Traditional businesses, spend years cultivating relationships with their customers. They must now compete against

businesses online to keep those customers. We live in an age when customers need to go no further than their living

rooms, or offices to get satisfaction. New, virtual businesses have rushed in to occupy that space in the customers

living rooms. Still, they must offer a superior online experience if they are going to sway customers away from

businesses they are loyal to.

Who will win the battle for your customers?

Businesses today have no choice except to enter the competition to satisfy the ever-increasing expectations of

online customers. Even if a customer comes in person to buy a product or service, chances are they first researched

it online. Businesses themselves have made this even easier for consumers. They have put high speed Internet

access on their employees desktops.

The Internet is doing for consumers in the early Twenty-first century what labor unions did for workers in the early

Twentieth century. It is leveling the playing field. The old saying, attributed to PT Barnum, goes A sucker is born

every minute. Today, the Internet is turning that saying on its ears. An informed consumer is born every minute.

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Businesses no longer have a choice. They must use the technology available to them to meet their customers on

their own terms. Otherwise those customers will go to someone else who will.

People still go to the local mall after work to shop. But today, they can take five minutes out of their lunch break to

research the products they are planning to buy first. Savvy online marketers are capturing those customers before

they ever take that trip to the mall.

The watershed moment for online buying was the 1999 holiday shopping season. Shoppers spent over $5 billion

through the Internet. That far exceeded all expectations with a 300% increase over 1998. There were no skeptics

anymore. Online buying had become a permanent fixture on the retail landscape. As we crossed the threshold into

the twenty-first century, the corporate website, which four years earlier had been little more than an afterthought in

marketing departments, had moved to center stage. The landscape had changed.

What does the new terrain look like?

The Internet came upon the marketing world like a flood. The rate of technological and organizational

transformation that took place in its wake was enough to make your head spin. It seemed like every couple of

months the pundits were declaring a new paradigm shift and heralding the triumph of the latest eBusiness

innovation over old economy dinosaurs. Now the waters have receded. We are able to see what has actually

changed and what has not.

As it turns out, the Internet did not create an entirely new economy. The hype was clearly overrated, to the point of

almost being comical. However, to be successful, marketers must be aware of the forces that are shaping the

Twenty-first Century marketing terrain. Figure 2 shows what changed and what did not change in five areas where

the new economy was to have put to death traditional marketing practices.

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Customers still behave in predictable ways. They still respond to advertising

messages and marketing promotions. Hence it can be concluded that how internet marketing is next revolution.

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CHAPTER NO 04

INTERNET

AS

OUTBOUNDMARKETING

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INTORDUCTION

Direct marketing occurs when the "producer" connects with the end user. The end user may be a consumer or a

business.

Direct marketing applies to product and service oriented businesses, and to nonprofit organizations. In all situations,

there is no intermediary involved. Direct marketing describes this interactive communication with the end user.

Direct marketing is not synonymous with mass marketing. The most effective direct marketing takes place when there

is a clear connection to reach the target market.

The Outbound Internet Marketing

The Internet has revolutionized direct marketing for promoting the sale of products and services to targeted

audiences. Access to the Internet provides users with services in four basic areas: information, entertainment,

shopping, and individual and group communication.

Online channels can eliminate geographic considerations. With this capability people around the world have the

same access as the person across the street. Many businesses that can sell their products and services through

downloading or can economically ship those products have discovered an entirely new way to market.

The Internet makes direct marketing easier, more targeted, more flexible, more responsive, more affordable, and

potentially more profitable than ever. Virtually every business should seriously consider the Internet as a part of

their marketing mix and determine if it is a viable fit for direct marketing.

Internet marketing is associated with several business models:

E-commerce this is where goods are sold directly to consumers (B2C) or businesses (B2B)

Lead-based websites an organization that generates value by acquiring sales leads from its website.

Affiliate marketing the process in which a product or service developed by one entity (e-commerce

business, single person, or a combination) is sold by other active sellers for a share of profits. The entity of

the product may provide some marketing material (sales letter, affiliate link, tracking facility) However, the

vast majority of affiliate marketing relationships come from e-commerce businesses that offer affiliate

programs.

Local internet marketing through which a small company utilizes the Internet to find and nurture

relationships, which are to be used for real-world advantage. Local internet marketing uses tools such associal media marketing, local directory listing, and targeted online sales promotions.

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Blackhat marketing this is a form of internet marketing which employs deceptive, abusive, or less than

truthful methods to drive web traffic to a website or affiliate marketing offer. This method sometimes

includes spam, cloaking within search engine result pages, or routing users to pages they didn't initially

request.

Display advertising

Display advertising is a type of advertising that typically contains text (i.e., copy), logos, photographs or other

images, location maps, and similar items. In periodicals, display advertising can appear on the same page as, or on

the page adjacent to, general editorial content. In contrast, classified advertising generally appears in a distinct

section, was traditionally text-only, and was available in a limited selection of typefaces.

Display advertisements are not required to contain images, audio, or video: Textual advertisements are also used

where text may be more appropriate or more effective. An example of textual advertisements is commercial

messages sent to mobile device users, emails etc,

One common form of display advertising involves billboards.

Yahoo is the leader in online display advertising.

Display advertising also appears on the Internet, as a form of internet marketing. Display advertising appears on

web pages in many forms, including web banners. These banners can consist of static or animated images, as well

as interactive media that may include audio and video elements. Adobe Systems Flash or .gif are the preferred

presentation formats for such interactive advertisements. The Interactive Advertising Bureau, an industry trade

group, sets some standards for online shapes.

Display advertising on the internet is widely used for branding as opposed to direct response, or search advertising.

This is why metrics like interaction time are becoming more relevant. However, this may change in the future as

display advertising is becoming much more targeted to users much like search engine ads are extremely relevant to

what users are looking for. Display advertisers use cookie and browser history to determine demographics and

interests of users and target appropriate ads to those browsers.

Banner ad standards have changed over the years to larger sizes, in part due to increased resolution of standard

monitors and browsers, in part to provide advertisers with more impact for their investment. The standards continue

to evolve. Posters, fliers, transit cards, tents, scale models are examples of display advertising

The Variants of Banners include:

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1. Banner Ad - a graphical web advertising unit, typically measuring 468 pixels wide and 60 pixels tall (i.e.

468x60).

2. Beyond the Banner - online advertising not involving standard GIF and JPEG banner ads.

3. Button Ad- a graphical advertising unit, smaller than a banner ad.

4. HTML banner - a banner ad using HTML elements, often including interactive forms, instead of (or in addition

to) standard graphical elements.

5. Interstitial - an advertisement that loads between two content pages.

6. Pop-up Ad - an ad that displays in a new browser window.

7. Pop Under Ad - an ad that displays in a new browser window behind the current browser window.

8. Rectangle Ad - any one of the large, rectangular banner sizes suggested by the IAB.

9. Rich Media- new media that offers an enhanced experience relative to older, mainstream formats.

10. Skyscraper- Ad- an online ad significantly taller than the 120x240 vertical banner.

11. Text Ad - advertisement using text-based hyperlinks.

12. Surround Session - advertising sequence in which a visitor receives ads from one advertiser throughout an entire

site visit.

13. Vertical Banner - a banner ad measuring 120 pixels wide and 240 pixels tall.

HOW DISPLAY ADVERTISEMENTWORKS:

INTHE BEGINNING: BANNERADS

When the Web first started being a "commercial endeavor" around 1997 or so, thousands of new sites were born

and billions of dollars in venture capital flowed into them. The sites divided into two broad categories:

E-commerce sites - E-commerce sites sell things. E-commerce sites make their money from the products they sell,

just like a brick-and-mortar store does.

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Content sites - Content sites create or collect content (words, pictures, video, etc.) for readers to look at. Content Web

sites make their money primarily from advertising, likeTVstations,radio stations andnewspapers.

A typical banner ad at the top of the page

In the beginning, "advertising" on the Internet meant "banner ads" -- the 728x90-pixel ads you see at the top of

almost all Web pages today (including this one). In 1998 or so,banner advertisingwas a lucrative business. Popular

sites like Yahoo could charge $30, $50, even $100 per thousand impressions to run banner ads on their pages.These advertising rates provided fuel for much of the venture capital boom on the Web. The idea was that sites

could start up and increase their page impressions to make easy money from banner ads. If a site could generate 100

million page impressions per month, it could make $3 million per month with banner ad rates at $30 per thousand

impressions.

Where did numbers like $30 or $50 per thousand impressions come from? That's what magazines typically charge

for full-page color ads. The Internet took the same payment model and applied it to banner ads.

At some point, advertisers came to the conclusion that banner ads were not as effective as full-page magazine ads or

30-second TV commercials. At the same time, there was an incredible glut of advertising space -- thousands of sites

had a million or more page impressions available per month, and companies like DoubleClick began collecting

these sites into massive pools of banner-ad inventory. The economic principle of "supply and demand" works the

same way on the Web as it does everywhere else, so the rates paid for banner advertising began to plummet.

Let's look more closely at what determines banner ad rates.

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Banner Ad Prices

A company buys advertising for one of two reasons:

Branding

Direct sales

Branding refers to the process of impressing a company name or a product name onto society's collective brain.

Let's say you have come up with a new brand of soda, or you are opening a new restaurant, or you are selling a new

widget. You want to get the product's name (and sometimes the product's features and benefits) firmly planted in

people's heads. This is branding.

Branding happens with both new and existing products. When you see a billboard that says nothing but "Coke" on

it, or you see aNASCAR carthat says "Tide" on the hood, or you see a feel-good ad on TV about a car company or

an oil company but there's no mention of a product, that is branding. The advertiser does not necessarily expect you

to do anything today -- the advertiser simply wants to impress itself on your consciousness.

On the other hand, a direct sales ad is an ad that is trying to get you to do something today, right now, as you look

at the ad. The advertiser wants you to:

Click on the ad

Call an 800 number

Drive immediately to the store

...or do some other active thing so that you buy something, download something or sign up for something today.

The advertiser counts the direct responses to the ad and measures the effectiveness of the ad by those responses.

What branding advertisers came to feel about banner ads is that banner ads are not the most effective vehicle for

branding. Relative to a magazine ad or a TV ad, banner ads are small and easily ignored.

What direct sales advertisers came to feel about banner ads is that the response rate for banner ads is low. For

most banner ads, the industry average seems to hover between two and five clicks per 1,000 impressions of the ad.

That is, if a banner ad appears on 1,000 Web pages, between two and five people will click on the ad to learn more.

Those five clicks per thousand impressions don't have much value to most advertisers. The reason is because those

five clicks will not all generate sales. Out of 100 clicks, perhaps one person will actually do the desired thing (buy

something, download something, etc.).

An Example

Here's an example. Let's say that a publisher wants people to buy a book, and hopes to increase sales of the book

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through advertising. The publisher has budgeted $3.00 per copy of the book to spend on advertising. If the

publisher is paying $30 per 1,000 impressions for banner ads and purchases 100,000 impressions for $3,000, here is

what happens:

The banner ad appears 100,000 times.

Let's say the response rate is five clicks per 1,000 impressions, so 500 people click on the ad during the

time the 100,000 total impressions are running.

If two percent of those 500 people actually purchase the book, that results in 10 purchases.

The publisher had to pay ($3,000/10) $300 for each book purchased through that ad.

Obviously, paying $300 to sell one book is not a good economic model for a publisher, especially since the budget

is $3.00 per book. For this type of advertising to work for the publisher, the publisher would need to pay 30 cents

per 1,000 impressions, rather than 30 dollars.

The Result

So banner ad rates began to decline. Today, if you shop around, you can buy banner ads from thousands of Web

sites or brokers for 50 cents or so per thousand impressions -- which is pretty much exactly what they are worth to a

person who is trying to sell something with banner ads using a direct sales model.

It is possible for some Web sites to charge more than 50 cents per 1,000 impressions. For example, the top 100 or

so Web sites can charge a premium because of their size. There is also a process called targeting. For example, if

you want to sell a GPS, you can advertise on the HowStuffWorks GPS article and get a targeted audience for your

ad, which will typically increase the click-through and response rate for the ad. Yahoo and many search engines

target their banner ads to the search words people type in, and they charge more for these targeted ads. But for most

other Web sites, there is very little money to be made from banner ads.

In order to charge more than 50 cents per thousand impressions, Web sites have to offer ads that either:

Have a lot more branding power

Get a much higher click-through rate

Therefore, you find many different advertising formats and experiments on the Web today.

Sidebar Ads

A sidebar ad (also known as a skyscraper ad) is similar to a banner ad, but it is vertically oriented rather than

horizontally. Because it is vertical, the height of a sidebar ad can often reach 600 pixels or more, and sidebars are

generally 120 pixels wide.

A sidebar ad has more impact than a banner ad for at least two reasons:

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Documents

To Determine Market Potential for Internet Marketing