Effect of Mobile Marketing on Youngsters



The Indian Telecommunications network with 110.01 million connections is the fifth largest in the world and the second largest among the emerging economies of Asia. Today, it is the fastest growing market in the world and represents unique opportunities for U.S. companies in the stagnant global scenario. The total subscriber base, which has grown by 40% in 2005, is expected to reach 250 million in 2007. According to Broadband Policy 2004, Government of India aims at 9 million broadband connections 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 •Telecom equipment market (2008–09) –US$ 24.99 billion2,3 •Handset market (2008-09) –US$ 5.82 billion2,3 •Expected mobile subscriber base (2013) –About 771 million.

Objectives of the Study

There has been an honest attempt to:

 To check the awareness of the mobile marketing on the youngsters of Ahmedabad city
 To know the preference of people towards mobile marketing on the youngsters of Ahmedabad city
 To check the reliability of mobile marketing on the youngsters of Ahmedabad city

Sampling frame: all individuals between 18 years to 35 years in Ahmedabad.

Sampling unit: all individuals between 18 years to 35 years in Ahmedabad

Sample size: 100 respondents Sampling method: non-probabilistic convenience sampling

Overall Findings

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 people 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 customers

 People not rely 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 not aware about that and also it makes no difference to them whether advertisement comes or not.

 Many respondents are not using 3G enabled mobile phone because the service is not launched in GUJARAT. So most of them are not aware the services provided by the 3G

 People 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 the to 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.

 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 people is increasing day by day so they like to use new technologies.

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.

Reference :

http://www.aerodeon.com/whitepapers/Aerodeon_ MobileStrategy_v100.pdf.






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