comm project report

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E-COMMERCEFILE

SUBMITTED BY:

NITESH PILWAN

2k11-MRCE-MBA -

4th Semester

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MBA

E-COMMERCE

Electronic commerce, commonly known as e-commerce, is a type of industry where buying

sand selling of product or service is conducted over electronic systems such as the Internet

and other computer networks. Electronic commerce draws on technologies such as mobile

commerce, electronic funds transfer,supply chain management, Internet marketing,online

transaction processing, electronic data interchange(EDI),inventory management systems, and

automated data collectionsystems. Modern electronic commerce typically uses the World

Wide Web at least at one point in the transaction's life-cycle, although it may encompass a

wider range of technologies such as e-mail, mobile devicessocial media, and telephones as

well.

Electronic commerce is generally considered to be the sales aspect of e-business. It alsoconsists of the exchange of data to facilitate the financing and payment aspects of business

transactions.

E-commerce can be divided into:

E-tailing or "virtual storefronts" on websites with online catalogs, sometimes gathered

into a "virtual mall"

The gathering and use of demographic data through Web contacts and social media

Electronic Data Interchange (EDI), the business-to-business exchange of data

E-mail and fax and their use as media for reaching prospective and established

customers (for example, with newsletters)

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Business-to-businessbuying and selling

The security of business transactions

Ecommerce (or electric commerce) refers to the buying and selling of goods and services via

electronic channels, primarily the Internet. Online retail isdecidedly convenient due to its 24-hour availability, global

reach and generally efficient customer service.

A type of business model, or segment of a larger business model, that enables a firm or

individual to conduct business over an electronic network, typically the internet. Electronic

commerce operates in all four of the major market segments: business to business, business to

consumer, consumer to consumer and consumer to business.

Ecommerce has allowed firms to establish a market presence, or to enhance an already larger

market position, by allowing for a cheaper and more efficient distribution chain for their

products or services. One example of a firm having successfully used ecommerce is Borders.

This book store not only has physical stores, but also has an online store where the customer

can buy books, CDs and DVDs.

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Customers expect a certain standard of website design and usability, especially when

shopping on e-commerce websites. If you make too many design and functionality mistakes,

you will not only lose customers, you will harm your long-term reputation. Fortunately, most

mistakes are relatively easy to fix. If you want to improve your current ecommerce site, or

youre thinking of creating a new site, here are some of the most common design mistakes to

avoid.

1. Information Overload

Although its tempting to cram each page especially the homepage with your red-hot

products and promotions, you dont want to visually overload your visitors. Make a good first

impression. Avoid pop-ups, animated graphics, and background music. A clean, self-

explanatory structure is more likely to convert visitors into customers.

2. Poor Product Descriptions

Too many ecommerce stores feature generic, uninspiring, and meager product descriptions.

Make sure you answer all the questions a shopper may ask about a product. Use emotive

language that stirs emotions in the reader. And highlight the product benefits dont just givea list of technical features.

3. Lack of Error Reporting

Its very frustrating for shoppers when a page error occurs during site navigation.

Technically, its easy to set up notifications when unexpected errors occur. Ask your

webmaster to install automatic email alerts if a 404 (page not found) error occurs, for

example. Then fix it.

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Electronic commerce refers to a wide range of online business activities for products and

services. It also pertains to any form of business transaction in which the parties interact

electronically rather than by physical exchanges or direct physical contact.

E-commerce is usually associated with buying and selling over the Internet, or conducting

any transaction involving the transfer of ownership or rights to use goods or services througha computer-mediated network. Though popular, this definition is not comprehensive enough

to capture recent developments in this new and revolutionary business phenomenon. A more

complete definition is: E-commerce is the use of electronic communications and digital

information processing technology in business transactions to create, transform, and redefine

relationships for value creation between or among organizations, and between organizations

and individuals.

[[

E-COMMERCE: BENEFITS AND LIMITATIONS

Electronic Commerceor E- commerce is the buying and

selling of products by using electronic means such as the internet and other computer

networks. It is the commercial transaction that involves transfer of information over the

internet.

E-commerce is changing the way we do business. Here are some of the benefits and

limitations of e-commerce.

Advantages of e-commerce are:

Economical and Lower Cost:

E-commerce is an effective medium of doing business. A person doesnt need to set up a

business premise. Unlike brick and mortar business environment, in e-commerce there is no

need to set-up premises.

Better Customer Service:

E-commerce ensures better and quicker customer service. Online customer service allowsquicker satisfaction of customer needs and making the customer happier.

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IMPORTANCE AND USES OF E- COMMERCE

1.Exploitation of New Business

Broadly speaking, electronic commerce emphasizes the generation and exploitation of new

.business opportunities and to use popular phrases: generate business value or do more

with less.

2. Enabling the Customers

Electronic Commerce is enabling the customer to have an increasing say in what products are

made, how products are made and how services are delivered (movement from a slow order

fulfillment process with little understanding of what is taking place inside the firm, to a faster

and rt1ore open process with customers having greater control.

3. Improvement of Business Transaction

Electronic Commerce endeavors to improve the execution of business transaction over

various networks.

4. Effective Performance

It leads to more effective performance i.e. better quality, greater customer satisfaction and

better corporate decision making.

5. Greater Economic Efficiency

We may achieve greater economic efficiency (lower cost) and more rapid exchange (high

speed, accelerated, or real-time interaction) with the help of electronic commerce.

6. Execution of Information

It enables the execution of information-laden transactions between two ore more parties using

inter connected networks. These networks can be a combination of plain old telephone

system (POTS), Cable TV, leased lines and wireless. Information based transactions arecreating new ways of doing business and even new types of business.

7. Incorporating Transaction

Electronic Commerce also inco11'orates transaction management, which organizes, routes,

processes and tracks transactions. It also includes consumers making electronic payments and

funds transfers.

8. Increasing of Revenue

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Firm use technology to either lower operating costs or increase revenue. Electronic

Commerce has the Potential to increase revenue by creating new markets for old products,

creating new information-based products, and establishing new service delivery channels to

better serve and interact with customers. The transaction management aspect of electronic

commerce can also enable firms to reduce operating costs by enabling better coordination inthe sales, production and distribution processes and to consolidate operations arid reduce

overhead.

9. Reduction of Friction

Electronic Commerce research and its associated implementations is to reduce the friction

in on line transactions frictions is often described in economics as transaction cost. It can

arise from inefficient market structures and inefficient combinations of the technological

activities required to make a transaction. Ultimately, the reduction of friction in online

commerce will enable smoother transaction between buyers, intermediaries and sellers.

10. Facilitating of Network Form

Electronic Commerce is also impacting business .to business interactions. It facilitates the

network form of organization where small flexible firms rely on other partner, companies for

component supplies and product distribution to meet changing customer demand more

effectively. Hence, an end to end relationship management solution is a desirable goal that is

needed to manage the chain of networks linking customers, workers, suppliers, distributors

and even competitors. The management of "online transactions" in the supply chain assumes

a central roll.

11. Facilitating for Organizational Model

It is facilitating an organizational model that is fundamentally different from the past. It is a

control organization to the information based organization. The emerging forms of techno-

organizational structure involve changes in managerial responsibilities, communication and

information flows and work group structures.

TYPES OF E-COMMERCE

B2B (Business-to-Business)

Companies doing business with each other such as manufacturers selling to

distributors and wholesalers selling to retailers. Pricing is based on quantity of order

and is often negotiable.

B2C (Business-to-Consumer)

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Businesses selling to the general public typically through catalogs utilizing shopping

cart software. By dollar volume, B2B takes the prize, however B2C is really what the

average Joe has in mind with regards to ecommerce as a whole.

Having a hard time finding a book? Need to purchase a custom, high-end computer

system? How about a first class, all-inclusive trip to a tropical island? With the advent

Ecommerce, all three things can be purchased literally in minutes without human

interaction. Oh how far we've come!

C2B (Consumer-to-Business)

A consumer posts his project with a set budget online and within hours companies

review the consumer's requirements and bid on the project. The consumer reviews the

bids and selects the company that will complete the project. Elance empowers

consumers around the world by providing the meeting ground and platform for such

transactions.

C2C (Consumer-to-Consumer)

There are many sites offering free classifieds, auctions, and forums where individualscan buy and sell thanks to online payment systems like PayPal where people can send

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and receive money online with ease. eBay's auction service is a great example of

where person-to-person transactions take place everyday since 1995.

Companies using internal networks to offer their employees products and services online--not

necessarily online on the Web--are engaging in B2E (Business-to-Employee) ecommerce.

G2G (Government-to-Government), G2E (Government-to-Employee), G2B (Government-to-

Business), B2G (Business-to-Government), G2C (Government-to-Citizen), C2G (Citizen-to-

Government) are other forms of ecommerce that involve transactions with the government--

from procurement to filing taxes to business registrations to renewing licenses. There are

other categories of ecommerce out there, but they tend to be superfluous.

INTRODUCTION

TO

COMPANY

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AMUL

Amulis an Indiandairy cooperative, based at Anandin the state ofGujarat, India The

wordAmul() is derived from theSanskritwordAmulya(), meaning invaluable.

The co-operative is also sometimes referred to by the unofficial backronym: Anand Milk

Union Limited.

Formed in 1946, it is a brand managed by a cooperative body,the Gujarat Co-operative Milk

Marketing Federation Ltd. (GCMMF), which today is jointly owned by 3.03 million milk

producers in Gujarat.

Amul spurred India'sWhite Revolution, which made the country the world's largest producer

of milk and milk products. In the process Amul became the largest food brand in India and

has also ventured into markets overseas.

Dr Verghese Kurien, founder-chairman of the GCMMF for more than 30 years (19732006),

is credited with the success of Amul.

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[HISTORY

The Kaira District Co-operative Milk Producers' Union Ltd.was registered on 1 December1946 as a response to the exploitation of marginal milk producers by traders or agents of the

only existing dairy, the Polson (brand)dairy, in the small town of Anand(inKairaDistrict

of Gujarat) .Milk Producers had to travel long distances to deliver milk, which often went

sour in summer, to Polson. The prices ofbuffaloand cow milk were arbitrarily determined.

Moreover, the government at that time had given monopoly rights to Polson to collect milk

from Anand and supply it to Bombay city.

Angered by the unfair and manipulative trade practices, the farmers of Kaira

approached Sardar Vallabhbhai Patelunder the leadership of local farmer

leader Tribhuvandas K. Patel. He advised them to form a cooperativeand supply milk

directly to the Bombay Milk Scheme instead of Polson (who did the same but gave them low

prices).He sent Morarji Desaito organise the farmers. In 1946, the milk farmers of the area

went on a strike which led to the setting up of the cooperative to collect and process

milk.Milk collection was also decentralized, as most producers were marginal farmers who

could deliver atmost 12 litres of milk per day. Cooperatives were formed for each village

too.

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The Cooperative was further developed and managed by Dr.Verghese Kurienalong

withH.M. Dalaya. Dalaya's innovation of making skim milk powder from buffalo milk for

the first time anywhere in the world and a little later, along with Kurien's help, making it on a

commercial scale,led to the first modern dairy of the cooperative at Anand, which would

successfully compete against established players in the market.

The trio's (T. K. Patel, Kurien and Dalaya's) success at the cooperative's dairy soon spread to

Anand's neighbourhood in Gujarat, and within a short span, five unions in other districts

Mehsana, Banaskantha, Baroda, Sabarkantha and Surat were set up.In order to combine

forces and expand the market while saving on advertising and avoid competing against each

other, the GCMMF, an apex marketing body of these district cooperatives was set up in 1973.

The Kaira Union which had the brand name of Amulwith it since 1955, transferred it to

GCMMF.

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Achievements of the "Amul Movement"

1. The dairy cooperatives have been able to maintain democratic structure at least at the

grass-root level with the management committee of the village level unit elected from

among the members in majority of the villages.

2. The dairy cooperatives have also been instrumental in bridging the social divide of

caste, creed, race, religion & language at the villages, by offering open and voluntarymembership.

\COMPANY

The GCMMF is the largest food products marketing organisation of India. It is the apex

organisation of the Dairy Cooperatives of Gujarat. Over the last five and a half decades,

Dairy Cooperatives in Gujarat have created an economic network that links more than

3.1 million village milk producers with millions of consumers in India. These cooperatives

collect on an average 9.4

million litres of milk per day from their producer members, morethan 70% of whom are small, marginal farmers and landless labourers and include a sizeable

population of tribal folk and people belonging to the scheduled castes.

The turnover of GCMMF (AMUL) during 201011 was 97.74 billion (US$1.8 billion). It

markets the products, produced by the district milk unions in 30 dairy plants. The farmers of

Gujarat own the largest state of the art dairy plant in Asia Mother Dairy, Gandhinagar,

Gujarat which can handle 3.0 million litres of milk per day and process 160 MTs of milk

powder daily. Amul Dairy established at Anand is the crown glory of the district. Bylaunching the milk business in a scientific way, the dairy heralded White Revolution in

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Gujarat which is well established now. The dairy has provided the farmers an important

source of supplementary income through animal husbandry. Today it has become a world

renowned organisation.

On 18 Aug 2012, Vipul Chaudhary of Mehsana district's milk cooperative was electedchairman of GCMMF, following a court's intervention

The Three-

tier "Amul

Model

The Amul Model is a three-tier cooperative structure. This structure consists of a Dairy

Cooperative Society at the village level affiliated to a Milk Union at the District level which

in turn is further federated into a Milk Federation at the State level. The above three-tier

structure was set up in order to delegate the various functions, milk collection is done at the

Village Dairy Society, Milk Procurement & Processing at the District Milk Union and Milk

& Milk Products Marketing at the State Milk Federation. This helps in eliminating not only

internal competition but also ensuring that economies of scale is achieved. As the above

structure was first evolved at Amul in Gujarat and thereafter replicated all over the country

under the Operation Flood Programme, it is known as the Amul Model or Anand Pattern

of Dairy Cooperatives.

Responsible for Marketing of Milk & Milk Products

Responsible for Procurement & Processing of Milk

Responsible for Collection of Milk

Responsible for Milk Production

Amul

The main functions of the amul are as follows:

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Collection of surplus milk from the milk producers of the village & payment based on

quality & quantity

Providing support services to the members like Veterinary First Aid, Artificial

Insemination services, cattle-feed sales, mineral mixture sales, fodder & fodder seed

sales, conducting training on Animal Husbandry & Dairying, etc.

Selling liquid milk for local consumers of the village

Supplying milk to the District Milk Union

Thus, the VDCS in an independent entity managed locally by the milk producers and assistedby the District Milk Union.

District Cooperative Milk Producer's Union (Dugdh Sangh)

The main functions of the Union are as follows:

Procurement of milk from the Village Dairy Societies of the District

Arranging transportation of raw milk from the VDCS to the Milk Union.

Providing input services to the producers like Veterinary Care, Artificial Insemination

services, cattle-feed sales, mineral mixture sales, fodder & fodder seed sales, etc.

Conducting training on Cooperative Development, Animal Husbandry & Dairying for

milk producers and conducting specialised skill development & Leadership Development

training for VDCS staff & Management Committee members.

Providing management support to the VDCS along with regular supervision of its

activities.

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Establish Chilling Centres & Dairy Plants for processing the milk received from the

villages.

Selling liquid milk & milk products within the District

Process milk into various milk & milk products as per the requirement of State

Marketing Federation.

Decide on the prices of milk to be paid to milk producers as well on the prices of

support services provided to members.

State Cooperative Milk Federation (Federation)

The main functions of the Federation are as follows:

Marketing of milk & milk products processed / manufactured by Milk Unions.

Establish distribution network for marketing of milk & milk products.

Arranging transportation of milk & milk products from the Milk Unions to the

market.

Creating & maintaining a brand for marketing of milk & milk products (brand

building).

Providing support services to the Milk Unions & members like Technical Inputs,management support & advisory services.

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Pooling surplus milk from the Milk Unions and supplying it to deficit Milk Unions.

Establish feeder-balancing Dairy Plants for processing the surplus milk of the Milk

Unions.

Arranging for common purchase of raw materials used in manufacture / packaging of

milk products.

Decide on the prices of milk & milk products to be paid to Milk Unions.

Decide on the products to be manufactured at various Milk Unions (product-mix) and

capacity required for the same.

Conduct long-term Milk Production, Procurement & Processing as well as Marketing

Planning.

Arranging Finance for the Milk Unions and providing them technical know-how.

Designing & Providing training in Cooperative Development, Technical & Marketing

functions.

Conflict Resolution & keeping the entire structure intact.

Today, there are around 176 cooperative dairy Unions formed by 1.25lakhdairy cooperativesocieties, having a total membership of around 13 million farmers on the same pattern, who

are processing and marketing milk and milk products profitably, be it Amul in Gujarat or

Verka in Punjab, Vijaya in Andhra Pradesh, Milma in Kerala, Gokul in Maharashtra, Saras in

Rajasthan or a Nandini in Karnataka. This entire process has created more than 190 dairy

processing plants spread all over India with large investments by these farmers institutions.

These cooperatives today collect approximately 23 million kgs. of milk per day and pay an

aggregate amount of more than Rs.125 billion to the milk producers in a year

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The Amul brand

GCMMF (AMUL) has the largest distribution network for any FMCG company. It has nearly

50 sales offices spread all over the country, more than 5 000 wholesale dealers and more than

700 000 retailers.

Amul became the world's largest vegetarian cheese and the largest pouched-milk brand.

AMUL is also the largest exporter of dairy products in the country. AMUL is available today

in over 40 countries of the world. AMUL is exporting a wide variety of products whichinclude Whole and Skimmed Milk Powder, Cottage Cheese (Paneer), UHT Milk, Clarified

Butter (Ghee) and Indigenous Sweets. The major markets are USA, West Indies, and

countries in Africa, the Gulf Region, and SAARCneighbours, Singapore, The Philippines,

Thailand, Japan and China, and others such asMauritius, Australia, Hong Kong and a few

South African countries. Its bid to enter the Japanese market in 1994 did not succeed, but it

plans to venture again.

In September 2007, Amul emerged as the leading Indian brand according to a survey by

Synovate to find out Asia's top 1000 Brands.

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In 2011, Amul was named the Most Trusted brand in the Food and Beverages sector in The

Brand Trust Report,published by Trust Research Advisory. rediff.com; "India's top 20

brands: Amul is No. 1"

PRODUCTS

Amul's product rangeincludes milk powders, milk, butter, ghee, cheese, Masti

Dahi,Yoghurt,Buttermilk, chocolate, ice cream, cream, shrikhand,paneer,gulab jamuns,

flavoured milk, basundi, Amul Pro brand and others. Amul PRO is a recently launched brown

beverage just like bournvita and horlicks offering whey protein, DHA and essential nutrients.In January 2006, Amul launched India's first sports drinkStamina, which competes

withCoca Cola'sPoweradeandPepsiCo'sGatorade. Amul also offers mithaimate which

successfully competes with milkmaid by nestle by offering more fat% at lower price.

In August 2007, Amul introduced Kool Koko, a chocolate milk brand extending its product

offering in the milk products segment. Other Amul brands are Amul Kool, a low calorie thirst

quenching drink; Masti Butter Milk; Kool Cafe, ready to drink coffee and India's first sports

drink Stamina.

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http://en.wikipedia.org/wiki/The_Brand_Trust_Reporthttp://en.wikipedia.org/wiki/The_Brand_Trust_Reporthttp://www.rediff.com/business/slide-show/slide-show-1-indias-top-20-brands-amul-tops/20110707.htmhttp://en.wikipedia.org/w/index.php?title=List_of_Amul_products&action=edit&redlink=1http://en.wikipedia.org/wiki/Gheehttp://www.amul.com/cooking-mastidahi.htmlhttp://www.amul.com/cooking-mastidahi.htmlhttp://www.amul.com/desserts-yogi-yoghurt.htmlhttp://www.amul.com/desserts-yogi-yoghurt.htmlhttp://en.wikipedia.org/wiki/Buttermilkhttp://en.wikipedia.org/wiki/Buttermilkhttp://en.wikipedia.org/wiki/Ice_creamhttp://en.wikipedia.org/wiki/Creamhttp://en.wikipedia.org/wiki/Shrikhandhttp://en.wikipedia.org/wiki/Paneerhttp://en.wikipedia.org/wiki/Paneerhttp://en.wikipedia.org/wiki/Gulab_jamunhttp://en.wikipedia.org/wiki/Gulab_jamunhttp://en.wikipedia.org/wiki/Sports_drinkhttp://en.wikipedia.org/wiki/Sports_drinkhttp://en.wikipedia.org/wiki/Coca_Colahttp://en.wikipedia.org/wiki/Coca_Colahttp://en.wikipedia.org/wiki/Coca_Colahttp://en.wikipedia.org/wiki/Poweradehttp://en.wikipedia.org/wiki/Poweradehttp://en.wikipedia.org/wiki/Poweradehttp://en.wikipedia.org/wiki/PepsiCohttp://en.wikipedia.org/wiki/PepsiCohttp://en.wikipedia.org/wiki/PepsiCohttp://en.wikipedia.org/wiki/Gatoradehttp://en.wikipedia.org/wiki/Gatoradehttp://en.wikipedia.org/wiki/The_Brand_Trust_Reporthttp://en.wikipedia.org/wiki/The_Brand_Trust_Reporthttp://www.rediff.com/business/slide-show/slide-show-1-indias-top-20-brands-amul-tops/20110707.htmhttp://en.wikipedia.org/w/index.php?title=List_of_Amul_products&action=edit&redlink=1http://en.wikipedia.org/wiki/Gheehttp://www.amul.com/cooking-mastidahi.htmlhttp://www.amul.com/cooking-mastidahi.htmlhttp://www.amul.com/desserts-yogi-yoghurt.htmlhttp://en.wikipedia.org/wiki/Buttermilkhttp://en.wikipedia.org/wiki/Ice_creamhttp://en.wikipedia.org/wiki/Creamhttp://en.wikipedia.org/wiki/Shrikhandhttp://en.wikipedia.org/wiki/Paneerhttp://en.wikipedia.org/wiki/Gulab_jamunhttp://en.wikipedia.org/wiki/Sports_drinkhttp://en.wikipedia.org/wiki/Coca_Colahttp://en.wikipedia.org/wiki/Poweradehttp://en.wikipedia.org/wiki/PepsiCohttp://en.wikipedia.org/wiki/Gatorade


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Amul's Icecreams are made from milk fat and thus are icecreams in real sense of the word,

while many brands in India sell frozen desserts made from vegetable fat.

Amul's sugar-free Pro-Biotic Ice-cream won The International Dairy Federation Marketing

Award for 2007.

INTRODUCTION

TO

THE TOPIC

(INTERNET ADVERTISEMENT)

INTERNET ADVERTISING

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Delivering ads to Internet users via Web sites, e-mail, ad-supported software, text messaging

and Internet-enabled cellphones. Also called an "ad network" or "ad serving network,"

Internet advertising organizations act as a middleman between the advertiser and the Internet

venues that display the ads. They sell the online campaign to the advertisers and then deliver

the ads to the sites that display them. The site owners receive a royalty based typically on the

number of times users click the ads (see click-through rate). Such organizations may provide

software tools that enable companies to deliver their own ads

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.

ONLINE ADVERTISEMENT

The internet has become an ongoing emerging source that tends to expand more and more.

The growth of this particular medium attracts the attention of advertisers as a more

productive source to bring in consumers.

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A clear advantage consumers have with online advertisement is the control they have over the

product, choosing whether to check it out or not.

Online advertisements may also offer various forms of animation. In its most common use,

the term "online advertising" comprises all sorts of banner, e-mail, in-game, and keywordadvertising, including on platforms such as Facebook, Twitter, and MySpace.

TYPES OF INTERNET ADVERTISING

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Display advertising: the use of web banners or banner ads placed on a third-party

website or blogto drive traffic to a company's own website and increase product

awareness.

Search engine marketing(SEM): a form of marketing that seeks to

promote websitesby increasing their visibility insearch engine result pages(SERPs)

through the use of either paid placement, contextual advertising, and paid inclusion, or

through the use of freesearch engine optimizationtechniques also known as organic

result.

Search engine optimization(SEO): the process of improving the visibility of a

website or a web page in search engines via the "natural" or un-paid ("organic" or

"algorithmic") search results.

Social media marketing: the process of gaining traffic or attention through social

media websites such as Facebook, Twitter and LinkedIn.

Email marketing: directly marketing a commercial message to a group of people

using electronic mail.

Referral marketing: a method of promoting products or services to new customers

through referrals, usually word of mouth.

Affiliate marketing: a marketing practice in which a business rewards one or more

affiliates for each visitor or customer brought about by the affiliate's own marketing

efforts.

Content marketing: the process of creating specialized content such as infographics,

blog articles and ebooks to attract more customers.

Inbound marketing: involves creating and freely sharing informative content as a

means of converting prospects into customers and customers into repeat buyers.

Video marketing:This type of marketing specializes in creating videos that engage

the viewer into a buying state by presenting information in video form and guiding them

to a product or service. Online video is increasingly becoming more popular among

internet users and companies are seeing it as a viable method of attracting customers

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ADVANTAGES OF INTERNET ADVERTISING

Targetability-Internet advetisers can focus on users from specific companies, SIC

codes, geographical regions and nations.

Tracking-Marketers can track how users interact with their brands and earn what is of

interest to their current customs and prospective

Deliverability and flexibility- Internet ad is delivered in relative 24 hours a day, 7

days a week, 31 days a month.

Interactivity- A consumer can interact with product, test the product, and if he or she

chooses to, buy the products

DISADVANTAGES OF ONLINE ADVERTISING

Customers Ignore Ads

Consumers are so used to seeing advertising on television, hearing radio commercials and

flipping through advertisements in magazines, they've developed an aversion to all forms of

advertising. This is also the case with online advertising, where consumers can avoid clicking

banner advertisements, bypass ads in online videos they watch and close pop-up

advertisements as soon as they come up on their screens. Customers are in control of which

advertising messages they want to click and respond to.

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Viewing Problems

Website downtime, lags in website or video loading and browser complications can reduce

the number of times consumers see online advertisements and how well they see them. When

technical issues occur, companies lose the opportunity to broadcast advertisements for theirproducts and services and may lose potential sales. Viewing problems can occur because of

problems with a website or if a consumer is using a smart phone or other mobile device to

view a website, has a slow connection speed or does not have the correct applications and

programs installed on his computers for proper viewing.

Expensive Ad Prices

Pricing for advertising online can range from inexpensive -- $20-a-month placements on local

parenting blogs -- to thousands of dollars on popular sites such as the New York Times. The

cost for banner, text and video ads vary depending on the amount of traffic and the type of

readership a website or blog receives. Online advertising through pay-per-click campaigns

and social media sites can also wreak havoc on a company's marketing budget, potentially

yielding little to no return on investment.

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Consumers Get Distracted

When customers visit a website, they typically have a goal in mind, whether it's to catch up

on the latest celebrity gossip, read the news, chat with friends, download music or shop for a

specific item. Websites present customers with various options that can easily distract themand pull their attention from your online advertisements.

Too Many Options

The Internet offers a wide range of websites on which companies can place advertisements.

This can be overwhelming, especially for small business owners. With so many options, it's

difficult to narrow down the choices to the websites that will attract the most potentialcustomers and sales. Once a company selects a website, it is then presented with a variety of

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AMUL AND INTERNET ADVERTISEMENT

AMUL AND INTERNET ADVERTISEMENT

Amul after its great success through television and print advertisement now has turned up

towards online advertisement.

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The Internet plays an increasingly important role in marketing, sale and promotional

activities. The Internet should not be viewed simply as a vehicle where advertisers can place

advertising messages. Instead, the Internet provides companies with multiple formats for

interacting with customers. A key feature of the Internet is the ability to interact with

consumers in real time. The Internet's impact has been so profound that it is changing theentire interface between organisations and consumers.

Amul is also of the view to take the advantage of internet advertisements at a large

scale.Internet advertising has become an indispensable part of their marketing model. This

form of advertising is pervasive and popular for many important reasons. The consumer

public has increasingly gravitated toward the Internet Superhighway for services that were

once mainly delivered by conventional sources. The facilitation of information dissemination

and communication has, perhaps, seen the greatest change in this dimension. The rise of web-

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based news, the expanding blogosphere, and the skyrocketing popularity of social networking

sites (to name a few) have, in many ways, displaced more traditional forms of media and

communication. Concomitantly, new avenues for advertising have emerged the digital

billboards, storefronts, and outlet shopping centers that have sprung up along the roadside.

Internet ads are difficult to avoid. Surfing through the web, they will likely adorn most of the

pages you view, seep into your inbox on a near-daily basis, and show up in unprompted

windows that jump out from the browser.

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Going online has allowed the company to more efficiently meet its target. The sales has gone

up drastically.

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Internet ads are difficult to avoid. Surfing through the web, they will likely adorn most of the

pages you view, seep into your inbox on a near-daily basis, and show up in unpromptedwindows that jump out from the browser.

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comm project report

Documents