Chapter 1: INTRODUCTION

1.1 BACKGROUND:

Internet marketing refers to the use of the Internet and digital technologies—such as
computers, mobile phones, and online platforms—to promote products and services. Its rise in
the 1990s and 2000s revolutionized how businesses engage with customers. As consumers
increasingly rely on digital devices, marketing strategies have shifted toward online channels
like SEO, SEM, content marketing, influencer marketing, email, and social media. It also
includes non-Internet digital channels such as SMS, television, and mobile ringtones, which
sets digital marketing apart from strictly online marketing. The field began with early tools like
the Archie search engine and evolved as technology improved. Today, digital marketing
focuses on delivering targeted, conversion-focused content across multiple channels, tracking
customer behavior, and guiding them through the buying journey to increase engagement and
sales. There are different types of platforms that are used as tools for marketing such as :
• Social media platforms allow marketers to reach their prospects in a myriad of ways. First,
marketing teams can use these channels to distribute paid ads and sponsored content. Each
platform has a way for marketing teams to create paid ad campaigns and segment users so these
ads appear on the feeds of target audience members. While each platform is different, most have
capabilities that allow marketing teams to place ads based on location, job title, interests, age,
etc., to ensure that a business's social media posts reach the right audience for maximum
conversion potential.
• Other effective way to harness digital marketing channels to reach target audiences is with
influencer marketing. Brands can partner with celebrities, sites, or others that are considered
experts in their field, and that share similar values. Brands can then reach these influencers’
followers with branded content and offers. Many marketers have found success with influencer
marketing, with 9 out 10 noting that it was the same or better than other channels they use.

• Email marketing campaigns allow organizations to stay connected with prospects and
customers, sending them customized newsletters or offers based on past shopping history or
brand engagements. If an individual has interacted with a few of your branded touchpoints –
like an email offer for 10 percent off the items they have been considering, or free shipping -
that little extra incentive could easily tip the scales from an “abandoned cart” to a completed
purchase.

• Content marketing allows marketing teams to be proactive about educating consumers about
current and new products in a relaxed and unpressured way, and about answering their users’
questions. Digital marketing teams create written content, videos, and other marketing assets to
answer questions or provide context to consumers throughout the three stages of the buyer’s
journey:
1. The awareness stage: Buyer realizes they have a need
2. The consideration stage: Buyer determines a course of action to meet this need
3. The decision stage: Buyer decides on a product / service to purchase to meet the need
• Search engine optimization, or “SEO”, often goes hand-in-hand with content marketing. Pieces
of content created by the business for their website, blog or other digital marketing platforms,
can be written and posted online in such a way that they are more likely to be seen by prospective
buyers searching for information on a certain topic than similar content created by their
competitors. This writing and posting strategy, and all the techniques and considerations it
entails, is known as SEO, or “search engine optimization”, because the customer is using a
search engine, such as Google, to find info about a product or service.

• Mobile marketing initiatives can include many of the digital marketing strategies mentioned
above, and typically leverage a combination of text messages, social media, email, push
notifications, and mobile applications. The importance of mobile marketing is rising, as it is
expected that by 2024, the number of mobile shoppers will rise to approximately 187.5 million
users. With the clear move to mobile, digital marketers need to think about how they can
optimize their current marketing efforts for mobile phones.

1.2 NEED FOR THE STUDY :

According to Figure 1 by Chaffey et al. (2006, xiv), there are many different marketing activities
or operating processes needed to manage online businesses effectively such as acquisition,
conversion/ proposition development, retention and growth, strategy and planning, and managing
relationship. The main purposes of these activities are to acquire new customers, convert them into
buyers and make them become regular customers. Besides that, the management processes of
Internet marketing play an important role in integrating Internet marketing with other marketing
activities. In this study, due to the limit of financial resources, we only apply two most cost effective
acquisition process activities to test the effectiveness of Internet marketing. However, we still cover
other acquisition process activities such as viral marketing, online PR, email marketing, etc.

1.3 LITERATURE REVIEW:

In these modern times, consumers not only buy products but also market them. They share details
such as product quality, reliability, pricing, ease of use and warranty claim procedures by word of
mouth through online forums and social communities. This research aims to study in depth the
factor that affects consumers’ ability to market products online and to then develop and focus on
the most productive measures of marketing so that they help marketing managers across industries
to develop new tools and techniques to harness consumers marketing potential.

1.2.1 As Chaffee (1986) noted, the greater the interaction between people on mass media, the
higher the chances of them sharing this information to cause opinion change resulting social
change. This means that indirect agents aren’t as effective as direct agents, in this case,
consumers themselves. Encouraging consumers themselves to get involved in the marketing
process increases the credibility of the message delivered.
British Journal of Marketing Studies
Vol.1, No.4, pp. 11-19 December 2013Publish By European Centre for
Research Training and Development (www.ea-journals.org)

1.2.2 In addition, Direct-to-consumer marketing can be greatly affected by consumers approach

towards it, which is influenced by media integrity (Huh, Delorme and Reid, 2004).It’s also
important to keep in mind the ethical concerns of pharmaceutical industries when involving
consumers as advertising agents as improper attempts can lead to damaging results. For example,
Merck's careless practices concerning Vioxx injured quite a lot of patients and caused
tremendous economic loss (Mercola, 2005)

1.2.3 Apple Newton, a discontinued product over 9 years ago has the opportunity for coming up
again as consumers of this particular product aim to use vigilante marketing as a tool to modify,
repair and innovate this product. The way in which we regard Newton trade name population
"homebrew advertising" (Kahney, 2004) "Folk advertising" (O'Guinn, 2003), the open source
"branding (which goes by many names, including the recent proliferation of customer
evangelism with a nice dovetails Garfiel, 2005), and "vigilante marketing" (Ives, 2004)

1.2.4 This paper Chrysanthos Dellarocas (October 2003) relates and explains the relationship
between internet feedback mechanisms & their ability to become large scale information
exchange hubs where consumers share their views on different products. The penetration of
online marketing in the consideration set of consumers is greatly influencing the decision
patterns and decision behaviors of consumers across industries in a subtle yet significant way.
There is evidence to suggest that consumers now rely much on online views and opinions ranging
from investment options to deciding what entertainment to use for recreation (Guernsay,2000).

1.2.5 Competition in most cases eats away the profit margins of the existing firms in play as the
larger the number of total players, the lesser the money to play with. This is also means that highly
concentrated firms tend develop strong barriers to entry to protect their profit margins. (Scherer
and Ross 1990). Although, this anti-competitive nature of firms can be harmful in the long-run for
consumers, it proves quite beneficial in the short-run for the firms. Another aspect relating to
markets is product standardization. In markets, where product standardization is high,
consumers tend to make simple comparisons between products. Consequently the market for
such products is highly competitive and price wars are a common feature of such market,
unless tacit collusion is already decided. This creates a strong need for companies to differentiate
their products through effective marketing as the products themselves are more or less the
same(Kotler 1991)

1.4 OBJECTIVES OF THE STUDY:

The following are the objectives for this study :

• To study the effects of online marketing through consumers, using various tools and
techniques across industries
• To study the effect of online word of mouth marketing through consumers on consumer
purchasing decision and brand perception across industries.
• To study the effect of email advertising through consumers on consumer purchasing decision
and brand perception across industries.

• To study the effect of online chat section on consumer purchasing decision and brand perception
across industries.
1.5 RESEARCH METHODOLOGY:
The methodology involved for data collection was mainly through primary source and was
obtained by reviewing the preferences of 50 people through a questionnaire circulated via a
google form.

Type of Data: I have collected all the data through Primary Survey. I have prepared my project
on the Primary Data.

• Primary Data: Primary data is original information collected directly from firsthand sources
to address specific research questions or hypotheses.

Primary Sources - Primary Sources are immediate, first-hand accounts of a topic, from people
who had a direct connection with it. Primary sources can include newspaper reports by
reporters who witnessed an event or who quote people who did, speeches, diaries, letters, and
interviews - what the people involved said or wrote, original research, datasets, survey data,
such as census or economic statistics.

Time Period of the Study: I took me 1.5 months for preparing this project.

Data Collection: I have collected the data through structured Questionnaire.

Questionnaire - A questionnaire is a research instrument that consists of a set of questions that

aims to collect information from a respondent. A research questionnaire is typically a mix of
close-ended questions and open-ended questions. The questionnaire has two sections. First, it
consists of demographics characteristics of the respondents, and second, demonstrates the
investors’ behavior such as heuristic and bias, respectively. There are a total of 13 questions in
the questionnaire that were asked from the target population. Respondents were asked to
answer certain items on scale 1 (Most Effective) to scale 5 (Least Effective), which is the “5
Point-Likert Scale”.

In this project I have used qualitative data. Qualitative data is defined as the data that
approximates and characterizes. Qualitative data can be observed and recorded. This data type
is non-numerical in nature and is also called “Non-metric data”.

Data Analysis: I have analysed the data through pie chart and bar graph.

Tools Used for Analysis:

1.Bar Graph- A bar chart or bar graph is a chart or graph that presents categorical data with
rectangular bars with heights or lengths proportional to the values that they represent. The two
types of bar graphs used in this project are :

a) Horizontal- A horizontal bar chart is a graph in the form of rectangular bars. The length of
these bars is proportional to the values they represent.
b) Vertical- A bar graph or bar chart in which the bars are plotted vertically along the y- axis
is known as a Vertical Bar Graph.
 2. Pie Chart- A pie chart is a circular statistical graphic, which is divided into slices to
illustrate numerical proportion. In a pie chart, the arc length of each slice is proportional to
the quantity it represents.

Area of Study: I have collected the data mainly from Kolkata {urban area}

1.6 LIMITATIONS OF STUDY:

The following are the limitations of the study :

• The graphs prepared and the analysis drawn from the information collected is limited to 50
responses only.
• The study belongs to people of Indian nationality only because it is difficult to cater to the vast
majority of citizens living in the world over.

• The list of factors included in the questionnaire is indicative and not exhaustive. Only the major
factors are taken into consideration for this project due to the innumerability of the number of
factors affecting this study.
CHAPTER 2: CONCEPTUAL FRAMEWORK

The Internet has rapidly evolved from a simple computer network to a powerful global
marketplace, significantly influencing daily life and business. Digital marketing, a key aspect
of this evolution, leverages online platforms and technologies—like SEO, SEM, content and
influencer marketing, email, and social media—to promote products and services. It forms a
subset of e-commerce, enabling buying, selling, and trading online. As digital tools grow, even
developing countries like India are increasingly embracing the Internet for marketing and
globalization. Techniques such as affiliate marketing, viral content, and blog promotion are
becoming essential in the modern marketing landscape.

2.1 NATIONAL SCENARIO

A report published in The Hindustan Times, New Delhi says about the digital advertising space
in India is worth Rs. 6000 crore and video is Rs. 1600 crore of that. This will grow to Rs. 8100
crore in 2016. According to a research firm eMarketer, ecommerce sales in India are expected
to grow from $14 billion in 2015 to $71.94 billion in 2022. Among all Asia-Pacific countries,
India is fastest growing contry in retail e-commerce sector. The combined gross merchandise
value, or total value of sales of country's top three ecommerce places i.e. (Flipkart, Amazon
and Snapdeal) in 2015 was $13.8 billion exceeded that of the top 10 offline retailers which
stood at $12.6 billion for the same period.

The following are the examples of e-commerce platforms in India:

1.AMAZON INDIA : The site generates an

estimated 322.54 million monthly visitors. Thus,
making it the highest performing site in the country
by a long shot and one of the best ecommerce
platforms for startups and SMEs. Besides its range
of original products, Amazon is an online selling
platform for electronics, fashion, home, grocery,
sports, automotive, and more. Amazon makes the
process of becoming a vendor very simple. It allows vendors to sell any consumer goods on
their website. Amazon also provides them with targeted advertising that can boost their product
sales . Amazon has an audience reach of 89% in India with a Net Worth of 107 lakh crores.

2.MYNTRA: Myntra is a leading Indian fashion e-commerce

platform offering a wide range of clothing for men, women, and
children—from luxury to loungewear. It supports sellers with
trend analysis, store management, cataloguing, and supply
chain services, allowing entrepreneurs to focus on their brand.
Myntra's current net worth is ₹1,220 crores.
 3.PAYTM: Paytm is an Indian e-commerce firm
that began as an e-wallet and e-recharge service.
Over the years, it has diversified into an e-
commerce setup, providing its users with a wide
array of services. Paytm users can now use the
application to pay their domestic bills, book tickets,
and avail a wide array of e-commerce services
which include buying and selling consumer goods.
Paytm's parent company, One97 Communications,
got listed on the Indian stock exchanges on 18 November 2021 after an initial public offering,
which was the largest in India at the time.[10] For the fiscal year 2021–22, Paytm's gross
merchandise value (GMV) was reported to be ₹8,500 billion (US$110 billion) . According to
a survey conducted by Rakuten Insight in October 2022, over 85 percent of Indian respondents
preferred to use Paytm for e-payments.

4.NYKAA: Nykaa is an Indian-founded

beauty brand which has almost created a
monopoly and is one of the ecommerce
selling platforms for startups in beauty
segment. The brand had its humble
beginnings as an online store selling beauty
items across various categories. Nykaa has
since expanded its range, bringing onboard
more luxury and exclusive international brands, as well as introducing its very own extensive
line of cosmetics and skincare. Beginning as an e-commerce platform, Nykaa went on to open
a brick-and-mortar outlet in the Indira Gandhi International Airport in 2015, and many more
following thereafter. As of August 31, 2021, Nykaa had a network of 3,055 influencers,
including Generation Z trendsetters, beauty, fashion and lifestyle bloggers, makeup artists and
celebrities that extensively work with the platform.

5.FLIPKART : Flipkart is THE indigenous e-

commerce giant of India. Founded in 2007,
Flipkart has since become a burgeoning e-
commerce giant with services comparable to
Amazon and boasting traffic of 1 billion
consumers. It allows the online sale of most
consumer goods on its website, ranging from
electronics and home essentials to fashion and
beauty. It is gaining huge popularity amongst budding businesses and is definitely the best
ecommerce platforms for startups and traditional businesses alike. Flipkart has a net worth of
40 lakh crores.
2.2 INTERNATIONAL SCENARIO

Digital marketing is a booming industry in the USA because of one of the highest numbers of
active internet users. The American market depends on online platforms leading to an increase
in digital marketing job opportunities in the USA.

A few famous e-commerce options in the international scenario include:

1.WALMART : Walmart has been a household

name in the US since the 60s, establishing itself
as a low-price point mega-warehouse, which has
since turned into the world’s largest retail
corporation, with stores in 50 states and a
significant e-commerce presence in the US,
Canada, and Mexico. Walmart’s online shoppers
have access to an array of products in categories
including electronics, baby products, fashion,
pharmacy, and auto-parts, making it an attractive platform for customers across a wide range
of profiles. Walmart in the US even offers a Walmart branded credit card for customers to save
even more on their purchases. Walmart’s net worth is $429.337 billion.

2.BEST BUY : Another US retailer with a long history

spanning back to the 60s is Best Buy. Beginning as a
consumer electronics retailer, Best Buy has grown to be a
dominant brand with bricks and mortar stores across the
country, as well as in Canada and Mexico. Today, Best
Buy offers customers a wide range of products, including
electronics, appliances, furniture, fitness, travel, baby
products, and more. Despite the wide variety, they are best
known as a consumer electronics company, and they rank
number 3 in the world in the computer electronics and technology e-commerce category.
BestBuy has a net worth of $17.2B.

3.WISH : Wish makes for an interesting

addition to the list as, unlike many other
brands featured, it is primarily a mobile
marketplace where small businesses and
manufacturers can sell goods directly to
consumers using the Wish platform. The
Wish marketplace operates in four main
categories, which are electronics,
family, beauty, and home decoration. Founded in 2010, Wish has had a meteoric rise to the
top, leading in categories including computer electronics and technology.
 4.IKEA: . Ikea is renowned as the largest furniture
retailer in the world, which was founded by Ingvar
Kamprad in 1943.Ikea is currently operating its business
in over 50+ countries with 422 stores as of the 2021
report. Apart from that, the company has gained nearly
490 million customers visited online and impacted a
strong performance in FY20 with $4.7 billion USD in
total sales. The group is responsible for approximately
1% of world commercial-product wood consumption, making it the largest individual user of
wood in the world.IKEA claims to use 99.5% recycled or FSC-certified wood. However, IKEA
has been shown to be involved in unsustainable and most likely illegal logging of old-growth
and protected forests in multiple Eastern European countries in recent years. IKEA's brand had
a value of 17.4 billion U.S. dollars in 2022.

5.SHOPIFY: Shopify Inc. is a Canadian

multinational e-commerce company headquartered
in Ottawa, Ontario. Shopify is the name of its
proprietary e-commerce platform for online stores
and retail point-of-sale systems. The Shopify platform
offers online retailers a suite of services including
payments, marketing, shipping and customer
engagement tools. Shopify has a market cap or net
worth of $80.79 billion as of June 22, 2023. Its market cap has increased by 83.83% in one
year.