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The Advantage Of Mobile Marketing

Today, marketers have found it increasingly more difficult to draw in and hold on to their target audience. This is due in part to the impersonal one-way mother nature of traditional mass-media, and partly to the fragmentation of the marketing environment. Furthermore, consumers are no longer impressed with magnificent promotional initiatives and mind boggling special effects, instead they are now thirsty for information and are even willing to pay for it (Haig, 2002).

Yet the picture is not all doom and gloom. The brand new global market of the 21st century has provided many new opportunities and affordable options for both marketers and consumers alike. For instance, the emergence of the mobile smartphone has improved every aspect in our society and is becoming one of the most effective followed consumer products of all time.

As Chuck Martin points out, we are amid a 'technological trend' that has very good outweighed the tv or the personal computer. This 'third screen', is revolutionizing the marketing landscape and the whole buying process. Mobile smartphones have liberated consumers from the confines with their homes, offices and traditional multimedia environments and empowered them with information right at their fingertips. (Martin, 2011).

Mobile marketing includes a variety of applications which range from SMS, MMS, short-codes and location-based services, to programs and direct mobile payment. With more and more folks transporting smartphones in their pockets, marketers have the potential to catch them everywhere and anytime.

Recent studies also show that today there tend to be mobile devices in use than there are PCs and laptops alongside one another. Moreover, matching to eMarketer, the amount of time people spend on their phones browsing the internet, hearing music, using apps and playing games has more than doubled in the past two years as the time put in online on computer systems is continuing to grow by only a mere 3. 6 percent.

Nonetheless, that's not to say that traditional media is becoming less important or obsolete. However, due to its passive aspect, marketing messages can't be personalized for different aim for markets and often end up achieving the wrong audience at the wrong time. With multimedia-rich smartphones and other cordless devices marketers be capable of send their consumers more personalized and relevant marketing emails wherever and whenever. Furthermore, individuals are now in a position to search for the information they need every time they need it. Thus, with a well-integrated marketing campaign that includes both traditional and new media businesses and brand owners can raise the customer devotion, acquisition & most essentially their bottom-line.

1. 2 Objective

The objective of this thesis is to get an understanding in today's talk about of mobile marketing and also to identify the benefits of using a mobile smartphone as a direct marketing tool compared to traditional mass-media. Additionally, this thesis will look at the and future tendencies of mobile marketing and its implications for companies.

1. 3 Methodology

This review is dependant on lots of select catalogs, journal articles, websites and other books in the field of mobile marketing, digital media and m-commerce. The most popular and commonly cited books was also determined. The search for relevant books was based on many keywords including however, not limited by: "mobile marketing", "mobile ads", "m-commerce", "traditional vs. new media", "digital media", and "immediate marketing".

Mobile Marketing

2. 1 Meaning of Mobile Marketing

Before checking out the benefit of by using a mobile smartphone as a direct marketing tool we should first define mobile marketing. In a nutshell, mobile marketing is a method of connecting people who have advertisers via a mobile device. However, with the rising demand for information and communication technology as well as dropping charges for broadband internet, mobile marketing has turned into a powerful marketing tool that is shaping the way we do business.

As Eric Pfanner of NY Times describes, the energy of mobile marketing comes mainly from the ability to acquire immense amounts of user-generated data by monitoring their clicks and tracing their whereabouts. Mobile marketing also makes it easier to focus the communication towards targeted viewers giving it a huge advantages over traditional mass-media which focuses on the public as a whole.

But what exactly constitutes mobile marketing and how is it defined? According to the Mobile Marketing Connection (MMA), mobile marketing is thought as "a couple of practices that allows organizations to talk and engage with their audience in an interactive and relevant manner through any mobile device or network. " This meaning is composed of two important components: "a couple of procedures" and "build relationships audiences". The first aspect pertains to various marketing and e-commerce activities such as advertising, advertising, e-banking, online-purchase and CRM to name a few. Hence, mobile marketing is a set of practices supposed at delivering a note, creating value and/or creating a relationship with the client.

According to Philip Kotler, renowned professor and marketing theorist, marketing is thought as "the science and art work of discovering, creating, and providing value to fulfill the needs of your target market at a income" (Kotler, Wong, Saunders, & Armstrong, 2005). One might then say that mobile marketing is the knowledge and artwork of communicating, engaging, and delivering value that is pertinent to the prospective market at a profit via cellular telecommunication mass media.

The second and more important component in MMA's description of mobile marketing relates to the relationship between your customer and the marketing expert. With mobile devices this relationship has shifted from one-way to two- and even multi-way associations where both the organization and the client are responding to one another and exchanging information (Shankara & Balasubramanian, 2009). Therefore, the reason is to lure the client to respond by either "push" methods, initiated by the client in the form of a click or a reply, or "pull" strategies initiated by the marketing consultancy.

Additionally, Rob Stokes of eMarketer explains that there are two types of mobile engagement. One uses the mobile phone's communication features as part of an engagement strategy, and the other drives traffic to an organizations mobile website or software (Stokes, 2011). Either way, marketing information must be relevant enough that consumers no more passively take in, but instead actively participate in campaigns, especially in real-time, influencing the opportunity and the route of the advertising or marketing concept.

Kim Dushinski, author of 'Mobile Marketing Handbook', delves deeper and defines mobile marketing as "how businesses talk to consumers on their mobile devices, with their explicit permission, at the right time, at the right place while providing relevant value" (Dushinski, 2009). She phone calls this smart mobile marketing because not only does mobile marketing rely on the utilization of smart devices, but this can be a uniquely customized form of communication it personal and of value to the individual user. Moreover, consumers voluntarily consent to receive advertising or promotional offers which in turn escalates the efficiency of the advertising campaign and establishes a far more effective and clear relationship with the buyer.

To summarize, mobile marketing uses wireless and mobile communication stations for conducting various marketing and e-commerce activities with the aim of establishing deeper plus more transparent relationships with individuals as well as focus on markets. Way more, mobile-data can provide marketers and business with valuable home elevators customers and leads, including their location, purchasing patterns, and a great many other useful insights which can help them deliver value in a far more relevant manner. That is specifically why it is crucial for marketers to consider participating customers on their mobile devices.

2. 2 The 6 Components of Mobile Marketing

Figure : The 6 key elements of mobile marketing

Together with the internet the cellular phone has truly transformed the methods where we talk and share information. As cell phones continue to develop with better and newer features also, they are assisting to redefine the marketing surroundings.

As powerful as mobile marketing may be, many businesses are still hesitant or inept at expanding strategies and allocating resources to effectively engage their customers on the mobile program. As a consequence, many opportunities are forgotten or mismanaged. One reason would be the fragmented advertising environment and consequently shifting consumer behaviors (D'Alleva & Colapietro, 2012). Another reason behind this incompetence may be the lack of understanding what mobile marketing is and the various forms it can take or the many different sorts of applications and tools that are participating.

The model in shape 1 should ideally help marketers seem sensible of mobile marketing and acknowledge the probable of interesting customers on the mobile phones. The six elements were produced out of varied ideas as well as after intensive overview of the literature accessible.

Mobile marketing varies from traditional marketing in many ways and the goal of this chapter is to discuss these differences predicated on six distinguishing important elements.

Earlier, it was explained that mobile marketing relates to marketing activities conducted via cordless cellular devices and sites - and relating to Andreas Kaplan - to which individuals are regularly connected. Likewise, Alex Michael and Ben Salter note that mobile marketing uses the mobile medium for spontaneous, immediate, interactive and targeted marketing communications or entertainment between a business and its customers and could occur any moment or place. (Michael & Salter, 2006). Therefore, the first element of mobile marketing is 'immediate'. That's, it can make an immediate response from the consumer. Philip Kotler et al. , clarify that 'direct-marketing' is a primary form of communication where individuals and target customers are carefully chosen in order to obtain an instantaneous response (Kotler, Wong, Saunders, & Armstrong, 2005). The mobile phone allows both the marketer and an individual to connect immediately with the other person without first having to go through intermediaries like a postal service or broadcasting network (Becker & Arnold, 2010). Therefore, with the cellular phone there is a high amount of synchronicity and therefore the sender and the device can respond to the message together (Hongcharu & Eiamkanchanalai, 2009). If the consumer is enthusiastic about the marketing concept they can respond straightaway by either replying to the text message, answering the call or any other form of communication available on their cellular phone. With media including the TV or Periodicals, interactivity is near impossible and synchronicity is therefore very low.

The second factor of mobile marketing is 'universal'. It is because today's smartphones are multimedia-rich devices with a wide array of tools capable of sending and getting content as content material, image, audio and video recording in addition to making phone calls. Since the aim of advertising is to get the interest of the consumer by revitalizing their senses, mobile marketing is particularly effective in influencing a consumer's perception. In addition, mobile marketing promotions can include all the facets of effects - feelings, persuasion, behavior, connection, cognition and conception - and therefore have a more profound effect on the consumer's habit.

Third, mobile marketing is 'in-context'. Because of the 'ubiquitous character' of cell phones information can be provided in real-time depending on the whereabouts and the day-to-day tendencies of the user. Therefore, being able to anticipate the positioning of customers when they have the marketing text messages is important for the success of any marketing campaign.

The mobile phone has become a mundane, each day item (Michael & Salter, 2006). It could be used at home, at work or while being on the move. By taking into consideration the customers location, the marketing note can eventually be tweaked to raised serve the customer's needs (Krum, 2010), so when it comes to local queries, mobile marketing will offer effective alternatives. Thus, on the one side, mobile marketing enables businesses to put into practice context-aware and targeted advertising, and on the other hand, mobile marketing permits more customized pull-type adverts for consumers (Li & Du, 2012).

Forth, mobile marketing is 'personalized-marketing'. Communication can be uniquely customized to meet up with the specific needs of specific customers or aim for audiences. As mentioned in the very beginning of the chapter, developments in it and telecommunication have caused a switch from mass marketing to targeted or 'one-on-one marketing'. It has resulted in a dramatic impact on marketing communication as complete (Kotler, Wong, Saunders, & Armstrong, 2005).

The fifth component is the fact that mobile marketing is 'permission-based marketing'. As mentioned, there are extensive tools and features included in mobile phones which permit the consumer to 'opt-in' or -out of campaigns and posts. The cell phones also enables both the sender and the device to conceal their personality when making a call and therefore providing additional anonymity. However, this demands stricter regulations in order to protect the privacy privileges of individuals and promote ethical patterns. As Seth Godin points out, permission-marketing is a privilege so when a customer pays focus on the concept, business must treat them with admiration.

Last but not least, mobile marketing is 'interactive'. Consumers can connect to the business, the marketing and with each other through various applications and tools readily available on most mobile smartphones. Where traditional marketing is viewed as a one-way communication process where the message goes from sender to the recipient, mobile marketing seeks to engage the buyer through interactive dialogue. The subject matter is repaid and forth between your sender and the receiver throughout the entire communication process (Moriarty, Mitchell, & Wells, 2012).

To conclude, mobile phones have undoubtedly changed the communication process between organizations and their customers. Therefore, this poses great obstacles for businesses and marketers as traditional marketing techniques are becoming ineffective and unable to keep up with shifting consumer habits. The "one-size-fits-all" approach of mass-media no more applies to proficient and empowered consumers guaranteed with superior technology and rich with information. As a result, customers no more desire to be talked at, instead, they need firms to listen, engage, and answer (Kietzmann, Hermkens, McCarthy, & Silvestre, 2011) as well as provide useful and relevant information.

2. 3 The Go up of Mobile Marketing

Mobile telephones are widespread and of great importance to mankind. With the energy of the internet they allow folks from all over the world to connect almost instantly irrespective of time and place. But smartphones aren't only communication devices. Nowadays they may be being utilized while shopping, bank and even while technical resources such as working pumps from remote locations. Cell phones are also ideal for being up-to-date on the news headlines and for receiving alerts on personal monetary transactions.

The rising reputation of cell phones provides many new opportunities for businesses as well as individuals. Regarding to recent studies, they will be the number one preferred communications medium (Li & Du, 2012), and because they are personal and accessible at all times it is not any wonder that increasingly more marketers are adopting mobile phones in their promotions.

With the launch of broadband internet and innovative advancements in communication solutions many industries have become increasingly more associated with digital media. Media networks such as CNN, BBC and Reuters now offer mobile apps. Moreover, food and drink companies like Coca-Cola, Starbucks and McDonalds deliver coupons to mobile handsets. Mobile phones have created a fresh breed of 'always linked consumers'. For many individuals surrounding the world the cellular phone has turned into a personal and everyday tool used for browsing on and communicating online (Michael & Salter, 2006).

The mobile has also paved the road for new varieties commerce that may be conducted wirelessly and on-the-go (m-commerce). As described in section 2. 1, Mobile Marketing refers to any method of engaging and creating a relationship with the client in order to deliver value at a profit and which is conducted via a mobile network. Thus, users no more be based upon wired systems and computers, instead they now use mobile communication device such as their cell phones or tablet Computers to carry out various e-commerce activities (Ngai & Gunasekaran, 2007).

Number of individuals with Usage of a Mobile Phone

Furthermore, the graph in amount 3 shows the percentage of site views coming from mobile devices internationally and regionally. Several studies signify that mobile internet will soon take over desktop internet utilization. Hence, we can discover that 10. 1% of all pages seen during May this past year were from a mobile device. In the same way, mobile web penetration is strongest in Asia and Africa with 18% and 12. 9% site views respectively.

Throughout the planet folks have become interlinked with one another on their mobile phones and other devices. The near 'ubiquity' that cell phones have to give you is generating many new financial opportunities for the whole society. The range of cellular devices has already reached unprecedented proportions.

"Everybody on the planet can be employed with a mobile device. In expanding countries, it can be the only path to activate someone digitally" (Becker & Arnold, 2010).

In Kenya for example, the cellular phone is becoming and essential part of cash-transfer schemes allowing the poor in rural areas to get goods. In Peru, cell phones and tablet computers have become a primary way to obtain knowledge among pupils. Also, various cultural networking sites and web apps such as Twitter or Facebook have in lots of ways inspired the Arab planting season.

"Social websites is no longer the website of the liberal young ones, empowering different agendas across the politics map. "

Mobile systems have provided many monetary and politics opportunities that have helped people lead better lives and make their views heard of their communities. This is because mobile phones have, in many countries, become much cheaper than personal computers. Consequently, smartphones are often considered a person's first personal phone as well as first personal computer (Krum, 2010).

Global Mobile Marketing Spending

In the context of mobile marketing, eMarketer predicts that global spending is likely to climb 400% in the coming four years - from $8. 4 billion in 2012 to practically $37 billion in 2016. This growth is mainly credited to increasing smartphone and tablet sales.

The Amount of Users/Minutes Spent on Apps per Month

And in relation to smartphones, it is estimated that there are 1 billion dynamic mobile app users worldwide spending a total of 101 billion minutes a month on apps.

The facts and characters presented in this section try to show the value of the mobile medium in present day marketing. It really is clear that cell phones have become an integral part of our day to day lives. Since we spend a sizable portion of our time logged-in to your phones, it seems self-evident that mobile phones are the easiest and direct route for attaining and engaging customers at every stage of the life span cycle. Whether it is to sell a product or service, deliver information, or even to make life easier, the mobile trend has swiftly disseminated making that which is on the contrary side of the world appear very real and local. Businesses shouldn't hesitate to utilize the realm of the mobile medium.

2. 4 Press and Pull

The main distinction between thrust and draw marketing lies in just how a consumer is contacted. While push practices are usually initiated by the brand owner without necessarily obtaining authorization from an individual, pull tactics try to draw the consumer to the brand by offering something of value and establishing loyalty. In traditional mass-media the same communications are pushed out to everyone including folks who are not within the marketers market. With mobile marketing customers will, on their own terms, choose when and what they see. Melissa Rucker makes the following observation when it comes to pull marketing:

"They choose to 'opt-in' to your note whatever the channel in which it is delivered, therefore you have to make it has[sic!] easy to 'opt-in' as possible. This development toward 'opt-in' yank marketing is partially why social and mobile marketing are a crucial aspect for marketing success. "

2. 5 Opt-in and opt-out

While mobile marketing has been around since the 90s it continues to be quite a young willpower and deeply rooted in traditional marketing strategies. Consequently, the methods used to motivate content through mobile systems resemble 'interruption marketing' common in traditional mass-media. Similar to how commercials interrupt a tv set program or pop-up house windows come into take on a computer screen, press techniques via mobiles are occasionally invasive and frequently happen without prior agreement from the end-user. According to Kim Dushinski, sending content via mobile devices and especially texts to people who haven't explicitly requested them is unethical and in many countries even illegitimate. This demands the necessity for extensive revision of traditional marketing and advertising techniques with new rules and methods for engaging and interacting with consumers on their cell phones.

One method briefly discussed in section 2. 2 is permission-based communication that allows users to opt-in or -out of marketing emails by obtaining legal authorization. For instance, signing-up online, filling out a sign up form or giving an answer to an SMS are methods by which consumers can opt-in. Such guidelines are not only significant in protecting consumers from unsolicited messages, but promote honest behavior and are incredibly effective too. The real trick however, is to build up a advertising campaign that make demand and motivates people to opt-in. Users today are bombarded with infinite spam information, promotional offers and obtrusive pop-ups. Thus, it's important to recognize the specific needs and desires of the consumers and to create more appealing and user-friendly promotions in order to develop long-lasting and profitable associations.

2. 6 The Tools of Mobile Marketing

Mobile marketing is merely as powerful as the hardware allows. The developments and functions of mobile marketing are therefore directly linked to the mobile phone and its own networks. Before releasing a mobile advertising campaign it is vital to understand what kind of devices are present on the marketplace and what tools and applications can be found to best meet the needs of the customers.

The purpose of this chapter is to provide a primer into the several tools commonly on the mobile medium also to explain their software within a marketing framework. But prior to going into much aspect it would be useful to give a short assessment between basic mobile phones and smartphones. Essentially, it all boils down to two main aspects: the Operating System (OS) and the hardware specs. With basic mobile phones the user is often attached down to a closed operating-system and without the ability to stretch its features. This kind of mobile connects to a so called 2G cordless radio network and provides limited features such as voice communication, Short Note Service (Text) and Multimedia system Messaging Service (MMS). Newer cell phones may feature a watered-down version of the Internet such as WAP which allows for text-based Web browsing, instant messaging and e-mailing.

On the other hands, matching to SmartphonesAppsPedia, a smartphone is thought as "a cellular phone offering advanced features, often with PC-like efficiency or capability to download apps. " Therefore, a smartphone can not only hook up to 2G sites, but also newer 3G as well as Wi-Fi systems. Subsequently, the smartphone combines the features of a basic cellular phone with the features of a computer to allow an individual to store personal information, send and receive e-mails, search the internet and install programs that prolong the features of the onboard operating-system.

2. 6. 1 TEXTING (Text message and MMS)

Text messaging is an efficient and cost efficient way to market any service or product having the ability to get in touch with customers via bulk SMS (or MMS). It is one of the oldest features on almost any cellular phone.

SMS are digital emails which endure to 160 alphanumeric character types and can be sent to and from a mobile phone. Alternatively, MMS stretches the capabilities of Text message and includes multimedia content such as visual, audio tracks and video in addition to text messages.

SMS and MMS can be directed as a kind of personal communication in one mobile phone directly to another and can be dispatched commercially via texts services that relay content to multiple cell phones together (Dushinski, 2009).

It is approximated that about 7. 8 trillion Text message messages were sent worldwide in 2011 which number will continue to increase throughout 2013. Furthermore, it is expected that by 2013 worldwide SMS income will break the $150 billion tag for the first time.

The immense popularity of Text message and MMS originates from the fact that they are simple person-to-person messaging service that are simple to grasp and have popular support (Michael & Salter, 2006).

In the framework of mobile marketing, text messaging has become ever more popular as it provides great ways for interacting with customers and cheap access to information. The usage of Text message and MMS among mobile phone users is quite high and forecasts show it will remain that way for a while to come (Michael & Salter, 2006).

One of the main benefits of a text messaging campaign is the fact that it is straightforward to implement and most affordable as possible applied across various mobile platforms and companies (Dushinski, 2009).

SMS and MMS marketing are especially effective in appealing customers or customers to participate in a marketing campaign and in revitalizing consumer purchasing. For instance, truth shows such as "-sterreich sucht den Superstar" or "American Idol" prompted viewers in participating in the final votes for his or her favorite musical act by sending special keywords to brief rules (SC). Coca Cola, on the other palm, has repeatedly operate a long-term sweepstake where hidden knowledge numbers are concealed beneath the bottle caps and when sent via Text to a brief code, consumers could earn prizes. By giving an answer to these campaign users are opting-in or subscribing to get marketers messages or posts as well as permitting them to expand their database. When integrated with traditional media, texts can also create large ROI.

However, mobile marketing can be challenging and when done wrong may even deter customers or potential clients. Susan Gunelius of Creative Inc. recommends following five tips for better words messing campaigns :

Brief, clear and specific communication. Customers must realize the purpose and also respond appropriately.

Addressing the customer appropriately and avoiding the use abbreviations and slang conditions (common in spam information) otherwise they will be ignored.

Text communications should ideally improve the user experience as soon as it is read by offering important info or another thing of value. For example, real-time information based on a customer's geo-location.

The sender and or brand should be clearly identifiable to become traceable, responsible and promote honest behavior.

Making the client feel exceptional and preventing clutter in order to entice them to opt-in or stay subscribed to the service.

2. 6. 2 QR Codes

Originally invented in Japan for monitoring products in factories, today quick response rules (QR) have grown to be indispensable marketing tools we can't do without. QR Rules like the one depicted above in number 7 are 2D club codes that can be captured via a mobile phone's camera and changed into content material, links and image or used as vouchers among other things.

The rapid rise in level of popularity for QR rules lies in the actual fact that they allow traditional media to be interactive and measurable since each QR code is unique and traceable. In the framework of mobile marketing, QR rules can be used in a variety of ways and can be integrated into any type of media including Television commercials, print out advertising, digital exhibits or infoscreens, business credit cards, mailers and even on food presentation.

When it involves implementing QR rules however, marketers should study the following key concerns :

QR rules should be in context with the entire marketing message. The content hidden in QR codes should be relevant to the services or goods being promoted.

Clear and logical information about the purpose of the QR code and what things to expect in order to entice customers.

Whatever the outcome of the QR code, it should be mobile-friendly to improve an individual experience as well as improve the brand understanding.

The use of QR monitoring systems can determine the feasibility and efficiency a QR marketing campaign and even traditional ones too.

However, Hopkins and Turner remember that while QR rules are an instant and useful way to provide important information, they are simply just another method of engaging potential customers and customers. Quite simply, marketers shouldn't become overly excited about using QR codes and lose site of the initial reason for the marketing campaign. (Hopkins & Turner, 2012).

All in all, QR Codes have become increasingly more popular among consumers and many businesses are developing new and creative ways to use them into their marketing campaigns and ultimately connect with customers (see illustrations on the following page).

Location-based services (Pounds) enable the id of a person based on their time as well as geographic location and, thus, enable more unique, unique and well-timed mobile ventures (Li & Du, 2012).

LBS on smartphones are another great way to engage in a one-on-one dialogue with customers. A growing number of companies are now incorporating LBS to their mobile marketing strategies in order to determine customer commitment, drive deals, and encourage new tourists (Strout, Schneider, & Emerson, 2011).

For many years marketers have been contemplating how and where you can reach the ideal target audience. With Location-aware smartphones, businesses is now able to take advantage of the always-connected and mobile-bearing consumer to make customized and special deals. By incorporating mobile marketing techniques and geo-location, businesses can go a long way in providing customers using what they want (Stokes, 2011).

LBS first gained acceptance with social mass media services such as Foursquare or Facebook and provide a fresh and amusing method for users to share with the earth their whereabouts. Yet the opportunities within Pounds are far greater. When users "check-in" to a location via their mobile phones they are not only making an individual declaration, but are also providing free advertising. Additionally, LBS allows business owners to easily identify their regular customers simply by monitoring which people check-in the most.

Consequently, check-in data obtained from various location-based services can offer valuable geographic and demographic data about different locations and the sort of men and women that visit them. This sort of information was only permitted after the integration of Gps navigation technology in mobile smartphones. It is a great way to focus on and advertise to the right customer and makes marketing content contextually more relevant (Becker & Arnold, 2010). The Livehoods research project, for case, is an outstanding exemplory case of the potentials of incorporating LSB with mobile phones as well as the marvelous value such information provides for marketers.

The capacity to monitor customers with real-time advertising that are both contextually relevant to what they are considering over a mobile site or software as well as relevant to their current geo-position, escalates the relevancy of mobile marketing for businesses and appeals to brand owners to engage in direct dialogue using their customers (Murphy, 2011).

2. 6. 5 Mobile Ads

Mobile advertising comes in various shapes and forms and is found in lots of the tools reviewed in this section. Just like advertising in the original sense, mobile advertising is a kind of communication whereby promotional emails are placed in mobile applications. Mobile ads commonly range between web banners, Text or MMS communications, all the way to in application ads as well as advertisements placed in game titles and videos.

There are extensive different categories for mobile ads but the most typical are:

Mobile search advertisings: contextual and text based ads positioned on search engine sites like the people commonly seen on Google.

Display advertising (banner advertising): creative and contextual image advertisements by means of banners on the top or bottom of any mobile site.

Sitelinks: hyperlinks (URLs) in texts that direct an individual straight to a mobile site.

According to Kim Dushinski, mobile ads have swiftly gained acceptance from everyone because people are already used to finding advertising on standard websites and PC software (Dushinski, 2009). In the same way, the learning curve for businesses to put into practice mobile advertisements is quite small and is common practice.

There a wide range of advantages of using mobile advertisements over traditional web ads. One advantage is the fact that mobile screens are way smaller than computer monitors and for that reason less cluttered. Marketers have hardly any screen space to experiment with with and often there is only room for just one ad. Another gain is the fact that mobile advertisements have a higher click-through and change rate than non-mobile advertising which significantly enhances the impact and efficiency of the plan (Krum, 2010).

Click through rate is the amount of times the ad is clicked with regards to the quantity of time is was actually viewed. The transformation rate is the number of active clicks with a visitors.

Yet the most important benefit of mobile advertising is the growing craze of integrating location. 'Geo-location advertising' on cell phones is expected to really take off by 2015 as technology becomes more powerful and demand increases.

With geo-location advertising, marketers can concentrate on ads based on the user's location and distance to provide contextual plus more relevant information and therefore to better provide the customer's needs. Here Nik Street notes:

The ability to identify a user's location and deliver relevant and contextualised advertisings in proximity using their environment in real-time whether using search, display, or messaging offers a game-changing feature to the world of advertising. So much so, that the convergence of freedom, advertising and location, will make mobile the most potent media to promote.

Google's 'hyperlocal mobile ads' are another exemplory case of the style towards freedom and location. When a search for a product or service is conducted in Google via a mobile device, the results that are exhibited derive from the user's location and distance from the nearest supplier of this good or service. Corresponding to google this may lead to more traffic and higher revenues.

2. 6. 6 Augmented Reality (AR)

Figure : Augmented fact Concept by Mathew Buckland

Still in its infancy, this highly superior technology uses the built in Gps unit and camera entirely on smart devices to overlay computerized content on real life footage. The content may be in the proper execution of 3D images or simple textual information tags in regards to a location or object (Stokes, 2011).

2. 6. 7 Mobile Apps

While mobile applications or 'apps' have existed since the times of the Hand Treo PDA in 2002, they truly became particularly popular with the advantages of Apple's first generation iPhone back in 2007 (Krum, 2010).

Mobile applications are downloadable software programs or resources that can stretch the functionality of the on board operating system and allow the user to get more out of the devices. They include but are not limited by email clients, address literature, calendars, notebooks, phrase processors, browser and even games (Krum, 2010).

There are two main approach to distributing and providing apps. They can either be sold (paid apps), or they could be offered as free-of-charge downloads (freemiums). Either way, they have grown to be powerful marketing tools that can help promote and market a brandname (Krum, 2010) and can handle integrating numerous kinds of mobile advertising.

While freemiums are free they could also offer additional services which permit the users to gain access to further content through either in-app purchasing or subscription. Freemium apps will be the most popular kind of apps and make more than 80% of traffic in the Apple App Store.

Traditional vs. New

The main distinguishing feature between traditional and new marketing methods, stems from the power for the sender and the receiver to interact with one another. With interactive marketing it becomes easy for both sender (the firm) and the recipient (the customer) to align their desires via immediate and continuous dialogue (Bezjian-Avery, Calder, & Daniacobucci, 1998).

Consequently, interactivity leads to the ability for the client to control the information as opposed to passively exposure to it as is the truth with traditional marketing (Bezjian-Avery, Calder, & Daniacobucci, 1998). Quite simply, new communication advertising toppled with capabilities of the internet and the cellular phone have transformed people from mere consumers to self-employed publishers who create and deliver content independently terms.

However, in their research paper on interactive vs. traditional advertising, Bezjian-Avery et al. note that in certain circumstances interactivity was not always better and could even lead to disrupting the persuasion process (Bezjian-Avery, Calder, & Daniacobucci, 1998). They argue that with traditional mass-media just like a printing commercial or an image of something on a web site is more effective as it pertains to influencing the belief process (the way information is received through the five senses), in particular visual handling.

On the other hand, Hongcharu and Eiamkanchanalai argue that due to fragmented marketing environment, traditional mass-media is now more costly and largely ineffective. Moreover, the initial functions of internet enabled mobile phones to incorporate different characteristics such as privateness, synchronicity, contextual content, purpose-based showing, self-control and much more, are more desirable to consumers and also permit the marketer to raised position their marketing emails (Hongcharu & Eiamkanchanalai, 2009).

Identifying Business Needs

Identifying business need is crucial to the success of any business as well as an important component to any marketing task. Before businesses get started implementing mobile marketing in to their strategies, there must be clearly founded business goals and objectives. A mobile marketing campaign should fall good strategic vision and mission of the business. Thus, mobile marketing shouldn't be regarded as a subset, but instead an integral element of your firm's functions and procedures. It will need to be considered in the complex requirements (the procedures and strategy) of your business to be able to provide maximum value.

Yet mobile marketing is not about technology, it is approximately focusing on how consumers live their lives, acquire information and exactly how they communicate with the businesses, the press as well as among themselves.

In order to look for the actual needs of any business and develop a highly effective mobile marketing plan, companies should identify the marketplace dynamics and the many influencing factors or developments. In addition, companies must identify interior and external stakeholders and their motives. Also, firms must align their own aims and capacities with the needs and wishes of these customers.

According to Yahoo thinkinsights :

89% use their smartphone throughout the day

81% see the internet on their phone

77% search for information on their smartphone

68% of mobile users use apps

48% watch videos on their phones

89% of consumers search for information on the smartphone out of urgency (being on the go, when not in front of some type of computer or when having to search something as quick as it can be).

According to Dr. Donald J. McCubbrey, businesses must guarantee their offerings match the customer's world. Thus, the design of the mobile advertising campaign, and consequently the overall business needs, must be based on the marketplace itself and take into account the end-user's point of view, "which means that consumers buying, using, or recommending the products are the driving pressure behind successful marketing efforts. "

4. 1. Handling Mobile Marketing Campaigns

The amount of knowledge and degree of expertise involved with mobile marketing requires businesses to set aside a whole budget of its. This isn't only scheduled to high entry barriers in the form of technology and infrastructure, but also enough time, work and manpower required in building a relationship with the client on a mobile phone is immense. Unlike traditional marketing, mobile requires firms to actively take part in two- and even multi-way dialogue. So while mobile marketing offers cheaper alternatives compared to traditional forms of communication, it is becoming far more complex and can't be consider as a sheer subset (Tsirulnik, 2012).

Managing a mobile marketing campaign, therefore, depends on a number of important key steps and Kim Dushinski's 'Five Steps to Creating a Dynamic Mobile Marketing Plan' offers a great strategy especially since it recognizes the need for a vibrant methodology. As Kim explains, unlike static traditional marketing, the mobile marketing panorama is in an instant and continuous express of change which requires marketers to actively get involved with customers, only then can you really create a profitable plan (Dushinski, 2009).

Therefore the first step is to learn what customers need or what they really want and to respect those needs by offering something of value and which boosts their experience. Subsequently, with a cellular phone, it only require a few clicks to activate the consumer and offer something of value (Tsirulnik, 2012).

The second step is to align the goals of the business with the goals of the target market. In other words, setting up clear and measurable goals that meet both the needs of the clients as well as the businesses.

Here Dushinski emphasize that some business efforts are generally directed at acquiring clients and broadening the client base, additionally it is important to consider current customers as well. Because mobiles are such interactive tools additionally it is important, and maybe easier, to put into action mobile marketing promotions at current customers (Dushinski, 2009).

Third, because marketing communications will be sent to an individual via the mobile press, it's important to consider an individual experience, and thus, the correct tools or applications offering value to the customer and the brand understanding as well as ROI for the business enterprise.

However, the mobile medium is a highly interruptible programs and user can easily be distracted by specific things like phone calls, texts or even lack of signal. Each one of these things can critically impair an individual experience (Tsirulnik, 2012).

Additionally, Kim Dushinski notes that mobile marketing tools such as Text, Websites or phone calls come with various capabilities and advantages which explains why they need to be carefully considered with regards to the end deliverable (Dushinski, 2009).

The fourth step relates to the actual launch of the marketing campaign which includes the creative aspect as well as deciding on the best mobile Agency that can help deliver the meaning within an appropriate manner which ties in to the overall business strategy. That is vitally important because the company will be collaborating throughout the entire life-cycle of the marketing campaign; optimizing and tweaking to to be able to help reach the goal (Tsirulnik, 2012).

The fifth and last step for owning a mobile advertising campaign is to handle adjustments. This is one of the most important steps and decides the success or failing of any advertising campaign.

A unique benefit that is included with mobile marketing is the simplicity and high amount of measurability with which campaigns can be monitored and analyzed. The type of mobile phones as marketing communications tools allows marketers to quickly keep track of and adapt their strategy by monitoring consumers' online habit patterns in internet sites, responsiveness to phone calls and texts, mobile queries, geo-location and related purchasing patterns.

Like with any advertising campaign, both traditional and new, it's important to show efficiency in terms of return on investment (ROI). The amount of analytical information that may be obtained from cell phones is immense and provides valuable insights in to the performance of mobile marketing campaigns. Mobile analytics is the process of measuring, monitoring, and monitoring a mobile advertising campaign. With mobile marketing analytics, it becomes possible to observe an individual based on their participation in various programs and social networks by monitoring such things as time, regularity and location among others.


To conclude, this paper presents several important reasons why businesses should you should think about adding mobile marketing into their integrated marketing and sales communications. The Six Elements Model shown in this paper should shed some light on advantages and distinguishing characteristics of mobile marketing.

Moreover, the tools and applications reviewed in the last chapters have huge probable. The most important benefit for mobile marketing comes from the use of spatial data. Mobile phones often leave a whole lot of traces or footprints and by merging such elements as time and geo-location as well as demographic data, the mobile mediums can become a powerful weapon in the marketer's arsenal. Therefore, marketers can acquire information predicated on years, gender, time, location, mobile carrier, and handset group, providing them with enough data to help them design powerful and intriguing promotions that deliver superior value as well as help them to meet their business goals and targets.

Furthermore, the entry barriers are nominal and companies no longer require vast levels of resources nor do they rely upon the power of the suppliers to deliver their communications. Instead, coupled with the internet, the mobile system has allowed businesses to incorporate forward into resource chain and assume more control. Thus, today mobile marketing should be common practice. However, a good amount of consideration must be made to regulate how mobile marketing integrates with overall brand images and marketing program.

Consumers have previously adopted the cellular phone and studies show that it has become a fundamental element of their daily lives. This should be a clear sign for marketers to hop on the bandwagon and become a member of the mobile activity. Consequently, the huge benefits and opportunities that customized and contextual mobile marketing communications have created are immense and will condition the future of marketing.

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