The scope of internet marketing in india marketing essay

The literature review has helped to consider in the present research work aspects like consumer privacy, consumer inclination, and personalization in the field of internet marketing. The research undertaken intends to study the phenomena related to the scope of internet marketing in India and the trends in internet marketing. Hence company and consumers are taken into consideration. The questionnaire was prepared for both the entity and the opinion on the questions were derived through personal interviews and through telephone and emails. The survey conducted involved consumers of different age, gender and were from different backgrounds. Based on the analysis of the data collected following are the highlights of the research work. Awareness about internet is important for the internet marketing. A respondent strongly agrees with the view that in present market scenario there is surely the scope of internet marketing and it is growing with rapid speed. The present study correlates the impact of junk traffic on the growth of internet marketing. The study reveals that most of the consumer respondents were found to deviate from internet marketing due to junk traffic. From the analysis it is clear that for selected products/services internet marketing is useful. The result indicates that all the respondents’ opinion was that the companies which adopt the route of internet marketing mostly focus to increase the reach in the market place and further to generate additional revenue. Internet marketing also helps the company to be at par with their competitors. The basic reason is to generate more and more revenue as well as reach large number of consumers by means of internet media. Majority of respondents strongly agreed on the user-friendliness of internet marketing. Comparing the traditional and internet marketing modes, an opinion on basic aspect like revenue generation was judged, so the study received varied opinions from companies and consumers. Another factor related to increase in revenue could be that the company may have strategy to region wise focus. Consumer and company respondents were strongly agreed that region wise focus surely increases the revenue. It was founded that almost all the respondents accepted the importance of branding and internet marketing largely helps to improve the brand image. The need to adapt to precautionary measures to minimize the fraud incidences was recorded by large number of respondents. Alike traditional marketing such fraud incidences are noticed in the field of internet marketing and hence the need to adopt precautionary measure even in internet marketing was expressed. The consumers strongly agree that though because of incidences of payment frauds even then the internet marketing will grow. Internet marketing has a great scope.


Today the trend in business and in government is towards globalization. Globalization is bringing various industries into one global marketplace. Marketing today is very different what it used to be few decades ago, and it’s because of the world’s economy and the development of fast and virtually free knowledge distribution and exchange. Traditional approaches to marketing have limitations as companies have lesser direct contacts with their customers. Globalization may not occur in a governmental sense for many years to come. So through the rapid spread of the internet a global culture has already begun to solidity. In today’s technology dependent world the internet is quickly becoming the backbone of our life. Thus the new concept of internet marketing has immerged. There is a prediction that till 2015 40% of the planet will be on internet. Internet marketing is business imperative because the internet is an irrevocable and unstoppable trend. Because of internet marketing consumers are becoming more homogeneous and passive. Internet marketing is a part of e-commerce . the success of any business strongly depends on internet marketing as well as e-commerce. Business requires both. Internet marketing uses the power of e-commerce. Ecommerce carries business transactions through various electronic mediums like internet, mobile, telephone, fax machines, Atm, credit card. Ecommerce looks from the shopkeeper’s perspective it tries to figure out how customers will search the product, who will buy it, what features, functionality and prices would customers accept. Internet marketing ties together the technical and creative aspect of internet. As early as 1993, it was just a tool used for emailing and data transfer . when internet was introduced not a single business house recognized the huge potential it had in store as a marketing tool. The best of the business units has declared it unfit for marketing purposes. Then in 1995 Netscape the ISP went public and bought the online world into prominence by exploring its commercial potential. The wide reach, cost effectiveness, capabilities to measure the spending, and easy accessibility made internet as the most feasible marketing tool, and the flood gate opened after that. There are different types of internet marketing methods and channels such as Affiliate Marketing, pay per click, pay per view, pay per lead, email marketing, viral marketing, interactive advertising, blog, and article based marketing, performance marketing, social media marketing etc. affiliate marketing includes banner advertisements. Companies are inventing new techniques to find better ways to generate revenue and also to establish their brand on the internet. Internet marketing works in three business models B2B. B2C, P2P. B2B deals with business to business transaction and revenue is being generated by internet advertising to both. B2C is direct interaction between company and the consumer. P2P is for distribution of videos and data but due to copyright problem p2p model has troubles. World internet population has doubled in last five years. In the year 2012 internet users worldwide reached 2. 27 billion. Exactly twice it was five years ago 1. 15 billion. The internet user population has been swelling rapidly. As the internet population grows, so does the potential size of online services. Asia not only has the largest internet population but thatis also growing the fastest by some margin. Asia’s internet population is now almost as large as the entire internet population was five years ago. Companies are increasing online marketing spending. The report by internet and mobile association of India says internet subscriber base in the country is expected to reach 150 million by the end of this year. There will be 105 urban users in India while the rural area will contribute 45 million subscribers. The figure No 1. 1 indicates the use of internet by various Asian countries. China tops among the Asian countries with 538 million internet users. With respect to India 137 million internet users and ranked at 2nd position among top ten internet user nations in Asia. C: UsersikiDesktopasia2012top. gif

Figure no -1. 1

The table No. 1. 1 shows the total Asian users of the internet. This table also shows the growth of internet users during last decades (from 2000 to 2012). among the internet users in Asia, China with 50% users of their total population is the highest followed by India.



( 2012 Est.)

Internet Users,

(Year 2000)

Internet Users



(% Population)


% Asia


30, 419, 9281, 000

1, 520, 996

5. 0 %0. 1 %


2, 970, 49530, 000

1, 800, 000

60. 6 %0. 2 %


9, 493, 60012, 000

4, 746, 800

50. 0 %0. 4 %


161, 083, 804100, 000

8, 054, 190

5. 0 %0. 7 %


716, 896500

150, 548

21. 0 %0. 0 %

Brunei Darussalam

408, 78630, 000

318, 900

78. 0 %0. 0 %


14, 952, 6656, 000

662, 840

4. 4 %0. 1 %

China *

1, 343, 239, 92322, 500, 000

538, 000, 000

40. 1 %50. 0 %


4, 570, 93420, 000

1, 300, 000

28. 4 %0. 1 %

Hong Kong *

7, 153, 5192, 283, 000

5, 329, 372

74. 5 %0. 5 %


1, 205, 073, 6125, 000, 000

137, 000, 000

11. 4 %11. 4 %


248, 645, 0082, 000, 000

55, 000, 000

22. 1 %5. 1 %


127, 368, 08847, 080, 000

101, 228, 736

79. 5 %9. 4 %


17, 522, 01070, 000

7, 884, 905

45. 0 %0. 7 %

Korea, North

24, 589, 122

Korea, South

48, 860, 50019, 040, 000

40, 329, 660

82. 5 %3. 7 %


5, 496, 73751, 600

2, 194, 400

39. 9 %0. 2 %


6, 586, 2666, 000

592, 764

9. 0 %0. 1 %

Macao *

578, 02560, 000

366, 510

63. 4 %0. 0 %


29, 179, 9523, 700, 000

17, 723, 000

60. 7 %1. 6 %


394, 4516, 000

134, 860

34. 2 %0. 0 %


3, 179, 99730, 000

635, 999

20. 0 %0. 1 %


54, 584, 6501, 000

534, 930

1. 0 %0. 0 %


29, 890, 68650, 000

2, 690, 162

9. 0 %0. 2 %


190, 291, 129133, 900

29, 128, 970

15. 3 %2. 7 %


103, 775, 0022, 000, 000

33, 600, 000

32. 4 %3. 1 %


5, 353, 4941, 200, 000

4, 015, 121

75. 0 %0. 4 %

Sri Lanka

21, 481, 334121, 500

3, 222, 200

15. 0 %0. 3 %


23, 234, 9366, 260, 000

17, 530, 000

75. 4 %1. 6 %


7, 768, 3852, 000

1, 012, 220

13. 0 %0. 1 %


67, 091, 0892, 300, 000

20, 100, 000

30. 0 %1. 9 %


1, 143, 6670

10, 293

0. 9 %0. 0 %


5, 054, 8282, 000

252, 741

5. 0 %0. 0 %


28, 394, 1807, 500

8, 575, 042

30. 2 %0. 8 %


91, 519, 289200, 000

31, 034, 900

33. 9 %2. 9 %

Internet users and population statistics of Asia

The internet user growth statistics







December, 1995

16 millions0. 4 %IDCDecember, 199636 millions0. 9 %IDCDecember, 199770 millions1. 7 %IDCDecember, 1998147 millions3. 6 %C. I. AlmanacDecember, 1999248 millions4. 1 %Nua Ltd. March, 2000304 millions5. 0 %Nua Ltd. July, 2000359 millions5. 9 %Nua Ltd. December, 2000361 millions5. 8 %Internet World StatsMarch, 2001458 millions7. 6 %Nua Ltd. June, 2001479 millions7. 9 %Nua Ltd. August, 2001513 millions8. 6 %Nua Ltd. April, 2002558 millions8. 6 %Internet World StatsJuly, 2002569 millions9. 1 %Internet World StatsSeptember, 2002587 millions9. 4 %Internet World StatsMarch, 2003608 millions9. 7 %Internet World StatsSeptember, 2003677 millions10. 6 %Internet World StatsOctober, 2003682 millions10. 7 %Internet World StatsDecember, 2003719 millions11. 1 %Internet World StatsFebruary, 2004745 millions11. 5 %Internet World StatsMay, 2004757 millions11. 7 %Internet World StatsOctober, 2004812 millions12. 7 %Internet World StatsDecember, 2004817 millions12. 7 %Internet World StatsMarch, 2005888 millions13. 9 %Internet World StatsJune, 2005938 millions14. 6 %Internet World StatsSeptember, 2005957 millions14. 9 %Internet World StatsNovember, 2005972 millions15. 2 %Internet World StatsDecember, 20051, 018 millions15. 7 %Internet World StatsMarch, 20061, 023 millions15. 7 %Internet World StatsJune, 20061, 043 millions16. 0 %Internet World StatsSept, 20061, 086 millions16. 7 %Internet World StatsDec, 20061, 093 millions16. 7 %Internet World StatsMar, 20071, 129 millions17. 2 %Internet World StatsJune, 20071, 173 millions17. 8 %Internet World StatsSept, 20071, 245 millions18. 9 %Internet World StatsDec, 20071, 319 millions20. 0 %Internet World StatsMar, 20081, 407 millions21. 1 %Internet World StatsJune, 20081, 463 millions21. 9 %Internet World StatsSept, 20081, 504 millions22. 5 %Internet World StatsDec, 20081, 574 millions23. 5 %Internet World StatsMar, 20091, 596 millions23. 8 %Internet World StatsJune, 20091, 669 millions24. 7 %Internet World StatsSept, 20091, 734 millions25. 6 %Internet World StatsDec, 20091, 802 millions26. 6 %Internet World StatsJune, 20101, 966 millions28. 7 %Internet World StatsSept, 20101, 971 millions28. 8 %Internet World StatsMar, 20112, 095 millions30. 2 %Internet World StatsJun, 20112, 110 millions30. 4 %Internet World StatsSept, 20112, 180 millions31. 5 %Internet World StatsDec, 20112, 267 millions32. 7 %Internet World StatsMar, 20122, 336 millions33. 3 %Internet World Stats

June, 2012

2, 405 millions

34. 3 %

Internet World Stats

Table No. 1. 2

Source: www. internetworldstats. com/stats3. htm#asia

From table no. 1. 2 it is observed that during 1995 to 2000 the growth of internet users in the world was 2256. 25%. however during 2001 to 2005 the growth of internet users was 222. 2% and during 2006 to 2010 the growth was 192. 6%. though the percentage growth of internet users has declined, however % of users with regard to total population has increased. In year 2000, of the total population only 5. 8% were the internet users but in year 2005, the percentage of users increased to 15. 7%. In the year 2010 of the total world population the percentage of internet users was 28. 7%. in the year 2012 the percentage of internet users were recorded 34. 3% of the world population.

Internet users in India

India is among top three fastest growing internet markets in the world. Among the Bric nations India has been the fastest growing market adding over 18 million internet users and annual growing rate of 41 percent. The internet user base in the country is approximately 125 million. Interestingly about 75%of online audience between the age group of 15-30. india is the youngest online demographic globally. Popular categories assessed online are social networking, portals, search, entertainment and news site. Out of approximate 125 million internet user base , the female population accounts for almost 40%. online travel has seen growth across all subcategories including car rental etc, online travel agents, airlines as well as hotels and travel information site. Retail penetration has increased to 60%and has grown to 37. 5 million unique visitors a month. The average transaction size online in India across travel and retail category is $31 between April – June 2012. This amount is set to increase with consumer confidence in buying high priced products in the coming years. Internet is drawing a fair number of eye balls, interest, conversation and investment. This leads to more and more carrier opportunities in this field. Internet marketing is a potent combination of technology and marketing acumen.

Literature review

2. 1 A Framework for Analyzing the Potential Benefits of Internet Marketing

The rapid development of online computing technology makes it imperative for companies to seriously consider the internet to avoid losing competitive advantage. It moves organizations beyond the physical constraints of their traditional distribution channels and creates a worldwide. This paper is focused on the use of internet as a virtual storefront where products are offered directly to customers. A website gives direct contact between the organization and consumers. Product characteristics play an important role in whether the organization may benefit from utilizing the web as a means of direct sales. Here advantages of internet marketing are recognized by the companies participating in internet marketing. The internet is very effective medium for accessing, communicating information, and organizing. Several unique characteristics of the internet regarding communication has been identified like (1) the ability to store huge amount of information that can be searched and distributed in cost-effective manner which can be accessible by everyone on the internet.(2) the ability to provide information on the demand. The internet can provide timely information to customers because of its ability for instant communication and its availability anytime. Greater reliance on internet communication usually results in lower-distance phone and fax costs. Another potential benefit of using the internet is the ability to gather information about your customer via surveys etc. Companies can design and personalize advertising for each customer through push technology, it helps with identifying prospect sales and relationship building and customer loyalty. Small companies that play in niche markets in which buyers and sellers and dispersed geographically, they can use the internet to reach a bigger customer base . the with the help of internet transaction processing can be easily done especially for complex orders by reducing paperwork, increasing efficiency replacing professional tasks hence reducing the transaction cost . online payment reduces the processing fees. This is especially good for SMEs. Online marketing offers more choices and at the same time it eliminates huge inventories, storage costs, utilities, space rental etc. Using the internet as distribution channel can reduce the delivery cost and it also ensures instant delivery of products. Angehrn proposed a generic framework the ICDT model for understanding the strategic implications of the internet. This model takes its name from the four virtual spaces of the internet are: a virtual information space, a virtual communication space, a virtual distribution space and a virtual transaction space. So the factors that may impact the performance of internet marketing are the firm current distribution structure and channel relationships, the size of the company, the promotion strategies, and the pricing structure. Source: Journal of Electronic Commerce Research, VOL. 2, NO. 4, 2001

2. 2 privacy issue on the internet

Chung W based on his study of new Zealand consumers has suggested that companies must have a privacy policy statements under their website. This policy assures customers that your information is safe here and will not be misused. These papers discuss argument for and against internet privacy concerns. Here author has made valuable contribution by providing solutions that can be used to protect privacy of users. Legislation, self regulation and technical solutions will protect consumer’s privacy. Consumer’s privacy is very important in internet marketing. Source: Chung W.; Paynter J, ” Privacy issues on the internet”, Journal: System Sciences, 2002. HICSS. Proceedings of the 35th Annual Hawaii International Conference, Pages 2501-2509, Provider IEEE, Year 2002.

2. 3 Influence on the intent to make internet purchases

George Joey F explains in this paper regarding the factors involved influencing the consumers behaviour in deciding whether to buy or not. Author has taken assistance of theory of planned behaviour to understand the consumer’s behaviour. It is known that intention, attitude and prior experience of consumers influence their buying behaviour. In this paper his focus is on privacy concerns . users feel confident only after they have made a few purchases. Some users are very conscious about their privacy so unless they are confident about the company they don’t make purchases. Urban glen gave various examples of how today people are purchasing automobiles. Customers get complete information about the automobiles which they want to purchase before visiting the showroom. Today customers are very open and aggressive they immediately say what they like and what they don’t like. After considering how consumers purchase its important to know their mindset of consumers involved in service usage. Kim D. J et al explains in his paper how online travel agencies are perceived by consumers. It states that lowest price was given first priority by consumers then security. Ease of navigation of the website is also important aspect. Consumers expect good support from website while online booking. They don’t want to waste time on navigation and all. They want very smooth navigation of the website. This factor attracts customers for using internet for booking and purchasing things. Source: Kim D. J, Kim W. J, Han J. S, ” A perceptual mapping of online travel agencies and preference attributes”, Journal: Tourism Management, Issn 02615177, Volume 28, Issue 2, Pages 591-603, Provider Elsevier, Year 2007.

2. 4 consumer interaction and role of personalization in internet marketing

Tianyong Wang et al in their publication provide information about the importance of interactivity and individualization in consumer decision making process. Interaction refers to different methods used by companies to establish communication between company and the consumers. Interaction mechanisms provided by companies are chat rooms, forums, and interactive platforms. A website can track a customer’s interests and make suggestions for the future. Many sites help customers make choices by organizing information and prioritizing it based on the individual’s liking. In some cases the product itself can be customized using a configuration system. Individualization refers to specialised information exchanged between company and consumer. This involves gathering specific information about consumers, their preferences and providing services they need. These factors are very important because of lack of touch and feel of the product is not in internet marketing. This Build trusts in the consumers mind about the product and company and thus drive internet marketing in a personalised fashion. Source: Tianyong Wang; Zhengliang Xu, Go Gao, ” The model of internet marketing program considering 21s”, Journal: Services Systems and Services Management, 2005. Proceedings of ICSSSM ’05, Volume 1, Pages 451-456, Publisher IEEE, Year 2005.

2. 5 Evaluation of the companies on the internet by consumers

Cheung Christy M K et al has done work on trying to understand how consumers trust has an impact on the internet shopping area. This paper focuses on the past approaches from a social and psychological perspective and then to draw conclusion is quite innovative. From this they found that consumers evaluate internet merchants based on integrity, competence through professional websites and security. Third party recognition plays an important role. For example any merchant could have an electronic seal from a third party which says that the site is secure. This builds trust in the minds of consumers. This attracts consumers to shop. Companies could offer a money back guarantee and they mention on their website guarantee rules for their products. Source: Cheung Christy M K; Lee Matthew K O, ” Understanding consumer trust in Internet shopping: A multidisciplinary approach”, Journal: Journal of the American Society for Information Science and Technology”, Issn 15322882, Volume 57, Issue 4, Pages 479-492, Year 2006.

2. 6 Factors preventing consumers from indulging in internet marketing

Liebermann yehoshua et al has identified some of the key factors which prevent users from participating in the internet. The factors identified are internet credit card stealing, fear of disclosing personal information, pornography and violence, huge internet advertising, information reliability, lack of physical contact, not receiving internet products that purchased. The important contribution of this study is demographics traits such as gender, young, married/unmarried, high/low education and also considered usage behaviour etc. The conclusion is consumers consider credit card stealing and fear of supplying personal information as risky. Source: Liebermann Yehoshua; Stashevsky Shmuel, ” Perceived risks as barriers to Internet and e-commerce usage”, Issn 13522752, Volume 5, Issue 4, Pages 291-300, Provider Proquest, Year 2002.

2. 7 Drivers for internet marketing

Maria bengtson et al provided valuable information in this paper regarding what are the factors that would derive companies to adapt to internet marketing. Her study is based on a survey conducted in various Swedish companies of different sizes. The study states that different factors drive companies of different size to adopt internet marketing. The drivers are willingness to cannibalize, entrepreneurial drivers, management support and market pressure. Here which of these factors drive what size of firms? The drivers are such as willingness to cannibalize, entrepreneurial drivers, management support and market pressure. In addition to this the study also pointed out which of these factors drive what size of firms. Besides considering the number of employees as the only criteria for categorizing companies by size the author has also taken into account the turnover and profit of the Company. Source: Maria Bengtsson, Hakan boter, Vladimir vanyushyn, ” Integrating the Internet and Marketing Operations”, Journal: International Small Business Journal, Issn 02662426, Volume 25, Issue 1, Pages 27, Provider Proquest, Year 2007.

2. 8 Marketing channel preference

Jaeki song et al in his paper compares regarding the company’s motivation to choose between internet channel and traditional channel. Web can be a serious alternative to traditional marketing. Discounts by internet companies could be one of the important factors which attract the consumer. Various factors liking market access, price information, and competition and pricing policies have been used to compare the company’s motivation to choose between both the channels. But internet issues like security and fraudulent practises are not included in this study. The main findings are that the internet offers consumers better prices better discounts. Source: Jaeki Song, Zahedi F. M, ” Internet market strategies: Antecedents and implications”, Journal: Information and Management, Issn 03787206, Volume 43, Issue 2, Pages 222-238, Provider Elsevier, Year 2006.

2. 9 Effects of consumer gender differences on internet purchases

Chu Yu Bin et al has discussed in his work how gender perceives internet marketing. Female consumers tend to give lower evaluation than males on the effortless of online purchases. So user friendliness is very important so company should focus on this. The study shows that online community based on gender and hobbies should be established nicely to improve the ease of purchasing. Companies should treat consumers differently based on gender in order to win business. Companies should always respond to the enquiries, which would strengthen the attitude and purchase intention especially for the male customers. Some of the gender based findings are as follows: improving the usage speed of the site is a driver for males to do shopping. They purchase when they are confident about their security of information then only they purchase. This paper shows that females use word of mouth to help other females to overcome the barrier in online shopping. This study shows that factors such as importance of consumer privacy, consumer’s preference in selection of internet services, building consumer trust on company gender differences etc. largely affects internet marketing. Consumer’s protection of privacy and trust is the most important factor for consumers to indulge in internet marketing and without these two factors internet marketing scope is nothing it can’t grow. Similarly the online store that is especially targeted for only ladies should be handled properly. Source: Chiu Yu-Bin; Lin Chieh-Peng; Tang Ling-Lang, ” Gender differs: assessing a model of online purchase intentions in e-tail service”, Issn 09564233, Volume 16, Issue 5, Pages 416-435, Provider Proquest, Year 2005.

2. 10 Effects on environment

Chen et al says that internet marketing brings green atmosphere by saving fuel consumption needed for regular purchase. Internet marketing promotes paper less offices and saves space and brings about energy saving by preventing kiosk displays. It promotes easy shopping of commodities which would be difficult in traditional sales. In this paper author has not considered any factor about what are factors that are forcing company to use paperless office whether it is cost saving or not or it is only the decision to protect the environment for a social cause or other factors such as market pressure from other companies who are in this field. Source: Chen, Christine Y, Lindsay, Greg, ” Will Amazon(. com) Save the Amazon?”, Journal: Fortune, Issn 00158259, Volume 141, Issue 6, Pages 224-225, Provider Ebsco, Year 2000.

2. 11 Catering to consumer interest

Urban glen has emphasized in his paper that companies should act as advocates in promoting customers interest if they have win and retain customers and earn maximum profit out of it. In authors words ” when company advocates for its consumers will in turn advocate for their own company.” Author has given many examples ranging from consumers product to high value industrial products and services to prove how various company adopt techniques to satisfy consumer interest. There is nothing about the cost factor involved which affects the company’s bottom line. Source: Urban Glen, ” Giving Voice To The Customer”, Journal Optimize, Issn 15372308, Volume 5 Issue 1, Pages 24-29, 10, Provider Proquest, Year 2006. From literature review it is clear that mostly studies are focused to find the facts on what companies have focused on in order to be successful in internet marketing. Mostly studies have discussed regarding what are the drivers for internet marketing and various marketing channels and preferences and how companies can be successful if their approach is customer centric. Companies should focus on security aspects. Many times companies are not aware of security risks and may face some problems . hence companies must take efforts to have sufficient knowledge about security related issues before entering into internet marketing.

Research Methodology

3. 1 TITLE

A Study of the Scope of Internet Marketing in India.


To study the role of internet marketing in Indian scenario. To study the recent trends in the field of internet marketing. To identify various reasons and schemes that affecting the growth of internet marketing in India. To study the opinions of consumer and the company with regard to the growth of internet marketing.

Research Questions

Why Online marketing in India is yet to evolve? How the various characteristics of internet marketing help corporate to increase the gross sales? What are the factors preventing consumers from indulging in internet marketing? How the growth of internet marketing is related to the increase in usage of internet? What are the factors influencing consumer intention to watch online ads?

Scope and limitations

In today’s era of dynamic marketing it is found that internet marketing is gradually increasing with the significant increase in the use of internet. The scope of the present research was confined to study the opinion of consumers, company with regards to aspects related to the scope of internet marketing in India. The behavioural approach of the consumers especially their attitude in using of internet marketing and their inclination towards internet marketing was taken into account. The research work is confined only to the respondents from few cities. Based on the survey and analysis the general overview is taken with regard to the scope of internet marketing in India. During this research most of the company respondents were not able to give the exact information. The prevailing trend is beyond in internet marketing in India was considered and hence the study of the global trend is beyond the scope of this research.

Research methodology

The methodology applied in the present study is quantitative as well as descriptive in nature. To study the influence of the use of the internet and the impact of the internet marketing it was decided to record opinions on various aspects related to the scope of internet marketing. Hence the two important entities were taken into account were consumers and company. The survey carried out was based on a questionnaire that was prepared separately for company and consumers. The input received was analyzed and tables were prepared. Tabulation was used to calculate the percentage responses which were helpful to draw the inferences. For carrying out the survey non probability sampling method was used and sampling size of 500 consumers was decided. The consumers from major cities were contacted either in person or through telephonic and email modes. Similarly to choose company respondents, the criterion was used that the company executive should be from a company using internet marketing . All the respondents were contacted and responses was gathered and then analysed. Responses were tabulated and analysed. The conclusions were represented in tables and also few aspects the graphical representation is made.

Source of secondary data


Data collection

In the present research work, the study of internet marketing mainly comprises of a consumer and company perspective. Nowadays the modern marketing techniques are used and trends are also changing. So the focus was to know the recent trends in the emerging field of internet marketing. Two survey questionnaires were designed separate for consumers and company respondents. Information was gathered by using the following methods during the survey.

Sr. No.


Methods used

1consumerFace to face , email, telephone2companyFace to face , email, telephone

Table 4. 1

4. 1. 1 Design of survey questions

Two survey questionnaires were designed separately for company and consumers. The question was designed taking into consideration the objectives of the study and moreover with the aim that the respondent will be able to answer each question. In the questionnaire most of the questions had multiple choice answers. For some questions the respondents had to rank their preferences. Especially for preference ranking, the questions were related to know the attitude towards the use of internet marketing by the company, reasons for the growth of internet marketing.

4. 2. 2 Data collection


The sample size of 500 consumers with different age group was taken. Of the total sample of 500 consumers, about 70%of responses were face to face i. e. by contacting them personally, about 10 % were contacted on telephone and 20% by means of online or email.


The sample size of 100 companies was targeted. Of these 100 companies, 50% from service sector, 30%of companies were from manufacturing sector, 10% from IT sector, 5% from educational sector and 5% from educational sector.

Data interpretation and Analysis

As mentioned previously the data was collected by using survey method i. e. contacts with respondents either in person or through telephone or through email/online. The questionnaire consists of 36 questions. The questions are for company and consumers.

Method for analysis

Analysis was based on liker scale system. For each question multiple choice answers were given so that the respondents can record their opinions. The opinion of respondents i. e. consumer, company for each question was considered and further the percentage was calculated. The percentage recorded towards each questions were presented in graphical form. It helped to state the inferences. Considering the survey undertaken it was felt to study or to basically know certain aspects related to the respondents. These aspects were gender, occupation income level.

Table no. 5. 1

Male and female respondents


Male Respondents (%)

Female Respondents (%)







It was observed that table no 5. 1 that of total 500 consumers, 48%were male consumers and 52% were female. With regard to the company 67% were male respondents and 33% were male respondents.

Table no. 5. 2

Occupational category of consumer Respaondents


Male Respondents (%)

Female Respondents (%)

Self employed









Home maker





It was observed from the above table no 5. 3 that of the total 500 consumers 48% of male consumers and 52 % of female consumers, 23% male were self employed, and 28% female were self employed. 57% male and 42% female were professional, 11% male and 18% female were student. Only 5% were homemaker female . in others 9%male and 7% female were recorded.

Table no. 5. 3

Annual income level of Consumer Respondents

Annual income level per month

Male Respondents (%)

Female Respondents (%)

Less than 50, 000 Rs.


50, 000 Rs to 75, 000 Rs


75, 000 Rs to 100, 000 Rs.


100, 000 Rs to 125, 000 Rs


Above 125, 000 Rs

10It was observed that maximum number of respondents had there annual income less than 50, 000. 74%male and 88%female had less than 50, 000 income. 13% male and 12% female had 50-75000 income. 6% male only were 75000-1 lakh income. 6% had i lakh to one lakh twenty five thousand. above 1, 25, 000 only 1 % male had annual income.

Table no. 5. 4

Geographical area of consumers

Geographical area

Male Respondents (%)

Female Respondents (%)



Semi urban





3842It was observed that 40% of male and 33% of female consumers were from urban areas. 21% of male and 19 % female consumers were from semi-urban areas. 11% male and 6% female consumers were from rural areas and second highest number of consumers were from metro citities. 38% male and 42 % female were from metro cities. Urban consumers were maximum respondents.

Table no. 5. 5

Medium of using internet

Medium of using internet









It was observed that use internet through mobile was the maximum. 58%male and 37% female were using internet through mobile. 42% male and 63% female were using internet through computer.

Table no. 5. 6

Purpose of using internet

It was observed that 40% of male and 31% of female uses internet to chat. 23% male and 27%Female use internet for playing games. 11%male and 19% female buy online through internet. 12% male and 3% female book tickets through internet. So the maximum people chat with the help of internet with each other. Online purchasing is also done by the people.

Table no. 5. 7

Frequency of using internet by consumers

The frequency of using internet by consumers maximum was recorded always. So it means they use internet always. 43%male and 48%female use internet always. 32%male and 17%female use internet once in a month. 9%male and 14%female use internet once in a week. 16% male and 21% female use internet very often. So scope of internet marketing is very high because people use internet always.

Table no. 5. 8

Characteristics of internet marketing

Here rating was done to find out which characteristic of internet marketing attracts consumers a lot. So according to them through internet marketing they compare different brands of product easily then it’s very time saving also then variety of products people get from internet. Instant feedback also they get. So overall for them internet marketing is very useful.

Table no. 5. 9

Website clicked the most by Users

It was observed that you tube was clicked mostly by the consumers. 69% of consumers click on you tube the most. Then 12% of users click on songs. pk. 8% of users use blogger 4% bigadda. com, 2%flickr. com, and 5% bharatstudent. com. so the most attractive website for consumers is YouTube . com.

Table no. 5. 10

Information that helps consumers to decide which product to buy





PRODUCT DESCRIPTION7111526THE PRICE OF THE PRODUCT15263312RATINGS AND REVIEWS FROM OTHER USERS25173416PURCHASE RECOMMENDATIONS BASED ON THE OPINION OF OTHER USERS2112412PURCHASE RECOMMENDATIONS BASED ON THE OPINION OF PURCHASER17142015PHOTOS11281614OTHER47231012Information that helps consumers to decide which product to buy on internet is the description about the various products. Mostly people like to buy online because there product description is given completely. 41%consumers says product description helps them to decide which product to buy and which not. Then 34% likes purchase recommendation based on the opinion of purchaser is available on the internet they read their opinions of using that product then decide to buy which product.

Table no. 5. 11

Factors stops to make online purchase

It was observed that 68% of consumers feel sceptical while purchasing unique or expensive product that’s why they avoid online purchase. 18% people suffers from lack of feel and touch of a product. 10% afraid of discrepancies’ of purchased products.

Table no. 5. 12

Importance of features of shopping online

It was observed that cash on delivery, deals and discounts, layout, free shipping are the most attractive features of internet marketing which attracts to make purchase online. Around 60% consumers rated layout the most. Then cash on delivery around 58%. free shipping is also the attraction point of the consumers.

Table no. 5. 13

Monthly expense on online purchase

It was observed that 44%female and 22%male spend below Rs. 1000 monthly on making online purchase. 37%male and 31% female spend below 1 thousand to 2 thousand. 25%male and 21% female spend 2 thousand to 3 thousand. 16% male and 4% female above 3000. So spending monthly on online purchase is very less.

Survey responses from company respondents

Table no. 5. 14

Internet awareness for the growth of internet marketing

It was observed that 68% of company respondents strongly agree that awareness of internet is very important for growth of internet marketing. 18% agree that it is important. 8%disagree and 6% strongly disagree with this. The majority of respondents accepted that awareness of internet is very important for growth of internet marketing.

Table no. 5. 15

Reasons for using internet as important marketing tool

It was recorded that wider reach is the most important factor for company to use internet as a important marketing tool. 67% company respondents said wider reach the reason to prefer internet. 46% said additional revenue is the reason. 41% said to counter market pressure. And only 22% said it is a part of their management policy.

Table no. 5. 16

Most effective type of internet marketing

It was observed that 68% of respondents rated blog marketing the most important type of internet marketing. Search engine marketing was rated 59%. email marketing was 51%.

Table 5. 17

Reason for the growth of internet marketing

It was observed that around 49% respondents says the reason of internet marketing growing because of internet and mobile users are increasing. thn 43% respondents says the cost of traditional marketing is increasing because of that only internet market is growing.

Table no. 5. 18

Improve the brand image

It was observed from the survey that 69% of company respondents strongly agree that internet marketing improves the brand image of the company. Only 9% of respondents only strongly disagree from this point. So overall it improves the brand image of the company.

Table no. 5. 19

Click fraud stops company to use internet marketing

It was observed that around 72% company respondents think that click fraud stops company to use internet marketing, because it destroy the image of the company. And only 5% strongly disagree from this . so it is very important to cure this click fraud disease.

Table no. 5. 20

Internet marketing based on gender differences to increase turnover

It was observed that 55% of respondents strongly agree that gender differences are very important to increase the turnover. 35% respondents agree with this. And 5% strongly disagree with this.

Table no. 5. 21

3rd party internet marketing is better or company running own campaign

It was observed that 69% strongly agree that 3rd party marketing is better than company running on its own. Only 2% strongly disagree with this. So it’s good to take help from 3rd party for internet marketing.

Table no. 5. 22

3rd party junk traffic negative impact on internet marketing

Most of the company respondents think that junk traffic effects the internet marketing. 79% of respondents strongly agrees that junk traffic is harming internet marketing and only 1% people think it’s not the matter.

Table no. 5. 23

Internet marketing less channel focus

It was observed that respondents with 57 % strongly agrees that internet marketing is less channel focus, whereas 35% were agree on this, 8% were disagree.

Table no. 5. 24

Revenue gained through internet marketing is higher than traditional

45% of respondents strongly agree that revenue gained through internet marketing is higher than traditional marketing. 32%agreed on this, 11% disagree from this. So conclusion is more revenue is gained through internet marketing.

Table no. 5. 25

Your company invest more on internet marketing

It was observed that company respondents strongly agree that more investment is done in internet marketing by their company. 35%strongly agree, 45% agree and 15% disagree means they don’t invest more on internet marketing.

Table no. 5. 26

Whether industrial/consumer product internet marketing used successful

Most of the respondents around 49% strongly agree that both for industrial and consumer products internet marketing is useful. 45%peole agree and 9%disagree and only 1% strongly disagree.

Table no. 5. 27

Traditional more flexible than internet marketing

It was observed that 59% people strongly agree on the basis of flexibility traditional marketing is more flexible. Only 35% agree with this and only2% disagrees. So, in their opinion traditional marketing is more flexible than internet marketing.

Table no. 5. 28

In spite of payment frauds internet marketing will grow

It was observed that respondents strongly agreed that in spite these security frauds internet marketing will grow. Around 69% strongly agrees, 32%agree, 2%disagree with this. So the conclusion is it will grow in spite of these payment frauds.


Almost all the respondents agree that the increase in use of internet has resulted for the increase in the growth of internet marketing. So because of the increase in use of internet it is largely observed that consumer’s inclination to have access towards internet marketing is increasing. In the study of total consumer respondents there were 48%male and 52%female. of the total male consumers’ respondents 11% and among female 18% were students pursuing their studies and because of this it incorporated the views of student community regarding the recent trends in internet marketing. Though gender differentiation among respondents was not the aspect of study, in spite of this gender wise there was remarkable difference with respect to company respondents. Of the total company executive respondents 33% were female. Of the total working respondents among the consumers the average range of annual income ranged from less than 50, 000. All the respondents agree that awareness of internet and internet marketing is necessary for the growth of internet marketing. More than 80% consumers strongly agree that awareness of internet leads for the growth of internet marketing. With regard to the presence of flexibility aspect in either traditional or internet marketing contrast opinion was found. Nearly 69% company respondents agree that internet marketing is more flexible than traditional marketing. Purchase made by female consumers in India is especially based on feel and touch of the products. Though internet marketing happens to be one of the factors for increasing the revenue generation. However the presence of junk traffic results for negative impact on the growth of internet marketing this negativity was judged by more than 79% of all respondents. Consumers suggest company and 3rd party agency must avoid at least minimize junk traffic and if it is not controlled then it may restrict the growth of internet marketing. Regard to various reasons to use the internet marketing by the company the main reason to adopt internet marketing by them to gain wider reach to their product/services. According to 79% respondents the second reason to use internet marketing by the producer could be to generate more revenue. The other reason was such as to counter market pressure in the market and the adoption of internet marketing was the decision as per management policy. Regarding the success of Internet marketing irrespective of product/service it was found that mostly respondents agree that the internet marketing will be successful only for selected products and services. About 69 % or more respondents from company agree that the internet marketing improves the brand image of the company as well as of product or both. Though this is a new concept still people don’t agree with this new concept in India. In India people have touch and feel habit so people don’t agree with this. Company feels that the incidences of frauds are very less even then 69% of respondents feel that incidences of click fraud would certainly affect and hamper the growth of internet marketing. In spite of fraud cases respondents believe that internet marketing will grow. Among various schemes i. e. marketing techniques in internet marketing, search engine marketing was found to be one of the most successful marketing technique followed by schemes like email marketing, video marketing, blog marketing and so on. Besides the above findings there is certain fact which also needs to be mentioned as the facts are related to the field of internet marketing. Today it is viewed that sponsored links in search engines are maximum and this is followed by email marketing. Viral marketing have minimum viewership and it is least clicked. According to the data available (refer table no. 1. 1) the use of internet in Asian countries has increased manifold. In India the increase is almost 18 times. One will certainly agree that there is significant growth of internet marketing in various regions as there is easy accessibility towards internet. Finally to conclude the findings of the research work it can be noted that the scope of internet marketing is certainly a great experienced by almost all the respondents. Most of the respondents have judged the importance of internet marketing and commented that internet marketing has great scope in India and it will generate more revenue for companies. Most of the respondents agree that internet marketing will be successful in coming days. Internet marketing is very interactive field of making money online.