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A
PROJECT REPORT
ONSubmitted for the partial fulfillment of the requirement of Paper
BBRP- 601 for the degree of
BACHELOR OF BUSINESS ADMINISTRATION (BBA)
SESSION 2008-2011
Under the guidance of: SUBMITTED BY:
Mrs. RUCHIKASHARMA Ankush Sharma
Lecturer (MMIM) Roll No. 1208006
MM UNIVERSITY BBA- 6th Sem.
SUBMITTED TO
MAHARISHI MARKANDESHWAR INSTITUTE OF
MANAGEMENT (M.M.U) MULLANA (Ambala)
HARAYANA 133203 INDIA
DECLARATION
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I hereby declare that the dissertation entitled Permission Marketing: An
Analysis of Indian Market submitted for the degree of Bachelors of
Business Administration (BBA) is my original work and the dissertation
has not formed the basis of award of any degree, diploma, associate ship,
fellowship or similar other titles. It has not been submitted to any other
University or Institution for the award of any degree or diploma.
Date Ankush Sharma
Place 1208006
CERTIFICATE
Certified that the research project entitled PERMISSION MARKETING:
AN ANALYSIS OF INDIAN MARKET as per my knowledge is an
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original piece of research work done by Mr. Ankush Sharma, Roll No.
1208006 during the period of his study under my guidance for the award of
the Bachelors of Business Administration (BBA) degree
Date: Mrs. Ruchika Sharma
Place
Designation
ACKNOWLEDGEMENT
Gratitude is not a thing of expression; it is more a matter of feeling.
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There is always a sense of gratitude which one express for others for
their help and supervision in achieving the goals. I too express my deep
gratitude to each and every one who has been helpful to me in completing
the project report successfully.
First, of all, I am highly thankful to Dr. Amit Mittal, Principal, M.M.
Institute of Management for allowing me to pursue my Project Report on
PERMISSION MARKETING: AN ANALYSIS OF INDIAN
MARKET.
I give my regards and sincere thanks to Mrs. Ruchika Sharma who has
devoted his precious time in guiding me and helping me it with in time. I
feel self-short of words to thanks my parents and friends who had directly or
indirectly instrumental in the completion of the project.
Ankush Sharma
EXECUTIVE SUMMARY
Permission Marketing is an approach where marketers obtain permission
from consumers before progressing to the step of buying. As the Indian
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market is a competitive market and where marketers are trying to attract
more and more customers , here Permission marketing act as a best tool in
making the relations with their and customers and maintaining it for a long
term.
Our goal in this paper is threefold:-
First, a critical analysis of the concept of permission marketing and its
relationship to existing ideas in the marketing literature is provided.
Secondly, its current position in the Indian market, and
Thirdly it tells about the facts the further scope of Permission Marketing in
the Indian market.
Secondary data is collected for the research purpose and there data is
collected from books, websites, journals and articles. The research is totally
exploratory in nature and convenience sampling method is used to collect
the data.The Summary Report proposes the scope of permission marketing
in the current and in the future scenario that is grounded in the findings of
the study.
TABLE OF CONTENTS
Chapters Title Page No.
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1. Introduction
2. Review of
Literature
3. Research
Methodology
Declaration
Certificate
Acknowledgement
Executive Summary
1.1 Meaning
1.2 Features of Permission Marketing
1.3 Channels of Permission
Marketing
3.1 Selection of the Topic
3.2 Objective of the study
3.3 Nature of the Study
3.4 Methods of Data collection
3.5 Analysis and interpretation of the
data
3.6 Scope of the study
3.7 Significance of the study
3.8 Limitations of the study
II
III
IV
V
1-4
4-5
6-13
14-18
19-23
20
20
20-21
21
21-22
22
23
23
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4. Latest
Developments in
the Topic
5. Analysis and
interpretation
6. Findings and
conclusion
7. Suggestions and
recommendations
Annexure(s)
5.1 Current Scenario of Permission
Marketing in India
5.2 Scope of the project
Bibliography
24-25
26-49
50-51
52-53
54-58
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Chapter 1
INTRODUCTION
1.1 PERMISSION MARKETING
Permission marketing is a term coined by Seth Godin used in marketing in
general and e-marketing specifically. Permission marketing is also called
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invitational marketing. Seth Godin was the Vice President of Direct
Marketing at Yahoo in his book of the same name, recently translated into
Spanish ("Permission Marketing", Ed Granica, 2001), and is a concept truly
original and which fits with the philosophy of Customer Relationship
Management (CRM), . It's trying to maintain a relationship with the clients
that allow a Firm to obtain a particular permission level, which resulted in a
win-win development parties. This is more or less possible depending on the
type of product or service, the intensity of the relationship, perception of
value, etc., but what is clear is that is necessarily a long-term orientation,
which is separated enough from the marketing prevailing at the moment.
He also founded Yoyo dyne, the company who invented Permission
Marketing via e-mail. So why has his work in those companies led him to
coin the term Permission Marketing?
In Godins words, Permission Marketing is an approach where marketers
obtain permission from consumers before progressing to the step of buying.
The ones who have checked boxes in email replies to receive information on
special offers, they have definitely come across Permission Marketing.
Readers are first introduced to the concept of Interruption Marketing, the
traditional way of getting consumer attention. This commonly practiced
marketing approach is based on huge advertising budgets, and is all about
capturing consumers attention. All these generate what is seen and hear
today on the television, radio and newspapers. They are termed as clutter.
The undesirable opposite of permission marketing is interruption marketing.
Marketers obtain permission before advancing to the next step in the
purchasing process. This form of marketing requires that the prospective
customer has either given explicit permission for the marketer to send their
promotional message (e.g. an email or catalog request) or implicit9 | P a g e
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permission (e.g. querying a search engine). This can be either via an online
email opt-in form or by using search engines, which implies a request for
information which can include that of a commercial nature.
Permission marketing means any marketing communications that offer opt-
in or opt-out opportunities to recipients so that further marketing
communications are only received by those who wish to receive future e-
mails (Pickton and Broderick, 2005, p. 144).Its purpose is to reduce
unwanted commercial messages online and it has become standard practice
of interactive marketers. Permission marketing has brought a solution to the
problem of electronic message clutter spam, which means customers need to
give permission for the company to send e-mail messages to them (Cross,
2003) Permission e-mails can take the form of newsletters, or a checkbox in
the registration process on various websites giving the marketer permission
to deliver product updates or other marketing information to the consumer.
These e-mails have higher success rates than spam, both in terms of ROI and
in preserving a company's reputation (Davis, 2002). Permission e-mail cantake the form of acquisition or retention e-mail which means mailings whose
primary objective is to prospect for customers or whose objective is to forge
a relationship with an existing customer base (Davis, 2002). The weakness
of permission marketing is it does not provide full protection for the privacy
consumers want to maintain, nor it does give the full benefits marketers
want. The debate is about the choice for consumers to opt-in or opt-out of
communications started by the company and giving their contact information
to third parties (Cross, 2003). Opt-in means signing up for the companys
database to receive promotional e-mails and discounts about product or
service customer is seeking. The customer has also the option to opt-out,
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which means the client has the choice to remove their address from the
companys e-mail list, which leaves the decision for the customer whether
they want to receive more similar messages. (Macpherson, 2001, p. 14-15).
1.2 FEATURES OF PERMISSION MARKETING
1. Create Powerful Communications in Minutes
Wizard and eye-catching templates make it easy for on to create and
send professional electronic communications - no technical or design
expertise required. For pros, the advanced email editor lets the
customer easily use their own custom designs.
2. Build Email List
Your customer and prospect list is one of your most valuable assets.
Build it and keep it up-to-date with Constant Contact. Easily import
the existing permission-based customer and prospect lists and grow
the email list by adding a visitor signup to companys website.
3. See Campaign Results
To Learn how effective the email campaigns are, and use that
information to improve the results. See who opened email and who
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clicked on each link - real-time as clicks happen. And, compare the
results with those of other small businesses.
4. Manage Subscribers and their Lists
Constant Contact does all the heavy lifting. From our unlimited list
categories, to real-time bounce management and our Safe
Unsubscribe feature, permission marketing makes it easy to
manage email lists of all sizes.
5. Delivering the Emails
Customers rely on Constant Contact to get their email delivered.
Permission Marketing handles all the details - from formatting the
emails to ensuring the highest email deliverability.
1.3 CHANNELS OF PERMISSION MARKETING
1.3.1 SMS (Short Message Service)
1.3.2 Websites
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1.3.3 E-mail
1.3.1 SMS (Short Message Service):-
A significant addition to the increasing list of communication carriers is
that of SMS, Short Messaging Service. SMS has become the fastest,
easiest and the most convenient way to communicate today. For reasons
personal or professional, SMS works across purposes. The most recent
application of SMS has been to reach out to the consumer offering him
products and services just as any of the other mass media would. Be it in
the form of promotions or advertising or even sales, the functionality of
SMS usage is crossing all barriers.
Here is a list of the SMS websites in Permission Marketing:
1. M- Ginger
2. SMS2.0
3. 160by2.com
4. WAY2SMS
M-Ginger(Make Money, while your mobile beeps!):
Recently launched service, mGinger pays users
to receive ads on their mobile. Users, after
registering to the site, need to specify their
interest and start receiving relevant ads Where is
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the money then? Well, for every ad that they receive, the user earns 20 paise
and 10 paisa for referring their friends (no wonder why all of yahoo groups
are being spammed with such emails). Once you accumulate Rs. 300/, you
will receive a cheque; and as per this date, highest single earning has been
Rs. 99.40 (i.e. 497 ads!!). [Free VAS, if you say 'yes' to ads]
SMS 2.0:
Pretty much on the lines of freemiumfree mantra, i.e. give away the basic
service for free, charge for the premium ones; and again, make the premium
free (supported by ads).Launched by Bharati Airtel and Apple partnership
(currently offered in Delhi region only), SMS2.0 platform enables free
delivery of news headlines, movie trailers and promotions. When a
subscriber turns on the mobile phone, SMS 2.0 is launched by default, but
the handset can still be used in the same way when sending or receiving text
messages. At the bottom of the mobile phones screen is an array of contentbanners from news to astrology, travel and video that the user can
choose from if he or she wants to do more than just sending or receiving an
SMS. With this feature a user can key in a word or phrase just like
composing an SMS message, click Search instead of Send, and be directed
to a search engine such as Google or Yahoo. SMS2.0 is a win-win situation
for end users as well as operators The character (less)fight One of the
concerns with the above mentioned service is that they dont rely on the
existing usage of the user (and arent really a as-you-use kind of a service).
You need to change your usage behavior to use services like mGinger or
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SMS2.0. But, following companies have taken a radically different approach
with respect to permission marketing
160by2.com
Using 160by2, one can send free sms to any mobile
number in India, the only constraint being the 80
characters usage, i.e. one cannot send messages more
than 80 characters in the length (since the next 80
characters will be utilized by advertisers for delivering
contextual ads). The good thing about 160by2 is its amazing UI and theclean interface. Its a delight (and a possible case study) for any designer.
The overall experience is really awesome, compared to the other services.
WAY2SMS
Quite similar to 160by2, way2sms also provides
free text messaging absolutely free of cost (except
that they allow 92 characters of message and the
rest is used for ads). Way2SMS has a wider reach
and boasts of a million user base. really appreciating feature about 160by2
and way2sms s approach is that apart from delivering ads, they are also
providing a great service for free, i.e. sending free SMS across the country!
1.3.2 Websites:-
Today everyone knows about websites. Websites are the best examples of
the Permission marketing. For login into a web site, and e-mail id is required
to know about the features of the company about the website, and about their
products. So in this case users create an e-mail id. While creating the e-mail
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id the user fills the information and click on submit and mark I agree
checkbox, it means the user have given the permission to the owner of that
website to use his information to contact him or telling him about the
products.
Here the marketer ask for the permission by redirecting the user to login
page and making e-mail id and the customer is giving the permission by
making e-mail id and submit the information by accepting all the terms and
conditions of the company.
1.3.2.1 Permission Marketing and the Web
Because the companies can easily interact in real time with prospects and
clients, the Web is ideal for building one-to-one client relationships. If they
consistently identify what their clients want and notify them that they can
meet their needs, they can turn those Web site visitors and one-time
customers into loyal long-term clients. The key to one-to-one marketing on
the Web is effective use of permission marketing getting the potential clientsto volunteer their attention?
Opt-in e-mail, online communities, electronic newsletters, and Web-based
client support services are powerful tools for one-to-one marketing, but only
if the companies have the permission and participation of the prospects and
clients.
The first step is to figure out the characteristics of prospects that would be
most able, willing, and ready to buy, often using online forms to gather the
information. Once the target market is defines, they target their sales and
service messages based on the demographics and interests of the individual.
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The delivery may be in the form of special Web page content or a targeted
newsletter or an e-mail offer. Why would a prospect or customer supply you
with the information you need to make one-to-one marketing on the Web
work for you?
The answer: value and trust.
Value
Does the offer meet your prospect's needs? Whether its customer support on
the Web site or a new product offering sent via e-mail, it must have value to
the prospect or customer. Keep in mind that the target audience is
continually barraged with barely meaningful banner ads, Web sites, and e-
mail that compete for their attention. The offer must stand out from all the
competition by offering value to the recipient. Otherwise it simply goes in
the trash and relationship has come to a dead end.
Trust
Target audience trusts you to:
1. Adhere to privacy policy.
2. Not sell their information if they haven't given permission to do so.
3. Avoid offers and communications that are too frequent, too loud, too
long, and too insistent.
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4. Be honest.
5. Nurture the relationship and interact with them, providing
information, education, and products and services of value.
6. Provide the option to opt out of the promotional activities.
As they build relationships their with customers and prospects, they'll
provide more and more information that can use to be of better service to
them. Developing and sustaining one-to-one relationships is an ongoing
process. As one learn more about their customers, more he can serve them
better, make inroads for maintaining profitable, loyal, one-to-one
relationships resulting in increased business. Implementing an effective
program of permission marketing on the Web is a step in the right direction.
1.3.4 E- mail:-
Email marketing is one of the most effective weapons in a small business
owner's arsenal. It allows you to market to large numbers of potential
customers for a fraction of the cost of traditional direct mail. However,
there's a fine line between sending effective email messages and spamming
your client base.
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Whether you buy, rent, or compile your own email lists, keep these four
points in mind when developing your opt-in strategy:
1. Make sure that the names on list belong there:-
Don't add the names of people who haven't agreed to receive
messages from you. Sending unsolicited e-mail known as "spam"
creates a negative impression of company. The ISP can even shut
down for this. For guidance on how to develop an e-mail list, read
Developing E-Mail Marketing Lists.
2. Let the customers decide the format in which they'll
receive promotional mailings:-
Not everyone has an e-mail account that can process HTML and rich-
text messages, and some people prefer plain text.
3. Give customers a chance to opt out of future mailings:-
Customers come and go, so don't be alarmed when someone wants to
be dropped from an e-mail list.
4. Give fair notice to visitors, if they harvest names from the
Web site:-
Re-assure customers that their personal information is safe, and that
wont be sell or distributed. Develop a privacy policy, post it
prominently on the site, and stick to it. Read for guidelines on
developing privacy policy.
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Chapter 2
Review of Literature
The concept of permission is a relatively new concept; it originated with the
theoretical research of Milne and Gordon (1993). Then, these beginnings
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followed up in the " marketing of the permission ", studied in the an ager
literature (Godin, 1999; Krishnamurthy, 2001); to occupy, today, a big
importance with the development of the new information technologies such
as the Internet, the mobile phone (Rettie and Brum, 2001; Barnes, 2002;
Barwise and Strong, 2002; Kavassalis and al., 2003; Dickinger and al. 2004;
Bamba and Barnes, 2007).
According to Milne and Gordon (1993), the permission is a means to
create rights protecting the private lives of consumers (privacy): by giving
its permission for the sharing of personal information with the marketer, the
individual must be protected against the phenomenon of spam. Milne and
Gordon (1993) discuss the role of customer permission along with volume,
targeting and compensation in the context of direct mail. However, their
reference is to an individual's providing a direct marketer the permission to
share his or her personal information with others. In other words, they see
permission as a tool to establish privacy rights rather than to enhance
targeting. Moreover, the privacy issue is different now since an infomediary
(Hagel & Singer, 1999) retains all the personal information and supplies ads
based on that information; the advertisers never see the information.
Whereas Godin (1999) sees that the permission goes beyond this
definition, to be a means which aims at improving the targeting. Although
the term permission marketing was coined by Godin (1999), the general
idea of customer permission in direct marketing had surfaced earlier in the
marketing literature, mainly in the context of privacy issues in direct
marketing.
Recently, Sheth, Sisodia and Sharma (2000) have proposed the
concept of customer-centric marketing, which includes what they call co-
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creation marketing. Co-creation marketing envisions a system where
marketers and consumers participate in shaping the marketing mix. In the
authors own words, Co-creation marketing enables and empowers
customers to aid in product creation (e.g., Gateway computers), pricing (e.g.,
priceline.com), distribution and fulfillment (e.g., GAP store or GAP online
delivered to the house), and communication (e-mail systems) (Sheth,
Sisodia & Sharma 2000, p. 62). Hence, permission marketing can be viewed
as focusing on the communication aspect of a larger concept called co-
creation marketing. Gilmore and Pine II (1997) had also earlier identified
collaboration between marketers and consumers as one form of one-on-one
marketing.
Krishnamurthy (2001) considers the marketing of the permission a
communication taken on the initiative of the customer. The permission of
the consumer consists, then, in giving its explicit agreement and in revealing
information corresponding to its profile and to its centers of interests,
allowing him it to be a marketing target and to receive marketing offers
(Godin, 1999; Krishnamurthy, 2001; Rettie and Brum, 2001; Bamba and
Barnes, 2007).
The direct marketing literature has also pointed out the importance of
consumers controlling the terms of their relationship with marketers. Phelps,
Nowak and Ferrell (2000) point out those individuals like to control how
personal information about them is used by marketers, the kinds of
advertising mail and catalogs that they receive and the volume of advertising
mail they receive (p. 29). In this literature, direct mail is viewed as a social
contract between the consumer and the marketer (Milne & Gordon, 1993).
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Moreover, there is recognition that what is necessary to improve direct
marketing relationships is not just a reduction of privacy concerns of
individuals, but rather an improvement in the consumers trust of the
marketer (Milne & Boza, forthcoming).
Marketing scholars have long been disenchanted with the marketer-initiated
approach to direct marketing. For example, in a critique on database
marketing, Schultz (1994) noted,
If the database works for the consumer and not just the marketer, duplicate
mailings should never exist. For the database to have value for customers, itshould simplify and improve their personal lives, not just complicate them
with unwanted offers or ridiculous solicitations. Also, if the database was
really working for the consumer - and not just the marketer - privacy would
not be the issue it is. Perhaps the greatest concern about the value of the
database is the one-way marketing systems that are being developed-
systems that favor the marketer and are disincentives to the
consumer(emphasis added).
Hence, it is not surprising that several marketing scholars have begun to
indicate their acceptance of permission marketing as a viable concept. For
example, Petty (2000) proposes shift(ing) property rights for soliciting and
selling information about consumers to the consumers themselves thereby
reducing the marketing costs imposed upon consumers without theirconsent(p. 52). Further, he argues that by bearing the costs of identifying
disinterested customers, marketers get an audience interested in their
message. Consumers get fewer messages and only ones that they are
interested in receiving (Petty 2000, p. 52).Similarly, Sheehan and Hoy
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(2000) also suggest that permission marketing may be a technique to reduce
privacy concerns of individuals. Even though they do not use the term
permission marketing, Milne, Boza and Rohm (1999) propose that opt-in
methods (can act) as a trust-building alternative to more effective
information control.
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Chapter 3
RESEARCH
METHODOLOGY
3.1 SELECTION OF THE TOPIC
As the current scenario the Indian market is growing very fast. Today the
companies are in the competition of making good relations with their
customers instead of making new customers. The purpose behind selecting
this topic is that the concept is new and very few studies are done in the
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favor of PERMISSION MARKETING. The results of the studies are limited
and by seeing the current position of the India competitive market this
method helps a lot to maintain good relationship between the customers and
the company. The motive behind the topic is to tell about the current
position of the permission marketing in the Indian market and as well as to
search out the future of Permission Marketing in India in the coming years.
3.2 OBJECTIVES OF THE TOPIC
To understand the concept of permission Marketing.
To analyze the current position of permission marketing in India. To identify the scope of permission marketing in India Market.
3.3 NATURE OF THE STUDY
This research is exploratory in nature. Very few studies have been done on
this topic. So the main objective of the report is to explore the facts of the
permission marketing and to know its position in current Indian market and
the future of permission market in the INDIAN industry.
Exploratory Research: - Exploratory research is a type of research
conducted for a problem that has not been clearly defined. Exploratory
research helps determine the best research design, data collection method
and selection of subjects. It should draw definitive conclusions only with
extreme caution. Given its fundamental nature, exploratory research often
concludes that a perceived problem does not actually exist.
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Exploratory research often relies on secondary research such as reviewing
available literature and/or data, or qualitative approaches such as informal
discussions with consumers, employees, management or competitors, and
more formal approaches through in-depth interviews, focus groups,
projective methods, case studies orpilot studies. The Internet allows for
research methods that are more interactive in nature
3.4 METHODS OF DATA COLLECTION
As concerned to the research of the project Secondary sources are used for
the collection of the data. Data is collected from the past researches and thejournals, articles, books and the websites.
3.5 ANALYSIS AND INTERPRETATION:-
The report is based on the secondary data collected from different articles,
journals and the websites. The research is totally exploratory in nature and
the results are drawn on the basis on citing the graphs, the books and thewebsites and the past researches by different authors.
After citing the facts it is concluded that the Permission Marketing plays a
very great role in maintain and building relations with new and the existing
customers. In todays world it plays a great role and helps the marketers to
generate more and more revenues and profits. If the permission marketing is
properly used in the Indian market it results in great profitability in the
international market
3.6 SCOPE OF THE STUDY
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India has been an attractive destination for marketers because of its growth
potential as an emerging market. The average Gross Domestic Production
(GDP) growth rateof India is 8.37% which indicates that future consumption
will increase. The affluence level of the average Indian household has
increased significantly. The per capita income has doubled from the 2002 -
2003 level of Rs. 18885 to Rs. 38084. Education level has reached to 79.9%
in 2009 from a meager 34% in 1971. The research findings of McKinsey
Global Institute indicate that the Indian consumer market is expected to
quadruple by 2025, making it the fifth largest consumer market in world.
Indian market is the competitive market and is growing very fast. To
run up with this world organizations have to use best technological methods
to get competitive advantage .this project helps us to know about the scope
of permission marketing in the INDIAN market and its impact on Indian
market in future
3.7 SIGNIFICANCE OF THE STUDY
India is a fast developing economy in the world and it is getting developed
very vastly. Permission marketing is used by many organizations. It is
growing with a great speed and its helping the organization to grow in
aright and profitable manner.
Like yahoo Asia! , Rediff mail and hotmail are using this concept as a
relation building concept. It can be the best strategy for getting in touch with
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your customers and also add new customers with the organization. If the
permission marketing concept is use in the different sectors it can be
profitable.
The SMS companies like 160by 2, way2sms etc are some of the major
players in the field of permission marketing, just like this permission
marketing can also be used for the other sectors too.
3.8 LIMITATIONS OF THE STUDY
While doing the research the there should be some limitations are there
which are as follows-1. Time shortage:-
The time period for the research is very small.
2. Non- availability of Data
As very few researches are conducted on the specific topic so thats
why the data is not easily available and it is not possible to collect thedata from company to company and all the sectors
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Chapter 4
Latest Developments in the
Topic
After studying the facts and the figures it is come to know that internet usersare growing very fast in the world and the Permission Marketing plays a
great role in the development of the Business organizations. It helps in
maintain good relations with the existing customers and upgrading them
with the latest products and services.
Permission marketing and the technology have positive impacts on the
business organizations and the customers. It helps in building good relations
with others organizations too.
Today many companies in India are thinking to use the Permission
Marketing as a communication tool with their customers and many
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companies are using the same concept such as Club Mahindra (CM), Yahoo!
Asia, Rediff and Hotmail.
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Chapter 5
Analysis and interpretation
After the research of the facts and the figures, it is to be concluded that
Permission Marketing plays a great role in maintaining the relationships.
Some of the facts which are to be studied in the report. Analysis of the
different channels of the permission marketing is as follows:-
5.1 Current Scenario of Permission Marketing in India
5.1.1 Permission Marketing and Travel & Tourism business
Tourism business is growing day by day and selling of travel tickets online
is the latest trend these days due to various positive reasons associated with
it. The main requirement of travel industry is to understand the need of the
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customer. Understanding customer is always been a complex thing but for
travel business it is must. The travel industry is well structured and always
aims for customer satisfaction. With the gaining popularity of travel
business, it has added to various advance level of business and one of them
is making the use of internet marketing to sell travel tickets online.
Selling travel tickets online is really becoming more and more popular these
days due to the factor of providing convenience of reviewing and comparing
various travel options on just one website sitting in the office and without
going to the travel agent. It provides a user friendly experience in purchasing
tickets online as it is easy to use. But, simply presence on internet does not
provide with customers and does not guarantee the sale of travel tickets
online. To sell travel tickets online it is very important to smartly market on
internet to promote the services offered by the company. (Quote some
examples of web links of travel Agents)
Permission Marketing by Club Mahindra (CM)
A good example of permission marketing is the one adopted by
Indias leading holiday company
Club Mahindra (CM). CM believes
that any form of mailers or calls can
only be done after permission has
been taken from the prospect, andthat spamming is an absolute no-no.
Their form of permission marketing goes like this they post people
at places where their target audience is likely to turn up petrol
pumps, highway toll booths, high-class cinema halls, etc.
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These people approach the audience that drives up in cars (a key
criterion used by CM to qualify its prospects) and asks them for
permission to talk to them. If this permission is granted, then a lead
generation form is handed over to them, where the prospect mentions
his / her contact details and basically confirms that he would like a
sales call about CMs products. As
incentive to do this, the prospect could be
offered a free holiday or a crack at a
contest or some such sweetener. Now,
when the sales representative does get in
touch, he does it in the full knowledge
that the prospect has expressed interest in learning about the product.
As govt. starts tightening noose around the advertisers, permission
marketing seems to be the most viable options for advertisers to monetize
the subscriber base the next question is how one gets the permission to send
ads? Well, companies have come up with very smart initiatives to lure the
customers to receive ads.
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Another ingenious form of permission marketing is carried out in many
websites such as the ones offering free webmails-Hotmail, Rediff mail, etc.
Most of us would have been through this; when registering to get an id, there
will be a small set of check-boxes asking us for our interests. If we tick, say,
cricket and science, then the service provider will take it as consent to
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bombard us with emails and newsletters. If we dont recall that we ticked
some boxes, we could well end up thinking that this is spam; well, it is not.
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Yahoo! India portal may do online auction too
Priya Ganapati at Pragati Maidan
Yahoo! is hoping to launch a Yahoo! portal for India in the next 12 months.
David Mickler, director, sales and marketing, Yahoo! Asia, told Rediff"Our
strength has always been our search and directory services. We hope to
capitalize on that. In addition to our other services the India portal will help
readers search for Indian Web sites more effectively." Mickler clarified that
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Indian Web sites would include sites whose servers are located in India and
sites whose content has an India focus but whose servers are not hosted in
this country.
"Our Indian portal will provide content like news from a variety of Indian
and global content providers. We want to leverage our global advantage to
deliver content to a local audience," Mickler said.
Yahoo! plans to offer other services like auctions and India specific
information like content on cricket and quotes from the stock exchanges.
Mickler is also keen to start an auction service at the Indian portal. He told
Rediffthat the content on the portal will not be localized. "Most of the Web
users in the country speak and read English. I believe that this is not likely to
change in the next couple of years," he said.
Mickler also delivered a presentation on extending business to the
interactive media. Dressed in casuals Mickler stood out among the grey suits
of the delegates. The session was scheduled to be addressed by Savio Chow,
managing director, Yahoo! Asia.
"Savio had to drop out at the last minute and he called me up at the eleventh
hour when I was on a vacation. That explains the casuals," grinned Mickler.
He said that the growth of the Internet has produced a shift in the way
marketing is done. Mickler calls this new form of marketing "permission
marketing".
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Listing out the advantages of permission marketing as opposed to traditional
forms of marketing Mickler said "Permission marketing is invited and its
avoids the clutter that traditional forms of marketing overwhelm the
consumer with."
To clarify the term for the audience Mickler elaborated, "Permission
marketing is like dating. You select a desired prospect. Then provide the
prospect with an incentive to volunteer for your service. Once that is done,
you use the attention to educate about your product or service. Then offer
additional incentive to gain further permission for updates. This example is
kind of crude but it is a really good way to explain."
Mickler listed out the four principles that should be used for direct
marketing over the Web.
1. Be clear.
Use seven words or less to explain your product to your customers.
Remember users skim through their mails. So make it clear where you want
the readers to click if they wish to know more about your product.
2. Be easy.
No technology is a good thing. Do not ask for more information than what
you need. And what you need is only an email address and the permission to
send further information on that address.
3. Make it selfish.
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Tell the user upfront what is there in it for him. Present to him the benefits
he gets out of the product and give him incentives to share personal
information.
4. Test it.
Test multiple audiences and remember that the market is
more right than you are.
5.1.2 SMS (Selling made Smarter)
Nature of Usage
From a simple message to a friend, to confirming/ canceling meetings,
perhaps okaying deals, having confrontations without having to face the
person, keeping conversations short and simple, finding your soul mate,
sending across greetings, to downloading jokes, tunes, pictures, songs and so
on, SMS has emerged as a multi-usage communication mode across ages
and purposes.
Apart from these, the usage of SMS has broadened its dimensions due to the
constant up gradation in technology, which in turn is a result of the
increasing competition amongst both the mobile handset providers as well as
the service providers.
Be it the ability of allowing to click pictures through a mobile phone and
sending the same across to a friend, or requesting a certain facility (cricket
scores!), or wanting to make a purchase, or sending group messages, or
promoting a brand, SMS (and MMS) does it all.
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The Media Clutter
Amongst the sea of communication channels hitting the consumer
constantly, the actual message usually gets lost. Many a times, thepossibility of the right message reaching the right target is also dwindled, not
ruling out the fact that this has a direct impact on the costs shelled out for
such activities. Unlike the mass media, SMS enables micro targeting, which
ensures that there is no spillover of the communication. The use of this
medium also allows the consumer to react to the communication on the spot,
which helps measure the effectiveness of the campaign.
Then there is always the option to explore the possibility of this medium
being used to propagate word-of-mouth. Every single target that the
communication is being sent to carries the potential to be the originator of a
new chain of targets. It just depends on how interesting and action-
provoking the message designed is for the chain to remain continual.
Reflecting this idea are 2 case studies; one BBC Worldwide, which
successfully boosted circulation of 'Top of the Pops' magazine through an
ongoing text service and the other of East West Records, which successfully
promoted a UK dance act Oxide & Neutrino with a wireless marketing
campaign.
Another interesting aspect is that ownership of a mobile phone is individual
in nature. For many, it has an emotional connotation, which is an important
factor while considering using SMS as a communication channel. Also the
possibility of an SMS not being read (in comparison to a promotional E-mail
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not being opened) is quite negligible. Even a message that does not interest
the consumer will at the most go unanswered but hardly unnoticed.
Apart from E-mail, SMS is the only medium that allows Permission
Marketing, the term itself depicting the fact that the marketer can obtain the
permission of the consumer before the latter is made part of or exposed to
any promotional/ marketing activity.
To summarize it, SMS as a medium is all pervasive (makes the consumer
reachable at all times), personal, allows Permission Marketing, interactive,
generates impulsive responses and direct as far as approaching the righttarget is concerned.
Growth of SMS usage
In a very short span, the usage of SMS worldwide has reached competitive
figures.
The volume of SMS in India grew more than three-fold during the last year.
From 80.6 crores the figure touched 24,500 crores by the end of2002. In
2002 each cellular user in India sent around 26 SMS per month on an
average. SMS has graduated from a mere add-on service into a
communication channel alongside voice calls in India. (Gartner Dataquest
report)
Another survey done by IDC shows some interesting figures on SMS usage
in certain metros and also compares the incidence of calls against SMS.
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Cadbury India tied up with BSNL mobile for SMS enabled vending
machines. About 30-35 user-friendly machines would be placed at select
congregation points in Mumbai. With the introduction of m-cash, the
country's first mobile payment solution, BPL Mobile has introduced cashless
payment using the mobile phone. BPL Mobile subscribers can buy a
Cadbury chocolate, for which the payment would be reflected in the bill. A
similar tie up has been initiated by BPL Pepsi for SMS enabled vending
machines.
In another scene, Lufthansa German Airlines in association with
Mobile2Win organized the first-ever, live ticket auction through SMS in
India.
Service operators also see SMS as the most feasible solution for
communicating many of their value-added services. For example, Airtel
allowing recharging of SIM card via SMS, BSNL offering assisted SMS
services on landline, Bharti Teletech providing SMS enabled telephones to
BSNL. The participation of mobile service operators in this exercise only
benefit in increasing the availability of SMS being used for all practical
purposes.
Radio Mirchi broke new grounds in FM Radio
interactive programming by auctioning a date with
Kareena Kapoor. Listeners had to SMS their bid to8888. The auction could be played by anyone with an
access to a mobile phone. The bidding for the lunch date began with Rs
5,000 and on the first day of the two-day auction, there were already more
than 1,800 responses and the bid has crossed Rs 85,600 in Mumbai alone.
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The proceeds of the auction were donated to Nav Nirman Foundation, a
home for the poor, addicts and the mentally challenged.
Discovery and Star Plus also have used SMS to increase their programme
viewership. Though on an experimental stage, Star Plus used the SMS
medium to track the curiosity of television viewers about their serials. The
channel started with Kyunki Saas Bhi Khabhi Bahu Thi, to check the
percentage of people who send SMS to Star Plus at 7827 to know about the
next episode of Kyunki, the response to which was surprisingly huge.
Discovery Channel used the SMS medium to promote its new programmed,
Berman and Berman, where viewer interactivity was an integral part of the
programmed plan.
Escotel and NDTV tied-up to provide a News Service called "NDTV
Wireless" to all Escotel-Haryana customers via mobile.
Indian Express associated with the Arab news channel, Al-Jazeera, to
provide the breaking news from US-Iraq war on SMS. The Indian Express
readers got the latest updates by SMSing 'AJ' at 3636. Active Media Tech
was roped in by Indian Express to provide the backend technology to power
the service.
All kinds of promotions seem to have taken SMS as a must route of
communication. Keeping abreast with the latest, let us not miss out the
recent promotion taken up by the 'most talked about soap' on television,
Jassi Jaisi Koi Nahi which also used SMS as a medium to provoke
responses from viewers asking them to send across their views on its
episodes.
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On one hand where a threshold is achieved wherein the consumer can be
reached at any given point in time, let us be careful not to invade his
personal space or lower his threshold of irritation. This otherwise, will lead
to another case of arousing the need of a system that does away with junk
SMS just as today we can Spam junk mails.
5.1.3 OCTANE:-
Octane is committed towards evangelizing permission marketing in India,
especially permission email marketing. Purely because it makes good
business sense to build relationships and to stop spamming.
Lets take you as an example. You are a producer and a consumer of goods
and services in the society. As a consumer, you like certain brands,
categories of products and would like to know more about these on a regular
basis. If you agree to receive updates from companies, brands, stores that are
your favorite, you will see this as service provided by the supplier.
On the other hand, if you are not interested in silk curtains or cultural
tourism or cheap travel tickets or the likes, and you start receiving
unsolicited intrusive email spams on such products and from companies you
dont know or trust, you would be angry, annoyed and worried about your
data privacy.
For a producer or a marketer, this is an opportunity lost to make a
connection and build on the relationship.
Then why is it that most email or online marketers, especially in India, dont
want to invest in permission or opt-in-list building activities. Simply, since
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buying an email spam list is cheap and easy. Second most marketers do not
mechanism to track the lost opportunities and adverse impact spam
marketing creates on the marketing campaigns.
Customer Acquisition Facts
Permission marketing yields 30% increase in conversion and a 10% increase
in return on investment. (Permission Marketing, Seth Godin)
Traditional direct marketing costs $1.50 per item, while online direct
marketing averages 15-30 cents. (Andersen)
Traditional direct mail averages 1-2% response rate. Permission
marketing averages 10-15% response rates. (Direct Marketing
Association)
80% of your visitors will never return to your website. (e-Marketer)
The odds of selling a product to a new customer are 15%, whereas the
odds of selling a product to an existing customer are 50%.
Email click-through measure 3-10x that of banner ads at 2-20% CTR.
Internet users represent over 72% of the U.S. population and greater
than 25% spend their time online using email. (UCLA Report 2001)
Customer Loyalty Facts
It costs 5 -10 times more to acquire a new customer than it does to retain an
existing one. (E-marketer)
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If you trail your competition by 20 points in customer loyalty you are
out of business.
Improving customer interactions is one of the single largest impact
areas, across all industries. (Accenture)
A 5% increase in customer retention yields an increase in profits
between 25 -100%.
Customer Loyalty Fact - Repeat customers spend 67% more; After 10
purchases, a customer has referred up to 7 people. (Bain & Company)
Online promotions generate 2 to 5 times the customer response rates
of traditional promotions.
70% of complaining customers will do business with the company again if it
quickly takes care of a service snafu.
5.2 SCOPE OF PERMISSION MARKETING
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Permission marketing is not so popular are INDIA today and very few
companies are using this type of permission marketing. Some of the
International case studies of the Permission Marketing:-
Kestler Financial Group
Kestler Financial Group is a national Field Marketing Organization that
serves and supports more than 5,500 independent insurance brokers. The
firm specializes in annuities, long term care insurance, life insurance, and
securities.KFG sends bi-monthly emails that:provide product information
and selling tools enable a broker to request an immediate quote
Baxter Pharmaceuticals
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Uses permission-based email to establish and maintain dialogue with
patients, care-givers, family members, physicians and sales force personnel.
Uses Dynamic Content to deliver relevant information to key constituenciesthrough
The Baxter Factor.
Baxters integrated e-Marketing Strategy E-mail is a key component
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Delivers information at regular intervals
Drives traffic to disease state site
Drives traffic to product site
Increases demand for complementary materials
Key Constituencies
1. Patients
2. Family of patients
3. Friends/partners of patients
4. Nurses
5. Healthcare professionals
6. Sales force
Email Execution Process
Baxters permission-based email strategy has been pivotal in making
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Sherwin-Williams
www.exacttarget.com Simple. Smart. Powerful.
Sherwin-Williams were losing core Do It Yourself Customers to
competition. Fewer new customers were being acquired. Customer
acquisition cost was rising.
1. Optiem created a Preferred Customer Program to deliver promotional
offers and advice for Do It Yourself customers.
2. Used indirect communications to attract customers to the Preferred
Customer Program micro site and invite registration.
3. Used permission email to deliver relevant offers, provide project-
related information and drive traffic to Sherwin-Williams store.
Like these international companies the permission marketing strategy can
also be use for doing businesses in INDIA, because we know that Customeris the king of the market and the benefits of the customers increase customer
loyalty and helps in maintaining good relations and here the permission
marketing act as link between the customer and the company.
Customer Registration Micro-site
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Case Study Sherwin-Williams
Results
Sherwin-Williams knows exactly how much they have invested in
their Customer Affinity program and what sales have been generated.
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Sherwin-Williamsobtain permission
to send emailoffers and
information.
Sherwin-Williamsobtain product-related projectinterests forrelevant messaging.
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The Preferred Customer Program is now nationwide and is
incorporated into the annual marketing plan.
Net Revenue exceeded cost by a factor of 12 to 1!
Sherwin-Williams have built a Preferred Customer database of more
than 300,000 active customers and have a closed loop system for
tracking program performance.
Permission Based E-mail across the organization:-
The Enterprise Email ChallengeHow to:-
Meet worldwide requirements for email marketing by business units,
regional sales offices, and local dealers?
Develop and enforce email communications / list management
processes and policies to ensure privacy and legal compliance?
Provide an easy-to-use email system that enables marketing to control
branding and messaging at multiple levels?
Gannetts Enterprise Email Business ModelStrategy
Provide Enterprise-wide Access to Email Technology Maintain
Central Command and Control for Branding and Messaging
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Divisions
Publications
TV Stations
Radio Stations
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Chapter 6
FINDINGS AND
CONCLUSION
After studying the concept of permission marketing now becomes an
International Marketing Strategy and it is to be noted that PermissionMarketing is used by different domestic companies and in the international
Market and it is also resulting as a beneficial strategy for maintaining good
relations with their new customers as well as existing customers.
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Permission Marketing is now fully used by all the companies but by seeing
the customers loyalty facts and the customers acquisition facts it can be said
the with in a half decade, the concept will be used by many of the companies
and helps them in generating the profits.
Conclusion:-
If in all the sectors such as advertising industry, retail industry, travel
and tourism, banking, internet, pharmaceuticals, mobile companies
permission marketing is used then it will be beneficial in generating
revenues and increasing sales and it helps to know about the customerbehavior towards their products and if and helps the companies to expand
their business worldwide.
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Chapter 7
Suggestions and
Recommendations
Suggestions-
As the Pharmaceuticals companies like Baxter pharmaceuticals is using the
permission marketing as a relationship tool. It can also be use in India and at
large scale. Because the India market is growing very fast and is now a
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competitive market. And this could be the best way to build the best
relations with the customers and helps in the growth of the organization
Kestler Financial group is also using the same strategy. So by seeing this, I
suggest that if permission marketing is to be used at such massive scale it
increases the companies profitability.
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ANNEXURE(s)
BIBLIOGRAPHY
Books:-
Source: The Preference Service
Joel Book e-Marketing Strategist Exact Target, Inc.Indianapolis,
Indiana
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clickz.com
PHILIP KOTLER & KEVIN LANE KELLER, Marketing
Management, 12th Edition, Chapter 9, Page 285
JOURNAL OF INTERACTIVE MARKETING VOLUME 16 /
NUMBER 4 / AUTUMN 2002 Published online in Wiley inter
science (www.interscience.wiley.com). DOI: 10.1002/dir.10041
McKinsey Global Institute, 2005, The Bird of Gold: The Rise of
Indias Consumer Market
Journals:-
Journal of Computer-Mediated Communication
JOURNAL OF INTERACTIVE MARKETING
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www.google.com
www.exacttarget.com
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http://www.interscience.wiley.com/http://www.google.com/http://www.exacttarget.com/http://www.ie.edu/enrique_danshttp://www.clubmahindra.com/register.asphttp://www.clubmahindra.com/register.asphttp://email-marketing-india.blogspot.com/http://register.rediff.com/commonreg/index.phphttps://edit.europe.yahoo.com/registration?_intl=ukhttp://www.inc.com/articles/2000/01/18635.htmlhttp://www.interscience.wiley.com/http://www.google.com/http://www.exacttarget.com/http://www.ie.edu/enrique_danshttp://www.clubmahindra.com/register.asphttp://www.clubmahindra.com/register.asphttp://email-marketing-india.blogspot.com/http://register.rediff.com/commonreg/index.phphttps://edit.europe.yahoo.com/registration?_intl=ukhttp://www.inc.com/articles/2000/01/18635.html -
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tml
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te.google.co.in/translate?hl=en&sl=es&tl=en&u=http://profesores.ie.edu/enrique_dans/download/pmktabc.pdfhttp://www.ibimapublishing.com/journals/JMTKS/2010/166310/166310.pdfhttp://www.ibimapublishing.com/journals/JMTKS/2010/166310/166310.pdfhttp://www.mckinsey.com/mgi/publications/india_consumer_market/slideshow/main.asphttp://www.mckinsey.com/mgi/publications/india_consumer_market/slideshow/main.asphttp://www.google.co.in/imgres?imgurl=http://image.absoluteastronomy.com/images/encyclopediaimages/r/ra/radiomirchi.jpg&imgrefurl=http://www.absoluteastronomy.com/topics/Radio_Mirchi&usg=__DAp1dZ0DWG6vSMcqxMOLrXDU97s=&h=93&w=180&sz=5&hl=en&start=0&zoom=1&tbnid=eu1vku9lfxqEAM:&tbnh=74&tbnw=144&ei=1mupTbz2AoaOvQONyJ2RCg&prev=/images%3Fq%3Dradio%2Bmirchi%26um%3D1%26hl%3Den%26client%3Dfirefox-a%26sa%3DN%26rls%3Dorg.mozilla:en-GB:official%26biw%3D1024%26bih%3D576%26tbm%3Disch0%2C80&um=1&itbs=1&iact=hc&vpx=641&vpy=379&dur=1228&hovh=74&hovw=144&tx=55&ty=32&oei=LWupTeqgE9HPrQfM_-inCA&page=1&ndsp=15&ved=1t:429,r:13,s:0&biw=1024&bih=576http://www.google.co.in/imgres?imgurl=http://image.absoluteastronomy.com/images/encyclopediaimages/r/ra/radiomirchi.jpg&imgrefurl=http://www.absoluteastronomy.com/topics/Radio_Mirchi&usg=__DAp1dZ0DWG6vSMcqxMOLrXDU97s=&h=93&w=180&sz=5&hl=en&start=0&zoom=1&tbnid=eu1vku9lfxqEAM:&tbnh=74&tbnw=144&ei=1mupTbz2AoaOvQONyJ2RCg&prev=/images%3Fq%3Dradio%2Bmirchi%26um%3D1%26hl%3Den%26client%3Dfirefox-a%26sa%3DN%26rls%3Dorg.mozilla:en-GB:official%26biw%3D1024%26bih%3D576%26tbm%3Disch0%2C80&um=1&itbs=1&iact=hc&vpx=641&vpy=379&dur=1228&hovh=74&hovw=144&tx=55&ty=32&oei=LWupTeqgE9HPrQfM_-inCA&page=1&ndsp=15&ved=1t:429,r:13,s:0&biw=1024&bih=576 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63 | P a g e
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