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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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    http://www.mastbusiness.com/top/Transportation_And_Travel/Travel/Travel_Tickets/http://www.mastbusiness.com/top/Transportation_And_Travel/http://www.mastbusiness.com/info/internet_information.htmhttp://www.mastbusiness.com/top/Transportation_And_Travel/Travel/Travel_Tickets/http://www.mastbusiness.com/top/Transportation_And_Travel/http://www.mastbusiness.com/info/internet_information.htm
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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

    Websites:-

    www.google.com

    www.exacttarget.com

    http://www.ie.edu/enrique_dans

    http://www.clubmahindra.com/register.asp

    http://www.clubmahindra.com/register.asp

    http://email-marketing-india.blogspot.com/

    http://register.rediff.com/commonreg/index.php

    https://edit.europe.yahoo.com/registration?_intl=uk

    http://www.inc.com/articles/2000/01/18635.html

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    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