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Mobile Advertising in B2C Marketing

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Paper category

Master Thesis


Business Administration>Marketing & Sales




Thesis: Mobile commerce and mobile marketing In order to take advantage of the opportunities created by the rapid growth of cellular phones and other wireless devices (such as PDAs, pagers, Bluetooth), companies around the world have integrated mobile commerce technologies into their business models. Shi (2004) believes that mobile commerce can be defined as the direct delivery of electronic commerce (ecommerce) functions to consumers through wireless technology, and retail stores are placed in the hands of consumers. This type of e-commerce allows companies to directly reach end users regardless of where they are located. Through mobile commerce, end users can make purchases, download cash, conduct banking services, and purchase tickets through their mobile phones. The recent increase in interest in mobile commerce is because consumers show a high degree of interest in how to access business services and information or communicate anywhere. This is also the motivation and all places for business groups to contact end users at any time. According to Juniper Research Group (e-marketer, 2005), the global mobile commerce market, including mobile entertainment downloads, ticket purchases, and point-of-sale (POS) transactions, will grow to US$88 billion by 2009. The research company predicts that, on average, , By 2009, Western Europeans will use mobile phones to conduct about 28 transactions each year, and the average value of each transaction is about US$3.00. Due to the emergence and widespread adoption of wireless data networks, mobile marketing is a very new but promising industry that enables the convergence of the Internet, e-commerce, and wireless world (Kalakota and Robinson, 2002). Murphy et al., (2004) define mobile marketing as the use of mobile channels to provide end users with location- and time-sensitive personalized information to promote goods, services and creativity for the benefit of stakeholders. Some modes of providing mobile marketing include (Short Message Service) (SMS, Multimedia Messaging Service (MMS), Wireless Application Protocol (WAP), Java, SyncML, and video and audio messaging (MMA, 2003). According to Marla et al., ( 2005) There is evidence that interactive marketing such as marketing websites, Internet advertising, licensed e-mail, mobile and other new media are the fastest growing areas in the advertising community. Companies have long-term reasons to adopt it. Studies have shown that 65% of mobile phone users will Marketing alerts and promotions were welcomed in 2006. This number has been surpassed in the youth market. As an advertising channel, mobile devices have many new features, so compared with traditional media, there are many opportunities and many participants hope to benefit from them. 2.1 Factors affecting mobile advertising adoption According to Okazaki (2005), certain factors can be explained as key determinants of SMS-based mobile advertising adoption. These can be divided into two categories: management (brand strategy, location-based services and service costs) and environment (regulation, convenience and cultural barriers). See (Figure 2.1) 2.1.1 Brand strategy according to Frolick and Chen's 2004 reference to by (Okazaki, 2005) The mobile Internet provides an effective channel for building customer relationships through sales promotion and direct sales activities. More specifically, wireless email has been seen as an effective tool to increase brand awareness, build or test customer loyalty, and develop or enhance demographic databases (Mylonopoulus and Doukidis, 2003). Petersen et al., (2003) believe that the traditional use of the Internet through a computer does not allow brands to contact customers anytime and anywhere. Although the Internet is said to have enabled customers to reach the company at the time they want, they can only be contacted by sitting in front of the computer. To customers, on the contrary, mobile devices always accompany users, allowing brands to reach their customers anytime, anywhere. Customers will attach great importance to time and space flexible channels. Access to ubiquitous channels is particularly important for customers, especially when products and services are time-critical. Brands can post information about products, innovations, coupon announcements or/special offers via mobile devices. Customers can also use wireless channels to inquire about product usage, such as inquiring about restaurant menus or evening programs on TV channels, so as to improve their ability to make full use of the services that related products or brands can provide. Similarly, since mobile devices support two-way communication between brands and customers, brands can get feedback from customers. Usually wireless devices are used to coordinate social networks. In most cases, information received by network members can be forwarded to other members of the network. Therefore, in addition to the brand's own customer database, brand information can be communicated on a broader level, which is the result of social interaction between the members of the customer database. This means delivering brand advertisements, logos, and slogans in social networks, which can double the number of end users who come into contact with the brand, thereby increasing brand knowledge (ibid.). A survey using popular brand trials in mobile advertising found that as many as 84% ​​of 500 young British adults might recommend this service to their friends. Read Less