A

Project Report
on
“A STUDY ON THE EFFECTIVENESS OF ONLINE
MARKETING WITH SPECIAL REFERENCE TO
AMAZON’’

Submitted to
G.S. College of Commerce & Economics
Nagpur

In partial fulfillment for the award of the degree of

Bachelor of Business Administration

Submitted by

NIHAL SANJAY KESALKAR

Under the Guidance of

DR. PRAGATI RICHA PANDEY

G.S. College Of Commerce & Economics, Nagpur

Academic
Academic Year
Year 2021
2021 – 22
- 22
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G.S. College Of Commerce & Economics , Nagpur

Academic Year 2021 – 22

CERTIFICATE

This is to certify that “NIHAL SANJAY KESALKAR” has submitted the

project report titled“A STUDY ON THE EFFECTIVENESS OF ONLINE

MARKETING WITH SPECIAL REFERENCE TO AMAZON’’,towards

partial fulfillment of BACHELOR OF BUSINESS ADMINISTRATION

degree examination. This has not been submitted for any other examination

and does not form part of any other course undergone by the candidate.

It is further certified that he has ingeniously completed his project as

prescribed by Rashtrasant Tukadoji Maharaj Nagpur University, Nagpur.

DR. PRAGATI PANDEY DR. AFSAR SHEIKH

(Project Guide) (Co-ordinator)

Place: Nagpur
Date:

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G.S. College Of Commerce &Economics, Nagpur

Academic Year 2021 – 22

DECLARATION

I here-by declare that the project with title“A STUDY ON THE

EFFECTIVENESS OF ONLINE MARKETING WITH SPECIAL

REFERENCE TO AMAZON’’ has been completed by me in partial

fulfillment of BACHELOR OF BUSINESS ADMINISTRATION degree

examination as prescribed by Rashtrasant Tukadoji Maharaj Nagpur

University, Nagpur and this has not been submitted for any other

examination anddoes not form the part. of any other course undertaken

by me.

NIHAL SANJAY KESALKAR

Place: Nagpur

Date:

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G.S. College Of Commerce & Economics , Nagpur

Academic Year 2021 – 22

ACKNOWLEDGEMENT

With immense prideand sense of gratitude, I take this

golden opportunity to express my sincere regards to
Dr.N.Y.Khandait, Principal, G.S. College of Commerce &
Economics, Nagpur.

I am extremely thankful to my Project Guide Prof.DR.

PRAGATI RICHA PANDEY for her guideline throughout the
project. I tender my sincere regards to Co-ordinator,
DR.AFSAR SHEIKH for giving me outstanding guidance,
enthusiastic suggestions and invaluable encouragement
which helped me in the completion of the project.

I will fail in my duty if I do not thank the Non-Teaching staff

of the college for their Co-operation.
I would like to thank all those who helped me in making this
project complete and successful.

NIHAL SANJAY KESALKAR

Place: Nagpur
Date:

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INDEX

S.No. PARTICULARS PAGE No.

1. Introduction 6

2. Company profile 9
Literature Review
3. 30

4. Research Study 33

 Problem definition 34

 Objectives 34

 Hypothesis 35

 Scope of the study 35

5. Research Methodology 36

6. SWOT Analysis of Amazon 39

7. Data Analysis & Interpretations 43

8. Findings & Conclusion 56

9. Suggestions 60

10. Bibliography 62

11. Appendices 64

 Questionnaire 65

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CHAPTER 1
INTRODUCTION

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INTRODUCTION

Online Marketing is the art and science of selling products and services over digital
networks, such as the Internet and cellular phone networks. Online marketing is one
type of marketing being widely used to promote products or services and to reach
consumers using digital channels. Online marketing extends beyond internet marketing
including channels that do not require the use of Internet. Here we trying to
understanding effectiveness of online marketing in Amazon. How only market
behaviour with reference to amazon. This project base on a both type of data that a
primary data and secondary data From the research findings, it was revealed that online
marketing is effective in integrated marketing communication strategy of the
organisation by increasing the brand awareness, improves customer satisfaction, easy
integration and management, and facilitates automation of marketing activities. It was
equally revealed that integrated marketing online effectiveness can be measured using
a number of metrics including consumer interaction on site, number of repeated visit,
sales volume and profits among others. The researcher also discovered that the trending
online marketing tools employed by most organisation includes, e-mail marketing,
social media marketing, search engine marketing, artificial intelligence and chartbot
among others.

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ADVANTAGES OF ONLINE MARKETING

One of the most important advantages is the fast availability of the information. The
clients/users can easily get information, by navigating the internet, about the products
that they wish to purchase, and besides that, they can check the information at anytime
of the day.

 It allows the companies to save money, an aspect that is really taken into
account by the companies since the online marketing campaigns don’t require
a large amount of investment.

 The previous mentioned aspect, gives less importance to the differences

between large and small companies in some way, thus increasing the
competition and giving that way advantages to the customers.

 Presence on the Internet can help the expansion of the company from a local
market to national and international markets at the same time, offering almost
infinite expanding possibilities.

 On the internet everything can be measured, thus it’s easier for the companies
to know almost instantly if their campaign is working or not, what company or
user is interested in their products, from what cities or countries are they, etc.

DISADVANTAGES OF ONLINE MARKETING:

 Slow internet connections can cause difficulties. If the companies build too
complex or too large websites, it will take too long for users to check them or
download them and they will get bored eventually.

 The e-commerce doesn’t allow the user “to touch” the merchandise before
purchasing it. Because of this, some salesmen are starting to guarantee the
possibility of returning the product. In Germany, where a law that regulates e-
commerce and guarantees the customers the total refund of the money exists
since 2000, the electronic commerce is very popular.

 Other factor is the payment: many users still don’t trust in the electronic
methods of paying and give up buying online because of this.

 One of the major disadvantages may be the lack of trust of the users because of
the constant virtual promotions that appear to be frauds. This is an aspect that
deteriorates the image and reputation of quality and honest companies.

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CHAPTER 2
COMPANY PROFILE

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AMAZON COMPANY

Amazon.com is an American multinational technology company which focuses

on e-commerce cloud computing, digital streaming, and artificial intelligence. It has
been referred to as "one of the most influential economic and cultural forces in the
world", and the world’s most valuable brand. It is one of the big five American
information technology companies alongside alphabet (Google), apple, meta
(Facebook), and Microsoft.

The Amazon Spheres part of the Amazon headquarters in Seattle, U.S.

Jeff Bezos founded Amazon from his garage in Bellevue Washington, on July 5,
1994. Initially an online marketplace for books, it has expanded into a multitude of
product categories: a strategy that has earned it the moniker The Everything Store. It
has multiple subsidiaries including Amazon Web Services (cloud
computing), Zoox (autonomous vehicles), Kuiper Systems (satellite Internet), Amazon
Lab126 (computer hardware R&D). Its other subsidiaries include Ring, Twitch, IMDb
and Whole Foods Market. Its acquisition of Whole Foods in August 2017
for US$13.4 billion substantially increased its footprint as a physical retailer.

Amazon has earned a reputation as a disruptor of well-established industries through

technological innovation and mass scale. As of 2021, it is the world's largest Internet
company, online marketplace, AI assistant provider, cloud
computing platform, and live-streaming service as measured by revenue and market

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share. In 2021, it surpassed Walmart as the world's largest retailer outside of China,
driven in large part by its paid subscription plan, Amazon Prime, which has over
200 million subscribers worldwide. It is the second-largest private employer in the
United States.
Amazon also distributes a variety of downloadable and streaming content through
its Amazon Prime Video, Amazon Music, Twitch, and Audible units. It publishes
books through its publishing arm, Amazon Publishing, film and television content
through Amazon Studios, and is currently acquiring film and television studio Metro-
Goldwyn-Mayer. It also produces consumer electronics most notably, Kindle e-
readers, Echo devices, Fire tablets, and Fire TV.
Amazon has been criticized for practices including technological surveillance
overreach, a hyper-competitive and demanding work culture, tax avoidance, and anti-
competitive behavior.

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AMAZON COMPANY

Trade name Amazon

Formerly Cadabra (19994-1995)
Type Public
Industry E-commerce, Cloud Computing,
Artificial electronics, Entertainment,
Digital distribution, Self-Driving cars,
Supermarket.
Founded July 5,1994 (27 year ago)
Bellevue, Washington, U.S.
Founder Jeff Bezos
Headquarters Seattle, Washington, U.S.
Area served Worldwide
Products Echo, Fire Tablet, Fire TV, Fire OS,
Kindle.
Revenue US$469.822 billion (2021)
Operating income US$24.879 billion (2021)
Net income US$33.364 billion (2021)
Total assets US$420.549 billion (2021)
Total equity US$138.245 billion (2021)
Owner Jeff Bezos (14% of voting power, 10.6%
economic interest)
Numbers of employees 1,608,000(Dec 2021)
U.S.: 950,000(Jan 2021)

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The company largest campus

Outside the U.S. was inaugurated in
Hyderabad, India
Amazon founder Jeff Bezos

HISTORY OF AMAZON

Jeff Bezos founded Amazon in July 1994, choosing Seattle for its abundance of
technical talent, as Microsoft was in the area. Mackenzie Scott was also instrumental
in its founding, and drove across the country with Bezos to start it. When Scott
graduated, she applied to work for D. E. Shaw & Co., a quantitative hedge fund in New
York City, as a research associate to "pay the bills while working on her novels". Bezos,
then a vice-president at the firm, met her when he interviewed her.
Amazon went public in May 1997. It began selling music and videos in 1998, and
began international operations by acquiring online sellers of books in the United
Kingdom and Germany. The following year, it began selling items including video
games, consumer electronics, home improvement items, software, games, and toys.
In 2002 it launched Amazon Web Services (AWS), which provided data on
website popularity, Internet traffic patterns, and other statistics for marketers and
developers. In 2006, it grew its AWS portfolio when Elastic Compute Cloud (EC2),
which rented computer processing power, provided Simple Storage Service (S3), and
rented data storage via the Internet, also became available. That year, Amazon also
started Fulfillment by Amazon which allowed individuals and small companies to sell
items through the company's Internet site. In 2012, Amazon bought Kiva Systems to
automate its inventory management business. It purchased the Whole Foods Market
supermarket chain in 2017.
On February 2, 2021, Amazon announced that Jeff Bezos would step down as
CEO to become Executive Chair of Amazon's board in Q3 of 2021. Andy Jassy,
previously CEO of AWS, became Amazon's CEO.

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EVOLUATION OF AMAZON LOGOS:-

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BOARD OF DIRECTORS

Amazon founder Jeff Bezos in 2016

As of September 2020, Amazon's board of directors is:

 Jeff Bezos, Executive Chairman, Amazon.com, Inc.

 Andy Jassy, President and CEO, Amazon.com, Inc.
 Keith B. Alexander, CEO of IronNet Cybersecurity, former NSA director
 Rosalind Brewer, Group President and COO, Starbucks
 Jamie Gorelick, partner, Wilmer Cutler Pickering Hale and Dorr
 Daniel P. Huttenlocher, Dean of the Schwarzman College of
Computing, Massachusetts Institute of Technology
 Judy McGrath, former CEO, MTV Networks
 Indra Nooyi, former CEO, PepsiCo
 Jon Rubinstein, former chairman and CEO, Palm, Inc.
 Thomas O. Ryder, former chairman and CEO, Reader's Digest Association
 Patty Stonesifer, President and CEO, Martha's Table
 Wendell P. Weeks, Chairman, President and CEO, Corning Inc.

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MERCHANT PARTNERSHIPS

In 2000, U.S. toy retailer Toys "R" Us entered into a 10-year agreement with
Amazon, valued at $50 million per year plus a cut of sales, under which Toys "R" Us
would be the exclusive supplier of toys and baby products on the service, and the
chain's website would redirect to Amazon's Toys & Games category. In 2004, Toys
"R" Us sued Amazon, claiming that because of a perceived lack of variety in Toys "R"
Us stock, Amazon had knowingly allowed third-party sellers to offer items on the
service in categories that Toys "R" Us had been granted exclusivity. In 2006, a court
ruled in favor of Toys "R" Us, giving it the right to unwind its agreement with Amazon
and establish its independent e-commerce website. The company was later awarded
$51 million in damages. In 2001, Amazon entered into a similar agreement
with Borders Group, under which Amazon would comanage Borders.com as a co-
branded service. Borders pulled out of the arrangement in 2007, with plans to also
launch its own online store.
On October 18, 2011, Amazon.com announced a partnership with DC Comics for
the exclusive digital rights to many popular comics,
including Superman, Batman, Green Lantern, The Sandman, and Watchmen. The
partnership has caused well-known bookstores like Barnes & Noble to remove these
titles from their shelves.
In November 2013, Amazon announced a partnership with the United States Postal
Service to begin delivering orders on Sundays. The service, included in Amazon's
standard shipping rates, initiated in metropolitan areas of Los Angeles and New
York because of the high-volume and inability to deliver in a timely way, with plans to
expand into Dallas, Houston, New Orleans and Phoenix by 2014.
In June 2017, Nike agreed to sell products through Amazon in exchange for better
policing of counterfeit goods. This proved unsuccessful and Nike withdrew from the
partnership in November 2019. Companies including Ikea and Birkenstock also
stopped selling through Amazon around the same time, citing similar frustrations over
business practices and counterfeit goods.
In September 2017, Amazon ventured with one of its sellers JV Appario Retail owned
by Patni Group which has recorded a total income of US$ 104.44 million (₹ 759 crore)
in financial year 2017–2018.
As of October 11, 2017, AmazonFresh sold a range of Booths branded products for
home delivery in selected areas.
In November 2018, Amazon reached an agreement with Apple Inc. to sell selected
products through the service, via the company and selected Apple Authorized
Resellers. As a result of this partnership, only Apple Authorized Resellers may sell
Apple products on Amazon effective January 4, 2019.

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LOGISTICS

Amazon uses many different transportation services to deliver packages. Amazon-

branded services include:

 Amazon Air, a cargo airline for bulk transport, with last-mile delivery handled
either by Amazon Flex, Amazon Logistics, or the United States Postal Service.
 Amazon Flex, a smartphone app that enables individuals to act as independent
contractors, delivering packages to customers from personal vehicles without
uniforms. Deliveries include one or two hours Prime Now, same or next
day Amazon Fresh groceries, and standard Amazon.com orders, in addition to
orders from local stores that contract with Amazon.
 Amazon Logistics, in which Amazon contracts with small businesses (which it
calls "Delivery Service Partners") to perform deliveries to customers. Each
business has a fleet of approximately 20–40 Amazon-branded vans, and employees
of the contractors wear Amazon uniforms. As of December 2020, it operates in the
United States, Canada, Italy, Germany, Spain, and the United Kingdom.
 Amazon Prime Air is an experimental drone delivery service.
Amazon directly employs people to work at its warehouses, bulk distribution centers,
staffed "Amazon Hub Locker+" locations, and delivery stations where drivers pick up
packages. As of December 2020, it is not hiring delivery drivers as employees.
Rakuten Intelligence estimated that in 2020 in the United States, the proportion of
last-mile deliveries was 56% by Amazon's directly contracted services (mostly in urban
areas), 30% by the United States Postal Service (mostly in rural areas), and 14%
by UPS. In April 2021, Amazon reported to investors it had increased its in-house
delivery capacity by 50% in the last 12 months (which included the first year of
the COVID-19 pandemic in the United States).

SUBSIDIARIES

Amazon owns subsidiaries companies, including Amazon Web Services, Audible,

Diapers.com, Goodreads, IMDb, Kiva Systems (now Amazon Robotics), Shopbop,
Teachstreet, Twitch, Zappos, and Zoox.

A9.com

A9.com, a company focused on researching and building innovative technology, has

been a subsidiary since 2003.

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Amazon Maritime
Amazon Maritime, Inc. holds a Federal Maritime Commission license to operate as
a non-vessel-owning common carrier (NVOCC), which enables the company to
manage its shipments from China into the United States.

Annapurna Labs
In January 2015, Amazon Web Services acquired Annapurna Labs, an Israel-based
microelectronics company reputedly for US$350–370M.

Annapurna Labs
Audible.com is a seller and producer of spoken audio entertainment, information,
and educational programming on the Internet. Audible sells digital audiobooks, radio
and television programs, and audio versions of magazines and newspapers. Through its
production arm, Audible Studios, Audible has also become the world's largest producer
of downloadable audiobooks. On January 31, 2008, Amazon announced it would buy
Audible for about $300 million. The deal closed in March 2008 and Audible became a
subsidiary of Amazon.

Beijing Century Joyo Courier Services

Beijing Century Joyo Courier Services is a subsidiary of Amazon and it applied for
a freight forwarding license with the US Maritime Commission. Amazon is also
building out its logistics in trucking and air freight to potentially compete
with UPS and FedEx.

Brilliance Audio
Brilliance Audio is an audiobook publisher founded in 1984 by Michael Snodgrass
in Grand Haven, Michigan. The company produced its first 8 audio titles in 1985. The
company was purchased by Amazon in 2007 for an undisclosed amount. At the time of
the acquisition, Brilliance was producing 12–15 new titles a month. It operates as an
independent company within Amazon.
In 1984, Brilliance Audio invented a technique for recording twice as much on the same
cassette. The technique involved recording on each of the two channels of each stereo
track. It has been credited with revolutionizing the burgeoning audiobook market in the
mid-1980s since it made unabridged books affordable.

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ComiXology
ComiXology is a cloud-based digital comics platform with over 200 million comic
downloads as of September 2013. It offers a selection of more than 40,000 comic books
and graphic novels across Android, iOS, Fire OS and Windows 8 devices and over a
web browser. Amazon bought the company in April 2014.
CreateSpace
CreateSpace, which offers self-publishing services for independent content creators,
publishers, film studios, and music labels, became a subsidiary in 2009.

FINANCE

Amazon.com is primarily a retail site with a sales revenue model; Amazon takes a
small percentage of the sale price of each item that is sold through its website while
also allowing companies to advertise their products by paying to be listed as featured
products. As of 2018, Amazon.com is ranked 8th on the Fortune 500 rankings of the
largest United States corporations by total revenue.
For the fiscal year 2018, Amazon reported earnings of US$10.07 billion, with an
annual revenue of US$232.887 billion, an increase of 30.9% over the previous fiscal
cycle. Since 2007 sales increased from 14.835 billion to 232.887 billion, thanks to
continued business expansion
Amazon's market capitalization went over US$1 trillion again in early February 2020
after the announcement of the fourth quarter 2019 results.

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TOP 10 ONLINE SHOPPING APPS

1. AMAZON

This website needs no introduction, and it is the king of marketplaces. By adding

new options every day, it is getting better. Name it, and they have it, be it household
products, electronics, clothing, books, furniture, etc. For some of its
products, Amazon offers same-day or one-day delivery. No wonder it is considered
to be the best online shopping website in India! Don’t forget to get your Amazon
Prime Video too!

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2. FLIPKART

Flipkart is a solution to all your daily needs. They have everything from clothing,
appliances, sports equipment, furniture to electronics as well. They offer heavy
discounts on most of the products and offer multiple payment options for your
convenience. With their amazing daily offers, they have gained huge success. But most
popular are their Diwali sales when their visitors increase by many folds.

Currently, they are developing their fashion category by adding new brands every day.
So no matter what you want, Flipkart has it covered. And now, you can choose from a
wide range of amazing Flipkart gift cards and express your affection to your friends
and loved ones. You can grab the top Flipkart coupons from our main website.

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3. MYNTRA

Myntra is the first name that comes to our minds when we think of online shopping.
This top player sells everything from luxury goods to makeup, accessories, and
clothing. Their significant sale events and extensive advertising have increased their
reach and made them a trusted site to shop online.

New brands are added to their website every day. Not to forget, exchanging or returning
products is very easy for them. Be it saree shopping or retro fashion, Myntra is one of
the most popular websites. No doubt, right now the brand is the #1 destination when it
comes to online fashion products purchase. Check out the page where you can grab the
best Myntra coupon codes to save on every purchase you make on the website.

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4. PHARMEASY

With the growing internet era, almost everything is possible online including doorstep
medicine delivery. Pharmacy is one of the pioneering leaders of the online e-pharmacy
market in India. It not only delivers medicines but also lets users book online tests,
virtual doctor appointments and much more. Having said that, the company is also sure
to provide par-excellent services at a reasonable price.

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5. BIGBASKET

BigBasket is an online food product and grocery provider. As our life gets busier and
tougher, it is tough to find time to go for grocery shopping. BigBasket understood that
and decided to make shopping easier for all the busy folks out there. It also gives out a
lot of offers and coupons using which people can save big. Order anything you want,
and they will deliver it to your doorstep. You can order bread, biscuits, oils, fruits,
potatoes, onions, heck even stardust (if it was a grocery) from them. And oh, don’t
worry about the quality. Their veggies and fruits are straight out of the farm.

In the time of lockdown due to the Coronavirus scare, the online grocery unicorn has
jumped up the ladder to become one of the most important e-commerce brands in India.

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6. PAYTM MALL

Who can forget Paytm? Every Indian has used this application in desperate times during
demonetization. It is a savior when you are out of cash, right? But it has much more to
it. You can also shop at Paytm Mall. Paytm Mall has every product you can think of.
Electronics, furniture, clothing, and much more. You can also take flight and movie
bookings there. The best part is that they have cashback offers going on all the time.

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7. SWIGGY

Feeling hungry and lazy? This feeling is very common and people these days in such a
situation prefer nothing but “online food ordering”. And, nothing can beat Swiggy and
its exemplary service when it comes to online food delivery. The platform collates all
the nearby restaurants and food joints, letting you choose your favourite one. So, no
need to drive all the way to the restaurant, just open the app and get ready to satisfy
your hunger needs with just a single click.

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8. GOIBIBO

Travelling has become easy with Goibibo. The platform is one of India’s largest online
ticket booking platform for a reason. Be it any city or town, you can now plan your
travel at a reasonable rate with Goibibo. It offers online hotel booking, flight booking,
train booking, bus booking and car booking. Using Goibibo, one can book an entire
travel package at the ease of fingertips.

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9. 1MG

Yet another stunning e-pharmacy company that is ruling the Indian market is 1mg.
With its extraordinary services and seamless customer support, it has become the go-
to online healthcare center of Indians. From online medicine ordering to online doctor
consultancy, you can avail many healthcare services using 1mg.

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10. NYKAA

In a short span of time, Nykaa has managed to become the beauty destination of India.
This online shop has everything that you can imagine. From soaps to luxury products,
they have it all. Over the years, they have collaborated with international brands and
exclusively launched them on their site. The most recent one is Huda’s beauty. They
also have a blog and a Youtube channel that shares useful tips and tricks. It is a perfect
place to shop for your cosmetics, personal hygiene, grooming, toiletries, and skincare
products, mostly at discounted prices.

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CHAPTER 3
LITERATURE REVIEW

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LITERATURE REVIEW

This chapter aims at exploring detailed information on major domains of the

dissertation topic by reviewing past research, books and related articles. Modern studies
and past theories concerning these domains are presented. These theories will be the
foundation for the dissertation. Since the major domains of research topic is Online
Marketing. The review of literature will revolve around these.

Online services will drive marketing to the opposite end of the spectrum from
“mass” marketing to customized “one-to-one” marketing. Online marketers
communicate instantly and directly with the prospective customers and can provide
instant fulfillment as well. Marketers with carefully designed World Wide Web sites
are already interacting computer to computer, with prospective customers or an
individual basis, much as ATM does in very primitive fashion. Online one to one
approaches while innovative and still glamorous in their pioneering aspects, offer
significant new challenges. The significant aspect is the access with the customers.
Communication and information technology development has encouraged the
emergence of new communication channels that have increased the options available
to organizations for building relationships with clients.

How important is Internet marketing to the success of an organization?

There are no exact answers for this question. It depends on the nature of one company
business line. There are many companies currently using the Internet as their main
business transaction such as DELL, AirAsia, etc… However, companies such as UPM,
the world’s leading forest products producer only uses the Internet as a media to
introduce the company and its products to customers via its website.

Besides that, during the whole purchasing decision making process, customers not
only use the Internet in isolation to search for products but other media such as print,
TV, direct mail and outdoor as well. These media still play an extremely important role
for the marketers to communicate with customers, for example, direct or face – to –
face marketing more or less helps marketers build up the trust in customers and
encourage them to purchase the products. Therefore, it is better to use the Internet as
part of a multi-channel marketing strategy which “defines how different marketing
channels should integrate and support each other in terms of their proposition
development and communication based on their relative merits for the customer and
the company.” (Chaffey et al. 2006, 5)

Mohan Nair (2011) takes social media as a complex marriage of sociology and
technology that cannot be underestimated in its impact to an organization marketing
communication, choice as to when to engage, how to manage and measure, and whether
to lead or to follow is complex but not an impossible task. These cannot be answered
simply by one formula because the context and the market dynamics are strong
variables in these decisions. Even though the interest for social media is huge, few

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companies understand what the term ―social media can mean to their businesses. But
how much it has been given importance, as an IMC tool, varies from region to region
(PricewaterhouseCoopers (PwC), 2009; BuddeComm & Chiltern Magazine Services
Ltd. (BCMSL), 2009).

According to research conducted by Nielsen, we know that 92% of consumers report

that “word-of-mouth and recommendations from people [they] know” are the leading
influence on their purchase behavior. Only 37% trust search engine ads, and just 24%
trust online banner ads. They trust their friends and family the most when looking for
brand recommendations. But what types of recommendations carry the most weight?
Brands are eager to tap into the power of recommendations, and many companies
measure an “NPS,” or Net Promoter Score, which illustrates how likely someone is to
recommend a specific brand or company. According to a U.K. study by Fred Reichheld,
“a 7% increase in word of-mouth advocacy unlocks 1% additional company growth.”
His research also shows that “a 12% increase in brand advocacy, on average, generates
a 2x increase in revenue growth rate plus boosts market share” and, conversely, “a 2%
reduction in negative word-of-mouth boosts sales growth by 1%.”

It is important to understand the relationship between digital communication and

traditional communication in the old media; for example, TV, radio, newspapers,
magazines and billboard ads, the communication model was and is one-to-many
compared to one-to-one or many-to-many communication model in digital media like
blogs, social networks, wikis and other social media (Chaffey, 2003).
The increased fragmentation of media and customers, as well as the revolution in mass
communication by the new communication channels – internet and mobile
communication technologies – has created the need for a new approach to marketing
communication that can ensure centralized management and a consistency of
communication messages sent towards various audiences (McArthur and Griffin, 1997;
Semenik, 2002; Smith, 2002).
Foux (2006) suggests Social media is perceived by customers as a more trustworthy
source of information regarding products and services than communication generated
by organizations transmitted via the traditional elements of the promotion mix

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CHAPTER 4
RESEARCH STUDY

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RELEVANCE OF STUDY

Companies of all sizes can generate higher revenue with less investment when
utilizing online marketing initiatives. And while that’s a great incentive it’s also
important to note that online marketing never closes. Your business is open 24/7 to a
global market, creating endless possibilities for engagement and revenue opportunities.

PROBLEM DEFINITION

 Business Analysis: Get a realistic idea about the existing state of business to
know where it stands and where you see it in short/long terms. The parameters
of such analysis includes strengths and weaknesses of the business, an overview
of the competition, and the challenges being faced or expected to be dealt with.

 Digital marketing potentials: Different areas of Digital Marketing can be

explored to achieve different types of objectives. Analyze those areas in the
perspective of your business to Identify the potentials of Digital Marketing that
are favorable to it. This will also help in exploring new dimensions of
progression and methodologies for addressing the shortfalls.

 Digital Marketing Integration: Based on what Digital Marketing can do for

your business. You should be able to understand the placement of digital
marketing in your business operations. On the basis of its standing in various
operations, you should determine where and how you can integrate it with the
respective departments.

OBJECTIVES OF STUDY

 To study and understand how Online Marketing can helps to generate more
leads to Amazon.
 To suggest strategies for the organization to use Internet for better effectiveness.
 To understand how internet is used as a marketing tool.

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HYPOTHESIS

A hypothesis is an idea which suggested as a possible explanation for a particular

situation or condition, but which has not yet been proved to be correct

H01 There is significant relationship between monthly income and product preference
to buy through Digital Channel.

H02 There is no significant relationship between Customer Satisfaction and product

buy through Digital Marketing.

SCOPE OF THE STUDY

This is relevant to the effectiveness of online marketing with special reference to

Amazon. From the research findings, it was revealed that online marketing is effective
in integrated marketing communication strategy of the organisation by increasing the
brand awareness, improves customer satisfaction, easy integration and management,
and facilitates automation of marketing activities. It was equally revealed that
integrated marketing online effectiveness can be measured using a number of metrics
including consumer interaction on site, number of repeated visit, sales volume and
profits among others.

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CHAPTER 5
RESEARCH METHODOLOGY

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WHAT IS RESEARCH?

Research means search for facts in order to find answers to certain questions or to
find solutions to certain problems. It is often referred to as scientific inquiry or scientific
investigation into a specific problem or situation.

DATA ANALYSIS METHOD

The data analysis of this research was represented on qualitative as well as

quantitative manner.

RESEARCH INSTRUMENT

Contacting the customer personally and studying the response from questionnaires
field.

DATA COLLECTION

PRIMARY DATA

Observation method, Interview method, and survey technique was used to collect
data through questionnaire. The primary is collected fresh and first hand and for first
time which is original in nature.

SECONDARY DATA

Secondary data from various magazine, newspaper, and other prominent source of
information collected from different website and search engines. Various tools and
techniques have been to graph and pie charts collecting from the website.

SAMPLING METHOD

In-Depth interview for this study was limited in my area, the interview was on the
consumers of Amazon and also for internet. The sample size was 25-50 for this study.
The random sampling size method was used for selecting samples.

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PLAN WORK

 Data collection and analysis (15 to 20 days)

 Writing and research project (10 days)

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CHAPTER 6
SWOT ANALYSIS OF AMAZON

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SWOT ANALYSIS OF AMAZON

SWOT analysis is a framework used to identify a company’s strengths,

weaknesses, opportunities, threats, and how the company can use them to be profitable.
A company can not control all the factors that it deals with, such as the outside threats
and opportunities, but it can still grow by identifying its strongest assets and improving
its efficiency by tackling its weaknesses.
Let us now start going through each aspect of the SWOT analysis of Amazon.

STRENGTHS OF AMAZON

Strengths are the internal factor of any company it helps us to know the advantage
of the company due to which they are being competitive in the market, it also includes
the operation and the positions or you can say its a reason why the company is doing
so well

 Brand Name: As we know that Amazon is one of the leading brands in the
world having a successful brand image and it shows the wealth of the company,
having a large number of subscribers with great popularity plus strong financial
performance.
 Consumer Trust: Around 89% of consumers are likely to shop on Amazon
and for a huge group of the public, Amazon is the priority when it comes to
online shopping, that’s the trust which the company has built with their
customers by providing them with a smooth online shopping experience.
 Go Global and Act Local strategy: The company has globally expanded in
more than 200 countries and all its operations and decisions related to the
product and services allow it to grow more international sales and strengthen
the company position.

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 Superior Logistics and Distribution Systems: Amazon uses its resources

such as distribution facilities, information systems in a very efficient and
effective way all over the location which makes their customers satisfied all
over the regions. They ensure the secure and fast delivery of your product right
at your doorstep and also have a return policy if the product got damaged due
to some reason.
 Wide Variety of products: Amazon provides a very wide range of products
and services, which fulfils the needs of every type of customer from a basic
buyer to a premium customer. The company has a lot of variety under each
category which helps them grab a huge customer base.

WEAKNESSES OF AMAZON

Weaknesses are again an internal factor and it shows the enigmatic aspect of
particle control. They have made some critical issues that may hinder their growth.

 Employee Morale: An article by Verge states that the workers of the

warehouse are unhappy with their work in the covid pandemic. The company
has faced multiple accusations regarding the critical, insensitive, and unfair
environment which demotivates the workers and can hamper the overall growth
of the company.
 Quality Focus: Amazon mainly has its eye on optimizing product search, new
offers, easy to buy, and have a good delivery speed as a result they don’t pay
more attention to the quality of the product which is being sold on their
platform.
 Seller Relationship: Sellers on Amazon are upset because of the fast delivery
demand, new development in the inventory store limits, and the increasing
numbers of competition from Amazon’s private label of products.
 Increasing Competiton and Lower Margins: Amazon offers a free shipping
facility over a certain order amount, which attracts customers but reduces the
margins of the company. Due to the price war caused by increasing competition,
Amazon’s margins are shrinking which is resulting in reduced profits.

OPPORTUNITIES OF AMAZON

The opportunity of Amazon is an external factor that mainly focuses on what could
a company do or at what position the company will stand on if they invest in it or just
implement it. Innovation is a reason and creativity are a few of the reasons for the
success of Amazon.

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 Expand Operations in developing markets: Amazon has untapped growth

opportunities in developing markets they can gain more consumers special in
rural and semi-urban areas in India. Expansion of the distribution system into
poorly connected geographic areas can be possible by a higher number of the
warehouse at every place and more expansion of the delivery system
 Podcasting: Recently, Amazon has started taking interest in podcasting. In
tandem with their Alexa and positive response from the public, this can be a
new market for the company to take over – using its in-house technology and
innovation.
 Helping small businesses: Recently Amazon has announced to help the small
busy by selling their products to customers, the main vision behind this is to
promote small and local businesses and fast track the growth of existing ones.

THREATS OF AMAZON

Another challenging factor for the company Amazon is a threat which is again
external factors and out of our reach and a competitive environment that has a risk and
threats to all types of businesses.

 Online Security: Increasing cybercrime may affect the security network or the
entire system of the company which may also affect the customer’s loyalty.
This is an extremely important part for Amazon to work on this aspect of online
security and their data management.
 Government Regulations: During the pandemic, the government has banned
the sale of non-essential stuff from amazon for avoiding the movement of the
delivery men, etc. – threatening Amazon’s growth both domestically and
internationally. Amazon had a great loss of around 400 million just because of
this policy.
 Competition: Amazon is a leading company that has gained a lot of marketing
share by making their customers satisfied but now it’s a trend of e-commerce
and every company is being digital just like Amazon and becoming its
competitor in the market just like Walmart did with their new e-commerce
platform.
 Fake/ Lack of reviews: The marketplace is cluttered with a wide variety of
products in each category. Unfortunately, the lack of reviews and ratings has
led to customers doubting the reliability of the platform. The company needs to
work on their online reputation as its importance has increased tremendously
over the years. If you wish to learn one of the most sought-after skills in
marketing, check out IIDE’s Online Reputation Management Course right now.

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CHAPTER 7
DATA ANALYSIS &
INTERPRETATION

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DATA ANALYSIS
The term analysis refers to the computation of certain measures along with searching
for patterns of relationship that exist among data groups.

The data after collection has to be processed and analyzed in accordance with the
outline laid down in research plan or research design. This is essential for a scientific
study and for ensuring that we have all relevant data for making comparisons and
analysis. Technically processing of data implies editing, coding, classification and
tabulation of collected data so that they are available for analysis.

Analysis particularly in case of surveys involves estimating the values of unknown

parameters of the population and testing of hypothesis for drawing inferences.

“Thus in the process of analysis, relationships or differences supporting or conflicting

with original or new hypothesis should subject to statistical tests of significance in order
to determine with what validity data can be said to indicate any conclusions.”

Analysis therefore may be categories as descriptive analysis and inferential analysis

which is often known as statistical analysis.

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DATA ANALYSIS BASED UPON PRIMARY DATA.

Table 01

Table showing gender of consumers.

Gender Responds Percentages (%)

Men 30 60
Women 20 40
Total 50 100

Figure 01

Pie chart showing gender of online consumers.

Gender

Male female

Interpretation

In the survey 60% of the respondents are male and the balance 40% are female which
indicates that men prefer online marketing than women.

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Table 02

Table showing age group of online consumer.

Age group Responds Percentage (%)

Child 4 8
Youngster 27 54
30-60 16 32
Above 60 3 6
Total 50 100

Figure 02

Graph showing age group of online consumer.

Age group
6% 8%

32%

54%

Child Youngster 30-60 Above 60

Interpretation

This analysis showcases the participation of people in the online marketing which
include 54% youngsters, 32% ofmiddle age and only 8% and 6% of children and senior
citizen respectively. That means the youngsters are more active in online shopping than
any other category of age group.

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Table 03
Table showing occupation of online consumer.

Occupation Responds Percentages (%)

Student 25 50
Service 10 30
Self employed 15 20
Total 50 100

Figure 03

Pie chart showing occupation of online consumers.

occupation

student sevice self employed

Interpretation

In the survey 50% of the respondents are students, 30% service and the balance 20%
are self-employed which indicates that students prefer online marketing more than
others.

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Table 04
Table showing knowledgeable about the use of internet.

Knowledgeable about use Responds Percentages (%)

of internet
Not Knowledgeable 0 0
SomeKnowledgeable 1 4
Knowledgeable 13 52
Very well Knowledgeable 11 44
Total 25 100

Figure 04
Figure showing knowledgeable about the use of internet.

Chart Title
14

12

10

0
Knowledgeable about use
of internet

Not Knowledgeable SomeKnowledgeable Knowledgeable very well Knowledgeable

Interpretation

This analysis showcases the participation of people knowledgeable about the use of
internet which include 52% Knowledgeable, 44% very well Knowledgeable and only
4% and 0% of Some Knowledgeable and Knowledgeable respectively.

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Table 05
Table showing frequency of being online.

frequency of being online Responds Percentages (%)

Very low 0 0
Low 1 4
Moderate 10 40
High 12 48
Very high 2 8
Total 25 100

Figure 05
Figure showing frequency of being online.

Chart Title
14

12

10

0
frequency of being online.

very low low moderete high very high

Interpretation

This analysis showcases the participation of frequency of being online which include
48% high, 40% moderate, 8% very high and only 4% low and 0% very low of
respectively. That mean there are people’s frequency of being online is high or than
others.

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Table 06

Table showing how often they shop online.

Respond Percentages (%)

Once in a week 6 14
Once in a month 25 58
Once in a 6 months 6 14
Once in a year 6 14
Total 43 100

Figure 06

Figure showing how often do they shop online.

Chart Title
30

25

20

15

10

0
frequency of onlie
shopping

Once in a week Once in a month Once in a 6 months once in a year

Interpretation

This analysis that 58% of the respondents shop in a month and others prefer shopping
once in a week, once in 6 months and once in a year in the same ratio of 14%.

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Table 07

Table showing which online website respondents prefer.

Websites Responds Percentages (%)

Flipkart 14 28
e-bay 8 16
Snapdeal 8 16
Amazon 20 40
Total 50 100

Figure 07

Figure showing which online website respondents prefer.

Website prefer

Flipkart e-bay Snapdeal Amazon

Interpretation

This chart shows that 40% prefer Amazon, 28% Flipkart and e-bay and Snapdeal both
prefer is 16%. This shows that participants prefer Flipkart and Amazon sites for online
shopping than other.

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Table 08

Table showing how respondents came to know about Amazon.

Responds Percentages (%)

Word of mouth 12 28
Print media 12 28
TV 6 14
Internet 13 30
Total 43 100

Figure 08

Figure showing how respondents came to know about Amazon

Responds how know about Amazon

Word of mouth Print media TV Internet

Interpretation

This analysis shows that 30% came to know about Amazon through internet, word-of-
mouth and print media contributed equal awareness but only 14% contributed
television.

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Table 09

Table showing what respondents prefer from buying online.

Products Responds Percentages (%)

Books 7 16
Electronics 18 42
Apparels 11 26
Fancy items 7 16
Total 43 100

Figure 09

Figure showing what respondents prefer from buying online.

Products

Books Electronics Apparels Fancy items

Interpretation

According to this data electronics 42% and apparels 26% are purchased form online
websites compared to books and fancy items 16%.Table showing how respondent rate
their overall Flipkart.

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Table 10

Table showing how respondent rate their overall Amazon.

Overall experience Responds Percentages (%)

Poor 2 5
Good 25 58
Average 10 23
Excellent 6 14
Total 43 100

Figure 10

Figure showing how respondent rate their overall Amazon.

Overall Experience

Poor Good Average Excellent

Interpretation

58% of the respondents rated overall Amazon experience as good, 33% felt the
experience average, 14% had an excellent experience and balance 5% rated their
experience.

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DATA ANALYSIS BASED UPON SECONDARY DATA.

 Organic Search
Over 50% of marketers say keyword rankings and organic traffic are the top
ways they measure the success of their SEO strategies. (HubSpot State of
Marketing Report, 2021) 71% of marketers say using strategic keywords was
their number one strategy for SEO. (HubSpot State of Marketing Report, 2021)
Google uses 810 unique SERP features. Of those, 161 are found on more than
0.2% of keywords. (seoClarity,
2020) (Source: https://www.hubspot.com/marketing-statistics)

 Conversion Rate Optimization (CRO)

Over 50% of marketers say keyword rankings and organic traffic are the top
ways they measure the success of their SEO strategies. (HubSpot State of
Marketing Report, 2021) 71% of marketers say using strategic keywords was
their number one strategy for SEO. (HubSpot State of Marketing Report, 2021)
Google uses 810 unique SERP features. Of those, 161 are found on more than
0.2% of (Source: https://www.hubspot.com/marketing-statistics)

 Ecommerce
Customers are around four times more loyal to eco-friendly businesses.
(Net0, 2021) Consumers are most frustrated with inconsistent brand messaging.
(MoEngage, 2021) 39% of B2B buyers want self-serve options. (Statista, 2020)
(Source: https://www.hubspot.com/marketing-statistics)

 Mobile Search
64% of SEO marketers call mobile optimization an effective investment.
(HubSpot Blog Research, 2021) The average American has access to more than
ten connected devices in their household. (Statista, 2021) Mobile devices,
excluding tablets, generated about half of all website traffic globally. (Statista,
2020) Mobile web traffic has consistently accounted for about half of all global
web traffic since the beginning of 2017. (Statista, 2020) Almost 25% of
companies invest in mobile optimization as a top SEO tactic. (HubSpot, 2020)
(Source: https://www.hubspot.com/marketing-statistics)

 Blogging
Short articles, less than 3,000 words, ranked third in the B2B content assets
that generated the best results in the last 12 months. (Content Marketing
Institute, 2021) 48% of companies that have a content marketing strategy
leverage blogging. (HubSpot Blog Research, 2021) 56% of marketers who
leverage blogging say it's effective and 10% say it generates the biggest return
on investment. (HubSpot Blog Research, 2021)
(Source: https://www.hubspot.com/marketing-statistics)

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CHAPTER 8
FINDINGS AND CONCLUSION

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FINDINGS

 Men prefer online marketing than women.

 Mostly youngsters are more active shopping online than middle aged persons,
children and senior citizens.

 Normally person knowledgeable about the use of internet.

 Student are normally preferring online shopping the other occupation.

 majority of the people shop online once in every month.

 Internet plays a vital role in providing awareness about online marketing

(Amazon).

 Electronic gadgets are the most widely purchased product online (Amazon).

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LIMITATION

 Nothing is free of cost, not even online marketing.

 The trust factor in online marketing.

 The issue of Internet fraud and cybercrime.

 Website breakdown and no internet access.

 Continuous updating required.

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CONCLUSION
The study concludes that consumers rely upon more than one medium in order to
enhance their brand related knowledge. It means that they use the combination of
various sources for making final purchase decision. Along with the traditional sources,
they heavily rely on modern marketing tool i.e. online advertising.

Consumers do require detailed information about the brand so as to evaluate its

strengths & weaknesses; this ample amount of information then saves their time by
allowing them to make the purchase decision quickly.

The study also reveals that main reason for growing importance of online marketing
is the increasing literacy about internet among people. They have identified that internet
is truly advantageous through which they can serve their various purposes mainly social
networking, online shopping & media sharing (photo, music, video). This efficacy of
internet has intensified their tendency of being online.

Today’s consumers strongly feel that every company must use this efficacy to
strengthen its marketing efforts. So that they will get motivated to use online marketing
with the intent of getting access to exclusive content about the brand and getting
discount and sharing their feedback about brand with the advertiser .

With the advent of internet technology, consumers’ preference towards traditional

marketing tools has decreased. Most popular traditional marketing tools are television
& print media. The major benefits of online marketing are its capability of interaction
between consumers and advertisers followed by availability of wide range of
information & ease of shopping. These benefits make online marketing superior than
traditional marketing.

But at the same time consumers are susceptible about the user-safety side of internet.
They feel that online marketing is unsafe as it may lead to increase in frauds & privacy
issue.

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CHAPTER 9
SUGGESTIONS FOR
FURTHER STUDIES

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SUGGESTIONS
Conclusion given above reveals that consumers use more than one medium to make
brand choice, therefore it is recommended that.

 Companies should mix & match various mediums to reach their desired target
audience. This will help to spread awareness among them and to influence
buyers behavior thus companies must formulate an effective Integrated
Marketing Communication plan where they can combine various tools to grasp
maximum prospects.

 It is also revealed that consumers have good enough knowledge about internet
technology and they are in favor of using online marketing, therefore it is
recommended that

 Every company big or small should grab this advantage and include online
marketing in their marketing efforts. Online marketing forms can be mainly
web marketing, E-commerce, social media marketing.

 Consumers find certain benefits in online marketing over traditional marketing;

therefore companies can spend more on online media rather than the traditional
tools.

 But along with its advantages, online marketing has certain limitations also,
limitations like possibility of fraudulent activities or privacy issues are beyond
control. Cyber crime can not be eradicated easily or completely therefore, it is
recommended that

 Companies should not rely entirely on online marketing; they must make it a
part of Integrated Marketing Communication strategy. As a result of which
limitations of online marketing will be covered as the other mediums will build
the required credibility and positive image about the brand. This credibility will
generate trust among consumers towards the brand.

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CHAPTER 10
BIBLIOGRAPHY

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REFERENCE

 www.wikipedia.com

 www.google.com

 www.slideshare.net

 Published articles.

 Research papers.

 Relevant papers, newspapers and magazine.

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CHAPTER 11
APPENNDICES

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QUESTIONNAIRE

1) Gender?
a) Men
b) Women

2) Age group?
a) Child
b) Youngster
c) 30-60
d) Above 60

3) Occupation?
a) Student
b) Service
c) Self employed

4) Knowledgeable about use of internet?

a) Not Knowledgeable
b) Some Knowledgeable
c) Knowledgeable
d) Very well Knowledgeable

5) Frequency of being online?

a) Very low
b) Low
c) Moderate
d) High
e) Very high

6) How often do you shop online?

a) Once in a week
b) Once in a month
c) Once in a 6 months
d) Once in a year

7) Which online sit you prefer to shop?

a) Flipkart
b) Amazon
c) e-bay
d) Snapdeal

65 | P a g e
Nihal Sanjay Kesalkar BBA 3rd Year.
 G.S College of Commerce & Economics Nagpur, 2021-22.

8) How did you come to know about amazon?

a) Word of mouth
b) Print media
c) TV
d) Internet

9) What do you prfer buying from amazon?

a) Books
b) Electronics
c) Apparels
d) Fancy items

10) How do you rate overall amazon experience?

a) Poor
b) Good
c) Average
d) Excellent

66 | P a g e
Nihal Sanjay Kesalkar BBA 3rd Year.