ECOMMERCE

FILE

SUBMITTEDBY:
NITESHPILWAN
2k11MRCEMBA
4thSemester
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MBA
ECOMMERCE
Electroniccommerce,commonlyknownasecommerce,isatypeofindustrywherebuying
sandsellingofproductorserviceisconductedoverelectronicsystemssuchastheInternet
andothercomputernetworks.Electroniccommercedrawsontechnologiessuchasmobile
commerce,electronic funds transfer,supply chain management,Internet marketing,online
transactionprocessing,electronicdatainterchange(EDI),inventorymanagementsystems,and
automateddata collectionsystems.Modern electronic commerce typically uses the World
WideWebatleastatonepointinthetransaction'slifecycle,althoughitmayencompassa
widerrangeoftechnologiessuchasemail,mobiledevicessocialmedia,andtelephonesas
well.
Electroniccommerceis generallyconsideredtobethesales aspectofebusiness.Italso
consistsoftheexchangeofdatatofacilitatethefinancingandpaymentaspectsofbusiness
transactions.

Ecommercecanbedividedinto:

Etailingor"virtualstorefronts"onwebsiteswithonlinecatalogs,sometimesgathered
intoa"virtualmall"

ThegatheringanduseofdemographicdatathroughWebcontactsandsocialmedia

ElectronicDataInterchange(EDI),thebusinesstobusinessexchangeofdata

Email and fax and their use as media for reaching prospective and established
customers(forexample,withnewsletters)

Businesstobusinessbuyingandselling

Thesecurityofbusinesstransactions
Ecommerce(orelectriccommerce)referstothebuyingandsellingofgoodsandservicesvia
electronicchannels,primarilytheInternet.Onlineretailis
decidedlyconvenientduetoits24houravailability,global
reachandgenerallyefficientcustomerservice.

Atypeofbusinessmodel,orsegmentofalargerbusinessmodel,thatenablesafirmor
individualtoconductbusinessoveranelectronicnetwork,typicallytheinternet.Electronic
commerceoperatesinallfourofthemajormarketsegments:businesstobusiness,businessto
consumer, consumer to consumer and consumer to business.
Ecommercehasallowedfirmstoestablishamarketpresence,ortoenhanceanalreadylarger
marketposition,byallowingforacheaperandmoreefficientdistributionchainfortheir
productsorservices.OneexampleofafirmhavingsuccessfullyusedecommerceisBorders.
Thisbookstorenotonlyhasphysicalstores,butalsohasanonlinestorewherethecustomer
canbuybooks,CDsandDVDs.

Customers expect a certain standard of website design and usability, especially when
shoppingonecommercewebsites.Ifyoumaketoomanydesignandfunctionalitymistakes,
youwillnotonlylosecustomers,youwillharmyourlongtermreputation.Fortunately,most
mistakesarerelativelyeasytofix.Ifyouwanttoimproveyourcurrentecommercesite,or
yourethinkingofcreatinganewsite,herearesomeofthemostcommondesignmistakesto
avoid.
1.InformationOverload
Althoughitstemptingtocrameachpageespeciallythehomepagewithyourredhot
productsandpromotions,youdontwanttovisuallyoverloadyourvisitors.Makeagoodfirst
impression. Avoid popups, animated graphics, and background music. A clean, self
explanatorystructureismorelikelytoconvertvisitorsintocustomers.
2.PoorProductDescriptions
Toomanyecommercestoresfeaturegeneric,uninspiring,andmeagerproductdescriptions.
Makesureyouanswerallthequestionsashoppermayaskaboutaproduct.Useemotive
languagethatstirsemotionsinthereader.Andhighlighttheproductbenefitsdontjustgive
alistoftechnicalfeatures.
3.LackofErrorReporting
Its very frustrating for shoppers when a page error occurs during site navigation.
Technically, its easy to set up notifications when unexpected errors occur. Ask your
webmaster to install automatic email alerts if a 404 (page not found) error occurs, for
example.Thenfixit.

Electroniccommercereferstoawiderangeofonlinebusinessactivitiesforproductsand
services.Italsopertainstoanyformofbusinesstransactioninwhichthepartiesinteract
electronicallyratherthanbyphysicalexchangesordirectphysicalcontact.
EcommerceisusuallyassociatedwithbuyingandsellingovertheInternet,orconducting
anytransactioninvolvingthetransferofownershiporrightstousegoodsorservicesthrough
acomputermediatednetwork.Thoughpopular,thisdefinitionisnotcomprehensiveenough
tocapturerecentdevelopmentsinthisnewandrevolutionarybusinessphenomenon.Amore
complete definition is: Ecommerce is the use of electronic communications and digital
informationprocessingtechnologyinbusinesstransactionstocreate,transform,andredefine
relationshipsforvaluecreationbetweenoramongorganizations,andbetweenorganizations
andindividuals.
[[

ECOMMERCE:BENEFITSANDLIMITATIONS

Electronic Commerceor E commerce is the buying and

selling of products by using electronic means such as the internet and other computer
networks. It is the commercial transaction that involves transfer of information over the
internet.
Ecommerce is changing the way we do business. Here are some of the benefits and
limitationsofecommerce.
Advantagesofecommerceare:
EconomicalandLowerCost:
Ecommerceisaneffectivemediumofdoingbusiness.Apersondoesntneedtosetupa
businesspremise.Unlikebrickandmortarbusinessenvironment,inecommercethereisno
needtosetuppremises.
BetterCustomerService:
Ecommerceensuresbetterandquickercustomerservice.Onlinecustomerserviceallows
quickersatisfactionofcustomerneedsandmakingthecustomerhappier.
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BetterComparativeAnalysis:Ecommerceallowsabettercomparativeanalysisofdifferent
products.Thisisbecausetoday,almosteveryproductisavailableonline.
RoundtheclockAvailability:
ECommerceallows247availabilityofproductsandservices.Apersoncantransactatany
pointoftime.Ecommercehasthuseliminatedtherestrictionoftime.
LimitationsofEcommerceare:
TechnologicalLimitations:
Technologicallimitationsofecommercehaverestrictedalargenumberofpeoplefromusing
ecommerce.Internethasnottouchedthelivesofeverycommonman.
Unsuitableforperishableitems:
Ecommerce is not suitable for perishable goods and services. Perishable goods require
proper
storage
and

warehousing. For such items people always prefer conventional mode. For purchasing
perishablegoodslikefooditemspeoplegenerallypreferconventionalshoppingmode.

Security:
Securitycontinuestobeanissuewhenitcomestoecommerce.Onlinebusinessesarenot
trustedbythecustomersastherehavebeenmanycasesoffraudsandfaultypayment

IMPORTANCEANDUSESOFECOMMERCE
1.ExploitationofNewBusiness
Broadlyspeaking,electroniccommerceemphasizesthegenerationandexploitationofnew
.businessopportunitiesandtousepopularphrases:generatebusinessvalueordomore
withless.
2.EnablingtheCustomers
ElectronicCommerceisenablingthecustomertohaveanincreasingsayinwhatproductsare
made,howproductsaremadeandhowservicesaredelivered(movementfromasloworder
fulfillmentprocesswithlittleunderstandingofwhatistakingplaceinsidethefirm,toafaster
andrt1oreopenprocesswithcustomershavinggreatercontrol.
3.ImprovementofBusinessTransaction
Electronic Commerce endeavors to improve the execution of business transaction over
variousnetworks.
4.EffectivePerformance
Itleadstomoreeffectiveperformancei.e.betterquality,greatercustomersatisfactionand
bettercorporatedecisionmaking.
5.GreaterEconomicEfficiency
Wemayachievegreatereconomicefficiency(lowercost)andmorerapidexchange(high
speed,accelerated,orrealtimeinteraction)withthehelpofelectroniccommerce.
6.ExecutionofInformation
Itenablestheexecutionofinformationladentransactionsbetweentwooremorepartiesusing
inter connected networks. These networks can be a combination of plain old telephone
system(POTS),CableTV,leasedlinesandwireless.Informationbasedtransactionsare
creatingnewwaysofdoingbusinessandevennewtypesofbusiness.
7.IncorporatingTransaction
ElectronicCommercealsoinco11'oratestransactionmanagement,whichorganizes,routes,
processesandtrackstransactions.Italsoincludesconsumersmakingelectronicpaymentsand
fundstransfers.
8.IncreasingofRevenue

Firm use technology to either lower operating costs or increase revenue. Electronic
CommercehasthePotentialtoincreaserevenuebycreatingnewmarketsforoldproducts,
creatingnewinformationbasedproducts,andestablishingnewservicedeliverychannelsto
betterserveandinteractwithcustomers.Thetransactionmanagementaspectofelectronic
commercecanalsoenablefirmstoreduceoperatingcostsbyenablingbettercoordinationin
thesales,productionanddistributionprocessesandtoconsolidateoperations aridreduce
overhead.
9.ReductionofFriction
ElectronicCommerceresearchanditsassociatedimplementationsistoreducethefriction
inonlinetransactionsfrictionsisoftendescribedineconomicsastransactioncost.Itcan
arise from inefficient market structures and inefficient combinations of the technological
activities required to make a transaction. Ultimately, the reduction of friction in online
commercewillenablesmoothertransactionbetweenbuyers,intermediariesandsellers.
10.FacilitatingofNetworkForm
ElectronicCommerceisalsoimpactingbusiness.tobusinessinteractions.Itfacilitatesthe
networkformoforganizationwheresmallflexiblefirmsrelyonotherpartner,companiesfor
component supplies and product distribution to meet changing customer demand more
effectively.Hence,anendtoendrelationshipmanagementsolutionisadesirablegoalthatis
neededtomanagethechainofnetworkslinkingcustomers,workers,suppliers,distributors
andevencompetitors.Themanagementof"onlinetransactions"inthesupplychainassumes
acentralroll.
11.FacilitatingforOrganizationalModel
Itisfacilitatinganorganizationalmodelthatisfundamentallydifferentfromthepast.Itisa
controlorganizationtotheinformationbasedorganization.Theemergingformsoftechno
organizationalstructureinvolvechangesinmanagerialresponsibilities,communicationand
informationflowsandworkgroupstructures.

TYPESOFECOMMERCE

B2B(BusinesstoBusiness)
Companies doing business with each other such as manufacturers selling to
distributorsandwholesalerssellingtoretailers.Pricingisbasedonquantityoforder
andisoftennegotiable.

B2C(BusinesstoConsumer)
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Businessessellingtothegeneralpublictypicallythroughcatalogsutilizingshopping
cartsoftware.Bydollarvolume,B2Btakestheprize,howeverB2Cisreallywhatthe
averageJoehasinmindwithregardstoecommerceasawhole.
Havingahardtimefindingabook?Needtopurchaseacustom,highendcomputer
system?Howaboutafirstclass,allinclusivetriptoatropicalisland?Withtheadvent

Ecommerce,allthreethingscanbepurchasedliterallyinminutes withouthuman
interaction.Ohhowfarwe'vecome!

C2B(ConsumertoBusiness)
Aconsumerpostshisprojectwithasetbudgetonlineandwithinhourscompanies
reviewtheconsumer'srequirementsandbidontheproject.Theconsumerreviewsthe
bids and selects the company that will complete the project. Elance empowers
consumersaroundtheworldbyprovidingthemeetinggroundandplatformforsuch
transactions.

C2C(ConsumertoConsumer)
Therearemanysitesofferingfreeclassifieds,auctions,andforumswhereindividuals
canbuyandsellthankstoonlinepaymentsystemslikePayPalwherepeoplecansend
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andreceivemoneyonlinewithease.eBay'sauctionserviceisagreatexampleof
wherepersontopersontransactionstakeplaceeverydaysince1995.
Companiesusinginternalnetworkstooffertheiremployeesproductsandservicesonlinenot
necessarilyonlineontheWebareengaginginB2E(BusinesstoEmployee)ecommerce.
G2G(GovernmenttoGovernment),G2E(GovernmenttoEmployee),G2B(Governmentto
Business),B2G(BusinesstoGovernment),G2C(GovernmenttoCitizen),C2G(Citizento
Government)areotherformsofecommercethatinvolvetransactionswiththegovernment
fromprocurementtofilingtaxestobusinessregistrationstorenewinglicenses.Thereare
othercategoriesofecommerceoutthere,buttheytendtobesuperfluous.

INTRODUCTION
TO
COMPANY

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AMUL
Amulis anIndiandairy cooperative, based atAnandin the state ofGujarat, India The
wordAmul() is derived from theSanskritwordAmulya(), meaning invaluable.
Thecooperativeisalsosometimesreferredtobytheunofficialbackronym:AnandMilk
UnionLimited.
Formedin1946,itisabrandmanagedbyacooperativebody,theGujaratCooperativeMilk
MarketingFederationLtd.(GCMMF),whichtodayisjointlyownedby3.03millionmilk
producersinGujarat.
AmulspurredIndia'sWhiteRevolution,whichmadethecountrytheworld'slargestproducer
ofmilkandmilkproducts.IntheprocessAmulbecamethelargestfoodbrandinIndiaand
hasalsoventuredintomarketsoverseas.
DrVergheseKurien,founderchairmanoftheGCMMFformorethan30years(19732006),
iscreditedwiththesuccessofAmul.

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HISTORY

TheKairaDistrictCooperativeMilkProducers'UnionLtd.wasregisteredon1December
1946asaresponsetotheexploitationofmarginalmilkproducersbytradersoragentsofthe
onlyexistingdairy,thePolson(brand)dairy,inthesmalltownofAnand(inKairaDistrict
ofGujarat).MilkProducershadtotravellongdistancestodelivermilk,whichoftenwent
sourinsummer,toPolson.Thepricesofbuffaloandcowmilkwerearbitrarilydetermined.
Moreover,thegovernmentatthattimehadgivenmonopolyrightstoPolsontocollectmilk
fromAnandandsupplyittoBombaycity.
Angered by the unfair and manipulative trade practices, the farmers of Kaira
approachedSardar

Vallabhbhai Patelunder the leadership of local farmer

leaderTribhuvandas K. Patel. He advised them to form acooperativeand supply milk
directlytotheBombayMilkSchemeinsteadofPolson(whodidthesamebutgavethemlow
prices).HesentMorarjiDesaitoorganisethefarmers.In1946,themilkfarmersofthearea
went on a strike which led to the setting up of the cooperative to collect and process
milk.Milkcollectionwasalsodecentralized,asmostproducersweremarginalfarmerswho
coulddeliveratmost12litresofmilkperday.Cooperativeswereformedforeachvillage
too.

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The Cooperative was further developed and managed by Dr.Verghese Kurienalong

withH.M.Dalaya.Dalaya'sinnovationofmakingskimmilkpowderfrombuffalomilkfor
thefirsttimeanywhereintheworldandalittlelater,alongwithKurien'shelp,makingitona
commercialscale,ledtothefirstmoderndairyofthecooperativeatAnand,whichwould
successfullycompeteagainstestablishedplayersinthemarket.
Thetrio's(T.K.Patel,KurienandDalaya's)successatthecooperative'sdairysoonspreadto
Anand'sneighbourhoodinGujarat,andwithinashortspan,fiveunionsinotherdistricts
Mehsana, Banaskantha, Baroda, Sabarkantha and Surat were set up.In order to combine
forcesandexpandthemarketwhilesavingonadvertisingandavoidcompetingagainsteach
other,theGCMMF,anapexmarketingbodyofthesedistrictcooperativeswassetupin1973.
TheKairaUnionwhichhadthebrandnameofAmulwithitsince1955,transferreditto
GCMMF.

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Achievementsofthe"AmulMovement"
1. Thedairycooperativeshavebeenabletomaintaindemocraticstructureatleastatthe
grassrootlevelwiththemanagementcommitteeofthevillagelevelunitelectedfrom
amongthemembersinmajorityofthevillages.
2. Thedairycooperativeshavealsobeeninstrumentalinbridgingthesocialdivideof
caste,creed,race,religion&languageatthevillages,byofferingopenandvoluntary
membership.
\

COMPANY

TheGCMMFisthelargestfoodproductsmarketingorganisationofIndia.Itistheapex
organisationoftheDairyCooperativesofGujarat.Overthelastfiveandahalfdecades,
Dairy Cooperatives in Gujarat have created an economic network that links more than
3.1millionvillagemilkproducerswithmillionsofconsumersinIndia.Thesecooperatives
collectonanaverage9.4 millionlitresofmilkperdayfromtheirproducermembers,more
than70%ofwhomaresmall,marginalfarmersandlandlesslabourersandincludeasizeable
populationoftribalfolkandpeoplebelongingtothescheduledcastes.
TheturnoverofGCMMF(AMUL)during201011was 97.74billion(US$1.8billion).It
marketstheproducts,producedbythedistrictmilkunionsin30dairyplants.Thefarmersof
GujaratownthelargeststateoftheartdairyplantinAsiaMotherDairy,Gandhinagar,
Gujaratwhichcanhandle3.0millionlitresofmilkperdayandprocess160MTsofmilk
powder daily.Amul Dairy established at Anand is the crown glory of the district. By
launching the milk business in a scientific way, the dairy heralded White Revolution in
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Gujaratwhichis wellestablishednow.Thedairyhasprovidedthefarmers animportant

sourceofsupplementaryincomethroughanimalhusbandry.Todayithasbecomeaworld
renownedorganisation.
On 18 Aug 2012, Vipul Chaudhary of Mehsana district's milk cooperative was elected
chairmanofGCMMF,followingacourt'sintervention

The Three
tier "Amul
Model
The Amul Model is a threetier cooperative structure. This structure consists of a Dairy
CooperativeSocietyatthevillagelevelaffiliatedtoaMilkUnionattheDistrictlevelwhich
inturnisfurtherfederatedintoaMilkFederationattheStatelevel.Theabovethreetier
structurewassetupinordertodelegatethevariousfunctions,milkcollectionisdoneatthe
VillageDairySociety,MilkProcurement&ProcessingattheDistrictMilkUnionandMilk
&MilkProductsMarketingattheStateMilkFederation.Thishelpsineliminatingnotonly
internalcompetitionbutalsoensuringthateconomiesofscaleisachieved.Astheabove
structurewasfirstevolvedatAmulinGujaratandthereafterreplicatedalloverthecountry
undertheOperationFloodProgramme,itisknownastheAmulModelorAnandPattern
ofDairyCooperatives.

ResponsibleforMarketingofMilk&MilkProducts

ResponsibleforProcurement&ProcessingofMilk

ResponsibleforCollectionofMilk

ResponsibleforMilkProduction

Amul
Themainfunctionsoftheamulareasfollows:

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Collectionofsurplusmilkfromthemilkproducersofthevillage&paymentbasedon
quality&quantity

Providing support services to the members like Veterinary First Aid, Artificial
Insemination services, cattlefeed sales, mineral mixture sales, fodder & fodder seed
sales,conductingtrainingonAnimalHusbandry&Dairying,etc.

Sellingliquidmilkforlocalconsumersofthevillage

SupplyingmilktotheDistrictMilkUnion

Thus,theVDCSinanindependententitymanagedlocallybythemilkproducersandassisted
bytheDistrictMilkUnion.
DistrictCooperativeMilkProducer'sUnion(DugdhSangh)
ThemainfunctionsoftheUnionareasfollows:

ProcurementofmilkfromtheVillageDairySocietiesoftheDistrict

ArrangingtransportationofrawmilkfromtheVDCStotheMilkUnion.

ProvidinginputservicestotheproducerslikeVeterinaryCare,ArtificialInsemination
services,cattlefeedsales,mineralmixturesales,fodder&fodderseedsales,etc.

ConductingtrainingonCooperativeDevelopment,AnimalHusbandry&Dairyingfor
milkproducersandconductingspecialisedskilldevelopment&LeadershipDevelopment
trainingforVDCSstaff&ManagementCommitteemembers.

ProvidingmanagementsupporttotheVDCSalongwithregularsupervisionofits
activities.

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EstablishChillingCentres&DairyPlantsforprocessingthemilkreceivedfromthe
villages.
Sellingliquidmilk&milkproductswithintheDistrict

Process milk into various milk & milk products as per the requirement of State
MarketingFederation.

Decideonthepricesofmilktobepaidtomilkproducersaswellonthepricesof
supportservicesprovidedtomembers.

StateCooperativeMilkFederation(Federation)
ThemainfunctionsoftheFederationareasfollows:

Marketingofmilk&milkproductsprocessed/manufacturedbyMilkUnions.

Establishdistributionnetworkformarketingofmilk&milkproducts.

Arranging transportation of milk & milk products from the Milk Unions to the
market.

Creating & maintaining a brand for marketing of milk & milk products (brand
building).

Providing support services totheMilkUnions &members likeTechnicalInputs,

managementsupport&advisoryservices.

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PoolingsurplusmilkfromtheMilkUnionsandsupplyingittodeficitMilkUnions.

EstablishfeederbalancingDairyPlantsforprocessingthesurplusmilkoftheMilk
Unions.

Arrangingforcommonpurchaseofrawmaterialsusedinmanufacture/packagingof
milkproducts.

Decideonthepricesofmilk&milkproductstobepaidtoMilkUnions.

DecideontheproductstobemanufacturedatvariousMilkUnions(productmix)and
capacityrequiredforthesame.

ConductlongtermMilkProduction,Procurement&ProcessingaswellasMarketing
Planning.

ArrangingFinancefortheMilkUnionsandprovidingthemtechnicalknowhow.
Designing&ProvidingtraininginCooperativeDevelopment,Technical&Marketing
functions.
ConflictResolution&keepingtheentirestructureintact.

Today,therearearound176cooperativedairyUnionsformedby1.25lakhdairycooperative
societies,havingatotalmembershipofaround13millionfarmersonthesamepattern,who
areprocessingandmarketingmilkandmilkproductsprofitably,beitAmulinGujarator
VerkainPunjab,VijayainAndhraPradesh,MilmainKerala,GokulinMaharashtra,Sarasin
RajasthanoraNandiniinKarnataka.Thisentireprocesshascreatedmorethan190dairy
processingplantsspreadalloverIndiawithlargeinvestmentsbythesefarmersinstitutions.
Thesecooperativestodaycollectapproximately23millionkgs.ofmilkperdayandpayan
aggregateamountofmorethanRs.125billiontothemilkproducersinayear

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TheAmulbrand
GCMMF(AMUL)hasthelargestdistributionnetworkforanyFMCGcompany.Ithasnearly
50salesofficesspreadalloverthecountry,morethan5000wholesaledealersandmorethan
700000retailers.
Amulbecametheworld'slargestvegetariancheeseandthelargestpouchedmilkbrand.
AMULisalsothelargestexporterofdairyproductsinthecountry.AMULisavailabletoday
inover40countriesoftheworld.AMULisexportingawidevarietyofproductswhich
includeWholeandSkimmedMilkPowder,CottageCheese(Paneer),UHTMilk,Clarified
Butter (Ghee) and Indigenous Sweets. The major markets are USA, West Indies, and
countriesinAfrica,theGulfRegion,andSAARCneighbours,Singapore,ThePhilippines,
Thailand,JapanandChina,andotherssuchasMauritius,Australia,HongKongandafew
SouthAfricancountries.ItsbidtoentertheJapanesemarketin1994didnotsucceed,butit
planstoventureagain.
InSeptember2007,AmulemergedastheleadingIndianbrandaccordingtoasurveyby
SynovatetofindoutAsia'stop1000Brands.

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In2011,AmulwasnamedtheMostTrustedbrandintheFoodandBeveragessectorinThe
Brand Trust Report,published by Trust Research Advisory.rediff.com; "India's top 20
brands:AmulisNo.1"

PRODUCTS
Amul's product rangeincludes milk powders, milk, butter,ghee, cheese,Masti
Dahi,Yoghurt,Buttermilk, chocolate,ice cream,cream,shrikhand,paneer,gulab jamuns,
flavouredmilk,basundi,AmulProbrandandothers.AmulPROisarecentlylaunchedbrown
beveragejustlikebournvitaandhorlicksofferingwheyprotein,DHAandessentialnutrients.
In January 2006, Amul launched India's firstsports drinkStamina, which competes
withCoca Cola'sPoweradeandPepsiCo'sGatorade. Amul also offers mithaimate which
successfullycompeteswithmilkmaidbynestlebyofferingmorefat%atlowerprice.
InAugust2007,AmulintroducedKoolKoko,achocolatemilkbrandextendingitsproduct
offeringinthemilkproductssegment.OtherAmulbrandsareAmulKool,alowcaloriethirst
quenchingdrink;MastiButterMilk;KoolCafe,readytodrinkcoffeeandIndia'sfirstsports
drinkStamina.

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Amul'sIcecreamsaremadefrommilkfatandthusareicecreamsinrealsenseoftheword,
whilemanybrandsinIndiasellfrozendessertsmadefromvegetablefat.
Amul'ssugarfreeProBioticIcecreamwonTheInternationalDairyFederationMarketing
Awardfor2007.

INTRODUCTION
TO
THETOPIC
(INTERNETADVERTISEMENT)

INTERNETADVERTISING

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DeliveringadstoInternetusersviaWebsites,email,adsupportedsoftware,textmessaging
and Internetenabled cellphones. Also called an "ad network" or "ad serving network,"
InternetadvertisingorganizationsactasamiddlemanbetweentheadvertiserandtheInternet
venuesthatdisplaytheads.Theyselltheonlinecampaigntotheadvertisersandthendeliver
theadstothesitesthatdisplaythem.Thesiteownersreceivearoyaltybasedtypicallyonthe
numberoftimesusersclicktheads(seeclickthroughrate).Suchorganizationsmayprovide
softwaretoolsthatenablecompaniestodelivertheirownads

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ONLINEADVERTISEMENT
Theinternethasbecomeanongoingemergingsourcethattendstoexpandmoreandmore.
The growth of this particular medium attracts the attention of advertisers as a more
productivesourcetobringinconsumers.

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Aclearadvantageconsumershavewithonlineadvertisementisthecontroltheyhaveoverthe
product,choosingwhethertocheckitoutornot.
Onlineadvertisementsmayalsooffervariousformsofanimation.Initsmostcommonuse,
theterm"onlineadvertising"comprisesallsortsofbanner,email,ingame,andkeyword
advertising,includingonplatformssuchasFacebook,Twitter,andMySpace.

TYPESOFINTERNETADVERTISING

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Displayadvertising:theuseofwebbannersorbanneradsplacedonathirdparty
website orblogto drive traffic to a company's own website and increase product
awareness.

Search engine marketing(SEM): a form of marketing that seeks to

promotewebsitesby increasing their visibility insearch engine result pages(SERPs)
throughtheuseofeitherpaidplacement,contextualadvertising,andpaidinclusion,or
through theuseoffreesearch engine optimization techniques alsoknownas organic
result.

Search engine optimization(SEO): the process of improving the visibility of a

website or a web page in search engines via the "natural" or unpaid ("organic" or
"algorithmic")searchresults.

Socialmediamarketing:theprocessofgainingtrafficorattentionthroughsocial
mediawebsitessuchasFacebook,TwitterandLinkedIn.

Emailmarketing:directlymarketingacommercialmessagetoagroupofpeople
usingelectronicmail.

Referralmarketing:amethodofpromotingproductsorservicestonewcustomers
throughreferrals,usuallywordofmouth.

Affiliatemarketing:amarketingpracticeinwhichabusinessrewardsoneormore
affiliates foreach visitor or customer brought about by the affiliate's own marketing
efforts.

Contentmarketing:theprocessofcreatingspecializedcontentsuchasinfographics,
blogarticlesandebookstoattractmorecustomers.

Inboundmarketing:involvescreatingandfreelysharinginformativecontentasa
meansofconvertingprospectsintocustomersandcustomersintorepeatbuyers.

Videomarketing:Thistypeofmarketingspecializesincreatingvideosthatengage
theviewerintoabuyingstatebypresentinginformationinvideoformandguidingthem
to a product or service.Online video is increasingly becoming more popular among
internetusersandcompaniesareseeingitasaviablemethodofattractingcustomers

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ADVANTAGESOFINTERNETADVERTISING

TargetabilityInternet advetisers can focus on users from specific companies, SIC

codes,geographicalregionsandnations.

TrackingMarketerscantrackhowusersinteractwiththeirbrandsandearnwhatisof
interesttotheircurrentcustomsandprospective

DeliverabilityandflexibilityInternetadisdeliveredinrelative24hoursaday,7
daysaweek,31daysamonth.

InteractivityAconsumercaninteractwithproduct,testtheproduct,andifheorshe
choosesto,buytheproducts

DISADVANTAGESOFONLINEADVERTISING
CustomersIgnoreAds
Consumersaresousedtoseeingadvertisingontelevision,hearingradiocommercialsand
flippingthroughadvertisementsinmagazines,they'vedevelopedanaversiontoallformsof
advertising.Thisisalsothecasewithonlineadvertising,whereconsumerscanavoidclicking
banner advertisements, bypass ads in online videos they watch and close popup
advertisementsassoonastheycomeupontheirscreens.Customersareincontrolofwhich
advertisingmessagestheywanttoclickandrespondto.

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ViewingProblems
Websitedowntime,lagsinwebsiteorvideoloadingandbrowsercomplicationscanreduce
thenumberoftimesconsumersseeonlineadvertisementsandhowwelltheyseethem.When
technicalissuesoccur,companieslosetheopportunitytobroadcastadvertisementsfortheir
productsandservicesandmaylosepotentialsales.Viewingproblemscanoccurbecauseof
problemswithawebsiteorifaconsumerisusingasmartphoneorothermobiledeviceto

viewawebsite,hasaslowconnectionspeedordoesnothavethecorrectapplicationsand
programsinstalledonhiscomputersforproperviewing.

ExpensiveAdPrices
Pricingforadvertisingonlinecanrangefrominexpensive$20amonthplacementsonlocal
parentingblogstothousandsofdollarsonpopularsitessuchastheNewYorkTimes.The
costforbanner,textandvideoadsvarydependingontheamountoftrafficandthetypeof
readershipawebsiteorblogreceives.Onlineadvertisingthroughpayperclickcampaigns
andsocialmediasitescanalsowreakhavoconacompany'smarketingbudget,potentially
yieldinglittletonoreturnoninvestment.

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ConsumersGetDistracted
Whencustomersvisitawebsite,theytypicallyhaveagoalinmind,whetherit'stocatchup
onthelatestcelebritygossip,readthenews,chatwithfriends,downloadmusicorshopfora
specificitem.Websitespresentcustomerswithvariousoptionsthatcaneasilydistractthem
andpulltheirattentionfromyouronlineadvertisements.

TooManyOptions
TheInternetoffersawiderangeofwebsitesonwhichcompaniescanplaceadvertisements.
Thiscanbeoverwhelming,especiallyforsmallbusinessowners.Withsomanyoptions,it's
difficult to narrow down the choices to the websites that will attract the most potential
customersandsales.Onceacompanyselectsawebsite,itisthenpresentedwithavarietyof

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AMULANDINTERNETADVERTISEMENT

AMULANDINTERNETADVERTISEMENT
Amulafteritsgreatsuccessthroughtelevisionandprintadvertisementnowhasturnedup
towardsonlineadvertisement.

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The Internet plays an increasingly important role in marketing, sale and promotional
activities.TheInternetshouldnotbeviewedsimplyasavehiclewhereadvertiserscanplace
advertising messages. Instead, the Internet provides companies with multiple formats for
interacting with customers. A key feature of the Internet is the ability to interact with
consumersinrealtime.TheInternet'simpacthasbeensoprofoundthatitischangingthe
entireinterfacebetweenorganisationsandconsumers.

Amul is also of the view to take the advantage of internet advertisements at a large
scale.Internetadvertisinghasbecomeanindispensablepartoftheirmarketingmodel.This
form ofadvertising ispervasive and popular for many important reasons. The consumer
publichasincreasinglygravitatedtowardtheInternetSuperhighwayforservicesthatwere
oncemainlydeliveredbyconventionalsources.Thefacilitationofinformationdissemination
andcommunicationhas,perhaps,seenthegreatestchangeinthisdimension.Theriseofweb

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basednews,theexpandingblogosphere,andtheskyrocketingpopularityofsocialnetworking
sites(tonameafew)have,inmanyways,displacedmoretraditionalformsofmediaand
communication. Concomitantly, new avenues for advertising have emerged the digital
billboards,storefronts,andoutletshoppingcentersthathavesprungupalongtheroadside.

Internetadsaredifficulttoavoid.Surfingthroughtheweb,theywilllikelyadornmostofthe
pagesyouview,seepintoyourinboxonaneardailybasis,andshowupinunprompted
windowsthatjumpoutfromthebrowser.

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Goingonlinehasallowedthecompanytomoreefficientlymeetitstarget.Thesaleshasgone
updrastically.

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Internetadsaredifficulttoavoid.Surfingthroughtheweb,theywilllikelyadornmostofthe
pagesyouview,seepintoyourinboxonaneardailybasis,andshowupinunprompted
windowsthatjumpoutfromthebrowser.
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