Rural marketing of consumer products in India

Project Abstract:Rural India has become the hot spot for the corporate firms in the recent times as urban markets are saturated with some many different categories of consumer products and also because of the fact that rural incomes are increasing. Marketing executives are constantly exploring the rural markets as they find rural markets as an ideal opportunity to expand their business plans especially at this phase of stiff competition where companies are facing tough times in market competition.This study provides the significant information on rural marketing process carried out by consumer durable and non-durable companies in order to market their products. This study even identifies the actual reasons for the failure of durable and non-durable companies while marketing their products.This study identifies the significant problems faced by companies in marketing their products to rural areas. This study even suggests marketing strategies and methods to be followed in order to overcome those problems.The quantitative research method is used in order to gather the information on rural marketing process from articles, case studies, web documents and journals that are already been reviewed by scholars. By using qualitative research method researcher conducted survey in rural areas of India and gathered the opinions of rural customers and companies on failure of consumer products in rural areas.

Table of contents

Chapter 11.1 Aim1.2 Objectives1.3 Introduction to the MarketingChapter 2Literature Review2.1 Overview on Indian Rural Markets2.2 Rural Marketing and State of Art2.3 Rural Market is indeed important2.4 Rural marketing- Exploring New Possibilities in Rural India2.5 Marketing approaches of companies in Urban Areas2.5.1 Overview of Social Networking Sites2.5.2 SWOT Analysis of Social Networking Sites2.5.3 Online Social Marketing2.6 Role of Social Marketing in Brand Awareness2.7 Success of Social Networking Sites2.8 Success of Popular Social Networking Sites2.9 Marketing approaches of companies in Rural Areas2.9.1 Communication and change of perception2.9.2 Proper communication in local languages2.9.3 Target changing perception2.9.4 Understanding social and cultural values2.9.5 Fulfilling customers needs2.9.6 Product promotion through celebrities2.9.7 Indian association2.9.8 Promotion through Indian sports teams2.9.9 Communicating about Indians2.9.10 Products for rural locations2.9.11 Using Indian names2.9.12 Indian brands2.9.13 Media communication2.10 Role of marketing strategies product success2.11 Integrated marketing communication strategyChapter 3Research Methodology3.1 Introduction to Methodology3.2 Classification of research methods3.2.1 Quantitative research method3.2.2 Qualitative research methodology3.3 Use of both methods3.4 Research Design3.5 Research Strategies3.6 Experimental3.7 The surveys3.8 The grounded theory3.9 Research Conduct3.10 The Reliability3.11 The validation3.12 Ethical issuesChapter 4Results and AnalysisChapter 5Conclusion, Future work and recommendations5.1 Conclusion5.2 Limitations5.3 RecommendationsChapter 6References

Aim & Objectives Rural marketing of consumer products in IndiaChapter 11.1 AimThe main aim of this research is to identify the different problems faced by the companies while marketing their consumer products in rural areas and to propose different strategies and methods to overcome those problems.1.2 ObjectivesThe main objectives of this research are To analyze the information on overview of rural marketing process To evaluate the information on failure reasons of consumer products in rural areas To identify the actual problems faced by consumer durable and non-durable companies in marketing their products in rural areas To study the marketing differences of company in approaching rural customers and urban customers To identify consumer behavior of rural customers towards company products To study different strategies and methods to the companies in order to overcome problems related to rural marketing process1.3 Introduction to the MarketingThere is a technological advancement in each and every sphere in the world. It can be the social, political, economical or cultural aspects. With these advancements, there are a number of changes that are being seen in a very drastic way. These are in the form of the quantity of the goods that are produced, the reduction in the costs, the higher expectations for the profits that are being expected and so on.There is a lot of importance that is being given to tap the unexplored markets in the world. The world has become a global village with regard to the computing and the communication technology. This is otherwise called as the Information technology. There is another cause that has further increased the competition levels in the market.They would be the liberalization in the case of the restrictions that are normally applied to the trades. It is important to note that the global markets are saturated, which is leading to the designing of the companies marketing strategies that are already in existence. They are also forced to look into the marketing that they are doing in the rural areas.This would greatly help them to tap the rural market, through which they have chances of spreading their business in a number of ways. The rural scenario has now changed and they are well aware of all the things that are existent. They demand standardized goods that are of good quality.They also seek these goods at a reduced price and from reliable sources. This is the reason why the rural markets are now becoming tougher to be handled and are becoming very competitive with each passing day. In case of the rural markets, the focus is laid down not only on the corporate houses, there are other policy makers and the planners too who have to be considered. There are the students, researchers, the teachers and others who have to be considered too.The art of marketing is the one that solely decides the way the product is being sold in the market. This is the way it is perceived. But it is actually a very complex process by which the whole thing happens. There are market driven things that are to be considered that include the production ad the consumption of these goods, the transportation charges that are involved, the logistics, the packaging, the storage of these goods, distribution and many more.There is famous Kottler, according to whom it is a social process in which the individuals and the groups get what they are seeking by the way of creating it, the offers that are made and the free exchange of the products that can happen. There is the American Marketing Association (1995) which stated that the process is a very complex one and it includes the planning and execution of the conception along with the pricing, promotion that would be needed and the distribution of these goods that are given in exchange to the goods that satisfy him adequately.It could be in the common view of the individual and the organization as well. They also said that this complex process is what the marketing process is, which is based upon a number of things that are the goals and the abilities of the producers.This way the producers give a marketing mix which is capable of meeting the demands of the consumers. This has to be done within the limits of the society too. There is another way to look at it. This would be based upon the satisfaction level of the consumers, which would be based on the needs and the wants of the consumers. One would have to look into how to be able to achieve this. Whatever be the motive of the producers, there are always financial profits and the social benefits too that they are looking for.According to what Drucker has to say (1958, p. 252), there is no purchasing power that is created with these marketing strategies. There are ways of converting the latent demand into the effective one, and there are ways to channelize the purchasing power in the direction that they would want to which would lead to a higher level in the economic activity.It has to be noted that the changes that are seen in the economic activity cannot happen without the changes that have to be made in the methods that are involved in the production process and the distribution that is seen in the population or the income levels.This implies that there is a direct relation that is existent in the marketing procedures and also the economic activity. Kotler (1958) was able to prove that marketing is the reason for economic growth in the case of the underdeveloped countries. But the definition of the rural marketing would be a tough one to give.This concept itself is used in a number of ways. They are actually evolved controversial ideas in the forums that have discussed about it. Though there are precise definition too that are given in this regard, there are changes that one would always want to make with it.

Overview on Indian Rural MarketsChapter 2Literature ReviewOverview on Indian Rural MarketsToday, this idea of business expansion in rural locations is taken more seriously even by the corporate firms and is a subject of discussion and strategy. Godrej, having a range of business from personal stuff to real estate business and whose chairman, Adi Godrej, does not hesitate to reveal that todays fast changing world does of globalization does not distinguish the gap between rural and urban lifestyle. People are smart and quality conscious irrespective of their place of living and want quality products and services from the companies.A survey by the National Council for Applied Economic Research (NCAER) confirms that the rural income levels are matching that f the urban level and quality of life is improving at a very faster pace in the rural areas. With the availability of a variety of products in any domain, buyers are more inclined towards quality and feature rich products rather than just paying and settling down for anything. Now the average rural income has gone up to 63% to 64% in 2001-2002, and in 2004-2005 it almost touched 66%.The rural middle class is on a rapid pace of growth with 12% as compared to its urban counterpart with 13% growth. Higher rural incomes are nothing but a whole new world of opportunities to the business firms. As far as sales of automobiles is concerned, rural India automobile sales account to $ 1.7 billion which includes sales of cars, scooters, bikes etc.It is no wonder that MNCs are taking high interest in rural India despite of the fact that international markets are facing stiff competition. Beverage giant Coke, accounts to 34% of rural growth as compared to just 24% of urban growth. Not only Coke but its biggest rival PepsiCo also showed great interest in the approach and took a wider approach to business.Rural Marketing and State of ArtThere is always confusion and this leads to an unclear understanding about the whole concept. Though rural marketing is a very fashionable subject, there are reasons as to why it has to be taken as a very serious topic of discussion in the case of the Indian scenario. There is a greater importance to it in India than in many other countries of the world. In India, there is the opening up of the domestic economy to all the other completion from the external sources that it can take. There is the increased purchasing power in the rural areas that have to be noted in the recent past. Thus, it calls for a better and clearer understanding about the subject as a whole.It can be rightly said that it would be a process of developing, promoting, pricing and distributing of the goods in the rural areas, which finally leads to the rural specific market, and then to the exchange of goods in the rural and the urban markets. This should be satisfactory to both the parties. This was earlier used as an umbrella term in order to describe the commercial transactions that are happening in the rural areas. But it started gaining more importance in the 1990s and that is when it got the term as rural marketing. There was increasing trend in the growth that was being seen in the industrial sector in India. There was more strength and more maturity that was being seen.The contribution to the GNP was found to be increased greatly. There was a new service sector that had come into play with the advent of these industrial changes that India started seeing. This was a good thing happening to the country as such. There were a number of development programs that were coming up both from the central government and the state government side. These were the main reasons behind all the socioeconomic progress that was being made in the country.Further, the economic reforms were seen to be rising at the same time. This was the time when there was an increase in the competition level that was being seen in the markets. Thus the rural market had come to grow in a very steady manner. There were a number of consumables and the other items that were being required in more qualities than in the normal cases. There are certain factors that have been identified for the market boom that was seen in the case of the rural markets. They include the following: There was a great increase in the population levels in the rural areas. This led to more demand in these places. There was a rural population of just 43.80 crores in the year 1971. This has gone up to 52.50 crores in 1981, and had further increased to 72 crores in 1994. There was prosperity in the agricultural sector. This was due to the rural incomes that had seen an increase in this period. There was a greater level of investment that was seen from the government that was being made. This way, there was a great deal spent on the rural development. There was a good communication system that started coming into the existence. There were a great number of people who could easily communicate with the people I the urban areas. This made the transportation, and other issues to be taken care of in a better way than before. There were increased levels of literacy that started coming into the fore. This lead to the people wanting to lead more sophisticated lives than they had been earlier living in. There was also the increased level of the foreign goods that had come in to the existence and they were easily made available to the rural market too. The changes that were made in the tenure system of the lands were another reason for the change in the ownership pattern that was earlier existent. This is one reason why there were changes in the purchasing patterns that were seen.In spite of all these things that are happening, there are other things are still to be thought about. There are many weaknesses that the Indian scenario has to compete with. There are the weaknesses as put forth by Jha on this topic. They would be as follows: Talking in terms of the people who are participating in the whole process, there are a number of people who are actually not involved or exclude from the privilege of using these rural markets. They include the people who are from the rural poor. When talking in terms of the products that are in use, they are usually for the tangible goods and there are certain basic needs that are actually ignored. There are products like health, drinking water, education, housing and other similar ones that are being ignored. It is only those goods that are economically giving gains are taken care of in the rural market and not the others. There are not many criteria that are talked up as for the development of the market centers. There are the roles of the various parties involved to be considered which a much ignored side of the market is. The norms of the behavior liabilities of the parties are something that has not been talked about at all. This is with regard to the various parties that are involved in the process. It is not done even with regard to the conventional goods. When we talk about the outcomes, the marketing literature is one of the most neglected areas. This is seen at a greater rate in the rural market.Through all these, what is trying to be told is that there was important given only to th9ose areas with which the rural people are involved in, like the tractors and the fertilizers. This would actually be totally opposite to the urban settings where there are a number of things that are actually happening and are being taken care of. There are modern inputs and there are highly costly inputs that are being made use of in the urban market. They make more surpluses for the urban consumers, though they are only ten percent of the rural consumers.The term rural marketing has different meanings that are being given by each of the authors. This way there are a number of interpretations that one would want to know of. There is a set of concepts that have come from the US, which is made solely on the experiences that were seen in the Latin American regions, the African and the Asian countries. They tell us a lot about the rural marketing in detail.It is true that that India does live in her villages. There are a lot of consumers who are present in the villages than in the cities. There are profitable ways of farming and there are better options to market your products in order to make things successful. There are a number of potential consumers that you can find in these villages. They would be in need of the consumables, the durable and also the Fast Moving Consumer Goods. The size of the market and the profitability would depend on the level of development that has been made by the village in the agricultural sector. There are other things too that have to be considered.It would include the development of the facilities that are present in the villages. There are a number of things that the villagers want to consume. It ranges from the soaps that are branded to the drinks like Pepsi that is branded too. They would also want to have the tractors and the other goods that would help them in agriculture. The producers still have a feel that it is only the urban areas that would give those profits and not the rural areas. It is for them to understand that it is the rural market more than the urban one that is more profitable to them.It is very interesting to see that there is a steady increase in the rural market share. There were a number of goods that were earlier sold less than 20 percent in the rural markets. These numbers have changed now and there are more of them being sold out. They are absorbed in a better way than they used to be earlier. There is a change in the demand pattern too in the rural areas. The mega marketers have now understood that it is important for them to reach the rural market. This would be the road to greater success.This is another reason why they have greater levels of profits that are coming in to the huge producers who are reaching the rural markets. There are trends that are indicating that there are the rural markets that are coming up in a big way. They are the ones that make the big producers to think twice before ignoring them. It is actually growing in a faster rate than the urban market.The rural market is found to grow at twice the rate of the urban ones. The mains are the kitchen gadgets that are being more in demand. They include the refrigerators, the pressure cookers, and the grinders and so on. This is because they are all now having middle incomes, so that they can afford all the goods to make their lives more comfortable in many ways. There are lower middle income groups found in the rural areas than in the case of the urban areas.This is why the companies should try to target the rural market more in order to gain more profits. This is the reason why the rural India is expected to be growing double with respect to the markets. There was a study that was conducted with regard to the ownership trends that were seen with the various goods. This was found to divide the durables in to three categories which would be: The necessary goods like the transistors, the bicycle, and the watches and so on. The emerging goods like the television, the recorders, and more. The lifestyle products which include the refrigerators, and more.The producers are seen to be more dependent on the rural markets for the first two cases, while there are other things in the third category which are expected to be growing much more and bringing in profits to the producers.There is a huge population that is actually involved in the rural market. There is 12 percent of the world population that is actually involved juts in the rural India. There are more than 126 million houses that are to be taken into consideration. The purchasing power in the rural market has gone up. It is somewhere between 30 and 50 percent. This is supposed to be increasing much more in the next few years. There is immense competition that is being faced in this market. There is a huge amount that is being spent in the urban market for the marketing procedures.Though this is the case, there is the rural market that is in much more of a demand than in the urban areas. This is one reason why the producers are having to think more why having to put in more money for the urban marketing than in the case of the rural scenario. This would be one big thing that the companies would have to think about before investing huge sums in the urban markets. They would as well prefer to go to the rural market when it is more profitable.Television is one of those things that have made a great difference in the market scenario. The reach of the markets through the advertisements is the best way to reach the rural markets. This would be an easier way for the producers to deal with both the rural and the urban markets as well. This is something that has been very successful in changing the way that the people in the rural areas see things. There are changes in the perceptions that they had. There is change that is happening in the way they want to lead their lives.When they come to know that they too can make their lives simples with all the things that are being shown on the television, they are certainly excited about it and want to try them out, when they know it is affordable to them. This is a good trend to be seen. It not only helps the producers, but it also helps in the growth of the country. Keeping this in the mind there are the products that are being tailor made for these populations. There are the rural population vehicles that have come up. There are the watches that have come up from Titan in order to cater to the needs of the rural, with lower prices. This is how much the rural market can influence the producers.Rural Market is indeed importantThe rural market is booming in terms of opportunities which they give to the corporate sector. In total consumption of Fast Moving Consumer Goods, Rural India has 55% share in it. From the year 1993 to 1998, Rural India had a growth of near about 14% per annum.As per the data equipped by (NCAER) National Council for Applied Economic Research showed a crystal clear rural market boom. It has been clarified that rural growth has certainly outrun the urban by the chief economist of NCAER. Therefore, occupancy in the rural market has become a necessity. If a company wants to survive then it must go rural. Research by NCAER in 1998-1999 has shown:(i) Rural markets for group I durables (less than Rs.1000: items, such as bicycles, pressure cookers, transistors, wrist watches and many more); (II) for group II durables (Rs. 1001 to Rs. 6000: items, such as cassette recorders, mixers, sewing machines, B&W TVs) will beat the urban market by 2001-2002; (iii) Rural markets for group III durables (Starting from Rs. 6001 or higher: items, such as washing machines, two-wheelers, refrigerators, TVs) will be quiet smaller than urban market in 2006-2007; and clearly displayed that (iv) on large base group I & II, growth rates of rural market are much higher than urban markets. Also, the NCAER has shown that is now seeing an abrupt shift towards rural households.It has been predicted that the lower income class will come down to 20% in 2006-07 from 60% in 1994-95. On the other hand, the higher class will see an increment. The rural economy has triggered. The food grain production has been boosted by about 1980 to 1999 along with the procurement prices. This shows and implies the growth of rural demand for the goods and prosperity. The rural FMCG (Fast Moving consumer Goods) market will also boom as per the NCAER data.Some great facts about the rural market:

In India, the number of supermarkets (42,000) has exceeded the number of retail stores (35000) in the United States. In the year 2001-2002, LIC sold 55% of its policies in the rural India. 50% of BSNL mobile phone connections are in rural India. Around 20 million people has registered with rediffmail and out of those, 60% belong to small towns. More than 50% of one Lac who have made online shopping on Rediff are from rural India. The (KCC) Kisan Credit Cars(24 Million) issued in rural India has certainly exceeded the Number of Debit plus credit cards (17.7 Million) issued in Urban areas. The number of higher and middle income families (Earning Rs. 70,000+ annually) in rural India (21.7 Million) and Urban India (24.2 Million)are almost same. The electricity consumed by the agricultural department has clearly showed a steep increase of 11.6% of total consumption from 17.6% in 1980-81 to 29.2% in 1999-00. In the same course of time, industry share faced a drop of 23.6% from 58.4% to 34.8%.

Rural marketing- Exploring New Possibilities in Rural IndiaAny market requires consumers with spending power. Home to nearly seventy percent of its 1.1 billion population, India's 0.65 million villages are a veritable treasure trove for any company worth its name. With economic recession affecting the global economy, many companies have started scouting for new markets offering growth potential and India's untapped rural market has captured the attention of many companies domestic and foreign. Starting with the introduction of economic reforms in 1991, there has been a tremendous change in the lifestyle of the rural Indian. Rural marketing would be the buzzword in marketing circles in the future.The 700 million rural population with their diverse desires, aspirations and needs present a formidable challenge to any marketer who would like to get a share of the rural Indian market. People who formulate rural Indian marketing strategy should have a thorough knowledge and understanding of the divergent tastes of various people in different geographic locations of the country. Companies would have to work out different tactics and strategies to attract the rural Indian customer. The advent of technology and government's thrust on rural areas in the last decade has resulted in a dramatic change in the social fabric and economic conditions of Indian villages.The advent of liberalization, opening up of the telecommunication sector, allocation of Rs.600 billion for laying roads to connect 190,000 villages, agricultural reforms in the last decade, NREGS, easy access to credit, insurance coverage for crops and credit cards to farmers have all boosted the rural economy. This has augmented the income levels of the rural Indians that is reflecting in the increased consumption rate. Spending pattern of the rural Indian has undergone a tremendous change in the last decade.In recent times it has become a rage among companies to market their products in rural areas. However, rural marketing is not just offering goods and services for sale in the villages. Companies should develop, promote, price and distribute products tailored to meet the needs of rural Indian men and women. This involves a subtle understanding of the rural Indian psyche. It will then result in flow of goods and services between both urban and rural markets leading to fulfillment of consumer needs and also achievement of business objectives.More often than not, companies tend to mistake rural marketing for agriculture marketing while there exists a subtle difference between the two. Rural marketing is the offering of processed products and services specific to rural consumers while agriculture marketing is the marketing of rural produce to the city dwellers and industrial customers. Approximately 66% of India's population resides in the villages and contributes 33% of India's GDP. This is what captivates the attention of business organizations.As per the National Council of Applied Economic Research ( NCAER), India has the most potential rural market in the world. One fact reveals the power of the rural Indian market there are 47,000 haats ( rural Indian equivalent of a super market) in rural India compared to the 35,000 super markets in USA. Rural India contributes to 53% of the total FMCG sales and 59% of consumer durable sales like television sets, refrigerators, mobile phones etc.The future sustenance of the companies will depend on the improved connectivity between villages and availability of economic opportunities. The number of low and middle income households in rural India is twice that of urban areas. High income households in the urban areas are 1.5 times more than that of rural areas. The middle and high income households in urban India are expected to grow by approximately 30% as per a study done by NCAER. The middle and high income households in rural India are expected to register definite growth in the future.Earmarking of Rs.300 billion for the NREGS in FY 2009 worked wonders for rural India. It provided year round employment to about 4470 million rural Indian families and created 2.15 billion man days during the past three years. This huge infusion of government funds into the rural areas has led to a lot of companies focusing on the rural market. 12 lakh of the 27 lakh projects that have been taken up under the aegis of the NREGS have been completed during the last three years and this has led to increase in income levels of the rural households. NREGS has also instilled confidence among the rural masses. Payment for work done in NREGS is credited to the individual's back account.Opening of bank accounts has boosted the self-esteem and confidence levels of the rural Indians. They are now saving money and also opting for life insurance and health insurance products. In the last decade, there has been a huge inflow of private and government funds in to the rural areas and this has resulted in economic prosperity. Therefore, the number of middle and high income households in rural India would be relatively higher than in urban areas.The advent of modern means of communication and transport has bridged the gap between rural and urban India to a great extent. Mobile phones, satellite television, easy access to Internet, improved road & rail connectivity has led to increased interaction between urban and rural masses. It has been noticed that the desire to lead a sophisticated life is increasing with the rising literacy rates in rural India. Agricultural reforms and change in the land ownership pattern has resulted in considerable change in the spending pattern of the rural Indian population.Increasing incomes, improved infrastructure and huge population has made rural India a potential market offering huge benefits. Some of the interesting facts that provide an insight into the huge untapped potential of the rural Indian market are: Life Insurance Corporation of India (LIC) is India's largest life insurance company. 55% of its policies were sold in rural India. 18 million is the approximate number of debit cards and credit cards issued in urban India while 24 million Kisan Credit Cards have been issued to farmers in rural areas. Rs.520 billion is the amount sanctioned for these credit cards. Half of BSNL mobile phone connections are in rural India. The number of households with annual income exceeding Rs.70,000/- is almost the same in rural and urban India. Half of the people who transact on Rediff.com online shopping site are from small towns and rural areas. More than half of the people who have signed up for Rediffmail are from non urban areas. Mobile banking will reduce establishment costs and other expanses. It will enable banks to increase their reach, expand customer base and make banking much more feasible. Though mobile banking is registering impressive growth in urban areas recently, it is still in a nascent stage in the rural areas. If broadband penetration improves, mobile banking is set to register an impressive growth and is expected to be worth more than 500 billion dollars by 2011. As per an Associated Chambers of commerce and industry report, the individual income levels in rural areas is expected to double in three years.Marketing approaches of companies in Urban AreasMarketing approaches of companies in Urban AreasIn order to market the products in rural areas companies use different types of internet marketing options such as follows:Overview of Social Networking SitesAccording to Dwyer et al (2007), SNS stands for social networking sites that offer communications between users from mobiles and PCs. Social networking sites embrace different types of online communities which distributes information individual activities. Usually, there are 650 social networking sites over the world and among them few are admired and widely used by users. Famous social networking sites are Twitter, MySpace, Facebook, Orkut, MSN and YouTube etc.In views of Boyd (2004) social networking sites are used for different purposes to perform chatting, information sharing, making friends, personal and professional communications and product marketing etc. Users involved in social networks will allocate information and experiences with other users by using social networking sites.Steeler (2008) stated that entities using social networking sites belong to different groups based on the nature of information used and pooled within the social networks.Leading Socialisers:Individuals using social networking sites to make friends in order to abuse other users belong to this group.Attention Seekers:The entities using social networking sites to alter the information and photos of other users belong to attention seekers category.Followers:The individuals using social networking sites in order to pursue their friends and companies fall under this category.Functional users:Distinct user using social networking site for specific purpose are known as functional users.Focused Users:Client using social networking sites for official and business purpose belong to this category.SWOT Analysis of Social Networking SitesZarrella D (2010) stated that social networking sites have equal strengths, weaknesses, opportunities and threats that are explained in detail as follows:Strengths:

Good market command and access with massive number of community people Broad range of communications and information contribution Face to Face contacts by straight communications Cost effective process with high media exposure Good demand of online markets High publicity with popular member login Free of cost and easy mechanism Enormous network contactsWeaknesses: Lack of excellent isolation and security options Low retention rate Alien and unwanted abuses High possibility of harassments Online scams and threats Unavailability of authentication processes Problems related to health Erroneous information directionsOpportunities:

Online employment opportunities Association edifice among consumers and firms Endorsements and trials Vast environmental marketplace Employment prospects to individuals Brand Awareness Constant interactions Wide range of applications, games and news Information processing through search engines Professional online marketing tool Enhanced opportunities to market developmentThreats:

Offensive privacy and security options Competitor upshots Incorrect campaign Attacker abuses Hazardous messages from surplus users Reduction in market shareOnline Social Marketing

Online social marketing process includes different types of online marketing resources such as follows:Search Engine CampaignThese days, internet marketing process is playing key role in individual lives and many users are depending on internet for different purposes especially on search engines in order to find appropriate product according to their preferences.Text Messages through Mobile phonesAlong with internet mobile phones are widely used by many users over the world. The text messages forwarded from mobile phones will spread fast when compared with other devices. Customers can send feedback to their friends on the products and goods purchased recently that directly amplifies the awareness of particular company brand.Role of Social Marketing in Brand AwarenessFerguson, (2008) acknowledged that viral marketing process is playing key role in creating brand awareness among the customers. Companies are using social marketing process as an alternate for general marketing process because social marketing builds creates product awareness among the customers. The product or service message will be conveyed from one customer to the other depending on the product interest of existing customers.Lindgreen & Vanhamme, 2005; Dobele et al. (2007) specified that social marketing process is playing vital role in developing and sustaining the economical standards of companies that are using internet marketing process. Before implementing social marketing process, companies should first identify the advantages and disadvantages of them in order to manage the sudden changes takes place in future. Social marketing process attracts the customers on the way towards particular products of the companies that allows them to fulfil their goals.In views of Dobele et al (2005), social marketing can be considered as the special type of technique which can be utilized to amplify brand awareness among the customers in order to sale their products and goods. Messages specified in the social networking sites will spread in the form of virus from place to other that multiplies continuously.keting is not only the process of marketing products to the new customers by using old customers feedback, but it is the process of supporting the product with existing customers in order to erect trust among network.

Success of Social Networking SitesAccording to the views of Nicole (2007), social networking sites are widely used by different communities of people and they are successful in building communications among the people over the world. Social networking sites are used for personal and professional uses according to the user requirements. Social networking sites process the communications of products between the users and companies in order to create brand awareness among the customers. Nowadays, most of the companies are using social networking sites as an alternate marketing resource on behalf of traditional marketing process.In views of Shih (2009) social networking user numbers are increasing day and day and for this reason the demand of marketing process on social networking sites is increasing rapidly. Social networking sites are building relation between customers and companies and are supporting them to market their products and goods.Especially, communities and pages in the social networking sites are emerging continuously and each and every small and large company are depending on social networking sites in order to market their products. By using these social networking sites companies are trying to approach the customers with their new products in order to build relation with them. Social networking sites are not only marketing the products but they are even promoting the offers and packages offered by the companies which are allowing the users to find the information on the required products Weber (2009)Social networking sites are more successful in providing the product and company information to the users and they are working as information search engines to find appropriate products and goods among the internet. Social networking sites have effected traditional and media marketing resources and they are leading the top position in marketing process. Companies are getting more number of potential customers from social networking sites and are successful in marketing their products and goods through online. Social networking sites are having many benefits such as customer loyalty, recruitment benefits, brand utility, low costs and high customer influence (Borges, 2009).According to the views of Zarrella (2010), in the earlier period, internet and its resources are used only to send and receive messages through emails and find required information from it. But according to the technological advancements and developments, social networking sites came into existence and totally changed the history of internet.Success of Popular Social Networking SitesLacy and Hernandez (2009) stated that Twitter is one of the successful social networking site widely used by many users among the internet. Twitter includes different posts related to opinions and views of persons or companies on any aspects. The different types of personal and professional activities are included in twitter. Companies are using twitter in order to tweet the messages and information about their products and services to the users to reach end customers.The important information on products of the companies will be included in the tweet and the companies are sending their product information to the customers by using these tweets. The tweets posted in the twitter will be communicated between the customers and the companies through which customers can communicate and share their information on products with the companies and alternate users. Twitter is widely used by the companies in order to sale their products through internet marketing and create their brand awareness among the customers (Chaffey, 2003).Google and Yahoo are competing themselves in supporting their users with required information on the products and services of the specific companies. Google is the biggest search engine in the world that allows the people to find any type of information at any time from any location with free of cost. Google is the only search engine among the internet which is used by millions of users per day in order to find the required information according to their search.In order to allow their customers to reach their companies easily, they are using Google search as one of the best marketing resource. Google can be considered as the successful social media search engine supporting wide range and customers and companies equally. On the other hand, Yahoo is one of the other biggest social media search engine used by the users in order find and share information about different aspects. Companies are even using Yahoo network in order to market their products to the users (Stroud, 2007).In views of Ricadela (2007), YouTube is one of the other biggest social networking sites in the world that includes audio and video based information on different aspects. Most of the companies are uploading the audios and videos of the information related to their company products and goods in YouTube in order to promote them online. YouTube is another successful social networking site that markets huge numbers of products and goods related to different companies.Smith (2010) stated that Facebook is one of the biggest social networking sites in the world which is widely used by many persons for different purposes. Facebook is having high number of visitors when compared with other social networking sites. Companies give first preference to Facebook in order to market or promote their products because it is the biggest social networking site that is connecting people all around the world.The companies involved in Facebook marketing process will not only market their products but they even share information on experiences and feedbacks of the existing customers on their products which is known as social marketing process. Finally, when compared with the other networking sites, Facebook is the successful social networking site marketing huge number of company products to the customers (Brinlee, 2007).