Mobile Marketing

Mobile marketing can be defined as the two or multi way communication and advertising of an offer between a company and its customers, using a mobile device.

When comparing mobile and mass marketing a few things come up. Mobile marketing has a bigger ability to deliver the message by a target’s location and it can measure and track responses better. Besides they can better target a consumer, and that targeting is less expensive.

The following points have a key marketing implication in using mobile marketing.

• Location specifying

• Portability

• Wireless feature

How and when customer will more easy adapt to the use mobile devices in marketing is discussed by a lot of people and they all give different answer, though it seems that the ease of use and the possible risks are important indicators. Thus two aspects of a mobile’s adoption are relevant for a manager, namely the perceived usefulness and usability. Some studies are discussed below.

Technology Adoption Model (TAM, model by davis)

This model is derived from the Theory of reasoned action also known as TRA. They say that the perceived usefulness and the ease of use will influence an individual’s attitude towards an innovation and finally will influence their adoption. The difference between the TRA and the TAM is that the TAM takes into account that a positive attituve is not always necessary for adoption. For example the norms and pressures of a person’s environment may also let him decide to adopt, as stated in the TAM2 model.

Theory of Planned Behavior (TPB)

They build up on the TRA model, but they also state that the right attitude towards adoption does not always result in action This is a result of social, environmental or personal behavioral controls, as well as of other resource related constraints.

Microsoft usability Guidelines (MUG)

How users of technology weigh the importance of five categories differently. These categories are: ease of use, personalization, promotion, content and emotion. They found the following results.

• Content more important for wireless website than for Internet websites.

• Ease of use an personalization are more relevant for wireless websites

• Promotion and emotion are less important for wireless websites.

Responders to mobile marketing are mostly males, young adults and teens, people with higher incomes and individuals who are using their mobile phone heavily. Thus mobile marketing does not work just as well on all sorts of people.

Additionally, the use of mobile marketing was the highest for entertainment, video products and music. Followed by food and drinks and than by personal care and beauty products.

The study also showed that the most effective tool was text messaging. This tool resulted in the highest response rates, followed by conducting mobile surveys. Mobile email, web and coupons are less effective when using mobile marketing.

Figure 1, pg. 123, shows a model of the use of mobile marketing. In this mobile the first stage is very important, since it is about the adoption of mobile technologies. Without this phase the rest of the model is irrelevant, since they would not use it. The adoption phase is followed by the need for recognition, information research, evaluating the alternatives, the purchasing of the item and than all post-purchase matters.

The model shows two really important issues, at first addressing how mobile marketing might apply the economic, sociological and psychological influences that might influence consumers’ decision making, at all the stages mentioned above. Secondly it states that also the influence of competition, product types and the integration with the general marketing strategy must be taken in to account.

It has come up that offline customers are less loyal than online customer, thus it might be useful shifting offline customers to online customers.

Strategy

3 different strategies can be identified when looking at the firm’s mobile marketing strategy. They can be seen from two dimensions, the degree of organizational transformation that is required, and the degree of change to the business model that is needed. The following three strategies result from that:

New business models

This strategy is to be used when both the degree of change to the business model needed and the degree of organizational transformation required is high. The firm should fundamentally change its structure and marketing strategy.

Reach and range

When both dimensions are at moderate level, this strategy should be used. With this strategy following actions might be needed, being: enhancing the product/service range, improving loyalty and increasing the reach of the customer.

Operational performance

This strategy is to be chosen when both dimensions are ranked low. This strategy is mostly about using mobile devices for productivity improvements of both the productivity as of the complete supply chain.

Table 3 shows a clear overview of all the methods that can be used in mobile media, and their advantages and disadvantages.

For managers, it is extremely important to balance the advantages and disadvantages of every method, consider the synergies among the method and what methods their competitors use.

Global view

Consumers in different countries differently receive mobile marketing practices. These do not only have to do with the ability of the devices, since also in the western world big differences can be seen. Thus it might be said that culture has a big influence on how mobile marketing is received.