Dissertation Project Report On A Study on the use of social media tools by Fashion Industry to market its products By Rhbab

Aujla A0102212006 MBA M&S Class of 2014 Under the Supervision of Dr. Anita Vinayak Department of Information Technology In Partial Fulfillment of the Requirements for the Degree of Master of Business Administration Marketing & Sales At AMITY BUSINESS SCHOOL AMITY UNIVERSITY UTTAR PRADESH SECTOR 125, NOIDA - 201303, UTTAR PRADESH, INDIA

DECLARATION

Title of Project Report A Study on the use of social media tools by Fashion Industry to market its products

I declare (a)That the work presented for assessment in this Dissertation Report is my own, that it has not previously been presented for another assessment and that my debts (for words, data, arguments and ideas) have been appropriately acknowledged (b)That the work conforms to the guidelines for presentation and style set out in the relevant documentation.

Date: Rhbab Aujla A0102212006 MBA M&S Class of 2014

CERTIFICATE

I Anita Vinayak hereby certify that Rhbab Aujla student of Masters of Business Administration M&S at Amity Business School, Amity University Uttar Pradesh has completed the Project Report on A Study on the use of social media tools by Fashion Industry to market its products

Dr. Anita Vinayak Department of Information Technology

TABLE OF CONTENTS

Chapters Chapter 1: Introduction Chapter 2: Review of the Literature 1.1 Review of researchers 2.2 Some important article Reviews Chapter 3: Research Methods and Procedures 3.1 Purpose of the Study 3.2 Research Design 3.3 Limitations Chapter 4: Findings 4.1 Summary of the Findings Chapter 5: Suggestions & Conclusions 5.1 Suggestions 5.2 conclusions Bibliography

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CHAPTER 1 INTRODUCTION

1.1. Social media Digital Media has over the last few years been at the forefront of many a marketing strategy spanning across a wide spectrum of sectors. Marketers are now beginning to understand the finer nuances of milking digital media in order to develop brands they represent. Of all the industries to learn that every company has to become a media company, the fashion industry wouldnt instinctively leap out as an early adapter. It has been built on telling the consumer what to wear and perpetuating the art of design. But, in fact, the fashion industry has embraced digital media and is basking in its new, more direct, relationship with its customers. It is using digital media to tell a much more interesting story about what it is offering, to take an enhanced version of its traditional runway presentation directly to the public, to all their customers to experiment with and customize their products and to learn what their customers are buying and arent buying, and why. Major brands like Gucci and Ralph Lauren have acted as technical evangelists in their own right by utilizing the services of the digital media to the hilt. Both these brands are now present on every possible digital platform; using them to engage their customers in more than just buying. With technology and digital space expanding and progressing at a breakneck speed; every year this digital space gives birth to new phenomena which can be capitalized on and used cleverly as a part of a brands marketing mix. Technological development has gained prominent stature in influencing companys processes and profitability. The birth of the internet and its previously unanticipated influence has given rise to several opportunities and has been researched in various subjects and defined in various terms. Nevertheless, there is a clear shortage of academic literature which gives insight into the impact of social media and web 2.0 tools in the context of fashion in India. Most of the academic literature is dedicated to the markets in the western world where internet penetration is not only higher but usage is more sophisticated and there is not enough literature on how consumers perceive fashion companies initiatives to influence their private space in India. Fashion firms were late adopters of social media, adopting it only during its second wave. This also gave rise to new platforms and refined communication. The unprecedented rise in use of smart phones and tablets and availability of mobile internet connection increased the penetration of social media, thus in its wake giving rise to new influencers in Fashion. It also opened doors for individuals who were considered outsiders and thus democratized how fashion was viewed and consumed.

THE MARKET FOR DIGITAL MEDIA

With projections of better than 6% growth over the next five years, it is widely believed that the media and entertainment sector is expected to continue with the success it has enjoyed over the past decade. Consensus forecasts suggest that most of the growth will come from new digital media that was designed from inception to be interactive (born interactive). This new media will be delivered through Internet and mobile platforms, unlike traditional media which, according to forecasts, will continue to confront a shrinking market. With the BRIC economies (Brazil, Russia, India, China) expected to grow about 14% over next few years, players operating in media and entertainment are also looking toward these markets for future growth
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opportunities. The future, according to conventional thinking, is in interactive media and in emerging markets. However, a closer look at the media sector paints a slightly different picture. Increasing digitization and more versatile media applications are likely to make the interactive component of traditional media a more attractive opportunity than new digital media in the foreseeable future EMERGING MARKETS WILL DRIVE GROWTH Globalization has presented some outstanding opportunities for the media and entertainment sector, and will likely be the primary source of growth for these companies in the near future. Today, major film studios earn most of their film and home video revenues from sales in foreign markets. The increasingly influential BRIC countries, along with a host of other emerging economies, will continue to drive growth. In contrast, more mature economies will experience a period of slower growth. While prices are generally lower in emerging economies, rising incomes, infrastructure improvements, and the potential for higher sales volumes can make these markets highly attractive in the long term. Strong macro economic expansion is driving growth in emerging markets. Infrastructure improvements, particularly in broadband and multichannel television, will also play an important role. Low penetration of both suggests that there is still substantial room for growth. Internet advertising, Internet access, and television services are expected to lead the increase in entertainment and media spending in these countries.

In BRIC countries, average spending on media and entertainment grew by 17.8% . The sectors expansion is expected to continue to outpace that of gross domestic product by a healthy margin, as the rising disposable incomes of an urban middle class translate into increased consumer spending in these categories. Online and mobile will only become more important to the future of media in these markets. Figure 1. Entertainment and media revenues in developed and developing countries: 20022012 Source: Wilkofsky Gruen Associates, June 2011 DIGITAL MEDIA CHANNELS ON THE RISE While the more established segments of the media and entertainment sector will continue to dominate, their growth is slowing substantially as consumers migrate to media delivered through digital and mobile channels. Digital and mobile distribution constituted only 5% of global media and entertainment spending in 2007. However, during the next five years, these revenues will
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account for 24% of the industrys growth and will constitute 10% of global media and entertainment spending in 2012. This growth will offset flat or declining growth in more established areas of the business. Companies are making bold plays to follow consumers into a more digitally oriented future. However, they continue to wrestle with the challenge of creating business models that can adequately monetize their investments. The current thinking in the sector is to look at emerging markets and new media. Emerging markets are expected to provide new growth opportunities for applications and solutions that are already in existence in developed markets. Further growth in developed markets is expected to be driven by new media based on mobile and broadband. However, we believe that new media will not be the primary growth driver for the media and entertainment sector. Consumers are increasingly turning to interactive channels to consume media. Though growth is expected to be flat in traditional media, it is unevenly distributed across segments and some types of media could see growth on par with digital media THE MEDIA AND ENTERTAINMENT SECTOR Can be classified into the following three segments: Going interactive: Represents traditional media sectors that historically used analog technologies but are beginning to use digital and interactive technologies to reach customers. Examples include interactive television Born interactive: Represents those sectors that are inherently digital and interactive, such as mobile and web Emerging: Represents new technologies that today hold only a negligible share of the market. This segment is expected to remain small in the near future and has not been considered for further analysis. Going interactive Interactive television and Film Interactive radio and music Interactive publishing services Born Interactive Interactive mobile Services Online media Emerging Interactive Pervasive computing and Media Web 2.0 services (Rich media search, video blogging, etc.) Virtual worlds Interactive gesture Interfaces Virtual reality and Telepresence

Business-enabling Applications Online interactive games Digital animation Simulation-based Applications

TRADITIONAL MEDIA REMAINS THE MOST EFFECTIVE OPPORTUNITY IN CHINA AND INDIA The analysis of emerging markets focused on the two most important developing economies, India and China. The Going Interactive segment in these countries is expected to grow by a robust CAGR of 28%, albeit on a smaller base than developed markets. The Born Interactive segment in emerging markets is also expected to provide double-digit growth. Rising penetration and increasing popularity of Internet and mobile-based applications are contributing to this growth. The main limiting factor today is the absence of the high-end infrastructure needed to run these devices and applications, a situation which will eventually change. The media market in China (the largest of the emerging markets) is expected to grow at a CAGR of 15% through 2012, which is slower than the expected growth rate of interactive services in the United States. Therefore, traditional media, as represented by the going interactive segment, remains the main opportunity in emerging markets. That said, these countries will also serve as good test beds for those media players who offer services in the born interactive segment. SOME AREAS WHERE THE DIGITAL NEW MEDIA CAN LEARN FROM THE TRADITIONAL OLD MEDIA TV is dead. Print is dead. Radio is dead. Outdoor is dead. However, somehow the majority of ad budgets go to those four media. Moreover, theyve been around for 70 years or more and clients processes have been built up around them. While Digital Media is the future and (increasingly) the present, there is still a lot that New Media can learn from Old Media. Here are five examples: 1. Trading Metrics vs. Performance Metrics: In Old Media GRP (Gross Rating Points) is the standard for trading. However, nobody really thinks that GRP planning is effective because it values frequency (how many times you reach people) equal to coverage (how many you reach), which they clearly are not. As we all know, it can be difficult to meet new people but your mother can call you 50 times a day. The value of advertising is in reaching people and a lot of money can be wasted if you spend too much on too few. Therefore, advertisers negotiate rates on GRP and rate performance on another, internal metric (usually cost per coverage in a narrower target than they declare). This is still valid in New Media. Theres too much emphasis on how you pay and not enough on how campaigns are delivering on goals. 2. Media Multiplier: Media complement each other and there are synergistic effects. A light TV campaign with support from Radio, Press and Outdoor will outperform a heavy TV campaign for the same budget. That doesnt change. CTRs (click-thru-rates), and Cost per Acquisition can vary widely according to other media activity (online and offline) and general brand awareness. 3. Client service: Why do so many New Media people seem to revel in telling clients about the Great Digital Threat and pointing out that their way of doing things is over? The role of a good salesperson should be to make the prospect feel more comfortable with what she is buying, not less so.
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4. Engagement: Its not all about clicks or immediate response, especially in categories with long product cycles. While digital media has been hyped as the super-accountable media in the past, social media is bringing this issue to the fore. While clients, Print and Event people DO understand the value of engagement, it seems that New Media people are going to have to switch paradigms somewhat. 5. Integration: Ad Agencies used to be full service. People learned how to work together for 30 years or so until the rise of specialist agencies forced a segmentation of the marketing world. While the agency world seems to have reversed the trend (there are now full service subsidiaries of specialist agencies) most New Media people seem to want to specialize as much as possible. Its still early days, we lack standards and nobody really truly understands whats going on. Integration will be a key success factor for at least the next decade or so. VARIOUS DIGITAL MARKETING TOOLS With the level of activity on the internet growing rapidly, the need for businesses to have a strong online marketing presence has never been greater. Consumers are spending an increasing amount of time online at work, at home and on their mobiles. Because of this, they expect to be able to access information quickly and easily. In order to be successful online, you need to ensure your website is easily found, easily navigated and easily remembered. To do this you will need a comprehensive online marketing strategy.

Social media marketing traditionally serves four main online marketing purposes: 1. To increase traffic to your website via Facebook posts, tweets, YouTube videos and so on 2. To track perceptions about your brand in the market place (Twitter and Facebook search) 3. To find, interact, engage and hopefully sell to captive audiences/customers 4. As a customer service tool SEGMENTS OF SOCIAL MEDIA MARKETING: PRIMARY EXECUTION Brand Website: According to a study based on companies such as Levis, Procter and Gamble, Kraft, and L'Oreal, the analysis revealed that, on average, 80% of visitors to their websites are consistently high and medium value customers, proving that websites are, in fact, a critical customer touch-point and are effective in building brand, increasing purchase intent, and streamlining marketing initiatives.

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Promo Website : Its an online resource to promote, market the brand, product, service, and events. The main distinguishing features of a promotional site is a stylish, creative and dynamic design with flash movies, and the main feature is the development of the logo and its positioning with further support and refinement. Achieving these objectives is achieved by attracting a high number of visitors. Creating a promotional site to quickly and clearly state their product on the Internet. Creating site of this kind is very timeconsuming process that requires great efforts of specialists from various branches of internet technologies and internet marketing.

Email Marketing : Email marketing is directly marketing a commercial message to a group of people using email. In its broadest sense, every email sent to a potential or current customer could be considered email marketing. It usually involves using email to send ads, request business, or solicit sales or donations, and is meant to build loyalty, trust, or brand awareness. Email marketing can be done to either cold lists or current customer database. Broadly, the term is usually used to refer to: 1. a merchant with its current or previous customers, to encourage customer loyalty and repeat business. 2. ose of acquiring new customers or convincing current customers to purchase something immediately, 3. Adding advertisements to email messages sent by other companies to their Customers

Display Rich/Interactive Marketing : Interactive Marketing allows customers and prospects to participate in the process of building a brand's image in a certain market or target group's minds. Thanks to the consumer's ability to "interrupt" a brand's communications and to complement or modify to fit his or her perception, the process of building the brand itself is crowd sourced among its main target group, with or without the brand manager's intervention.A brand that only communicates is having a monologue and may not be heard actively by its audience. Interactive Communications take place when both sides pay attention to the
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other, and a dialogue exists. Basis for a good interactive dialogue is the ability to interrupt the other party at any time. Social Media Platforms : Internet tools like Youtube, Twitter, and Facebook are increasingly changing the way media is being produced distributed and consumed. Unconventional social media platforms like blogs are also redefining journalism these days where individuals are expressing their opinions on relevant issues. Most of the fashion firms today have their accounts on Facebook, Twitter and similar social media platforms through which they interact with their customers and inform them about their upcoming collections, events etc.

SECONDARY EXECUTION

Ad Network : An online advertising network or ad network is a company that connects advertisers to web sites that want to host advertisements. The key function of an ad network is aggregation of ad space supply from publishers and matching it with advertiser demand. The phrase "ad network" by itself is media neutral in the sense that there can be a "Television Ad Network" or a "Print Ad Network", but is increasingly used to mean "online ad network" as the effect of aggregation of publisher ad space and sale to advertisers is most commonly seen in the online space. The fundamental difference between traditional media ad networks and online ad networks is that online ad networks use a central Ad server to deliver advertisements to consumers, which enables targeting,

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tracking and reporting of impressions in ways not possible with analog media alternatives.

Geo targeting :Geo targeting in geo-marketing and internet marketing is the method of determining the geo-location of a website visitor and delivering different content to that visitor based on his or her location, such as country, region/state, city, metro code/zip code, organization, IP address, ISP or other criteria. A common usage of geo targeting is found in online advertising, as well as internet television with sites such as iPlayer and Hulu restricting content to those geo-located in specific countries (also known as digital rights management). SEO : Search engine optimization (SEO) is the process of affecting the visibility of a website or a web page in a search engine's natural or un-paid search results.In general, the earlier (or higher ranked on the search results page), and more frequently a site appears in the search results list, the more visitors it will receive from the search engine's users. As an Internet marketing strategy, SEO considers how search engines work, what people search for, the actual search terms or keywords typed into search engines and which search engines are preferred by their targeted audience. Optimizing a website may involve editing its content, HTML and associated coding to both increase its relevance to specific keywords and to remove barriers to the indexing activities of search engines. App-vertising : Advertisers are beginning to take advantage of the richness and flexibility of interfaces such as the iPad to develop ads that have much more in common with apps than traditional commercials. It is a new form of Brand Positioning for companies to utilise by promoting their brand through a downloadable mobile application. The new innovation could finally harness what has always been a tantalising but frustrating potential of Mobile Advertising.

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CHAPTER 2 REVIEW OF THE LITERATURE

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1. P. Sri Jothi, M. Neelamalar and R. Shakthi Prasad (2011) In his study they have shown effective communication strategy in developing brand communication and to find the impact of interaction through these communication media amongst Indian users. The research study adopted survey and content analysis to identify the reach of the brand among its target audience, ways of impact, usage of social media tools and access to these forms of communication.

2. Noor-e-Hira Naveed (2012) The study revolves around the Role of Social Media on Public Relation, Brand Involvement and Brand Commitment in the context of Pakistan. The study used a descriptive research design collecting data from 300 respondents to find out relationship between brand image and consumer purchasing behaviour. It concluded a significant role of social media on public relations, brand involvement and brand commitment. 3. Per E Asberg (2009) He has analyzed the evaluation of brand performance using social media among consumers. A descriptive research was undertaken that presented ways companies were using blogs and other social media platforms to cost efficiently understand and track brand buzz. 4. Dan Shaver (2007) His research established that customers are being influenced by social media. In order to attract customers positively towards a product, a company needs to build a strong social media presence. Building a strong social media presence requires engaging with the target demographic, building relationships that help brands build their trust and their business. 5. Rajeev Kumar (2008) His research established that social media has enabled consumers to form stronger opinions and express them more broadly about a specific product or a brand. Social Media has provided a richer base of knowledge for the consumers before going through a purchasing process. 6. Barthelemy, S., M. Bethell, T. Christiansen, A. Jarsvall & K. Koinis. 2011. The Future of Print Media He studied the challenges the print media is facing and the future of print media. The study talks about how the newspaper (printed) is already becoming out of date, since most people watch and read the same news stories with the help of New Media. The rise of internet usage is another factor for this kind of a trend and also the time spent by users reading online or in social media
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sites such as Facebook, Twitter. The new media, being cheaper, interactive and flexible, is posing challenges to the traditional media: 1.) Publications are struggling with the profound disruptions brought on by the Internet and the rising cost of newsprint and transportation. 2). Decline in readership which in turn leads to loss in advertisements. However, the study concludes that there are still complementarities between the new media and conventional media. They will continue to coexist and reinforce each other particularly in developing countries. 7. Tinus de Jager-New media versus traditional media (January 2011 The study talks about how traditional media houses are losing circulation numbers and advertising revenue internationally. With internet has shown strong growth, cell phones have shown a much higher penetration in the market, making it an ideal source for reaching untapped markets by advertisers and marketers. 8.. Ali Salman et al Studied the advent of new media posing a challenge to conventional media. This paper looked at the present situation of conventional media, especially print newspapers vis--vis. the new media. There is a drop in circulation, because the younger generation prefer the new media as they are more interactive compared to the online version of mainstream. The study talks about The Internet as a global new medium. People have their own Internet connections, so they can read newspapers online, thus squeezing revenues from advertising especially at a time of global economic slowdown. However, the study concludes that the new media and conventional media will continue to coexist and reinforce each other.

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CHAPTER 3 RESEARCH METHODOS AND PROCEDURES

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3.1: Purpose of the research:

RESEARCH OBJECTIVES: Aim: To study the rise of new social and digital media tools, channels, and influencers and impact on fashion marketing and selling. A consumer perception study is done so as to find out responses to a varied set of questions related to brand perception, dialogue with brands, rise of new social media influencers and their influence on fashion sales. 1.2 Objectives: 1. To analyze the impact of brand communication through social and digital media Channels. 2. To understand the brand awareness and perception with respect to the fashion industry. 3. To study the impact of social media tools on fashion marketing and selling. 3. To see the impact of digital media on the path of purchase.

1.3 Research methodology: 1. Research design: Exploratory Research design. 2. Sources of data: Secondary sources: The researcher has used secondary data to offer insight and relevant information, which may be sufficient to solve the marketing questions. Secondary data may be useful as a reference base to compare research findings too. The various sources of secondary information I have used are as follows: Internet, magazines, newspaper articles other fashion guides. Trend reports, research studies by organizations such as AT Kearney, McKinsey, Deloitte etc.

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3.3Methods of data collection Secondary data.

1. Secondary data Some data are gathered from existing source of information which were collected various other form of information and data. These data served as secondary. Sources of these data are Companys website Journals Publication and articles Previous market report

Limitation: -

The study was taken up with the sincere efforts to achieve the objectives there are certain factor which created problem in completing the work. 1) The biggest limitation was time.

2) The research was depending on the information gathered by different secondary sources

3) Limited knowledge of the subject area.

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CHAPTER 4 FINDINGS

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Some of the widely used fashion apps are: Style.com :Style.coms app pushes runway coverage from New York, Paris, Milan and London straight to your iPhone. Keep up with ready-to-wear, menswear, womenswear, couture, runway shows, party coverage and more. You can also stream Style.coms entire video library, which includes not only runway clips but also designer and celebrity profiles

Tokyo Fashion : Tokyo Fashion is arguably the most popular English-language Japanese street fashion website in the world. With its app you can get daily updated street snaps from Harajuku and other areas of Tokyo, Japanese fashion news, fashion brand profiles, Tokyo shop info, updates from various social networks, coverage of Japan Fashion Week and more. Vogue Daily News :Vogues online media team keep you even further up-todate on all of fashion with backstage access, insider interviews, and access to the best names and faces in the industry via Vogues live Twitter feed.

Valet Magazine : This magazine for modern men features news and service based stories on style, grooming and culture, all tailored specifically for viewing on the iPhone. Enjoy the same easy-to-navigate how-to guides posted daily on Valetmag.com, plus features only found in the app, such as the Local Concierge mag-endorsed style resources in nearly 100 cities and the Personal Dossier, where you can learn how to take your own measurements and then save them. Style Tag : StyleTag enables users to share their favorite looks with other fashion-loving smartphone users, as well as keep up with what everyone else is wearing. The app will update you with real-time photos of fashion styles found on the street. You can also customize your StyleTag fashion feeds by subscribing to your favorite brands, designers, styles and trends, as well as those users whose style you cant get enough of.

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Contextual Search : Google calls it Ad Sense, Yahoo calls it Content Match, Hundreds of other specialized vertical and niche search providers call it contextual search. Simply put, the difference between content search and standard sponsored or directive search listings lies in where the ads appear. Contextual search listings appear on content sites instead of Search Results Pages (SERPS). Advertisers bid on keyword costs. Many fashion brand use this tool to pull customers towards their site whenever they search for things that are similar to their assortment.

TERTIARY EXECUTION E Commerce : Recently, sites like ShoeDazzle, Everlane, BeachMint and Indochino are taking a web-only approach. By foregoing the middlemen in the value chain and the costs of maintaining physical stores, these e-tailers are able to cut the waste in apparel distribution. As a result, consumers benefit from higher quality goods at lower prices. Branded Sponsorship :Brands Use Fashion Week Sponsorships to Strut Their Stuff. Brands build media exposure credibility and connections with the mucho sought-after influencer segment. Almost every other fashion brand endorse some celebrity in fashion, sports or media to increase the consumers attention into their brand and to increase the brand image. They also sponsor events like fashion shows, Fashion meets and certain sporting events to gain attention and to build a brand image amongst their existing and potential consumers. For example, Hugo Boss, Gieves & Hawkes and Hackett are three new breed of Formula 1 sponsors.

Podcasts : A podcast is a type of digital media consisting of an episodic series of audio radio, video, PDF, or ePub files subscribed to and downloaded through web syndication or streamed online to a computer or mobile device. The word is a neologism derived from
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"broadcast" and "pod" from the success of the iPod, as podcasts are often listened to on portable media players.

Some of the famous podcasts available in the market are : The Fashion Update is an essential reference for anyone who likes to not just keep up with the trends, but to stay one step ahead of them. Kylies wealth of style information will definitely keep you at the top of your fashion game at all times. If you never miss an episode, youll never fall behind. Nylon TV is a perfect alternative for experiencing the greatness of the magazine but in a totally different way. Interviews, fashion shows, and more, this version is a little bit like sitting back and jumping straight into the pages and experiencing them for yourself. DIY Style steers away from all the glitz and glam of high fashion and caters to fashionistas who like to get hands-on with their creative side. Each episode gives great step by step instructions with every project, so if youre a visual learner, this podcast is for you. MOD TV lets you live the glamorous lifeat least for as long as the episode (and your imagination) allows. This podcast brings the exciting drama of the fashion world up close and personal.

Viral Marketing : Viral marketing, viral advertising, or marketing buzz are buzzwords referring to marketing techniques that use pre-existing social networks and other technologies to produce increases in brand awareness or to achieve other marketing objectives. Viral marketing may take the form of video clips, interactive Flash games, advergames, ebooks, brandable software, images, text messages, email messages, or web pages. Recently, House of Fraser, Gap, Selfridges, Habitat, Next, HMV and Dorothy
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Perkins are among retailers that have e-mailed discount vouchers and promotional codes to thousands of potential customers. Such offers have been widely circulated via the internet, clogging up inboxes and sparking a rush on certain stores - most notoriously Threshers, the off- license chain, that learnt to its cost the potential dangers of viral marketing. Virtual/Augmented Reality : Turns out that in the next couple of years, customers will be able to try on clothes and products at home with no shipping required. Technology will allow shoppers to virtually wear garments -- smelling, hearing and feeling the fabric as if it were real. Augmented reality technology typically overlays the virtual world on top of the real-world environment through a device, such as a mobile phone or a tablet. But certain companies are redefining the bounds of virtual reality experiences by homegrowing their own unique AR technologies and platforms. Although augmented reality, in its current state, is still a young and developing industry, our bet is that it's going to completely change retail. Here are a few companies that are leading the way. GoldRun's augmented reality platform lives on an app, optimized for iOS and Android phones and tablets. GoldRun can customize memorable AR-based experiences that users want to share on Facebook and Twitter. Clients, from international clothing stores to movie studios, are flocking to use the GoldRun platform and reach socially connected customers. GoldRun specializes in interactive experiences accessible directly on the app platform, which hosts various campaigns at one time. For example, clothing retailer H&M can hold a virtual photo-based scavenger hunt, while New York Giants fans can virtually try on the Super Bowl XLVI championship ring and share photos online. Holition is a combination luxury marketing firm and AR laboratory. The company serves a huge list of luxury clients, including Tissot, De Beers, Boucheron and Tacori. And in its East London offices, Holition's marketers, luxury experts, developers, 3D designers and "2D artists and futurists" sit and work side-by-side, creating innovative augmented reality technology. The company creates personalized interactive digital platforms to showcase various products. The incredibly intricate augmented reality technology is complicated on the back end, but it allows customers to seamlessly try on virtual goods right in front of their computer. All that's needed is a web cam and an Internet connection.

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DEMOCRATIZATION OF FASHION The democratization is part of what Franois Lyotard called The Postmodern Condition in 1979. He saw a social decline of metanarratives or absolute right and wrong authorities. The consequence is abundant opinions but a postmodern crisis of meaning in which all meaning becomes unstable and people no longer know what is best. Postmodernity accepts multiple opinions and emphasizes identity politics. This reduces the power of one group or hegemony. However in fashion the diversity of points of view results in an ambiguity of signs in which something like the tux or suit is no longer tied to one gender, class, form or environment, meaning that it has become highly subjective what to wear in different circumstances. The Democratization of fashion means: 1. The increase in amount and accessibility for fashion goods globally As the intensity of the power that online has put into the hands of masses magnifies, advanced cutting-edge and sophisticated technologies are shrinking boundaries to enable faster, agile and seamless communications across demographics. 2. The decrease in exclusive specialty clothing (haute couture) with an increase of ready-towear Fashion houses are having difficulties attracting the interest of younger generations. Of course, as the young elite get older they may well turn to haute couture, but for now there seem to be several reasons why haute couture does not appeal to wealthy young women as much as it did, say, twenty, or fifty, years ago. Compared to several decades ago, there is now a huge choice of ready-to-wear fashion every season, which is not only high-end, but is also cool and desirable in a way which haute couture, almost by definition, cannot be. Todays gorgeous young things want to be seen in the latest Proenza Schouler or Alexander Wang, perhaps with a Chanel bag, not in a full-on, ornate, handcrafted haute couture outfit; and, furthermore, if you are already young and gorgeous, why bother dressing to the nines in haute couture. Ready-to-wear fashion offers instant gratification, and as women have become more liberated over the last 60 years, and as the daughters of the ultra-wealthy are no longer hastily married-off to suitably eligible men, the whole notion of being trussed-up in elaborate, restrictive haute-couture outfits for stuffy formal events now seems totally archaic. The number of fashion houses showing haute couture is declining: Lanvin, Yves Saint Laurent, and Emmanuel Ungaro stopped showing not so long ago, while Christian Lacroix was a recent loss due to bankruptcy. This season Givenchy showed just ten looks, and did not hold a runway show at all. Still, Dior, Chanel, Armani Priv, and Jean Paul Gaultier still seem to be going strong and, as with so many things in both fashion and life, what exactly will become of haute couture seems to be a matter of wait-and-see. 3. The decrease of fashion authorities and increase of media and many Voices
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The Rise of a Fashion Blogger : In recent years, bloggers have had a tremendous impact on the fashion community. Using the Internet to build their own platforms and attract an audience, they have helped turn a once closed industry into a more dynamic global conversation, earning thousands of fans and followers in the process. It seems like just a few years ago not many people knew what a blog was, nowadays bloggers are making a living and achieving a somewhat celebrity status; gaining access to events and connecting with industry idols, from models to designers. Fashion blogs are quickly becoming a part of the mainstream fashion press. It seems that in this day and age, people are hungry for new and diverse information streaming from a wide range of critics, who could be their own age, a teenager or even a celebrity.

Crowd sourcing : Crowdsourcing can be explained as the practice of companies making an open call to solve a problem, either through competition or collaboration, and has quickly become a major trend in a number of industries. The fashion industry in particular has begun to utilize this tactic to turn to individuals outside the design team, in an effort to gain a better understanding of what consumers are looking for in a product. Furthermore, the fashion industry has enveloped the concept of crowdsourcing and utilized it as a platform to discover and offer aspiring designers, stylists and consumers with an opportunity to share their vision and sometimes even be showcased. Krush : Krush.com, a new web service catering to both brands and consumers, allows users to receive an exclusive preview of not-yet-released products, vote them into production and have
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the opportunity to purchase them first. Krushs mission is to prevent the massive amounts of waste that result when brands get it wrong and make products that you dont want to buy. Lookbook.nu : Founded in 2008, LOOKBOOK.nu is the original, user generated & communitycurated gallery showcasing do-it-yourself fashion photography from everyday people, everywhere. Users upload images of themselves and their favorite outfits, providing links to where viewers can find such products and their price point. Additionally, members can vote on their favorite looks, add commentary and provide feedback to participating brands. Pinterest : So far, Pinterest has been social medias golden child in 2012. In case youre unfamiliar, Pinterest funtions like an online pin-board, where users can share and discover their interests by pinning visual content on theme-based boards (see Crowd Creativitys pinboards here). Users can upload images and videos directly to Pinterest or they can pin images and videos from websites using a special pin-market. Pinterest has blown up over the last year with unique visitors to the site increasing by 155% between December 2011 and January 2012. Although its hype has allegedly peaked, businesses continue to use the social networks to creatively market themselves to online audiences and many marketers have already made their mark on the platform and pinning has proven particularly success for online retail outlets, fashion companies, and photographers. In using Pinterest, effective pin-board marketing can follow many of the same best practices as creative crowdsourcing as both practices invite consumers to visually contribute to and interpret a brands storytelling.

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4. A greater mixing of class, gender and cultural codes, with a decrease in barriers like formal & casual. IMPACT OF DIGITAL MEDIA ON BUYING BEHAVIOUR In retail, peer-to-peer referrals, group buying and many other terms are having a disruptive impact on the fairly rudimentary act of a customer buying a product from a seller. One of the most fundamental models from consumer behaviour theory relates to the consumer decision making process it also provides a framework to look closer at this 'disruption'. The model describes five main stages that customers go through when purchasing a product: recognition of a need, information search, evaluation of alternatives, purchase and post-purchase evaluation. The effect of mobile, digital and social media can easily be seen at every stage. New technology is raising the awareness of what is now available; traditional advertising has evolved to become more personal and personalised Facebook advertising, for example, can target individuals based on what they've said they like and is almost creating the need before it has been recognised.

With the ability for research to Figure 4. consumer buying cycle influenced by social media be undertaken in real time from any location, information search has been disrupted to such an extent it's now not enough for retailers to have a presence on the major review websites that customers visit. Retailers must listen out for customers looking for information Retailers must listen out for customers looking for information, and then give it to them almost before they have had the chance to look for it themselves. The process has become much quicker and more pro-active. The simple comparison engine that has become ubiquitous throughout online retail sites has made the evaluation of alternatives more cutthroat. Customers are empowered to evaluate a retailer's product against their competitors using any feature or metric they want. Even in the purchase phase, the channels through which your product can be bought have evolved. We've almost moved past online purchasing into mobile optimized websites and smartphone apps and with Facebook credits social media could prove another fertile battleground. Post purchase evaluation through comments on forums, social media and review sites now need monitoring; positive feedback can generate immense goodwill but equally negative feedback can spiral into a full blown PR crisis. The individual platforms are constantly evolving. Consider social media in the past three years we have witnessed the emergence of group buying with Groupon, location based targeting through platforms such as Foursquare and
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Facebook Deals (now evolved into Facebook Offers) and the newest kid on the block in Pinterest now responsible for driving more sales to retail websites in the United States than Facebook. All this makes the retail marketer's job harder than ever. A deeper understanding of the customer, their online habits and their purchasing habits has become essential. No retailer can ignore the fact their customers live in an integrated online/offline world and they need to make sure they have an appropriate presence on the channels where their customers are. This section explores the impact of digital media on consumer buying behaviour. TRANSMEDIA According to JWT Trend Report, March 2011, Transmedia is an evolution of the integrated marketing model: rather than a consistency across multiple touch points, the goal is for different channels to communicate different things (within the overarching strategy) with an emphasis on putting the brand community at the centre. Transmedia involves narrative threads tailored for different channels (from mobile to big screens, from social to traditional media) and audiences (gamers, readers, tweeters, etc.) TANIA YUKI of comScore Voices blog says, The key point of transmedia storytelling is that dispersed entry points contribute to a complex (and complementary) universe that is greater than the sum of its partsso that at the point of origin, multiple channels are not just considered but deeply planned out and integrated in ways that will engage the viewer where he/she is already spending their time. Only with this kind of tight creative integration and clarity of purpose are we able to create true cross-media experiences that add value across dispersed narrative paths and entertain consumers as they evaluate their options. DRIVERS Consumers harder to catch: Traditional content industries are struggling as people spend less on entertainment and instead consume free (or cheap) content online. Film,TV, video gaming and other industries need to find innovative ways to entertain and engage. For marketers, the challenge is a fragmented media landscape and a consumer who demands that advertising entertains or provide some other added value. -called digital natives are starting to push entertainment and media into new realmsas both entertainment creators and consumerssince transmedia mirrors their innate relationship with media. Passive viewers are pass: The Web has fostered a participatory culture, a marked contrast from the passive consumers/fans of the 20th century. Transmedia generally involves elements that actively engage audiences in the story. A trans-platform/ platform agnostic world: Increasingly, content migrates seamlessly between platforms, from Web to TV and vice versa, from phone to PC to tablet. And traditional media formats are rapidly morphing. Lines are becoming blurrier, with more consumers making no distinction between type of media or platform.
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Burberry leads the fashion fan race with 14 million fans on its facebook fanpage Burberry created its own community inspired from its core product, the trench coat. The company describes the site Art of the Trench as a living document of the trench coat and the people who wear it. While the transmedia opportunities across the brands communities were used extremely well, Burberry also enlisted celebrated fashion photo blogger, Scott Schuman thus earning the instant credibility and support amongst his highly selective online audience. RELEVANCE: The days of broadcasting to consumers are over and a new era of entertaining, engaging and empowering consumers is upon us. This requires 21st-century tactics to reach audiences at
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multiple touch points. New York Times technology reporter Nick Bilton says media platforms and formats will blur to the point of irrelevance.

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CHAPTER 5 SUGGESTIONS AND CONCLUSIONS

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5.1 SUGGESATION EVOLUTION OF THE USAGE OF DIGITAL MEDIA

The worlds first YouTube fashion boutique, with click-to-buy videos. Youtique is a customized YouTube channel where the user can view collections through short videos and buy the clothes by clicking directly on them. To start off with, a set of videos featuring stylist Louise Roe were launched, who recommended outfits depending on the occasion that the user wanted to get dressed for (e.g. for work, for a dinner with friends, for a date). At the end of each video, users could click on an item and it would open a page on French Connections site with that item already in their shopping basket. Though the pop-ups traditionally only link to other YouTube videos, FCUK has made an arrangement with YouTube to allow certain buttons to lead directly to the FCUK site. The videos were made searchable from anywhere on YouTube, using popular YouTube search terms like fashion, how to, sexy dress etc. different items of clothing become annotated with a "buy" button that the viewer can click to be taken directly to the FCUK page selling the item in question. This is a simple trick, but potentially a powerful one. Video advertising is wonderfully effective at creating consumer lust in the moment of the video pitch--but that so often wanes as soon as the spot is over. By enabling the viewer to click and buy in the very moment of the sales pitch, FCUK could have powerful results. Since most of the videos are designed to answer basic questions someone might enter into a search engine-what should I wear to a wedding? what should I wear to go out?--the site is also optimized for search engines (SEO) All content and language is designed to be wired directly into YouTubes ecosystem, ensuring maximum relevance and minimum barriers to entry. Highlights Being the first brand in the UK to use external links on YouTube; an innovation that created new value for brand and consumer as well as earning media attention. Bringing French Connection
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into real peoples online lives, rather than projecting alienating aspirational imagery at them. Adding some playfulness to the interactions a choose your own adventure of fashion choices. Combining smart SEO within YouTube with an innovative format TOPSHOP Topshop, in partnership with Facebook, is using social media to enhance the runway experience for customers and collect data that can help the retail chain make better decisions about its business strategy. For the first time, via Topshop.com, customers were able to customize Topshop Unique designs as models strutted down the runway by viewing the items in different colors. If they liked what they saw, viewers could buy Topshop Unique looks directly off the runway while watching the real-time catwalk video. Customers who choose to order items from the catwalk during the show can expect delivery of their items months ahead of industry lead times. Fashion, of course, has always been about much more than just clothes. Topshop customers can buy parts of the runway experience by purchasing the music the models strut to and purchase the beauty products used to complete the models runway looks-- and receive their items within 48 hours, along with styling advice and lessons inspired by Topshops in-store beauty bars. Linking real-life experiences to online experiences is something Justin Cooke (formerly of Burberry), Topshops digitally savvy new chief marketing officer, considers a key component of the brands digital marketing strategy. The entire Topshop fashion show experience is sharable. Users can capture and share on Facebook live photos of the looks without interrupting their show experience with Topshops "Shoot the Show" tool. The "Shoot the Show" feature--which Topshop developed directly with Facebooks in-house team--was inspired not by other fashion houses, but by media organizations use of social media. During Topshops Unique show, fans viewing the live video stream were able to snap photos of models as they paraded the stage by clicking the "Shoot the Show" camera icon on the video player. A Facebook share box would then pop up and the user could hit "Share" without interrupting the presentation.

Shishiedos Digital Cosmetic Mirror

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The Digital Cosmetic Mirror by industry giant Shiseido can be used to test make-up and recommendations without even having to pick up a brush! Using augmented reality to do sampling is a novel way to involve consumers, and can be a useful technology for saving on waste. All you do is sit down and let the camera scan your face. The terminal then gives you tailored recommendations. Pressing a few buttons on the touch-screen paints make-up onto your image in real time, allowing you to see the results instantly. You also try out make-up that is currently making waves, along with printing out before and after photos with product information for you to go make the purchase of whichever colors caught your eye the most.

Moda Operandi Founded by slaug Magnsdttir and Lauren Santo Domingo, Moda Operandi is the only place to preorder looks straight from the unedited runway collections of the worlds top designers months before they are available anywhere else. Moda Operandis offering called Boutique, is an expertly curated selection of inseason items from both established and emerging designers worldwide. In homage to the history of couture,Moda Operandi offers a bespoke shopping experience that includes unprecedented access to your favorite designers and hand-selected recommendations from personal stylists.
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Taking advantage of the excitement and press that such events (fashion shows) generate and selling the items online in a fashion trunk show, rather than waiting several months. After buying on Moda Operandi, customers still must wait four months for the items to be manufactured, but the members-only site benefits from the exclusivity of early ordering. The company also just added in-season buying. The whole idea was instigated by identifying an obvious gap and seeing a need on the designer side, and also realizing that technology had changed fashion in a lot of ways, allowing people to view a live video of fashion shows immediately, and yet the absence of a commerce opportunity. Another astute move was identifying that trunk shows were another oddity of the U.S. fashion world that seemed out of step with the times, since a good deal of the women who could afford to buy high-end designer clothing at full price were not available to attend these traditionally afternoon events. AMERICAN GIANT A San Francisco based apparel startup and they claim to have created the best hooded sweatshirt known to man. All clothes are made entirely in the United States, and its done so at costs that arent prohibitive. Today, when you buy a hooded sweatshirt, most of your money is going to the retailer, the brand, and the various buyers that shuttle the garment between the two. The item itself costs very little to makea $50 hoodie at the Gap likely costs about $6 or $7 to produce at an Asian manufacturing facility. American Giant claim to have found a loophole in the process. The loophole allows them to spend a lot more time and money producing clothes than their competitors do. Among other things, they also hired a former industrial designer from Apple (as their creative director) to rethink every aspect of the sweatshirt, from the way the fabric is woven to the color of the drawstrings around your
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neck. The loophole they claim to have found is the Internet. American Giant doesnt maintain a storefront, and it doesnt deal with middlemen. By selling garments directly from its factory via the Web, American Giant can avoid the distribution costs baked into most other clothes. A basic American Giant sweatshirt costs the factory $12 or more to makeabout double what it would cost a foreign factory to make a much lower-quality garment. American Giant pays the factory about $25 to $30 each, and then it sells it to you for $60 and up. Compare this to a model under which youd buy standard sweatshirt at the mallsay, this $58 Levis crewneck. The department store likely buys that shirt from Levis for about $30. Levis, in turn, pays the factory about $12 to $15 for it, and the factory likely makes it for $6. So youre paying 10 times what the shirt costs to make, and Levis is earning $18 per garment. With American Giant, youre paying five times what the shirt costs, and American Giant

FUTURE DIGITAL MEDIA TRENDS

SHAPING CONSUMER BEHAVIOUR VISUAL THINKING Visual thinking -- the use and exploration of images as tools for communication began as a trend in education in an attempt to improve learning and retention. Over the past decade it has evolved and been adopted as a strategy tool for marketers and management firms to help clients find answers to complex problems and map out their solutions via large-scale visuals. The process can be applied to any subject matter and used to assist and augment improvement in any audience or demographic. Currently, the most comprehensive and impressive visual thinking work has been constructed by London-based firm, Group Partners. Group Partners progressive approach allows solutions to be co-created with the client through the application of its business equation. The company has applied this technique to more than 2,500 businesses and governments, including Coca-Cola, Estee Lauder, Rolls-Royce, and The BBC. The framework can be used to solve any problem or develop value based on any business question. As the world moves towards thinking in pictures and processing information through graphics, the use of visual thinking is becoming more compelling.

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The New Aesthetic The term new aesthetic was coined by James Bridle, a London-based writer and "technologist." It refers to the blurring of digital and real. In September 2011, The Future Laboratory and Campaign explored the blurring digital and real-life experiences in retail via a Sweet Shoppe. The Sweet Shoppe -- set up as an installation during London Design Festival was turned into a hyper-real, personalized and technology-enabled production that let guests see, smell, touch, and taste the retail experience. For example, on arrival, guests were taken on a 20-minute curated personal journey to determine their perfect sweet. Without question, this version of the Sweet Shoppe was created to appeal to the consumers of the future who will have no recollection of life without the internet, will not distinguish between the real and digital worlds, and will seek experiences that seamlessly integrate the online and the offline. Currently, the new aesthetic remains fragmented and extremely hard to put into a coherent example that would allow a marketer to grasp its full potential. But, because the subject matter of aesthetics relates to how beauty is perceived and valued by us as humans, retailers are making strides to test it via digital consumer experiences. One example comes from luxury retailer Louis Vuitton, who worked with Yayoi Kusama to launch the Louis Vuitton Kusama Studio iPhone application. Louis Vuitton encourages users to reinvent reality and the world through this artists work and transforms user photos with effects designed by Kusama. The app embraces concepts of the new aesthetic movement and provides marketers a way to grasp the full potential of the movement as an experiential marketing tactic.

CALM TECHNOLOGY Calm technology refers to applications that cut down on the digital noise of high data to show the user only enough information so that he or she is able to focus on a task. Mark Weiser is considered to for calm technology. The whole idea is to reduce distractions to our workflow without losing functionality. Weiser postulated that we should not be seeking to enter the virtual world by shopping in 3D environments, but that digital technology should enter our lives in such a way as to make it calmer and easier, not more distracted and disrupted, thus blurring the line between digital and real life experiences. The Facebook ticker is one example. If the Fac then it might move too quickly for the average user. But by moving real the periphery, the user has a more calm and satisfying Facebook experience.
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Calm technology is also leading the growing popularity discovery sites such as Lyst, Mulu.Me, Buyosphere, Supply, and Discovered. These sites offer a more focused stream of content than standard social networks. Moreover, the rise of interest networks, solely following someone b interest topics, is another way that calm technology has impacted user behavior. To be clear, calm technology does not necessarily jibe with marketing goals. The whole idea is to reduce the flow of information to people, no seems to be ready for applications that will streamline the information, something marketers know has inherent value. be the father of "ubiquitous computing," a synonym ironments, Facebook newsfeed updated in real time, real-time updates to of duration and social product based on similar likes and shared not increase it. The public, however, seems to be ready for applications that will streamline the information, something marketers know has inherent value.

CONCLUSION
Digital Marketing is a growing field across sectors today. While it comes with a plethora of opportunities, there are also challenges that must be overcome in order to fully harness the capabilities of this opportunity. The article talks of some of the most prominent challenges that businesses today face when they align their business strategy (more specifically, their marketing strategy) with digital marketing. The forms of digital marketing now. There are mainly two categories of digital marketing, namely the push marketing and pull marketing. In pull marketing, the onus is on the customer to explore different available products/services. In push marketing, the business houses push their products to the customer. Digital marketing provides various channels for both the push and pull marketing. There are various channels of digital marketing. This may be by sending promotional information to customers or prospective customers through emails, spreading awareness through blogging, podcasting, video streaming, search engine marketing, social media, sms marketing, application based mobile marketing, etc. There is no dearth of options available to choose the channel of communication. Markets are getting globalized thanks to digital marketing, e-commerce based busineses are flourishing, etc. Digital marketing is everywhere with you, on your laptops and cell-phones. No industry is untouched by the disruptive digital marketing. Be it Business-to-Business or Business-to-Customer or Customer-to-Customer, today Everything is being sold through digital channels. Companies typically devote 1/4th of their online marketing budget to their website development. According to a prominent marketing benchmark, here is how typical allocation looks like:

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( http://www.marketingsherpa.com/1news/chartofweek-03-20-12-lp.htm ) The biggest challenge lies in identifying the channel(s) which fit your business requirements. While each channel has its own reach, advantages and richness, there are associated costs with each of them. Every business has a fixed marketing budget and thus need to invest wisely so as to maximize its returns. The problem is how to choose. No one wants to miss the bus. Specially with the emerging social media marketing, companies are not sure which one would work for their business at the optimal cost. Most companies are reactive rather than proactive in choosing the channel for their business. They choose a channel because others in the industry are doing so, without seeing inside their own business model. What is required is an inside-out approach where the business leaders identify what are their objectives and which channel fits best with respect to these objectives. Unfortunately, businesses today are falling into the trap of doing the reverse. They select a channel and then see how it can meet their objective. Its not just the choice of channel which is challenging, but also different channels need to be chosen at different times, depending on the changing market dynamics. The frequency of the messages is critical. Too many messages may bug the customer, too less may not capture his attention. Next associated challenge is the capability of digital marketing to break your business. Thanks to things going digital, it takes minutes for a bad word to spread. And before you know, you are out of business. Here, the author would refer to the case study on Dell, popularly called the Dell-Hell. Dell received complaints from one of its customer, but did not attend to it
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satisfactorily. The frustrated customer, Blogger Jeff Jarvis started a series of blogs, popularly called the Dell-Hell and within days many more agitated customers joined in, the sales dropped and Dell lost crucial points on few of the industrys crucial customer satisfaction surveys. Thus, while companies create many avenues of customer interactions, sometimes Customer-toBusiness and lately, Customer-to-Customer, they need to understand that the product quality, customer support become all the more important as one wrong word can break your business. Even more worrisome is the point that your competitors may get into unethical practices and malign your business. This is more so in developing countries where the regulatory laws are not strong. Another challenge of digital marketing is the pace at which it is evolving. Few years ago, companies used to do make 5 year plans on their marketing strategies. Not any more can they do so. What is hot one year is out-of-date the other. Companies are in a fix and do not know how to strategically plan their investments in digital marketing. We must not forget that investing in channels like mobile application development, etc incur huge costs and the companies need to really reap the benefits of developing these quickly, before the technology fades and newer technology emerges. We cannot get up one fine morning and think of going online. Many banks are still in a fix on whether to develop mobile applications, how much complexity to add on these applications and what all platforms to cater to. It takes a lot of money, infrastructure to get into digital marketing space. Add to that the cost of maintaining the older channels, and businesses are in a fix. Businesses must not just be agile to evaluate and adopt new digital marketing opportunities, but also smart enough to abandon the older ones. Maintaining older channels, even though they are not longer generating business kills the revenue stream for many businesses. There are no perfect metrics to evaluate the effectiveness of digital marketing. How do you measure the ROI of any channel? Are there any standards? There are no set answers for these questions. So, while businesses are aware of the need to spend on digital avenues, they are not aware of how to measure which channel works best for their industry, for their business. Thus it is really a subjective judgement made by business houses and may not be perfect. Analytics is working on developing sophisticated tools for measuring the effectiveness of the digital marketing and hopefully should throw some light for the business houses. One must remember that going digital does not translate into completely doing away with brick and mortar stores. First of all, not all things can be sold online. While most businesses can use digital marketing for creating brand awareness, this does not necessarily translate into sales. We cannot expect people to buy high value items online. At the same time, people still like to feel certain products before purchasing. While customers may make buying decision online, they still prefer to go to a physical store to buy. Thus digital marketing cost is over and above the usual costs incurred and do not act as substitute. Businesses need to maintain both the traditional and digital channels of marketing and sales and this is additional cost. Digital Marketing has low entry barriers. Businesses based on e-commerce are seen as low entry barrier setups. But, what is low entry for one person is also low entry for the other. This
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effectively means that competition is more fierce for digital based businesses. Customer loyalty is low online. Since customers do not have any personal interaction with the sellers, the switching rate is much higher for digital businesses compared to the traditional businesses. Businesses need to align their digital marketing efforts with the traditional ones. These too should complement rather than canibalize each other. Simply marketing through a plethora of channels would not serve the purpose. Businesses need to structure their marketing campaigns to reap the maximum benefits. Customer expectations are at all time high. They need and appreciate customized products, customized buying recommendations, personalized attention even digitally. This has to be done at the right frequency. Digital marketing can result in internal process re-oganization need. As the reach of digital marketing, businesses find out that their current processes and database models are not designed to support the new needs of the businesses. Thus, a fundamental reorganization of internal processes and systems is called for. These requirements can be a huge cost and result in severe downtimes and thus need to be handled with a good amount of discretion and after evaluation. Line between innovation and adoption is thinning. In the race to match the external business environment, business focus should not shift away from innovation. Businesses need to mature enough to decide what works best for them rather than just do what others are doing in the space of digital marketing. Customers look for differentiation both in products and the way the products are marketed. Compromising one for the other will ultimately lead to loss of business. To conclude, while digital marketing is necessary and literally, no business survives without it, it incurs huge cost, changes everyday and presents the problem of plenty. Marketers need to be prompt to identify what would work for them in the short run as well as in the long run, and work in tandem with the other organization functions to effectively use the channel of digital marketing. No doubt, the digital marketing is here to stay. The challenges if overcome will help each business to differentiate and grow as a leader in its industry. Too many platforms: New digital media includes Brands own website; shopping portals like amazon, flipkart, fashion and you, 99labels, urbantouch.com , jabong; blogs like cupids peak online, twitter, tumblr, application for different platforms like iOS, Android, Windows, Blackberry; Softwares, tools like pinterest, instagram, amper, second life; There is plethora of new digital media and one does not know where to concentrate to engage the customer. Concern about privacy: people have to get comfortable stab free trust: Digital media tracks cookies, online history to keep a record of the pages/products viewed. Personal information is shared with other online portals for their own benefit. This raises privacy concerns and customer is skeptical about his data being misused.

Marketing is going digital and companies can no longer affort to have a digital presence
With 57% of sales in the US influenced by online media, companies will have to look for creative ways to mine into the new technology savvy customers resources.
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Transmedia
Reaching out to customers across different platforms/sub groups/ influence levels with Custom made offerings to connect with the brand while keeping brand involvement and The brands story at the forefront are of paramount importance.

What this means for Indian companies

Indian companies are keen on taking the digital route with maximum effectiveness and want to be at par with their counterparts in the west. Digital spends of certain big brands are even comparable to their print and on ground spends. However brand engagement is still lagging. The companies may understand the effectiveness of it but do not have a great understanding of many aspects of the process. Indian companies have been laggards in adoption of digital media so the functions of social media are still not well understood. For most brands, social is still a numbers game rather than understanding of the customer mindset and effective targeting. Thus they are depleting the quality of the social space. Also adoption of the second wave fashion oriented digital tools like Pinterest, Polyvore etc. are extremely low. Companies must tap into what is a highly engaged and aware community.

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Bibliography
1. Agarwal, S., and Mital, M. (2009). Focus on Business Practices: An Exploratory Study of Indian University Students' Use of Social Networking Web Sites: Implications for the Workplace; Business Communication Quarterly. 2. Barthelemy, S., M. Bethell, T. Christiansen, A. Jarsvall & K. Koinis. 2011. The Future of Print Media. Capstone Report. Retrieved 9 December, 2011 from www.sipa.columbia.edu/academics/workshops/documents/WorldNewsmediaIn novationsStudy-CapstoneWorkshopSpring2011-ABRIDGED.pdf 3. Banerjee, I. 2008. The Impact of New Media on Traditional Mainstream Mass Media A Critical Assessment. A Series of Lectures on Trends & Future of the Malaysian Mass Media. Presented at Dewan Tunku Canselor, University of Malaya Kuala Lumpur. 4. Google and Compete August 2011 Trend Report- The Role of Mobile and Video in the digital path to purchase 5. JWT Trend Report, March 2011- Transmedia Rising 6. JWT Trend Report, July 2011- Social Commerce 7. The Checkout Magazine, Issue 3, 2011- Mobile Shoppers 8. Nielsen Report, August 2012- How digital influences how we shop around the world 7. P. Sri Jothi, M. Neelamalar and R. Shakthi Prasad: Analysis of social networking sites: A study on effective communication strategy in developing brand communication; Journal of Media and Communication Studies Vol. 3(7), pp 234242, July 2011. 8. Noor-e-Hira Naveed: Role of Social Media on Public Relation, Brand Involvement and Brand Commitment; Interdisciplinary Journal of Contemporary Research in Business Vol. 3(9), January 2012. 9. http://www.dfid.gov.uk/R4D/PDF/Outputs/MediaBroad/ChangingLives_Tradit ionalvsNewMedia.pdf 10. http://www.guardian.co.uk/media-network/media-networkblog/ 2012/oct/03/fashion-week-digital-technology-relevance 11. http://www.psfk.com/2012/10/shopper-remote-fitting-retail-scenario.html 12. http://www.scoop.it/t/digital-fashion-marketing?q=future 13. http://www.gartner.com/it/page.jsp?id=1629214 14. http://www.l2thinktank.com/research/fashion-2012/ 15. http://mashable.com/2012/06/21/trends-consumer-experience-economy/
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