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E-Coupons

Marketing by cell phones or PDAs can be accomplished by offers and promotions such as electronic "coupons" good for discounts at local restaurants. The electronic coupons can be stored in the phone's or PDA's memory and bought by presenting the phone or PDA screen to the retailer or restaurant cashier. Buttons on the phone or PDA can allow the consumer to purchase an item immediately or to signal a retail dealer. However, car ads can be the least likely to succeed with cell phone marketing, because they need specific visuals. Therefore, such ads should be created to provide additional information to a potential customer after the consumer clicks the button. Instant hotel reservations can be made by pushing a button, and after hearing a few seconds of new music, instantly purchasing concert tickets is possible.

E-Coupons and e-Vouchers can be sent directly to consumers' PCs, PDA’s or mobile phones. Alternatively, consumers can download e-Coupons or e-Vouchers into these platforms from the Web or they are sent directly to the consumer as advertisements. Users can then carry the e-Coupon or e-Voucher in their hand-held device for use either at an online store or a brick-and-mortar business. The service can be used either in a business-to-business scenario, enabling Internet Service Providers to provide a new tool for advertisers, or in a business-to-consumer scenario in which online stores deliver e-Coupons and/or e-Vouchers directly to consumers (www.internetnews.com). "Given today's competitive market, e-business cannot be satisfied with reaching only online customers, while service providers must search for alternative revenue sources," said RegiSoft President and Chief Executive Officer Gady Shlasky. "RegiSoft's e-Coupons and e-Vouchers answer both these needs (www.internetnews.com)."

According to a study conducted by HPI Research Group, nearly nine out of ten (86 percent) respondents agreed there should be a tradeoff for accepting ads on their mobile devices. The study found that the core mobile phone market (16 to 45) is receptive to experiencing mobile marketing in the form of a received SMS sales message. When asked about receiving an electronic coupon to be reimbursed at a nearby shop, 88 percent stated that they would be receptive to this sort of marketing. Nearly one-third (31 percent) expressed more enthusiasm by stating they would actually welcome such marketing. “Just as sales drive consumers to stores, special savings will lure consumers in, and will make the whole process of receiving mobile ads more palatable to users,” said Becky Diercks, In-Stat’s director wireless research (www.clickz.com).

Wireless advertising may come in the form of coupons or discounts offered by selected stores when consumers are near a location or searching for related products. For example, a mall patron is walking near a Bath and Body Works. If the consumer has ‘opted-in, Bath and Body Works can then send a message to his/her wireless device reading “20% off any product for the next 30 minutes” or maybe the customer’s favorite lotion is on sale. (Chisholm, 2001). “Other popular promotions include alerts about movie releases, concert tour dates, chances to win backstage passes, coupons for retail stores, scores from sporting events, discounts, the weather, even astronomical events from a NASA scientist.” (Odell, 2003). Virtually any information or discounts a consumer is interested in can be immediately sent to their cell phone or PDA. Chisholm (2001) stated that wireless advertising works because of it’s ability to be time sensitive, “That's the perfect blending of opportunity and need. As a consumer asking for information on a topic, I'm ready to see any available special offers. If I'm searching for information on a digital camera, and you offer me free shipping, I might just take you up on it.” That is why wireless advertising has become so successful: it creates a need that can be fulfilled instantly.

For example, digital coupons can ease the institution of the impulse purchase; appropriate coupons can well encourage opt-in for long-term loyalty programs. Most of all, immediate feedback on marketing messages is very valuable. The mobile channel is radically changing communications across multiple sections of society. An appearing global culture is being fashioned largely by an emergent youth market (Kotch,2001).

Electronic Coupon to wireless divices from wireless service providers or advertisers

More targeted based on customer DB than general coupon

Sending a well-targeted e-coupons to mobile device users at an appropriate time can lure consumers into a prompt purchase.

Also, as it is more convenient for mobile device users to save e-coupons than off coupons, increasing usage rate of coupons may be expected.

Thus, it is expected that eventually, advertisers can save their cost for producing and distributing exsiting coupons by employing e-coupon, and increase consumer awareness and likeness to purchase.

If it could be offered with voice activated service in color screen in the near future so that users could easily get more specific information when they need, it will be more effective. For example, Subway advertiser could provide mobile device users a map service on screen, which indicates its subway store located nearby users. Or, through a voice service, people could be noticed to get a coupon easily while moving.

Wireless advertising technology has come a long way in just the past year and cell phones with graphic and color capabilities are already on the market. Still, the majority of wireless technology owned by the public at present is relatively simple and if Starbucks or 7-Eleven decided to roll out a wireless advertising campaign tomorrow, they would be limited by the technology and their ads would look very similar to the examples above. These ads do use incentives and GPS technology to appeal to consumers. In the future, the tactics will likely be similar but obviously, have a fancier design.