Hi Seshadri,
First of all best of luck for your new project. It is very interesting if you do it with interest. It requires go into details of each aspect of it. To get start with search engine marketing follow following steps -
1. Identify goal of you website e.g. sales, registrations, leads, signups etc.
2. List keywords which you think people would be typing in Google to reach to your website. If you have access to analytics of your website check from which keywords customers are coming to your website. List all possible keywords. Once you have these keywords you can use online keyword tools such as Google Keyword https://adwords.google.com/select/KeywordToolExternal to expand your keyword list. At the end of this exercise you will have a list of keywords with you.
3. Now you need to group these keywords based on common themes. To start with I would suggest group keywords around common keywords. Now name these groups and these will be your ad-group names. If you have very large number of keywords/adgroups, group common adgroups in different campaigns.
4. Once you have your campaigns, adgroups and keywords ready its time to create text ads. You have to make min. of 1 text ad for each adgroup. In a text ad you have one title line, 2 description lines and one display url. Please read Google help to understand character limits for text ads. Identify pages/sections of your website where you want to send customer from Google for each adgroup. You can put these links of your website as destination urls. Now you are ready with the basic campaign structure.
5. Now sign up in your Google AdWords interface and make new campaigns based on your campaign structure you have created. You need to put bid price for every adgroup, which is the amount you are ready to pay to get click from Google from keywords in the adgroup. Please take care of which geographic location you want to target, daily budgets etc.
Once all this is done your ads will start appearing on Google and you can see reports for your campaign performance.
Here I have just outlined over all broad process to explain to get started with AdWords. There are many other steps involved in the whole process, which i cannot put in this post. But if you want to understand any specific thing please do let me know. Understanding SEM is continuous process and it requires patience and practice. I have only mentioned Google AdWords here, which is most popular in India, but there are other search engines also like yahoo, msn, local search engines etc. So be patient and keep learning. I do let me know how your project goes.
Thanks,
Vinay Sharma