E-Marketing Ch 4

8/11/2019 E-Marketing Ch 4

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E-Marketing

Dr. Karim Kobeissi


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Chapter 4: Building Inclusive E-Markets


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Keywords: Inclusive Markets

Inclusive Marketsare markets that

extend choices and opportunities to

the poor (and other excluded groups)

as producers consumers and wage

earners!


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vervie! o" #lobal E-MarketingIssues

"ne o# the $ig changes online: users "rom

other countries$ speaking languages

other than English$ !ill dominate the

Internet - %y %&'& there were

approximately 4(( million English-speaking

and 4&)million &hinese-speaking we$ users!

Discussoveralltrendsin

Internetaccessusageand

purchasingaroundtheworld!


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Exhi$it '! *+,D*IDE IE+E/01#E


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*orld!ide Internet /sage/n important e6ect o# the increasing num$er o# non-74

Internet users on the Internet is that the onlinemarketplace is changing which will re8uire that glo$al

e-marketers understand countr2 e-readiness!

9lo$al e-marketers must di6erentiate $etween

developed countries and emerging

economies where the greatest growth

opportunities and marketing challenges lie!


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Economies

&ountries that have high levels o# economic

development (7nited 4tates apan etc!) areclassi;ed as developed countries!

ciency result 3 ahigh gross domestic product (9?@) per capita!

&ountries that are still struggling with

standards o# living #or their citi1ens are

classi;ed as emerging economiesand are

experiencing rapid economical gro!th!

4-8

?e;ne

emergingeconomiesand explainthe vitalrole o#

in#ormationtechnologyineconomicdevelopme

nt!


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Developed Countries 3 EmergingEconomies con5

Emerging economies are characteri1ed $y a rapidl2

developing middle class which creates demand #or

products and services!

6our countries represent the power and opportunity in

emerging markets: Bra7il$ +ussia$ India and China

B+IC5.

&ountries with emerging economies can $e #ound on every

continent!


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Importance o# In#ormation Aechnology

I 3 Internet accelerates the process o" economic

gro!th through di8usion o" ne! technologies (e!g!

Internet $anking online reservation online education!!!) !hich

increase e9ciencies in the production (e!g! producing a

given set o# goods or services in a more technically e>cient

manner) distribution$ and sale o" goods and services.

he application o" in"ormation technolog2 opens up ne!$

eciting$ global markets and opportunities especiall2 "or

businesses in emerging economies . 6or eample$ online

direct trade (instant access to a glo$al marketplace) online

direct investments (having #oreign ;rms $ring them to you)!


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Importance o" I in Economic Development


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Importance o# In#ormation Aechnology (con)

Ahe Internet can $oost emerging economies (e!g! India)

where people will $e armed with greater in#ormation #or

agriculture manu#acturing trade $usiness selling their

products and services across the world and not Bust

limiting themselves in the local market

instantaneously

tap a glo$al marketplace!

0uccess"ul marketing on the Internet

can leap"rog a compan2 "rom nowhere

to somewhereovernight.


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1nal2sis

/n e-marketing plan guides the marketer

through the process o# identi"2ing and

anal27ing potential markets 9lo$al e-

marketers must $alance two di6erent

analytical approaches:

Market similarit2

Market di8erences

Market di8erencesand market similaritiesmust $emeasured and comparedto determine strengthsand !eaknesses!


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Understand market differences

Emerging economy Emerging economy

Developed economy

Understandmarket similarities

Understand

market differences

Market Approaches Between Emerging and Developed Economies


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M a r k e t 4 i m i l a r i t y

&oncept o# market similarity 3 marketers choose #oreign markets

that have similar characteristics (language Internet usage rates

secure online payment mechanisms use o# credit cards rate e>cient

package delivery services clearly de;ned market segments willing to

shop on-lineC!) to their home market #or initial market entry!

/ 7nited 4tates-$ased company would target &anada the 7nitedKingdom and /ustralia $e#ore Drance apan or 9ermany!

1ma7on.com has used this strateg2 as it epanded globall2. Ithas international *eb 0IE0 in the /K$ 6rance$ #erman2$1ustria$ and ;apan.

Market similarity not only reduces (without eliminating) the risk o#

entry into #oreign markets $ut also helps explain why it targeted

these countries in the ;rst place!


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M a rke t ? i 6 e re n c es

Market di6erences are ways in which two

markets exhi$it dissimilar characteristics!Internet marketing di6erences $etween

developed and developing countries #orm thegreatest o$stacles to e-commerce!


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M a r ke t ? i6 e re n c e s ( c o n )

7!4! and European list:

@rivacy concerns (5*) &ensorship (+'*) 0avigation di>culties

(*)

Aaxes (.*)!

Emerging economies list:

4low connection speeds(+.*)

&osts o# domestic phone calls(+.*)

Internet 4ervice @rovider costs(.*)

ack o# content in oneFs ownlanguage (,*)

ack o# local content (,*)!


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&hallenges o# E-marketers "perating in Emerging Economies

E-marketers operating in emerging economies #ace many

challenges such as solving pa2ment 3 trust Issues!In #act one o# the $iggest di6erences $etweendeveloped countries and emerging economies is thelimited use and acceptance o# credit cards inunderdeveloped countries (e!g! %olivia 0epalEthiopia)! Ahis pro$lem limits the a$ility #or potentialcustomers to make a purchase via the Internet!International e-marketers understand these di6erencesand must ;nd alternative means #or conducting

$usiness over the Internet!


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E-&ommerce @ayment G Arust Issues

E-marketers working in emerging economies

should also understand attitudes toward onlinepurchasing! / +,, study in ithuania #ound that * o#

Internet users had not made an online purchase$ecause they thought it was too risky!

1lternativepayments were accepted %ank trans#ers &ash on delivery @ostal orders

e%anka de$it cards speci;cally created #or online$uying&1ech 2epu$lic e%anka an Internet $ank was

esta$lished in ..H to handle secure online purchases!


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&hallenges o# E-marketers "perating in Emerging Economies

0olving credit card pa2ment issues is onl2 one o"

several problems. E-marketers must also deal

!ith:

a) %asic technology issues

$)


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a ) %as i c Aech no l ogyE-marketers must deal with #rightening issues o# $asic

technology such as the limited access to and use o#

computersand telephones:

Computers In many o# the developing nations there are markets to

$e penetrated $ut with low levels o# internet access itproves to $e very di>cult #or companies to reach theseuntapped markets! "ne aspect which helps thispro$lem is that entrepreneurs in these countries arediscovering that personal computers are too expensive

#or most people to o$tain! elephone

Aelephone land lines are entering the decline stage o#their product li#e cycle

/s wireless technology increases landlines will $ecomeless use#ul and ultimately o$solete


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%as i c Aech no l ogy ( co n )

Challenges

9lo$al computer ownership and access is

unevenly distri$uted!

"wnership ranges #rom H'* in Kuwait to +* in

%angladesh!

elephones (and connectivity) can $e scarce

and expensive!

Many consumers in countries with emerging

economies access the Internet #rom telecenters


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$)


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c) 4low Internet &onnection 4peeds

Broadbandconnections are developing =uickl2 and growth

is predicted to come #rom emerging markets!

0outh Korea has one o# the highest $road$and penetration rates

and one o# the worldFs "astest$ cheapest net!orks.

E-marketers must analy1e the relationship$etween *eb site

design and customerFs connection speeds! Many #eel the dial-up era is 8uickly coming to an end

"nline companies with a diverse customer $ase must keep their

e$ sites simple

E-marketerFs must understand how connection speeds

inuence do!nloadrates

E-marketers and graphic designers must di8erentiate

$etween what LcanJ $e done and what LshouldJ $e done!


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d ) 7 n p r e d i c t a $ l e @ o w e r 4 u p p l i e s

Emerging economiesF irregular

electricit2 can also $e a challenge #or

e-marketers!

Internet $ased $usiness cannot

complete transaction i# customerFs have

no electricity!

5 i l


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e 5 * i r e l e s s I n t e r n e t 1 c c e s s

Many countries including those with emerging

economies have more mo$ile telephone su$scri$ersthan ;xed-line telephone su$scri$ers (two-thirds o# the

world are now connected via mo$ile phones)! /s a

result e-marketers must consider how to:

Modi#y e$ site content #or small cell phone displays


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# ) A h e ? i g i t a l ? i v i d eInternet adoption is a6ected $y money literacy

and education! Ahis creates a divide $etweenthose who have access to the Internet and

those who donFt! It weakens the upward

mo$ility o# those on the lower socioeconomic

level who donFt have access to the Internet and

the in#ormation that comes with it! Ahis impactsindividuals on the lower socioeconomic levels

and those living in less developed countries!


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Ahe ?igital ?ivide (con)

Digital divide: Is that $etween countries and

$etween di6erent groups o# people within

countries there is a wide division $etween those

who have real access to in#ormation and

communications technology and are using it

e6ectively and those who donFtJ!

Ahe digital divide raises challenging8uestions #or

glo$al policy international $usiness and

entrepreneurship!

Ahe orld ide e$ is not really worldwide


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Building Inclusive E-Markets

Explosive growth o# mo$ile phoneshas ena$led e-marketers to reachbase of the pyramid consumer

segments! Mobile banking is one o# the most

success#ul e-marketing e6orts inE/4A developed countries (,DCs.5

In heavily agricultural countriesmo$ile applications #or "armers aremaking them more productive (e!g!7ganda India G Indonesia)

Explainhow e-marketingis $eing

used withvery lowincomeconsumers!


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Building Inclusive E-Marketscon5

Ahe Internet is aiding in closing the technologyand ;nancial gapin several ways: 6inancial assistance

Micro loans

Micro;nance &redit can $e issued to low income consumers

echnological assistance Mo$ile phones

4atellite Internet access Banking assistance

4olve the rural related pro$lem Many people are Lun$anka$leJ Mo$ile phones can $e used to conduct $anking

E-Marketing Ch 4

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