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Global E-Markets 3.0
- 1. E-Marketing/8E Chapter 4 Global E-Markets3.0 Modified by: Usman Tariq
- 2. Chapter 4 Objectives •Discuss overall trends in internet access, usage, and purchasing around the world. • Define emerging economies and explain the vital role of information technology in economic development. • Outline how e-marketers apply market similarity and analyse online purchase and payment behaviours in planning market entry opportunities. 4-2©2018
- 3. Chapter 4 Objectives,cont. • Describe how e-marketing strategy is influenced by computer and telephone access, credit card availability, attitudes toward internet use, slow connection speeds, website design, and electricity problems. • Review the special challenges of e-marketing on the wireless internet in the context of emerging economies. • Discuss the controversy related to the digital divide. • Explain how e-marketing is being used with very low income or base of the pyramid consumers. 4-3©2018
- 4. Overview of Global E-MarketingIssues • Users from other countries, speaking languages other than English, will dominate the Web. • In May 2011 there were approximately 565 million English-speaking and 510 million Chinese- speaking Web users. (factsheet: 2018) • Global e-marketers must understand that a country’s e-readiness profile significantly influences marketing strategy and tactics. 4-4©2018
- 5. Top 10 LanguagesUsed On the internet today ©2018 5 September 2018 https://speakt.com/top-10-languages-used-internet/
- 6. Worldwide internet Usage andPopulation Statistics ©2018 6 World Regions 2017 Internet Use (millions) 2011 Internet Use (millions) User Growth (2011– 2017) (%) Percentage of Users Worldwide (2017) Estimated 2017 Population (millions) Internet Usage as Percentage of Population North America 320.1 273.0 17.3 8.2 363.2 88.1 Europe 659.6 476.2 38.5 17.0 822.7 80.2 Asia 1,938.1 922.2 110.2 49.7 4,148.2 46.7 Latin America/Caribbean 404.3 215.9 87.3 10.4 647.6 62.4 Africa 388.4 118.6 227.5 10.0 1,246.5 31.2 Middle East 146.9 68.6 114.1 3.8 250.3 58.7 Oceania 28.2 21.3 32.4 0.7 40.5 69.6 Worldwide Total 3,885.6 2,267.2 71.4 99.8 7,519.0 51.7
- 7. Internet usage worldwide- Statistics & Facts ©2018 7 https://www.statista.com/topics/1145/internet-usage-worldwide/ Number of internet users worldwide from 2005 to 2018 (in millions)
- 8. Emerging Economies • Emergingeconomies are characterized by a rapidly developing middle class, which creates demand for products and services. • Four countries represent the power and opportunity in emerging markets: Brazil, Russia, India and China (BRIC). • The next group of emerging market economies includes Colombia, Indonesia, Vietnam, Egypt, Turkey and South Africa (CIVETS). 4-8©2018
- 9. The world in2030 ©2018 9 https://www.hsbc.com/news-and-insight/2018/the-world-in-2030
- 10. The world inICT ©2018 10 India and China, by 2030, will account for 35 percent of the global population and nearly 25 per cent of the world’s working-age populace will be elsewhere in Asia. ITU estimates that there are some 250 million fewer women online than men. (Source: ITU, ICT Facts and Figures 2016) There are 184 million fewer women owning a mobile phone than men. (Source: GSMA, Mobile Gender Gap Report 2018) On average, only 3.5% of women in the 49 reporting countries can write a computer program compared to 7.8% of men who can do so. (Source: ITU, World ICT Development Indicator)
- 11. Importance of Information Technology •The internet and its supporting technologies can jump- start national economies. • E-marketers in emerging economies confront marketing issues and unique challenges related to the conditions of operating within a still developing nation. 4-11©2018
- 12. Unique Challenges ofe-Marketing in 2019 ©2018 12 https://www.industrialmarketingtoday.com/unique-challenges-of-manufacturing-content-marketing-in-2019/
- 13. Country & MarketOpportunity Analysis • Market Similarity: Marketers often choose foreign markets that have characteristics similar to their home market for initial entry. – A U.S. company might first target Canada, UK, and Australia before targeting France, Japan or Germany, for example. – CAGE (culture, administration, geography, economic) framework helps e-marketers evaluate similarities and differences between markets. ©2018 4-13
- 14. Diaspora Communities • Whenpeople leave their home country they may become part of a diaspora community and want to maintain relationships with their homeland. • E-businesses can target diaspora communities. – Tortas Peru offers homemade, traditional Peruvian cakes online. – Shop.muncha.com offers products to Nepalis living overseas can send to individuals in Nepal. • Market convergence, in which markets become more similar over time, can be expedited by the Web. ©2018 4-14
- 15. The World Mapof Mobile Game Markets ©2018 15 http://www.gamerefinery.com/world-map-mobile-game-markets/ The mobile games market is growing at a fast speed (52% during 2016 according to Newzoo), making it a truly a global area of business.
- 16. E-Commerce Payment and TrustIssues • E-commerce in emerging markets is often hampered by limited use of credit cards and lack of trust in safely conducting online transactions. – In Egypt, Senegal and Pakistan less than 2% of the population owns a credit card. – Most credit card usage in Nepal is by young professionals, upper-income Nepalis and tourists. 4-16©2018
- 17. Technological Tipping Points •E-marketers must understand the seismic changes occurring in consumer access to online content. – Computer and mobile phone technology. – Rapid development of broadband. 4-17©2018
- 18. Digital Disruption WillNever Stop ©2018 18
- 19. Transition to aknowledge-based economy ©2018 19 Source:
- 20. Mobile Broadband Services ©201820 • Prepaid subscriptions accounted for 73.8 percent, or 31 million of total users. • Fixed-line subscribers reached 3.72 million, with a penetration rate of 35.4 percent. • Residential telephone lines reached 1.9 million, accounting for 52 percent of total lines. • Broadband users edged up 1 percent quarter-on-quarter to 31.5 million for Q1 2018. • Mobile and fixed broadband subscribers reached 29.3 million and 2.19 million, respectively, in the first quarter.
- 21. Total mobile subscriptionsin Saudi Arabia (2014-2018) ©2018 21
- 22. Total mobile broadbandsubscriptions in Saudi Arabia (2014-2018) ©2018 22
- 23. Wireless internet Access: MobilePhones • By 2022 3.8 billion smartphone users (Forrester) • Challenges of wireless e-marketing: 1. Modification of content for small screens 2. Content development 3. Pricing and secure payments • E-marketers must also understand that mobile consumer behavior differs from desktop or laptop consumer behavior. 4-23©2018
- 24. Smartphones • Marketers mustunderstand how smartphones are influencing consumer purchase behavior in various countries. – 36% Egyptian consumers with a smartphone changed their minds about buying a product because of real-time, online research. – 37% of smartphone users in Argentina make an in-store purchase after online research with their smartphones. ©2018 4-24
- 25. Internet of Things(IoT) • Saudi IoT market will offer an opportunity of US$750 million in 2016, and exceed US$1.1 billion by 2018. • 48% of Saudi organizations plan IoT investments over the next 1-3 years. • Most IoT applications essentially IoT based. Increasingly applied in Smart City projects and related applications. ©2018 25
- 26. Internet of Things(IoT) – Market Opportunities ©2018 26
- 27. Broadband • There wereover 890 million broadband lines worldwide in 2017. • Global prices continue to decline as more individuals and firms subscribe to broadband. ©2018 4-27
- 28. World Internet Usersand 2018 Population Stats ©2018 28 https://www.internetworldstats.com/stats.htm
- 29. The Digital Divide •E-marketers must consider the social environment in which e-business operates. – The division between those who have access to information and those who don’t is termed “digital divide.” – Disparities with regard to technology access can create a digital divide between countries or populations, such as urban and rural consumers in China. • The digital divide raises challenging questions for global policy, international business, and entrepreneurship: what are their responsibilities, if any, for narrowing the gap? 4-29©2018
- 30. ©2018 30 Overcoming thedigital divide: One laptop per child Over 2 million children and teachers in 42 countries are learning with XO laptops today
- 31. Building Inclusive E-Markets • Explosivegrowth of mobile phones has enabled e-marketers to reach base of the pyramid consumer segments. • Mobile banking is one of the most successful e- marketing efforts in Least Developed Countries (LDCs) . • In heavily agricultural countries, mobile applications for farmers are making them more productive. 4-31©2018
- 32. Social Networking • 2.5billion people use social networking when online. – Latin America, Israel and Russia, where the social network Vkontakte dominates, have some of the world’s heaviest and most engaged users of social media. ©2018 4-32
- 33. Social Media inKSA ©2018 33