E Marketing Ch4 Global Markets
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E Marketing Ch4 Global Markets

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Strauss Emarketing Chapter 4 Global Markets

Strauss Emarketing Chapter 4 Global Markets

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E Marketing Ch4 Global Markets E Marketing Ch4 Global Markets Presentation Transcript

  • E-Marketing 4/E Judy Strauss, Adel I. El-Ansary, and Raymond Frost Chapter 4: Global Markets
  • Chapter 4 Objectives
    • After reading Chapter 4 you will be able to:
    • Discuss overall trends in 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 analyze online purchase and payment behaviors in planning market entry opportunities.
  • 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, Web site 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.
    View slide
  • The FIFA Story
      • Federation Int érnationalé de Football Association (FIFA) partnered with Yahoo to create the most popular sports site in history.
        • FIFAworldcup.com was seen by 3.7 million people from 17 countries May 1-June 23, 2002.
      • Site offered continual updates of information, photos and video highlights.
      • Do you think FIFA’s subscription model ($4.95-$19.95) for video access would work for U.S. sports events? Which ones?
    View slide
  • Worldwide Internet Usage
    • Ex. 4.1 shows that there were over 785 million Internet users worldwide.
    • Worldwide usage more than doubled from 2000-2004.
    • Asia, with 243 million users, has the highest number of users.
    • North America has the highest penetration of users, almost 70%.
  • Internet Use Varies by Country
    • The world’s largest online markets are the U.S. (186 million users) and China (96 million users).
    • The top 10 countries account for 62.4% of all global users.
    • Some smaller countries, such as South Korea and Iceland have the highest penetration, over 70% of their populations.
  • Top Ten Countries 67.42 584.9 Total 63.5 Canada 23.0 Brazil 10 64.0 Switzerland 26.6 France 9 64.0 The Netherlands 28.6 Italy 8 64.0 United States 32.0 South Korea 7 66.1 Australia 34.1 United Kingdom 6 69.0 Sweden 39.2 India 5 69.1 Denmark 41.8 Germany 4 69.1 Norway 77.9 Japan 3 70.5 Iceland 95.8 China 2 74.9 South Korea 185.9 United States 1 % of Population Internet Users Country Number of Internet Users (millions) Country Rank
  • Developed Economies
    • Developed countries are highly industrialized, use technology to increase efficiency, and have a high GDP per capita.
      • Western European countries
      • North American countries
      • Japan
      • Australia & New Zealand
    • Developed countries are ideal for the e-marketing activities discussed in the text.
  • Emerging Economies
    • Have low levels of GDP per capita and are experiencing rapid economic growth.
    • Emerging economies can be found on every continent.
      • China
      • Central & Southeast Asian countries
      • Mexico, Central & South America
      • Baltic States & Eastern Europe
      • African countries
  • Technology plays an important role.
    • The Internet accelerates the process of economic growth through diffusion of new technologies.
      • Bangalore, India is the center of India’s explosive growth in software and IT.
    • Greatest obstacles to e-commerce in emerging economies include:
      • Slow connection speeds
      • Costs of domestic phone calls
      • ISP costs
      • Lack of local content and content in one’s own language
  • Credit Cards & E-Commerce Payments
    • Convenience and ease of transactions are two of the Internet’s greatest benefits.
    • Credit cards and secure online payment systems are the basis for Web-based transactions in developed countries.
    • Marketers must analyze relevant buyer behaviors within a market.
      • Number of credit cards in circulation.
      • Consumer attitudes toward credit.
  • Technological Readiness Influences Marketing
    • Limited access to and use of computers and telephones.
    • High Internet connection costs.
    • Slow Internet connections speeds.
    • Unpredictable power supplies.
  • Computers & Telephones
    • Computer access is unevenly distributed throughout the world.
    • Exhibit 4.8 shows computer ownership data for selected countries.
    • Many consumers in countries with emerging economies access the Internet from free-standing shops, rather than homes.
    • Telephones (and connectivity) can be scarce and expensive.
  • Internet Connection Costs
    • Dial-up is still the most common way to connect to the Internet worldwide.
    • Broadband and mobile phone connections are developing quickly.
    • Dial-up connection charges vary considerably in emerging economies.
  • Connection Costs in Arab Countries
  • Connection Speed & Web Design
      • Most Internet connections in the developing world are still dial-up.
      • Connection speed has significant implications for Web site design.
        • Graphics usage
        • Sound
      • Google’s simple, text-only format supports rapid downloads worldwide.
      • High speed access is gaining momentum worldwide.
  • Broadband Penetration for Selected Countries 0.01 Nigeria 0.02 Russia 0.03 Turkey 0.05 Colombia 0.12 Bulgaria 0.19 Brazil 0.21 China 0.31 Hungary 0.77 Italy Broadband Subscribers as a percentage of total population Country
  • Other Issues
    • Electrical problems can pose another challenge for e-marketers.
    • Lack of electricity can force an e-business offline.
    • Explosive diffusion of cellular telephones is changing e-marketing dramatically.
    • Countries with emerging economies can leapfrog industrial countries in terms of usage.
      • Short messaging service (SMS) is very popular worldwide.
  • The Digital Divide
    • E-marketers must consider the social environment in which e-business operates.
    • Disparities with regard to technology access can create a digital divide between countries or populations.
    • The digital divide raises challenging questions for global policy, international business and entrepreneurship.