E Marketing Ch4 Global Markets

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Strauss Emarketing Chapter 4 Global Markets

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E Marketing Ch4 Global Markets

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