E-Marketing in Bangladesh - Status, Potential & Constraints [Elegant (VI)]


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E-Marketing in Bangladesh - Status, Potential & Constraints [Elegant (VI)]

  1. 1. Assignment On“E-Marketing in Bangladesh - Status, Potential & Constraints” “Elegant (VI)”
  2. 2. Assignment On E-Marketing Course: 525 Topic: “E-Marketing in Bangladesh - Status, Potential & Constraints”Prepared for:Md. Moktar AliAssociate ProfessorDepartment of MarketingFaculty of Business of StudiesUniversity of Dhaka Prepared by: “Elegant (VI)” Section: A Department of Marketing (14th) MBA Faculty of Business Studies University of Dhaka Date of Submission: 29th January, 2013 eng. 1
  3. 3. Group Profile: “Elegant (VI)”No. Name BBA MBA Designation Roll Roll 1 Md. Abdur Rakib 041 375 Member 2 Rumana 087 427 Member 3 Md. Al Amin 089 419 Member 4 Anjuman Ara 139 215 Member 5 Md. Moben Ahmed 151 526 Member 6 Chowdhury Omor Faruque 173 377 Leader 2
  4. 4. Table of Contents: No. Particulars Page No. 1 Introduction 4-5 2 Objective of the Study 5 3 Overview of E-Marketing 5-9 4 Literature Review 10-12 5 Present Status of E-Marketing in Bangladesh 12-16 6 Types of E-Marketing in Bangladesh 17-20 7 Business Models 21-22 8 Financial Prospects of E-Marketing 23-25 9 Technological Prospects of E-Marketing 25-28 10 Constraints or Challenges of E-Marketing 29-31 11 Methodology of E-Marketing Survey 31-32 12 Survey Questionnaire, Result & Analysis 33-41 13 Recommendations 41-42 14 Conclusion 42-43 15 References 43Table of Figures: No. Particulars Page No. 1 Various E-Marketing Domain 6 2 Setup of E-marketing in BD 7 3 E-Marketing Activities 8 4 Total E-marketing Strategy 9 5 E-marketing Promotions 9 6 Differences among Internet Marketing, E-Marketing, E-Commerce & E- 11 Business 7 Internet Usages 13 8 Evolution of E-marketing in Bangladesh 14Table of Tables: No. Particulars Page No. 1 Internet Usage Statistics 14 2 Trend of Gross Domestic Product of Bangladesh 23 3 Trend of Export, Import & Remittance 24 4 Ad Server Market Structure 24 3
  5. 5. “E-Marketing in Bangladesh - Status, Potential & Constraints”Introduction:Bangladesh is a developing country. The recent technology boom has created a digital age. Theexplosive growth in computer, communications, information, and other digital technology hascreated new way of delivering value to customer. Now, more than ever before, we all areconnected to each other and to information anywhere in the world. Where it once took days orweeks to receive information about national/global events, we now learn about them as they areoccurring through live satellite broadcasts and news websites. When it once took weeks tocorrespond with others in distant places, they are only moment away by cell phone, email orwebcam. The digital age has provided marketers with exciting new ways to learn about and trackcustomers and to create product and service tailored to individual customer needs. It helpingcustomer to communicate with customer in large group or in one to one.Digital technology has brought a new wave of communication, advertising, and relationshipbuilding tools-ranging from online advertising, video sharing tools, cell phone, and video gamesto web widget and online social network. The digital shift means that marketer can no longerexpect consumers to always seek them out. Nor can they always control conversation about theirbrand.The new digital world makes it easy for customer to take marketing content that once lived onlyin advertising or on a brand. Website with them wherever they go and share it with friends. Morethan just one to traditional marketing channels, the new digital media must be fully integratedinto the marketers’ customer relationship building efforts.” [Kotler page 27, principles ofmarketing]Digital wave has created new dimensions of marketing which is referred as e marketing, which isthe process by which companies create value for customers and build strong customerrelationships electronically in order to capture value from customers in return. Today’ssuccessful companies have one thing in common: they are strongly customer focused and heavilycommitted t marketing. These companies share a passion for understanding and satisfyingcustomer needs in well defined target markets. They motivate everyone in the organization to 4
  6. 6. help build lasting customer relationships based on creating value. P&G’s chief global market,Jim Stergel, puts it this way: “If we are going to make one big bet on our future- right here rightnow- I’d say that the smart money is on building [customer] relationships.” For marketing digitaltechnology is now emerged as new momentum for creating value and building customerrelationship. By observing electronic prospects in marketing, many multinationals likebikroy.com and local company like Rokomary.com have started operation in Bangladesh ononline.Objective of the Study: Broad objective:E-marketing, understanding steps in e-marketing process, defining key elements in e-marketing. Specific objectives:  Finding out current status of e-marketing in Bangladesh.  Describing and analyzing key potential of e-marketing in Bangladesh.  Illustrating key barrier to e-marketing.  Differentiating the implication of e-marketing in consumer market and business market.  Focusing product category mostly suited for e-marketing in Bangladesh.Overview of E-Marketing:E-marketing is the fastest –growing form of direct marketing. Recent advances have created adigital age. Widespread use of internet is having a dramatic impact on both buyers and themarketers who serve them. If we consider e-marketing domain we find the following figure inBangladeshi perspectives: 5
  7. 7. Targeted to Targeted to Consumer Business Initiated by B2C B2B Business (Business to (Business to Consumer) Business) C2C Initiated by C2B (Consumer Consumer (Consumer to to Business) Consumer) Figure: 1 Various E-Marketing DomainB2C (Business to Consumer):In this form of marketing, businesses sell goods and services online to final consumers. Businesscan sell almost anything online such as from clothing, kitchen and airline tickets to computersand cars.B2B (Business to Business):B2B markets use B2B websites, email, online product catalogs, online trading network and otheronline resources to reach new business customers, serve current customers more effectively andobtain buying efficiency and better prices.Most major B2B marketers now offer product information, customer purchasing and customersupport services online. Simply beyond selling their products and services online, they can usethe internet to build stronger relationship with business customers. For example,www.rokomari.com not only sells online but also builds strong customer relationship with them. 6
  8. 8. C2C (Consumer to Consumer):C2C e-marketing and communication occurs on the web between interested parties over a widerange of products and services. In some cases, internet provides an excellent means by whichconsumer can buy or exchange goods or information directly with one another. For example,www.bikroy.com offers popular market spaces for displaying and selling almost anything fromarts and antiques, coins and stamps to consumer electronics.In other cases, C2C involves interchanges of information through internet forums that support tospecific special interest groups.C2B (Consumer to Business):The final e-marketing domain is B2B e-marketing. Thanks to the internet. Today consumers arefinding it easier to invite prospects and customers to send in suggestions and questions viacompany websites. Besides, rather than waiting for an invitation, customers can search for sellerson the web, learn about their offers, initiate purchase and give their valuable feedbacks. Usingthe web, consumers can even drive transactions with business rather than the other ways around.Set-up of E-marketing in Bangladesh: Placing ads or Creating promotional website tools online Setting up online social Using email network Conducting E- marketing Figure: 2 Setup of E-marketing in BD 7
  9. 9. Blueprint of E-Marketing: Figure: 3 E-Marketing Activities 8
  10. 10. Total E-Marketing Strategy: Website Effectiveness E-Mali Search Engine Campaign Strategy Strategy Total E- Marketing Strategy Customer Online Database Advertising Managemen t & Retail Figure: 4 Total E-marketing Strategy Direct Marketing Loyalty Tradeshow Programs Promotion E- Marketing Events Advertising Public Relations Figure: 5 E-marketing Promotions 9
  11. 11. Literature Review:“E-marketing is sometimes considered to have a broader scope since it refers to digital mediasuch as web, e-mail and wireless media, but also includes management of digital customer dataand electronic customer relationship management systems (E-CRM systems).”- Dave ChaffeyElectronic Marketing (E-Marketing) can be viewed as a new philosophy and amodern business practice involved with the marketing of goods, services, information andideas via the Internet and other electronic means. By reviewing the relevant literature it isnoticed that definitions of electronic marketing (E-Marketing) vary according to eachauthors point of view, background and specialization. For that, while Smith andChaffey defines it as: “Achieving marketing objectives through applying digitaltechnologies” (Smith and Chaffey, 2005: 11), Strauss and Frost define it as: “The use ofelectronic data and applications for planning and executing the conception, distribution andpricing of ideas, goods and services to create exchanges that satisfy individual and organizationalgoals” (Strauss and Frost, 2001: 454).On the other hand, the review of the relevant literature revealed that one of the main obstacles inthe literature is the unclear way of dealing with the concept and definition of E-Marketing. In this respect most of the researchers misused the term E-Marketing; themajority of researchers are using the terms: E-Marketing / Internet-marketing / E-commerce / E-business as equivalents or a deferent wording for the same meaning,which is incorrect because they are deferent. For example, E-Marketing has a broaderscope than internet- marketing since Internet Marketing (IM) refers only to theInternet, World Wide Web, e-mails. While E- Marketing includes all of that plus all otherE-Marketing tools like: Intranets, Extranets and mobile phones. In contrast with that, E-commerce and E-business have a wider and broader scope than E-Marketing. Thesedifferences can be illustrated in the following figure. 10
  12. 12. E-Business E-Commerce E-Marketing Internet Marketing Figure: 6 Differences among Internet Marketing, E-Marketing, E-Commerce & E-Business Source: El-Gohary et al (2010)By reviewing the literature of E-Marketing; in one hand, it is noticed that the number of studiesconducted by researchers and practitioners in the field of E-Marketing from 2003 to 2010is relatively limited. This can be justified by the relative novelty of E- Marketing.This provides an indication that E-Marketing is relatively new for academics and practitionersand also provides reasonable expectations about the increase in number of studies related to E-Marketing in the near future. The total number of studies was 365 studies, 73 % ofit was empirical and 27 % of the total number of articles was not.It is also noticed that the research activity output in E-Marketing had decreased significantlybetween 2003 and 2008 within the literature period. Although the published articleshad covered the following research areas: E-business, E-marketplace, ElectronicCommerce, Electronic platforms, ICT adoption, Internet marketing, On-line trust,B2B, Performance evaluation, The Web, Electronic marketing, E-mail Making, E- readiness, E-relationships, E-security, E-service, E-supply chain management, Internet adaptation, 11
  13. 13. Mobile marketing and some other research. Electronic Commerce was the majorresearch area covered by the researchers in the field followed by Electronic Business andInternet marketing. Most of the empirical studies had been conducted in: the USA, Australia,New Zealand and the UK which was the biggest in number of studies conduct in the literatureperiod.By analyzing the articles conducted in the UK market it was noticed that thesearticles had covered the following research areas: E-business, Electronic Commerce,Electronic marketing, Internet marketing, the web, ICT adoption, Businessperformance and some other research areas. On the other hand, most of the articlesin the literature were published in the Journal of Small Business and EnterpriseDevelopment (27 articles) with a percentage of 7.4 % of the total number of studies conducted inthe period of the literature. The next six top journals were: Internet research, Journal of InternetMarketing and Advertising, Journal of Electronic Commerce Research, Journal of InternetMarketing, Journal of Interactive Marketing and Journal of Business-to-Business Marketing.Based on the literature there are clear research gaps in the field of E-Marketing especially in theareas of E- Marketing performance as well as E-Marketing adoption in Small Businessenterprises (SBEs). To fill such gaps and extend previous studies there is a need for conductingmore research to investigate the relationship between implementing E-Marketing and SBEsperformance.Present Status of E-marketing in BangladeshBangladesh has undergone a long way in its development of information and technology sector,which has paved the way of e -commerce and e -business. E-marketing has a significant impacton business costs and productivity. E-marketing has a chance to be widely adopted due to itssimple applications. Thus it has a large economic impact. It gives the opportunity for “boundarycrossing” as new entrants, business models, and changes in technology erode the barriers thatused to separate one industry from another. These increases competition and innovation, whichare likely to boost overall economic efficiency. Now, E-marketing has emerging businesspotentials in BD. The rapid expansion of the use of internet, cell phone, online banking, 12
  14. 14. changing lifestyle of people, and migration of labor in foreign country is making E-marketingmore prospectus in the country. There is also some great restriction exist in the development ofE-marketing like security issue, low per capita income, lower access rate to internet, lack ofgovernment support, lack of infrastructural development.Starting a business in Bangladesh however is getting more competitive in this edge of businessflourishment, economic uncertainty and variety of options to the customer. Today’s marketingtechniques are the result of a huge technological and internal movement within this last decade.Some multinational companies have introduced us some real exceptional marketing methods andlocal companies are in competition. Now, the key to success for these businesses are choosingthe right method of marketing and providing the right message to the customer. Internet Usage Statistics: 5,570,535 Internet users as of Dec, 2011 3.5% of the population, according to ITU. Figure: 7 Internet Usages 13
  15. 15. YEAR Users Population % of internet users2000 100,000 134,824,000 0.1 %2007 450,000 137,493,990 0.3 %2009 556,000 156,050,883 0.4 %2010 617,300 158,065,841 0.4 %2011 5,501,609 158,570,535 3.5 % Table: 1 Internet Usage Statistics Source: International Monetary Fund. Phase 3 Phase 2 (2010- onwards) (2006-2009) Isolated e- Phase 1 marketing(Late 1990s-2006) Infrastructure building Figure: 8 Evolution of E-marketing in Bangladesh 14
  16. 16.  Types of E-Marketing Suitable for Bangladeshi Company:By analyzing the demographics, data from reliable sources and by having a small online surveywe have selected some of the most effective- marketing services in Bangladesh. Here is a list ofthese:  Social Media Marketing  Email Marketing to Targeted Customers  Search Engine Optimization  Content Marketing  Advertising on Ads Network  Brand and Reputation Management Names of E-Marketing Company in Bangladesh:  Customize sourcing  Innotex  Macro media  Email brain  BD.jobs.com  Bikroy.com  Hatbazar.com  Tolet.com 15
  17. 17. For a new entrant in a market, marketing is a crucial, and somewhat expensive, requirement inorder to development some awareness of the new product. The private sector in Bangladesh hasmade significant progress in developing a marketing push through its industry associations. Thepublic sector, however, can also contribute to this effort.Globalization has brought in many changes in the business scenario with the whole worldinching towards one big market place. Communication between the buyers and sellers hasbecome critical as each can opt to explore a greater number of alternatives than ever before. E-marketing through Internet, e-mails, websites, and other facilities, enables a businessman to belinked with every corner of the world, and thus opens up greater opportunities in the worldmarket. Another important factor is the time required for completing a business transaction. Asmarkets are becoming competitive and information is more readily available, a quick, reliableAnd replicable transaction implies availing of prevailing opportunities. On the contrary, delays inprocessing a transaction might become synonymous to wasting an opportunity. Therefore, a fastand alternative mechanism of communication, contract, and payment is an integral part of aglobally competitive business organization. How important or relevant is e-marketing to theeconomy of Bangladesh – a developing economy – in general and to the export market inparticular? The Information Technology (IT) revolution has been too phenomenal to predict itsfuture growth and its use in an economy like Bangladesh’s. In the light of the recent spate ofglobalization and the initiation of the World Trade Organization (WTO), assessing theimmediate and short or medium term relevance of e-marketing to Bangladesh becomesimperative. Now -a-days personal computers and the Internet are also emerging as day-to-daybusiness tools in our country. These positive indicators are favoring the prospects of E-marketingin Bangladesh. 16
  18. 18. Types of E-Marketing in Bangladesh:E-marketing is broadly divided in to the following types: Display Advertising: the use of web banners or banner ads placed on a third-party website or blog to drive traffic to a companys own website and increase product awareness. Search Engine Marketing (SEM): a form of marketing that seeks to promote websites by increasing their visibility in search engine result pages (SERPs) through the use of either paid placement, contextual advertising, and paid inclusion, or through the use of free search engine optimization techniques also known as organic result. Search Engine Optimization (SEO): the process of improving the visibility of a website or a web page in search engines via the "natural" or un-paid ("organic" or "algorithmic") search results. Social Media Marketing: the process of gaining traffic or attention through social media websites such as Facebook, Twitter and LinkedIn. Email Marketing: directly marketing a commercial message to a group of people using electronic mail. Referral Marketing: a method of promoting products or services to new customers through referrals, usually word of mouth. Affiliate Marketing: a marketing practice in which a business rewards one or more affiliates for each visitor or customer brought about by the affiliates own marketing efforts. Inbound Marketing: involves creating and freely sharing informative content as a means of converting prospects into customers and customers into repeat buyers. Video Marketing: This type of marketing specializes in creating videos that engage the viewer into a buying state by presenting information in video form and guiding them to a product or service. Online video is increasingly becoming more popular among internet users and companies are seeing it as a viable method of attracting customers. Online advertisement as Digital Promotions for Television:Online advertisement can also be classified as Digital Promotions. Digital promotion inconnection to the television industry is when networks use authentic digital resources to promotetheir new shows in a growing vast range of venues. Television networks development of digital 17
  19. 19. off air promotional strategies allowed digital promotion to remain significant to theadvertisement advancement in the television.Examples of television online digital promotions: The Sci Fi network for loaded a special recapepisode of Battlestar Galactica onto Microsoft’s Xbox online gaming service; this gave theaudience additional opportunities to sample content if they may or may not be familiar with theshow. Another example of digital promotion in television is when network CBS incorporatednew digital technologies of Bluetooth-enabled mobile devices that were able to download athirty-second clip of a new show on their devices; consumers standing in range of a billboarddon’t need an internet link to download the show’s content. These non-linear viewingopportunities provided as a valuable tool for gaining audiences; and to encourage them tointersect with the linear audience. Approaches: One-to-one approaches: In a one-to-one approach, marketers target a user browsing the Internet alone and so that the marketers messages reach the user personally. This approach is used in search marketing, for which the advertisements are based on search engine keywords entered by the users. This approach usually works under the pay per click (PPC) method.[ Appeal to specific interests: When appealing to specific interests, marketers place an emphasis on appealing to a specific behavior or interest, rather than reaching out to a broadly defined demographic. These marketers typically segment their markets according to age group, gender, geography, and other general factors. Appealing to specific users can be achieved through behavioral targeting which refers to the use of behavioral patterns and putting up the relevant content suitable to the viewers interest obtained from the user through cookies and other tools and contextual advertising which refers to the publishing of advertisements and ads based on the context the user in. For example if the user is searching for coffee, the search engine publishes ads related to coffee. Niche marketing: In conventional niche marketing, clusters of consumers (the niche) are identified in order to more economically and efficiently target them. Similarly, niche internet marketing attempts to create a more direct advertising message for those who are seen as most likely to buy the product being advertised (see Target audience and Conversion rate). 18
  20. 20. Niche internet marketing focuses on marketing products and services which are, or can appear, tailor-made for a specific subset of consumers who are expected to buy the product or service with a specific motivation. The online advertising message (or product web site) can then be similarly tailor-made to target that assumed motivation. In combination with search engine optimization, the niche internet marketer can attempt to increase the likelihood that their products advertisement (or site) will be seen by customers in the relevant niche. Geo-targeting: In Internet marketing, geo-targeting is the methods of determining the geo- location of a website visitor with geo-location software, and delivering different content to that visitor based on his or her location, such as latitude and longitude, country, region or state, city, metro code or zip code, organization, Internet Protocol (IP) address, ISP, and other criteria. Types of Ad: Though, as seen above, the large majority of online advertising has a cost that is brought about by usage or interaction of an ad, there are a few other methods of advertising online that only require a onetime payment. The Million Dollar Homepage is a very successful example of this. Visitors were able to pay $1 per pixel of advertising space and their advert would remain on the homepage for as long as the website exists with no extra costs.  Floating Ad: An ad which moves across the users screen or floats above the content.  Expanding Ad: An ad which changes size and which may alter the contents of the webpage.  Polite Ad: A method by which a large ad will be downloaded in smaller pieces to minimize the disruption of the content being viewed  Wallpaper Ad: An ad which changes the background of the page being viewed.  Trick Banner: A banner ad that looks like a dialog box with buttons. It simulates an error message or an alert.  Pop-Up: A new window which opens in front of the current one, displaying an advertisement, or entire webpage. 19
  21. 21.  Pop-Under: Similar to a Pop-Up except that the window is loaded or sent behind the current window so that the user does not see it until they close one or more active windows. Video Ad: similar to a banner ad, except that instead of a static or animated image, actual moving video clips are displayed. This is the kind of advertising most prominent in television, and many advertisers will use the same clips for both television and online advertising. Map Ad: text or graphics linked from, and appearing in or over, a location on an electronic map such as on Google Maps. Mobile Ad: an SMS text or multi-media message sent to a cell phone. Superstitial: An animated ad on a Web page from Enliven Marketing Technologies. It uses video, 3D content or Flash to provide a TV-like advertisement. Used to be known as Unicast Transitional ads as they were originally made by Unicast Communications but the company was acquired by Viewpoint Corporation in 2004, which then changed its name to Enliven in 2008. [24] Interstitial ad: a full-page ad that appears before a user reaches their original destination. Frame ad: an ad that appeared within an HTML frame, usually at the top with the site logo. As the user browsed the site, the frame would not change.In addition, ads containing streaming video or streaming audio are becoming verypopular with advertisers. E-mail advertising Display advertising Affiliate marketing Behavioral targeting Semantic advertising Social network advertising 20
  22. 22. Business Models:This section does not cite any references or sources. Please help improve this section by addingcitations to reliable sources. Unsorted material may be challenged and removed. Internetmarketing is associated with several business models given as the following: E-Commerce: a model whereby goods and services are sold directly to a consumer or business. Lead-Based Websites: a strategy whereby an organization generates value by acquiring sales leads from its website. Similar to walk-in customers in retail world. These prospects are often referred to as organic leads. Affiliate Marketing: a process wherein a product or service developed by one entity is sold by other active sellers for a share of profits. The entity that owns the product may provide some marketing material (e.g., sales letters, affiliate links, tracking facilities, etc. However, the vast majority of affiliate marketing relationships come from e-commerce businesses that offer affiliate programs. Revenue Models in Bangladesh:Compensation Methods:The three most common ways in which online advertising is purchased are CPM, CPC, andCPA.  CPM (Cost per Mile) or CPT (Cost per Thousand Impressions) is when advertisers pay for exposure of their message to a specific audience. "Per mille" means per thousand impressions, or loads of an advertisement. However, some impressions may not be counted, such as a reload or internal user action.  CPV (Cost per Visitor) is when advertisers pay for the delivery of a Targeted Visitor to the advertisers website.  CPV (Cost per View) is when advertisers pay for each unique user view of an advertisement or website (usually used with pop-ups, pop-unders and interstitial ads). 21
  23. 23.  CPC (Cost per Click) or PPC (Pay per Click) is when advertisers pay each time a user clicks on their listing and is redirected to their website. They do not actually pay for the listing, but only when the listing is clicked on. This system allows advertising specialists to refine searches and gain information about their market. Under the Pay per click pricing system, advertisers pay for the right to be listed under a series of target rich words that direct relevant traffic to their website, and pay only when someone clicks on their listing which links directly to their website. CPC differs from CPV in that each click is paid for regardless of whether the user makes it to the target site. CPA (Cost per Action or Cost per Acquisition) or PPF (Pay per Performance) advertising is performance based and is common in the affiliate marketing sector of the business. In this payment scheme, the publisher takes all the risk of running the ad, and the advertiser pays only for the number of users who complete a transaction, such as a purchase or sign- up. This model ignores any inefficiency in the sellers web site conversion funnel. The following are common variants of CPA:  CPL (Cost per Lead) advertising is identical to CPA advertising and is based on the user completing a form, registering for a newsletter or some other action that the merchant feels will lead to a sale.  CPS (Cost per Sale), PPS (Pay per Sale), or CPO (Cost per Order) advertising is based on each time a sale is made.[18] eCPM: Effective CPM or eCPM calculated through other conversion events such as Cost per Clicks, Cost per Downloads, Cost per Leads etc. for example when an advertiser getting $2 per download and for 100,000 impressions you received 10 downloads worth $20, in this case your effective CPM or eCPM will be 2*20*1000/100,000= $0.4 Fixed Cost: Advertiser paying fixed cost for delivery frame by campaign flight dates without any relevance to performance Cost per conversion describes the cost of acquiring a customer, typically calculated by dividing the total cost of an ad campaign by the number of conversions. 22
  24. 24. Financial Prospects of E-Marketing: Macro-economic trend:This is a chart of trend of gross domestic product of Bangladesh at market prices estimated bythe International Monetary Fund with figures in millions of Bangladeshi Taka. However, thisreflects only the formal sector of the economy. Year Gross Domestic Product US Dollar Exchange Inflation Index Per Capita Income (2000=100) (as % of USA) 1980 250,300 16.10 Taka 20 1.79 1985 597,318 31.00 Taka 36 1.19 1990 1,054,234 35.79 Taka 58 1.16 1995 1,594,210 40.27 Taka 78 1.12 2000 2,453,160 52.14 Taka 100 0.97 2005 3,913,334 63.92 Taka 126 0.95 2008 5,003,438 68.65 Taka 147 Table: 2 Trend of Gross Domestic Product of BangladeshMean wages were $0.58 per man-hour in 2009.The World Bank predicted economic growth of 6.5% for current year. Foreign aid has seen adecline of 10% over the last few months but economists see this as a good sign for self-reliance.There has been 18% growth in exports over the last 9 months and remittance inflow hasincreased at a remarkable 25% rate. 23
  25. 25. Fiscal Year Total Export Total Import Foreign Remittance Earnings 2007–2008 $14.11b $25.205b $8.9b 2008–2009 $15.56b $22.00b+ $9.68b 2009–2010 $16.7b ~$24b $10.87b 2010–2011 $22.93b $32b $11.65b 2011–2012 $24.30b $35.92b $12.85b Table: 3 Trend of Export, Import & Remittance Ad Server Market Structure:Given below is a list of top Ad server vendors in 2008 with figures in millions of viewerspublished in an Attributor survey. Since 2008 Google has controlled an estimated 69% of theonline advertising market. Vendor Ad viewers (millions) Google 18 Double Click (Google) 2 Yahoo! 3 MSN (Microsoft) 1 AOL 1 Ad Brite .5 Total 25.5 Table: 4 Ad Server Market Structure 24
  26. 26. Bangladesh is steadily forwarding toward digitalization which paves the way toward soundfinancial growth on e-marketing. Future trendsBangladesh’s retail market is estimated at $1 billion in 2011 and is expected to grow to $2.5billion by 2016 and $8 billion by 2020 – estimated growth rate is 18%.Technological Prospect of E-Marketing:1. Facebook’s Online Marketing Platform:The adoption of Face book’s advertising capabilities and ability to target specific segments bysmaller and mid-sized firms. While Face book has done little this year to improve the features inits advertising portal, the business community is beginning to adopt the platform en mass. If youhaven’t heard of facebakers.com, you might want to review the international levels of adoptionof Face book as a global advertising player.2. Privacy Showdown Becomes a Major News Topic in 2011:Digital marketers had a lot of press coverage on their tactics in the last half of 2011. We’ll seepublic debates, but I don’t think that there will be any major changes this year in thelaw. However, I do believe that we’ll see some innovations coming in the way of onlinereputation managers allowing both sellers and regular folks to create digital reputationmanagement badge that can be taken with them across all websites.3. Smart Phones for Everyone.No longer reserved for the traveling elite, smart phones have found their way into the hands ofsoccer moms, teenagers, tweeners, and even children. The 7-12 year olds at church were askingfor the “itouch” on their holiday gift list. Digital cameras are going away, and devices thatdouble as cam-recorders and “The Jetsons” video telephones are coming to a hand nearyou. Droid, Blackberry and Apple will fight and Blackberry will become a distant third becausethey haven’t catered to the all-powerful Apps content the way Droid and Apple have. See #4 formore on this topic. 25
  27. 27. 4. Software as a Service:Major software industries are being consolidated from the traditional client / servermodel. Companies such as Net Suite, Sales force, Omniture, Rackspace, and others are finallymaking it possible to enjoy the benefits of the internet without having to be a propeller-headed,geek. This is our hope and Lima Consulting Group continues to position itself to help companiesbenefit from these trends by integrating these software solutions for our clients. We believethere are three “i’s” in technology Innovators (the manufacturers of software), Implementers (theinstallers) and Integrators (consulting companies that implement two or more of the innovatorssolutions). We’ll continue to see increased competition from new entrants who presentthemselves as “cloud computing”, “Software as a Service” consulting companies.5. Cloud Computing:Cloud computing is an amorphous term, but I’m defining it here as data centers migrating awayfrom corporate or the home to the internet based data centers. Firms like Rackspace, Carbonate,Jungle Disk and my favorite, Box.net are really growing their user base. The ability to integratethese applications within other software packages, (for example you can integrate Box.net withinNet Suite), is a real alternative to the costly implementations for tools like Share point andDocumented. Keep an eye on the company that Computer Associates acquired, 3Tera, andsoftware companies that virtualized data centers and applications. This software allows datacenters to move their entire operation to the data center closest to the highest levels of trafficwithin seconds. As the world rotates each day, the data centers will also rotate to wherever thesun is shining. The data center that never sees night – interesting concept towards addressingdisaster recovery and increasing internet speeds while seeking best pricing on energy. That’senough to make the “green” contingency happy, the typical internet user and even the lawyersamong us.6. Everything™ vs. Robot This:IPad launches, iPhone 4.0 and iOS make it easy for entry level developers to develop over300,000 which were downloaded over 7 billion times. The median revenue is less than $700while the average cost to develop an app ranges from $15,000 to $50,000. The iPad took theworld by storm introducing a new category of computing, or at least bringing a niche category of 26
  28. 28. tablet computing to the forefront. Today, Barnes and Noble declared the Nook as their bestselling product ever; it’s been out – what – two months? And the Kindle brings up the 3rd placespot filling a need for a less tech-savvy crowd. But the real shift in 2011 will be back tosubscription models to pay for content such as the WSJ, NetFlix downloaded to your devices andof course e-books, which outsold regular books in 2010 and lastly the world’s largest mediacompany, yep – you guessed it – Apple. They sell more media than any other company. So thedevice and the content combination will engage in hand-to-hand combat with Google’s Androidmore flexible and open platform. Microsoft really should be the one giving Apple thecompetition here, they missed their chance. If Google gets this right, they will finally be out oftrouble in having 96% of their revenue coming from their online advertising product,Adwords. Look for a bloody battle between these two in 2011; it’s going to get personal.7. Here an App, there an App, Everywhere an App:Sales force started the first large-scale App store with their App Xchange. Then Apple with theirApp Store, then every company in the internet base Software as a Service model did. Net Suitehas the BOS network, Omniture has the Genesis partners, Droid has andoid.com and the list goeson. The widespread adoption of the “crap apps” out there will be a major reason that the victorwill emerge, and I predict that Apple will continue here for several years to lead. While Droidhas flash, and an open network, I heard once that “average products well marketed will beat goodproducts with average marketing.” And the iPhone is no average product, they have the firstmover advantage for having created the category and they don’t appear to be letting off theaccelerator in terms of innovating both their software and their hardware associated with theiPhone and iPad. I for one have been impressed with their advances the last three years and I ameager to see what they launch in the summer with their next generation iPhone and iPad.8. Net Neutrality:Net Neutrality in 2010 allowed one standard for wireless providers and another for landlinesmaking, in essence 2 playing fields. This was an unfortunate ruling that would allow certainwireless providers to block features that don’t need to be blocked for any other reason than itwould cannibalize the cell phone company’s revenue. Central to the issue is Skype’s video chatand voice chat using the 3G network on the major carriers. Verizon allows it, AT&T does not. 27
  29. 29. 9. Personalized Online Experiences based on what you’ve done on the Internet:The improvement in web analytics to allow for personalization of ads and content based on priorsite visits. Solutions such as Omniture’s Test and Target, Recommendations, Merchandising,Survey, and Search and Promote became more widely adopted and this notion of personalizingexperiences on the web is the future of online experiences. The increased integration of yourentire totality of information available to digital marketers will allow them to develop a morecomplete picture of an individual’s online behavior and interests than ever before. Armed withthe profile information collected from social networking sites such as Face book, linked in,Twitter, you tube, and others they can present more relevant content and online experiences. Thefirst to adopt these technologies will be media companies and ecommerce marketplaces.10. Hacking used as a tool by ordinary citizens as a method of protesting:WikiLeaks renegades using social computing to propagate their Denial of Service Attacks. Byenlisting anyone who wished to support the WikiLeaks organization, thousands of novicehackers downloaded the software and allowed their computers to attack the likes of Visa,MasterCard, Pay pal, and other internet giants. This behavior reminds of the flash gangs thatstarted popping up around Philadelphia, and more recently in Rio de Janeiro. They happen whena ring leader sets a time and place for hundreds of his hooligan friends to show up and robneighborhood stores and then disperse within minutes making it nearly impossible for police tofind the vandals. This trend will continue in 2011 by less and less sophisticatedthreats. Welcome to the new era, for good or for bad, of the masses having the ability to meet (aright that in many countries is not granted) and to conduct large-scale coordinated hackingattacks for any purpose.11. E-Marketing is the fastest means of marketing in now a day’s economy we can sell & buyonline while you are in your home.12. This can be used as publishing is the sale of advertising. 28
  30. 30. Constraints or Challenges of E-Marketing:E-marketing has several challenges. Among them the fallowing are critical. 1. Limited access and use of computer and telephone 2. High internet connection cost 3. Slow internet connection speed 4. Unpredictable power supplies 5. Credit card conundrum 6. Lack of modern financial system 7. Language barrier 8. Lack of flat rate phone plan 9. High illiteracy rate 10. Legislation and regulation are not contemporary 11. Personal computer and other computer device access rate is low 12. Low penetration of credit card 13. Security and privacy issuesComputer and Telephone Access:To make successful e marketing customer must have access to computer and an internet serviceprovider (ISP) to use the internet. In Bangladesh numbers of internet users are not enough tosupport successful e marketing. 29
  31. 31. Internet Connection Cost:Country like Bangladesh has higher internet related business cost- a concern because the internetis essential for every e business. Internet connection cost is high relative to the purchase powerof peopleSlow Internet Connection Speed and Website Design:Another key issue of e marketing in BD is the relationship between connection speed and website design. Although most internet connection around the world is through dial up connections, atelephone line limits the speed which data can be sent and received. The current maximum speedfor modern internet connection is 300kbps. Download speed is 300kbps.This has significantimplication for Website design, specially the extent to which graphics are used.The web is quintessentially a visual medium and users expects to see pictures, particularlycomplicated graphics and pictures that move, swirl and morph into usual shape. Yet each ofthese elements slows the download rate. In BD, with slow connections speed and a user may bepaying the minute, download speed is a major consideration. Two points are important here.First, every e-marketer needs to understand how connection speeds influence download rate.Second, just because graphic designers can do something cutting edge on websites doesnt meanthey should. In other words, just because a website can use flash graphics and incorporate a lot ofpictures doesnt mean that it should.Unpredictable Power Supplies:In BD another challenge for e-marketer is sporadic electricity. Supplies of electricity and accessto it don’t bring optimum position to bring a good prospect for e-marketing.Credit Card Conundrum:Convenience and ease of transaction are two of the internet’s greatest benefits. Credit card andsecure online payment systems make seamless and easy web based transactions in developedcountries. So, it is not always possible for buyer to pay electronically for not having a credit card. 30
  32. 32. Lack of Modern Financial System:The Bangladeshi cash based culture limits the volume of online transactions. The establishmentof payment counter, ATM booth and collection agencies is expected to lessen to severity of theproblem but will also add to overhead expense incurred by online service.Language Barrier:Most online service providers opt to provide bilingual interface for their sites to accommodatelocal and foreign customer. This increase cost and adds some technical challenges.High Illiteracy Rate:High illiteracy rate limits usage of high-tech services of all kinds. Progressive governmentalstrategies are centrally needed to reduce the relatively high illiteracy rate.Legislation and Regulation:New rules and laws are needed to address issues related to taxation, software piracy, credit cardfraud and online money laundering.Methodology of E-Marketing Survey:Methodology is usually a guideline system for solving a problem, with specific components suchas phases, tasks, methods, techniques and tools. It can be defined also as follows:1. "The analysis of the principles of methods, rules, and postulates employed by a discipline".2. "The systematic study of methods that are, can be, or have been applied within a discipline".3. "The study or description of methods". 31
  33. 33. We collect our data from both primary & secondary sources. A. Primary sources: 1. Personal Observation. 2. Online Survey. 3. Focus group Interview. 4. Working experience of different sector of E-Marketing. 5. Face to face conversation. 6. Some organization who practices E-Marketing. 7. Statistical information. B. Secondary sources: 1. Websites. 2. Some books related on E-Marketing. 3. Some articles on E-Marketing. 4. Some Journal about E-Marketing. 5. Different Research Report.Data Collection tools:  Telephone.  Internet.  Mail.  Direct Phone. 32
  34. 34. Survey Questionnaire, Result & Analysis: E-Marketing Survey question (Customer Point of View):Name:Working Status:Age:Religion:Please (√) each of the questions: 1. Do you know about the online purchasing system? a) Yes b) No 2. For which purpose do you use the online purchasing system? a) Shopping b) Purchasing book c) For ordering software d) Others 3. How many times do you use online purchasing or E-Marketing? a) Each day b) One week c) One month d) In a year e) Never 33
  35. 35. 4. Do you enjoy using online marketing? a) Yes b) No c) No comment 5. Why do you enjoy using E-Marketing? a) Convenient b) Less time c) Less cost d) others 6. Why do you not like to use E-Marketing? a) Security problem b) Not capable to use computer c) Complicated system d) Others E-Marketing Survey question (Organization Point of View):Name of your organization:Address:Type of Business:Please (√) each of the questions: 1. Do you use E-Marketing system in your organization? a) Yes 34
  36. 36. b) No2. Why are you using E-Marketing? a) Customer convenience b) Stylish system c) Easy to control d) Attract more customer e) Other issue3. Why you are not like to use E-Marketing? a) Complicated system b) Customer are not interested to use it c) Costly d) Others issue4. In your industry is E-Marketing popular? a) Yes b) No c) No comment5. Do you believe E-Marketing will be popular in Bangladesh after 5 years? a) Yes b) No c) No comment 35
  37. 37.  E-Marketing Survey Output and Explanation (Consumer Point of View) 1. Do you know about the online purchasing system? Do you know about online purchasing system? 11% Yes No 89% Explanation: In our survey we find 89% of our respondent knows about E-Marketing. 11% of our respondent doesn’t know about it. The figure is clearly significant. 2. For which purpose do you use the online purchasing system? For which purpose do you use the online purchasing system? 20% Shopping 40% Purchasing book 10% For ordering software others 30% 36
  38. 38. Explanation: In our survey we found that 40% of our respondent using E-marketing for shopping purpose. 20% are using for purchasing book. 10% are using for ordering software.3. How many times do you use online purchasing or E-Marketing? How many times do you use online purchasing or E-Marketing? 4% 14% Each day 13% One week One month 22% In a year 45% Never Explanation: In the survey we have found that 4% of our respondent each day using E-marketing. 45% of the respondents are never using E-Marketing.4. Do you enjoy using E-Marketing? Do you enjoy using E-Marketing? 12% Yes No 39% 59% No Comment 37
  39. 39. Explanation: In our survey 59% of the respondent would like to use E-Marketing. 39% would not prefer E marketing. 12% of the respondent doesn’t respond.5. Why do you enjoy using E-Marketing? Why do you enjoy using E- Marketing? 11% convenint 15% 49% less tme less cost others 25% Explanation: 49% of the respondent prefer convenient. Time is important to the 25% of the respondent. 15% prefer cost and 11% feels it other reasons.6. Why do you not like to use E-marketing? Why do you not like to use E- Marketing? 5% 10% Security problem Not capable to use computer 55% Complicated system 30% others : 38
  40. 40. Explanation: Security problem is the main reason main problem the respondent belief. 55% believe that security problem is crucial. 30% are not habituated to use E marketing. E-Marketing Survey Output and Explanation (Organization Point of View) 1. Do you use E-Marketing system in your organization? Do you use E-Marketing system in your organization? 35% Yes 65% No Explanation: In our survey 65% of the organization is using E marketing. Others are not habituated with this system. 2. Why are you using E-Marketing? Why are you using E-Marketing? 10% Customer convenience 30% Stylish system 30% Easy to control Attract more customer 20% others issue 10% 39
  41. 41. Explanation: Most of the respondents are using E-Marketing to attract the customer and customer convenient.3. Why do you not like to use E-Marketing? Why do you not like to use E- Marketing? Complicated system 5% 30% Customer are not interested to use it 45% Costly 20% Others issue Explanation: Most of the respondent believes that E marketing is costly to maintain and develop. 30% believe that the system is complicated.4. In your industry is E-marketing popular? In your industry is E-marketing popular? 5% Yes 50% No 50% No comment 40
  42. 42. Explanation: Most of the respondent believes that E-marketing is popular in their industry. 5. Do you believe E-Marketing will be popular in Bangladesh after 5 years? Do you believe E-Marketing will be popular in Bangladesh after 5 years? 5% 25% Yes No No comment 70% Explanation: Most of the respondents believe that E-marketing will get its full speed within 5 years from now.Recommendation:Organization should take the responsibility to makes popular E Marketing in Bangladesh. Itshelps them to reduce the cost and convenient and value added service to its customer. The otherrecommendations are:1. Train the people to use the E Marketing system2. To provide more information about the benefit of E Marketing system 41
  43. 43. 3. Organization need to have more preparation to use the system thus there are no problem when the user use the E Marketing system.4. The current govt. of republic of Bangladesh’s is to make a “Digital Bangladesh”, so they have also the responsibility to develop more E marketing related firm5. At last public should aware to use E marketing as the system is developing only for customer convenience.Conclusion:Despite being a poor country, selected segments of the Bangladeshi business community hasembraced technology with reasonable success. The Facsimile in the 1980’s and mobiletelephones in the 1990’s popularized modern technology in the mass market. Personal computersand the Internet are also emerging as day-to-day business tools. These positive indicators arefavoring the prospects of e-commerce in Bangladesh. Synergy between telecommunications andinformation technology has the proven capability of monitoring and administering the real-timetransactions. Therefore, liberalizing the telecom and IT sectors as well as reforming the country’sfinancial and commercial procedures is the preconditions of successfully implementingecommerce in Bangladesh. In the case of marketing, simply having a website in the vast sea ofthe Internet is not sufficient. Uniformity is an important factor in the commencing of contractsthrough the Internet. Therefore, to take advantage of the newer opportunities that ITdevelopment presents, the Bangladeshi companies have to attain internationally acceptedcertification on quality control, competitive price and timely delivery. Creating awareness amongthe Bangladeshi exporters regarding e-commerce is essential. They have to be knowledgeable toappreciate and to utilize the benefits of IT. Business associations can play a major part at thisjuncture by highlighting the benefits of IT to its members, and encouraging them to usecustomized software for their day-to-day operations. The overview of the legal and regulatorystatutes suggests that Bangladesh has made significant progress in facing the challenge ofglobalization and concurrently, embracing e-commerce in due course. Technological andinfrastructural constraints to e-commerce can be overcome if existing laws and regulations are 42
  44. 44. implemented. A better understanding of the potential benefits of e-commerce by the policymakers and bureaucrats is essential for speedy implementation and further reforms.References: Bangladesh Bank, Foreign Exchange Guidelines Bangladesh Bureau of Statistics Bangladesh economic forum IMF information & technology review on BD www.wikipedia.org Ministry of Commerce, Government of Bangladesh The World Bank Group 43