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 analyze online purchase and payment behaviors in planning market entry opportunities.

1. E-Marketing/8E
Chapter 4
Global E-Markets 3.0
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-Marketing Issues
• 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 Languages Used On the internet today
©2018 5
September 2018
https://speakt.com/top-10-languages-used-internet/

6. Worldwide internet Usage
and Population 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
• Emerging economies 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 in 2030
©2018 9
https://www.hsbc.com/news-and-insight/2018/the-world-in-2030

10. The world in ICT
©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 of e-Marketing in 2019
©2018 12
https://www.industrialmarketingtoday.com/unique-challenges-of-manufacturing-content-marketing-in-2019/

13. Country & Market Opportunity 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
• When people 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 Map of 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 Trust Issues
• 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 Will Never Stop
©2018 18

19. Transition to a knowledge-based economy
©2018 19
Source:

20. Mobile Broadband Services
©2018 20
• 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 subscriptions in Saudi Arabia (2014-2018)
©2018 21

22. Total mobile broadband subscriptions in Saudi Arabia (2014-2018)
©2018 22

23. Wireless internet Access:
Mobile Phones
• 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 must understand 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 were over 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 Users and 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 the digital 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
• Explosive growth 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
• 2.5 billion 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 in KSA
©2018 33