Download VTU MBA 4th Sem 16MBAMM403-E-Marketing E marketing Management Module 3 -Important Notes

Module 3

The E-Marketing Environment

Overview of Global E-Marketing

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• The globe is literally a world of opportunity.
• Exhibit 4.1 shows that worldwide internet increased more than 58% from 2004.
• Asia has the most internet users.
• Africa saw the greatest growth in internet.
• North America has the highest penetration percent of the population.

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Internet Users in the World by Geographic Regions

Internet Use Varies by Country

• The world's largest online markets are million users) and China (162 million users).
• The top 10 countries account for 70% users.
• Some smaller countries, such as Norway, Netherlands and Iceland, have the highest penetration, over 85% of their population.

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Top Ten Internet Usage Countries

Developed Economies

• Developed countries are highly indu technology to increase efficiency, and GDP per capita.
• Western Europe
• North America

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• Japan
• Australia & New Zealand
• Developed countries are ideal for the activities discussed in the text.

Emerging Economies

• Have low levels of GDP per capita experiencing rapid economic growth.

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• Emerging economies can be found continent.
• Mexico, Central & South America
• Baltic States & Eastern Europe
• Russia, Belarus & Ukraine
• Africa

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• Central & Southeast Asia
• China

Importance of Information

• The internet accelerates the process growth through diffusion of new technology.
• Bangalore, India is the center of India growth in software and IT.

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• Internet marketing differences in en economies include:
• Fewer computer users
• Limited credit card use
• Lack of secure online payment methods
• Unexpected power failures

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Country and market opportunity

Global e-marketers must carefully balance two different analytical approaches.

1. Market differences
   1. Different languages
   2. Cultural behaviours
   3. Buying behaviours

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2. Market similarity

Country and market opportunity

1. Market similarity.
   1. Similar characteristics

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U.S-based company would first target countries the UK and Australia before targeting France, And India.

All these countries have common language, h internet users, credit card users,

It reduces risk and helps explain why it target the first place.

Market Approaches Ex 4

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E-Commerce Payment and Issues

• E-commerce in emerging markets is often limited use of credit cards and lack of conducting online transactions.
• Nepal, for example, is a cash-based economy are scarce.
• For local Nepalis, only Visa, MasterCard, are accepted.
• In Bolivia, only 2.3 percent of the population.

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• Credit card use is virtually non-existent in

E-Commerce Payment and Trust

• In addition to credit card usage, e-ma working in emerging economies should attitudes toward online purchasing.
• A 2007 study in Lithuania found that 5 users had not made an online purchase thought it was too risky.
• To overcome trust issues, eBanka, an int established in the Czech Republic in 19 secure online purchases.

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Technological Readiness Influence

• E-marketers must deal with daunting i technology:
• Limited access to and use of computers
• High internet connection costs
• Slow internet connections speeds

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• Unpredictable power supplies

Computers & Telephones

• Computer access is unevenly distribute the world.
• Exhibit 4.6 shows computer ownership selected countries.
• Ownership ranges from 84% in Kuwait to and Uganda.

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• Telephones (and connectivity) can be s expensive.
• Many consumers in countries with emergin the internet from free-standing shops rath

Internet Connection Costs

• Countries with emerging economies o higher internet-related business costs.
• Dial-up connection costs can vary con

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• Broadband connections are developin
• In 2002, 88 countries had broadband in 2006.
• Broadband connections are still expens countries.

Wireless Internet Access

• At the end of 2007, there were 3.2 phone subscriptions worldwide.

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• Countries with emerging economies leapfrogged industrial countries in 1
• Challenges of wireless e-marketing
• Modification of Web site content for
• Text entry using tiny keypads
• Content development

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• Pricing and secure payments

What is the Digital Divide

The term digital divide refers to th between people who have access technology - such as computers, Internet, mobile phon those who have very limited acce access at all.

The Digital Divide

• E-marketers must consider the socia which e-business operates.

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• Disparities with regard to technolog create a digital divide between cou populations.
• The digital divide raises challenging global policy, international business entrepreneurship.