E-Marketing 4/E Judy Strauss, Adel I. El-Ansary, and Raymond Frost

1. E-Marketing 4/EJudy Strauss, Adel I. El-Ansary, and Raymond Frost Chapter 4: Global Markets 4-1

2. 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. 4-2

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, 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. 4-3

4. The FIFA Story • Federation Intérnationalé 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? 4-4

5. Worldwide Internet Usage • Ex. 4.1 (page 71) 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%. 4-5

6. 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. 4-6

7. Top Ten Countries 4-7

8. 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. 4-8

9. 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 4-9

10. 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. • 330-acre Electronic City • 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 4-10

11. Country and Market Opportunity Analysis Emerging Economies Emerging Economies Differences Similarities Differences Developed Economies

12. 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. 4-11

13. Technological Readiness Influences Marketing • Limited access to and use of computers and telephones. • High Internet connection costs • per minute charges • Slow Internet connections speeds. • Unpredictable power supplies. 4-12

14. Computers & Telephones • Computer access is unevenly distributed throughout the world. • Exhibit 4.8 (page 82) 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. 4-13

15. 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. • Sometimes faster than land-lines • Cambodia • Dial-up connection charges vary considerably in emerging economies. 4-14

16. Connection Costs in Arab Countries 4-15

17. 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. 4-16

18. Broadband Penetration for Selected Countries 4-17

19. 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. 4-18

20. 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. 4-19