©2006 Prentice Hall ELC 310 DAY 5. ©2006 Prentice Hall Agenda Questions? Assignment 1 due next...
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Transcript of ©2006 Prentice Hall ELC 310 DAY 5. ©2006 Prentice Hall Agenda Questions? Assignment 1 due next...
©2006 Prentice Hall
Agenda• Questions?• Assignment 1 due next class• Assignment 2 will be assigned by next class
• Due Sept 26• Exam 1 on Sept 26
• Chaps 1-5 of Strauss Text • 10 Short Essays (2 per chapter)• You will have 70 minutes to complete exam• Open book, open notes
• You should be working on your eMarketing Plans• Due Oct 31, Presentations on Oct 31• Suggestions
• Do an eMarketing plan for the Admissions office for your discipline
• Discussion on Global Markets
©2006 Prentice Hall 4-1
E-Marketing 4/EJudy Strauss, Adel I. El-Ansary, and Raymond Frost
Chapter 4: Global Markets
©2006 Prentice Hall 4-2
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.
©2006 Prentice Hall 4-3
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.
©2006 Prentice Hall 4-4
The FIFA Story• Federation Intérnationalé de Football
Association (FIFA) partnered with Yahoo to create the most popular sports site in history.
• http://fifaworldcup.yahoo.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?
©2006 Prentice Hall 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%.
• http://www.internetworldstats.com/stats.htm
• http://www.isoc.org/internet/stats/
©2006 Prentice Hall 4-6
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.
©2006 Prentice Hall 4-7
Top Ten Countries
Rank CountryNumber of Internet Users
(millions) Country% of Population Internet
Users
1 United States 185.9 South Korea 74.9
2 China 95.8 Iceland 70.5
3 Japan 77.9 Norway 69.1
4 Germany 41.8 Denmark 69.1
5 India 39.2 Sweden 69.0
6 United Kingdom 34.1 Australia 66.1
7 South Korea 32.0 United States 64.0
8 Italy 28.6 The Netherlands 64.0
9 France 26.6 Switzerland 64.0
10 Brazil 23.0 Canada 63.5
Total 584.9 67.42
©2006 Prentice Hall 4-8
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.
©2006 Prentice Hall 4-9
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
©2006 Prentice Hall 4-10
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• http://www.bangaloreit.com/html/itscbng/ecitycomp.html
• Greatest obstacles to e-commerce in emerging economies include:• Slow connection speeds• Costs of domestic phone calls (per min) • ISP costs• Lack of local content and content in one’s own language
©2006 Prentice Hall
Country and Market Opportunity Analysis
Emerging Economies
DevelopedEconomies
Emerging EconomiesDifferences
Similarities D
iffer
ence
s
©2006 Prentice Hall 4-11
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.
©2006 Prentice Hall 4-12
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.
©2006 Prentice Hall 4-13
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.
©2006 Prentice Hall 4-14
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.
©2006 Prentice Hall 4-15
Connection Costs in Arab Countries
0 10 20 30 40 50 60 70 80
Morocco
Bahrain
Jordan
Qatar
Lebonan
Tunisia
Saudi Arabia
Average
Oman
Kuwait
Egypt
UAE
U.S. Dollars
ISP Charges
Telephone Charges
©2006 Prentice Hall 4-16
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.
©2006 Prentice Hall 4-17
Broadband Penetration for Selected Countries
Country Broadband Subscribers as a percentage of total population
Italy 0.77
Hungary 0.31
China 0.21
Brazil 0.19
Bulgaria 0.12
Colombia 0.05
Turkey 0.03
Russia 0.02
Nigeria 0.01
©2006 Prentice Hall 4-18
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.
©2006 Prentice Hall 4-19
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.
• http://www.digitaldivide.net/
• http://laptop.org/