©2006 Prentice Hall ELC 310 DAY 5. ©2006 Prentice Hall Agenda Questions? Assignment 1 due next class Assignment 2 will be assigned by next class Due Sept.

©2006 Prentice Hall

ELC 310

DAY 5

©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/