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E-MARKETING 7/E
JUDY STRAUSS AND RAYMOND FROST

Part II: E-Marketing Environment

Chapter 4: A World of E-Marketing Opportunities

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 Chapter 4 Objectives
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 After reading Chapter 4, you will be able to:

 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.

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 Chapter 4 Objectives, cont.
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 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.
 Explain why China is becoming a major market for e-
marketing innovation and competition.

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 Idol Goes Global
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 American Idol is broadcast in over 100

countries.
 Its popularity has spawned 39 national

versions in countries such as Ethiopia, the

Philippines, and Russia.
 The sharing of popular culture has been

enhanced by the convergence of TV, internet,

mobile phones, and messaging services.
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 Idol Goes Global, cont.
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 Check out international versions that are

streamed over the internet:
 Music Idol in Bulgaria: http://musicidol.btv.bg/news/6
 Ethiopian Idol:
http://www2.jumptv.com/seo/Ethiopian_Idols/Ethiopian_Idols.ht
m
 Indian Idol: http://sify.com/indianidol/

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 Overview of Global E-Marketing
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Issues
 The globe is literally a world of opportunities.
 Exhibit 4.1 shows that worldwide internet usage
increased more than 58% from 2004 to 2007.
 Asia has the most internet users.
 Africa saw the greatest growth in internet use.
 North America has the highest penetration as a
percent of the population.

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 Worldwide Internet Usage
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Ex 4.1
 Internet Use Varies by Country
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 The world’s largest online markets are the China

(900 million users) and USA(500 million users).
 The top 10 countries account for 70% of all global
users.
 In 2019, 98 percent of the population of Denmark
accessed the internet. Iceland, Kuwait, Qatar, the
UAE, and Bahrain were jointly ranked
first with an internet penetration of 99 percent
each. Previously it was Norway and other EU
Countries.
Top Ten Internet Usage Countries
Ex.4.2
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Education, Inc.
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Prentice Hall
 Developed Economies
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 Developed countries are highly industrialized, use

technology to increase efficiency, and have a high
GDP per capita.
 Western Europe
 North America
 Japan, China, Korea, Singapore
 Australia & New Zealand
 Developed countries are ideal for the e-marketing
activities discussed in the text.
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 Emerging Economies
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 Have low levels of GDP per capita and are

experiencing rapid economic growth.
 Emerging economies can be found on every
continent.
 Mexico, Central & South America
 Baltic States & Eastern Europe
 Russia, Belarus & Ukraine
 Africa
 Central & Southeast Asia
 India, Turkey, Malaysia, Indonesia
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 Importance of Information
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Technology
 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.
 Internet marketing differences in emerging
economies include:
 Fewer computer users
 Limited credit card use
 Lack of secure online payment methods
 Unexpected power failures

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 Market Approaches Ex 4.4
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 E-Commerce Payment and Trust
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Issues
 E-commerce in emerging markets is often hampered by
limited use of credit cards and lack of trust in safely
conducting online transactions.
 Nepal, for example, is a cash-based economy and credit cards
are scarce.
 For local Nepalis, only Visa, MasterCard, and Himalayan Bank
cards are accepted.
 In Bolivia, only 2.3 percent of the population has a credit card.
 Credit card use is virtually non-existent in Ethiopia.

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 E-Commerce Payment and Trust Issues,
cont.
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 In addition to credit card usage, e-marketers

working in emerging economies should understand
attitudes toward online purchasing.
 A 2017 study in Lithuania found that 51% of internet
users had not made an online purchase because they
thought it was too risky.
 Similar is the case with Pakistan
 Technological Readiness Influences Marketing
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 E-marketers must deal with daunting issues of basic

technology:
 Limited access to and use of computers and telephones
 High internet connection costs
 Slow internet connections speeds
 Unpredictable power supplies

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 Computers & Telephones
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 Computer access is unevenly distributed throughout the

world.
 Exhibit 4.6 shows computer ownership data for selected
countries.
 Ownership ranges from 84% in Kuwait to 2% in Bangladesh
and Uganda.
 Telephones (and connectivity) can be scarce and
expensive.
 Many consumers in countries with emerging economies access
the internet from free-standing shops rather than homes.

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 Internet Connection Costs
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 Countries with emerging economies often have

higher internet-related business costs.
 Dial-up connection costs can vary considerably.
 Broadband connections are developing quickly.
 In 2002, 88 countries had broadband vs. 166 countries
in 2006.
 Broadband connections are still expensive in most
countries.

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 Wireless Internet Access
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 At the end of 2019, the total number of mobile

subscriptions is estimated to have exceeded eight billion for
the first time, reaching 8.3 billion subscriptions.
 Countries with emerging economies have leapfrogged
industrial countries in terms of usage.
 Challenges of wireless e-marketing:
 Modification of Web site content for small screens
 Text entry using tiny keypads
 Content development
 Pricing and secure payments

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 The Digital Divide
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 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.

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 China: A View of the Future
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 China is expected to be the largest economy in the

world by 2025.
 China represents both the promise and challenge of
e-marketing in emerging market economies.
 70% of all Chinese internet users are under the age of
30.
 China’s vibrant, growing online market requires
adaption to success.

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 Popular Web Sites in China
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Ex.4.16

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23

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Copyright © 2009 Pearson Education, Inc.

Publishing as Prentice Hall

©2009 Pearson Education, Inc.

Publishing as Prentice Hall