1. Online Mktg – Global Market
© Ramakrishna Kongalla,
Assistant Professor
Indian Institute of Tourism & Travel Management
(An Organization of Ministry of Tourism, Govt. of India)
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2. Global Market
• The Internet truly flattens the world.
• Opportunity to marketers with an international component to
their businesses or a desire to do business globally.
• Global marketing becomes an inexpensive reality.
• The primary place for business to be done on the Internet is, the
World Wide Web.
• The e-commerce associated with it
• Multiple-language versions of their Web sites.
• Internet translation tools are available that make this easier to
do.
• Web sites to accept and fulfill orders online from customers
worldwide.
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3. • Expanding markets and territories. Marketing no longer
has to artificially stop at a country's borders.
• Developing global marketing partnerships. Internet
marketing makes joint ventures attractive and easy to
implement.
• Providing worldwide customer service. In an era that
emphasizes customer service, a marketer can now use
the Internet as the foundation for 24-hours-a-day, 365-
days-a-year customer support
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4. I. Global E-Marketing
A. Capitalizing on changes
– 1. Users from other countries speaking languages
other than English increasingly dominate the
Internet
– 2. The Web’s content and language became more
diversified
– 3. A country’s e-readiness profile influenced
marketing strategy and tactics
– 4. E-marketers must differentiate between
industrialized nations and emerging economies
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5. B. Global Markets
– 1. Worldwide Internet usage more than doubled
between 2000-2004
– 2. Middle East saw Internet use grow over 200% in four
years
– 3. Asia has the most Internet users at over 243 million
– 4. American has the highest Internet penetration rate at
almost 70%
C. Emerging Economies
– 1. High levels of economic development (developed)
– 2. Emerging economies
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6. D. Importance of Information Technology
– 1. In economic development
• a. Information technology opens up new, exciting, global markets
• b. The Internet can jump-start many national economies
• c. Allows for instant access to a global marketplace
– 2. Unique challenges
• a. Slow connection speeds
• b. High costs of domestic phone calls
• c. ISP costs
• d. Privacy concerns
• e. Censorship
• f. Navigation difficulties
• g. Taxes
• h. Lack of content in one’s own language
• i. Lack of local content
• j. Limited credit card use
• k. Lack of secure online payment methods
• l. Unexpected power failures
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7. II. Country and Market Opportunity Analysis
– An e-marketing plan guides the marketer through the
process of identifying and analyzing potential markets.
Market differences and market similarities must be
measured and compared to determine strengths and
weaknesses.
A. Market similarity
– 1. Marketers will choose foreign markets that have similar
characteristics
• a. Literacy rates
• b. High Internet usage rates
• c. Clearly defined market segments willing to shop
• d. Credit card usage rate
– 2. Parallel target market decision
• a. Citizens living abroad
• b. Using alternative methods of payment.
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8. B. Credit Card Conundrum
– 1. Convenience and ease of transactions on the
Internet
• a. Credit cards and secure online payments are seamless and
easy
• b. Some countries are cash based
– 2. Considerations and alternatives
• a. Limited credit card use can severely restrict a target
market’s purchasing ability
• b. Marketer’s need to know how many credit cards are in
circulation
• c. Marketer’s need to understand consumer attitudes toward
credit card purchases
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9. C. E-Commerce Payment
– 1. E-marketers faced the challenges of limited credit
card use and consumer skepticism.
– 2. Customers did not think shopping online was ―fun
– 3. Customers did not ―trust online brands
– 4. Firms reassured customers concerning online
security
– 5. Alternative payments were accepted
• a. Bank transfers
• b. Cash on delivery
• c. Postal orders
• d. e - Bank debit cards specifically created for online buying
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10. III. Technological Readiness Influences Marketing
Solving credit card payment issues was only one of several marketing challenges in
emerging economies. The following are several other issues that must be addressed.
• A. Computes and Telephones
– 1. Computers
• a. Historically and predominately, Internet connection is with a
desktop PC and dial up ISP
• b. Emerging economy countries do not have many privately
owned computers
• c. Creates opportunities for local, small business entrepreneurs
– 2. Telephone – Internet connection
• a. Telephone services can be very expensive in emerging
economies
• b. Many emerging economy countries have more
televisions, radios, motorcycles and telephones
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11. B. Internet Connection Costs
– 1. If an emerging economy customer has a telephone, chances are the
Internet connections costs are extremely high.
– 2. Many customers in emerging economies have cell phones, but not land
lines
C. Connection Speeds and Web Design: Broadband’s Influence
– 1. E-marketer’s must analyze the relationship between Web site design
and customer’s connection speeds.
• a. Many feel the dial-up era is quickly coming to an end
• b. Online companies with a diverse customer base must keep their Web sites
simple
– 2. E-marketer’s must understand how connection speeds influence
download rates
– 3. E-marketer’s and graphic designers must differentiate between what
―can‖ be done and what ―should‖ be done.
• D. Electricity Problems – sporadic electricity poses a specific challenge
for e-marketers. Internet based business cannot complete transaction
if customer’s have no electricity.
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12. IV. Wireless Internet Access
A. Countries with emerging economies are often market
leaders in cellular technology
– 1. The rapid growth of cell phone
– 2. Explain why, by reviewing the story about Cambodia’s civil war
B. Cell phone technology is relatively inexpensive and effective
C. Challenges e-marketers face
– 1. How to modify existing Web site content for smaller screens
– 2. How to resolve potentially cumbersome text entry with tiny
keypads
– 3. How to develop new content that consumers will want
– 4. How to price services
– 5. How to develop easy, secure payment methods
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13. V. The Digital Divide
In addition to the technical challenges they must overcome, e-marketers
have to consider the social environment in which their e-business operate.
A. Least Developed Countries (LDC)
– 1. Those countries with the world’s poorest economies
– 2. Economically underdeveloped
B. Dual Economy – haves and have-nots
– 1. All emerging economies have upper and middle income
citizens
– 2. Two completely different economies exist side by side in
an LDC
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14. C. Digital divide
– 1. This phenomenon is called the digital divide
– 2. ―That between countries and between different
groups of people within countries, there is a wide
division between those who have real access to
information and communications technology and are
using it effectively, and those who don’t‖ –
www.bridges.org
– 3. 15% of the world’s population make us 88% of all
Internet users
– 4. The World Wide Web is not really worldwide
D. India and its Scenario
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15. Thank You…!!!
©Ramakrishna Kongalla
e-mail: artist.ramakrishna@gmail.com
R'tist @ Tourism