E MARKETINGAS Dėst. Justinas Kisieliauskas

eMarket

CASE I:Idol Goes Global American Idol is broadcast in over 100 countries, often 48 hours after the show has been aired in the U.S. Its popularity has spawned 39 national versions in countries such as Ethiopia, the Philippines, Russia, and Kazakhstan. Kazakhstan Indian viewers vote for singers and apply to be a contestant on Indian Idol through SMS.(30 mln) In 2014 global votes took 5 B Freemantle Media, generate $1B/year. Success? The sharing of popular culture has been enhanced by the convergence of TV, Internet, mobile phones, and short message services.

CASE II

MOST frequently used language in web

More statistics

Global E-Marketing Issues Users from other countries, speaking languages other than English, will dominate the Internet. In 2015 Chinese-speaking users should overgrow English-speaking web users. The online marketplace is changing and will require that global e-marketers understand country e-readiness.

Global tendenciestendencies

Pasaulinės skaitmenizacijos tendencijos tendencijos

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.

Emerging Economies Emerging economies are characterized by a rapidly developing middle class, which creates demand for products and services. Four countries represent the power and opportunity in emerging markets: Brazil, Russia, India and China. Countries with emerging economies can be found on every continent.

Importance of Information 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. E-marketers in emerging economies confront marketing issues and unique challenges related to the conditions of operating within a still developing nation.

eMarket analysis Marketers in emerging economies must find market similarities in order to be successful in selling products. – CAGE (culture, administration, geography, economic) analysis – F.E. where would you firstly go from Your home market?

E-Commerce Payment and Trust 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 still predominately a cash-based economy and credit cards are scarce and used only by tourists and youth – In Bolivia, only 2.3 percent of the population has a credit card. – Credit card use is virtually non-existent in Ethiopia (90 mln hab.). – Egypt, Senegal ir Pakistan, less then 2 % has credit card. – Lithuania 16 % (Estonia 31; EU 40%)

E-Commerce Payment and Trust Issues, cont. In order to buy, people must trust seller. Trust is a key element to emarketing success in new economies. Why and who people don’t trust? A 2007 study in Lithuania found that 51% of Internet users had not made an online purchase because they thought it was too risky. Same think 89% Chile, 64% Columbia, 54% Mexico habitants; To overcome trust issues in the Czech Republic, eBanka, an Internet bank, was established in 1998 to handle secure online purchases.Brasil and CPF numbers.

Consumer concern about online use of credit cards

Technological Readiness Influences Marketing 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

Computers & Telephones Not everyone has a PC… Global computer ownership and access is unevenly distributed. – Ownership ranges from 84% in Kuwait to 2% in Bangladesh. Telephones (and connectivity) can be scarce and expensive. – Many consumers in countries with emerging economies access the Internet from telecenters, small shops that offer Internet connections.

Computer isation in EU

Internet ACCESS Entrance to a Typical Cabinas in Lima, Peru

Internet INFRASTRUCTURE Countries with emerging economies often have higher Internet-related costs. Dial-up costs can vary considerably. Broadband connections are developing quickly and growth is predicted to come from emerging markets. South Korea has one of the highest broadband penetration rates and one of the world’s fastest, cheapest networks. Emerging economies’ sporadic electricity can also be a challenge for e-marketers.

WIRELESS INTERNET ACCESS Two-thirds of the world are now connected via mobile phones. Challenges of wireless e-marketing: – Modification of website content for small screens – Text entry using tiny keypads – Content development – Pricing and secure payments – We must understand Differences in consumer behavior with the mobile Internet

SMART ONES How smart things change things? EX1: 36% Egyptians, who use smartphones, change their mind to buy product in brick and mortar shop… WHY? EX2: 37% Argentinians decide to buy thing after seeing it for the first time. WHY?

However… Internet is: Becoming faster Cheaper Spreading everywhere…

BUT… 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. digital divide appears because: -eTrust; -ePayment; -eInfrastructure (from internet to smartphones). It appears not only in countries, but in regions, towns etc…

eConsumers

CASE II: The Customer’s Story A typical one-hour adventure in the life of a 25-year-old professional, Justin: Tunes his iPod to the latest Diggnation podcast while his TV is tuned to a soccer game and his cell phone and PC are within reach. Picks up his computer to find a blog mentioned during the podcast, sees a video on the blog and texts a friend about the video. Justin searches for the video title on Google and finds a job posting on Vimeo, an online video-posting site. He posts a link to the video and Vimeo site to his Twitter stream. Justin is the new consumer: a multitasker attending to different media simultaneously. PROBLEM? How can a marketer capture dollars from these behaviors?

85% of U.S. consumers use the Internet. Less connected groups tend to be: – Older – Less educated – In ethnic minority groups – Childless – Rural – Lower income Consumers in the 21 st Century

eConsumers in the 21 st Century, cont On average 3 b. habitants use it! Top 10 countries counts for 65 proc. of all users. Internet usage in developed nations has reached a critical mass, leading marketers to ask more questions about consumer behavior on the Internet.

eCostumer behaviourbehaviour Costumer behaviour adoption from reality to digital (ex. AIDA > AISAS; word of mouse etc.) Bacis pricniples of eUsers behaviour – Retumas (limited time/deal of the day) – Populiarumas (LIKE; 5 Stars) – Panašumas (mėgstu, ką draugas mėgsta) – Autoritetas (LADY GAGA) – Nuoseklumas (kokį naujienų puslapį skaitot?) – Abipusiškumas (30 dienų nemokama versija)

Social shopping psychology (Marsden)

Exchange is a basic marketing concept. – It refers to the act of obtaining a desired object by offering something in return. Exchange occurs within the following contexts: – Technological – Social/cultural – Legal The Internet Exchange Process

The Online Exchange Process

Technological Context 63% of online Americans connect to the Internet at home with broadband. Broadband users enjoy more multimedia games, music, and entertainment than do those accessing from a mobile device or 56K modem. The typical U.S. home has 26 different electronic devices for media and communication.

Daily Media Use

What do eConsumers use?

Social and Cultural Contexts REPUTATIONENGAGEMENT RELEVANCE

Engaging eConsumers

Reputation

Relevance

Other socio-cultural tendencies Too much of info Multitasking Work and home I want what I want when I want Internet oxygen Privacy

Legal context Despite piracy laws, illegally used software abounds. In spite of the Can-Spam law, the number of unsolicited s has increased. However, when the recording industry sued illegal music file downloaders, consumer behavior changed. – In 2002, 37% of online consumers shared music files. – Only 23% shared files in 2004.

Legal context…

Individual characteristics affect Internet use. – Demographics such as age, income, education, ethnicity, and gender. – Attitudes toward technology. – Online skill and experience. – Goal orientation. Individual Characteristics

Consumer Resources Consumers perceive value as benefits minus costs. These costs constitute a consumer’s resources for exchange: – Monetary cost – Time cost – Energy and psychic costs

eExchange Outcomes There are 6 basic things that people do online: – Connect – Create – Enjoy – Learn – Trade – Give Each is ripe with marketing opportunity.

Connecting Online in the U.S.

Creating & Uploading Content in the U.S. It includes wikipedia; facebook; youtube; pinterest; instagram etc.

Entertainment Online in the U.S.

Top 10 Search Terms for 2009

Top 10 Search Terms for 2014

Learning and Getting Information

Trading Online in the U.S.

eGiving Trendwatcher.com mentions “generation of generosity ” as one of newest internet tendencies. 25% USA citezens donate by internet. Kickstarter.com is one nice place to donate Kickstarter.com donate

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SEMINAR