1. Internet Usage in Pakistan & E-Marketing Potential Instructor: Hanniya Abid Lecture 2 E-Marketing

2. Pakistan has highest growth rate of internet users in region Pakistan’s growth rate of internet users is second highest in SAARC countries in accordance with its population The State Bank of Pakistan (SBP) publications quoted World Bank statistics by July 2012, Pakistan internet users showed double digit growth from past five years. The growth rate stood at 10 percent in 2007, which is now more than 16 percent.

3. The internet users growth rate in India is around 7percent; 12 percent in Sri Lanka, 13 percent in Bhutan with respect to their populations, World Bank statistics said.

4. YEARUsersPopulation% Pen.GDP p.c.* Usage Source 2000133,900163,985,3730.1 %N/AITU 200612,000,000167,806,8317.2 %US$ 821ITU 200918,500,000174,578,55810.6 %US$ 1,017ITU 201018,500,000177,276,59410.4 %US$ 1,068ITU Internet Usage and Population Statistics: Note: Per Capita GDP in US dollars, source: International Monetary Fund. “The Internet industry dynamics have also changed quite dramatically in recent times with 2012 being a possible turning point for rapid growth. “

5. Internet usage is on the rise Internet Service Providers Association of Pakistan (ISPAK) has reported increase in internet users too. “There are 50 internet services providers in which 10 are broadband companies exploring untapped market in big cities, making it available for people to use internet with only Rs 100.”

6. Pakistan Market Trends 2013: Online, Mobile, Social – Things Are About To Take Off New report by mobile survey company Ansr.io. According to the report, internet penetration in the country has reached 16%, while broadband subscribers have more than doubled in the last two years.

7. Terming Pakistan ‘the fifth largest mobile phone market in Asia,’ the report cited 10% smartphone penetration, although 80% of phones were found to be costing less than $100. The report also cited an encouraging 11% of internet mobile visits out of 182 million total page views in April, 2013.

22. Usage of Internet on Mobile phones Mobile Internet Usage in Pakistan to Overtake Desktop Internet in 2014 – (www.propakistani.com) “The excessive branding and marketing campaigns of mobile phone companies are generating positive results on their business in fact creating awareness among the customers before the launch of high data service—3G technology.”

23. Pakistani businesses can’t ignore Facebook anymore! http://www.pakistantoday.com.pk/ Feb, 2012

24. This research reveals that most shoppers frequenting some of the most popular shopping hubs in Lahore are enthusiastic Facebook users. And not only do they use Facebook to connect with friends and while away time, they also actively engage with brands through this network.

25. Key market figures: Population 183 million 70% are under 30 years of age 30 million internet users 36% of population lives in urban areas 120 million mobile subscribers Average income is less than $3000 a year 8 million Facebook users Only 12% have access to formal financial services Can you spot the potential and opportunities?

26. Businesses realizing the potential Local entrepreneurs/businesses have already realized that the time to build new services that cater for the growing online and mobile consumers is now. They are now catering not to the local market alone. The map of Pakistan startups is starting to look very interesting.

28. Businesses realizing the potential “As a result of heavy investment in the arena by organizations such as a major retail outlet, and one of the largest venture builders globally – a string of competitors have started to emerge.” “The rising internet utility among the masses have increased the living standard of the people not only for communications and information purpose but for commercial means such as credit and money transactions by branchless and mobile banking.”

29. Some Examples

42. Bricks or clicks? Bricks & Mortar Bricks & Clicks Pure Clicks

43. The Amazon Story 2-43 Founded in 1995 as an online retailer. Did not become profitable until Q4 2001. In 2009, generated $24.5 billion in net sales, $902 million in net income. Leveraged its competencies into different e-business models. Established e-commerce partnerships with Target, Macy’s, and others. Provided developer services. Created the first affiliate program.

44. The Amazon Story 2-44 Amazon’s success is based on selection, lower prices, product availability, innovative technology, and better product information. CEO Jeff Bezos is not interested in expanding to the physical world. Which of Amazon’s core competencies do you think will drive its strategy in the future?

45. Coursework / Assignment Discussion Topic: “Is it better for a firm to start off as a bricks-and-mortar organization or is it better to start a business just through clicks?” Discuss with others on the discussion board and submit a report comprising of the following: An essay on the topic (Words limit 1000.) A paragraph of at least 500 words on the effectiveness of group discussion. Copies of three of your best posts on the discussion forum in appendix.

46. Strategy 2-46 Strategy is the means to achieve a goal. E-business strategy Strategy that deploys enterprise resources to reach performance objectives, competitive advantages. E-marketing strategy Strategy that capitalizes on information technology to reach marketing objectives.