Lecture 2 E-Marketing

Internet Usage in Pakistan& E-Marketing Potential

Instructor: Hanniya AbidLecture 2E-MarketingPakistan has highest growth rate of internet users in regionPakistans 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.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.

YEARUsersPopulation% Pen.GDP p.c.*Usage Source2000133,900163,985,3730.1 %N/AITU200612,000,000167,806,8317.2 %US$ 821ITU200918,500,000174,578,55810.6 %US$ 1,017ITU201018,500,000177,276,59410.4 %US$ 1,068ITUInternet 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. Internet usage is on the riseInternet 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.

Pakistan Market Trends 2013: Online, Mobile, Social Things Are About To Take OffNew 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.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.

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 service3G technology.

Pakistani businesses cant ignore Facebook anymore!

http://www.pakistantoday.com.pk/ Feb, 201223

Thisresearchreveals 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.Key market figures:

Population 183 million70% are under 30 years of age30 million internet users36% of population lives in urban areas120 million mobile subscribersAverage income is less than $3000 a year8 million Facebook usersOnly 12% have access to formal financial servicesCan you spot the potential and opportunities?Businesses realizing the potentialLocal 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.

Themap of Pakistan startups isstarting to look very interesting.

Businesses realizing the potentialAs 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.

Some Examples

Bricks or clicks?Bricks & MortarBricks & ClicksPure Clicks

The Amazon Story2-43Founded 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, Macys, and others.Provided developer services.Created the first affiliate program.The Amazon Story2-44Amazons 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 Amazons core competencies do you think will drive its strategy in the future?Coursework / AssignmentDiscussion 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.Strategy2-46Strategy is the means to achieve a goal.E-business strategyStrategy that deploys enterprise resources to reach performance objectives, competitive advantages.E-marketing strategyStrategy that capitalizes on information technology to reach marketing objectives.