“E-Marketing in Bangladesh - Status, Potential & Constraints”

Assignment On

“Elegant (VI)”

1

Assignment

On

E-Marketing

Course: 525

Topic: “E-Marketing in Bangladesh - Status, Potential & Constraints”

Prepared for:

Md. Moktar Ali

Associate Professor

Department of Marketing

Faculty of Business of Studies

University of Dhaka

Prepared by:

“Elegant (VI)”

Section: A

Department of Marketing (14th) MBA

Faculty of Business Studies

University of Dhaka

Date of Submission: 29th January, 2013 eng.

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Group Profile:

“Elegant (VI)”

No. Name BBA

Roll

MBA

Roll

Designation

1 Md. Abdur Rakib 041 375 Member

2 Rumana 087 427 Member

3 Md. Al Amin 089 419 Member

4 Anjuman Ara 139 215 Member

5 Md. Moben Ahmed 151 526 Member

6 Chowdhury Omor Faruque 173 377 Leader

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Table of Contents:

No. Particulars Page No.

1 Introduction 4-5

2 Objective of the Study 5

3 Overview of E-Marketing 5-9

4 Literature Review 10-12

5 Present Status of E-Marketing in Bangladesh 12-16

6 Types of E-Marketing in Bangladesh 17-20

7 Business Models 21-22

8 Financial Prospects of E-Marketing 23-25

9 Technological Prospects of E-Marketing 25-28

10 Constraints or Challenges of E-Marketing 29-31

11 Methodology of E-Marketing Survey 31-32

12 Survey Questionnaire, Result & Analysis 33-41

13 Recommendations 41-42

14 Conclusion 42-43

15 References 43

Table of Figures:

No. Particulars Page No.

1 Various E-Marketing Domain 6

2 Setup of E-marketing in BD 7

3 E-Marketing Activities 8

4 Total E-marketing Strategy 9

5 E-marketing Promotions 9

6 Differences among Internet Marketing, E-Marketing, E-Commerce & E-

Business

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7 Internet Usages 13

8 Evolution of E-marketing in Bangladesh 14

Table of Tables:

No. Particulars Page No.

1 Internet Usage Statistics 14

2 Trend of Gross Domestic Product of Bangladesh 23

3 Trend of Export, Import & Remittance 24

4 Ad Server Market Structure 24

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“E-Marketing in Bangladesh - Status, Potential & Constraints”

Introduction:

Bangladesh is a developing country. The recent technology boom has created a digital age. The

explosive growth in computer, communications, information, and other digital technology has

created new way of delivering value to customer. Now, more than ever before, we all are

connected to each other and to information anywhere in the world. Where it once took days or

weeks to receive information about national/global events, we now learn about them as they are

occurring through live satellite broadcasts and news websites. When it once took weeks to

correspond with others in distant places, they are only moment away by cell phone, email or

webcam. The digital age has provided marketers with exciting new ways to learn about and track

customers and to create product and service tailored to individual customer needs. It helping

customer to communicate with customer in large group or in one to one.

Digital technology has brought a new wave of communication, advertising, and relationship

building tools-ranging from online advertising, video sharing tools, cell phone, and video games

to web widget and online social network. The digital shift means that marketer can no longer

expect consumers to always seek them out. Nor can they always control conversation about their

brand.

The new digital world makes it easy for customer to take marketing content that once lived only

in advertising or on a brand. Website with them wherever they go and share it with friends. More

than just one to traditional marketing channels, the new digital media must be fully integrated

into the marketers’ customer relationship building efforts.” [Kotler page 27, principles of

marketing]

Digital wave has created new dimensions of marketing which is referred as e marketing, which is

the process by which companies create value for customers and build strong customer

relationships electronically in order to capture value from customers in return. Today’s

successful companies have one thing in common: they are strongly customer focused and heavily

committed t marketing. These companies share a passion for understanding and satisfying

customer needs in well defined target markets. They motivate everyone in the organization to

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help build lasting customer relationships based on creating value. P&G’s chief global market,

Jim Stergel, puts it this way: “If we are going to make one big bet on our future- right here right

now- I’d say that the smart money is on building [customer] relationships.” For marketing digital

technology is now emerged as new momentum for creating value and building customer

relationship. By observing electronic prospects in marketing, many multinationals like

bikroy.com and local company like Rokomary.com have started operation in Bangladesh on

online.

Objective of the Study:

Broad objective:

E-marketing, understanding steps in e-marketing process, defining key elements in e-marketing.

Specific objectives:

Finding out current status of e-marketing in Bangladesh.

Describing and analyzing key potential of e-marketing in Bangladesh.

Illustrating key barrier to e-marketing.

Differentiating the implication of e-marketing in consumer market and business market.

Focusing product category mostly suited for e-marketing in Bangladesh.

Overview of E-Marketing:

E-marketing is the fastest –growing form of direct marketing. Recent advances have created a

digital age. Widespread use of internet is having a dramatic impact on both buyers and the

marketers who serve them. If we consider e-marketing domain we find the following figure in

Bangladeshi perspectives:

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Figure: 1 Various E-Marketing Domain

B2C (Business to Consumer):

In this form of marketing, businesses sell goods and services online to final consumers. Business

can sell almost anything online such as from clothing, kitchen and airline tickets to computers

and cars.

B2B (Business to Business):

B2B markets use B2B websites, email, online product catalogs, online trading network and other

online resources to reach new business customers, serve current customers more effectively and

obtain buying efficiency and better prices.

Most major B2B marketers now offer product information, customer purchasing and customer

support services online. Simply beyond selling their products and services online, they can use

the internet to build stronger relationship with business customers. For example,

www.rokomari.com not only sells online but also builds strong customer relationship with them.

B2C

(Business to Consumer)

B2B

(Business to Business)

C2C

(Consumer to

Consumer)

C2B

(Consumer to Business)

Targeted to

Consumer

Targeted to

Business

Initiated by

Business

Initiated by

Consumer

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C2C (Consumer to Consumer):

C2C e-marketing and communication occurs on the web between interested parties over a wide

range of products and services. In some cases, internet provides an excellent means by which

consumer can buy or exchange goods or information directly with one another. For example,

www.bikroy.com offers popular market spaces for displaying and selling almost anything from

arts and antiques, coins and stamps to consumer electronics.

In other cases, C2C involves interchanges of information through internet forums that support to

specific special interest groups.

C2B (Consumer to Business):

The final e-marketing domain is B2B e-marketing. Thanks to the internet. Today consumers are

finding it easier to invite prospects and customers to send in suggestions and questions via

company websites. Besides, rather than waiting for an invitation, customers can search for sellers

on the web, learn about their offers, initiate purchase and give their valuable feedbacks. Using

the web, consumers can even drive transactions with business rather than the other ways around.

Set-up of E-marketing in Bangladesh:

Figure: 2 Setup of E-marketing in BD

Conducting E-

marketing

Setting up online social

network

Creating website

Placing ads or promotional tools online

Using email

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Blueprint of E-Marketing:

Figure: 3 E-Marketing Activities

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Total E-Marketing Strategy:

Figure: 4 Total E-marketing Strategy

Figure: 5 E-marketing Promotions

Total E-Marketing Strategy

Website Effectiveness

E-Mali Campaign Strategy

Customer Database

Management & Retail

Online Advertising

Search Engine Strategy

E-Marketing

Direct Marketing

Tradeshow Promotion

Advertising

Public Relations

Events

Loyalty Programs

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Literature Review:

“E-marketing is sometimes considered to have a broader scope since it refers to digital media

such as web, e-mail and wireless media, but also includes management of digital customer data

and electronic customer relationship management systems (E-CRM systems).”- Dave Chaffey

Electronic Marketing (E-Marketing) can be viewed as a new philosophy and a

modern business practice involved with the marketing of goods, services, information and

ideas via the Internet and other electronic means. By reviewing the relevant literature it is

noticed that definitions of electronic marketing (E-Marketing) vary according to each

author's point of view, background and specialization. For that, while Smith and

Chaffey defines it as: “Achieving marketing objectives through applying digital

technologies” (Smith and Chaffey, 2005: 11), Strauss and Frost define it as: “The use of

electronic data and applications for planning and executing the conception, distribution and

pricing of ideas, goods and services to create exchanges that satisfy individual and organizational

goals” (Strauss and Frost, 2001: 454).

On the other hand, the review of the relevant literature revealed that one of the main obstacles in

the literature is the unclear way of dealing with the concept and definition of E-

Marketing. In this respect most of the researchers misused the term E-Marketing; the

majority of researchers are using the terms: E-Marketing / Internet-marketing / E-

commerce / E-business as equivalents or a deferent wording for the same meaning,

which is incorrect because they are deferent. For example, E-Marketing has a broader

scope than internet- marketing since Internet Marketing (IM) refers only to the

Internet, World Wide Web, e-mails. While E- Marketing includes all of that plus all other

E-Marketing tools like: Intranets, Extranets and mobile phones. In contrast with that, E-

commerce and E-business have a wider and broader scope than E-Marketing. These

differences can be illustrated in the following figure.

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Figure: 6 Differences among Internet Marketing, E-Marketing, E-Commerce & E-Business

Source: El-Gohary et al (2010)

By reviewing the literature of E-Marketing; in one hand, it is noticed that the number of studies

conducted by researchers and practitioners in the field of E-Marketing from 2003 to 2010

is relatively limited. This can be justified by the relative novelty of E- Marketing.

This provides an indication that E-Marketing is relatively new for academics and practitioners

and also provides reasonable expectations about the increase in number of studies related to E-

Marketing in the near future. The total number of studies was 365 studies, 73 % of

it was empirical and 27 % of the total number of articles was not.

It is also noticed that the research activity output in E-Marketing had decreased significantly

between 2003 and 2008 within the literature period. Although the published articles

had covered the following research areas: E-business, E-marketplace, Electronic

Commerce, Electronic platforms, ICT adoption, Internet marketing, On-line trust,

B2B, Performance evaluation, The Web, Electronic marketing, E-mail Making, E- readiness, E-

relationships, E-security, E-service, E-supply chain management, Internet adaptation,

E-Business

E-Commerce

E-Marketing

Internet Marketing

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Mobile marketing and some other research. Electronic Commerce was the major

research area covered by the researchers in the field followed by Electronic Business and

Internet marketing. Most of the empirical studies had been conducted in: the USA, Australia,

New Zealand and the UK which was the biggest in number of studies conduct in the literature

period.

By analyzing the articles conducted in the UK market it was noticed that these

articles had covered the following research areas: E-business, Electronic Commerce,

Electronic marketing, Internet marketing, the web, ICT adoption, Business

performance and some other research areas. On the other hand, most of the articles

in the literature were published in the Journal of Small Business and Enterprise

Development (27 articles) with a percentage of 7.4 % of the total number of studies conducted in

the period of the literature. The next six top journals were: Internet research, Journal of Internet

Marketing and Advertising, Journal of Electronic Commerce Research, Journal of Internet

Marketing, Journal of Interactive Marketing and Journal of Business-to-Business Marketing.

Based on the literature there are clear research gaps in the field of E-Marketing especially in the

areas of E- Marketing performance as well as E-Marketing adoption in Small Business

enterprises (SBEs). To fill such gaps and extend previous studies there is a need for conducting

more research to investigate the relationship between implementing E-Marketing and SBEs

performance.

Present Status of E-marketing in Bangladesh

Bangladesh has undergone a long way in its development of information and technology sector,

which has paved the way of e -commerce and e -business. E-marketing has a significant impact

on business costs and productivity. E-marketing has a chance to be widely adopted due to its

simple applications. Thus it has a large economic impact. It gives the opportunity for “boundary

crossing” as new entrants, business models, and changes in technology erode the barriers that

used to separate one industry from another. These increases competition and innovation, which

are likely to boost overall economic efficiency. Now, E-marketing has emerging business

potentials in BD. The rapid expansion of the use of internet, cell phone, online banking,

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changing lifestyle of people, and migration of labor in foreign country is making E-marketing

more prospectus in the country. There is also some great restriction exist in the development of

E-marketing like security issue, low per capita income, lower access rate to internet, lack of

government support, lack of infrastructural development.

Starting a business in Bangladesh however is getting more competitive in this edge of business

flourishment, economic uncertainty and variety of options to the customer. Today’s marketing

techniques are the result of a huge technological and internal movement within this last decade.

Some multinational companies have introduced us some real exceptional marketing methods and

local companies are in competition. Now, the key to success for these businesses are choosing

the right method of marketing and providing the right message to the customer.

Internet Usage Statistics:

Figure: 7 Internet Usages

5,570,535 Internet

users as of Dec, 2011

3.5% of the population,

according to ITU.

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YEAR Users Population % of internet

users

2000 100,000 134,824,000 0.1 %

2007 450,000 137,493,990 0.3 %

2009 556,000 156,050,883 0.4 %

2010 617,300 158,065,841 0.4 %

2011 5,501,609 158,570,535 3.5 %

Table: 1 Internet Usage Statistics

Source: International Monetary Fund.

Figure: 8 Evolution of E-marketing in Bangladesh

Phase 1

(Late 1990s-2006)

Infrastructure building

Phase 2

(2006-2009)

Isolated e-marketing

Phase 3

(2010- onwards)

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Types of E-Marketing Suitable for Bangladeshi Company:

By analyzing the demographics, data from reliable sources and by having a small online survey

we have selected some of the most effective- marketing services in Bangladesh. Here is a list of

these:

Social Media Marketing

Email Marketing to Targeted Customers

Search Engine Optimization

Content Marketing

Advertising on Ads Network

Brand and Reputation Management

Names of E-Marketing Company in Bangladesh:

Customize sourcing

Innotex

Macro media

Email brain

BD.jobs.com

Bikroy.com

Hatbazar.com

Tolet.com

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For a new entrant in a market, marketing is a crucial, and somewhat expensive, requirement in

order to development some awareness of the new product. The private sector in Bangladesh has

made significant progress in developing a marketing push through its industry associations. The

public sector, however, can also contribute to this effort.

Globalization has brought in many changes in the business scenario with the whole world

inching towards one big market place. Communication between the buyers and sellers has

become critical as each can opt to explore a greater number of alternatives than ever before. E-

marketing through Internet, e-mails, websites, and other facilities, enables a businessman to be

linked with every corner of the world, and thus opens up greater opportunities in the world

market. Another important factor is the time required for completing a business transaction. As

markets are becoming competitive and information is more readily available, a quick, reliable

And replicable transaction implies availing of prevailing opportunities. On the contrary, delays in

processing a transaction might become synonymous to wasting an opportunity. Therefore, a fast

and alternative mechanism of communication, contract, and payment is an integral part of a

globally competitive business organization. How important or relevant is e-marketing to the

economy of Bangladesh – a developing economy – in general and to the export market in

particular? The Information Technology (IT) revolution has been too phenomenal to predict its

future growth and its use in an economy like Bangladesh’s. In the light of the recent spate of

globalization and the initiation of the World Trade Organization (WTO), assessing the

immediate and short or medium term relevance of e-marketing to Bangladesh becomes

imperative. Now -a-days personal computers and the Internet are also emerging as day-to-day

business tools in our country. These positive indicators are favoring the prospects of E-marketing

in Bangladesh.

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Types of E-Marketing in Bangladesh:

E-marketing is broadly divided in to the following types:

Display Advertising: the use of web banners or banner ads placed on a third-party website or

blog to drive traffic to a company's own website and increase product awareness.

Search Engine Marketing (SEM): a form of marketing that seeks to promote websites by

increasing their visibility in search engine result pages (SERPs) through the use of either paid

placement, contextual advertising, and paid inclusion, or through the use of free search

engine optimization techniques also known as organic result.

Search Engine Optimization (SEO): the process of improving the visibility of a website or a

web page in search engines via the "natural" or un-paid ("organic" or "algorithmic") search

results.

Social Media Marketing: the process of gaining traffic or attention through social media

websites such as Facebook, Twitter and LinkedIn.

Email Marketing: directly marketing a commercial message to a group of people using

electronic mail.

Referral Marketing: a method of promoting products or services to new customers through

referrals, usually word of mouth.

Affiliate Marketing: a marketing practice in which a business rewards one or more affiliates

for each visitor or customer brought about by the affiliate's own marketing efforts.

Inbound Marketing: involves creating and freely sharing informative content as a means of

converting prospects into customers and customers into repeat buyers.

Video Marketing: This type of marketing specializes in creating videos that engage the

viewer into a buying state by presenting information in video form and guiding them to a

product or service. Online video is increasingly becoming more popular among internet users

and companies are seeing it as a viable method of attracting customers.

Online advertisement as Digital Promotions for Television:

Online advertisement can also be classified as Digital Promotions. Digital promotion in

connection to the television industry is when networks use authentic digital resources to promote

their new shows in a growing vast range of venues. Television networks development of digital

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off air promotional strategies allowed digital promotion to remain significant to the

advertisement advancement in the television.

Examples of television online digital promotions: The Sci Fi network for loaded a special recap

episode of Battlestar Galactica onto Microsoft’s Xbox online gaming service; this gave the

audience additional opportunities to sample content if they may or may not be familiar with the

show. Another example of digital promotion in television is when network CBS incorporated

new digital technologies of Bluetooth-enabled mobile devices that were able to download a

thirty-second clip of a new show on their devices; consumers standing in range of a billboard

don’t need an internet link to download the show’s content. These non-linear viewing

opportunities provided as a valuable tool for gaining audiences; and to encourage them to

intersect with the linear audience.

Approaches:

One-to-one approaches: In a one-to-one approach, marketers target a user browsing the

Internet alone and so that the marketers' messages reach the user personally. This approach is

used in search marketing, for which the advertisements are based on search engine keywords

entered by the users. This approach usually works under the pay per click (PPC) method.[

Appeal to specific interests: When appealing to specific interests, marketers place an

emphasis on appealing to a specific behavior or interest, rather than reaching out to a broadly

defined demographic. These marketers typically segment their markets according to age

group, gender, geography, and other general factors.

Appealing to specific users can be achieved through behavioral targeting which refers to the

use of behavioral patterns and putting up the relevant content suitable to the viewer's interest

obtained from the user through cookies and other tools and contextual advertising which

refers to the publishing of advertisements and ads based on the context the user in. For

example if the user is searching for coffee, the search engine publishes ads related to coffee.

Niche marketing: In conventional niche marketing, clusters of consumers (the niche) are

identified in order to more economically and efficiently target them. Similarly, niche internet

marketing attempts to create a more direct advertising message for those who are seen as

most likely to buy the product being advertised (see Target audience and Conversion rate).

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Niche internet marketing focuses on marketing products and services which are, or can

appear, tailor-made for a specific subset of consumers who are expected to buy the product or

service with a specific motivation. The online advertising message (or product web site) can

then be similarly tailor-made to target that assumed motivation. In combination with search

engine optimization, the niche internet marketer can attempt to increase the likelihood that

their product's advertisement (or site) will be seen by customers in the relevant niche.

Geo-targeting: In Internet marketing, geo-targeting is the methods of determining the geo-

location of a website visitor with geo-location software, and delivering different content to

that visitor based on his or her location, such as latitude and longitude, country, region or

state, city, metro code or zip code, organization, Internet Protocol (IP) address, ISP, and other

criteria.

Types of Ad: Though, as seen above, the large majority of online advertising has a cost that

is brought about by usage or interaction of an ad, there are a few other methods of advertising

online that only require a onetime payment. The Million Dollar Homepage is a very

successful example of this. Visitors were able to pay $1 per pixel of advertising space and

their advert would remain on the homepage for as long as the website exists with no extra

costs.

Floating Ad: An ad which moves across the user's screen or floats above the content.

Expanding Ad: An ad which changes size and which may alter the contents of the

webpage.

Polite Ad: A method by which a large ad will be downloaded in smaller pieces to

minimize the disruption of the content being viewed

Wallpaper Ad: An ad which changes the background of the page being viewed.

Trick Banner: A banner ad that looks like a dialog box with buttons. It simulates an

error message or an alert.

Pop-Up: A new window which opens in front of the current one, displaying an

advertisement, or entire webpage.

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Pop-Under: Similar to a Pop-Up except that the window is loaded or sent behind the

current window so that the user does not see it until they close one or more active

windows.

Video Ad: similar to a banner ad, except that instead of a static or animated image,

actual moving video clips are displayed. This is the kind of advertising most

prominent in television, and many advertisers will use the same clips for both

television and online advertising.

Map Ad: text or graphics linked from, and appearing in or over, a location on an

electronic map such as on Google Maps.

Mobile Ad: an SMS text or multi-media message sent to a cell phone.

Superstitial: An animated ad on a Web page from Enliven Marketing Technologies. It

uses video, 3D content or Flash to provide a TV-like advertisement. Used to be

known as Unicast Transitional ads as they were originally made by Unicast

Communications but the company was acquired by Viewpoint Corporation in 2004,

which then changed its name to Enliven in 2008.[24]

Interstitial ad: a full-page ad that appears before a user reaches their original

destination.

Frame ad: an ad that appeared within an HTML frame, usually at the top with the site

logo. As the user browsed the site, the frame would not change.

In addition, ads containing streaming video or streaming audio are becoming very

popular with advertisers.

E-mail advertising

Display advertising

Affiliate marketing

Behavioral targeting

Semantic advertising

Social network advertising

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Business Models:

This section does not cite any references or sources. Please help improve this section by adding

citations to reliable sources. Unsorted material may be challenged and removed. Internet

marketing is associated with several business models given as the following:

E-Commerce: a model whereby goods and services are sold directly to a consumer or

business.

Lead-Based Websites: a strategy whereby an organization generates value by acquiring sales

leads from its website. Similar to walk-in customers in retail world. These prospects are often

referred to as organic leads.

Affiliate Marketing: a process wherein a product or service developed by one entity is sold

by other active sellers for a share of profits. The entity that owns the product may provide

some marketing material (e.g., sales letters, affiliate links, tracking facilities, etc. However,

the vast majority of affiliate marketing relationships come from e-commerce businesses that

offer affiliate programs.

Revenue Models in Bangladesh:

Compensation Methods:

The three most common ways in which online advertising is purchased are CPM, CPC, and

CPA.

CPM (Cost per Mile) or CPT (Cost per Thousand Impressions) is when advertisers pay

for exposure of their message to a specific audience. "Per mille" means per thousand

impressions, or loads of an advertisement. However, some impressions may not be

counted, such as a reload or internal user action.

CPV (Cost per Visitor) is when advertisers pay for the delivery of a Targeted Visitor to

the advertisers website.

CPV (Cost per View) is when advertisers pay for each unique user view of an

advertisement or website (usually used with pop-ups, pop-unders and interstitial ads).

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CPC (Cost per Click) or PPC (Pay per Click) is when advertisers pay each time a user

clicks on their listing and is redirected to their website. They do not actually pay for the

listing, but only when the listing is clicked on. This system allows advertising specialists

to refine searches and gain information about their market. Under the Pay per click

pricing system, advertisers pay for the right to be listed under a series of target rich words

that direct relevant traffic to their website, and pay only when someone clicks on their

listing which links directly to their website. CPC differs from CPV in that each click is

paid for regardless of whether the user makes it to the target site.

CPA (Cost per Action or Cost per Acquisition) or PPF (Pay per Performance) advertising

is performance based and is common in the affiliate marketing sector of the business. In

this payment scheme, the publisher takes all the risk of running the ad, and the advertiser

pays only for the number of users who complete a transaction, such as a purchase or sign-

up. This model ignores any inefficiency in the seller's web site conversion funnel. The

following are common variants of CPA:

CPL (Cost per Lead) advertising is identical to CPA advertising and is based on the

user completing a form, registering for a newsletter or some other action that the

merchant feels will lead to a sale.

CPS (Cost per Sale), PPS (Pay per Sale), or CPO (Cost per Order) advertising is

based on each time a sale is made.[18]

eCPM: Effective CPM or eCPM calculated through other conversion events such as Cost

per Clicks, Cost per Downloads, Cost per Leads etc. for example when an advertiser

getting $2 per download and for 100,000 impressions you received 10 downloads worth

$20, in this case your effective CPM or eCPM will be 2*20*1000/100,000= $0.4

Fixed Cost: Advertiser paying fixed cost for delivery frame by campaign flight dates

without any relevance to performance

Cost per conversion describes the cost of acquiring a customer, typically calculated by

dividing the total cost of an ad campaign by the number of conversions.

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Financial Prospects of E-Marketing:

Macro-economic trend:

This is a chart of trend of gross domestic product of Bangladesh at market prices estimated by

the International Monetary Fund with figures in millions of Bangladeshi Taka. However, this

reflects only the formal sector of the economy.

Year Gross Domestic Product US Dollar Exchange Inflation Index

(2000=100)

Per Capita Income

(as % of USA)

1980 250,300 16.10 Taka 20 1.79

1985 597,318 31.00 Taka 36 1.19

1990 1,054,234 35.79 Taka 58 1.16

1995 1,594,210 40.27 Taka 78 1.12

2000 2,453,160 52.14 Taka 100 0.97

2005 3,913,334 63.92 Taka 126 0.95

2008 5,003,438 68.65 Taka 147

Table: 2 Trend of Gross Domestic Product of Bangladesh

Mean wages were $0.58 per man-hour in 2009.

The World Bank predicted economic growth of 6.5% for current year. Foreign aid has seen a

decline of 10% over the last few months but economists see this as a good sign for self-reliance.

There has been 18% growth in exports over the last 9 months and remittance inflow has

increased at a remarkable 25% rate.

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Fiscal Year Total Export Total Import Foreign Remittance Earnings

2007–2008 $14.11b $25.205b $8.9b

2008–2009 $15.56b $22.00b+ $9.68b

2009–2010 $16.7b ~$24b $10.87b

2010–2011 $22.93b $32b $11.65b

2011–2012 $24.30b $35.92b $12.85b

Table: 3 Trend of Export, Import & Remittance

Ad Server Market Structure:

Given below is a list of top Ad server vendors in 2008 with figures in millions of viewers

published in an Attributor survey. Since 2008 Google has controlled an estimated 69% of the

online advertising market.

Vendor Ad viewers (millions)

Google 18

Double Click (Google) 2

Yahoo! 3

MSN (Microsoft) 1

AOL 1

Ad Brite .5

Total 25.5

Table: 4 Ad Server Market Structure

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Bangladesh is steadily forwarding toward digitalization which paves the way toward sound

financial growth on e-marketing. Future trends

Bangladesh’s retail market is estimated at $1 billion in 2011 and is expected to grow to $2.5

billion by 2016 and $8 billion by 2020 – estimated growth rate is 18%.

Technological Prospect of E-Marketing:

1. Facebook’s Online Marketing Platform:

The adoption of Face book’s advertising capabilities and ability to target specific segments by

smaller and mid-sized firms. While Face book has done little this year to improve the features in

its advertising portal, the business community is beginning to adopt the platform en mass. If you

haven’t heard of facebakers.com, you might want to review the international levels of adoption

of Face book as a global advertising player.

2. Privacy Showdown Becomes a Major News Topic in 2011:

Digital marketers had a lot of press coverage on their tactics in the last half of 2011. We’ll see

public debates, but I don’t think that there will be any major changes this year in the

law. However, I do believe that we’ll see some innovations coming in the way of online

reputation managers allowing both sellers and regular folks to create digital reputation

management badge that can be taken with them across all websites.

3. Smart Phones for Everyone.

No longer reserved for the traveling elite, smart phones have found their way into the hands of

soccer moms, teenagers, tweeners, and even children. The 7-12 year olds at church were asking

for the “itouch” on their holiday gift list. Digital cameras are going away, and devices that

double as cam-recorders and “The Jetsons” video telephones are coming to a hand near

you. Droid, Blackberry and Apple will fight and Blackberry will become a distant third because

they haven’t catered to the all-powerful Apps content the way Droid and Apple have. See #4 for

more on this topic.

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4. Software as a Service:

Major software industries are being consolidated from the traditional client / server

model. Companies such as Net Suite, Sales force, Omniture, Rackspace, and others are finally

making it possible to enjoy the benefits of the internet without having to be a propeller-headed,

geek. This is our hope and Lima Consulting Group continues to position itself to help companies

benefit from these trends by integrating these software solutions for our clients. We believe

there are three “i’s” in technology Innovators (the manufacturers of software), Implementers (the

installers) and Integrators (consulting companies that implement two or more of the innovators

solutions). We’ll continue to see increased competition from new entrants who present

themselves as “cloud computing”, “Software as a Service” consulting companies.

5. Cloud Computing:

Cloud computing is an amorphous term, but I’m defining it here as data centers migrating away

from corporate or the home to the internet based data centers. Firms like Rackspace, Carbonate,

Jungle Disk and my favorite, Box.net are really growing their user base. The ability to integrate

these applications within other software packages, (for example you can integrate Box.net within

Net Suite), is a real alternative to the costly implementations for tools like Share point and

Documented. Keep an eye on the company that Computer Associates acquired, 3Tera, and

software companies that virtualized data centers and applications. This software allows data

centers to move their entire operation to the data center closest to the highest levels of traffic

within seconds. As the world rotates each day, the data centers will also rotate to wherever the

sun is shining. The data center that never sees night – interesting concept towards addressing

disaster recovery and increasing internet speeds while seeking best pricing on energy. That’s

enough to make the “green” contingency happy, the typical internet user and even the lawyers

among us.

6. Everything™ vs. Robot This:

IPad launches, iPhone 4.0 and iOS make it easy for entry level developers to develop over

300,000 which were downloaded over 7 billion times. The median revenue is less than $700

while the average cost to develop an app ranges from $15,000 to $50,000. The iPad took the

world by storm introducing a new category of computing, or at least bringing a niche category of

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tablet computing to the forefront. Today, Barnes and Noble declared the Nook as their best

selling product ever; it’s been out – what – two months? And the Kindle brings up the 3rd

place

spot filling a need for a less tech-savvy crowd. But the real shift in 2011 will be back to

subscription models to pay for content such as the WSJ, NetFlix downloaded to your devices and

of course e-books, which outsold regular books in 2010 and lastly the world’s largest media

company, yep – you guessed it – Apple. They sell more media than any other company. So the

device and the content combination will engage in hand-to-hand combat with Google’s Android

more flexible and open platform. Microsoft really should be the one giving Apple the

competition here, they missed their chance. If Google gets this right, they will finally be out of

trouble in having 96% of their revenue coming from their online advertising product,

Adwords. Look for a bloody battle between these two in 2011; it’s going to get personal.

7. Here an App, there an App, Everywhere an App:

Sales force started the first large-scale App store with their App Xchange. Then Apple with their

App Store, then every company in the internet base Software as a Service model did. Net Suite

has the BOS network, Omniture has the Genesis partners, Droid has andoid.com and the list goes

on. The widespread adoption of the “crap apps” out there will be a major reason that the victor

will emerge, and I predict that Apple will continue here for several years to lead. While Droid

has flash, and an open network, I heard once that “average products well marketed will beat good

products with average marketing.” And the iPhone is no average product, they have the first

mover advantage for having created the category and they don’t appear to be letting off the

accelerator in terms of innovating both their software and their hardware associated with the

iPhone and iPad. I for one have been impressed with their advances the last three years and I am

eager to see what they launch in the summer with their next generation iPhone and iPad.

8. Net Neutrality:

Net Neutrality in 2010 allowed one standard for wireless providers and another for landlines

making, in essence 2 playing fields. This was an unfortunate ruling that would allow certain

wireless providers to block features that don’t need to be blocked for any other reason than it

would cannibalize the cell phone company’s revenue. Central to the issue is Skype’s video chat

and voice chat using the 3G network on the major carriers. Verizon allows it, AT&T does not.

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9. Personalized Online Experiences based on what you’ve done on the Internet:

The improvement in web analytics to allow for personalization of ads and content based on prior

site visits. Solutions such as Omniture’s Test and Target, Recommendations, Merchandising,

Survey, and Search and Promote became more widely adopted and this notion of personalizing

experiences on the web is the future of online experiences. The increased integration of your

entire totality of information available to digital marketers will allow them to develop a more

complete picture of an individual’s online behavior and interests than ever before. Armed with

the profile information collected from social networking sites such as Face book, linked in,

Twitter, you tube, and others they can present more relevant content and online experiences. The

first to adopt these technologies will be media companies and ecommerce marketplaces.

10. Hacking used as a tool by ordinary citizens as a method of protesting:

WikiLeaks renegades using social computing to propagate their Denial of Service Attacks. By

enlisting anyone who wished to support the WikiLeaks organization, thousands of novice

hackers downloaded the software and allowed their computers to attack the likes of Visa,

MasterCard, Pay pal, and other internet giants. This behavior reminds of the flash gangs that

started popping up around Philadelphia, and more recently in Rio de Janeiro. They happen when

a ring leader sets a time and place for hundreds of his hooligan friends to show up and rob

neighborhood stores and then disperse within minutes making it nearly impossible for police to

find the vandals. This trend will continue in 2011 by less and less sophisticated

threats. Welcome to the new era, for good or for bad, of the masses having the ability to meet (a

right that in many countries is not granted) and to conduct large-scale coordinated hacking

attacks for any purpose.

11. E-Marketing is the fastest means of marketing in now a day’s economy we can sell & buy

online while you are in your home.

12. This can be used as publishing is the sale of advertising.

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Constraints or Challenges of E-Marketing:

E-marketing has several challenges. Among them the fallowing are critical.

1. Limited access and use of computer and telephone

2. High internet connection cost

3. Slow internet connection speed

4. Unpredictable power supplies

5. Credit card conundrum

6. Lack of modern financial system

7. Language barrier

8. Lack of flat rate phone plan

9. High illiteracy rate

10. Legislation and regulation are not contemporary

11. Personal computer and other computer device access rate is low

12. Low penetration of credit card

13. Security and privacy issues

Computer and Telephone Access:

To make successful e marketing customer must have access to computer and an internet service

provider (ISP) to use the internet. In Bangladesh numbers of internet users are not enough to

support successful e marketing.

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Internet Connection Cost:

Country like Bangladesh has higher internet related business cost- a concern because the internet

is essential for every e business. Internet connection cost is high relative to the purchase power

of people

Slow Internet Connection Speed and Website Design:

Another key issue of e marketing in BD is the relationship between connection speed and web

site design. Although most internet connection around the world is through dial up connections, a

telephone line limits the speed which data can be sent and received. The current maximum speed

for modern internet connection is 300kbps. Download speed is 300kbps.This has significant

implication for Website design, specially the extent to which graphics are used.

The web is quintessentially a visual medium and users expects to see pictures, particularly

complicated graphics and pictures that move, swirl and morph into usual shape. Yet each of

these elements slows the download rate. In BD, with slow connections speed and a user may be

paying the minute, download speed is a major consideration. Two points are important here.

First, every e-marketer needs to understand how connection speeds influence download rate.

Second, just because graphic designers can do something cutting edge on websites doesn't mean

they should. In other words, just because a website can use flash graphics and incorporate a lot of

pictures doesn't mean that it should.

Unpredictable Power Supplies:

In BD another challenge for e-marketer is sporadic electricity. Supplies of electricity and access

to it don’t bring optimum position to bring a good prospect for e-marketing.

Credit Card Conundrum:

Convenience and ease of transaction are two of the internet’s greatest benefits. Credit card and

secure online payment systems make seamless and easy web based transactions in developed

countries. So, it is not always possible for buyer to pay electronically for not having a credit card.

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Lack of Modern Financial System:

The Bangladeshi cash based culture limits the volume of online transactions. The establishment

of payment counter, ATM booth and collection agencies is expected to lessen to severity of the

problem but will also add to overhead expense incurred by online service.

Language Barrier:

Most online service providers opt to provide bilingual interface for their sites to accommodate

local and foreign customer. This increase cost and adds some technical challenges.

High Illiteracy Rate:

High illiteracy rate limits usage of high-tech services of all kinds. Progressive governmental

strategies are centrally needed to reduce the relatively high illiteracy rate.

Legislation and Regulation:

New rules and laws are needed to address issues related to taxation, software piracy, credit card

fraud and online money laundering.

Methodology of E-Marketing Survey:

Methodology is usually a guideline system for solving a problem, with specific components such

as phases, tasks, methods, techniques and tools. It can be defined also as follows:

1. "The analysis of the principles of methods, rules, and postulates employed by a discipline".

2. "The systematic study of methods that are, can be, or have been applied within a discipline".

3. "The study or description of methods".

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We collect our data from both primary & secondary sources.

A. Primary sources:

1. Personal Observation.

2. Online Survey.

3. Focus group Interview.

4. Working experience of different sector of E-Marketing.

5. Face to face conversation.

6. Some organization who practices E-Marketing.

7. Statistical information.

B. Secondary sources:

1. Websites.

2. Some books related on E-Marketing.

3. Some articles on E-Marketing.

4. Some Journal about E-Marketing.

5. Different Research Report.

Data Collection tools:

Telephone.

Internet.

Mail.

Direct Phone.

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Survey Questionnaire, Result & Analysis:

E-Marketing Survey question (Customer Point of View):

Name:

Working Status:

Age:

Religion:

Please (√) each of the questions:

1. Do you know about the online purchasing system?

a) Yes

b) No

2. For which purpose do you use the online purchasing system?

a) Shopping

b) Purchasing book

c) For ordering software

d) Others

3. How many times do you use online purchasing or E-Marketing?

a) Each day

b) One week

c) One month

d) In a year

e) Never

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4. Do you enjoy using online marketing?

a) Yes

b) No

c) No comment

5. Why do you enjoy using E-Marketing?

a) Convenient

b) Less time

c) Less cost

d) others

6. Why do you not like to use E-Marketing?

a) Security problem

b) Not capable to use computer

c) Complicated system

d) Others

E-Marketing Survey question (Organization Point of View):

Name of your organization:

Address:

Type of Business:

Please (√) each of the questions:

1. Do you use E-Marketing system in your organization?

a) Yes

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b) No

2. Why are you using E-Marketing?

a) Customer convenience

b) Stylish system

c) Easy to control

d) Attract more customer

e) Other issue

3. Why you are not like to use E-Marketing?

a) Complicated system

b) Customer are not interested to use it

c) Costly

d) Others issue

4. In your industry is E-Marketing popular?

a) Yes

b) No

c) No comment

5. Do you believe E-Marketing will be popular in Bangladesh after 5 years?

a) Yes

b) No

c) No comment

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E-Marketing Survey Output and Explanation (Consumer Point of View)

1. Do you know about the online purchasing system?

Explanation:

In our survey we find 89% of our respondent knows about E-Marketing. 11% of our

respondent doesn’t know about it. The figure is clearly significant.

2. For which purpose do you use the online purchasing system?

89%

11%

Do you know about online purchasing system?

Yes

No

40%

30%

10%

20%

For which purpose do you use the online purchasing system?

Shopping

Purchasing book

For ordering software

others

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Explanation:

In our survey we found that 40% of our respondent using E-marketing for shopping

purpose. 20% are using for purchasing book. 10% are using for ordering software.

3. How many times do you use online purchasing or E-Marketing?

Explanation:

In the survey we have found that 4% of our respondent each day using E-marketing. 45%

of the respondents are never using E-Marketing.

4. Do you enjoy using E-Marketing?

4%

13%

22%

45%

14%

How many times do you use online purchasing or E-Marketing?

Each day

One week

One month

In a year

Never

59%39%

12%

Do you enjoy using E-Marketing?

Yes

No

No Comment

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Explanation:

In our survey 59% of the respondent would like to use E-Marketing. 39% would not

prefer E marketing. 12% of the respondent doesn’t respond.

5. Why do you enjoy using E-Marketing?

Explanation:

49% of the respondent prefer convenient. Time is important to the 25% of the respondent.

15% prefer cost and 11% feels it other reasons.

6. Why do you not like to use E-marketing?

:

49%

25%

15%

11%

Why do you enjoy using E- Marketing?

convenint

less tme

less cost

others

55%30%

10%

5%

Why do you not like to use E- Marketing?

Security problem

Not capable to use computer

Complicated system

others

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Explanation:

Security problem is the main reason main problem the respondent belief. 55% believe

that security problem is crucial. 30% are not habituated to use E marketing.

E-Marketing Survey Output and Explanation (Organization Point of View)

1. Do you use E-Marketing system in your organization?

Explanation:

In our survey 65% of the organization is using E marketing. Others are not habituated

with this system.

2. Why are you using E-Marketing?

35%

65%

Do you use E-Marketing system in your organization?

Yes

No

30%

20%10%

30%

10%

Why are you using E-Marketing?

Customer convenience

Stylish system

Easy to control

Attract more customer

others issue

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Explanation:

Most of the respondents are using E-Marketing to attract the customer and customer

convenient.

3. Why do you not like to use E-Marketing?

Explanation:

Most of the respondent believes that E marketing is costly to maintain and develop. 30%

believe that the system is complicated.

4. In your industry is E-marketing popular?

30%

20%

45%

5%

Why do you not like to use E- Marketing?

Complicated system

Customer are not interested to use it

Costly

Others issue

50%

50%

5%

In your industry is E-marketing popular?

Yes

No

No comment

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Explanation:

Most of the respondent believes that E-marketing is popular in their industry.

5. Do you believe E-Marketing will be popular in Bangladesh after 5 years?

Explanation:

Most of the respondents believe that E-marketing will get its full speed within 5 years

from now.

Recommendation:

Organization should take the responsibility to makes popular E Marketing in Bangladesh. Its

helps them to reduce the cost and convenient and value added service to its customer. The other

recommendations are:

1. Train the people to use the E Marketing system

2. To provide more information about the benefit of E Marketing system

70%

25%

5%

Do you believe E-Marketing will be popular in Bangladesh after 5 years?

Yes

No

No comment

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3. Organization need to have more preparation to use the system thus there are no problem

when the user use the E Marketing system.

4. The current govt. of republic of Bangladesh’s is to make a “Digital Bangladesh”, so they

have also the responsibility to develop more E marketing related firm

5. At last public should aware to use E marketing as the system is developing only for customer

convenience.

Conclusion:

Despite being a poor country, selected segments of the Bangladeshi business community has

embraced technology with reasonable success. The Facsimile in the 1980’s and mobile

telephones in the 1990’s popularized modern technology in the mass market. Personal computers

and the Internet are also emerging as day-to-day business tools. These positive indicators are

favoring the prospects of e-commerce in Bangladesh. Synergy between telecommunications and

information technology has the proven capability of monitoring and administering the real-time

transactions. Therefore, liberalizing the telecom and IT sectors as well as reforming the country’s

financial and commercial procedures is the preconditions of successfully implementing

ecommerce in Bangladesh. In the case of marketing, simply having a website in the vast sea of

the Internet is not sufficient. Uniformity is an important factor in the commencing of contracts

through the Internet. Therefore, to take advantage of the newer opportunities that IT

development presents, the Bangladeshi companies have to attain internationally accepted

certification on quality control, competitive price and timely delivery. Creating awareness among

the Bangladeshi exporters regarding e-commerce is essential. They have to be knowledgeable to

appreciate and to utilize the benefits of IT. Business associations can play a major part at this

juncture by highlighting the benefits of IT to its members, and encouraging them to use

customized software for their day-to-day operations. The overview of the legal and regulatory

statutes suggests that Bangladesh has made significant progress in facing the challenge of

globalization and concurrently, embracing e-commerce in due course. Technological and

infrastructural constraints to e-commerce can be overcome if existing laws and regulations are

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implemented. A better understanding of the potential benefits of e-commerce by the policy

makers and bureaucrats is essential for speedy implementation and further reforms.

References:

Bangladesh Bank, Foreign Exchange Guidelines

Bangladesh Bureau of Statistics

Bangladesh economic forum

IMF information & technology review on BD

www.wikipedia.org

Ministry of Commerce, Government of Bangladesh

The World Bank Group