Noman e Commerce

8/13/2019 Noman e Commerce

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A REPORT ON

E-MARKETING PRACTICES[Bangladesh Perspective

Md. Al-Noman


2/19

Topic: E-Marketing Situation in Bangladesh

Submitted to: Md Moktar Ali

Associate Professor

Department of Marketing

University of Dhaka

Submitted by: Md Al-Noman

A! "#th atch

$oll-"#%! Section-


University of Dhaka

Date of Submission: "& November! '("&


3/19

Letter of Transmittal

"& December! '("&

Md) Moktar Ali

Associate Professor


University of Dhaka

Sub*ect: Submission of the term paper on the e-marketing practices in angladesh

Dear Sir!

+t is a great honor and pleasure for us to present term paper on this report ,as given to us as a

partial reuirement of the ./-commerce0 course in the %th semester by our honorable course

teacher)

1his report has given us an opportunity to apply our theoretical kno,ledge! sharpen our

ideas! and communication skills! make us informed about *ob market and bridge them ,ith

the real ,orld of practical e2perience! ,hich ,ill be a good head start for our future

professional career)

3our profound lecture and guideline helped us to cope up ,ith the difficulties that ,e face in

preparing this report)

4astly ,e ,ould be thankful once again if you please give your *udicious advice on our

effort)

Sincerely yours!

Md) A4-Noman

"#th atch

$oll-"#%! Section-


University of Dhaka


4/19

Acknowledgement

At first ,e ,ould like to pay our gratitude to the Almighty! ,ho helped us every time and

,as ,ith us and gave us moral support and strength every moment) 1here is an /nglish

proverb .Two head are better than one. So! no one can obtain a noble ob*ective alone)

1his term paper is an accumulation of many people5s endeavor) 6or this! ,e are indebted to a

number of people ,ho helped me to prepare this and for their kind advice! suggestions!

directions! and cooperation and proper guidelines)

7e ,ould like to pay our gratitude to all of the people ,ho helped us a lot for the completion

of this report before! during! and after the ,orking period) 7e are especially grateful to our

honorable course teacher Md) Moktar Ali for giving us valuable suggestions and support in

preparing this report) 7ithout her advice and support! it ,as totally impossible on our part to

complete this)

7e are also grateful to our friends and classmates ,ho helped us in completing this)

4ast but not least ,e e2press our gratitude to the all the individuals ,ho have helped us

directly or indirectly)


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E!ecuti"e Summar#:

1he +nternet has opened up a ne, hori8on for trade and commerce! namely electronic

commerce 9e-commerce) /-commerce entails the use of the +nternet in the marketing!

identification! payment and delivery of goods and services) 1his paper highlights the status!

statutes! potential and constraints to e-commerce development in angladesh) oth the

statutory la,s as ,ell as the challenges in implementing them are discussed) Ma*or legal!

regulatory and institutional constraints to e-commerce are identified) 1he paper also lists

specific policy changes aimed at bringing improvements to the legal and regulatoryenvironment affecting e-commerce)

Dimensions of E-Commerce

1he three dimensions of e-commerce are usiness-to-;onsumers 9';! usiness-to-

usiness 9' and usiness-to-


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government procures goods and services by inviting tenders) 1he availability of the $6P and

other relevant documents on-line provides an alternate choice) 1ransactions involving

information collection! obtaining various governmental forms! registering activities can also

be conducted on-line) 1his ,ill reduce time costs! corruption and the necessity of going

through lengthy bureaucratic procedures as ,ell as increasing transparency)

Government Legislation

An overvie, of the government trade and industrial policies as ,ell as various acts and

statutes affecting e-commerce has been presented in this paper) 6or e-commerce to develop

reuires an enabling environment that ,ould ensure easy and uick movement of inputs as

,ell as goods and services ,ithin the country and cross border trade) 1,o ma*or government

documents reflect the mood of trade and investment policy directions to be pursued in the

medium term) 1hese are the 6ive-3ear Plans and the +ndustrial Policy) 1he

6oreign Private +nvestment 9Promotion and Protection Act of ">%( guarantees legal

protection to foreign investors against nationali8ation and also indemnifies them against

losses due to civil unrest) +n the area of foreign trade! the legal frame,ork is primarily

governed by three legislative Acts: 1he +mports and /2ports 9;ontrol Act! ">?(@ 1he

;ustoms Act! ">#>@ and 1he 6oreign /2change 9$egulation Act! ">B) $evisions and

updates of these Acts are made periodically) 1he /2port Policy ">>B-'((' aims at promoting

e2ports in the regional and international markets)

1he recently passed +ntellectual Property $ights 9+P$ bill of angladesh concentrates on

soft,are copyright protection) =o,ever! e-commerce related copyright protection is not

covered in the ne, +P$) According to the /vidence Act! "%%"! a physical signature is

necessary to make any contract legal) 1his makes electronic contracts void under

angladeshi la,) ;ontract 4a, in angladesh is governed by the ;ontract Act "%B') ;ross

border contracts are legal! but a physical signature is necessary to validate the contract)

4egislation that legali8es digital certificates! electronic contracts! also needs to be enacted to

promote e-commerce)

1,o Acts play an important role in dispute settlement -- the Arbitration Act ">( and the

Money 4oan ;ourt Act ">>() 1he Arbitration Act governs the settlement of any disputes

arising from business transactions) 1he Money 4oan ;ourt 9Artha $in Adalat is an

independent *udicial body established under the Money 4oan ;ourt Act ">>( and the Money


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4oan ;ourt $egulation ">>( to recover public money loaned to individuals through public

sector financial institutions) =o,ever! the Money 4oan ;ourts are overburdened ,ith the

enormous number of cases they have to deal ,ith)

Although no la,s that directly provide for ;onsumer Protection e2ist in angladesh! certain

la,s! if implemented appropriately! can play a significant role in ;onsumer Protection) 1,o

Articles in the ;onstitution in angladesh -- Article "? and Article "% C state broad principles

regarding consumer protection) Article "% specifically includes raising the level of nutrition

and improvement of public health among the states primary duties) Article "? can be

interpreted as making the provision of basic necessities a fundamental responsibility of the

state)

Infrastructure: Status and Issues

+nternet services are directly dependent on the telecommunication infrastructure of the

country) 1he angladeshi telecommunication sector is characteri8ed by poor level of

penetration! high cost to access and a lengthy ,aiting period) Although the angladesh

1elegraph and 1elephone oard 911 continues to be a monopoly in providing basic

telephone connections! the private sector5s involvement in cellular phones and as +nternet

Service Providers 9+SP have been allo,ed) Despite the need for easy and affordable access

to +nternet services! 115s pricing and regulatory strategy on +SPs are restrictive)


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Table of $ontents

Topic Page

Introduction 07

Overview of E-marketing 09

Benefits of E-Marketing 10

E-ommerce Present !ituation in

Bang"ades#

10

$uture of E-marketing in Bang"ades# 1%

"assification of &ecommendation 1%

$uture &ecommended 1'

(overnance onstraint 1)

onc"usion 1)

&eference 1*


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%ntroduction

7ithout practical e2perience! no one can acuire complete kno,ledge) alue of theoretical

kno,ledge is insignificant! if practical e2perience is not added) +t is more reali8ed in the

study of usiness ,here practical e2perience plays an important role) achelor of usiness

Administration 9A program is designed ,ith an e2cellent combination of practical and

theoretical aspects) Students are reuired to prepare different Assignment in various courses)As the students of A to fulfill the reuirement of this Degree! ,e ,ere assigned to make a

term paper on ./-commerce0) 1o enrich our kno,ledge on /;! ,e have tried our best to use

this opportunity) After observing systematically! ,e have prepared this term paper on the

basis of our findings and observation relating to the topic)

&b'ecti"es of the Stud#:

(eneral &b'ecti"e:

1he general ob*ective of preparing this report is evaluation of different e-marketing practices

that are applied in different organi8ation and to fulfill the reuirement of our course

organi8ational behavior through gaining the practical e2perience)

Specific &b'ecti"e:

1he specific ob*ective of preparing this report is C

1o fulfill academic reuirement!

1o find out the real picture of e-marketing practices in angladesh


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1o get an overvie, of present and future situation of e-marketing in angladesh

1o dra, a comparable picture of the theoretical approach and the practical

applications)

1o gather practical kno,ledge about e-marketing

1o enrich our theoretical! and practical ability

Methodolog#:

1o make the Assignment more meaningful and presentable! t,o sources of data and

information have been used ,idely)

Source of )ata

6igure: Sources of data

oth primary and secondary data sources ,ere used to generate the report)

*rimar#:


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+n spite of having the ,holehearted effort! there ,ere some limitations! ,hich acted as a

barrier to conduct the program and for doing an empirical research ,ork! such as:

• Time and budget $onstraint:

1he study is based on the analysis of /-marketing) ut this allocated time is not enough for a

complete and fruitful study)

• Lack of E!perience:

Due to lack of e2perience! there is a chance of having some mistake in the report though best

effort has been applied to avoid any kind of mistake)

• Source Limitation:

1here ,ere not sufficient source from ,here ,e can collect the data)

&"er"iew of E-Marketing

/-Marketing or electronic marketing refers to the application of marketing principles and

techniues via electronic media and more specifically the +nternet) 1he terms e-marketing!

+nternet marketing and online marketing! are freuently interchanged! and can often be

considered synonymous) /-marketing is the process of marketing a brand using the +nternet)

+t includes both direct response marketing and indirect marketing elements and uses a range

of technologies to help connect businesses to their customers)

Different international organi8ations i)e) Ama8on! /2pedia! /F1rade and ;DNo,

transformed their business 9selling of books! travel! investments and music into online) 1hey

sa, that the system reuired a lo,est price rather than the rick-and-Mortar 9offline

retailersG companies) 1oday! the internet is mainstream in industriali8ed nations) =igh

adoption rates are occurring in the '( nations sporting >(H of all internet users and most of

these populations canIt do ,ithout the 7eb or e-mail) As ,ell! most organi8ations kno, that

they must include information technology in their marketing strategies to meet the needs of

their markets efficiently and competitively)

y June '((%! about %?H of users online are engaging in e-commerce) +n +reland! >"H

shoppers are undertaking transactions online! %#H in 1urkey are shopping online! and +ndia

and the UA/ take up the *oin third place ,here about %H of online shoppers are buying


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things online) 1hat is! %H of roughly &)'H of +ndiaIs population 97orld ank! '((()

/-Marketing made the strength of the ;ompanies transactions and efficient rather than

traditional marketing process) 1he follo,ing ,ays it made the po,er:

• Po,er Shifts from Sellers to uyers: uyers can acuisite information from any of

the ,ebpages so they are not reluctant to a particular seller)

• Market 6ragmentation: 1o create products and communication to small target groups

through cell phone! e-mail! facebook! cable television etc

• Death of Distance: +nternet makes no longer geographic location and bypass

traditional intermediaries) 1ime ;ompression: Enline stores is open 'GB)

Benefits of e-marketing:

E-Marketing provides a researc# resource for +u,ers se""ers and "earners.

1. It e"evates and e/tends strong e/isting +rands.

%. It is cost-effective for customer se"f-service and ongoing +usiness.

'. It a""ows unprecedented one-to-one communications and d,namic persona"iation

during an on"ine session.

). It opens t#e market to new groups of customers.

*. It customies powerfu" e/tranets to t#e compan, and individua"s.

!" It offers un"imited rea" estate on t#e e+ so prospects can dig deeper and marketers

can present items t#at wou"dn2t +e cost effective in print.

7. It a""ows for profita+"e strategic +usiness a""iances and affi"iations.

3. It offers uni4ue wa,s to present information and increase sa"es and profits.

E-commerce *resent Situation in Bangladesh:


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No,adays the online possibly took for a huge marketplace possibly able of dealing the

population of the ,hole ,orld) 1his is the uestion ,hy come /-;ommerce is so magnetic

for a lot of traditional businesses) /-commerce is modifying the techniue people do

business) y large corporations to small industries! businesses are going a,ay internet!

opening their products and service offers to ne, groups of people ,orld) At that place! there

are several paths to get your products and services internet! from simple shopping ,eb site to

high-end database driven! data-capture and online credit card confirmation solutions)

+n angladesh! there is a great deal of interest in e-business@ ho,ever! due to various

economic! infrastructural and legal reasons it has not spread) Most important companies!

associations! chambers and government offices have set up ,ebsites) 1hese sites mainly

provide information about the organi8ation! and its products and services) 1here are very fe,

sites ,here financial transactions can be completed) Main reasons for lo, e-commerce

transactions are absence of legal frame,ork for completing an electronic business or financial

payment system! lo, +nternet usage due to lack of adeuate telecom facilities! and overall

lack of confidence in the security and reliability of e-commerce transactions)

• angladeshi internet shopping as the internet becomes more usable to angladesh@ itIs

clear-cut that online sales ,ill spring up) 1his is ahead to more accessibility of online

buys) ;ompetitor ,ill become fast-gro,ing as online shopping raises and so

angladeshi retailers shouldnIt be left alone) 1he online retail industry is getting more

significant as the internet carries on rising in signification in angladesh) angladesh

internet site Directory for Enline Shopping especial ,holesale K retail choice of e-


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gro,th 9Morath '((() 6uture of /-;ommerce in angladesh can be suggested from the fe,

classification:

• '; /-;ommerce

•' /-;ommerce

• '< /-;ommerce

$lassification of ,ecommendation

B$ E-$ommerce

'; ecommerce ,ould not be used much in the near future in angladesh effectively

ecause of lo, per capita income! lack of infrastructure and proper legal environment and

trust bet,een business and consumers) '; for cross border trade is also limited moreover

factors ,ill discourage'; such as difficulties in accessing international credit cards!

restrictions on foreign currency remittance! informal payment and delays at customs

clearance even for small value and uantity items)

BB E-$ommerce

' /-;ommerce is highly emerging in angladesh because of the already e2istence of

$eady-made


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ecause of government buys goods and services from the private sector! it could invites

tenders by offering $euest for Proposal5 9$6P and other relevant documents on-line)

$eduction of time costs! corruption and the lengthy bureaucratic procedures as ,ell as

increasing transparency ,ould occurred by on-line 1ransactions involving information

collection! obtaining various governmental forms! registering activities)

So the government needs to ,ork out a realistic e-commerce la, ensure the reliable internet

connection for successful e-commerce business! it should also collaborate ,ith the

commercial sector! ,hich has fle2ibility and potential for accepting ne, technologies)

+uture ,ecommended Sectors

6uture sectors should be recommended to use /-;ommerce as the most profitable and cost

effective e2change system to ensure competitive advantage)

i Public anks: ecommerce is already e2ists in banking sector in our country but

most of them are private so public banks should embrace e commerce)

ii Soft,are +ndustry:


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'((( and '("( respectively 9N1P>%) 1his has been a consistent obstacle for the gro,th of e-

commerce) +nternet services are directly dependent on the telecommunication infrastructure

of a country ,hich is characteri8ed by poor level of penetration! high access cost and a

lengthy ,aiting period in our country)

oice over +nternet ,hich is a proven important catalyst in the promotion of e-commerce! is

prohibited in angladesh@ there is lack of hard,are and soft,are investment and 4ack of

technically kno,ledgeable personnel ,ith minimum ,eb user)

Trade $ommerce %ssues

;onducting business at the ;hittagong port is comparatively more e2pensive because of

freuent strikes 9locally kno,n as hartaals and arbitrary ,ork stoppages by the trade unions)

Definitions of deductible business e2penses are strict and not clear) 1a2 system is not client

friendly! appeal procedures are lengthy! high +nterest rate on e2port loans and high corporate

ta2es e2ist resulting in ,idespread ta2 evasion) ;ustoms clearance and procedures continue

to be burdened ,ith delays and informal payments)

(o"ernance $onstraints

Poor governance has an indirect effect on e-commerce development) angladesh has a knotty

problem of poor governance ,hich has been manifested in the form of continued active

involvement of politicians and public officials! in adopting unfair business practices collusion

,ith the private sector so institutions become ,eak and legal and regulatory reforms are

difficult to update and implement)

=igh cost of doing business characteri8ed by bottlenecks! bureaucratic red tape and

corruption make the efficiency gains from e-commerce becomes mute) Small domestic

market! poor infrastructural facilities! ,eak governance and poor la, and order conditions are

the main reasons for poor 96D+ in angladesh)

$onclusion

Despite being a poor country! selected segments of the angladeshi business community has

embraced technology ,ith reasonable success) 1he 6acsimile in the ">%(5s and mobile

telephones in the ">>(5s populari8ed modern technology in the mass market) Personal

computers and the +nternet are also emerging as day-to-day business tools) 1hese positive

indicators are favouring the prospects of e-commerce in angladesh) 1he focus of this paper

,as on the current state of the regulatory environment in the financial and technological

sectors of angladesh) Necessary reforms in order to introduce e-commerce have also been

suggested) 4ack of a,areness among the policymakers has been identified as the ma*or


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deterrent to introducing e-commerce) ;onventional understanding of payment mechanisms

raises false alarms against the flight of capital if e-commerce is implemented

,eferences:

A8ad Dr) A) L)! Dr) M) M) =) Joarder and Md) +bal! ">>#! !ummar, of &eports on 5rugua,

&ound 6greements and &e"ated Issues Ministry of ;ommerce! >') ircu"ar 8o. *0 6oreign /2change ;ontrol Division! angladesh

ank! ">>' Dhaka)

angladesh ank! $oreign E/c#ange (uide"ines #apter %0 angladesh ank!

Dhaka

Lhan! Abu Saeed! ">>>) (ovt (ui""otines: Te"ecom &egu"ator 1he 6inancial/2press)

Lhan! Abu Saeed! Undated) 6"t tr" and e"ete; &aspit IPO ontrovers, !ends

5nwe"come !igna"s to t#e apita" Market 1he 6inancial /2press! +nternet /dition!

?")

Lhan! Abu Saeed! Undated) Te"ecom &egu"ators Independence; In !earc# of !anit,

1he 6inancial /2press! +nternet /dition! ?(?)

$ahman Mustafi8ur! ">>&! E/port Performance Possi+i"ities and onstraints; Production

and Market Issues University of Dhaka for 7 Study on angladesh)

Syed! Abdus Sattar! ">>) !trateg, $ormu"ation < !upp", $actors for !oftware Industr, in

Bang"ades# UNDPG UN+DE! Dhaka)

Ullah! Amin and Siddiur $ahman Mia! ">>%) T#e Bankruptc, 6ct and &egu"ation 1997 and

t#e Mone, =oan ourt 6ct and &egu"ations 1990 angladesh 4a, ook ;ompany! Dhaka)

7orld 1rade Ergani8ation! '((() Trade Po"ic, &eview Bang"ades# April)

Bang"ades#.

1he 7orld ank! '((() >Bang"ades# Trade =i+era"iation; Its Pace and Impact? Poverty

$eduction and /conomic Management Division! South Asia $egion! 6orthcoming publication! 7ashington D) ;)


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1he 7orld ank )

1he 7orld ank! ">>>) Bang"ades#; @e, #a""enges for t#e 8e/t Mi""ennium

7ashington D;)

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