EXECUTIVE SUMMARY

This study brief us the effectiveness and application of e marketing in Pakistan and also highlight

the emerging trends of usage of internet in Pakistan. Marketing has become an essential part to

do business effectively. Marketers use various techniques to disseminate its value to customer.

Predominantly few years back marketers were relying over the traditional ways of marketing like

commercials on television, ads in magazines, posters, broachers, trade shows and etc in order to

attract potential customers. But revolution in ICT has changed the way of performing business

activities, now businesses are moving towards E marketing platforms to cater its customer by

joining together both traditional and e marketing. This paradigm change is due to the customer

expectations and living standards, people are approaching brands via internet and now

consumers are marketing to consumers by exploiting various internet platforms and it also

provides extreme convenience in purchasing process. Therefore sensing the austerity of need and

environmental change now the companies are shifting towards e marketing platforms, it doesn’t

only benefit customers but it provides various advantages to companies as well in terms of its

reach to other part of the world, providing large scope of products, enhancement of brand equity

by providing good customer experience and cluster of values, companies can get demographics

of customers of its target segment and then they can judge the effectiveness of activities.

Therefore companies in Pakistan are also showing interest towards the benefits of e marketing

because people of Pakistan is showing increasing trends in using the internet, social media and

even making business transaction has raised from last years. Use of internet for marketing will

rise in future which will bring and stimulate companies more towards E marketing.

~ 1 ~

Introduction

Everyone is doing marketing either formally or informally. Real marketing concept prevailed in

1950s when the businesses shifted to the customer oriented, “sense and respond” philosophy.

Marketing is an idea to satisfy the customer needs and desires by mean of products and services

and the cluster of things that are associated by creating, delivering and finally consuming it.

Marketers need to use various techniques to promulgate its products and services in the market in

order to provide awareness about products or services to people. Marketers use various direct

and indirect attracting and selling methods in order to catch the prospects and then make them as

a loyal customer by providing them lifetime value. They exploit both print media and electronic

media channels for advertising campaigns such as ads in newspapers, circulate broachers and

flyers, in store promotions, commercials on televisions and hold trade shows. Marketers use

these channels according to their customer segments and type of product that demands such

marketing campaign. In Pakistan people still have an attitude to visit physical locations to buy

things that the products are only available in the market place. Therefore companies need to

ensure the availability of products or services at market place. But these conventional marketing

tools cost them high in order to take airtime on television, space in the news paper and the bill

boards over the roads to get the attention of the people. These tools do lack to provide quick

response regarding the product and service that the customers have experienced and then

marketers need to launch separate efforts and put some systems in place in order to get feedback

in terms of product customization and flaws in the product. Now world has been globalized and

free market economy where companies need to expand their operations to sell their products in

other countries. Therefore they sometime need to do heavy investment for effective operations or

to run promotional campaigns to give rise to sales or to enhance brand equity.

But now it has become easy, efficient and effective as well because revolution in ICT

(information communication and technology) sector has transformed the way of performing

business activities. Companies in Pakistan are moving towards digital or electronic means to

carry out their business operations as people of Pakistan have shown considerable interest

towards internet not only just, to get information but also to sharing and exchanging ideas or

contents and to make sale or purchase decisions that is E commerce and for cost and time

effectiveness as well. Although in Pakistan, internet users penetration is too low- close to 11 %

~ 2 ~

of total population but it has increased remarkably in past two to three years. Nowadays, we are

witnessing that there are lot of web sites where products are being sold like one of the top sites

are in terms of sale and purchase “OLX” and then “EBAY” these are getting an impressive

response by the public. The same consumer behavior is seen over Social Media as well where

people are sharing and conversing about the brands with each other. Therefore, companies feel

that it is need of time to integrate digital marketing with traditional marketing. This is one reason

why we see E-Marketing departments in different organizations.

Conventional marketing

It refers to any type of advertisement, promotion and campaign that has been implemented by

many companies and is still in use. It is more of push process where marketer pushes its product

or service towards its target audience through advertisements on television, radio, ads on

newspaper or magazines, broachers, trade shows, direct mail and etc.

E marketing

It refers to use of modern technologies (computers, smart phones and tablets) and new mediums

such as websites, advertisement banners, blogs, social media, SMS and through E-mail to sell

product or services and to engage with customers and its business partners.

Some of the key objectives to do e marketing

Market presence

Stimulate sales

Customer experience

Value proposition

Brand equity

~ 3 ~

Scope of the study

In this report we intended to find out the effectiveness and application of e-marketing in

businesses as compare to conventional marketing. Our research covers the service sector

companies. Selected companies are nationals and multinationals which operate in Pakistan.

Method

This study is based on qualitative research. Information is collected form textbooks (marketing

management Philip kotler and services marketing), websites, articles and interviews conducted

by professionals who are working over e marketing in the airline, banking and garments

industries. We have taken three interviews from professional of e marketing of each company

operating in the airline, banking and garments industries. Some quantitative data such as

statistics has also assembled from word smith consulting service.

Literature review

Hanieh Mirzaei (January 2012, Vol. 2, No. 1) he explained in his article that the uprising of ICT

information and communication technology has changed the way of doing business. Internet

provided fastest marketing opportunity to business due to the rapid expansion of internet and

electronic channels. Nowadays we usually witness ads run over the internet in order to persuade

people for goods and services. This is the most suitable, cheaper and result effective. E

marketing methods are driving the business to success. Mr. Hanieh Mirzaei cited in his research

that Dave Chaffey (2002) defines E-marketing he says that companies apply digital technologies

with an aim to achieve profit, preservation of customers through consumer knowledge better

(attitudes, behavior, loyalty derivers and values) and then transport combined communications

and online services that match their personal needs.

Gandolfo Dominici (2009) explains in his research about the marketing mix paradigm with

digital context. It shows that progression of businesses created a need to review marketing mix.

In the recent times businesses has encompassed digital marketing techniques in its business

activities. Therefore does earlier marketing mix paradigm has been obsolete to tackle the need of

an hour or does it require modification of new trends. This research highlights two perspectives

“revisionists” and “conservatives”.

~ 4 ~

Revisionists’ focuses on the austerity of fundamental review of marketing mix, they have an

argument that it is more internally oriented and this brings to less customer orientation and then

results to inadequate attention to rapport with consumer (Moller, 2006; Popovic, 2006,

Constantinides, 2002 a, b). Schultz (2001) he says that it’s a time of external orientation that

considers connections.

Conservatives says that adaptability of 4Ps with new trends cannot be ignored. Bhatt & Emdad

(2001) viewed the authorization of 4ps since the implicit value chain is modifying internally each

P by adding new directions: Customized information in product, transparency and

personalization of all Ps.

Varfan, Mona (2008) she concluded in her research that both marketing approaches have benefits

and by exploiting those advantages of both according to organizations goal is regarded as the

best way to do marketing.

Mehrdad Salehi (2012) explains in his article that internet is getting enormous interest as the

revolutionary marketing tool. It has redefined the world communication and shopping nature. It

provides convenience in terms of less energy spent, cost depletion, no immense crowd and

infinite time and space therefore, it has been acknowledged as a substitute for businesses and

customers to shop online instead of visiting the stores.

Bringing all these point of views into our consideration we are going to discuss the application of

e marketing in companies that are operating in Pakistan and its effectiveness.

~ 5 ~

These are the following stats that reflects the usage of internet in Pakistan

25 million

34% 28%

internet users

facebook users

In Pakistan there are 25 million internet users. Among these internet users’ maximum share

belongs to facebook users that is 34% of the total and second highest share belongs to other

social media websites that is 28%. Source: wordsmith consulting services.

27.66%

22.70%

17.90%

18%

Usage trend of top sites

facebookyahoo.comlive.commsn

~ 6 ~

This graph shows the highest usage trend of websites in Pakistan. Again facebook takes the top

place among all the sites that are mentioned in the graph. Source: wordsmith consulting services.

31/12/2008 31/12/2009 31/12/2010 31/12/2011 31/12/201205

10152025

3035404550

Increase in use of social media

Column1

years

chan

ge in

%

This graph shows the Social media growth in Pakistan. It has shown 50% increase in growth in

2012. Source: wordsmith consulting services

Digital presence

Leading the race of fans

This image tells us the most popular sites in terms of fan following on facebook. Source:

wordsmith consulting services

~ 7 ~

Nokia

OLX

ufone

1 million facebook fans

DISCUSSION

Application of e marketing in companies that are operating in Pakistan

This study involves following three sectors

Airline industry

Banking industry

Garment industry

2007 2008 2009 2010 2011 20120

2

4

6

8

10

12

corporate digital marketing

Column2

years

chan

ge in

%

This tells us the growth trend of Digital industry in Pakistan that has shown 45%increase from last year. Source: wordsmith consulting services

~ 8 ~

Airline Industry

Pakistan is in the list of developing countries, where e-marketing is started in late 2004.

E-business is one of the growing business in Pakistan as time passes people will get more

awareness about the technology and e business , the profit of the organization who involve in e-

business definitely increase.

Whenever we talk about air line industry there are two prospects to talk about that is B2B and

B2C.

Business to Business

In Pakistan mostly air lines do not sell their services directly to customer, they provide services

to the customer through sales agents, sale outlets and travel agencies where then customer visits

and gets the services. The traditional way of marketing was used to promote services and to

make a better relation with the travel agencies, the common practice was that the marketing

manager visits himself for the business purpose to inform about the new services, promotion for

passengers or about any new flight, but with the emergence of e-marketing it has become easy

for them to do such activities efficiently. Mostly air lines in Pakistan somehow shifted towards

the e-mail marketing, they use E-mail mode of marketing for the b2b, according to the research

only 10 % usage of E-mail marketing and remaining 90% still use conventional way of

marketing. It is due to lack of information technology but in future this percentage will increase.

Business to Customer

For any organization customer is very important, as customer satisfaction dictates the success of

business .Although in Pakistan only 2% of people know about the usage of internet through

which they can book their tickets online, and remaining 98% follow the old tradition of

purchasing ticket.

But point is that how air line industry tackles these 2% community, will they satisfy the people

who use the e-services provided by the industry? Is it effective? The answer is yes,

~ 9 ~

If we talk about national air line of Pakistan that is PIA (Pakistan international airline) they

provide number of facilities in term of value add services through which customer’s satisfies.

Purchasing ticket through easy paisa. This service especially targets remote areas.

E-booking

SMS (small message service) to remind you about your flight

You will receive phone call in case of any delay in flight

Loyalty cards

PIA also focuses on frequent flyer program in which they collect all related information of

passengers and store it into data base.

Frequency of reservations

Identify which place does he/she wants to visit mostly.

Preference to fly on which class

Seats they like to set in.

Some of the common practices in airline industry

During traveling passengers get points by registration on point table (emirates) through

which we they can get discount.

In e-services we can also book our hotels directly by selecting various packages

We can also take discount by our points.

E-ticketing and reservation.

Air miles provide or executive club or loyalty program for discounts on further travel for

self and transferable to family members.

Joint program with leading hotels so that points earned by travel can be used at partner

hotel for discount and points earned by partner hotel stay can be used at travel for

discount

Special discount deals to buy discounted ticket in advance for travel dates and destination

are mentioned in campaign

Banking industry

~ 10 ~

From late 1990s till 2013 banking industry has shown remarkable growth in Pakistan in term of

no of banks operating. It happened due to the privatization of companies and government has

encouraged the foreign and private companies to commit long term resources particularly in this

sector. Banks have brought substantial innovation in their operations by making themselves

adaptable with changing market trends and by taking enhanced technological benefits. Firstly

banks were started with providing the ATM (automated teller machine) and 1 link facility in all

over Pakistan. Now they have moved ahead by keeping in view the advancement in technology

and enhancement of standard of life that can benefit both customer and business. On its

advertisement side banks are using both conventional and modern ways to promote its value and

information regarding products/services but they are more relying on conventional side. Whereas

on operational or transactional side they have transformed it from traditional to virtual internet

banking or e-banking in order to provide online banking services. Customers can now visit

websites any time to see new financial services or products. They can make financial

transactions even through web and from mobile apps. Banks provide facility to its customer to

pay its utilities through mobile phone or through laptops at anytime from anywhere.

Some of the facilities are being provided by almost all banks that are operating in Pakistan.

Immediate and schedule transfer of funds between your account as well to other account.

Payments of utilities

Balance inquiry and Mini statement of each of listed accounts

Bulk salary transfer for corporate customers.

Inter bank funds transfers

Mobile recharge facility for all mobile companies.

Mostly banks in Pakistan are driving its customers through websites, E-mail and through mobile

banking. They generate SMS/E-mail regarding an update but still they didn’t introduce smart

phone app except two banks that have introduced such service till now.

These are the following two banks.

~ 11 ~

Faysal bank

Standard chartered banks

Faysal bank limited

They have launched a new mobile app named “mobit”. It’s a mobile banking facility that gives a

customer convenience to control and manage finance while he is on the go, anywhere and

anytime. Customers only need to have a technological device such mobile phone, laptop and

desktop with internet access.

Standard chartered bank

Standard chartered bank has come up with a new service by providing new smart phone app

named as Breeze mobile. It provides ease to customers by developing innovative ways of

transactions. Breeze provides following services.

Transfer funds and pay bills.

Check your account balance and transaction history.

Find the nearest ATM or bank branch.

No new password to remember.

User friendly.

Garment industry

Fashion and style is growing at its peak in Pakistan. We are experiencing new, dynamic and

elegant trends in every coming season. Pakistan is famous for its textile industry. It takes

maximum chunk of exports of Pakistan that’s why it is the 8 th largest exporter of textile products

in Asia. It contributes 9.5% to the total GDP and it is the 4 th largest producer of cotton with 3rd

largest spinning capacity in Asia after china and India. But with all other advantages it is a fact

that we only contribute 1% in the total global textile trade according to express tribune. However

this sector has potential to grow further and that shows the significance of this sector in Pakistan.

To bring this industry at this stage, it involved diligent effort by some major stakeholders such as

Nishat group, Crescent group, Chenab group, Sitara group and Gul ahmed/Al karim group. They

are also called as the Giant of this sector.

~ 12 ~

$523.90 M

$49.77 M

total GDPtextile contribution

This graph is showing the total GDP of year 2012 amounted $523.90 million. And red color shows the textile contribution to GDP, amounted S49.77 million that is the 9.4% of total GDP. Source: Express tribune

Some of these giants have moved forward by introducing readymade garments and some brands

like” chen one”, “Gul ahmed” and “nishat linen” are renowned ready to wear garment brands.

There marketing departments are integrating conventional and modern means to propagate its

product or services. Garment brands mostly use social media, SMS and links on other websites.

Gul ahmed generates a text message to its customer about the new arrival and promotions at eid

or at any other event. Whereas we can find Nishat linen ready to wear garments over other links

or on other facebook pages like style.pk. Garment industry is exploiting social media the most,

to attract customers particularly facebook, where we do see web pages of garments brand like

Cambridge, bnb accessories, the most known daraz.pk. At these web pages we can find the

products of various known brands like charcoal, bonanza and etc. People are showing interest

towards online shopping. Almost every known garment has facebook page just to be present at

every place where customer expects from them and where ever the competitor is. It is not with an

intention to make sale transaction from online, one of the reasons to be at facebook is for the

brand enhancement.

FINDINGS THROUGH INTERVIEWS

~ 13 ~

1st interview

We have conducted an interview from marketing professional at MCB head office Islamabad.

Here is the summary of interview.

MCB is promoting its products/services through both ways. In conventional marketing they

mostly use ads in newspaper and at billboards whereas website and mobile banking are being

mostly used as e marketing platforms from B2C market and E-mail is in use for B2B market.

Objectives in order to utilize e marketing channels are that it reduces cost, enhance efficiency,

can get quick feedback from customers and provides better and meaningful insight of customers.

According to them MCB mobile banking has found the most effective in achieving the require

objectives and around 7000 mobile users has been increased from last three months. E marketing

is very much important for businesses nowadays because competition is so high that you cannot

survive without innovating or exploiting various opportunities that are prevailing in the market.

In future they have planned to focus on facebook, they already have facebook page but they are

not active so much over it.

2nd interview

After taking an interview from assistant sales manager Junaid khan and senior sales promotion

officer Saqib Chaudhary in PIA, Who have explained very well and make us understood the

effectiveness of traditional marketing or e-marketing in airline industry. PIA is using both ways

of marketing, but in e-marketing they mainly focus on websites, E-mail and SMS. According to

them after an implementation of the e-ticketing, where expenses of airline company decreases

and also provide comfort to the customer. According to Mr. Saqib only 10 % out of total target

market able to benefit from this channel but in future this percentage will increase to 25% at

the end of 2015.

More over they will emphasize to market their services through social networks where it is

easier for customer to get information or keep him/her self up to date about any promotion

and hot deals. On the question about conventional marketing , they replied that currently they

still focus on traditional ways of marketing because of the trust factor and the illiteracy rate due

to which it is difficult for customer that how to get benefited from e-services.

~ 14 ~

3rd interview

After conducting an interview at Gul Ahmed ideas store at Jinnah super Islamabad. We came to

know that they have planned their marketing campaign by integrating both conventional and e

marketing. In conventional marketing they mostly use billboards and also introduce seasonal

magazines in order to communicate products to the prospects. On the e marketing side, they have

website and facebook page but their main focus is on websites and on generating SMS to its

frequent buyers. Their objectives are to enhance the brand value and make sure the availability at

every place where customers expects them and as we all know that there is an immense

competition in garment industry therefore they have to be present at each possible venue. They

are receiving good response through SMS from customers. They have a view that yes e

marketing has significance in order to achieve business goals and in future its importance will

increase but as we are so much renowned it this industry, we have positioned ourselves as one of

the top brand in our customers mind and the industry in which we are working it just needs to

communicate our promotions or new arrivals and customers are getting persuasion through our

traditional way of marketing, moreover customers are more concerned about e transaction rather

than e communication therefore in future we are focusing on making e transaction through

loyalty cards.

EFFECTIVENESS OF E-MARKETING

Concept of e marketing

~ 15 ~

Source: wordsmith consulting services

Main objective of e marketing is to enhance return on investment (ROI)

Reach

World has become globalized, companies wanted to expands its business to other countries in

order to tap and attract new customers for various temptations therefore internet provides

business an easy access to overseas markets with cost effective while traditional marketing limits

or hinders a company to reach there. E marketing has also considered beneficial for SMEs (small

and medium size enterprises that opens new venues for them.

Scope E marketing widens the range of products and services for the marketers to offer in a wider range

of ways. It provides an opportunity to marketer to offer upsell and cross sell techniques.

InteractiveThe major advantage of e marketing is that it provides two way communication channels where

company and customer converse with each other, exchange ideas through which company can

get response from customer regarding the product or service then make it according to customer

expectation.

Immediacy

~ 16 ~

Share information

Focus on content

Know

Where

Your customers

are.

Engage

Converse

Connect

E marketing has strengthened over traditional marketing that makes immediate impact from

hearing it to actual acquisition. It speeds up the consumer buying decision making process by

reducing the gap between provided information and obtained consumer reaction.

Demographics and targetingIt’s a dream of marketers to have demographics of internet users. They are considered to have

high buying power and are inclined towards middle class of social classes. It provides the best

place to target the niche market. Marketers know where to look in order to attract desire

audience. Content of message plays an effective role when it is presented at target group that

should be attractive. Hence e marketing provides such opportunities.

Adaptability and closed loop marketing

E marketing provides close loop marketing1 through which marketers can be more vibrant in

adapting the customer needs and wants by continuous tracking of response and effectiveness of

campaign.

With e marketing, responses can be analyzed in real time and campaign can be twisted

continuously. E marketing provides maximum marketing efficiency that creates more

opportunities to get hold of strategic competitive advantage.

The combination of all these factors improves ROI and finally you will retain and attain more

customers.

CONCLUSION

1 The constant measurement and analysis of result of marketing initiatives

~ 17 ~

After comprehensive study and conducting interviews authors have come to the point that with

rapid increase in the interest and attractiveness of ICT in the people has changed the conduct of

doing business. It has observed that online shopping serves convenience to people in terms of

time, cost and energy rather than they go to retail shop. Keeping in view the need of internet

marketing in nowadays has compelled the companies to integrate e marketing with traditional to

provide value and promote their product and services. E marketing benefits both consumer and

company. In Pakistan now each sector either its service or goods manufacturer moving towards

to e marketing to carry out its business in better way. By integrating both e marketing and

traditional marketing each company is providing comfort to its valuable customers in different

ways depending upon the target segment and nature of the product in order to avail its value.

According to our finding through interviews from multiple sectors like services and

manufacturing they all are utilizing websites and mobile banking or SMS the most as e

marketing tool particularly for B2C and E-mails for B2B. The main motivation behind the e

marketing efforts is to reduce cost, efficiency and get feedback from the customers. They have

point of view that it has now become pertinent for the companies and this trend will grow further

in future. It provides significant benefits to organizations as well such as reach to global world,

scope of product and services, ease to collect customer related data, can enhance customer

experience and cluster of values to customers, it is more adaptive with environmental change and

companies can measure the performance of activities. Lastly it is sure that e marketing trends in

Pakistan will increase further in coming future and companies need to combine both marketing

ways together in order to fall according to the expectations of our customers.

APPENDIX

~ 18 ~

Interview Questions

1. Which method does your company use the most in conventional marketing?

2. Is your company doing E marketing

3. When you have started the E marketing as your company’s marketing tool?

4. Which E marketing channels do you currently utilizing the most?

5. What are the objectives in order to use E marketing tools?

6. Which platform has been the most successful at achieving the objectives

(Like attracting more customers or enhance brand equity)?

7. What is the percentage of your company marketing effort is over the E marketing in

comparison of traditional marketing?

8. Which E marketing platform does your customer use?

9. Which form of marketing (either conventional or E marketing) provides you better

insight of your customer?

10. What is the percentage of your customers that avail your service and make transactions

through electronic means?

11. How do you measure the effect of social media marketing on your business?

12. How E marketing is beneficial for your organization?

13. Which E marketing channels do you plan to focus on more in 2014?

Bibliography

~ 19 ~

http://www.wordsmith.com.pk/social-media-trends-in-pakistan/

http://marketingtenerife.com/market-sectors/marketing-to-tourists/a-brief-history-of-online-marketing/

http://www.smartinsights.com/online-brand-strategy/international-marketing/how-social-and-digital-marketing-has-impacted-global-branding/

http://ntnu.diva-portal.org/smash/record.jsf?pid=diva2:121411

http://weeklypulse.org/details.aspx?contentID=2801&storylist=16

http://www.quirk.biz/resources/88/What-is-eMarketing-and-how-is-it-better-than-traditional-marketing

http://beta.dawn.com/news/764138/traditional-vs-conventional-marketing

http://mdh.diva-portal.org/smash/get/diva2:121411/FULLTEXT01

http://www.hrmars.com/admin/pics/548.pdf%E2%80%8E

http://www.edamba.eu/r/default.asp?iId=HEJFI

http://en.wikipedia.org/wiki/Digital_marketing

http://www.smartinsights.com/%E2%80%8E

http://www.executiveboard.com/.../digital.../Digital-Evolution-in-B2B-Marketi/

http://www.socialbakers.com/facebook-pages/120812911064-mcb-mobile/in-pakistan

~ 20 ~