A Project on Digital Marketing Initiatives and E-commerce Perspectives in Bangladesh.

I
A Project Report
On
“The State-of-Art of
Digital Marketing Initiatives and
E-commerce Perspectives in Bangladesh:
A descriptive study in the context of different
platforms (B2C, C2C etc.).”

II
A Project Report
On
“The State-of-Art of
Digital Marketing Initiatives and
E-commerce Perspectives in Bangladesh:
A descriptive study in the context of different
Submitted To:
Submitted By:
Submission Date:
26 September 2016
UNIVERSITY

III
Letter of Transmittal
September 26, 2016
To
Subject: Letter of Transmittal
Sir,
With due honor, I am wishing to inform you that it was a matter of great pleasure as well as
learning to prepare a report on “The State-of-Art of Digital Marketing Initiatives and E-
commerce Perspectives in Bangladesh: A descriptive study in the context of different
Actually I enjoyed more in preparing this report. I had to work hard to prepare this report. So I
would highly oblige if the content of the report has been acceptable to you.
Though I have put my best efforts yet it is very likely that the report may have some mistakes and
omissions that are unintentional. So, we hope that the report will worthy of your consideration.
Truly yours,
………………………
Name

IV
ACKNOWLEDGEMENT
I would like to convey my thanks to a number of persons who helped me in completing this
report.
First of all, I am grateful to my respective Course Instructor XXXXXXXX for his guidance,
valuable & thoughtful comments, and suggesting. I am very grateful to him for giving me
inspiriting and encouragement throughout my study. However, all its limitations are considered.
And also I would like to convey my thanks to people providing me with valuable information that
was very much needed for the completion of this project.
Despite my sincere efforts, there may appear some shortfalls in the report. I apologize for any
such unintentional errors.
………………………
Name

V
CERTIFICATION
This report is prepared by using the relevant study information and assumptions related to the
assigned topic written by, XXXXXXX student of BBA of University, has been endorsed as it is
acceptable.
………………………………….
XXXXXXXXXXXXXX

VI
EXECUTIVE SUMMARY
This report explains about the current scenario of e-Commerce in Bangladesh and digital
marketing in present time. This report will help the reader to get an idea about the Industry of e-
commerce, about digital media, concepts of digital marketing, Steps and Consumer buying
behavior in the digital era. After reading the whole report the reader can able to understand the
future potential and opportunity of e-commerce business and the need of digital marketing.
Title of the project and objectives of the project is to know how to establish an e-commerce
business and how to promote it by digital marketing. It will also help to understand the change in
consumer buying behavior in digital era.
In present there are many well established e-commerce companies in Bangladesh with different
types of product lines and services. With the increasing diffusion of ICTs, more specifically the
Internet, the global business community is rapidly moving towards e-Commerce. International
organizations such as UNCTAD (United Nations Center for Trade and Development) and WTO
(World Trade Organization) have, over the last several years, put much emphasis on the
importance of e-Commerce for developing countries. UNCTAD has special programs to facilitate
developing countries to transition into e-Commerce. The WTO has also developed rules and
guidelines for global e-Commerce transactions.
Main findings of this project are e-commerce business is now one of the most emerging and
potential business concepts for Bangladesh. The customers Bangladesh are highly information
seekers. They collect more information about a product before buying it. And buying a product
from home is getting popularity day by day. Even the existing brands are getting more touch point
to reach their target group in this digital era. More details about findings are given in this report.
This report indicates that the future of marketing is in the hands of digital. I conclude my research
by quoting again that ―every brand has to come online to sustain in the market‖.

VII
Table of Contents
Part 1..........................................................................................................................................................1
1. E-Commerce in Bangladesh....................................................................................................................2
1.1. E-commerce Concept .....................................................................................................................2
1.1.1. Business-to-Business (B2B).....................................................................................................2
1.1.2. Business-to-Consumer (B2C) ..................................................................................................2
1.1.3. Consumer-to-Consumer (C2C)................................................................................................3
1.1.4. Consumer-to-Business (C2B) ..................................................................................................3
1.1.5. Business-to-Administration (B2A) ..........................................................................................3
1.1.6. Consumer-to-Administration (C2A)........................................................................................3
1.2. History of E-commerce in Bangladesh............................................................................................4
1.3. Current Scenario of Supportive Infrastructure in Bangladesh .......................................................6
1.3.1. Bangladesh Key Indicators......................................................................................................6
1.3.2. Telephone Density..................................................................................................................6
1.3.3. Usage of Computer in Bangladesh .........................................................................................6
1.3.3.1. Use in agricultural sector:...................................................................................................7
1.3.3.2. Use in IT sector: ..................................................................................................................7
1.3.3.3. Use in medical science........................................................................................................7
1.3.3.4. Use in publication sector:...................................................................................................7
1.3.3.5. Use in education sector:.....................................................................................................7
1.3.3.6. Use in office activities:........................................................................................................7
1.4. The Internet in Bangladesh.............................................................................................................7
1.5. E-commerce Practice in Bangladesh ..............................................................................................8
1.6. E-Commerce payment solutions: ...................................................................................................9
Part 2........................................................................................................................................................10
2. Digital Marketing..................................................................................................................................11
2.1. What is Digital Marketing? ...........................................................................................................11
2.2. Digital marketing channels...........................................................................................................11
2.2.1. SEO (Search Engine Optimization)........................................................................................11
2.2.2. SEM (Search Engine Marketing) ...........................................................................................11
2.2.3. SMM (Social Media Marketing)............................................................................................11

VIII
2.2.3.1. Facebook Marketing.........................................................................................................12
2.2.3.2. Twitter marketing.............................................................................................................13
2.2.3.3. Linked in Marketing..........................................................................................................14
2.2.3.4. Pinterest ...........................................................................................................................14
2.2.3.5. Instagram..........................................................................................................................14
2.2.3.6. Google +............................................................................................................................14
2.2.3.7. YouTube............................................................................................................................15
2.2.4. ODA (Online Display Ads) .....................................................................................................15
2.2.5. MMT (Mobile Marketing).....................................................................................................15
2.2.6. EMT (Email Marketing).........................................................................................................15
2.3. Business Development Process Flowchart...................................................................................15
2.4. Internet Marketing Tactics ...........................................................................................................17
2.4.1. Search Engines and Directories: ...........................................................................................17
2.4.2. E-zines (Online magazines):..................................................................................................18
2.4.3. E-mail:...................................................................................................................................18
2.4.4. Affiliate Marketing:...............................................................................................................18
2.4.5. Banner Advertising: ..............................................................................................................18
2.4.6. Purchasing Advertising: ........................................................................................................19
2.4.8. Sales Promotion:...................................................................................................................20
2.4.9. Promotional Publications: ....................................................................................................21
2.4.10. Subscriptions: .......................................................................................................................21
2.4.11. Controlled-access Web pages:..............................................................................................21
2.4.12. Resellers:...............................................................................................................................21
2.4.13. Public Forums: ......................................................................................................................21
2.4.14. E-mail Links:..........................................................................................................................21
2.4.15. On-line Surveys:....................................................................................................................21
2.4.16. Virtual Malls:.........................................................................................................................22
2.4.17. Measurement:......................................................................................................................22
Part 3........................................................................................................................................................23
3. Budgeting:.............................................................................................................................................24
3.1. Budgeting Factors:........................................................................................................................24

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3.2. Example of expected costs for a small to medium sized business:..............................................24
Part 4........................................................................................................................................................26
4. Interaction Between Internet and Traditional Marketing:...................................................................27
4.1. 7 P's of Marketing on the Internet ...............................................................................................27
4.2. Understanding the Internet Customers .......................................................................................28
4.3. Critical Success factors in E-Marketing.........................................................................................29
Part 5........................................................................................................................................................32
5. Constrains and Overcome of E-commerce implementation................................................................33
5.1. Constrains of E-commerce implementation in Bangladesh .........................................................33
5.2. Overcome of E-commerce implementation in Bangladesh .........................................................33
5.2.1. Human Resource Development................................................................................................33
5.2.2. Financial System .......................................................................................................................34
5.2.3. Telecommunications ................................................................................................................35
5.2.4. Methodology ............................................................................................................................35
Part 6........................................................................................................................................................37
6. Case Study on E-Commerce Business...................................................................................................38
6.1. Case Study on Bikroy.com (C2C)...................................................................................................38
6.2. Case Study on Kaymu.com.bd (B2C).............................................................................................39
Part 7........................................................................................................................................................40
7. FINDINGS ..............................................................................................................................................41
Part 8........................................................................................................................................................43
8. CONCLUSION ........................................................................................................................................44
Part 9........................................................................................................................................................45
9. REFERENCES:.........................................................................................................................................46

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1.E-Commerce in Bangladesh
1.1. E-commerce Concept
E-commerce is a narrower part of e-business dealing with the purchase and sale of goods and
services over the internet, including support activities such as marketing and customer support.
The ability to made transaction for personal or professional use over the internet is known as
electronic commerce or e-commerce (Coursaris, et al., 2003). Chaffey (2007) defined e-
commerce as ―The exchange of information across electronic networks, at any stage in the supply
chain, whether within an Organization, between businesses, between businesses and consumers or
between the public and private sector, whether paid or unpaid.‖
There are 6 basic types of e-commerce:
1. Business-to-Business (B2B)
2. Business-to-Consumer (B2C)
3. Consumer-to-Consumer (C2C)
4. Consumer-to-Business (C2B).
5. Business-to-Administration (B2A)
6. Consumer-to-Administration (C2A)
1.1.1. Business-to-Business (B2B)
Business-to-Business (B2B) e-commerce encompasses all electronic transactions of goods or
services conducted between companies. Producers and traditional commerce wholesalers typically
operate with this type of electronic commerce. Such as www.alibaba.com
1.1.2. Business-to-Consumer (B2C)
The Business-to-Consumer type of e-commerce is distinguished by the establishment of
electronic business relationships between businesses and final consumers. It corresponds to the
retail section of e-commerce, where traditional retail trade normally operates.
These types of relationships can be easier and more dynamic, but also more sporadic or
discontinued. This type of commerce has developed greatly, due to the advent of the web, and
there are already many virtual stores and malls on the Internet, which sell all kinds of consumer
goods, such as computers, software, books, shoes, cars, food, financial products, digital
publications, etc. As example: www.chaldal.com.
When compared to buying retail in traditional commerce, the consumer usually has more
information available in terms of informative content and there is also a widespread idea that
you’ll be buying cheaper, without jeopardizing an equally personalized customer service, as well
as ensuring quick processing and delivery of your order.

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1.1.3. Consumer-to-Consumer (C2C)
Consumer-to-Consumer (C2C) type e-commerce encompasses all electronic transactions of goods
or services conducted between consumers. Generally, these transactions are conducted through a
third party, which provides the online platform where the transactions are actually carried out,
such as www.bikroy.com.
1.1.4. Consumer-to-Business (C2B)
In C2B there is a complete reversal of the traditional sense of exchanging goods. This type of e-
commerce is very common in crowd sourcing based projects. A large number of individuals make
their services or products available for purchase for companies seeking precisely these types of
services or products.
Examples of such practices are the sites where designers present several proposals for a company
logo and where only one of them is selected and effectively purchased. Another platform that is
very common in this type of commerce is the markets that sell royalty-free photographs, images,
media and design elements, such as www.iStockphoto.com.
1.1.5. Business-to-Administration (B2A)
This part of e-commerce encompasses all transactions conducted online between companies and
public administration. This is an area that involves a large amount and a variety of services,
particularly in areas such as fiscal, social security, employment, legal documents and registers,
etc. These types of services have increased considerably in recent years with investments made in
e-government. As example: www.eprocure.gov.bd.
1.1.6. Consumer-to-Administration (C2A)
The Consumer-to-Administration model encompasses all electronic transactions conducted
between individuals and public administration.
Examples of applications include:
 Education – disseminating information, distance learning, etc.
 Social Security – through the distribution of information, making payments, etc.
 Taxes – filing tax returns, payments, etc.
 Health – appointments, information about illnesses, payment of health services, etc.
Both models involving Public Administration (B2A and C2A) are strongly associated to the idea
of efficiency and easy usability of the services provided to citizens by the government, with the
support of information and communication technologies. In Bangladesh there is a site
nbrepayment.gov.bd where a user can pay tax, VAT custom duties and other payments here.

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1.2. History of E-commerce in Bangladesh
E-commerce is already quite popular in Bangladesh and it is only increasing. Compared to other
countries of the world, E-commerce came at a later stage in our country but it grew very quickly.
E-commerce or Electronic Commerce is closely related to computer and Internet. If we have to
talk about the history of E-commerce in Bangladesh, then we also have to talk about the history of
computer and Internet this region. In 1853, the British established telegraph service in India. After
one hundred year Pakistan Telegraph and Telephone board was established. Radio came to
Bangladesh in 1939. Television came in 1964 and Bangladesh got its first computer that same
year. Atomic Energy Commission of Bangladesh brought the first mainframe computer IBM-
1620. This model had transistor, magnetic disk and magnetic core.
Bangladesh Agricultural University was the first educational institution in the country to use and
Radio Shack TRS-80 64K model computer. The model is still preserved in Agriculture Museum.
Still then, the use of computer was very limited because of large size and higher cost.
Computer started to become popular in the late 1980s. The printing and publication industry
embraced this technology. Publication cost decreased significantly.
Rise of computer in the 90s:
Throughout the 90s, use of computer only grew. Some of the major milestones of this decade
were:
 Internet came to Bangladesh in 1993. Initially, it was Unix-to-Unix Copy
Protocol (UUCP) e-mail. They were replaced by Internet Protocol accounts in 1996. In
June, 1996 the government decided to allow private companies to act as Internet Services
Providers (ISPs) using VSATs.
 From 1996, Computer was also being introduced as a subject in secondary level education.
Subjects like Computer Science, Computer Engineering became very popular. In addition,
numerous organizations were offering short courses or one-year diploma course.
 In 1998, the then government of Bangladesh removed all types of tax and duty from
computer.
Bangladesh Computer Council and Bangladesh Bureau of Statistics conducted a survey which
revealed that there 780000 PCs in the country by the end of 1998 with more than 120,000
licensed software. Dhaka had the highest concentration of computer (72%).
Beginning of E-commerce in Bangladesh:
E-commerce started in Bangladesh in the late 90s. The earlier E-commerce sites were actually gift
sites targeted towards the Non-Residential-Bangladeshis (NRB) living in abroad. All the sites
were based in abroad and had branches in Bangladesh. NRBs would buy various products for
their families or loved ones and pay in credit card. The site would then deliver the product to their
family or friend in Bangladesh.

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From 2000 to 2008 the E-commerce sector observed slow growth. There were few E-commerce
websites but there was no system for online transaction which is the first condition for E-
commerce. In addition, high cost of Internet and lower penetration meant that few people knew
about these sites. According to Bangladesh Bank, payments and transactions by credit cards were
nearly Tk11 billion in June 2008; one of the lowest in the world.
The country had only about 400,000 credit card holders at the end of June 2009. From 2008,
things started to look bright as Bangladesh Bank took various initiatives including
implementation of e-Payment Gateway.
Bangladesh Bank opening up E-commerce sector:
The real change came in 2009 when Bangladesh Bank allowed online payment in the country
thus, officially opening up the E-commerce sector. In November that year, Bangladesh Bank
issued a circular where it gave permission for following types of online transaction in the country:
• Online utility bill payment from client’s accounts to recipient’s accounts.
• Online money transfer from online of a client to his/her another account in the same bank
• Collection of money from/to buyer’s bank account to seller’s bank account for Purchase/sale of
products under e-commerce system transaction via internet using credit cards in local currency.
Another major incident of 2009 was introduction of WiMAX internet in Bangladesh. It became
quite popular in the country.
Year 2013: The Rise of E-commerce
The year 2013 has been an important year in the history of E-commerce in Bangladesh. Some
important things took place during this year that would have a long lasting effect in the E-
commerce sector.
First, Bangladesh Association of Software and Information Services (BASIS) and Bangladesh
Bank jointly observed E-commerce Week for the first time in the country. From January 5 to
January 11, there were four roundtable discussions, two seminars, one technical session, special
awareness program at Dhaka University and a special promotional campaign at Bashundhara
Shopping Mall. Supported by ICT Business Promotion Council, the inauguration ceremony of E-
Commerce Week took place in The Westin Hotel on 5 January, 2013. Governor of Bangladesh
Bank, Dr. Atiur Rahman was the chief guest of the ceremony. The theme of the week was ―Shop
Online: Anything Anytime.‖ In his speech, Dr. Atiur Rahman said that there were 4.6 million
debit and credit card holders in the country and 3 million mobile bank accounts.
In February 2013, for the first time in the country, Computer Jagat, the leading ICT magazine of
Bangladesh, under the supervision of Dhaka DC Office, organized the first fair on E-commerce.
The three-day fair took place from February 7 to February 9 at the premise of Begum Sufia
Kamal National Public Library. The slogan of the fair was- ―Festival for buying and selling at

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your premise. A total of 31 public and private E-commerce organizations showcased their
products and services at the fair. Though first of its kind, the fair was huge success attracting
eighty thousand visitors. Computer Jagat also did live webcast of the fair which was seen by more
than fifty thousand people in Bangladesh and abroad.
After the success of E-commerce Fair in Dhaka Computer Jagat organized two more fairs in
Sylhet and Chittagong. A total of 45 organizations participated in the Sylhet fair attracting thirty
thousand visitors. In the Chittagong fair a total of 51 organizations participated.
After three successful E-commerce fairs in the country. Computer Jagat, ICT Ministry (currently
Ministry of Post, Telecom and Information Technology) and Bangladesh High Commission
London jointly organized the first international E-commerce Fair. The three-day UK-Bangladesh
e-Commerce Fair will be held during September7-9 at Millennium Gloucester Hotel in Central
London. Dr. Dipu Moni, the then Minister of Foreign Affairs Bangladesh inaugurated the fair. 19
organizations from Bangladesh and 13 from the UK participated in this fair. The UK-Bangladesh
e-Commerce also repeated the success of previous fairs. Many Bangladeshis living in London and
people of London came to visit the fair.
Third, Bangladesh Bank gave permission to buy products and services online using international
credit cards. Buying products and services from abroad using credit card is an important aspect of
E-commerce but it was not possible for the Bangladeshi international credit card holders. In May
last year, Bangladesh Bank gave permission to buy products from abroad via international credit
card.
1.3. Current Scenario of Supportive Infrastructure in Bangladesh
1.3.1. Bangladesh Key Indicators
 A South Asian country.
 Area only 143,000 sq. km.
 Population 150 million.
 Annual per capita income US$ 295.
 One of the world’s lowest telecom densities. With a combined density (0.46) of fixed
and mobile, Bangladesh ranked 39th among the 40 countries of Asia Pacific region in
1999. It also has the lowest penetration in South Asia. Present telecom density is 0.74
(.6 mils fixed + .4 mil mobile)
1.3.2. Telephone Density
The total number of Mobile Phone subscriptions has reached 131.956 million at the end of
January, 2016.
1.3.3. Usage of Computer in Bangladesh
In Bangladesh, computers are used in different fields successfully.

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1.3.3.1. Use in agricultural sector: Bangladesh is an agricultural country. During the
recent years, computer has been contributing a lot to our agriculture. Many hi-breed crops
are being invented using the computers in Bangladesh Agriculture University.
1.3.3.2. Use in IT sector: The present age is the age of information technology. Fax, E-
mail, Internet, Mobile Phone and other mass medias represent information technology and
all these in our country are completely based on computer.
1.3.3.3. Use in medical science: In Bangladesh, the introduction of computer in medical
science have added a new dimension. Now computers are being used to diagnose as well as
for treatment of serious diseases. We cannot think of a modern operation theater without
computer.
1.3.3.4. Use in publication sector: In the publication sector of Bangladesh, the traditional
type and block system has yielded to computer compose. Now all kinds of books,
newspaper, journals etc., are being composed using computer. In fact, computer has brought
about a revolutionary advancement in the publication sector of Bangladesh.
1.3.3.5. Use in education sector: In the recent years, the publishing of the results of
different public examinations has been computerized. As a result, it has been possible for
the concerned authority to publish accurate exam results in the shortest possible time.
1.3.3.6. Use in office activities: Almost all the private and govt. offices now-a-days use
computers in their day to day activities. Computer has actually become a part and parcel of
all kinds of office activities.
1.4. The Internet in Bangladesh
Total 21, 439,070 Internet Users in Bangladesh (2016*)
 Share of Bangladesh Population: 13.2 % (penetration)
 Total Population:162,910,864
Year
Internet
Users**
Penetration
(% of Pop)
Total
Population
Non-Users
(Internet
less)
1Y
User
Change
1Y User
Change
Population
Change
2016* 21,439,070 13.2 % 162,910,864 141,471,794 10.4 % 2,018,395 1.19 %
2015* 19,420,674 12.1 % 160,995,642 141,574,968 27.2 % 4,149,233 1.21 %
2014 15,271,441 9.6 % 159,077,513 143,806,072 46.6 % 4,851,906 1.22 %
2013 10,419,535 6.6 % 157,157,394 146,737,859 34.2 % 2,656,666 1.22 %
2012 7,762,869 5 % 155,257,387 147,494,518 12.5 % 859,617 1.21 %

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1.5. E-commerce Practice in Bangladesh
E-commerce in Bangladesh actually stated in the year of 1999 based in USA with some non-
resident Bangladeshis. This people opened some Bangladeshi sites focused on providing local
news and some transactional things like sending gift items to Bangladesh. www.munshigi.com is
the first ever Bangladeshi e-commerce web site.
List of different types e-commerce web sites:
SL Name Website
1. Bikroy www.bikroy.com
2. Ekhanei http://www.ekhanei.com/
3. Rokomari http://rokomari.com/
4. Boi Mela http://www.boi-mela.com/
5. Online Pharmacy 24 BD http://onlinepharmacy24bd.com/
6. Easy Shopping BD http://www.easyshoppingbd.com/
7. Priyo shop http://priyoshop.com/
8. Global brand com bd http://www.globalbrand.com.bd/
9. Bikroy mela http://bikroy-mela.com/
10. Easy shopping BD http://www.easyshoppingbd.com/
11. BD Haat http://www.bdhaat.com/
12. Hut Bazar http://www.hutbazar.com
13. Gift Mela http://www.giftmela.com
14. BD giftz http://www.bdgiftz.com
15. Mukto bazaar http://www.muktobazaar.com
16. Deshi kenakata http://www.deshikenakata.com
17. Click BD http://www.clickbd.com
18. Akhoni akhoni.com
19. Ajker Deal http://www.ajkerdeal.com/
20. Gift Haat http://www.giftzhaat.com/
21. Iferi iferi.com
22. Biponee biponee.com

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23. Ushop Bd Ushop.com.bd
24. BD Gift Zone Bdgiftzone.co
25. Deshi Greetings Deshigreetings.com
26. Bangladesh Brands http://bangladeshbrands.com
27. Upohar BD www.upoharbd.com
28. Kaymu BD http://www.kaymu.com.bd/
29. BD Haat www.bdhaat.com
30. Chal Dal https://chaldal.com/
1.6. E-Commerce payment solutions:
Online payment method is not popular here. Most the people love to buy products only using
 Cash on Delivery (COD).
 Payment through Bank Accounts.
 Payment through Mobile Banking Accounts. (Bkash, DBBL Mobile banking, mCash and
others.
As per counting, more than 90% of e-commerce users in here prefer cash on delivery. The fact
that a lot of annoying bogus order. And when the company took him to order the product, at that
time, the customer did not take it or avoid the product. 30-45% of total orders come back.

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2.Digital Marketing
2.1.What is Digital Marketing?
Digital Marketing (also Online Marketing, Internet Marketing or Web Marketing) is a collective
name for marketing activity carried out online, as opposed to traditional marketing through print
media, live promotions, and TV and radio advertisement.
The rapid growth of Digital Marketing Industry is a direct consequence of the global phenomenon
that is the Internet, and effectiveness of Digital Marketing channels in generating revenue and
awareness. Compared to traditional methods of advertising, Digital Marketing offers rather
realistic costs (particularly important for small- and medium-size businesses and start-ups),
accurate targeting and excellent reporting.
2.2. Digital marketing channels
2.2.1. SEO (Search Engine Optimization)
Search engine optimization (SEO) is the process of affecting the visibility of a website or a web
page in a search engine's "natural" or un-paid ("organic") search results. SEO may target different
kinds of search, including image search, local search, video search, academic search, news search
and industry-specific vertical search engines.
As an Internet marketing strategy, SEO considers how search engines work, what people search
for, the actual search terms or keywords typed into search engines and which search engines are
preferred by their targeted audience. Optimizing a website may involve editing its content, HTML
and associated coding to both increase its relevance to specific keywords and to remove barriers
to the indexing activities of search engines. Promoting a site to increase the number of back links,
or inbound links, social book marking, directory submission is another SEO tactic.
2.2.2. SEM (Search Engine Marketing)
Search engine marketing (SEM) is a form of Internet marketing that involves the promotion of
websites by increasing their visibility in search engine results pages (SERPs) through
optimization and advertising.]
SEM may use search engine optimization (SEO), which adjusts or
rewrites website content to achieve a higher ranking in search engine results pages, or use pay per
click listings.
2.2.3. SMM (Social Media Marketing)
Social media marketing is the process of gaining website traffic or attention through social media
sites.

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Social media marketing programs usually center on efforts to create content that attracts attention
and encourages readers to share it across their social networks. The resulting electronic word of
mouth (eWoM) refers to any statement consumers share via the Internet (e.g., web sites, social
networks, instant messages, news feeds) about an event, product, service, brand or company.
When the underlying message spreads from user to user and presumably resonates because it
appears to come from a trusted, third-party source, as opposed to the brand or company itself, this
form of marketing results in earned media rather than paid media.
Engagement
In the context of the social web, engagement means that customers and stakeholders are
participants rather than viewers. Social media in business allows anyone and everyone to express
and share an opinion or an idea somewhere along the business’s path to market. Each
participating customer becomes part of the marketing department, as other customers read their
comments or reviews. The engagement process is then fundamental to successful social media
marketing.
2.2.3.1. Facebook Marketing
Facebook is the world's most popular social network for both businesses and individuals. With
over one billion users, your friends and fans are likely already using the platform -- and you
should be too!
In fact, people are more likely to make a purchase after "liking" a brand on Facebook.
Facebook marketing requires a good intellects and unique thinking to make the campaign
effective.
a) Post/Page Boost
A boosted post is a post from your business Page that, for a fee, can appear higher up on
your audience’s News Feeds. The fee depends on how many people you want the post to
reach—the payment depends on the number of impressions the post gets with time.
Boosted posts are different from Sponsored posts. Sponsored posts function more
similarly to ads, where you can choose your target demographic and invest funds into
making them aware of your business. We recommend that you try promoting your posts
after you have run advanced analytics on your target group, and know exactly who you’d
want to reach.
b) Hashtag
A hashtag is any word beginning with the “#” sign. People use hashtags to organize
conversations around a specific topic. Clicking on a hashtag takes you to search results for
that term.

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c) Mention
Sometimes you want to bring a Tweet to someone’s attention, but you still want all of
your followers to see the message. So instead of a reply, use a mention. Include the
@name or start typing the user’s name of whomever you want to mention in your Tweet,
and it will appear in the suggestion box.
d) Reply
You can respond to a comment by hitting the reply button. When you reply, your response
is public, and will show up in the comment section of the post.
2.2.3.2. Twitter marketing
Twitter’s flexible, real-time platform allows you to get creative and drive results at the same
time. Whether you’re looking to drive sales, increase brand awareness or launch a product.
Twitter marketing is not much popular than face book but still it has an impact on audience
So what we have today!!!
The very first thing in twitter marketing you need to understand and learn the twitter
terminologies well.
a) Hashtag
A hashtag is any word beginning with the # sign. People use hashtags to organize
conversations around a specific topic. Clicking on a hashtag takes you to search results for
that term.
b) Mention
Sometimes you want to bring a Tweet to someone’s attention, but you still want all of your
followers to see the message. So instead of a reply, use a mention. Include the @username
of whomever you want to mention in your Tweet, and it will appear in the Mentions section
(in the Connect tab). All @username mentions are clickable and link back to the mentioned
individual’s profile.
c) Reply
You can respond to a Tweet by hitting the reply button. When you reply, your response is
public, and will show up in your home timeline and the timeline of the person to whom you
are responding. The reply will also be visible in the home timelines of people who follow
both you and the person to whom you sent the reply. Meaning, someone not in the
conversation has to follow both of the people replying to be able to read both sides of the
conversation.
d) Retweet
You can pass along someone’s Tweet by retweeting it. Just hit the retweet button to send the
original message to all of your followers.

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e) Links
Twitter’s link- shortening feature allows you to paste a link of any length into the Tweet box
and it will automatically be shortened to 19 characters. This makes it easier to fit long URLs
into the 140-character limit.
f) Favorite
You can favorite the tweet for future reference. This is just like an archiving something
that’s really interesting to you.
g) Direct Message
You can send private messages to someone, just like an email. For DM, sender and receiver
should be following each other
2.2.3.3. Linked in Marketing
LinkedIn is the world's largest social network for professionals. With over 161 million
registered users in more than 200 countries, more than two million companies have created
LinkedIn Company Pages to vie for their attention. If you are in B2B business this platform
is very useful for you to connect with company’s directors and marketing person.
2.2.3.4. Pinterest
It is a visual discovery social network. It is a way of sharing images of anything, from
fashion to pets to pot plants. You can create your own online pin boards to suits any theme
and share to with likeminded people.
Pinterest completely revolves around the premise of being creative and visual. 70% users are
female and aged between 25 and 44. So if you are targeting women Pinterest is the right
platform. Pinterest is now one of the top 10 social networking sites tracked by Hit wise.
How brands can use Pinterest
Pinterest does not encourage product pushing; this means brands must look at crating boards
that are culture and lifestyle related. You can create boards on trends, behind the sciences’,
preliminary sketches for products etc.
2.2.3.5. Instagram
Instagram the new revolutionary photo-sharing program, making it easier than ever to share
your best pictures with the world. The social media program allows you to upload, add
digital filters, and then post your pictures on your Instagram-feed, as well as other social
networking sites. You can connect your Instagram account with Facebook, Twitter, Tumblr,
Flickr, Foursquare and your email account. This makes it easy to share your pictures on
multiple platforms all at once.
2.2.3.6. Google +
Google has described Google+ as a "social layer" that enhances many of its online properties,
and that it is not simply a social networking website, but also an authorship tool that

15
associates web-content directly with its owner/author. It is the second-largest social
networking site in the world after Facebook. 540 million monthly active users are part of the
Identity service site, by interacting socially with Google+ enhanced properties, like Gmail,
+1 button, and YouTube comments. In October 2013, Google counted 540 million active
users who used at least one Google+ service, of which 300 million users are active in "the
stream".
2.2.3.7. YouTube
YouTube is a video Social Networking site and the 2nd most popular search site on the
Internet after Google, who owns YouTube. YouTube video watching is a significant activity
on the Internet, with over 1 billion visits to YouTube daily and over 100 million videos
watched daily. And it's easy for anyone who sees your video to rate it and share it with his
Social Network.
2.2.4. ODA (Online Display Ads)
Display advertising appears on web pages in many forms, including web banners. Banner ad
standards continue to evolve.
ORM (Online Reputation Management)
Online reputation management is coined by the public relation. Basically ORM is a process
include-
 Undertake the comprehensive research and analysis the online content.
 Track your users’ actions and opinions about brand.
 Reduce your risk of featuring amongst the negative user sentiments.
 Enhance your web presence and create positive perceptions.
2.2.5. MMT (Mobile Marketing)
Mobile marketing is marketing on or with a mobile device, such as a smart phone Mobile
marketing can provide customers with time and location sensitive, personalized information that
promotes goods, services and ideas.
2.2.6. EMT (Email Marketing)
It usually involves using email to send ads, request business, or solicit sales or donations, and is
meant to build loyalty, trust, or brand awareness. Email marketing can be done to either sold lists
or current customer database.
2.3. Business Development Process Flowchart
It is a standard Business Development process followed by the company and ask me to follow, it
is basic process followed by every startup company in order to approach a client’s initially.
Sometimes they may send teaser E-mailer of a similar domain to the clients before approaching
them.

16
Which products are likely beneficiaries of the Internet?
Given that the usage of the Internet is highest amongst young, male audiences belonging to the
larger towns and who belong to higher SEC groups, for this medium to be cost-effective, products
having similar target groups would benefit the most from this medium.
The most likely examples that come to mind include telecom, financial products and services,
products related to entertainment like movies (promotions and tickets), plays, contests etc.,
FMCG products where the core target audience is younger (deodorants, soft drinks), consumer
durables to some extent and high-end services like tour operators, airline services, hotels etc.
Advertising options available on internet:
The Internet offers a variety of options for the marketer to advertise her/his products/brands.
These include
a) Banner ads and their variations
b) E-mailers and their variations
c) Sponsorships
d) Search Engines
e) Affiliate marketing
In Bangladesh, now banners are the most popular option. However, wider options are now
available to the marketer which, even at the cost of being intrusive, serves to enhance the
visibility and effectiveness of the banner
The Variants of Banners includes:
a) Banner Ad - a graphical web advertising unit, typically measuring 468 pixels wide and 60
pixels tall (i.e. 468x60).
1. Market
Analysis and
Market Research
2. Database
Creation of clients
3. Cold Calling
4. Fixing meeting
5. Proposal
Making for
Clients
6. Project Closure

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b) Beyond the Banner - online advertising not involving standard GIF and JPEG banner ads.
c) Button Ad- a graphical advertising unit, smaller than a banner advertisement.
d) HTML banner - a banner ad using HTML elements, often including interactive forms,
instead of (or in addition to) standard graphical elements.
e) Interstitial - an advertisement that loads between two content pages.
f) Pop-up Ad - an ad that displays in a new browser window.
g) Pop under Ad - an ad that displays in a new browser window behind the current browser
window.
h) Rectangle Ad - any one of the large, rectangular banner sizes suggested by the IAB.
i) Rich Media- new media that offers an enhanced experience relative to older, mainstream
formats.
j) Sky Scrapper Ad- an online ad significantly taller than the 120x240 vertical banner.
k) Text Ad - advertisement using text-based hyperlinks.
l) Surround Session - advertising sequence in which a visitor receives ads from one advertiser
throughout an entire site visit.
m) Vertical Banner - a banner ad measuring 120 pixels wide and 240 pixels tall.
2.4. Internet Marketing Tactics
There are many different technologies to facilitate your Internet marketing strategy. Some of the
most common and effective tools are:
2.4.1. Search Engines and Directories: Search engines are one of the most popular
means of finding web sites, second only to following links on web pages.
Search engines help people find relevant information on the Internet. Major search engines
maintain huge databases of web sites that users can search by typing in keywords or phrases.
Advertise your message. Web directories/search engines are information, gateways that
have high traffic and are good for displaying advertisement banners. They are used to find
Internet information and for this reason, appeal to broad target groups.

18
2.4.2. E-zines (Online magazines): These publications are focused on specific topics
and may be a way to reach a target audience interested in that subject. Some companies have
gathered the e-mail addresses of potential customers and used these lists to send out product
information specific to client interests.
2.4.3. E-mail: Ethical methods of gathering e-mail addresses are through on-line
registration built into your corporate Web sites, or requests for information forms that
request submission to your opt-in lists.
An alternative is to purchase lists of customer e-mail addresses indexed by special interests
from a private company such as 'Postmaster Direct'.
Online customers are becoming increasingly selective about their relationships, the brands
they trust, and what they consider relevant. While most marketers are aware of privacy
issues and the risks of Spam, there is still need for improvement. Email marketing campaign
management is still fairly unsophisticated even at the largest of organizations.
Marketers have to think about the drivers of customer response and purchase. Over time, as
more is learned about your customer buying behavior, you can will isolate campaign and
program characteristics that drive your customer or visitor response and action. Isolating the
behavior of high value customers, business customers, or the minority of customers who
prefer to buy online will be critical. For example, new online buyers get referrals when
shopping online, while experienced frequent buyers prefer search engines.
2.4.4. Affiliate Marketing: Affiliate Marketing enables you to increase online sales by
promoting your products and services through a network of Affiliate sites on a payment-by-
results basis.
It also provides the opportunity to generate additional revenue by exploiting your site's own
content to promote the products and services of other online Merchants.
A Merchant recruits content sites to partner with them as Affiliates in exchange for
commissions. A common third party provider such as Commission Junction can be used.
The Merchant provides their advertising banners and links to their Affiliates and assigns a
commission for each click-through to their site, subscription to their service, or purchase of
their products that is generated from those links.
Affiliates place the tracking code for these ads and links on their Web sites. This allows
click trough’s to be tracked online and commissions to be calculated. If a product or service
is purchased, the customer pays the Merchant directly and the Affiliate is paid a commission
for that transaction. The dating giant adultfriendfinder.com has used this strategy to the
maximum and has earned millions of dollars by proper implementation of this strategy.
2.4.5. Banner Advertising: Banner advertising can play an extremely important role
within your website strategy. One can use banner advertising as a means of promoting its
own products and services, raising awareness, or as a way of generating revenue by selling
advertising space on your own website.

19
2.4.6. Purchasing Advertising: There are currently two widely recognized methods of
purchasing banner advertising. The rates for these are usually quoted on a cost per thousand
basis or (CPM). The rates you pay can vary tremendously as there is currently no standard
price model - so be prepared to negotiate!
 Pay-Per-Impression: This method of purchasing banner advertising is based on a
charge for the number of times someone sees your banner. There are no guarantees as
to how many visitors will come to your site as a result of seeing your banner; you are
simply paying for the number of times your banner is displayed. Websites that offer
such programs include paypopup.com and adclicksor.com.
 Pay-Per-Visitor: This method of purchasing banner advertising is based on a charge
for the number of times someone visits your site as a result of clicking on your banner.
This is a better method of purchasing banner advertising as you are only paying for
results, although expect to pay a premium.
 Pay-Per-Click: The revenue model of the Internet giant google.com has its very own
service which offers certain share of the profit that it makes by the click-thru that a
website generates from its AdSense codes. The revenue model is known as Google
AdSense and almost every successful website uses this model to make profits.
 Branding. While CTR and cost per sale relate to direct marketing objectives, another
way of looking at banner ads is as "branding" tools. They create brand awareness, and
a brand image in the viewer's mind, whether or not the viewer clicks on the ad.
Branding is very difficult to measure, but can be very powerful.
The average click through ratio on banners is just under 1%, although with a well
planned and executed advertising campaign using effective banners you can increase
this to as much as 15%, but be prepared to work at it.
It is a good idea to have a number of different banner ideas so that you can carry out
small test marketing campaigns with each one until you find those that work best.
There are a number of key issues that must be considered when designing a successful
banner:
 It must have an attention-grabbing headline.
 It must be simple and get your point across.
 It must invoke action (i.e.: "Click here")
 It must download quickly.
 It must be placed effectively on a web site, Location, Location, Location
Any campaign is limited by the amount of advertising you can do depending on the
size of your budget. Therefore, it is important that you target your market carefully so
as to maximize advertising spend on effective banner campaigns.

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2.4.7. Rich Media Advertising: Looking for ways to make online advertising more
compelling, and hopefully thereby more acceptable, marketers have increasingly been
turning to streaming advertising.
In effect another kind of rich media advertising, streaming advertising comes in two basic
forms.
First, it can either be part of a streaming audio or video program on the web. With many
people now listening to web radio or watching web broadcasts, this makes perfect sense.
After all, everyone is accustomed to getting commercials on their TV or car radio.
The other channel for streaming advertising is essentially an infomercial. Consumers can
download a streaming clip for a product or service from a marketer's website.
Two new studies recently released suggest that the streaming advertising market is going to
boom now and in the years to come. The giant ad selling company Media turf uses this
method for providing content to advertisers.
2.4.8. Sales Promotion: Employing methods to stimulate sales through immediate or
delayed incentives to the customer. If the incentive is attractive, the price: value ratio is
adjusted favorably enough to affect a sale. This strategy should integrate with the overall
marketing mix to balance extra sales with long-term profit motives. Examples of sales
promotion strategies are:
 Sampling: offering product samples, electronically.
 Bonus offers: offering additional goods or services when making single purchases
(e.g. buy-one-get-one-free).
 Limited time offers: attracting visitors to return to a Web site.
 Games with prizes: Useful to keep people coming back to Web sites.
 Cross-product sampling: When a customer makes a purchase they have an
opportunity to try out another company’s product/service. Also, the customer may have
the opportunity to try out more than one company’s product/service while testing another.
Useful for complementary products/services.
 Feature pricing: providing special pricing to those that order electronically.
 Cross-promotions with other companies’ products/services: Buy a company’s
product/service and get a coupon for another company’s product/service.

21
2.4.9. Promotional Publications: Facilitate customer education, with the intention of
building corporate image and even brand awareness, the small business may sponsor and/or
publish its own electronic magazine on the Web, e-mail, etc. These are useful in fields
where the customer needs information to develop sufficient knowledge for movement
through the first three stages of the sales process of awareness, interest, and desire.
Although time consuming, they replace or complement the print versions of
newsletters/corporate magazines/flyers.
2.4.10. Subscriptions: Business marketers may use their Web sites to encourage visitors
to subscribe to receive regular email messages from the company. These messages are
called digests or newsletters, and are a clever way for marketers to push product news to
willing customers.
2.4.11. Controlled-access Web pages: Clever business marketers may use their Web site
to attract new customers. They might publish a Web page that allows customers to
download a free trial version of a software application that expires after a time if not paid
for. Or, customers might receive an e-mail message inviting them to visit a private Web
page on the company’s intranet, and giving them a password. The company, as a way of
encouraging a sale, offers customers who visit the page a prize or enticement of some sort.
2.4.12. Resellers: Some sites will remarket other companies’ products as intermediaries.
The companies that host these sites may have invested significant resources in making them
attractive to the target audience a small business is interested in attracted. By piggybacking
on another company’s efforts, cost-efficiencies may be realized by engaging in a reselling
arrangement.
2.4.13. Public Forums: These are often community-based or interest-based sites that allow
visitors to communicate with one another. An opportunity for small businesses to reach to their
intended target group via these forums is by posting messages or by sponsoring such a forum. E-mail
based forums appeal to a wider audience due to the greater use of this application over Web-based
forums. Web based forums are advantageous for their superior display of advertising
images/messages.
2.4.14. E-mail Links: Visitors to a site should have the opportunity to correspond with the
host of that site, especially if out of the telephone area or time zone. E-mail links may be
strategically placed throughout the site to elicit response from visitors for at various points.
These are also useful for feedback on site maintenance problems.
2.4.15. On-line Surveys: Information may be collected on the visitors to a Web site
through registration forms, on-line surveys, or through tracking of areas of site they visit.
These websites also offer referrals wherein if you refer someone to their site and the person
becomes a member then you are paid commission on that.

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2.4.16. Virtual Malls: Web based sites that allow companies to post their products or
services for sale long with other companies. These may be product specific, may be
arranged by complementary products, or may have products that are not related except by
their companies’ desire to attract a similar target audience.
2.4.17. Measurement: The Internet has the unique ability to provide marketers with
detailed information about the success of their Web marketing programs. Companies can
track visitors to their site and collect information about them from their ―cookies,‖ then
process this information using Web site analysis software.
Cookies are an essential part of many companies’ business strategies. The information
collected from them is used to measure site visitors, develop user profiles, and target
advertising — in much the same way that television allows advertisers to target their
message to a certain demographic.

24
3.Budgeting:
3.1. Budgeting Factors:
Online store is a sales channel and acts like a sales person for an e-commerce business. Selling
online is very cost effective as there are less human resource and infrastructure costs compared to
a traditional business. But results will be directly dependant on your investment, quality of service
and products. A new business may have to be more careful with their money, so an alternative
option is to use budgets. It is essential to have a marketing plan. A small, fixed budget is enough
to start an e-commerce business. As for how much to spend for the website and its digital
marketing, which depends on how much capital, have on hand after other costs are covered.
Calculating ROI also gives you a better understanding of how your campaigns impact your
overall budget. ROI compares the gains from a strategy or campaign to its costs in percent form,
arming with the data. It helps to spend money efficiently in future marketing efforts.
Here at first have to find out what type of campaign will have the best impact for the business.
Have to be specific what we want to gain, It can be a set number of followers on social media,
Increase sales by a certain percent by promotion on social media, Increase search engine
rankings? The total budget depends on our marketing strategy.
3.2. Example of expected costs for a small to medium sized business:
Costs will generally be based on the size of inventory and overall requirements like features,
design, multi-channels, social and mobile.
The following tables provide some guidance for a first year’s budget to setup the website side of
an online business and its digital marketing.
The website setup cost is fixed. Here I have shown a expected cost to setup a website. And for the
digital marketing cost, it is completely depends on your promotional strategy. The total cost
varies on requirements as one wants.
Total Cost to Establish A Website
Domain 800 taka (Minimum)
Hosting 800 taka (Minimum)
Website Template 50,000 taka (Varies on Requirements)
Total 51,600 taka (Approximate)

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Cost for Promotion
Search Engine Optimization
(SEO)
As per requirement.
Minimum 15,000 taka /month
Social Media Marketing
(SMM)
As per requirement.
Minimum 5,000 taka
Email marketing
As per requirement.
Minimum 10,000 taka

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4.Interaction Between Internet and Traditional
Marketing:
4.1. 7 P's of Marketing on the Internet
The four P's - Product, Price, Place and Promotion have long been associated with marketing, but
things have changed on the Internet. So along with a change in the nature of the four P’s there are
three new P’s which are relevant to the internet marketer.
a) Product: The Product on the Internet usually changes form online, and the user experiences it
electronically, in the form of text, images and multimedia. Physical goods are usually
presented in the form of a detailed online catalogue that the customer can browse through.
Technology allows the user to virtually touch and feel the product on the Internet - rotate it,
zoom in or zoom out and even visualize the product in different configurations and
combination. The example of the above can be seen at dell.com where the company offers the
user to virtually feel every aspect of their product before they go into a buy decision. Content
and software are two avatars of digitized products that can be even distributed over the
Internet. On the Internet, E-marketing will be based more on the product qualities rather than
on the price. Every company will be able to bring down the cost of its products and hence
competition will not be on price. It will rather be on the uniqueness of the product. To be able
to attract the customers and retain them, the company will have to provide nouvelle and
distinct products that forces the net users to purchase and come back for more.
b) Price: The Price has been drastically changed over the Internet. It lets the buyer decides the
price. Also it gives the buyers information about multiple sellers selling the same product. It
leads to best possible deal for the buyers in terms of price. A website named Priceline.com is
extremely popular as its compares the price of many airlines and offers the least price to the
buyer. The very famous bazee.com now known as ebay.in follows the same principles. Pricing
is dynamic over the Internet.
c) Place: The Place revolves around setting up of a marketing channel to reach the customer.
Internet serves as a direct marketing channel that allows the producer to reach the customer
directly. The elimination of the intermediate channel allows the producer to pass the reduced
distribution cost to the customer in the form of discounts. Dell Computers have used this
strategy very effectively and hence they have been able to reduce their prices of their laptops
drastically and reaped huge profits.
d) Promotion: Promotion is extremely necessary to entice the customer to its website, as there
are currently more than one billion web pages. Promoting a website includes both online and
offline strategies. Online strategies include search engine optimization, banner ads, multiple
points of entry, viral marketing, strategic partnership and affiliate marketing. Presently, the
cyberspace is already cluttered with thousands of sites probably selling similar products. For
the customers to know of the Company’s existence and to garner information on the kind of
products or services that the company is offering, promotion has to be carried out. There can
be traded links or banner advertisements for the same. Also the traditional mediums like print,

28
outdoor advertising and television can be used to spread awareness. Email campaigns and
spamming the Chat rooms on almost every server has been exploited to the maximum for the
cause of promoting their website.
e) Presentation: The presentation of the online business needs to have an easy to use navigation.
The look and the feel of the web site should be based on corporate logos and standards. About
80% of the people read only 20% of the web page. Therefore, the web page should not be
cluttered with a lot of information. Also, simple but powerful navigational aids on all web
pages like search engines make it easy for customer to find their way around. The principle of
K.I.S.S (Keep it simple stupid) is the most important factor that has to be considered while
presenting the online business.
f) Processes: Customer supports needs to be integrated into the online web site. A sales service
that will be able to answer the questions of their customers fast and in a reliable manner is
necessary. To further enhance after sales service, customers must be able to find out about
their order status after the sale has been made. For e.g. ChalDal.com allows its customers to
keep track of the parcel and they are well informed about the present whereabouts of their
package.
g) Personalization: Using the latest software from Broad-Vision and others, it is possible to
customize the entire web site for every single user, without any additional costs. The mass
customization allows the company to create web pages’ products and services that suit the
requirement of the user. A customized web page does not only include the preferred layout of
the customer but also a pre selection of goods the customer may be interested in. For e.g.
www.facebook.com.bdhave its personalized services. A registered user of Facebook can now
personalize the timeline that a user wants to show to others.
4.2. Understanding the Internet Customers
Now to be able to use the seven P’s effectively in order to achieve the predefined goals of any
organization it is imperative to understand the customers. Customization will only be truly
effective if we understand our customers and their true needs.
Before adapting marketing practices to the Internet, the marketer needs to understand the
characteristics of the online customers. The Net users can be classified into five categories
depending upon their intention of using the Internet.
The five categories of users are:
 Directed Information Seekers: They require specific, timely and relevant information
about the products and services being offered.
 Undirected Information Seekers: These users require something interesting and useful.
Something that can give them an edge, advantage, insight or even a pleasant surprise.
 Bargain Hunters: They are of two kinds. One who look for free items on the internet and
other who are seeking better deals, higher discounts etc.
 Entertainment Seekers: they see the Web as an entertainment medium of vast breath and
potential and want to explore the medium before the mass gets there.

29
 Directed Buyers: They want to buy something - now. They are sure what they require
and just log on to the Web to purchase the item.
The Evolving Value Propositions
The value propositions of goods and services offered in the physical world differ pointedly from
those in the digital world. The ultimate aim of the universal marketer is to provide a complete
end-to-end consumer experience---right from the promise to satisfy his need to its delivery. But
the physical world offers only ―Point Solutions‖ which is basically a solution of his needs in
terms of functional benefits. A credit card, for instance, allows consumers to satisfy the
immediate necessity of setting a transaction. But today’s consumers are also looking for process
and relationship benefit---book referrals at no extra cost or e-mail reminders. The physical world
is not able to deliver these benefits because of gaps in time, space and memory. The web, on the
other hand provides all of these and more (―reverse marketing, for example, where consumers
seek out vendors rather than the other way around‖) by giving the company the ownership and
control over all interactions with the consumer.
The Evolving Risk Profiles
The on-line customer is not a fickle customer, but he is a risky proposition nevertheless. This is
because all his online experience will influence consumer perceptions about the brand. If a
consumer buys a product from a retailer and is involved in an unhappy purchase experience at the
store, he will punish the store. But if the same experience were to occur to him at the company’s
web site, the consequences would be disastrous for the company if he were to share his
experience though different user communities using a combination of chat rooms and electronic
mails.
The Evolving Supply Chain
The transformation being brought about the Web revolution is not limited to just the consumer.
The last few years have seen a flurry of suggested business models for doing business in the
Internet era. Will the Internet era signal the death of the retailer? Or will a new intermediary come
into existence? Technological innovations have made possible two interesting developments---the
Choice board system 2 and the Vertical Portal. Because Choice boards are essentially design tools
and conduits of information, companies that produce the products need not control them. Dell
uses a Choice board system to sell its computers but there are others like Point.com that uses a
Choice board to help customers research and buy wireless phones and accessories. The market
information that a Choice board collects about customer preferences is absolutely enormous and if
the manufacturing company does not control it, the site offering the Choice board can emerge as a
powerful intermediary. Vertical portals armed with sophisticated search engines, which specialize
in a particular industry or product category, and provide customized information and promote
online community development are the next emergent intermediaries. The sophistication and
range of information collected on customer preferences will drive emergent business models. The
Web will thus facilitate the transformation of the companies’ form transaction supporters to
customer relationship managers.
4.3. Critical Success factors in E-Marketing
Having observed the evolving paradigms of business in the Internet era, there are five critical
success factors that the E-Marketer has to keep in mind.

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 Attracting the Right Customer is the first crucial step. Rising digital penetration would
mean that the number of customer visiting particular sites would inevitably go up. While
the number of eyeballs or page views has so far been conveniently used as a satisfactory
measure by most web sites, it would be foolish to cater to the whole spectrum of digital
visitors. Content has to be very target specific. The digital company has to select its target
segment by finding out which section of customers are the most profitable in terms of
revenue transactions and who are the customers who generate the maximum number of
referrals. Here again it is important to note that the majority of online customers are not
seeking the lowest price. Rather they are seeking convenience above everything else. The
power of customer referrals has never been so enormous, since word of the mouse spreads
faster than word of the mouth. E-Bay attracts more than half of its customers through
referrals. Not only do referred customers cost less to acquire than those brought in by
advertising or other marketing tools, they also cost less to support since they use their
friends who referred them for advice rather than using the companies’ own technical desk.
 Delivering Content Value to engage the user’s interest is the critical importance in
retaining customer participation. This is because content serves as a powerful
differentiator. Content would include Product enhancements (Software patches for
glitches), personalized interactions (through customized navigation paths as seen on the
web sites of GM and Toyota) and Problem Resolution (updates of delivery schedules and
e-mail responses). Integral to the concept of delivering proper content value is innovation.
The retail financial services industry, for example, is changing rapidly with multiple
players jockeying for position. Product innovation serves as a key tool to attract new
customers.
Priceline.com, for example, has revolutionized the travel and related services business by
letting in a form of ―buyer driven commerce‖ ----Customers specify their desired prices
and competing companies then bid for customer requirements. Delivering proper content
to make existing customers in the traditional ―brick‖ business switch to Web-enabled
transactions makes a lot of sense because in every conceivable case, the cost of Web-
Based transactions is an order of magnitude less than the traditional ways and is
decreasing at a faster rate.
 Ensuring E-Loyalty is vital to the success of any online venture. This is because
acquiring customers on the Internet is enormously expensive and unless those customers
stick round and make lots of repeat purchases over the years, profits will remain elusive.
Contrary to the general view that Web customers are notoriously fickle, they in fact follow
the old rules of customer loyalty. Web customers stick to sites that they trust and with time
consolidate their purchases with one primary supplier to the extent that purchasing from
the supplier’s site becomes part of their daily routine. The issue of trust is integral to the
issues of privacy and security. Companies like Amazon.com, which command amazing
levels of consumer trust, have used a variety of encryption tools ad simple ethical
decisions like not accepting money for publishers for independent book reviews to
maintain the trust of its customers.

31
 E-Learning to facilitate personalized interactions with customers has been the biggest
contribution of the Web to the marketing strategists. Customers in traditional bricks-and-
mortar stores leave no record of their behavior unless they buy something—and even then
the date might be sketchy. In the digital marketplace, however technology has made the
entire shopping experience a transparent process. For example, if the customer exits the
web-site when the price screen appears, he is a price sensitive consumer. Such minute
tracking of customer behavior has major implications for the world of advertising. The
Internet may soon be used as a test bed for testing prototypes of marketing and advertising
campaigns. By monitoring pages selected, click through, responses generated, and other
indicators, the company would be able to discover which parts of a prospective campaign
would work, thus reducing the risk of a potential flop. This would make it possible for the
company to modify its product offerings much earlier than usual in the product life cycle.
 Providing Digital value to the evolving consumer through his life cycle has become
possible because of customized interactions and emerging business models. These models
have often disturbed the traditional status quo and created new rules of business. The
sectors where new business models will emerge or have emerged are the music industry,
the financial services industry, the travel industry, the relating segment and the publishing
segment. Digital value is delivered to the consumer by promising him convenience,
allowing the customer to feel his ownership of the Web experience, and giving the
customer a sense of belonging that traverses the physical boundaries.
IN

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5.Constrains and Overcome of E-commerce
implementation
5.1. Constrains of E-commerce implementation in Bangladesh
Bangladesh’s Public power sector is inadequate. Overloading and lack of maintenance cause
frequent outages and necessary planned blackouts. How can a country like this be able to provide
E-commerce, when the main component, ―e,‖ is never there. The Country’s telecommunications
services are inadequate. 60% of the lines are analog, and the quality of the service is poor; there is
a 30% connectivity rate. The followings are the obstacles in e-commerce implementation:
1. Bangladesh’s Public power sector is inadequate. Overloading and lack of maintenance
cause frequent outages and necessary planned blackouts. How can a country like this be
able to provide E-commerce, when the main component, ―e,‖ is never there!
2. Difficulty of obtaining merchant accounts with e-commerce service providers, even where
these exist;
3. Lack of appropriate commercial know-how and technical skills to go about setting up e-
commerce activities;
4. Absence of a peer group to share experiences and develop strategies and solutions for their
special brand of e-commerce, since this is such a new activity.
5. The Internet and e-commerce is a global phenomenon, so therefore it behooves the region
to adopt international standards.
6. Lack of appropriate trainers to teach the E-commerce Knowledge.
7. Lack of Government’s rules and regulation.
8. Bangladeshi’s Policy for?
9. E-commerce is not adequate for good result.
5.2. Overcome of E-commerce implementation in Bangladesh
Our Bangladeshi students should be more aware about Information Technology and they should
take proper decision to build their career. It will be only possible when there will be political
commitment with better IT infrastructure, internal network, country domain and above all a high
speed fiber optic link to the Information Superhighway. The presence of the following pre-
conditions is inevitable successful e-commerce implementation:
5.2.1. Human Resource Development
a. IT Training
IT training, including computer literacy rate, in Bangladesh is relatively poor due to
insufficient facilities in both the private and public sector. IT training needs to be substantially
encouraged in the nation through formal and informal means.
b. Establish IT university

34
An institute of higher learning, solely dedicated to the IT Discipline needs to be established
offering graduate and postgraduate degree programs in IT related areas.
c. Harmonize standards for training institutes
As a result of expanded interest in the IT field, numerous institutes have been established by
the private sector. To ensure standard and quality of IT education steps need to be taken to
monitor, evaluate and certify the training being impacted by these institutes.
5.2.2. Financial System
a. Computerization
Financial systems, which are currently highly hardcopy-based, should be encouraged to
become a ―paperless‖ environment through wide scale computerization.
b. Problems of telecommunication line
The financial sector is highly dependent on the quantity and quality of lines of communication.
Special attention needs to be given to resolve the telecommunication needs of the financial
sector.
c. Domestic clearing
Domestic clearing of financial instruments needs to be encouraged and substantially improved.
d. Foreign exchange credit cards
The control of foreign exchange should be liberalized gradually, starting with the FC inflows,
and issuance of internationally honored credit cards should be allowed. Maximum limits on
credit cards should be further liberalized, but can also be reviewed to preclude flight of capital.
e. Venture funds
Formation of venture funds, as well as non-collateral based loans to support the IT sector
should be encouraged.
f. International gateway
An international gateway to support the financial sector should be established.
g. Foreign exchange limits/export definitions to be revised for export sales through E-
commerce
Accessibility of the private sector to the foreign exchange earned through exports should be
reviewed and liberalized. Definition of ―exports‖ needs to be broadened to include exports

35
through non-traditional means, such as e-commerce, for them to utilize the benefits granted to
exporting companies (as in EPZs).
5.2.3. Telecommunications
a. International broadband under Ministry of Post & Telecommunication
Ministry of Post and Telecommunication controls the entire outside plant (OSP) or cabling
network, which is exclusively copper-based. Bandwidth limitation remains a chronic ailment to
the customer and steps need to take to increase accessibility to wider international bandwidth.
b. Privatize Telecommunication and Telegraph
Steps need to be taken to privatize BTTB. Private sector should be encouraged to provide basic
telephony nationwide.
c. Independent Regulatory Authority for telecommunication
Bangladesh Telecommunications Regulatory Commission (BTRC) should be allowed to
operate independent of government influence and control.
d. Open telecommunication market to new investment
Allow the private sector, national and international, to invest in the telecommunications sector.
e. Resell restrictions to be lifted on Grameen Fiber Optic for data transmission
The provision of obtaining permission from MOPT prior to leasing the capacity from Grameen
Phone’s optical fiber network should be abolished, particularly when the usage is for the
transmission of data.
f. Legalize Voice over Internet Protocol (VOIP)
VOIP enables bypassing expensive traditional telephony and helps the user utilizes the full
benefits of Internet connectivity.
5.2.4. Methodology
The study undertook exploratory and empirical research approaches. The purpose of the study
refers to perform qualitative and quantitative statistical analysis using both primary and
secondary data.
a. Study Setting
The paper first attempted to address the e-business adoption behavior. Thus the study first,
determined benefits of e-commerce adoption then investigates which of them are perceived

36
strongly by the E-Business and finally looks challenges and opportunities of successful e-
commerce implementation.
b. Research Design
The research revealed that business organizations in different types and Natures have different
states of intention to adopt electronic means in managing their day to day operations as well
as searching customers and performing transactions. It depends on many factors,
organizations skills in handling the digital technology, nature of business and compatibility of
the technology with the ongoing activities and existing values.
c. Population and Sampling Plan
The study investigated perceptions of different business organizations from different location
of Dhaka Division in Bangladesh. Using judgment sampling technique, the study included a
number of organizations from different locations with different nature, business character, size
and profitability.
d. Sources of Data
Both primary and secondary sources were used for the research purpose. The secondary data
sources were-journal, books, internet etc. Primary data was collected through household
survey by using appropriate research instrument.
 Primary Source: Primary data have been collected from few executives of the E-
commerce organizations. I asked them some questions by visiting a branch & through
mobile phone. Observation method has also been used.
 Secondary Source: Beside primary data, necessary secondary data have been
collected from the websites, textbooks on e-commerce practice. I also used data from
several e-based companies’ annual report.
e. Data Collection Procedures
Primary data are collected by administering a survey with direct interview approach. A
structured questionnaire was used to get customers opinion on different issues. The
questionnaire is to be divided into two parts; first part contains some structured questions and
the second part includes questions for understanding respondent’s demographic variables and
future intention.
f. Data Analysis
Data purification and analysis were carried out through SOWT analysis and CBA.

38
6.Case Study on E-Commerce Business
6.1. Case Study on Bikroy.com (C2C)
Bikroy.com is a Sweden based C2C e-commerce site launched in 2012. This Site is for classified
advertisement of new or second-hand products or services. Here one can post private or individual
ads for free of cost. Above 50 ads posting categories are available there. Like advertisements for
cars and vehicles, property, electronics, home appliances and personal items, sport and hobby
items, and jobs. You only need to set a password against your advertisement and you email
address. Every post is reviewed by bikroy.com officials. Site primary language is Bangle, but
there is English support. And a good help and support system, good looking and clean UI.
Nils Hammar, the CEO of Bikroy.com was one of the first 20 team members at Skype and is the
co-founder of Kindo.com. Through Bikroy, Nils endeavors to make interactions between buyers
and sellers more efficient, as well as providing a platform for SMEs to place themselves on an
online market.
Anyone with access to the Internet can conduct business through Bikroy.com. Free classified
advertising is also regarded as one of the most powerful tools for online advertisements over the
Internet. Entrepreneurs in Bangladesh can also promote their business free of cost at Bikroy.com.
After posting an advertisement at this site, if a buyer interested to buy the product then the buyer
and seller contact privately over phone call, SMS or by email. Bikroy.com is not responsible for
any transactions. They don’t have any transaction system of their own. Buyer and seller complete
their transaction privately as they want.
They have free mobile application for android and IOS. Recently Bikroy.com launched delivery
service. If a buyer wants to get the product at their home, now they can get it by using bikroy.com
delivery service.

39
6.2. Case Study on Kaymu.com.bd (B2C)
Kaymu is the leading online marketplace for e-commerce business in Bangladesh. It sells every
kind of products like, books, mobiles & tablets, fashion wear and accessories, electronics,
jewelry, home and living products, kid’s products and many more. This is the one stop solution
for customers to find their products online. They enabled a platform for the end customers to buy
and sell basically anything online.
Kaymu Bangladesh Ltd started its journey in Bangladesh around October 2013 launching on
November 2013. Their parent company is Rocket Internet, which is the world's largest Internet
incubator. It was found in Berlin, Germany in 2007.
Kaymu's business is mainly focused on the buyers and sellers. The sellers are the clients who sell
products in the website and they focus on them because the only way to makes money is if the
sellers make money. The sellers just have to agree on a commission percentage that will be
charged only and only if they sell anything through this site.
They do extensive marketing for its sellers but charges nothing for that. Sellers are given e-stores,
promoted through SEO, SMM, Blog posts and newsletters for free of cost. If the seller sells
anything, only then the commission is charged. Since there is no fixed cost, the risk is low.
Sellers have their own delivery partners which they use to deliver the products. Sellers are
responsible for communicating with the customers once an order is placed and deliver the
products accordingly. The customer service team from Kaymu calls up each and every buyer to
see if they have received the product on time and to get their feedback on their purchase from this
site.
By focusing on obtaining quality sellers, they ensure buyers get good products and good services
from good sellers and get competitive deals from sellers and are satisfied.

41
7.FINDINGS
1. In present day’s e-commerce business is not that much popular among customers in
Bangladesh. But it has a great potential.
2. Customers are not that much used to with the c-commerce business.
3. Customers are highly information seekers. They collect more information about quality,
price and refer customer’s experiences before purchasing a product.
4. B2C companies have long been considered more sophisticated in digital commerce.
5. Advertisements have high impact for creating stimulus in customers.
6. Usage of internet and device, like mobile, tab, laptop usage is increasing day by day at a
significant rate.
7. Mobile apps of any e-commerce business give more user friendly experience to the
customers.
8. By going online one existing brand can boost their sell.
9. Brands want to build a cool presence over digital platforms because the customer will do
research about the product after seeing an advertisement.
10. In recent time TVC and PPC is not popular for an e-commerce business. Now E-
commerce business is only relaying on digital marketing for promotion.
11. Social media like Facebook, YouTube and twitter is the most effective channel for social
media promotion in Bangladesh.
12. Brands are getting more touch points to reach target group in a cost effective manner.
13. Integrated digital plan part of marketing plan - digital becomes part of business as usual.
14. A survey result shows that Digital marketing budgets average 3.1% of company revenue
and will increase 10% this year.
15. Multi-channel digital marketing strategy will deliver good results for your business,
focusing on diverse channels will deliver even better results.
16. Getting good results is not a simple ―post and let go‖ strategy style as this will simply lead
you to nowhere. The marketer should be familiar with ―7Ps‖ concept in marketing.

42
17. In Bangladesh there are some 3rd party digital marketing companies are providing service
to their clients.
18. As the social media users are increasing day by day in Bangladesh, they are helping digital
marketing strategy to work more effectively and efficiently.

44
8. CONCLUSION
Thousands of organizations have gone online in last few years, having realized the importance of
the Internet e-commerce. And many have started their own e-commerce business. The rapid
growth of internet usage and social media, adoption of ICT in different sectors and availability of
mobile phones have reshaped the way of communication and demand utilizing its potentials to the
development of trade and commerce. Business and transactions over internet has become easier.
As I mentioned in the report that now in Bangladesh e-commerce business is totally dependent on
digital marketing. Now digital marketing is not only concerned with placing ads in portals, it
consists of integrated services and integrated channels. It indicates that the future of marketing is
in the hands of digital. Digital media is the best platform to convert a product to a brand. Because
it is more cost effective and it provide lot of touch points to marketer. Digital platforms help to
increase the impact of brand recall in target groups. Digital media is the only platform for two-
way communication between brands and customers. Most importantly customers are highly
information seekers so a business or brand can able to engage their target group in an effective
way through digital platforms. Brands want to build their presence over digital platform, because
customers have high affinity towards digital media than other media’s.
This project report will be at most useful for marketers to understand the e-commerce business
and digital marketing scenario in Bangladesh.

46
9. REFERENCES:
 S.M. Mehdi Hassan, (August 6th, 2014): History of E-commerce in Bangladesh. Article Source:
http://ecombd.net/2014/08/history-of-e-commerce-in-bangladesh/
 E-Commerce in Bangladesh. Article Source:
http://www.assignmentpoint.com/business/banking/e-commerce-in-bangladesh.html
 Asams V.K: Understand The Ecosystem In Digital Media Marketing. Source:
http://www.slideshare.net/ashamsvk/project-report-on-digital-media-marketing
 Ahmed Saad Ishtiaque, Adib Sarwar (January 31, 2016): E-commerce in Bangladesh. Source:
http://archive.dhakatribune.com/business/2016/jan/31/e-commerce-bangladesh
 e-Commerce in Bangladesh: http://e-cab.net/resource-center/bangladesh-e-commerce-
sector/
 Elaboration of data by International Telecommunication Union (ITU), World Bank, and United
Nations Population Division. Source: http://www.internetlivestats.com/internet-
users/bangladesh/
 Internet Subscribers in Bangladesh (July, 2016). Source:
http://www.btrc.gov.bd/content/internet-subscribers-bangladesh-july-2016
 About Bikroy.com: http://bikroy.com/
 About kaymu.com: http://www.kaymu.com.bd/
 Internet in Bangladesh (January, 2016):
https://en.wikipedia.org/wiki/Internet_in_Bangladesh
 Mobile Phone Subscribers in Bangladesh (January, 2016):
http://www.btrc.gov.bd/content/mobile-phone-subscribers-bangladesh-january-2016

A Project on Digital Marketing Initiatives and E-commerce Perspectives in Bangladesh.

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