VIRTUAL WORLD MARKETING IN
EGYPT
A SURVEY OF VIRTUAL MARKETING AMONG
YOUTH
Dr. Nagwa El Gazzar
Professor of Communication
Misr International University
We live in the age of virtual customer
In the Internet age, customers often find the business
(instead of the other way around).
Although the Internet has made it perfectly reasonable
to meet customers you've never met in-person, it has
also created new expectations among consumers.
Understanding the way business has shifted in the
Internet age of a country like Egypt, can help
businesses bring the potential of marketing into the
virtual world.
What is meant by Virtual Marketing
A virtual experience is a simulation of a real or physical
experience, occurs within a computer-mediated environment,
located between direct (i.e., product trial) and indirect (i.e.,
traditional advertising) experience along the spectrum of
consumer learning.
It is part of a larger spectrum of direct marketing techniques,
where marketing of products and services can happen
directly without being into a retail store. It can happen
through TV, a catalog, or computer mediated environment.
Marketing in a Virtual World
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The Internet has the ability to serve as a more powerful
marketing medium than traditional print or broadcast media.
Consumers are able to interact with products in 3D multimedia
environments, thus simulating a new form of experience—a
virtual experience.
The introduction of (3D) product visualization technology as a
new form of rich media advertising, enabled consumers to
interact with a virtual product much like they would with a
physical product.
Virtual Marketing worldwide
Stemmed from direct marketing
 Through catalogs/ direct mail/ print media
 Direct response radio, TV networks
 The internet, e-commerce
 And now: marketing of brands, introducing new
products in second life “virtual worlds offer a new way for businesses to
inject their brands”.
In Egypt, who uses the internet/ practice
virtual marketing? (MCIT.gov)

The Internet has grown quickly ...
The number of internet users increased to 13 million users (by the end of Jan.-March
2009) compared to 9.84 million in 2006.

Government and Citizens Relationship
34% of Egyptian government entities use the Internet. 78% of government entities that
use the Internet had a website or web presence by June 2008.

A growing number of Egyptian private enterprises conduct business over the Internet
Egyptian private enterprises using the internet increased to 59.6% .
Around two-thirds of the enterprises engaging in e-commerce in Egypt use the Internet to
receive and sell goods & services, (67.6%), place orders and buy goods/services , or
use it to receive technical and financial offers, while more than half (53.7%) use it to
advertise their goods and services.
Private enterprises are gaining
significantly from using the Internet
93% of Egyptian private enterprises using the Internet in 2008
considered that it helped them to:


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speed up their operations,
(53%) believed it increased customer accessibility.
Other benefits included reducing transaction costs, and
increasing security.
Market potentials of e-marketing in
Egypt

Still, usage could be increased among the elderly, women and people with
low incomes. Individuals aged from 16 to 54 years are 59% of Egypt’s
population and 94% of the country’s Internet users.
Individuals aged from 55 to 74 years constitute 8.15% of the population
and only 5.8% of the country’s Internet users.
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The gap in Internet usage between males and females in Egypt is
decreasing – (changed from Male/Female 61/39% in Jan 2008 to 59/41
in Jan 2009).
Also the gap between urban and rural areas is clear with regard to
household use of ADSL.
Environment of virtual marketing in
Egypt
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Websites that use virtual marketing as their major promotion tool
such as altawfir.com, aswak.com, otlob.com , egyptecommerce.com
(which is devoted for making trade or business with Egypt),
www.elmosky.com (specialized in wholesale via the internet or
telephone for the Egyptian market), www.speedsend.com (ecatalogs for office procurement), wasfasahla.com.
There are few direct marketing companies that deal only through
catalogs, working successfully as Avon, Oriflame.
There is one television channel devoted for direct response
advertising- Tamima, it also uses internet in it’s sales.
Expected virtual customers in
Egypt are:

younger ages,

higher income groups,

who live in urban rather than rural
areas.
To understand how virtual marketing influence
customers - Questions to answer
What is the case of virtual marketing in Egypt:
General virtual marketing habits:
 How does the Egyptian consumer deal with virtual marketing? How does
the consumer go shopping?
 What are the most products and services that are marketed virtually?
 What are the most used websites on the local and international levels?
Facets of virtual communication:
 What is the process the consumer passes by starting from information
search and product recognition till forming an attitude towards the product
or service and finally buying the product? How these facets of
communication happen in detail?
The future of the industry
 What is the future of virtual marketing in Egypt?
Survey results:
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Sample: 164 university students, aged between 1825, A/B class. 36% males, 64% females.
They all have computers, browse the internet.
Only 16% of the sample research their purchases
online before they shop in person. They use
websites and search engines to conduct their
research.
Virtual shopping habits among
young generation
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The majority of sample 76% prefer to shop directly
at a mall, and 7% prefer to shop online than
shopping directly.
75% of the sample have virtual shopping
experience either through catalog or online, while
21% stated that they don’t prefer virtual shopping
because they are not familiar with order what they
don’t see or they suspect submitting their personal
info to someone they don’t know.
Virtual shopping habits
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The young generation buy several product categories virtually.
The most products purchased are clothes and beauty care
products, followed by PCs, mobiles and cameras, then books.
Consequently most websites they log to are of clothes as mango,
zara, H&M. Others log to specific brands websites as Nokia,
Apple, Sony,..etc.
Almost all of websites they log to are international. Only 12% of
the sample mentioned Arabic websites as Masraway or Otlob.com
Facets of virtual communication:
Awareness

When asked how do you know about the websites or catalogs
to shop from, the majority- 63% mentioned that they use
google or yahoo search bar, 16.5% write the brand name
directly, or they go directly to a website based on their
friends’ advice- 18%
Information and memorization
 How they keep the info for reference: 25% rely on their
memory for storing information, while 58% save the page or
add it to favorites.
Attitudes towards virtual shopping:

Most of the sample- 61% are aware of the variety
of forms of direct marketing since they agreed to
the statement: Shopping online is the same as shopping from TV or
print ads , I don't see the product before I receive it

They think that the practice of virtual marketing in
Egypt needs more people to believe in it and
practice it, 84% agreed and were neutral to the
statement Shopping online in Egypt will not develop because we don't
have the culture of online shopping
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Trust in internet banking
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96% of the sample supported the statement (28%
of them neutral) that highlight one of the basic
obstacles for enhancing e-marketing environment
which is the problem of trust I don't like sending personal or
credit card information over the net
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That above idea was confirmed in their support to the
statement: I don't trust websites of retailers inside Egypt.
Shopping online
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72% of the sample enjoy shopping online and
consider it great pleasure. 32% supported the
idea that it saves time, while 43% were neutral.
Maybe they consider it time consuming.
As for convenience in shopping, the majority – 52%
were neutral to the statement, and 34% disagree to
the statement Online shopping is a convenient way to buy products
I guess the reason might be customs and receiving
procedures.
Does it worth it??
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46% were neutral to the statement Shopping online worth
what I pay for it, and 33% disagreed.
The answer to why it is not worth it is presented in
their agreement to the statement – 72% Buying through
catalogs is very limited in Egypt. It is not worth it because they
don’t think there is variety online or through available
catalogs as in direct experience.
Factors important for shopping online
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Respondents were asked to give a grade for
the most important factors for them to do more
virtual shopping. The highest factors in grade
were: guarantee (57%), reputation of the
brand (50%) price (47%), displayed pictures
and technical information (44%), security of
purchases (41%)
Future intentions for virtual marketing
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64% mentioned maybe they will go online
shopping, in front of 27% said yes, I plan to do
online shopping.
The reasons that might cause them to do more
virtual shopping in the future were varied: (in order
of highest percentages) prices are better online
(33%), more 2D and 3D pictures (315), variety of
goods (28%), faster page download (24%), better
product description which is not misleading.
The future of virtual marketing in
Egypt
Egypt has great potential for practicing virtual
marketing:
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the huge market of purchasing power,
the internet facilities that are in continuous progress,
the building of banking culture,
traffic jams and inconvenience of direct shopping in
malls.
Lessons for the government:
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The number of new generation using the internet is
rapidly increasing. The government should use this
channel in communication for development.
Government should present more trust in credit
transactions, support the efforts of enhancing
internet banking. There is already a good step
from the union of banks- launched a campaign to
encourage having a bank account.
Enhancing e- commerce
Advices for the commercial sector
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Egypt is a perfect consumer market for most products.
The most two elements that give best impressions either in
obtaining precise info, or in forming positive attitude are two
pillars: the 2D,3D pictures that is worth million words, and the
description or elaboration that adds more to understanding
and push for taking action.
Providing guarantee, internet security and convenient shipping
act more towards enhancing behavior, encouraging and
pushing towards making buying decisions.
Thank you