Business and Market Overview on Philippines

ECONOMY. Philippines’s economy suffered through mismanagement under the country’s late president Marcos who ruled the country under martial law from the 1960s to 1980s. To revive the country’s economy, former president Fidel Ramos opened the country to foreign investments in the early 1990s. During Ramos’ term in office, foreign investments increased from only US$42 million in 1992 to US$2 billion by 1997. The Philippines weathered the Asian economic crisis of 1997 in much better shape than many other Southeast Asian countries due to the large number of Filipino overseas workers regularly remitting money into the country and low external debt.

Philippines’ GDP was US$85.1 billion with a GDP per capita of US$1,042 in 2004. The economy of the Philippines grew at annual GDP growth averaging 4.6% from 2000 to 2004 contributed mainly by growth in the service sector, agriculture and exports of electronics. Inflation declined from 6.5% in 2000 to 2.5% in 2002 but trended upwards to reach 8.6% by 2004. Unemployment remains relatively high compared to Thailand, Malaysia and Singapore ranging between 9.8% and 10.9% from 2000 to 2004.

The service sector contributes to half or 52.8% of the Philippines’ GDP in 2004 while manufacturing contributed 31.8% and agriculture 15.3%. Major industries include electronics, garments, footwear, pharmaceuticals, chemicals, wood products, processed foods, petroleum refining and fishing. Major agriculture products include sugarcane, coconuts, rice, corn, bananas, cassavas, pineapples, mangoes and seafood.

DEMOGRAPHY. The Philippines comprises of nearly 7,100 islands but eleven islands account for 90% of the country’s total population. Main islands are Luzon and Mindanao accounting for 65% of the population. Other major but less populated islands include Negros, Samar, Panay and Palawan. Filipino society and culture is nearly homogeneous and 90% of the population are of the Malay descent. Other ethnic groups include the various indigenous tribes and Chinese immigrants. Spanish-Mexican culture brought by the former Spanish colonial rulers who ruled the country from Mexico has an influence of Filipino culture. The country is predominantly Catholic accounting for 81% of the population followed by various Christian denominations (11%) and Islam (5%). Tagalog is the national language and widely spoken across the islands while English is predominantly used in government and business.

The proportion of the Filipino population living in the urban areas increased from 49% in 1990 to 62% by 2004. Philippines’ main city is Metro Manila (comprising of the city of Manila and 16 surrounding cities and municipalities) has a population of 10 million. Other major cities include Zamboanga, Baguio, Iloilo, Bacolod, Cebu City, Davao and Cagayan de Oro.

The Philippines suffers from a high level of income inequality and an estimated 30% of the population live below the poverty level. Another 50% of the population belong to the low-income group while the remaining 20% belonging to the middle and high-income group. The average income of those living in Metro Manila is twice than the national average.

INFRASTRUCTURE. Telecommunication services within and between the islands is adequate while international services is relatively good. Internet broadband coverage is mainly concentrated in the major cities and towns of the islands. The islands are adequately served by roads and road transport. Travels between the islands are by air or coastal boats. All the major islands are served by international and domestic airports and sea ports.

INTERNATIONAL TRADE. Philippines’s exports increased nearly 4-folds from 1995 to 2004. Major trading partners include Japan, US, China, Hong Kong, Singapore, Malaysia, Taiwan and South Korea. Main exports from the Philippines include electronics, garments, optical instruments, coconut products, fresh produce, copper products and chemicals. Main imports include machineries, equipments, fuel, vehicles, transport equipments, plastics chemicals and food grains.

CONSUMER USAGE OF TECHNOLOGY. The total number of fixed-line telephones installed in the Philippines was 3.4 million or a penetration of 8 fixed-line phones per 100 population in 2004. However, the penetration for mobile phones is much higher at 39 mobile phones per 100 population. The penetration of computers in the country is low estimated at 2% of the population while the estimated number of internet subscribers is 1.2 million and internet users is 8.0 million. The average penetration of televisions among households in the Philippines is 71% but higher in the Metro Manila at 96%.

RETAIL MARKET. There are nearly 360,000 retail establishments and the traditional “mom and pop” stores account for 98% of the establishments. The remaining 2% are the store brands comprising of hypermarkets, supermarkets, department stores, convenience stores and speciality stores. Shopping in these establishments is popular among middle and high-income consumers. These modern outlets are mostly concentrated in Metro Manila accounting for 30% of the Philippines’ total retail sales. However, many store brands are expanding their businesses outside Metro Manila into other major urban areas in Luzon and Mindanao. Between 2004 and 2007 and estimated three shopping malls will be built in the Philippines annually.

FOOD CULTURE. Like most countries in Southeast Asia and Northeast Asia, rice is the staple food in the Philippines. Filipino cooking is a blend of sweet, sour and spicy tastes. Indian, Chinese, Japanese, Mexican and Spanish cooking have an influence on Filipino food culture. Traders and immigrants introduced Indian, Chinese and Japanese cooking while the Spanish colonial rulers introduced Mexican and Spanish cooking. Filipinos are also accustomed to western foods especially American style fast foods, bakeries and snacks.

Online Business and Internet Marketing Tips – How to Launch a Successful Google AdWords Campaign

Managing a Google AdWords campaign for your online business or Internet marketing venture can be stressful at first and also very intimidating. However, there are numerous methods to launch a campaign for marketing via the Internet without requiring tiresome duties or difficult processes.

Leading pioneers like Perry Marshall have made many high revenues from his Google AdWords campaigns. He had made a step by step process on where success can be attained. Besides doing reading or going to seminars for a certain amount of time, you can do a few uncomplicated methods to uplift your campaign and expand your revenue power.

There are 5 ways to ensure that the campaign produces very successful results for your online business or Internet marketing venture. These are:

1. Use effective keyword tools. There are a lot of keyword tools or software that can be seen on the Internet. You do not really need to have a lot of money out and get the correct one needed for your campaign. An example of an effective tool for generating keyword ideas is Wordtracker where effective lists of keywords can support you with your campaign.

2. You should be aware of what competing online businesses and Internet marketers are currently doing. In this kind of business, knowing what others have or are doing is a key to success. It is a big mistake if you have not taken advantage of keywords targeted by your competition. You can see which keywords have higher bids than others and how big they want to spend so they can assure safety from others like you.

3. You should know how to use and implement advertising messages in an effective manner. AdWords advertisement can only have a few lines of text and a certain number of characters. It follows a certain limit. It requires you to have more space to be used effectively. The first 2 lines should inform your target audience of the benefits offered by your online business, products or services. These are on the left space lists. The remaining space should be used to communicate the unique benefits your target customers can gain from your Internet marketing business, products or services.

4. Do not be content with just a 2nd ad listing page for relevant searches and publisher content. If you can, you should cut down your budget price before changing your bids. Lowering your bids will push back the most wanted spot on the second page where your ads would be visible.

5. Go through a second advertisement. Testing what you have is another strategy in which Perry Marshall has tested for his Google AdWords Campaign. This is a test on which you could have answers in a more speedy way, instead of going with one ad.

These online marketing and Internet business tips will optimize the benefits you gain from your advertising and marketing campaigns. Make sure to consult experts in the industry for more tips and strategies which have worked for them. Keep in mind that the same strategies, tips and techniques will never always give you the same results. This means brush up on your fundamental knowledge about offline and online business and marketing. Doing this will surely improve your chances of increasing your online business sales and Internet marketing profits.

How to Succeed With Affiliate Business Internet Marketing Online

Like the name sounds, “affiliate business internet marketing online” is about becoming an affiliate of a business and marketing its product online. A lot of people have misunderstood this business and even distant themselves after unsuccessful attempt.

Truth is, if you understand this business you wouldn’t want to do any other kind of business on the internet. The affiliate marketing business has created more internet millionaires than any other business in the history of the World Wide Web.

There are many advantages associated with running this kind of business such as

1. You don’t have to worry about inventory, shipping or creating your own product.
2. You can automate your business.
3. You can earn residual & leverage income for life.

The number one reason why a lot of people fail in this business is because they were never committed to success. No body is entitled to success. That is the basic truth is we can only fight for success in our own ways. While some are fortunate to be born with a silver spoon others are not. Even if you happen to come from a wealthy family, somebody must have paid the price.

Most of this people who do not profit from this business often lack the skills to market their product and find it difficult mastering how it works.

You can never profit from affiliate programs unless you learn some internet marketing skills.

Below are some tips to help you start a profitable affiliate business internet marketing online.

First you need to pick an affiliate company that offers a product that is hot in the market. Do not take this first step for granted. A lot of people make the mistake of choosing a product that doesn’t have a market. You can barely succeed with a product that people don’t frequently use.

You need to ensure your product is of good quality as you will be competing with many other affiliate companies.

Secondly, you need to create your own site. Gone are the days when you use an affiliate link. If you think creating a site is too expensive you might want to take a shot at learning some HTML. The expense you will be incurring for hosting your own site is the monthly hosting fee.

Even for the reason that you will be competing with affiliates from the same company as you, should want to make you get your own site.

Thirdly, you need to learn some internet marketing skills if you don’t have any. If you have picked a good affiliate company you will be offered free trainings as well as marketing tools.

You will need to make use of a variety of marketing techniques to be successful. And because you have your own site you can take advantage of many ways to promote a site online. If you dislike the four letters word “WORK”, then am afraid affiliate program is not the best way for you to go. The good thing is when you have mastered this marketing technique you only have to rinse and repeat and the income flows.

As you can see, you need a combination of time and effort to profit from an affiliate business internet marketing online.

Best Wishes,

John Benjamin