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Slide Slide 11
2
Chapter 15
International Marketing
Slide Slide 33
Learning ObjectivesAfter studying this section, you should be able to:
Appreciate whether all Internet marketing is international marketing by default, or whether distinctions can be made between local and global on-line marketing
Recognise the impact of entry mode in on-line international marketing
Outline the types of export industries involved in international marketing
Explain how the Internet has impacted on barriers to exporting Recognise the framework for examining the conceptual issues
associated with international export marketing and the Internet Overview the major issues of analysing potential international
markets Outline the steps involved in implementing an international web
presence
Slide Slide 44
Quote "Luckily there are two differences between global
marketing in the digital age and exploration in the 15th
century..with a few clicks of your mouse, you can sail
around the world in a matter of seconds. You don't
have to worry about getting scurvy or being stuck in the
doldrums."
Bishop, B. (1999),
Slide Slide 55
Is all Internet marketing international marketing?
Web sites can be classified as follows domestic international by default international by design
Globalisation v Localisation two tiers of trading
– globalisation with localisation - key components include
• unique perceived value
• cultural resources and targeting
• positioning on the basis of localness
Slide Slide 66
Key Characteristics of international orientations
Slide Slide 77
Entry Mode – Is it Still an Issue?
exporting licensing contract manufacturing management contracting joint venturing wholly owned subsidiary multinational corporations
Slide Slide 88
Export Industries Types of Exporting
Types of Exporting • regular exporting
• sporadic exporting
Impact of the Internet on barriers to exports• psychological barriers
• operational barriers
• organisational barriers
• product/market barriers
On-line global information support/service based organisations
Global transactional models
Slide Slide 99
Conceptual Framework for Exporting and the Internet
Guiding principles which underpin framework in figure 15.3• sustainable competitive advantage cannot be solely derived from the
Internet
• websites do not make overnight exporters
• overall consumption is not affected by the Internet
• secure communications are essential
• the Internet can minimalise certain structural impediments to export
• Internet can apply to all firms export companies can be broadly categorised
Slide Slide 1010
Exporters - SMEs, Internationalisation and the Internet
Differences Between Traditional and On-line Exporters• creation of new sales leads;• generate international awareness of the firm;• help penetrate unfamiliar markets;• avoid setting up foreign branches; and• help with export marketing research
Interorganisational interactions between small businesses. • confederation• conjugate collectives• agglomerate collectives• organic collectives
Slide Slide 1111
Improving inter-organisational relationships
Slide Slide 1212
Global Digital Marketing Index
economic power economic growth economic stability trading level political environment
freedom of expression bureaucratic index telco infrastructure digital capabilities on-line resources
Slide Slide 1313
Top 10 International On-line Markets
Slide Slide 1414
Implementing the international web presence
Overcome personal boundaries Convert atoms into bytes Do not compete, be unique Be a specialist not a generalist Serve a specialised market Operate in advanced digital markets Develop indigenous digital partnerships
Slide Slide 1515
Use technology to foster global relationships
Seven common traps for firms moving from domestic strategy to pursuing international objectives– ranking markets on size rather than potential for growth– underestimating foreign competition– variable customer motivations– incorrect or inappropriate pricing– a lack of understanding of stages of development– inappropriate choice of partners– failure to provide adequate protection to brands