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2

Chapter 15

International Marketing

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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

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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),

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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

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Key Characteristics of international orientations

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Entry Mode – Is it Still an Issue?

exporting licensing contract manufacturing management contracting joint venturing wholly owned subsidiary multinational corporations

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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

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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

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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

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Improving inter-organisational relationships

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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

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Top 10 International On-line Markets

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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

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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