International Marketing

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Chapter 15

• International Marketing

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Learning Objectives

• After 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

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