MKTG2032 / MKTG7037 E-Marketing

The Internet. Neither a truck nor a series of tubes

MKTG7037 / MKTG2032

E-marketingWeek 13

Course StructureWeek No Week beginning Topic(s)/Task(s)

1 19 February Chapter 3 Unique features of internet-based marketing

2 26 February Chapter 4 Consumer behaviour

3 5 March Chapter 5 Creating cybercommunities

4 12 March Chapter 6 Applications for business and non-business

5 19 March* Chapter 7 The internet in marketing strategy

6 26 March Chapter 8 The role of product in internet marketing

7 2 April Chapter 9 Promotion: the internet in the promotional mix

8 23 April Chapter 10 Promotion 2: the internet as a promotional medium

9 30 April Chapter 11 Pricing strategies

10 7 May Chapter 12 Distribution

11 14 May Chapter 13 Services marketing online

12 28 May Chapter 14 Relationship marketing

13 21 May Chapter 15 International marketing

MKTG2032 / MKTG7037 E-Marketing

The Internet. Neither a truck nor a series of tubes

International Marketing

Internet and international marketing

• Not all web-based marketing can be realistically classified as international.

• While anyone, anywhere can access the promotional and informational materials on a site, accessing the full range of services and products may be limited by geographical and other constraints.

Classification of web sites

• Web sites can be classified in terms of their commitment to globalisation:– Domestic: web sites that offer goods only to

those within the local area– International by default: they do not actively

seek international clients but will nevertheless provide goods/services

– International by design: they have full international orientation and actively seek external markets for their goods/services

Characteristics of different international orientations

Trends in global Internet marketing

• Rugman’s ‘myths’ of globalisation:– Global strategies– Single world markets– Free trade and free market access

• Rugman provides three basic rules:– Think local, and act regional– Pay attention to government rules– Recognise the world trade blocs of Europe,

America, Japan etc.

Globalisation

• Globalisation: develop a successful domestic strategy and use as a formula for expansion

• Choice is whether to base the strategies for all markets on one winning formula or to modify and adapt to local conditions of the new market

• Levitt a major proponent of this approach

Localisation

• Emphasises the unique nature of different markets and develops a unique marketing mix for each

• May have an ‘international’ scope; however, it markets specifically or locally to a particular market

• This approach presumes that markets and consumers vary considerably because of culture and country

Two tiers of trading

• Be aware of:– Cultural – Societal– Economic history

• Language issue– Internet is dominated by English

• Consumers have different motivations to buy same product

Entry mode

• Exporting• Licensing• Contract manufacturing• Management contracting• Joint venturing• Wholly owned subsidiary• Multinational corporation

Types of exporters

• Regular exporters• Sporadic exporters

Impact of the Internet on barriers to export

• Barriers can be grouped into four categories:

– Psychological barriers– Operational barriers– Organisational barriers– Product/market barriers

Internet applications in overcoming the barriers

Internet applications in overcoming the barriers

(contd)

Source: Hamill, J. 1997, ‘The Internet and international marketing’, International Marketing Review, vol. 14, no. 5, pp. 300–23.

Conceptual framework for exporting and the Internet

Source: Samiee, S. 1998, ‘Exporting and the Internet: A conceptual perspective’, International Marketing Review, vol. 15, no. 5, pp. 413–26.

Discussion Questions for the Board

• Make a LOLCat Macro.