312MKT International Marketing Lecture Fourteen

Learning objectives To identify opportunities and challenges for global marketing posed by enabling technologies To explore examples of enabling technologies To identify alternative e-marking business models To consider the impact of enabling technology on global marketing strategy implementation

The Enabling Technology Technological advancement have enabled innovative firms to make product and service development that provides distinctive benefits to customers A technology can be tailored to serve a specific sector and eventually be transferred to other sectors (e.g. Internet, Facebook) Technological platforms provide opportunities for many new developments (Doole and Lowe, 2012)

Technology: Solutions and Practical Application Enables creative solutions to be found which will increase the organization’s competitive capability and advantage: Access from remote locations – facilitates awareness and usage Creating new product of service New route to market Lower energy consuming process Integration of technology and technology gadgets (Doole and Lowe, 2012)

Technology: Solutions and Practical Application Provides new platforms for advertising (e.g. online advertising, mobile advertising) Opportunities for Advertising Innovation JCDecaux Innovate International 2014 (Outdoor Advertising) https://www.youtube.com/watch?v=Gw0Gfp5LVgQ (Doole and Lowe, 2012)

Technology: Solutions and Practical Application New communication mechanisms preferred by many users for social and business networking (e.g. Twitter, LinkedIn) Enable customers around the world to continually develop more efficient and effective integrated marketing communication, word, video imagery, sound and complex data (Doole and Lowe, 2012)

E-commerce Significant growth trend in developed markets and several emerging markets, less so in LDCs Empowers SMEs to ‘go global’ and compete with established multinationals Empowers consumers to influence companies’ operations on several levels: co-creation & co-brand management; WOM; participation in supply chains Helps to improve internal communications & therefore allows more integrated implementation of strategies

World-wide technological advancement WWW & e-business Social networks Virtual conferencing & communications Mobile phone apps & augmented reality Greater & swifter communication Increased transparency: consumer accessibility; competition; risks; consumer power!

Technological Advancements Shaping the Future Examples from LG's OLED DISPLAYS Weblink: https://www.youtube.com/watch?v=hGvMfe85i30

Growing importance of e-media

Growing importance of e-media

Online Strategies The internet provides a global market place and is open to everyone: Method for collecting, researching, exchanging data An alternative route to the market A mean for building customer relationship A virtual market place (Doole and Lowe, 2012)

Websites Organizing sites Service online Information online (e.g. Wikipedia, financial times) Business transaction online Social networking (Doole and Lowe, 2012)

E-Marketing Business Models Business to Business (B2B): Interactions are more complex involve exchange of huge amount of information, which include: Specifications, design, drawings, purchase, contracts, supply chain management, manufacturing and delivery schedules, negotiation of price many users for social and business networking Distribution channel management and delivery (Doole and Lowe, 2012)

E-Marketing Business Models Business to Consumer (B2C): Provides a satisfying experience for consumers: Borrows through information Adopt to cultural differences and sensitivities (e.g. language alternatives) Purchase online Provide freedom of choice (e.g. find out information and choose to buy online or in store) (Doole and Lowe, 2012)

E-Marketing Business Models Consumer to Consumer (C2C): Internet business models involving consumers selling to each other though online auctions: Online bidding (eBay) (Doole and Lowe, 2012)

Technology: Challenges Technological advancement can make existing products and services redundant (e.g. Kodak) The economics of telecommunication firms were challenged and changed with the introduction of mobile and internet systems (e.g. Skype) Lack of unique selling offers, propositions and competitive advantage make firm vulnerable to global competition (Doole and Lowe, 2012)

Technology: Challenges High cost of e-business operation Require sophisticated systems to fulfil orders promptly and accurately and need to innovate constantly to retain customer interest loyalty Consumers decisions in e-commerce are affected by cultural issues Global bias Effectiveness of websites is effected by many factors Lack of proactive legislation (Doole and Lowe, 2012) (

Technology: Challenges International environment restrictions still apply (culture, language, legislation, politics etc.) Consumers & businesses react in different parts of the world react to marketing initiatives in different manner Technology may increase access but DOES NOT increase control Penetration & perception of technology varies significantly (Doole and Lowe, 2012)

Technology: Challenges Market intelligence collection may be easier – not necessarily more accurate though! Pricing strategies require careful evaluation – grey markets, consumer access to information & power to overturn company decisions (boycotting, anti-consumption discourse) Harder to protect copyright & intellectual rights (Doole and Lowe, 2012)

Technology: Impact on International Marketing Strategy The Impact of Technology on Analysis Much of the data that must be gathered from around the world can be more effectively collected, managed and communicated through integrated web-based systems. Point of sale information can be collected and analysed by retailers on a daily basis to provide information about sales volumes and thus facilitates appropriate action to be taken (Doole and Lowe, 2012)

Technology: Impact on International Marketing Strategy The Impact of Technology on Strategy Development Main source of competitive advantage. Allowed firms to compete in terms of costs (e.g. minimize labour costs) through advanced technological business processes Enhances knowledge management of the firm’s intellectual property and assets Contributes to effective management and contributions to supply chain to maximize consumer value (Doole and Lowe, 2012)

Technology: Impact on International Marketing Strategy The Impact of Technology on Strategy Implementation Product service management Pricing Channel management Communications Control evaluation and learning (Doole and Lowe, 2012)

Additional income generation streams for e-commerce based companies Subscription/Licence Pay per use / per set period Advertising ‘Click through’, ‘Pay per Click’, ‘Google Search’, LinkedIn advertising (both for businesses & individuals) Facebook stores

Trends on the Rise https://www.youtube.com/watch?v=vDNzTasuYEw Consumer empowerment Social network stores Augmented reality Consumer co-creation & co-brand management Weblink https://www.youtube.com/watch?v=vDNzTasuYEw

Readings: Doole & Lowe: Chapter 12