Slide 1

2 Chapter 15 International Marketing

Slide 3 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

Slide 4 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 5 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 6 Key Characteristics of international orientations

Slide 7 Entry Mode – Is it Still an Issue?  exporting  licensing  contract manufacturing  management contracting  joint venturing  wholly owned subsidiary  multinational corporations

Slide 8 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 9 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 10 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 11 Improving inter-organisational relationships

Slide 12 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 13 Top 10 International On-line Markets

Slide 14 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 15 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