2. 312MKT International Marketing
Lecture Fourteen

3. 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

4. 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)

5. 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)

6. 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)
(Doole and Lowe, 2012)

7. 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)

8. 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

9. 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!

10. Technological Advancements Shaping the Future
Examples from LG's OLED DISPLAYS
Weblink:

11. Growing importance of e-media

12. Growing importance of e-media

13. 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)

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

15. 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)

16. 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)

17. 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)

18. 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)

19. 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) (

20. 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)

21. 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)

22. 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)

23. 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)

24. 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)

25. 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

26. 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

27. Readings:
Doole & Lowe: Chapter 12