1. The International Environment of Internet Marketing Chapter Six

2. Copyright © Houghton Mifflin Company. All rights reserved.6–26–2 Chapter Six Learning Objectives To learn how international orientation affects internet marketing strategy To understand why marketing internationally is more complex than solely domestic internet marketing To determine the current status of major international Internet markets To appreciate the importance of international issues that concern Internet marketers

3. Copyright © Houghton Mifflin Company. All rights reserved.6–36–3 International Orientation International Internet marketing –International marketing in electronically mediated environments Internet, web, intranets, extranets International strategy –Exclusionary = solely domestic home-country –Inclusionary = attempting to target, reach, interact, and trade internationally

4. Copyright © Houghton Mifflin Company. All rights reserved.6–46–4 International Orientation (cont’d) Orientation Factors That Affect International Orientation Current Strategy Market Offer Customer Demand Management Competitors Domestic Economic Conditions Serendipity

5. Figure 6-1: International Internet Marketing Involvement

6. Copyright © Houghton Mifflin Company. All rights reserved.6–66–6 Selecting International Markets Desirability depends to a great extent on the match between –A business’s goals and resources –The market’s potential and risks Target based on –Serendipity (unexpected buyers) –Current buyers –Economic factors –Internet readiness

7. Copyright © Houghton Mifflin Company. All rights reserved.6–76–7 Selecting International Markets (cont’d) Least-internet-ready areas (LIRAs) –2 billion people, 35 percent of world’s population Internet-ready areas (IRAs) –3+ billion people, 50 percent of world’s population Internet leaders (ILs) –1 billion people, 15 percent of world’s population

8. Copyright © Houghton Mifflin Company. All rights reserved.6–86–8 The International Internet Population The Americas –Internet leaders United States and Canada –Slowly increasing in Mexico, Brazil Europe –France, Germany, Netherlands, Italy, Sweden, UK are 80 percent of European Internet population –Rapidly growing consumer and business use

9. Copyright © Houghton Mifflin Company. All rights reserved.6–96–9 The International Internet Population (cont’d) Asia and Oceania –Japan, China, South Korea, Australia, New Zealand –China expected to become dominant in the area Other regions

10. Copyright © Houghton Mifflin Company. All rights reserved.6–10 International Issues Language Year 2000 marketed turning point for English domination Importance of using local language U.S. Hispanic market very attractive

11. Copyright © Houghton Mifflin Company. All rights reserved.6–11 International Issues (cont’d) Culture Behaviors, customs, beliefs, coping mechanisms, art, rituals, language, other factors Online culture is an extension of offline culture –Look and feel of a web site –Acceptable colors –Measurements and standards –Acceptable promotions and pricing

12. Copyright © Houghton Mifflin Company. All rights reserved.6–12 International Issues (cont’d) Sites can be culturally neutral Culturally local Culturally U.S.-Centric A fully internationalized web site requires culturalization

13. Copyright © Houghton Mifflin Company. All rights reserved.6–13 International Issues (cont’d) Government intervention Privacy standards Regulation Taxation Censorship Fraud Other factors