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Chapter Six The International Environment of Internet Marketing 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 Copyright © Houghton Mifflin Company. All rights reserved. 6–2 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 Copyright © Houghton Mifflin Company. All rights reserved. 6–3 International Orientation (cont’d) Factors That Affect International Orientation Current Strategy Customer Demand Market Offer Orientation Management Competitors Serendipity Copyright © Houghton Mifflin Company. All rights reserved. Domestic Economic Conditions 6–4 Figure 6-1: International Internet Marketing Involvement 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 Copyright © Houghton Mifflin Company. All rights reserved. 6–6 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 Copyright © Houghton Mifflin Company. All rights reserved. 6–7 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 Copyright © Houghton Mifflin Company. All rights reserved. 6–8 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 Copyright © Houghton Mifflin Company. All rights reserved. 6–9 International Issues • Language • Year 2000 marketed turning point for English domination • Importance of using local language • U.S. Hispanic market very attractive Copyright © Houghton Mifflin Company. All rights reserved. 6–10 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 Copyright © Houghton Mifflin Company. All rights reserved. 6–11 International Issues (cont’d) • Sites can be culturally neutral • Culturally local • Culturally U.S.-Centric • A fully internationalized web site requires culturalization Copyright © Houghton Mifflin Company. All rights reserved. 6–12 International Issues (cont’d) • • • • • • • Government intervention Privacy standards Regulation Taxation Censorship Fraud Other factors Copyright © Houghton Mifflin Company. All rights reserved. 6–13