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Electronic Marketing
Chapter 18
Implications to the International
Marketing Program
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
Analyzing the International Markets
by Geography
• Evaluating the international marketing process and potential
is the same thorough investigation conducted through
situation analysis, marketing planning, and marketing
implementation in domestic challenges
• The market research might be more sensitive to differences
in product usage, product perceptions, and cultural
diversities
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
Analyzing the International Markets
by Geography
• Domestic marketers will be wise to carefully scrutinize
important practices that might be taken for granted in the
U.S.
– Stipulations on systems’ privacy
– Distribution of personal data
– Taxation
– Consumer protection laws
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
Analyzing the International Markets
by Geography
• International e-commerce is a complex endeavor through
such things as:
– Monitoring currency fluctuations on the value of digital
certificates
– Varying country regulations on Web site content
– Allowable types of advertising claims or sales promotions
– Levels of literacy among developing countries
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
Analyzing the International Markets
by Geography
• For assessing international e-commerce potential, a
marketer should be alert to several conditions
– Web user profiles, hopefully on a country to country review
– Web usage profiles and Internet home penetration
– Levels of interest in online shopping and projected purchasing
by category and country
– Trends in Web communications appliances
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
Analyzing the International Markets
by Geography
• Conditions continued…
– Costs of access time and computer/appliance equipment
– Products and services usage and online purchase propensity
– Sensitivity to cultural influences that might negatively affect
the product’s association with the Internet, its content, or its
technology in contemporary society
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
Analyzing the International Markets
by Geography
• The worst mistakes marketers make are failing to
investigate the market’s dynamics:
– What consumers are wanting and buying
– The level of category competition
– The differences between each market
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
Analyzing the International Markets
by Geography
• The marketer should also investigate the country’s or
region’s infrastructure including:
– Transportation for distribution
– Traditional media outlets for primary message delivery
– Standards of living
– Strength of financial systems
– Availability of reliable credit sources
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
Analyzing the International Markets
by Geography
• Infrastructure continued…
– Acceptance of credit cards for online shopping
– Sophistication and availability of communications networks
– Level of discretionary income
– National and local taxes
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
Analyzing the International Markets
by Geography
• Using the Web’s research sites, government transactions
and records, even inquiring in Usenet news groups or
listservs, the marketer can develop competitive intelligence,
country by country
– The Iconocast report is a good source of information on the
specifics on European countries
– The marketer might wish to engage a market research firm as
he would do in the U.S.
– There is an international address code that identifies every
country of origin
– The Internet Society has assigned letter country codes to
countries
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
General Demographics Information
on European and World Markets
• Sources of international demographic information are:
– United Nations’ resources
– U.S. Department of Commerce’s trade records
– International Chamber of Commerce’s services
– Private sources such as the Internationalist
(www.internationalist.com), a Web site for international
business information
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
General Demographics Information
on European and World Markets
• In the GVU Tenth User Survey, it was revealed that:
– Respondents from Europe are more likely to have been online
one to three years, while respondents from the U.S. are more
likely to have started on the Internet within the last year
– 58% of all five thousand interviewees have created a Web page
– European respondents (75%) were more likely to have created
a Web page than U.S. respondents (55%)
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
General Demographics Information
on European and World Markets
• “Europe [is] a beehive of Internet activity. According to
Jupiter Research, there will be over 200 million Internet
users in Europe by 2007
• Online penetration is important in deciding country
selection and segmentation
• An international marketer should examine proposed
markets for familiarity with Web usage and other online
technologies before launching ambitious e-marketing
programs
• What may be familiar and second-nature to most Americans
may be complicated and unclear to consumers of other
nations
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
Patience Will Be Required
• International marketing is unsettling and uncertain for many
persons
• People may be uncomfortable amid unfamiliar cultures or
environments
• Sound judgment is acquired through experience, and
success or failure will be faced in local, national, or
international assignments, even with the best research or
advisers
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
Internet Appliances in Europe
• In Europe there are many options being developed separate
form the PC
• “Among the best array of non-PC Internet appliances
emerging in Europe, Jupiter Communications research
projects that smart phones will be the market leader, with
over 12.9 million users accessing Internet content in 2002”
• While Internet appliances will not display Web sites, they
will access specially filtered content from existing Web
servers”
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
Internet Appliances in Europe
• Web sites designed for international markets should be
“sanitized,” dropping American jargon, flags, or pop
symbols that might only be recognized in the U.S.
• A more graphic approach is recommended since
photographs or illustrations can be processed visually for
consumer or business-to-business information
• Convenience, particularly when he might be using an
unfamiliar language
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
The Other Problems of International
E-commerce
• Be cognizant of the impact that the Internet has on nations
and their social and government structures
• Different countries view the effects of the Internet with
different values in protecting their citizens, their economies,
their national security, and their cultures
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
The Other Problems of International
E-commerce
• International e-commerce practices such as taxation,
consumer protection, consumer data collection, and
fraudulent operations mitigation are all new experiences and
will take years to balance
• Marketers are recently assuming a self-regulation stance
and will adjust their practices on e-commerce and online
communication to fit the country’s laws that they are doing
business with
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
The Other Problems of International
E-commerce
• The GBD goal is to generate industry-led solutions to issues
affecting electronic commerce. The nine areas that the
group will focus on are:
– Taxation
– Data security
– Online privacy
– Liability for online content
– Intellectual property-rights protection
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo
The Other Problems of International
E-commerce
• Areas of focus continued…
– Technical concerns about the Internet
– Controversial content such as pornography
– Who has jurisdiction over Internet transactions?
– Consumer confidence in e-commerce transactions
• If any laws are to be enacted, international businesses want
to be a part of the decision-making process
Electronic Marketing: Integrating Electronic
Resources into the Marketing Process, 2e
5/24/2017
2004
Joel Reedy and Shauna Schullo