Chapter global marketing and the internet. After studying this chapter you will be able to understand: Components of pricing as competitive tools in international marketing, how to control pricing in parallel import or gray markets, price escalation and how to minimize its effect, countertrading and its place in international marketing practices, the mechanics of price quotations, the mechanics of getting paid.
Trang 2Chapter Overview
1 Barriers to Global Internet Marketing
2 Global Internet Consumers
3 Globally Integrated versus Locally Responsive
Internet Marketing Strategies
4 The Internet and Global Product Policy
5 Global Pricing and the Web
6 Global Distribution Strategies and the Internet
7 The Role of the Internet for Global
Communication Strategies
Trang 3• The internet has revolutionized the international
business arena and global marketing in particular.
• Although the Internet originated in the United States,
it has rapidly morphed into a global phenomenon.
• Nearly 88 percent of the Internet company’s
business derives from outside the United States.
Chapter 19 Copyright © 2017 John Wiley & Sons,
Trang 4• Household Internet penetration in the developed
world is close to saturation.
• This chapter looks at challenges international
marketing managers face and the impact of the web
on global marketing strategies.
Trang 5Exhibit 19-1: Top 15 Countries in Internet
Usage
Chapter 19 Copyright © 2017 John Wiley & Sons,
Trang 61 Barriers to Global Marketing
• Language Barriers
– English is still the leading language on the internet, but the web is becoming increasingly multilingual
– A study by Forrester research found that business users
on the web are three times more likely to purchase when the website is in their native tongue
Trang 7Exhibit 19-2: Number of Languages Used
Chapter 19 Copyright © 2017 John Wiley & Sons,
Trang 81 Barriers to Global Internet Marketing
– Culture sensitivity also matters in website design
– Patriotism is another important consideration
• Infrastructure
– Hardware infrastructure, such as broadband penetration, Wi-Fi hotspots, security of internet connections, and the quality and coverage of the mobile phone grid play a role.– Delivery of goods bought online is another challenge
Trang 9Exhibit 19-3: Average Connection Speeds
(Q3 2015)
Chapter 19 Copyright © 2017 John Wiley & Sons,
Trang 10Exhibit 19-4: Population without Access to
Affordable Broadband (Millions)
Trang 111 Barriers to Global Internet Marketing
• Knowledge barriers
– Digital literacy is the ability to locate, understand, and
create information using digital information
– Governments have launched initiatives to improve digital literacy within their society
• Legal Environment and Government Regulations
– The host country’s legal environment is another critical
factor that affects international internet marketing
– Government regulation is necessary to defend intellectual property rights and to stamp out cybercrime
Chapter 19 Copyright © 2017 John Wiley & Sons,
Trang 121 Barriers to Global Internet Marketing
Trang 132 Global Internet Consumers
• Tasks facing global marketers
– Gaining a solid understanding of prospective
• The effect of privacy/security protection on
perceived value is strongest in countries high on
Trang 143 Globally Integrated versus Locally
Responsive Internet Marketing Strategies
• At the core of any global web marketing strategy is the conflict between local responsiveness and
global integration.
– Consumers have a higher purchase intention and
better attitude toward highly adapted websites.
• Four possible types of internet marketing strategies:
– Nationally differentiated strategies
– Pure local adaptation
– Global cost leadership
– Transnational cost adaptation strategies
Trang 15Exhibit 19-5: Global Internet Strategies According to Nature of Good or Service
Being Sold
Chapter 19 Copyright © 2017 John Wiley & Sons,
Trang 164 The Internet and Global Product Policy
• Global Branding and the Internet
– Many multinationals allow their local subsidiaries to set up their own websites.
– Some amount of coordination between sites is
required.
• Web-Based Global New Product Development
– The internet plays a role in global product design,
generating new product ideas through consumer creation, and new product diffusion.
co-– Companies leverage social media to stimulate sales
Trang 174 The Internet and Global Product Policy
• For Effective Consumer Co-creation:
– Signal credibility to potential contributors
– Create incentives to participate
– Establish a clear model of leadership
– Get the brand right before engaging in co-creation
• Diffusion of new products within and across
Trang 185 Global Pricing and the Web
• Global Pricing
– Price transparency hazards
• Reduces company’s ability to price discriminate
• Products can devolve to commodity goods
• Brand loyalties may vanish
• Consumer backlash about fairness of price
– Corporate responses to price transparency
• Align prices
• Localize products
• Refuse overseas orders
Trang 195 Global Pricing and the Web
– Not advisable to launch a new product unless its whole
positioning is value based
Chapter 19 Copyright © 2017 John Wiley & Sons,
Trang 206 Global Distribution Strategies and the
Internet
• Distribution
– Role of Existing Channels
• Replacement effect/complementary effect
• Online-to-offline (O2O) business
– E-Tailing Landscape
• Click-and-mortar retailing model
– Virtual shopping malls – E-Tailing model depends on three factors: Consumer behavior, cost structure, and government policies
Trang 227 The Role of the Internet for Global
Communication Strategies
• Global Communication and the Web:
– Online advertising advantages
• Internet’s global reach
• Get precise information about website visitors
• Instantly assess whether a particular advertisement is working
– Banner ads and search engine advertising
– Success of online campaign depends on
• The nature of the product
• The target market
Trang 237 The Role of the Internet for Global
Communication Strategies
• Nontraditional (NT) Web-Based Communication
• Online monitoring
– Counting page views
– Measuring sentiment or “buzz”
Chapter 19 Copyright © 2017 John Wiley & Sons,