1. Electronic Marketing: Integrating Electronic Resources into the Marketing Process, 2e 11/10/2015  2004 Joel Reedy and Shauna Schullo Electronic Marketing Chapter 18 Implications to the International Marketing Program

2. Electronic Marketing: Integrating Electronic Resources into the Marketing Process, 2e 11/10/2015  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

3. Electronic Marketing: Integrating Electronic Resources into the Marketing Process, 2e 11/10/2015  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

4. Electronic Marketing: Integrating Electronic Resources into the Marketing Process, 2e 11/10/2015  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

5. Electronic Marketing: Integrating Electronic Resources into the Marketing Process, 2e 11/10/2015  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

6. Electronic Marketing: Integrating Electronic Resources into the Marketing Process, 2e 11/10/2015  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

7. Electronic Marketing: Integrating Electronic Resources into the Marketing Process, 2e 11/10/2015  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

8. Electronic Marketing: Integrating Electronic Resources into the Marketing Process, 2e 11/10/2015  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

9. Electronic Marketing: Integrating Electronic Resources into the Marketing Process, 2e 11/10/2015  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

10. Electronic Marketing: Integrating Electronic Resources into the Marketing Process, 2e 11/10/2015  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

11. Electronic Marketing: Integrating Electronic Resources into the Marketing Process, 2e 11/10/2015  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

12. Electronic Marketing: Integrating Electronic Resources into the Marketing Process, 2e 11/10/2015  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%)

13. Electronic Marketing: Integrating Electronic Resources into the Marketing Process, 2e 11/10/2015  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

14. Electronic Marketing: Integrating Electronic Resources into the Marketing Process, 2e 11/10/2015  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

15. Electronic Marketing: Integrating Electronic Resources into the Marketing Process, 2e 11/10/2015  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”

16. Electronic Marketing: Integrating Electronic Resources into the Marketing Process, 2e 11/10/2015  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

17. Electronic Marketing: Integrating Electronic Resources into the Marketing Process, 2e 11/10/2015  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

18. Electronic Marketing: Integrating Electronic Resources into the Marketing Process, 2e 11/10/2015  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

19. Electronic Marketing: Integrating Electronic Resources into the Marketing Process, 2e 11/10/2015  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

20. Electronic Marketing: Integrating Electronic Resources into the Marketing Process, 2e 11/10/2015  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