This paper will discuss the impact of Internet on the international marketing spectrum. One way to analyse this issue is through identifying the pros and cons of using internet as a marketing tool, and finally its implication for international marketers, professionals and academics. Information technology has been the cataclysm for the development of international businesses. One area, which has been given increased attention, is the explosion of international marketing activity on the Internet.According to the international data statistics of 2003, they predict that there will be approximately one billion of active users in the world by 2005, which means more electronic commerce (www. cyberatlas.
internet. com). These figures demonstrate the attention of international marketing stakeholders. The usage of Internet as a medium international marketing brings along many benefits to international marketers. Some major advantages are mentioned below: Firstly, the net acts as a gateway to global opportunities.
It allows companies, specially small and medium enterprises to position themselves globally at low cost. In addition, it alleviates the red tape regarding the prospect of doing business globally, consequently avoiding the regulations and restrictions in export countries, which normally companies should abide by if they physically enter the market ( Paul, 1996). Furthermore, low cost can also be associated with the elimination of intermediaries because Internet connects end-users to producers directly.Moreover, the global advertising costs which was considered as a barrier to entry, is now reduced as internet permits to attain the target audience cheaply ( Eid & Trueman, 2002).
Secondly, it provides accessibility. Companies which use internet for their international operations are able to increase their hours of business through email and customer ordering and interactive communication (Eid & Trueman, 2002). Although the different time zones which exist, they have increased their opportunities by providing 24 hours access for heir branch offices and consequently this results in an increase in the number and potential international customers (Paul, 1996). In addition, the one to one interaction allows marketers to build strong and sustainable relationships with their customers, which as result enhance the brand loyalty (Arnott & Bridgewater, 2002).
Thirdly, the net contribute to an appropriate form, place and time utility which create a competitive advantage to the marketeer . Instead of exasperating the customers with the different types of marketing approaches, the choice is given to the customers to decide when, where and what they want.All the company’s products are provided on the net which increase the chances of trial, purchase and repurchase (Paul, 1996). Fourthly, the net enhances advertising effectiveness. Through Internet advertising media, it is possible to achieve all advertising purposes across all possible market segments. All concerned parties can create, transmit and access advertisements on the net through a computer and appropriate software ( Paul, 1996).
However, the effectiveness of the advertisement will depend on a well design and effective marketing of the site (Hamill, 1997).Moreover, Poon and Jevons(Eid & Trueman, 2002:57) argued that hard selling and push promotion strategies are not effective on the internet. Lastly, the net improves market intelligence, market research and analysis. Studies show that the success to enter new market is systematically to gather, analyse accurate and timely information.
The Internet provides up to date information on customer contact, potential market opportunities, technical reference materials which help managers to identify shifts in product and customer trends (Hamill, 1997).Ultimately, it enables managers to capture the right product and market opportunities, from which they can mold an appropriate marketing mix relative the customers’ needs (Paul, 1996). As there are benefits of using Internet for international marketing purposes, so there are some disadvantages as well. The following shows two main constraints that affect international marketing.
One important issue concerning Internet marketing is security. As millions of people access the net everyday, Copyrights and proprietary information can be target of computer hackers and viruses.Moreover, there is also the risk that they can access the internal computer system and find out classified information (Paul, 1996). Another security issue is the financial transactions that occur over the network. By using unencrypted package, computer hackers can view the credit card number of the purchaser and cause terrible financial damages.
Nevertheless, statistics show that the Internet crime rate is on the decreasing rate due to an increase in security features (Palumbo & Herbig, 1998). One another major limit for the use of Internet as tools for international business is the structural constraints.In order to make proper use of Internet as tool for export, it is dependent on the absence of structural constraints. These constraints can take the form of computer literacy, culture, language; ownership of Pc’s which affect the efficacy of internet –based international business strategies.
For instance, all the parties involved in this particular type of transaction should be computer literate and have access to equipments. Secondly, the Internet network should be easy and affordable to access. Thirdly, regulations that impede access to Internet should be removed.For example, in china, only those who register to the public security Bureau and employees of foreign companies can have accessed to internet ( Samjee, 1998). The above discussion on the pros and cons of Internet on international marketing affect profoundly the major international marketing stakeholders in three aspects.
Firstly, international marketers should consider Internet as cost-effective tool for export and if it use appropriately can be a competitive advantage for the company. Secondly, the internet-based businesses bring up some important issues to international marketing educators.The traditional teaching of fundamental international marketing like barriers to internalization, importance of intermediaries, country screening is no longer valid. The internet requires a different radical strategic approach to this new cyberspace environment (Hamill, 1997). Lastly, international marketing educators need to ensure that their students are familiar and understand the strategic implication of Internet in order to prepare them in this new cyber world characterized by international electronic commerce.
Hence, if a business is considering internationalizing, it should consider Internet as an option.Even than there are some risks associated with its use, the benefits may outweigh its disadvantages if it is use appropriately. 10 rules Companies are well aware that hidden in their dispersed, global operations is a treasure trove of ideas and capabilities for innovation. But it’s proving harder than expected to unearth those ideas or exploit those capabilities in global innovation projects.
Some of the challenges of global projects are familiar: figuring out the right role for top executives, for example, or finding a good balance between formal and informal project management processes.But although the challenges may be familiar, the solutions are not; what works for an innovation project conducted in a single location doesn’t necessarily work for one dispersed across many sites around the world. That’s partly because many important enablers of innovation happen naturally in colocation. Single location projects draw on large reservoirs of shared tacit knowledge and trust, and when issues arise, senior management is on hand to make decisions and provide direction and support.
Team members share the same language, culture, and norms, enabling flexibility and iterative learning as the project unfolds.When a project spans multiple locations, many of those natural benefits—often taken for granted—are lost. Part of the challenge of dispersed innovation thus becomes how to replicate the positive aspects of colocation while harnessing the unique benefits of a global initiative. To explore this challenge, we spent more than a decade doing field research at 47 companies around the world, including Citibank, HP, Hitachi, Infosys, Intel, LG Electronics, Novartis, Philips, Samsung, Siemens, Vodafone, and Xerox.
In 2004 we teamed up with Booz & Company to conduct a global survey that was completed by 186 companies from 19 countries and 17 sectors, with a combined innovation spend of more than US$78 billion. We draw on that work to present a set of guidelines for successfully managing global innovation projects. 1. Start Small One of the chief enablers of dispersed innovation is the experience of the participating sites in working on global projects.No matter how strong technical capabilities or customer knowledge may be at a particular site, employees will struggle to make a contribution to a global project commensurate with their skills if they have had experience only in colocated development.
That’s because on single location projects, team members benefit from collective tacit knowledge and a shared context, both of which support rich communication and help build trust and confidence among coworkers. Projects that span multiple sites and time zones are often hobbled by differences in workplace practices, communication patterns, and cultural norms.In the absence of everyday interactions and encounters, people struggle to signal trustworthiness and demonstrate competencies. Making matters worse, many teams are used to competing for resources with teams at other sites, and this creates yet another barrier to trust and collaboration between sites. To be effective, dispersed teams have to develop a new set of collaboration competencies and establish a collaborative mind-set. This can be done by running small, dispersed projects involving just two or three sites before a project launch.
Schneider Electric and Toshiba, two global electronics manufacturers, took this approach when they formed a joint venture, STI, to develop electrical drives and inverters. Although management was enthusiastic about the new partnership, engineers at the two companies were not. To build trust between sites, STI organized a series of small, noncritical joint projects under the close scrutiny of senior managers. By the end of the first project, the teams had already begun to feel comfortable collaborating with colleagues at other sites.
They quickly established consensus on working practices and protocols, reinforcing trust and providing a good foundation for the more complex global initiatives to come. 2. Provide a Stable Organizational Context During periods of major organizational change, such as restructurings or acquisitions integration, the complexity of dispersed innovation escalates. Top managers are likely to be focused elsewhere within the organization, leaving their global projects orphaned. Critical decisions are frequently left hanging, and problems often go unaddressed.In a climate of organizational uncertainty, turf battles can flare up, and project team members may become concerned about job security and lose focus.
Consider a global electronics firm we’ll call Elecompt. It launched a global innovation project at a time when new acquisitions were being integrated and a major reorganization of R&D was under way. Although the project was of strategic importance, management focus was understandably elsewhere. Problems came to a head when, prompted by fear of job losses, large numbers of highly skilled engineers at one site left the company, causing significant delays.Of course, it’s not possible to undertake global innovation projects only in times of sustained stability, so managers need to anticipate the possible toxic side effects of reorganization on global innovation and shelter teams as much as possible from disruptions. They should focus on creating an atmosphere of stability and bolster employees’ sense of self-worth and loyalty to the firm.
This will be particularly important for firms that are expanding R&D in China, where competition for talent is so intense that loyalty to employers rarely has time to develop
