The Internet and International Marketing

Venkatesh Shankar and Jeffrey Meyer

AN ORGANIZING FRAMEWORK AND INTERNATIONAL INTERNET MARKETING STRATEGY

5 DIMENSIONS FOR PERCEIVED SUCCESS IN INTERNATIONAL INTERNET

MARKETING:

Marketing strategy factors

Global dimension-related factors

External factors

Web-site factors

Other internal factors

THE INTERNET AND INTERNATIONAL PRODUCT DEVELOPMENT

Reduced product development time, ability to use ideas and inputs from design engineers around the world, better time-leveraging of talent located at different time zones

Effectiveness of Web-based new product development systems depends on Firm strategic

orientation Product-market factors Business environment* Organizational factors Information technology

factors Partner factors*

COMPANY-GENERATED COMMUNICATION

Culture Low cultural congruity increase

information processing requirements

Congruency between graphics and brand name moderates language effects on attitude towards cross-cultural web sites

Local language and local adaptation

Globalization vs. Localization

Barriers:Cultural barriers Regulatory barriersOrganizational barriers

USER-GENERATED COMMUNICATION

creation of communities focuses on specific topics, leading to a growing number of global brand communities

THE INTERNET AND INTERNATIONAL PRICING

Price transparency

allowed firms to highlight and differentiate on non-price attributes

THE INTERNET AND INTERNATIONAL DISTRIBUTION

Distribution channel, substitute channel, complementary channel

Internet can aid in personal selling by developing a positive company image

Firm’s use of the internet depends on Country Customer Company Competition

EMERGING TRENDS AND FUTURE ISSUES

Spread and rise of mobile media and technology across the world

profits and shareholder value Digitizable products – itunes, SAS

consumer behavior, internet strategy, and internet communications; new areas include social media and networks and internet analytics (Pomirleanu, Schibrowsky, Peltier & Nill, 2013)Consumer trust to the internet, use of the internet by consumers for marketing related activities, where is the internet headed in terms of integrating strategies (Schibrowsky, Peltier, & Nill, 2007)

CONCLUSION The internet and internet marketing strategy have both a

direct effect and moderating effect on the impact of marketing mix decisions on firm performance

The internet has a significant influence on effectiveness and speed of new product development and its impact on firm performance

The Web allows more pricing transparency, but also permits opportunities for differentiation across countries

The web may serve either as a substitute or a complementary channel in different international markets

Continued internet penetration and the surging growth of mobile media are expected to result in continuing changes in the way international marketing is practiced and in the impact of international marketing decisions on firm performance

Organizations must provide organizational, social, and technical infrastructure support to users in order to increase internet marketing use (Khong, Siong-Choy Chong, & Lin, 2013). The characteristics of the Internet as a marketing channel are unique. To assure successful marketing, products should be well fit to the characteristics of the on-line environment (Taylor, 2005).

Khong, S. T., Siong-Choy Chong, & Lin, B. (2013). Intention to use internet marketing. Kybernetes, 42(6), 888-905. doi:http://dx.doi.org/10.1108/K-12-2012-0122

Pomirleanu, N., Schibrowsky, J. A., Peltier, J., & Nill, A. (2013). A review of internet marketing research over the past 20 years and future research direction. Journal of Research in Interactive Marketing, 7(3), 166-181. doi:http://dx.doi.org/10.1108/JRIM-01-2013-0006

Schibrowsky, J. A., Peltier, J. W., & Nill, A. (2007). The state of internet marketing research. European Journal of Marketing,41(7), 722-733. doi:http://dx.doi.org/10.1108/03090560710752366

Taylor, L. E. (2005). The applicability of commodity classification structures to internet retail marketing (Order No. 3185865). Available from ABI/INFORM Global; ProQuest Dissertations & Theses Global. (305350729). Retrieved from http://search.proquest.com/docview/305350729?accountid=50192