2. Introduction
The Internet has revolutionized the international business arena and global
marketing in particular.
Roughly speaking, the Internet is a network of computers interconnected
throughout the world operating on a standard protocol that allows data to be
transmitted.
Until the early 1990s, the Internet was primarily the preserve of the military and
academic researchers.
The Web clearly provides a unique distribution and communication channel to
marketers across the globe.
The development of new software and other technologies during the early 1990s
turned the Internet into a commercial medium that has transformed businesses
worldwide.
4. Asia-Pacific
Asia-Pacific region is quickly catching up. Most of the action in the
region is business-to-business.
Internet penetration in Japan and South Korea is higher now than in the
US. With high broadband penetration, online shopping is more
attractive in South Korea than in the rest of the region.
In China, web surfers apparently have a positive attitude toward online
shopping
Several obstacles hinder the spread of e-commerce in Asia which
include:
prefer to do business face-to-face instead of via anonymous channels,
relationships and networking, problems of secrecy and family-owned
businesses, and knowledge barriers.
5. Europe
Consumer spending on e-commerce in Europe is growing at
a very fast pace.
Small and medium-sized European companies are finding
the Internet a cheap way to broaden their geographic scope.
Several challenges to e-commerce in Europe persist ,
including: government regulations, knowledge barriers,
and reluctance to reveal credit cards numbers.
6. Latin America
Net fever is also spreading in Latin America.
Brazil has been one of the strongest e-commerce markets in the
region, although internet penetration is still fairly low.
Brazil also has the largest number of online retailers in the
region.
E-commerce in Latin America is spurred by opportunities for
transparency, cost-cutting, and supply chain productivity
increases.
Like other regions, e-commerce faces a number of obstacles
which include: high cost of Internet access, customs regulations
and import duties, and consumers’ reluctance to release their
credit card numbers.
7. Structural Barriers to Global
E-Commerce
Language Barriers:
Much
of the content on the Web is in the English
language.
A recent study found that business users on the Web
are three times more likely to purchase when the Web
site “speaks” their language.
The demand for Web site localization services has
boosted a new Web-oriented translation industry.
8. Structural Barriers to Global
E-Commerce
Cultural Barriers:
Cultural
norms and traditions can hinder the spread of
the Internet.
In
To
many countries, credit card penetration is low.
become familiar with local markets as well as local
cultures is not possible through the Internet.
9. Structural Barriers to Global
E-Commerce
Infrastructure:
In
many emerging market countries, e-readiness rank
very low. E-readiness measures the extent of internet
connectivity in the country.
Knowledge Barriers:
Setting
up an e-business requires certain knowledge
and skills.
In emerging markets, scarcity of proper talent and
skills will restrain the development of a digital
economy
10.
11.
12. Use of the Internet for Understanding
Global Buyers
In terms of primary research, the possibilities created
by the Internet are stunning. There are many
measurement tools available which include:
Online
surveys
Bulletin boards and chat groups
Web visitor tracking
Virtual panels
Focus group
13. Use of the Internet for Understanding
Global Buyers
Shortcomings of Online research:
Low
Internet access
Incorrect or out-dated e-mail addresses
Problems with the Web sites
Integrity of the respondents
Problems in identity validation when the same e-mail
address is used by multiple people
14. Competitive Advantage and Cyberspace
The Internet offers two major benefits to companies
that use the tool as a gateway to global marketing:
1. Cost/efficiency savings
2. Accessibility (connectivity)
The Internet also offers access to customers around
the world.
15. Use of Internet for Global Marketing
Strategies
Companies can use the web to contact internal users
(staff, salespeople) or external users (customers,
suppliers, distributors) around the globe.
Regardless of the target, the medium can be effectively
used as a business model to generate revenues .
One-to-One Marketing
Product Policy
Global branding
Internet-based new product development
16. Advantages of internet advertising:
Global
reach
Lower cost
Interactivity
Ability to customize
Ability to instantly monitor