IMPLEMENTATION THROUGH ENABLING TECHNOLOGIES Session 12
THE VICIOUS CIRCLE OF TECHNOLOGY AND COMPETITIVE ADVANTAGE
ROLE OF THE INTERNET FOR E-BUSINESS
Provide a global marketplace, open to all; with
A method of collecting and exchanging marketing and business information
An alternate route to market to traditional distribution channels
A means of building customer relationships
A device for the digital delivery of certain information services
A networked system for managing the supply chain
A virtual marketplace, trading floor and auction house.
THE WEB SITE CONTRIBUTING TO INTERNATIONAL MARKETING
Business transactions online
International E-Marketing Models
Website as virtual shop
E-business Operations expensive to establish
Industry specific hubs
Function specific hubs
Consumers joining together to reduce prices paid
IMPACT ON INTERNATIONAL MARKETING STRATEGY
Technology and analysis
Technology and strategy development
Technology and strategic implementation and control;
Product and service management
Control, evaluation and learning
CHALLENGES FOR INTERNATIONAL MARKETING STRATEGY #1
Customers from some countries, typically low-context countries, embrace the Internet in different ways to those in high-context cultures.
Brand values often depend on the different communication methods that people use, both explicit and implicit, such as image, reputation, word of mouth and continual exposure online and offline.
CHALLENGES FOR INTERNATIONAL MARKETING STRATEGY #2
By being global, e-commerce still favours global players.
Consumers expect high quality of performance and image but these can be severely tarnished by a low-cost, poorly performing website and slow or inaccurate order fulfilment.
The effectiveness of websites is influenced by such factors as the ease of navigation, company and products information, shipping details and sensitivity to language and culture.
CHALLENGES FOR INTERNATIONAL MARKETING STRATEGY #3
The barriers to entry must be significant if the defenders of domestic or limited country niches wish to retain their market share.
The development of intelligent agents that search for specific pieces of information on markets and potential suppliers means that marketers cannot base their appeal to customers on traditional marketing-mix factors
they must find a new sustainable competitive advantage.
Focus not on markets but on quality customers from anywhere in the world
Focus on one-to-one relationships
Increase both lifetime and short-term revenue from customers
Integrated and coordinated approach
changing way business done
new solutions to old problems
Firms will under perform or fail if they fail to exploit it
Consumer e-marketing and innovative business models are facilitating new routes to market
B2B models have the greatest impact on international marketing
Other technologies and software are an important aspect of the change
Better communication has made supply chains more effective