Beruflich Dokumente
Kultur Dokumente
the Internet
George Maybury
School of Computing
Dublin Institute of Technology
Kevin Street, Dublin 8, Ireland
georgemaybury@hotmail.com
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An analysis of marketing products and services on the Internet – George Maybury
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Companies that use the Internet to market their Business strategies that include the Internet are
products come in all sizes, ranging from often characterised as electronic commerce.
multinational corporations to home-based Electronic commerce (Ecommerce) is a label
entrepreneurial businesses. Marketing that encompasses a wide variety of business
applications of the Internet are equally varied activities, including those activities most
(Coupey, 2001). For example, a company typically associated with marketing (Coupey,
might use the Internet merely to handle 2001). Because Ecommerce is often described
catalogue requests. Another company might as the completion of buying and selling
make its entire product line available through transactions online, it is easy to confuse
an Internet site, as well as through traditional marketing and Ecommerce. In this paper,
means. Retailers such as Barnes and Noble, a Ecommerce is defined more broadly as:
book retailer and Wal-Mart use this approach.
Yet other companies might market their “The sets of activities undertaken by
product solely through a virtual storefront on organisations to enable and facilitate the
the Internet, like Amazon. The types of online buying and selling of goods and services
activities are influenced by the goals of the through electronic, paperless, information
company, and by its experience with Internet systems technologies”.
technologies (Eid and Trueman, 2002).
Marketing is viewed as a subset of activities
1.2 Marketing and the Internet that may be conducted within the more general
realm of electronic commerce. Figure 1.1
The current emphasis of the Internet as a demonstrates the role marketing plays within
Ecommerce.
technology for commerce reflects the
symbiotic nature of the relationship between
technology and marketing (Coupey, 2001). Ecommerce
McKenna argues that,
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Chinese and Japanese languages are difficult the risk of being dragged into court is low
owing to the large number of local dialects. when a company has no direct investment in
Moreover, the importance of vocal intonations that country, some countries may seek to
in these spoken languages may further impede enforce their law through extradition
the transfer of business dialog from voice to proceedings (Lewis and Feldman, 1996).
text (Palaumbo and Herbig, 1998). Therefore, it makes sense to evaluate the
Additionally, difficulties with language usually global impact of any kind of advertising and
arise through carelessness, which is manifested promotional material before launching a
in a number of translation blunders. The old marketing campaign on the Internet.
saying, "If you want to kill a message, translate
it," is true. For example, Chanel No. 5 would 3.1.3 Colours
have fared poorly in Japan had it been called
No. 4, because the Japanese for four also Colours across nations have different symbolic
sounds like the world of death (Czinkota and
values. For example, in America a blue ribbon
Ronkainen, 1996). Other problems are related is awarded for first place. In England, first
to the capability of language to convey place gets a red ribbon. Black is the colour of
different shades of meaning and how different
mourning in America, while white is the colour
cultures read. of mourning in the Orient (Sterne, 1999). Thus,
if a firm is expanding internationally its local
Although computer companies are now business by the Internet, it needs to think in a
improving technology, which automatically more global way.
translates information into the receiver's
language (Croft, 1995), dealing with the
3.2 Privacy
language problem invariably requires the use
of local assistance. One of the simplest
methods of checking and control is back- Studies show that the level of personal
translation: the translating of a foreign- information and concern with privacy varies
language version back to the original language across countries. An attempt to define whether
by a different person than the one who made the three relevant value dimensions of
the initial translation (Palaumbo and Herbig, Hofstede (power distance, uncertainty
1998). avoidance, and individualism) influence the
level of personal information privacy concern
in a society, did not reveal any significant
3.1.2 Images relationship between the overall level of
information privacy concern and any of the
Selling worldwide, a company needs to be three value dimensions (Milberg et al., 1995).
careful in using gestures in global marketing Another study examined the consumer privacy
because gestures have different meanings issue in England and the USA over the past 33
around the globe (Palaumbo and Herbig, years. A major cross-cultural difference was
1998). For instance, while the finger circling that Americans have expressed more concern
means "okay" for an American culture, it is about interactional privacy issues such as
considered vulgar or obscene in Brazil and intrusions into individuals' lives through the
Germany. It is also considered impolite in receipt of direct mail and telephone
Greece and Russia, while in Japan, it means solicitations. The British have been primarily
money; in southern France zero or worthless concerned with informational privacy issues,
(Axtell, 1996). such as the collection and exchange of
information about the individual (Petrison and
The use of nude or sensual images is not Wang, 1995).
acceptable in some Asian and Islamic cultures.
For example, in the UAE strict censorship has Although among cultures privacy has different
been placed on the Internet and other forms off meanings and importance, one must be aware
communication. In Japan to preserve the purity that in the Internet community there is a
of Japanese womanhood, it is common practice general agreement that it should not be used
to hire foreign models to make this kind of for such marketing purposes as direct
advertising (Czinkota and Ronkainen, 1996). advertising and mailing. Violating this rule
frequently causes Internet users to react with
If an advertisement violates the moral code of anger and to "flame " the violator by sending
a country, the risks can be penalties, fines, unpleasant retaliatory e-mail massages
damages and conceivably a ban on the (Gattiker et al., 1996).
company's products or services. Even though
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An analysis of marketing products and services on the Internet – George Maybury
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who shop on-line use credit cards for their way toward financing the legal clearance
purchases" (Angell, 1996). process (Lewis and Feldman, 1996).
As the Internet has gained so much attention Since the Internet as a means of
and so many users, the law in the USA and communications is going more and more
other countries will have a greater role in global, many governments including those
controlling the type of information that can be from Australia, Canada, France, Sweden and
posted and accessed. Some companies take the the USA and the European Commission, are
position that if advertising has been cleared in looking to the global harmonisation of law on
the USA, it will probably be acceptable in intellectual property as part of their plans for a
other target countries. That may not be true. national information structure (Hurley, 1995).
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An analysis of marketing products and services on the Internet – George Maybury
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In Mexico, consumers often have to wait more Since the use of credit cards as a means of
than a year for phone service installation. payment is not universally available in all
Similar situations prevail throughout countries around the world, a company should
developing countries in Eastern Europe, Asia, develop other means to receive payment.
Latin America, and Africa (Quelch and Klein,
1996). In Malaysia, there is just one Internet The challenges facing marketers on the
access provider (IAP) with around 23,000 Internet is considered in Section 3. The global
subscribers in 1996. That base is growing at a nature of the Internet creates new obstacles
rate of 22 per cent per month. In Singapore, because cultural, legal and social systems
there are three IAPs and a subscriber base differ worldwide. In section 4 the evolution of
similar to that of Malaysia (Pillai, 1996). the marketing mix for the Internet is examined.
Therefore, companies will have to wait until
these countries invest in better 4. The Evolution of the Internet
telecommunications infrastructures and
promote internal competition before they can Marketing Mix
take full advantage of the opportunities the
Internet offers for global commerce. Internet marketing has changed some elements
of the marketing mix. Marketing on the
3.8 Personal computers' availability Internet is a very different process from
traditional marketing. The key to a more
successful marketing effort on the Internet will
In the developed world the use of Internet is be an interactive strategy. However, this part
growing at a fast pace due to the relatively low focuses on marketing mix dimensions that may
cost of PC ownership. This is not the same for be facilitated through the use of the Internet.
other countries, especially developing
countries, where it is not affordable yet to have
personal computers at home. Hence, in 4.1 Product
developing countries the potential target
market would be limited to industrial A product is any thing that can be offered to a
customers or to the wealthiest segment of the market for attention, acquisition, use, or
population for some time. consumption that might satisfy a want or need
(Kotler, 1991).
3.9 The Credit Cards' use Worldwide
The management of the product mix refers to
the development and commercialisation of new
Credit cards are the most useful tool as a way products, as well as to decisions, which
of payment by Internet. However, its use and determine the length of their cycles, namely,
popularity are not equal across nations, for product rejuvenation and renewal, or
example: elimination decisions (Eid and Trueman,
2002). The Internet leads to faster discovery of
• In the USA: it is the perfect means of customer needs, greater customisation of the
payment because credit cards are products to the customer needs, faster product
widely accepted and easy to obtain. testing, and shorter product life cycles
They pay about 18 per cent of bills. (Avlonitis and Karayanni, 2000). The
• In Germany: there is a cultural-bound international marketers who use the Internet
problem in the use of credit cards. should have in-depth understanding of the
Cash has long been the king; only 1 foreign marketing environment to assess the
percent of their purchases are paid by relative advantages of their own products and
credit cards (Herbig, 1997). services (Quelch and Klein, 1996).
• In Japan: the most common credit
card issued by the Japan Credit Bank As part of a good marketing plan, a company
is not very acceptable worldwide must design new or improved products that
(Herbig, 1997). meet the customer’s current or latent needs,
• In Chile: there are two types of credit find an effective way to bring that product to
cards. One of them, the most the customer, and provide after-sales support
common, is for buying goods or (Eid and Trueman, 2002). The Internet can
services domestically only. The other dramatically improve the entire process. This
one is valid for international is especially true if the product being offered
purchases. can be transformed into a digital product. But
even if the product is not digital, many
companies can still take advantage of the
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for each brand-while costly and limiting to information on how the products are shipped
cross selling is preferable when the brands and precautions taken to ensure their quality on
have distinct markets and images. For example arrival, which is the policy that has been
Procter & Gamble has reserved 110 domain adopted by Internet companies such as
names, although they are currently using a Amazon. Quality guarantees and/or special
small number of them (Eid and Trueman, consideration for international returns or
2002). refunds may also be necessary.
Finally, Bennet (1997) stated that advertising Undoubtedly, the Internet has reduced many
on Web pages other than the firm’s own is distribution issues. According to Wilson and
possible (and increasingly common), but might Abel (2002)
not be well received. Customers merely wish
to be presented with the hard facts about the “The Internet is borderless and the opportunity
subject matter of the pages they read. Note to sell over the net in a standardised way
moreover that more and more business eliminates many natural barriers to entry”.
establishes WWW presence, searching for
potential suppliers will become impossible Any business connected to the Internet can
without the aid of high-quality directories to retrieve other businesses products by ordering
guide people towards relevant sites. them from their websites. Companies no
longer have to devise long and expensive
4.4 Physical Distribution distribution channels to bring their products to
the customer (Eid and Trueman, 2002).
Physical distribution is the place aspect of the
marketing mix. Marketing channel can be However, the marketing mix and its four Ps
defined as interdependent organisations constitute a production-oriented definition of
marketing, and not a market-oriented or
involved in the process of making a product or
service available for use or consumption customer oriented one. The four Ps model does
(Kotler, 1991). The Internet, by connecting not explicitly include any interactive elements.
Furthermore, it does not indicate the nature and
end-users and producers directly, will reduce
the importance of traditional intermediaries in scope of such interactions (Eid and Trueman,
international marketing (i.e. agents and 2002).
distributors). To survive such intermediaries
will need to begin offering a different range of The paper draws attention to the evolution of
the marketing mix for the Internet in this
services (Eid and Trueman, 2002). Their
value-added will no longer be principally in section. Marketing on the Internet is a very
the physical distribution of goods but rather in different process from conventional marketing.
This paper focuses on the marketing mix
the collection, collation, interpretation and
dissemination of a vast amount of information dimensions that are facilitated by the use of the
(Poon and Jevons, 1997). Quelch and Klein Internet. Finally, in section 5 conclusions are
outlined.
(1996) stated that a hospital in Saudi Arabia,
for example, can put out a request for proposal
for equipment over the Internet, secure bids, 5. Conclusions
select a supplier without going through local
brokers and distributors, and have the products The Internet offers big opportunities for all
delivered directly by DHL or Federal Express. companies, especially for small and medium-
Few buffer inventories will be needed in the sized organisations, looking to market their
worldwide distribution system and less products and services internationally (Sterne,
working capital. 1999).
However, if intermediaries can perform a The use of this vast computer network can
different mix of services, made necessary by substantially minimise a firm's printing and
the Internet, they will continue to play critical postage costs since with one flat monthly fee a
roles and extract value (Eid and Trueman, company can send as much e-mail as it wants,
2002). . The distribution system of the wherever it wants (Coupey, 2001). In addition,
company must have some capabilities, for there is no need to pay substantial amounts to
example, twenty-four-hour order taking and rent a mailing list to reach potential customers
customer service response capability and or to purchase an expensive advertisement in a
regulatory and customer-handling expertise to magazine, since the Internet offers features like
ship internationally. White (1997) stated that a Web page, which performs such tasks.
companies should consider providing
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In short, the Internet's tools allow companies, understanding, the knowledge and the practise
regardless of size, to reach international of marketing on the Internet.
markets at reasonable cost. It means that these
tools have eliminated the prohibitive cost of 6. References
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