International marketing tool: the Internet
| Published date | 01 September 1998 |
| Pages | 253-261 |
| Date | 01 September 1998 |
| DOI | https://doi.org/10.1108/02635579810228381 |
| Author | Fred Palumbo,Paul Herbig |
| Subject Matter | Economics,Information & knowledge management,Management science & operations |
[ 253 ]
Industrial Management &
Data Systems
98/6 [1998] 253–261
© MCB University Press
[ISSN 0263-5577]
International marketing tool: the Internet
Fred Palumbo
Sy Syms School of Business, Yeshiva University, New York, NY, USA
Paul Herbig
Herbig and Sons (Marketing Consultants), San Antonio, Texas, USA
The main purpose of this
paper is to provide a clearer
understanding about the
approaches to international
markets using the Internet,
and understanding the mar-
keting decisions and chal-
lenges that a company will
face in a global environment
selling through Internet. In
order to achieve this purpose,
this paper is organized in the
following sections: introduc-
tion to Internet; adopting
marketing decisions to the
Internet; and marketing via
the Internet.
Introduction
The Internet is a vast computer network
interconnected globally. It offers organiza-
tions inexpensive, and sophisticated tools for
advertising, taking and placing orders, pro-
moting their philosophies, and communicat-
ing with their customers all over the world.
These Internet tools are: e-mail, mailing list,
newsgroup, world wide web (WWW), and
indirectly cybermall.
Although the Internet can be a marketer’s
dream come true, it can also be a nightmare
for firms that are not aware of the challenges
that the Internet creates. For example, before
going global through the Internet a company
should make decisions regarding:
•International price – since prices are seen
in several markets at the same time, there is
not a clear limitation of prices for a specific
market.
•Increase of competition – since the Internet
diminishes the cost of market entry, more
companies (i.e. especially small companies)
will be able to compete in the global market-
place.
• Means of payment – not all the traditional
payment mechanisms are really available
or inexpensive for individual customers
although there are other means of payment
that may be adequate and cheaper; but
these are more risky.
At the same time, given the worldwide envi-
ronment in which the Internet operates a
company will face additional problems such
as:
•Cultural differences – among the most
important of which are: languages which
include obstacles in translating; images
(symbols) which have different meanings
across nations; and colors which have dif-
ferent symbolic values.
•Privacy – although the level of personal
privacy varies across nations, the Internet
may not be appropriate for direct market-
ing; so a company needs to adopt the right
approach to deal with this issue globally.
•Censorship – as more governments are
erecting barriers to free cyberspace by
restricting network access, limiting content
and even criminalizing some kinds of
communication. A company should modify
its Web presentation, if it is considered
immoral, against public policy or state
security by the government of its target
market.
•Security – the financial transaction’s secu-
rity is one of the most common problems on
the Internet. However, new software is
being developed to create an encrypted
message which allows one to transmit a
credit card’s number safely.
•International law – a company is exposed to
several legal restrictions. For example, in
France, foreign brands must be translated
into French; in Germany comparative
advertising is prohibited. So, a company
should check its material before posting on
its Web page.
• Intellectual property – on the Internet dupli-
cation is part of the system; however, the
copyright law covers the Internet and, some
governments are working together to create
a global harmonization of this law.
•Telecommunication infrastructure– a com-
pany should not expect to find across
nations the same technical standards that
exist in the USA. In some nations, telecom-
munication’s problems will pose the biggest
single obstacle to global markets.
• Personal computers availability – the rate of
computers at home connected to the Inter-
net vary widely across the globe, so it could
be troublesome to reach some markets.
•Credit cards use worldwide– in some coun-
tries credit cards are not as popular as they
are in the USA and they may be limited to a
specific segment of the market or restricted
to domestic purchases only.
Even though the list of tasks and problems to
marketing on a global scale through the Inter-
net may seem large, many companies are
successfully using the Internet to sell their
products or services, promote their philoso-
phy, and increase brand awareness all over
the world. They are adapting their sales effort
in such a way so as not to offend the ad-resis-
tant Internet community, accommodating
cultural differences into their Web pages and
modifying their organizational structure for
the Internet marketing’s age.
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