Impact of Internet on International Marketing
This paper will discuss the impact of Internet on the international marketing spectrum. One way to analyse this issue is through identifying the pros and cons of using internet as a marketing tool, and finally its implication for international marketers, professionals and academics.
Information technology has been the cataclysm for the development of international businesses. One area, which has been given increased attention, is the explosion of international marketing activity on the Internet. According to the international data statistics of 2003, they predict that there will be approximately one billion of active users in the world by 2005, which means more electronic commerce (www.cyberatlas.internet.com). These figures demonstrate the attention of international marketing stakeholders.
The usage of Internet as a medium international marketing brings along many benefits to international marketers. Some major advantages are mentioned below:
Firstly, the net acts as a gateway to global opportunities. It allows companies, specially small and medium enterprises to position themselves globally at low cost. In addition, it alleviates the red tape regarding the prospect of doing business globally, consequently avoiding the regulations and restrictions in export countries, which normally companies should abide by if they physically enter the market ( Paul, 1996). Furthermore, low cost can also be associated with the elimination of intermediaries because Internet connects end-users to producers directly. Moreover, the global advertising costs which was considered as a barrier to entry, is now reduced as internet permits to attain the target audience cheaply ( Eid & Trueman, 2002).
Secondly, it provides accessibility. Companies which use internet for their international operations are able to increase their hours of business through email and customer ordering and interactive communication (Eid & Trueman, 2002). Although the different time zones which
Information technology has been the cataclysm for the development of international businesses. One area, which has been given increased attention, is the explosion of international marketing activity on the Internet. According to the international data statistics of 2003, they predict that there will be approximately one billion of active users in the world by 2005, which means more electronic commerce (www.cyberatlas.internet.com). These figures demonstrate the attention of international marketing stakeholders.
The usage of Internet as a medium international marketing brings along many benefits to international marketers. Some major advantages are mentioned below:
Firstly, the net acts as a gateway to global opportunities. It allows companies, specially small and medium enterprises to position themselves globally at low cost. In addition, it alleviates the red tape regarding the prospect of doing business globally, consequently avoiding the regulations and restrictions in export countries, which normally companies should abide by if they physically enter the market ( Paul, 1996). Furthermore, low cost can also be associated with the elimination of intermediaries because Internet connects end-users to producers directly. Moreover, the global advertising costs which was considered as a barrier to entry, is now reduced as internet permits to attain the target audience cheaply ( Eid & Trueman, 2002).
Secondly, it provides accessibility. Companies which use internet for their international operations are able to increase their hours of business through email and customer ordering and interactive communication (Eid & Trueman, 2002). Although the different time zones which