Internet and Global Marketing: Ecommerce on an International Scale

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  • 0:05 Global Internet Marketing
  • 1:00 Pros of Internet and…
  • 2:08 Cons of Internet and…
  • 3:24 The Marketing Mix
  • 4:07 Lesson Summary
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Lesson Transcript
Instructor: Jennifer Lombardo
E-commerce is a low risk business strategy for companies to use for developing an international customer base. The combination of global marketing with an Internet distribution method allows many companies to try their hand at reaching growing target markets overseas.

Global Internet Marketing

Going global is even easier than it has been in the past. Small entrepreneurs can market their product overseas from their living room, while large corporations have access to consumers across the world 24 hours a day by using the Internet. How is this possible? The Internet and the increasing growth of technology make it easy to reach consumers with websites. The Diaper Sponge Pants Company has recently expanded their market to both India and China. Fortunately, it has been a very easy process due to an E-commerce framework that is available. E-commerce is the buying and selling of products or services over electronic systems such as the Internet. Using the Internet to sell to international consumers is a very low risk business decision. Companies do not have to tie up huge financial investments through franchising, direct investment or brick-and-mortar stores overseas.

Pros of Internet and Global Marketing

The Internet and new technologies have allowed companies to easily expand to overseas markets. Diaper Sponge Pants has a dynamic website that allows international orders. It also provides a tremendous database for the company to use to build their customer base. Software has been developed to translate between languages, which makes communication with international customers easier for companies to implement. There is also software that provides currency conversions.

Global shippers, such as UPS and FedEx, help provide easy international logistics for product expansions. The biggest advantage is the ability to reach huge, growing target markets to increase corporate market share and profits. Countries such as India and China have a developing middle class with a large disposable income. The market is ripe for American companies to promote their products and services for long-term growth opportunities. It is very easy to customize websites for each international country, which can reflect local customs, currency and advertising messages.

Cons of Internet and Global Marketing

Along with advantages, there are also disadvantages and issues for companies who use E-commerce. Diaper Sponge Pants Company had an unconditional refund policy that they offer as part of their promotional mix. They have run into an issue when trying to sell their diapers with that promotion in Germany. Evidently, Germany has a maximum 14-day return policy, due to a court issued ruling. This law made it difficult for Diaper Sponge Pants to promote their unconditional refund policy.

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