International e-Marketing Framework: Impact of the Internet on Businessby - Iloka Benneth Chiemelie, Njoku Stanley

0.1 INTRODUCTION

     The web, internet and other information technologies have proven to transform the business world. The marketing function has by no doubt been the most affected, and this can be seen by the significance of e-marketing in corporations across the globe. With increase in the acceptance of the internet and web, the scope of international e-marketing now changes from possibility to reality

     Marketing scholars across the globe have followed the transformational impact of the internet/web, and related information technologies closely over the years. Numerous researches in international e-marketing have been evoked in both individual customer levels (Callow and Lerman, 2003; Dou et al., 2003; Kucuk, 2002; Sing et al., 2004; Waller et al., 2005) and firms levels (Javalgi et al., 2004; Singh and Kundu, 2002).

     The implementation of e-marketing on a global level has added an increased level of complexity to the marketing world. The justification in this context can be seen by examining e-marketing strategies within communalities across various markets (Levitt, 1983; Ghosal, 1987; Walters, 1986; Wind, 1986; Yip, 1989; Samiee and Roth, 1992). The e-marketing framework was developed based on understanding of e-marketing principles within the communalities.

     Based on the works thus far, the emphasis in this paper is to analyses the international e-marketing framework (IEMF), providing a critique argument on the framework. This paper will help to in understanding the difference between international e-marketing and international marketing, as well as providing guidelines for global marketing communities to shape the bases of international marketing based on the extension of the framework introduced by Krishnamurthy (2006).

     This research paper is divided into three sections; the first section summarizes the article journal used for the research, followed by the second section which presents a critique argument for the points as highlighted in the summarized article. The last section provides guidelines for further research and findings from the research.

1.0 SUMMARY OF ARTICLE USED

1.1 OVERVIEW OF IEMF

     The international e-marketing framework comprises of seven components – actors (individuals that make e-marketing decisions), space (the internet/we where engagement is done), technology (the level of technological skills that affects user experiences), cultural factors (the hofstedian framework), digital divide (access to information technologies), actions and outcomes (behavioural outcomes at firm-level). These seven components will be introduced briefly.

1.1.1 ACTORS

     Establishing an online presence (in the form of a website, blog, email, etc) automatically makes one an international e-marketing actor. Since websites can be assessed internationally, e-marketing actors tend to exert influence in their country of origin and pass this influence across borders (e.g. www.bnetwork.us ). But some e-marketing actors tend to localize in different countries. For instance Amazon has shops in UK, Japan, Germany, Canada, and localize different websites for different countries. E.g. Amazon.com.jp sells books at a lesser price than Amzon.com, but it is not certain if customers are taking advantage of this.

1.1.2 SPACE

     The conceptualization of space in marketing literature was first used by Rayport and Sviokla (1994). An online space is a medium of engagement between customers and marketers (Krishnamurthy, 2006). However, this is not confined to only the website; it also includes hand phones, blog, and partner’s website.

1.1.3 TECHNOLOGY FORM FACTOR

     Across the globe the internet means different things to different people based on their access to the internet. Form factors influences how people communicate, interact, and transact online.

1.1.4 CULTURAL FACTORS

     Majority of online users are non-English speaking individuals, this has lead to development of web translation and multi language websites. Research shows that this cultural influence affects rate of online purchase and purchase related decisions (Luna et al., 2002; Sing et al., 2004).

1.1.5 DIGITAL DIVIDE

     Access to information technology is varied, and gap between those who can access the internet and those who cannot exists across nations(Lu, 2001), and within nations (Hoffman et al., 2000). Thus, it implies that e-marketing actions are limited in countries with higher digital divide compared to those with a lesser digital divide.

1.1.6 ACTIONS AND OUTCOMES

     E-marketing actions can be classified into three categories – communication, analytical and customer relationship management. Communication actions include advertising (e.g. banner ad, pop-up ad, pop-under ad), direct message dissemination (e.g. pop-in e-mails, viral e-mail) and content creation and management (e.g. frequently asked questions, downloadable). Analytical include search engine optimization and traffic analysis. CRM actions include customer related actions focused on individual customers or group of customers.

1.2 POTENTIAL LINKAGE BETWEEN FRAMEWORK COMPONENTS

     On regular bases, actions by one marketing actor in any given space positively affect his own outcomes and negatively affect that of his competitors. Thus, a promotion by one marketer will increase sales and negatively impact the sales of his competitors. Extensive investigation is needed to understand how actions by a marketer affect him and his competitors. E.g. a banner ad for promotion might either increase or decrease the value of penetration due to design.

     The digital divide makes it difficult to determine the impact of the internet/web on each user, since the elites tend to influence those who don’t have access to the internet. Even when customers have access to the internet, users from different countries tend to be different in the terms of their behaviour and this can affect the understanding of online user behaviours. The technology could also limit information access

3.0 CRITIQUE

3.1 REVIEW OF E-MARKETING FRAMEWORKS

     With the birth of the internet technology, conventional e-marketing frameworks have been redesigned to create innovative marketing models (Chaffey, 2004; Logrosen, 2005). Some of the widely recognized e-marketing frameworks proposed by Chaffey (2004),Gloor (2000), and Kierzkowski et al. (1996) will be used as the bases of this critique. This paper will present a critique based on the general conceptions of the international e-marketing frameworks.

     Chaffey (2004) – The e-marketing strategy. Chaffey (2004)suggests that e-marketing plan should be incorporated into other corporate plans in order to support the marketing activities. These integrations include information technologies and e-business strategies to fulfil the conventional marketing practices of creating, communicating and delivering value to customers. In addition, the internet/web should also be integrated into the marketing plan to enhance customer relationship management, supply chain management and enterprise resources planning that helps in giving corporate marketing objectives a better definition (Chaffey, 2004; Strauss and Frost, 2001).

Figure (1)

 

Source: Chaffey (2004)

     Based on figure (1) above, there is a linkage between all the components of e-marketing framework in achieving any given marketing objectives (Gilmore et al. (2007). Thus, positively validating the argument presented earlier on in the summary section of this research paper.

     Gloor (2000) – Roadmap to e-marketing. Gloor (2002) pointed out the fundamental factors to complete the transformation of e-marketing vision to be business and technology, and the transformation to electronic business has to consider various aspects such as the potentials of e-marketing technology. From the roadmap proposed byGloor (2000), there is a need for a high level of ICT expertise (Technology form factors), and marketing experts (Actors) play a crucial role in enduring the development of flexible (Market space e.g. the internet/web), scalable and extensible (digital divide free) marketing architecture to provide solutions for both customer and company needs. From the above emphasis, it is noticeable to see all the seven components of e-marketing components once linked once again.

     Kierzkowski et al. (1996) – Digital marketing cycle. Kierzkowski et al. (1996) proposed an e-marketing cycle that is applicable to the internet and comprises of the following activities:

1. Attract visitors;
2. Engage them;
3. Retain them;
4. Learn from them; and
5. Relate to them.

Figure 2

Source: Adapted from Kierzkowski et al. (1996).

     From figure (2) above, the relationship of each element is aimed at improving customer acquisition and retention, and this makes the application of information and communication technology essential to achieve CRM as a key element of e-marketing (Kierzkowski et al., 1996, Laudon and Laudon, 2002). This argument is also supported byStrauss and Frost (2001), who suggest that e-marketing comprises electronic data and application for planning and deploying marketing activities and marketers can distribute ideas, goods and services in other to fulfil customer’s demands.

     While the above authors has made important contributions to design the e-marketing frameworks and suggest their benefits, many practitioners and marketing academics (Laudon and Laudon, 2002; Stockdale and Standings, 2004; Gilmore et al., 2007) have suggested the adoption of this frameworks is not guaranteed because corporations across the globe are not certain about the benefits. Therefore, e-marketers need to be aware of the current issues and trends including; the effectiveness of adopting the frameworks (Michel et al., 2003; Gebauer et al., 2007), the main reasons for adoption (Stockdale and Standing, 2004), the major components involved in adoption (Gloor, 2000) and benefits and challenges associated (Sculley and Woods, 2001).

4.0 FINDINGS

     The internet has been found to be the foundation to effective and efficient business and customer relationship activities. Corporation across the globe use the internet as a medium for transactions including: financial transfer, on-line exchanges, product and service delivery(O’Reily and Finnegan, 2007). This has lead to identification of the e-marketplace as inter-organisational information system (IS), through which buyers and sellers interact electronically to identify potential, trading partners, make trading selections and executions (Rohm et al., 2004).

     In general, relationships between the seven components of the international e-marketing frameworks exist. This is because, each components is directly dependent on the other and we will link it to be in these form: the actor (marketer), need the space (internet/web), to execute his action (actions and outcomes), but the outcome of his action is dependent on volume of access (digital divide), consumer characteristics and behaviour (cultural factor), and the level of technology (technology factor) used in deploying his actions.

5.0 CONCLUSION

     In this paper, the IEMF was analysed based on theoretical evidence from previous researches, and a clear distinction was provided on all the points summarised. The article used for this research was then found to be theoretically valuable, and this has been supported with references from previous researches based on the same topic or topic with similar features. Thus the empirical studies helped in indentifying the gaps in the literature.

     In conclusion, this research paper can be seen as a bases for further researches, but care should be taken in using all the ideas listed in this paper, because they are based on secondary researches already done by other research rather than a primary research which would have been more accurate and up to date, but that does not make this research void. As a guideline for further research, it is advisable upon any research intending to conduct.

6.0 PURPOSE AND SIGNIFICANCE OF THIS STUDY

The main purpose of this study is to present a critical argument on the marketing journal summarized above. This purpose was met to full satisfaction with relevant case studies from other researches with similar purposes. It is significant, because as a marketer, understanding the international e-marketing framework is as crucial as deploying the marketing strategies for customer persuasion and retention, as well as product and service innovation.

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7.0 DIRECTION FOR FUTURE RESEARCH

The research has a pathway for future research. The framework and propositions that have been examined here are based on case studies and previous studies from marketing academics. There is a need to empirically examine the framework and determine if the dimensions adequately capture the international e-markets. The framework also develops assumptions for penetration and profitability of markets. There is a need to empirically demonstrate the profitability of this framework based on their expectations. The paper also suggest a possible linkage between the seven components of the international e-marketing frameworks and success factors that needs to be investigated empirically.

8.0 METHODOLOGY

In other to avoid complexity of material, this study was based on previous researches. A total of fifty journals was accessed, and grouped according to their order of importance. This group was to more relate the journals with the work that need to be done. All the accepted journals had to be revised as well to ensure quality based on their evidence of empirical source for the researches done. The most appropriate journals after all these careful examination where used for this research.

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