The World Wide
Web has attracted considerable attention from
marketers in the popular business press (Verity
and Hoff, 1994, p. 80-88) and academic marketing
(Hoffman and Novak, 1996, p. 50-68) and practitioner
(Watson, Pitt, and Akselsen, 1998, p. 36-56) journals.
Understandably, at this early stage, the focus
has been on the technology from a general marketing
perspective or as a marketing communication medium.
With few notable exceptions, less attention has
been given to the Web as a potential distribution
channel. However, the Web provides direct marketers
with the opportunity to exploit various international
markets (Harsh 1998)
Overall, the Web is best conceptualized as a developing
marketing channel that transcends national boundaries
and encompasses elements of informing, investigating,
interacting, distribution, transacting, eliciting
feedback, and supporting. In the pre-purchase
stage, the Web can be used to investigate (e.g.,
conduct market research into consumer attitudes,
needs, and wants; monitor competitors; benchmark
other service organizations), for which the flow
of information is primarily toward the service
provider, and inform (promote, position, advertise,
and inform consumers of the service and its options),
for which information flows toward the consumer.
In the purchase stage, the Web can be used to
facilitate transaction, in which the consumer
provides information regarding order specifications,
payment details, and delivery; interaction, in
which the consumer and service provider interact
to co create unique customized service packages;
and distribution, in which the provider actually
distributes the service to the consumer. Finally,
in the post purchase stage, the Web can be used
to elicit feedback (the service provider gathers
information on options, suggestions, level of
satisfaction, potential loyalty, future services,
and other pertinent areas), for which information
flows from the consumer to the service provider,
and provide support (e.g., the provider informs
the consumer of new services and ways of maximizing
benefits from existing services), for which information
flows primarily from the service provider to the
consumer.
The strength of the Web is its ability to encompass
all these elements to a lesser or greater extent.
Its weaknesses relate primarily to its inability
to transport physical objects. Simply, though
the Web is effective for the distribution of symbolic,
informational, or knowledge services, it is extremely
ineffective for the distribution of matter-dependent
or physically embodied services. Thus, for example,
though technical engineering information and advice
can be conveyed between countries over the Web,
the physical parts to which such technical advice
pertains cannot. For each of the other elements
(informing, investigating, interacting, transacting,
supporting), the Web can usefully complement other
more traditional marketing channels. However,
as with any other medium (e.g., television, radio,
print), the Web as an international marketing
channel is affected in terms of its efficacy by
technological, economic, physical, socio-cultural,
and political-legal distance between domestic
and overseas markets. Thus, a Web site based on
a server in France and written in French may not
be understood by a Web surfer in Brazil because
of language, cultural, and allied differences.
Most of the firms are using the Internet as an
informational tool rather than using it as an
interactive tool. The interactive potential of
internet is not utilized. An online brochure is
the most commonly used internet function. It is
found that some existing firms are now using the
Internet for the transaction with the customer.
A very less number of firms are using Internet
for the facilitation of relationship or transaction.
Smaller firms are using less internet tools while
larger firms are using significantly more Internet
tools. The possible reason may that smaller firms
are at the relative cost risk. More research is
to be carried out in this regard. The difference
between the smaller and larger firms becomes prominent
when the Internet is used for the transactional
functions. If the correlation is found between
the size and the age of the firms then it is found
that transactional tools are more used in the
younger and smaller firms. Internet is most sophisticatedly
used in the larger firms. It is found that both
the larger and the smaller firms have very less
use of Internet as an interactive tool.
It has been previously suggested that service
firms are using more sophisticated internet because
they have more to gain while their manufacturing
counterparts are not gaining that much so they
do not use more sophisticated Internet. But it
has been analyzed that no such difference exists.
Service firms have not utilized the interactive
potential of the Internet although they are taking
significant benefits from the Internet. Although
there is a chance to target a segment of one for
service firms in particular and for all types
of firms in general, but this capability has not
been utilized in the sample firms used.
It has been explained that the geographic origin
of firms count a lot. On the basis of geographic
origin, interaction through internet is found
at different levels. This is due to the maturity
level of the Internet technology. The access of
Internet to different markets also matters a lot.
It is said that the Internet use in the United
States is greater due to its lower call charges.
This means that the level of sophistication of
Internet marketing should be higher in the United
States. But this is has been proved.
It is analyzed that the Internet is currently
failed to be proved as a strong interactive tool
in the market. But this is not due to the lack
of experience of the marketing practitioners.
In fact, this is due to the reluctance from the
customers to get involved in the internet interaction.
The customers fear because they do not consider
the Internet as a safe mode to transact through
the internet. Security is the main reason for
the failure of the Internet and its interactive
potential in the market.
There is no difference found for the international
firms that have been using the Internet since
their first steps or they have started using the
Internet after become international. If the firms
first internationalized and then they started
using the Internet to serve their international
markets, or they first started using the Internet
and then they become internationalized does not
make any difference. What matters actually is
the sophisticated use of the Internet if the firms
really serve international markets through the
Internet. More internet functions are used by
those firms that are offering different types
of products and services to international markets
with the help of the Internet. The process is
sensitive and so many internet tools are used.
The other groups do not use more internet functions.
The firms use more sophisticated Internet when
they get involved for the advanced transactional
processes. It is found that those firms are more
sophisticated users of the Internet in which the
new technologies are used for accessing and serving
the new or existing international markets. This
is because those firms rely on transaction for
survival. Other characteristics of the firms also
matter. There may be some common things between
these firms and those small firms that are using
high technology and thus they are growing rapidly
towards internationalization. The size of the
firms needs not to be small but they should be
using a new technology to become internationalized.
There are firms who were international before
the Internet but did not take any advantage of
the technology are responsible for the extent
of differences found between the two groups. It
will be wrong to say that the characteristics
of the firms that are internationalizing through
the Internet are responsible for the extent of
differences. It is not necessary that all services
and products will benefit from the interactive
potential of the Internet. Due to the global and
open nature of the Internet, the firms that are
already internationalized will take time for adjustment
with the new trend in global marketing despite
the fact that the interactive potential of internet
has been widely acknowledged.
Benefits of Internet Marketing for Professionals
Professional buyers realize unique benefits, uses
and gratifications from the Internet market:
• Makes their job easier. Information acquisition
and response times are made more efficient.
• Saves them time.
• Reduces communication clutter. A single
media with storage and retrieval capacity reduces
the clutter of phone and mail messages.
• Reduces stress. Through time savings and
clutter reduction.
• Enhances quality control ability. Can
more conveniently obtain product specifications
and service follow-up?
• Shortens response time. Communications
track down parties through virtual linkages.
• Helps them answer questions and solve
problems quickly.
• Reduces paper processing.
• Relieves in-office schedule stress. Lessens
missed communications and the need to sit by the
phone.
• Contributes to work schedule flexibility.
Restrictive office hours less needed.
• Allows contemplation of information without
slowing response time. Virtual media allows time
to consider the message on-line.
• Reduces interruption down time. Fewer
interrupting phone calls.
• Facilitates office work multi-tasking.
Helps with managing many tasks simultaneously.
• Reduces the work backlog impact of traveling.
Less mail to process, phone calls to catch up
on.
• Broadens the base of support from suppliers.
Makes it easier to gain access to customer support
personnel beyond primary sales representatives.
• Facilitates "quick recovery time"
from a problem situation. Facilitates immediate
contact and alternative suppliers.
• Contributes to ones contemporary &
professional image. (Anderson, 1995, p. 149-62)
Benefits of Internet Marketing for Individuals
The Internet market provides a unique collection
of uses and gratifications to consumers. Below
are listed a collection of possible uses and gratifications
that consumers could gain from virtual marketing.
• A sense of power and control. Computers
are powerful devices controlled at the click of
a mouse. Individuals may maximize, minimize, save,
print and delete content at their pleasure. This
relationship to media content does not exist with
television, magazines, radio or other traditional
media used for commercial communication.
• A sense of "owning" the media
source. There may be an altered sense of attention
to media content that consumers see through a
machine they own and that is connected to linkages
they pay for.
• A capacity to manipulate information instead
of information manipulating them. The notion of
advertising designed to manipulate consumers is
well known. This belief may be lessened for commercial
content on the Internet due to consumers' ability
to manipulate the information to their liking.
• Enhanced ability to exercise information
selectivity. Commercial media deliver a set, inflexible,
programmed format. In virtual marketing channels
consumers may pick and choose content and the
time of exposure.
• Enhanced ability to comparison shop. Conventional
product and information channels require consumers
to expend a good deal of effort to comparison
shop clipping and saving ads, phone calls, store
visits, etc. Virtual marketing collapses all this
into an electronic medium-virtual marketing.
• Consolidation of buying activity time.
Today's consumers are time scarce. The virtual
marketplace enhances the ability to consolidate
shopping time-24 hours a day with assured access
to products and information.
• Sense of accomplishment through command
of technology. Electronic shopping may add a sense
of accomplishment to the shopping experience,
perhaps similar to finding a great deal through
smart shopping--one feels clever and accomplished
by accessing the virtual market.
• Provides a source of recreational escapism.
People long for pleasant diversions from their
hectic and stressful lifestyles yet have difficulty
finding the blocks of time needed for traditional
out-of-home recreation. The virtual market allows
immediate access to recreational escapism usable
in small blocks of time, 24 hours per day.
• Provides a sense of privacy. The virtual
market provides privacy through consumer control
and security passwords.
• Provides a sense of outreach. People can
feel more "connected" to others through
a network of virtual contacts.
• Satisfies the yearning for exploration
and out-of-home experiences. The virtual market
provides partial satisfaction of the longing to
travel and to "get away." (Berthon,
Pitt, Watson, 1996, p. 43-54)
Conclusion
The extent of the use of the Internet as an interactive
tool is discussed in this paper. The interactive
potential of the International will be responsible
for the failure or success of the technology.
This is because the interactive potential has
the ability for the facilitation and development
of individual relationships with customers on
a global scale. Unfortunately, the interactive
potential is very less used. Currently, the Internet
is used as an informational tool. The Internet
as an interactive tool is used particularly for
larger firms that are internationalized and are
serving the international markets with the help
of the Internet. Most sophisticated Internet is
used in these firms. A question is raised about
the failure of the sophisticated use of the Internet
for the mature US Internet market. This is perhaps
due to the fear of customers about the security
for the use of the Internet for transaction. Customers
are not ready fro the use of the interactive tools
of the Internet due to the under developed transactional
tools and their evolution as well. The firms that
are already internationalized will go through
a large number of challenges that will be faced
due to the global and open nature of the technology
before the potential is maximized.
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