◎ Noor Ezalina Binti Saleh
◎ Faziatul Roziana Binti Abdul
◎ Nor Fatihah Binti Md Nawi
D. Deciding DIGITAL AGE B. Marketing
on the MARKETING Strategy; New
Major Forces of
Shaping the Internet
Many forces are playing a major role in reshaping the
world economy, including technology, globalization,
environmentalism, and others. Here we discuss four
specific forces that underlie the new digital age (see
Figure 3.1): digitalization and connectivity, the explosion of
the Internet, new types of intermediaries, and
customization and customization.
D. The B.
Customization The Internet
& Age Explosion
New Types of
A. Digitalization & Connectivity
Past : Analog information
Musical recordings to industrial gauges and control
Analog information : is continuously variable in response to physical stimuli.
A. Digitalization & Connectivity ( cont. )
• Growing number of appliances & systems operate on digital information.
• Text, data, sound, and images can be converted into bitstreams.
• Example : A laptop computer manipulates bits in its thousands of applications
• Software consists of digital content for operating systems, games, information
storage, and other applications.
• For bits to flow from one appliance or location to another requires CONNECTIVITY
• CONNECTIVITY : a telecommunications network.
A. Digitalization & Connectivity ( cont. )
• Intranets are networks that connect people within a company to each other and to
the company network.
• Extranets connect a company with its suppliers, distributors, and other outside
• Internet, a vast public web of computer networks, connects users of all types all
around the world to each other and to an amazingly large "information repository."
The Internet makes up one big "information highway" that can dispatch bits at incredible
speeds from one location to another.
B. The Internet Explosion
• creation of the World Wide Web and Web browsers
• the Internet was transformed from a mere communication
1990s tool into a certifiably revolutionary technology
final decade of • number of Internet users worldwide grew to almost 400
the twentieth million
• the growth of Internet access among the world's citizens
will continue to explode
C. New Types of Intermerdiaries
AOL Amazon.com Yahoo eBAY eTrade
The amazing success of early Internet-only companies
Dell Computer grew faster by selling online
eToys lured toy buyers to the Web
The formation of new types of intermediaries and new forms of channel relationships
caused existing firms to reexamine how they served their markets.
D. Customization & Customerization
• The Old Economy revolved around manufacturing companies that mainly focused
on standardizing their production, products, and business processes
• In contrast, the New Economy revolves around information businesses
• With rapid advances in Internet and other connecting technologies, companies have
grown skilled in gathering information about individual customers and business
partners (suppliers, distributors, retailers )
• Example : Dell Computer, lets customers specify exactly what they want in their
computers and delivers customer-designed units in only a few days.
4 Principles of
Marketing Strategy in
the New Digital Era
1. Clarifying Business Objectives
◎ Everybody is struggling to keep up to
their business objectives and to
progress and actively emerging the
media into their marketing program
◎ Marketers try to create “one size that
2. Use Innovation Teams to Identify,
Evaluate and Active Emerging
◎ Marketing executives are busy people.
◎ They actively monitor the marketplace,
identify the business marketplace and
opportunities and collaborate with product
3. Decouple Strategy and Innovation
◎ Strategy and innovation are often
◎ They tend to put their best people on it
◎ Good strategy achieves specific
4. Build Open Assets in the Marketplace
◎ Successful brands are becoming platform and
need to do more than just drive consumers to
◎ Once the potential customer were aware of
the product, the direct sale & retail promotions
could then CLOSE THE DEAL.
1985- Steve 1996- 1990- Jobs 2011- CEO 2019- 940
Job ousted bankrupt came back Tim Cook million net
from Apple took over
SUCCESS taking minimizing
advantage of threats
◎ Effective marketing opportunities
◎ Good in identifying
factors and trends
which helps them to:
2 domestic marketing
3 global marketing
◎ Factors that can affect the international marketing
decisions of the organization in international market.
INTERNAL (Controllable) Organizational structure, productivity,
relations with stakeholders, policies and rules.
MARKETING (Uncontrollable) Availability of raw material,
infrastructure, legal system, and technological factors.
MARKETING (Uncontrollable) This factor is related to the world
economy. Political and legal, economic, social,
technological, demographic, cultural, competitive, and
◎ Global Marketing Environment-
combination of various factors external to
an organization that can affect
the international marketing decisions of
the organization in international market.
◎ The factors are uncontrollable,
although marketers can influence some of
Global Marketing Factors
Political & Regulatory Factor
All of the actions occasionally
changes in the marketing strategies
of affected organization/ institution
based on this factor.
E.g. School uniform
Monitor the economy in every region
where you do the marketing
1 Interest rates
2 Tax rates
3 Law & policies
4 Wages & salary
5 Governmental activities
makers of Competitors
1 Inventing new technologies by
2 New products and services -help
to increase revenues and profits of
4 Internet Connectivity
3 Lifestyles of people
2 Custom and Taboos
4 Time & Punctuality
5 Business Norms
6 Religious Belief &
◎ Demographic information can provide important insights about a 34
target market and how to address consumer needs
◎ Social class
◎ Religious affiliations (individual values as well as holiday
◎ Income brackets (level of wealth, disposable income, and quality of
◎ Education (Level)
◎ Geography (Area of residence, urban vs. rural, and population
The Influence of Government and
Domestic and Global Business Law
Free Trade and Protectionism
(government takes ownership of property
or business operations)
Deciding on the
◎ Coca-Cola started selling internationally back in 1919, and is now
present in more than 200 countries. In order to keep a consistent
brand, Coke tastes the same in every region (although outside of
the United States, the recipe uses sugar instead of high-fructose
corn syrup), but the size, shape, and labeling of the bottle are
changed to match the norms in each country. While the company
formerly used a standardized advertising approach, it has changed
to adapt advertising messages to local culture. Additionally, it
adjusts its product line-up to fit local tastes; including a number of
additional beverage brands.
◎ McDonald’s makes certain that a Big Mac tastes the same in every
country; but it also varies items on its menu according to local
tastes. Customers in Mexico can order a green chili cheeseburger,
customers in Korea get to eat bulgogi burgers; and customers in
many Arab countries can enjoy the McArabia, a grilled kofta
sandwich on pita bread.
STRATEGY 1 38
◎ Companies must recognize that a marketing mix that works
in the domestic market may not have the same success in
The Marketing Mix in the Global Market
Product — Should the product stay the same in each market, or does it
need to be adjusted to fit local tastes?
Price — Is a new pricing strategy required to deal with variations in local
competition? Walmart, for example, discovered that several retailers in
Germany already occupied their low-price niche.
Placement — How do customers in the locality make their purchases?
Promotion — Can your message reach across cultures? Are any
unexpected responses due to cultural patterns?
PARTNERSHIPS WITH LOCAL
Company must make decisions regarding
trade-offs between standard and local
Research the various markets, and prepare
to make adjustments to its product and
messaging wherever required
◎ Marketers should personally visit their target
markets, and spend time in them -can develop
local contacts, as well as gain a deeper
understanding about how business is conducted
in the area.
◎ Example; In Japan, it is not enough just to speak
Japanese; you must also conduct business the
Japanese way. Learn what is valued culturally—
and what is offensive.
◎ Developing, and respecting, the local business
talent is also critical to global marketing.
◎ If you have an office in Hong Kong, for example,
you want to make full use of talented Hong Kong
Chinese professionals in your marketing,
advertising, and distribution.
4 WAYS TO DEVELOP YOUR
GLOBAL MARKETING STRATEGY
Know the Market. Understand the
Develop Marketing Plan.
Customize Marketing Approach.
Localize Your Message.