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The importance of using influencer marketing in order to create brand awareness in international markets for e-commerce companies

Written by C. Bylock, T. Lidberg

Paper category

Bachelor Thesis

Subject

Business Administration>Marketing & Sales

Year

2018

Abstract

Bachelor Thesis: Internationalization Internationalization refers to the company's decision to internationalize its business by exporting, establishing sales offices abroad, or simply creating the possibility of selling abroad (Johansson & Vahlne, 1977). Internationalization is defined as the company's surpassing the domestic trending market and entering the international market (Singh N., 2011). Many companies started their international business when they were relatively young, and gradually developed their business abroad. Internationalization is a gradual learning process, in which the speed, sequence and direction of international expansion are a function of the company's experience, capabilities, and evolution (Luo, Zhao, and Du, 2005). The term international usually refers to the company's attitude towards foreign activities or the attitude of carrying out activities abroad. There is a close relationship between attitude and actual behavior. Attitudes are the basis for deciding to undertake international adventures, and the experience of international activities will influence these attitudes. The assumption of Johansson & Vahlne (1977) is that the company first develops in the domestic market, and internationalization is the result of a series of gradual decisions. The network reduces the risk of barriers simply because it can minimize the actual international presence by using the network and limiting the company’s direct exposure to market risks in specific countries/regions (Singh N., 2011). Therefore, one of the fastest and most effective ways to enter the global market is to influence consumers and enter through the Internet. E-commerce companies have fewer physical and cultural restrictions than traditional companies (Luo, Zhao, and Du, 2005). The acceleration of globalization and the growth of emerging economies provide important opportunities for global business expansion. Network globalization requires a collection of interdisciplinary skills from the fields of international business and marketing, advertising, project management, IT and e-commerce, language technology, linguistics, and intercultural communication (Singh N., 2011). However, the main online challenges that companies face in selling products globally are issues related to international e-commerce capabilities. For example, managing multiple languages, transportation mode transaction capabilities, localization, local language consumer support, documentation, legal issues and optimizing international websites. Eliminating middlemen means that the Internet enables companies to sell products directly to consumers around the world. Therefore, e-commerce companies can use their online image and capabilities instead of using intermediaries (ibid.). 2.2 International Marketing The emergence of an open world economy, the globalization of consumers and the expansion of Internet access have increased the interdependence and interconnection of the economies of all countries in the world (Lowe & Doole, 2012). Most companies are now selling, purchasing, competing or/and cooperating with companies all over the world (Albaum & Duerr, 2011). This has caused the marketing environment around the world to become more global in many ways. Cherunilam (2010) defines international marketing as marketing in an international competitive environment, regardless of whether the market is domestic or foreign. International marketing is what companies do to cross national borders. More complicated, it involves establishing manufacturing and processing facilities in other markets and coordinating global marketing strategies (Lowe & Doole, 2012). As goods, services, technologies, and ideas become easier to cross national borders, small and medium-sized companies and large multinational companies have more opportunities to enter foreign markets (Albaum & Duerr, 2011). Even individuals with good enough products, services or ideas can now find consumers abroad if they understand international marketing. Small domestic businesses with well-designed web pages may take advantage of new opportunities and receive orders from foreign consumers. Therefore, how to define and explain international marketing depends on the company's degree of participation in the international market (ibid.). When a company sells its services or goods across national borders, it may involve export marketing. International marketing includes activities, interests, or operations in more than one country/region where goods will normally be sold, and finally global marketing, where the entire organization focuses on selecting global opportunities and investigating different markets that provide competitive advantages (Lowe & Doole, 2012) . There are some reasons why companies want to go international, these are technological progress and the reduction of communication costs (Albaum & Duerr, 2011). This may include the development of Internet and e-commerce companies that have complex and diverse software that supports various business functions. Companies planning to go international must make a series of strategic decisions, such as market selection decisions, entry and operation decisions, and marketing mix decisions (Cherunilam, 2010). This is because foreign markets are characterized by many uncontrollable variables. New communication networks such as social media sites make it possible to collect information from consumers, which provides new opportunities for companies to identify their target consumers. Read Less