Information and Communication Technology in International Marketing – SS3 Marketing Lesson Note (First Term)

Information and Communication Technology (ICT) in international marketing is the use of the internet and other digital tools to make a business known to the world, reach customers in any country and get their feedback quickly.

Behavioural objectives

By the end of the lesson, students should be able to:

1. explain why marketing managers must adopt ICT;
2. state how ICT helps a business to make itself known to the world;
3. list the advantages of ICT in international marketing;
4. explain how ICT leads to market expansion;
5. state the limitations of using ICT in international marketing.

What is ICT in international marketing?

ICT in international marketing is the use of computers, phones, the internet and software to promote, sell and support products across countries.

• International marketing: the marketing of goods and services to customers in other countries.
• ICT: the tools used to collect, store, process and share information.
• Main aim: to reach more customers, at lower cost, and to learn what they want.
• Main benefit: it is cheaper and more flexible than print advertising, and it helps businesses to grow and expand their markets.

What are examples of ICT tools used in international marketing?

ICT tools are the digital devices and platforms a business uses to communicate with customers.

• Website: an online shop window that shows products and prices to visitors from any country.
• Email: sends offers, price lists and replies to customers abroad.
• Social media: Facebook, Instagram, WhatsApp and similar platforms used for adverts and chats with customers.
• Search engines: help customers to find a business when they search for a product.
• Online marketplaces: websites where many sellers display goods to buyers, such as Jumia in Nigeria.
• Online payment systems: allow buyers abroad to pay by card or transfer.
• Video calls: allow meetings with foreign buyers and suppliers without travel.
• Online surveys: collect customer opinions quickly.

Why must marketing managers adopt ICT?

Marketing managers must adopt ICT because marketing is undergoing radical changes and ICT helps them respond to these changes.

• Constant change: change today is constant and happens at a fast pace.
• Social and cultural changes: managers in the 21st century must use ICT to address the social and cultural changes that everyone faces.
• Strategic marketing: ICT has become indispensable if marketing is to be strategic and reach its goals.
• Customer habits: many customers now search, compare and buy online.
• Competition: rival firms already use digital tools, so a business that does not use them falls behind.

How does ICT help a business to make itself known to the world?

ICT is a very powerful tool that helps prospective business owners to make their business known to the world.

1. The business creates a website or social media page showing its products.
2. It posts pictures, videos and prices that people in any country can see.
3. Search engines and online adverts bring the page to the attention of new customers.
4. Customers send questions or orders by email, chat or phone.
5. The business replies, delivers the goods and collects feedback.
6. Satisfied customers share the business with others online.

What are the advantages of ICT in international marketing?

The advantages of ICT in international marketing are lower cost, wider reach, convenience, quick feedback and growth.

1. Low cost and flexibility: it is far cheaper and much more flexible than print advertising. An online advert can be changed at once.
2. Market expansion: the internet allows businesses to break through geographical barriers and become more accessible.
3. More sources of income: it diversifies revenue streams, because a business can sell to buyers in many places.
4. Convenience: marketing can be done from any part of the globe.
5. Added value and satisfaction: customers get information, choice and easy ordering.
6. Quick feedback: feedback is obtained almost immediately from the intended customer or target audience.
7. Growth opportunities: the internet provides growth opportunities to businesses.

How does ICT lead to market expansion?

Market expansion is the growth of a business into new groups of customers or new places.

1. The business goes online, so distance no longer limits who can see its products.
2. Customers in other towns and countries find the business and place orders.
3. Sales rise, and the business earns from more than one market.
4. Feedback shows what the new customers like, so products can be improved.
5. The business uses the extra income to grow further.

What is the difference between ICT marketing and print advertising?

Print advertising is the use of newspapers, magazines, handbills and posters to promote products. ICT marketing uses digital tools such as websites, email and social media.

What are the limitations of ICT in international marketing?

The limitations of ICT are the problems a business may face when it uses digital tools.

• Poor infrastructure: weak internet service and unstable electricity can interrupt work.
• Cost of equipment: computers, phones and data need money.
• Online fraud: cyber criminals may cheat sellers or buyers.
• Skill gap: staff need training to use digital tools well.
• Language and culture: adverts must suit the language and culture of each foreign market.
• Strong competition: many sellers compete online for the same customers.

Evaluation

1. What is ICT in international marketing?
2. Give three reasons why marketing managers must adopt ICT.
3. Explain how ICT helps a business to make itself known to the world.
4. Discuss five advantages of ICT in international marketing.
5. State three limitations of ICT in international marketing.

Assignment

Explain, in about five sentences, how a small Nigerian business can use ICT to expand into foreign markets. Name two ICT tools it would use.