Internet fraud

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Internet fraud is a type of fraud which makes use of the Internet. According to the FBI’s 2017 Internet Crime Report, online victim losses due to fraud totaled over $1.4 billion in 2017.[1] Online fraud appears in many forms. It ranges from email spam to online scams. Internet fraud can occur even if partly based on the use of internet services and is mostly or completely based on the use of the internet.


  • 1 Counterfeit postal money orders
  • 2 Online automotive fraud
  • 3 Charity fraud
  • 4 Internet ticket fraud
  • 5 Gambling fraud
  • 6 Online gift card fraud
  • 7 Social media and fraud
  • 8 See also
  • 9 References
  • 10 External links

Counterfeit postal money orders[edit]

According to the FBI, on April 26, 2005 Tom Zeller Jr. wrote an article in The New York Times[2] regarding a surge in the quantity and quality of the forging of U.S. postal money orders, and its use to commit online fraud.

In the United States of America, the penalty for making or using counterfeit postal money orders is up to ten years in jail and/or a $25,000 fine.[3]

Online automotive fraud[edit]

A fraudster posts a nonexistent vehicle for sale to a website, typically a luxury or sports car, advertised for well below its market value. The details of the vehicle, including photos and description, are typically lifted from sites such as Craigslist, and An interested buyer, hopeful for a bargain, emails the fraudster, who responds saying the car is still available but is located overseas. Or, the scammer will say that he is out of the country but the car is a shipping company. The scam artist then instructs the victim to send a deposit or full payment via wire transfer to initiate the “shipping” process. To make the transaction seem more legitimate, the fraudster will ask the buyer to send money to a fake agent of a third party that claims to provide purchase protection. The unwitting victims wire the funds and subsequently discover they have been scammed. In response, auto sales websites often post warnings to buyers, for example, those on Craigslist which warn not to accept offers in which vehicles are shipped, where funds are paid using Western Union or wire, etcetera, requesting those postings to be flagged as abuse.[4]

Charity fraud[edit]

Main article: Charity fraud

The scammer poses as a charitable organization soliciting donations to help the victims of a natural disaster, terrorist attack (such as the 9/11 attacks), regional conflict, or epidemic. Hurricane Katrina and the 2004 tsunami were popular targets of scammers perpetrating charity scams; other more timeless scam charities purport to be raising money for cancer, AIDS or Ebola virus research, children’s orphanages (the scammer pretends to work for the orphanage or a non-profit associated with it), or impersonates charities such as the Red Cross or United Way. The scammer asks for donations, often linking to online news articles to strengthen their story of a funds drive. The scammer’s victims are charitable people who believe they are helping a worthy cause and expect nothing in return. Once sent, the money is gone and the scammer often disappears, though many attempts to keep the scam going by asking for a series of payments. The victim may sometimes find themselves in legal trouble after deducting their supposed donations from their income taxes. United States tax law states that charitable donations are only deductible if made to a qualified non-profit organization.[5] The scammer may tell the victim their donation is deductible and provide all necessary proof of donation, but the information provided by the scammer is fictional, and if audited, the victim faces stiff penalties as a result of the fraud. Though these scams have some of the highest success rates especially following a major disaster and are employed by scammers all over the world, the average loss per victim is less than other fraud schemes. This is because, unlike scams involving a largely expected payoff, the victim is far less likely to borrow money to donate or donate more than they can spare.[6]

Internet ticket fraud[edit]

A variation of Internet marketing fraud offers tickets to sought-after events such as concerts, shows, and sports events. The tickets are fake or are never delivered. The proliferation of online ticket agencies and the existence of experienced and dishonest ticket resellers has fueled this kind of fraud. Many such scams are run by British ticket touts, though they may base their operations in other countries.[7]

A prime example was the global 2008 Beijing Olympic Games ticket fraud run by US-registered Xclusive Leisure and Hospitality, sold through a professionally designed website,, with the name “Beijing 2008 Ticketing”.[8] On 4 August it was reported that more than A$50 million worth of fake tickets had been sold through the website.[9] On 6 August it was reported that the person behind the scam, which was wholly based outside China, was a British ticket tout, Terance Shepherd.[10]

Gambling fraud[edit]

Main article: Online casino

Internet gambling has become a $15 million industry. Every online casino needs an operation license to conduct their business, and the operators may lose their license or even face imprisonment if they do not follow the regulations. Online casinos have become an extremely lucrative as well as competitive industry, with operators introducing new promotions on a daily basis. Promotional activities include attractive bonuses, prize money, jackpots and other offers aimed at making patrons’ online casino experience as memorable as possible. Having a secure software like a 128-bit SSL (Secure Socket Layer) encryption is important.[11]

Online gift card fraud[edit]

As retailers and other businesses have growing concerns about what they can do about preventing the use of gift cards purchased with stolen credit card numbers, cybercriminals have more recently been focusing on taking advantage of fraudulent gift cards.[12] More specifically, malicious hackers have been trying to get their hands on gift card information that have been issued but have not been spent. Some of the methods for stealing gift card data include automated bots that launch brute force attacks on retailer systems which store them. First, hackers will steal gift card data, check the existing balance through a retailer’s online service, and then attempt to use those funds to purchase goods or to resell on a third party website. In cases where gift cards are resold, the attackers will take the remaining balance in cash, which can also be used as a method of money laundering. This harms the customer gift card experience, the retailer’s brand perception, and can cost the retailer thousands in revenue. Another way gift card fraud is committed is by stealing a person’s credit card information to purchase brand new gift cards.

Social media and fraud[edit]

People tend to disclose more personal information about themselves (e.g. birthday, e-mail, address, hometown and relationship status) in their social networking profiles (Hew 2011). This personally identifiable information could be used by fraudsters to steal users’ identities, and posting this information on social media makes it a lot easier for fraudsters to take control of it.

The problem of authenticity in online reviews is a long-standing and stubborn one. In one famous incident back in 2004, Amazon’s Canadian site accidentally revealed the true identities of thousands of its previously anonymous U.S. book reviewers. One insight the mistake revealed was that many authors were using fake names in order to give their own books favorable reviews.[13] A recent study done by BrightLocal ( states that 88% of U.S. consumers read online reviews “to determine whether a local business is a good business” at least occasionally—39% do so regularly. Also, 72% say positive reviews lead them to trust a business more, while 88% say that in “the right circumstances”, they trust online reviews as much as personal recommendations.[13]
While scammers are increasingly taking advantage of the power of social media to conduct criminal activity, astute risk managers and their insurance companies are also finding ways to leverage social media information as a tool to combat insurance fraud.[14] For example, an injured worker was out of work on a worker’s compensation claim but could not resist playing a contact sport on a local semi-professional sports team. Through social media and internet searches, investigators discovered that the worker was listed on the team roster and was playing very well.[14]

See also[edit]

  • Advance fee fraud
  • Business logic abuse
  • Carding (fraud)
  • Credit card fraud
  • Email fraud
  • Employment scams
  • FBI
  • Forex scam
  • Fraud
  • Hijacked journals
  • Mail and wire fraud
  • Online pharmacy
  • Pharming
  • Romance scam
  • Sick baby hoax


  • ^ “FBI 2017 Internet Crime Report” (PDF). Federal Bureau of Investigation. May 7, 2018. Retrieved 28 August 2018. 
  • ^ Tom Zeller Jr (April 26, 2005). “A Common Currency for Online Fraud: Forgers of U.S. Postal Money Orders Grow”. New York Times. 
  • ^ “ – Counterfeit Postal Money Orders”. Retrieved 23 May 2017. 
  • ^ “craigslist – autos”. Retrieved 23 May 2017. 
  • ^ “Charitable Contributions: For use in preparing 2016 Returns” (PDF). 
  • ^ “Scam Watch – Nigerian Scams”. Scam Watch – Australian Government. 12 May 2016. 
  • ^ Jamie Doward (2008-03-09). “How boom in rogue ticket websites fleeces Britons”. The Observer. London. Retrieved 9 March 2008. 
  • ^ “USOC and IOC file lawsuit against fraudulent ticket seller”. Sports City. Retrieved 1 August 2008. 
  • ^ Jacquelin Magnay (4 August 2008). “Ticket swindle leaves trail of losers”. The Sydney Morning Herald. 
  • ^ Kelly Burke (6 August 2008). “British fraud ran Beijing ticket scam”. The Sydney Morning Herald. 
  • ^ “Casino scams – how to avoid black sheeps”. Retrieved 2017-10-09. 
  • ^ Francis, Ryan (2017-05-11). “What not to get Mom for Mother’s Day”. CSO from IDG. Retrieved 2017-11-28. 
  • ^ a b Kugler, Logan. “Keeping Online Reviews Honest.” Communications of the ACM, vol. 57, no. 11, Nov. 2014, pp. 20-23. EBSCOhost, doi:10.1145/2667111.
  • ^ a b Wilson, Brian. “Using social media to fight fraud.” Risk Management, Mar. 2017, p. 10+. Academic OneFile, Accessed 27 Feb. 2018.
    • Legend, Therza. “CYBER FRAUD: How to be aware, to protect yourself and your business.” Podiatry Review, vol. 75, no. 1, 2018, p. 32+. Academic OneFile, Accessed 1 Mar. 2018.
    • Lin, Kan-Min. “Understanding Undergraduates’ Problems from Determinants of Facebook Continuance Intention.” Behaviour & Information Technology, vol. 35, no. 9, Sept. 2016, pp. 693-705. EBSCOhost, doi:10.1080/0144929X.2016.1177114.

    External links[edit]

    • Internet fraud at Curlie (based on DMOZ)


    • Disposable email address
    • Email authentication
    • SORBS
    • SpamCop
    • Spamhaus
    • List poisoning
    • Naive Bayes spam filtering
    • Network Abuse Clearinghouse
    • Distributed Checksum Clearinghouse


    • Keyword stuffing
    • Google bomb
    • Scraper site
    • Link farm
    • Cloaking
    • Doorway page
    • URL redirection
    • Spam blogs
    • Sping
    • Forum spam
    • Blog spam
    • Social spam
    • Referrer spam
    • Parasite hosting

    Internet fraud

    • Advance-fee fraud
    • Lottery scam
    • Make Money Fast
    • Phishing
    • Vishing

    The Importance Of Providing Great Customer Service

    One thing that I’ve learned in my lifetime is that customer service is a super important issue as it is impossible to be successful, long-term, without it. A business that focuses on great customer service will certainly increase their trust level with their customers and sales. It’s by far the most valuable thing that any business owner can implement.

    Good customer service is about how you interact with people and respond to their needs and comments. Even though it can take some extra time and resources, good customer service will always pay off and reap rewards as time goes on.

    Delight Your Customers

    Having satisfied customers is really important today in a very competitive market and will keep your clients coming back for more. They will also refer your business to others personally and on forums etc. I’ve heard a number of studies that suggest providing better-than-good service, actually leaving your customers “delighted”.

    When you provide the kind of customer service that delights on a consistent basis, you’ll be producing long-term customers. Customers like to rest assured that they can expect a great product and great support each and every time they come to you for an order. So it’s suggested that business owners make delighting their customers the #1 goal.

    Excellent Service Helps You

    Great customer service will help a business in many ways, some of which are:

    Break down the barriers of purchasing. With a great reputation and consistency in delighting your customers, many who were hesitant to buy before will now confidently make their purchase and come back repeatedly.

    Someone that has a very positive shopping experience, which includes: before the sale, the sale, and after the sale, will likely make another purchase as their need arises.

    Customers or clients, who are confident will spend more on a product or service than those who are not. They will pay a bit more and rest assured that the transaction and delivery as well as the after purchase support is superb.

    Positive word-of-mouth and reputation building take place. Every successful business owner relies greatly on referrals and a good, solid reputation.

    A long-lasting trust is built up and is consistently growing. As long as the customer service remains excellent the business will grow. If the service is neglected it will be seen by fewer visitors and sales.

    Exceptional customer service is shown in many ways, for example: going out of your way to help those in need, exceeding their expectations, and understanding what it is they’re looking for.

    Treating clients with respect in every way is super important. Answering their comments, complaints, and returns gracefully, and following up on feedback consistently is also very important. Always being ready to help and really investing your time and efforts into your business, website, and customer service will reap the rewards of success every time.

    Are You Trustworthy

    Trust means so much and people will only stay loyal if they are getting treated fairly. There are plenty of other places the customer can go to get what they need, so exceptional service is essential to keep them coming back.

    By providing excellent customer service a business naturally develops a trusting relationship leading to loyalty and increased sales. When it comes to a business, nothing will matter if there is poor customer service. I guess that I only need to look at myself as a customer and treat others as I would like to be treated. As the studies suggest, it’s best to make a habit of leaving your customers “delighted”.

    What Is An Online Sales Funnel?

    What is a Funnel and How Do They Work?

    When the word funnel is mentioned I usually visualize a car with the hood opened and an oil funnel in the picture. I’m not the only one, I know because a number of people have asked me to explain what a marketing funnel is. The subject gets many confused and a bit discouraged but it need not be so.

    A marketing funnel is really very simple and some make it more complicated than it needs to be. Actually, the best and most successful funnels have only 3 steps and are very simple. The more steps that are added leave a better chance that the viewer will not finish the process designed to get them to a certain end result.

    The end result, or goal, of the funnel, can be a number of things including a sale, an opt-in, a phone call, a sign-up, or lead. These are called conversions and are the end result of the funnel.

    A website is a funnel even if someone doesn’t understand just what a marketing funnel is. Someone sets up their site with the intentions of drawing traffic to their site for a specific purpose, let’s say to purchase a product. They might see an advertisement ad on another site and click on it to get to the someone’s site. The visitor reads some of the website content and clicks to go to the next step or to make a purchase.

    That’s typical of a sales funnel and sounds really simple, right? There are said to be over 2 billion viewers online and any website owner would love to get as much of that traffic coming to their site as possible.

    Through various outreach campaigns on social media sites and forums, articles written, podcast, videos made, or a webinar, the site owner draws traffic into the funnel that travels through the website page and a percentage will click to proceed and the rest will move onto something else.

    That is how simple a funnel is and as mentioned, the end result or goal can be to get an email address, get the visitor to click something, or to make a purchase, each is considered a conversion.

    There are funnels that have more steps depending on what the design of the funnel is for the visitor but the fewer steps get better results.

    How do they work?

    Think of yourself as a tour guide leading visitors onto and through your website and leading them where you would like them to go and to do what you would like them to do. The site owner tries to direct them to click here or go there and see a great product that will enrich their lives in one way or another.

    So website owners are like tour guides on their own websites and it’s best that they understand drawing viewers into a funnel, their website, and being a tour guide leading them to the goal, or point of conversion with every page.

    The Components and Tools Needed for a Funnel

    The very first thing needed for a funnel is an idea. An idea could be for a video, a blog post, podcast, audiobook, a presentation, a free offer, or a webinar.

    Another thing that’s needed is a desired goal or end result, whether it be a sign-up, a sale or something else. Then figure out how to get the desired end results starting from the idea.

    Figure out what you want your site visitors to do. What’s the purpose of the site? Determine what your funnels end result is and then you can design the pathway toward the end result.

    Global marketing

    Global marketing is “marketing on a worldwide scale reconciling or taking commercial advantage of global operational differences, similarities and opportunities in order to meet global objectives”.[1][2]

    Global marketing is also a field of study in general business management to provide valuable products, solutions and services to customers locally, nationally, internationally and worldwide.

    International marketing is the export, franchising, joint venture or full direct entry of an organization’s product or services into another country. This can be achieved by exporting a company’s product into another location, entry through a joint venture with another firm in the target country, or foreign direct investment into the target country. The development of the marketing mix for that country is then required – international marketing. It can be as straightforward as using existing marketing strategies, mix and tools for export on the one side, to a complex relationship strategy including localization, local product offerings, pricing, production and distribution with customized promotions, offers, website, social media and leadership. Internationalization and international marketing meets the needs of selected foreign countries where a company’s value can be exported and there is inter-firm and firm learning, optimization and efficiency in economies of scale and scope.

    A firm does not need to export or enter all world markets to be considered an international marketer. According to American Marketing Association (AMA) “International marketing is the multinational process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organisations goals”.


    • 1 Worldwide competition
    • 2 Evolution to global marketing
      • 2.1 Domestic marketing
      • 2.2 Global marketing
    • 3 Elements of the global marketing
      • 3.1 Product
      • 3.2 Price
      • 3.3 Place
      • 3.4 Promotion
    • 4 Advantages and Disadvantages
      • 4.1 Advantages
        • 4.1.1 Reach
        • 4.1.2 Scope
        • 4.1.3 Interactivity
        • 4.1.4 Immediacy
        • 4.1.5 Demographics and targeting
        • 4.1.6 Cross cultural negotiation
        • 4.1.7 Adaptivity and closed loop marketing
      • 4.2 Disadvantages
    • 5 See also
    • 6 References
    • 7 Further reading
    • 8 External links

    Worldwide competition[edit]

    One of the product categories in which global competition has been easy to track in U.S. is automotive sales. The increasing intensity of competition in global markets is a challenge facing companies at all stages of development in international markets. As markets open up, and become more integrated, the pace of change accelerates, technology shrinks distances between markets and reduces the scale advantages of large firms, new sources of competition emerge, and competitive pressures mount at all levels of the organization. Also, the threat of competition from companies in countries such as India, China, Malaysia, and Brazil is on the rise, as their own domestic markets are opening up to foreign competition, stimulating awareness of international market opportunities and of the need to be internationally competitive. Companies which previously focused on protected domestic markets are entering into markets in other countries, creating new sources of competition, often targeted to price-sensitive market segments.
    Not only is competition intensifying for all firms regardless of their degree of global market involvement, but the basis for competition is changing. Competition continues to be market-based and ultimately relies on delivering superior value to consumers. However, success in global markets depends on knowledge accumulation and deployment.[3]
    Today, more and more marketing companies specialize in translating products from one country to another.[4]

    Evolution to global marketing[edit]

    Global marketing is not a revolutionary shift, it is an evolutionary process. While the following does not apply to all companies, it does apply to most companies that begin as domestic-only companies. International marketing has intensified and is evident for approximately nearly all aspects of consumer’s daily life. Local regions or national boundaries no longer restricted to the competitive forces. To be successful in today’s globalized economy, it is a must for the companies to simultaneously be responsive to local as well as global market conditions and varying aspect’s related to the international marketing process. Hence, international marketing skills are an important ingredient for every company, whether or not it is currently involved in exporting the activities for the endorsement of the brand or the company.

    The internationalized marketplace has been transformed very quickly in recent years by shifts in trading techniques, standards and practices. These changes have been reinforced and retained by new technologies and evolving the economic relationships between the companies and the organizations which are working for the trade across the globe. This assignment project work is just an attempt to get integrate these developments and attempts in the field of the market journalism into the burgeoning literature on international marketing process as well as on recent research findings on the International marketing. The research emphasis within the subject has evolved alongside changes in the stress given to key aspects of international trade market. The pre-occupation of early researchers with exports and selling is being replaced by a more balanced view which gives increasing weight to other aspects of international marketing such as licensing, joint ventures, and overseas subsidiaries.
    In effect, the traditional ethnocentric conceptual view of international marketing trade is being counterbalanced by a more accurate global view of markets. This process of change is tracked in this paper and the growing importance of a strategic and organizational approach to international marketing is emphasized in this article theory. Focused attention is paid to the heterogeneous nature of international marketing process. The diversity of the globalized situations is matched by the variety of enterprises which play a vital part in the marketing exploration process. There is also explanation focuses on the matching of the available company resources and marketing goals in successful international marketing trade. The concept which unveils the paper brings out the importance of effective marketing procedures to success in international markets and trade over the international markets.

    Domestic marketing[edit]

    A marketing restricted to the political boundaries of a country is called ‘Domestic Marketing’. A company marketing only within its national boundaries only has to consider domestic competition. Even if that competition includes companies from foreign markets, it still only has to focus on the competition that exists in its home market. Products and services are developed for customers in the home market without thought of how the product or service could be used in other markets. All marketing decisions are made at headquarters.

    The biggest obstacle these marketers face is being blindsided by emerging global marketers. Because domestic marketers do not generally focus on the changes in the global marketplace, they may not be aware of a potential competitor who is a market leader on three continents until they simultaneously open 20 stores in the Northeastern U.S. These marketers can be considered ethnocentric as they are most concerned with how they are perceived in their home country.

    The domestic market is a large market that every nation needs. These markets are all restricted to be under control of certain boundaries in that company or country. This type of marketing is the type of marketing that takes place in the headquarters. In domestic markets it helps reduce the cost of competition. By reducing competition the company has a better shot of being more successful in the long run. Also if the company’s competition is not a big factor that will affect their business, they have a good shot at making prices higher and people will still purchase that product.

    A firm operating in a domestic market also gets the opportunity to operate in different areas and this gives the company an opportunity to have bigger markets to advertise to. Even in domestic markets, businesses are still trying to trade with each other to promote their business to other businesses in the area. An advantage to marketing domestically is that the firm may be entitled to tax benefits for offering jobs to the nation and for giving people opportunities for work. A firm that markets domestically helps countries by offering more jobs, bringing in additional business to the market and stimulates trading within the market.

    Global marketing[edit]

    Global marketing is a firm’s ability to market to almost all countries on the planet. With extensive reach, the need for a firm’s product or services is established. The global firm retains the capability, reach, knowledge, staff, skills, insights, and expertise to deliver value to customers worldwide. The firm understands the requirement to service customers locally with global standard solutions or products, and localizes that product as required to maintain an optimal balance of cost, efficiency, customization and localization in a control-customization continuum to best meet local, national and global requirements to position itself against or with competitors, partners, alliances, substitutes and defend against new global and local market entrants per country, region or city. The firm will price its products appropriately worldwide, nationally and locally, and promote, deliver access and information to its customers in the most cost-effective way. The firm also needs to understand, research, measure and develop loyalty for its brand and global brand equity (stay on brand) for the long term.

    At this level, global marketing and global branding are integrated. Branding involves a structured process of analyzing “soft” assets and “hard” assets of a firm’s resources. The strategic analysis and development of a brand includes customer analysis (trends, motivation, unmet needs, segmentation), competitive analysis (brand image/brand identity, strengths, strategies, vulnerabilities), and self-analysis (existing brand image, brand heritage, strengths/capabilities, organizational values).[5]

    Further, Global brand identity development is the process establishing brands of products, the firm, and services locally and worldwide with consideration for scope, product attributes, quality/value, uses, users and country of origin; organizational attributes (local vs. global); personality attributes (genuine, energetic, rugged, elegant) and brand customer relationships (friend, adviser, influencer, trusted source); and importantly symbols, trademarks metaphors, imagery, mood, photography and the company’s brand heritage. In establishing a global brand, the brand proposition (functional benefits, emotional benefits and self-expressive benefits are identified, localized and streamlined to be consistent with a local, national, international and global point of view. The brand developed needs to be credible.[6]

    A global marketing and branding implementation system distributes marketing assets (website, social media, Google PPC, PDFs, sales collateral, press junkets, kits, product samples, news releases, local mini-sites, flyers, posters, alliance and partner materials), affiliate programs and materials, internal communications, newsletters, investor materials, event promotions and trade shows to deliver an integrated, comprehensive and focused communication, access and value to the customers, that can be tracked to build loyalty, case studies and further establish the company’s global marketing and brand footprint.

    Elements of the global marketing[edit]

    Not only do standard marketing approaches, strategies, tactics and processes apply, global marketing requires an understanding of global finance, global operations and distribution, government relations, global human capital management and resource allocation, distributed technology development and management, global business logic, interfirm and global competitiveness, exporting, joint ventures, foreign direct investments and global risk management.

    The standard “Four P’s” of marketing: product, price, place, and promotion are all affected as a company moves through the five evolutionary phases to become a global company. Ultimately, at the global marketing level, a company trying to speak with one voice is faced with many challenges when creating a worldwide marketing plan. Unless a company holds the same position against its competition in all markets (market leader, low cost, etc.) it is impossible to launch identical marketing plans worldwide.


    A global company is one that can create a single product and only have to tweak elements for different markets. For example, Coca-Cola uses two formulas (one with sugar, one with corn syrup) for all markets. The product packaging in every country incorporates the contour bottle design and the dynamic ribbon in some way, shape, or form. However, the bottle can also include the country’s native language and is the same size as other beverage bottles or cans in that same country.

    Luxury products, high-tech products, and new innovations are the most common products in the global marketplace.[7] They are easier to market in a standardized way than other products because there are no traditional cultural values attached to their meanings.


    Price will always vary from market to market. Price is affected by many variables: cost of product development (produced locally or imported), cost of ingredients, cost of delivery (transportation, tariffs, etc.), and much more. Additionally, the product’s position in relation to the competition influences the ultimate profit margin. Whether this product is considered the high-end, expensive choice, the economical, low-cost choice, or something in-between helps determine the price point.


    How the product is distributed is also a country-by-country decision influenced by how the competition is being offered to the target market. Using Coca-Cola as an example again, not all cultures use vending machines. In the United States, beverages are sold by the pallet via warehouse stores. In India, this is not an option. Placement decisions must also consider the product’s position in the market place. For example, a high-end product would not want to be distributed via a dollar store in the United States. Conversely, a product promoted as the low-cost option in France would find limited success in a pricey boutique.


    After product research, development and creation, promotion (specifically advertising) is generally the largest line item in a global company’s marketing budget. At this stage of a company’s development, integrated marketing is the goal. The global corporation seeks to reduce costs, minimize redundancies in personnel and work, maximize speed of implementation, and to speak with one voice. If the goal of a global company is to send the same message worldwide, then delivering that message in a relevant, engaging, and cost-effective way is the challenge.

    Effective global advertising techniques do exist. The key is testing advertising ideas using a marketing research system proven to provide results that can be compared across countries. The ability to identify which elements or moments of an ad are contributing to that success is how economies of scale are maximized. Market research measures such as flow of attention, flow of emotion and branding moments provide insights into what is working in an ad in any country because the measures are based on visual, not verbal, elements of the ad.

    Advantages and Disadvantages[edit]


    The advantages of global market include:

    • Economies of scale in production and distribution
    • Lower marketing costs
    • Power and scope
    • Consistency in brand image
    • Ability to leverage good ideas quickly and efficiently
    • Uniformity of marketing practices
    • Helps to establish relationships outside of the “political arena”
    • Helps to encourage ancillary industries to be set up to cater for the needs of the global player
    • Benefits of eMarketing over traditional marketing


    The nature of the internet means businesses now have a truly global reach. While traditional media costs limit this kind of reach to huge multinationals, eMarketing opens up new avenues for smaller businesses, on a much smaller budget, to access potential consumers from all over the world.Less advertising costs.


    Internet marketing allows the marketer to reach consumers in a wide range of ways and enables them to offer a wide range of products and services. eMarketing includes, among other things, information management, public relations, customer service and sales. With the range of new technologies becoming available all the time, this scope can only grow.


    Whereas traditional marketing is largely about getting a brand’s message out there, eMarketing facilitates conversations between companies and consumers. With a two way communication channel, companies can feed off of the responses of their consumers, making them more dynamic and adaptive.


    Internet marketing is able to provide an immediate impact. With traditional print media, it’s not that easy for the consumer to take the step from hearing about a product to actual acquisition. With eMarketing, it’s easy to make that step as simple as possible, meaning that the product is just a few mouse clicks away. All of this can happen regardless of normal office hours. Effectively, Internet marketing makes business hours 24 hours per day, seven days per week for every week of the year. By closing the gap between providing information and eliciting a consumer reaction, the buying cycle is sped up.

    Demographics and targeting[edit]

    The demographics of the Internet are a marketer’s dream. Internet users, considered as a group, have greater buying power and could be considered a population group skewed towards the middle-classes. Buying power is not all though. The nature of the Internet is such that its users will tend to organize themselves into focused groupings. Marketers can easily find access to niche markets they wish to target. Marketing messages are most effective when they are presented directly to the audience most likely to be interested. The Internet creates the perfect environment for niche marketing to targeted groups.

    Teenagers, for example, share common characteristics even if they are from different cultures and nations. This youth market generally has more money to spend and is affluent. However, this market is difficult to target because they are always one step ahead – they are more aware of marketing tactics and are very cynical. They are trendsetters that define themselves in opposition to the establishment.[8] Since the youth market is growing, it would benefit the company to target them, as it would bring in more revenue. Youths are also highly active on social media and in the recent years, many advertising campaigns have gone viral through social media. With the constant flow of media and information, brands continue to increase their awareness, and increase consumer consumption. Targeting the youth market is beneficial because they are more open-minded, have international contacts, and travel more.[7]

    Cross cultural negotiation[edit]

    The dimensions of culture, such as power distance, the context of the culture and the local work ethic is an area of marketing and social science that is closely related to Global marketing. The ability to discern cultural differences through initial assessment of another market is considered a critical enabler to progress in Global marketing.

    Effective marketing requires adapting to cultural values, and Hofstede’s five cultural dimensions theory helps compare practices of consumption and consumer motivations for buying products and services.[9] When a company can advertise effectively to its foreign markets, it brings benefits to both sides. The company gains more revenue and relations, and the foreign markets have access to better products and services. Hofstede, through the five cultural dimensions, reveals how cultures are different and value different things. Typically, the west is different from the rest. The west typically values individualism, high need for autonomy, modernity, and a more explicit use of sexuality whereas eastern values include family oriented, respect for elderly, submission to authority, traditional collectivism, and Confucianism.[7][10] When designing an advertisement, cultural value differences must be considered to be effective since advertising campaigns do not work the same way in different countries.[11]

    Adaptivity and closed loop marketing[edit]

    Closed Loop Marketing requires the constant measurement and analysis of the
    results of marketing initiatives. By continuously tracking the response and effectiveness
    of a campaign, the marketer can be far more dynamic in adapting to consumers’
    wants and needs.
    With eMarketing, responses can be analyzed in real-time and campaigns can be
    tweaked continuously. Combined with the immediacy of the Internet as a medium,
    this means that there’s minimal advertising spend wasted on less than effective
    Maximum marketing efficiency from eMarketing creates new opportunities to seize
    strategic competitive advantages.
    The combination of all these factors results in an improved ROI and ultimately, more
    customers, happier customers and an improved bottom line.


    • Differences in consumer needs, wants, and usage patterns for products
    • Differences in consumer response to marketing mix elements
    • Differences in brand and product development and the competitive environment
    • Differences in the legal environment, some of which may conflict with those of the home market
    • Differences in the institutions available, some of which may call for the creation of entirely new ones (e.g. infrastructure)
    • Differences in administrative procedures
    • Differences in product placement.
    • Differences in the administrative procedures and product placement can occur

    Neoliberal economists advocated reliance on markets to keep the international economy healthy and growing. They championed was the liberation of international currency. The market should work but doesn’t. It’s out of the hands of the public and belongs to the above mentioned multinational corporate title-holders. Popular support position involved above all else a cultural campaign couched in terms of freedom.[12]

    See also[edit]

    • Advertising
    • Advertising research
    • Globalization
    • International marketing
    • Marketing
    • Marketing research
    • Nation branding
    • wikt:Picture Sorts
    • Visual marketing


  • ^ “A Dictionary of Marketing”. Oxford University Press. Retrieved 2017-10-04. 
  • ^ “International Marketing vs Global Marketing (10 Differences)”. eduCBA. 2016-09-16. Retrieved 2017-10-04. 
  • ^ RESPONDING TO THE CHALLENGES OF GLOBAL MARKETS: CHANGE, COMPLEXITY, COMPETITION AND CONSCIENCE C. Samuel Craig; Susan P. Douglas. Archived 4 March 2012 at the Wayback Machine.
  • ^ Backaler, J. (3 June 2014). “China Goes West: Everything You Need to Know About Chinese Companies Going Global”. Palgrave Macmillan – via Amazon. 
  • ^ Building Strong Brands, David Aaker, E.T. Grether Professor of Marketing Strategy at the Haas School of Business at the University of California at Berkeley
  • ^ International distribution channels: strategy and management,
  • ^ a b c Gram, M (2007). “Whiteness and western values in global advertisements: An exploratory study”. Journal of Marketing Communications. 
  • ^ “What You Need to Know About the Global Ad Market”. Retrieved 12 December 2015. 
  • ^ De Mooij, M (2003). “Convergence and divergence in consumer behaviour: Implications for global advertising”. International Journal of Advertising. 
  • ^ Waller, D (2000). “Cultural values and advertising in Malaysia: Views from the industry”. Asia Pacific Journal of Marketing and Logistics. 
  • ^ Pagano, A (2017). “14-tips on how to create a winning international marketing strategy”. Interpreters and Translators, Inc. 
  • ^ Thomas, Vladimir (1 May 2017). the world transformed 1945 to the present (second ed.). Michael H.Hunt. pp. 343–345. 
  • Further reading[edit]

    • Hollensen, Svend (2017) Global Marketing, 7th edition, Pearson, ISBN 978-1-292-10011-1 .
    • Svante Andersson & Göran Svensson (editors) (2009) Global Marketing: think globally and act locally, Lund: Studentlitteratur, ISBN 978-91-44-05555-8 .
    • Kotabe, Masaki and Helsen, Kristiaan (2004) Global Marketing Management, 3rd edition, John Wiley & Sons, ISBN 0-471-23062-6 .
    • Philip Kotler & Keller (2005) Marketing Management, 12th edition, ISBN 81-203-2799-3 .
    • Theodore Levitt (May–June 1983) “The Globalization of Markets”, Harvard Business Review 61: 92-10.
    • Young, Charles E. (April 2005) Advertising Research Handbook, Ideas in Flight, Seattle, ISBN 0-9765574-0-1.

    External links[edit]

    • Media related to Global marketing at Wikimedia Commons