Factors influencing the choice of Internet advertising instruments while launching the product on the international market

It turned out that members of individualist cultures perceive banner advertising is worse than representatives of collectivist societies. The authors recommend taking into account the above-mentioned characteristics of the audience at the targeting of banner advertising campaigns.

Advertising is considered a form of social communication that reflects the cultural values of a society. Different cultures seem to emphasize different advertising arguments, with ads embedding the cultural values, norms, and characteristics of the country in which they are released. Japanese commercials, for example, often address to traditional Japanese cultural values in advertising content. German commercials more commonly use advertisement with individualism, independence, and self-achievement.

Research suggests that culture may play a central role in shaping emotional experiences (Lutz, 1998). Cultural factors have been shown to influence how consumers respond to the content of advertisements (Tse, 1989) and their attitude toward both the advertisement and the promoted product. Thus, members within an individualistic culture differ from members within a collectivistic culture in terms of their affective responses to the cultural values and interests conveyed by an advertising argument.

Advertisers must carefully consider the language to be used in an international advertising campaign as well as the type of ads to be used ( Becerra, 2010; Mueller, 2009). Many advertisers prefer to advertise in one language worldwide because it is less expensive.

However, Chen, Ross, Yen (2009) observe that consumers often prefer web site content that is written in their local language. A consumer preference for localized content, bilingual individual's process information at two levels: the linguistic and the conceptual level.

It is important to sum up that different aspects can influence on how customers abroad will accept an advertisement. Further will be analyzed how it able to influence the choice of internet marketing tools.

Theoretical base of the research.

Theoretical base of the research is a study of Dureen Jayarama, Ajay K. Manraib, Lalita A. Manraib (2015) “Effective use of marketing technology in Eastern Europe: Web analytics, social media, customer analytics, digital campaigns and mobile applications”.

Authors develop three different “Sled Dog Team layouts” for market characteristics and technologies for three Eastern European countries, namely, Slovakia, Bulgaria, and Albania.

The authors develop a model in which the country is divided into three clusters and compare their market performance.

3. The primary research

Based on the literature review and theoretical base of the research were isolated factors which describe different market characteristics. These consist of digital, economic situation, demand type, privacy laws, demographics, competitive conditions, attitude towards technology, institutional maturity, corporate social responsibility, corruption, culture and religion. The attributes associated with each of these characteristics are given further.

Cultural Characteristics

· The level of influence of cultural norms and traditions on population;

· Cultural variation on power distance, uncertainty avoidance, individualism, and masculinity;

· Devoutness (the influence of religion).

An Internet connection

· Extent of population with access to the Internet;

· Total number of people with access to the Internet;

· Speed of the Internet connection;

· Laws on Internet usage;

· Types of devices available;

· Quality of devices available.

Economic conditions

· Economy;

· Consumer buying power (purchasing power);

· The average income.

Media market

· Prevalence of traditional media (print, billboards, radio and television).

Laws

· Tax laws;

· Consumer rights;

· Business rights;

· Clarity of regulation;

· Degree of regulation.

Demography

· Demographics Age: median, mean, standard deviation;

· Education level;

· Gender discrimination.

Competitive conditions

· Competitors' experience with marketing technology.

The industry experts identified the existence of significant international competitive pressures, with the leading agencies competing against each other in major markets, and failure in one location having implications in multiple markets. Hence, firms are pressured to maintain their standards and cannot afford to relax in any of their overseas markets.

Technology Openness

· Degree of personal use;

· Degree of commercial use;

· Degree of government use;

· Degree of school use;

· Trust in online transactions.

Consumer protection

· Corporate Social Responsibility;

· Prevalence of private sector corruption.

Government factors

· Political situation.

Variations in the regulation and oversight of advertising content can constrain the adoption of globally standardised campaigns. However, their overall assessment of the influence of government forces was that they are relatively unimportant. In general, there are no significant investment barriers impacting the industry and few restrictions on cross-national ownership.

3.1 Qualitative interview with experts

The research is aiming to find factors, which could influence the choice of the Internet advertising tools while launching the product on the international market. Particularly the factors are provided by expert interviews with managers who work in companies on the international market and international marketing agencies.

Semi-structured interviews according to Bernard (1988) were held, where the order of the questions and their formulation can be change during the conversation.

An “interview guide” was used. This is a list of questions and topics that need to be covered during the conversation, usually in a particular order. Interviewing started with more general questions and became the basis for more specific questions, some questions did not prepare in advance.

The experts are specialists who are aware of specific aspects like the launch of advertising abroad and launch products or services to international markets.

Interviews were held personally and by Skype. The companies which were considered for this research are:

LLC "E-Promo" is a full-service Internet marketing agency, Google and Yandex certified Partner agency, specializing in SEO, Paid Search, Social Media Marketing, Web design and Web development.

Dentsu Aegis Network Ltd. is a multinational media and digital marketing communications company headquartered in London, UK. Dentsu Aegis Network through nine global network brands Carat, Dentsu, Dentsu media, iProspect, Isobar, mcgarrybowen, MKTG, Posterscope, and Vizeum and supported by growing specialist/multi-market brands including Amnet, Amplifi, Data2Decisions, Mitchell Communications Group, psLive and 360i - provide expertise and capabilities in brand, media and digital communications services. Dentsu operates in 145 countries around the world.

LLC "ELECTROM" is a specialized company in Russia manufacturing alternators and starters motors for cars, trucks, buses, commercial vehicles as well as for marine diesels.

LLC "LUKOIL-AERO" is one of the largest companies which implements the wholesale and "into the wing" aviation fuel in the airports of the Russia, Bulgaria, Ukraine, Czech Republic and Turkey. Implementation of aviation fuel is carried out through direct contracts with customers and through the stock exchanges. Customers are practically all major Russian and foreign airlines.

"Bitrix24" is an initiative of Bitrix, Inc., a privately-owned company. The Bitrix24 service is the final evolutionary stage of Bitrix Intranet and Extranet solutions. Bitrix24 provides tools for task management, document sharing, and time tracking integrated into just this type of social interface for maximum efficiency of communications and work. Bitrix sell their products worldwide.

Sfinks is Russian company producing hardware and software and operating abroad in CIS, Eastern and Central Europe and the Arab countries.

"LinguaLeo" provides a personal online service that helps people master foreign languages. It motivates learners by using game mechanics. The company was founded in 2010 and is based in Moscow, Russia. Over 13 million people worldwide use its online service to learn English. Lingualeo is the most popular language learning service in Russia/Ukraine/CIS and growing in Brazil and Turkey.

The main criteria for selection of experts interviewed are their competence, so the number of respondents in this case is measured not so much quantitative as qualitative indicators.

Interviews were based on an “interview guide”, which include 8 main questions. The main questions:

• Countries, where the company operates or it is planning to launch products and services.

• Type of products or services with which the company has entered or is planning to enter into the international market.

• What researches did the company make before launching products or services abroad? What did you analyze?

• Have you used the services of third parties, research and advertising agencies?

• Which factors are important the company chooses advertising tools for launching the products on the international market?

• Do you use online (digital) advertising for the promotion abroad? If so, which tools and platforms.

• If your company uses tools for Internet advertising, does the company do advertisement personally or use the services of advertising agencies.

• Please select the factors, which you think, influence the choice of Internet advertising tools while launching the product on the international market. Why do you think it is important to consider?

During the interview, with the permission of the interviewee, recording the responses was carried out. The information obtained was analyzed for correlation of opinions and statements of the respondents, on the similarity of the responses.

Further it will be demonstrated the main findings.

3.2 Results of the interviews

The information collected was systematized.

According to experts a list of factors, which can influence the choice of the Internet advertising tools while launching the product on the international market, were formed:

· Culture and traditions.

· Capacity of product demand in the Internet.

· The level of Internet penetration.

· Mobilization.

· The level of economic development of the country.

· The level of education.

· The level of development of the market.

· Logistics.

· Language.

It may be concluded that many of the factors in the development of the product for global market depend on the business sphere and market (B2C, B2B). There is no doubt every business has its own unique approach. What for one area of business like for company LinguaLeo culture and religion is crucial element for another company, for example, which sell fuel - it is not so important.

The choice of marketing tools depends on the direction of activities, goals, strategies, the real possibilities of the company. It is necessary promotional tools to the right audience with the scientists that time, in the best environment and the most logical place to advertising message not only reached the most extensive audience but also attracted the attention and prompted buyers to certain action.

Campaigns working on B2B prefer a greater degree, to use traditional methods of promotion, such as for example participation in exhibitions. But they also use SEO promotion on the Internet.

Experts confirmed the opinion of the researchers that culture and lifestyle have become a major driving force in making purchasing decisions. In recent decades, people have become more inclined to purchase products identified with the values that they share.

Experts agreed that before entering the foreign market they do a lot of consultation with experts, consistent attendance of all world exhibition of industry; do market research online and offline; use data of analytical agencies and advertisers cases.

The most common answer what kind of Internet advertising they use in promoting abroad was paid search, SEO, targeted ads in social networks. But often online advertising is used cautiously and when the situation on the market will be more stable for a company.

Experts said that they do online advertising on their own or use the services of international advertising agencies.

To sum up, all interviewers agreed that when company launching new product for international market and creating advertising campaigns the basic components of global marketing analysis should be the following elements: analysis of the economic environment and also analysis of the cultural environment.

It is interesting to notice that experts did not mention religion and political, legal system as crucial elements in promoting abroad, while researchers augured that it is very important factors.

3.3 Research hypotheses

The aim of the present research study is to examine interrelations among specific factors pertaining to Internet advertising tools. Six hypotheses have been put forward.

• Hypothesis 1. Market conditions influence the choice of internet advertising tools.

• Hypothesis 1.1 There is a correlation between the level of mobilization and expenditure on mobile advertising.

• Hypothesis 1.2 There is a correlation between high Internet penetration and expenditure in video advertising.

• Hypothesis 1.3 There is a correlation between the level of economic development and expenditure in the paid search.

• Hypothesis 1.4 There is a correlation between the percentage of people with higher education and spending in search advertising.

By a statistical analysis the hypothesis will be confirmed or refuted.

3.4 Multivariate statistical analysis

For the practical reasons in the research were imposed limitations. Factors, approved by expert interview, which describe different market characteristics of 28 countries, were analyzed.

28 countries were selected with different market characteristics and different levels of economic development. List of countries: United States, Austria, Egypt, Finland, France, Germany, Greece, Ireland, Israel, Italy, Kenya, Nigeria, Poland, Norway, Romania, Russian Federation, Saudi Arabia, South Africa, Spain, Sweden, Turkey, United Arab Emirates, United Kingdom, China, India, Japan, Korea Rep., Brazil.

Below there are description on these factors. Some of the data relate directly to the market characteristics:

GDP per capita.

Gross Domestic Product (GDP) is the total value of all final goods and services produced during a year in the territory of the residents of the country, expressed in the end customer prices. In practice, this means that GDP includes the results of all enterprises, organizations, institutions and other units, which operate in the economic territory of the country, including the enterprise, completely controlled by foreign capital, as well as branches of foreign companies. GDP - one of the key quantitative indicators of economic development that is used throughout the world for the most common characteristics of the economic performance of the country for a given period of time (usually a year), the rate and level of economic development. It is calculated without taking into account depreciation of fabricated assets or depletion and degradation of natural resources. Data are in current US dollars.

Personal Remittances in million dollars US.

Revenue part consists of income from different sources, which can be identified by means of statistical and financial reporting, sample surveys and other methods.

Salary; Incomes of workers and employees of enterprises and organizations; Dividends; Proceeds from the sale of agricultural products; Pensions and benefits; Scholarships; Proceeds from the financial system, including: insurance claims, loans for individual housing construction and other purposes, debt variation on loans for consumer purposes, interest on deposits, gains and repayment of loans, lottery prizes, change of the debt of the population for the purchase of goods credit, debt variation on loans to persons carrying out activities without establishing a legal entity, reimbursement disabled, damages repressed citizens; Incomes from the sale of foreign currency; Money received for transfers (excluding translated).

Logistics performance.

In 2007, the World Bank, together with the University of Turku (Finland) was first developed method of estimation of the level of logistics development in different countries. LPI (Logistics Performance Index) is calculated on the basis of surveys of international, national or regional logistics and warehouse operators, freight forwarders. The survey consists of two parts: a determined international index of the LPI (on a scale of respondents rate criteria, reflecting the efficiency of the logistics system for the 8 countries with which operates a logistics company) and internal (on a scale of respondents rate the logistics system of the country in which the work). On this basis, the index is calculated integral indicator LPI and among the countries participating in the rating.

Population.

Population demographic are a set of people living in the world (the world population), or within a particular area - continent, country, region. Population continuously renewed during reproduction. Births, deaths, natural population growth - is basically biological processes. But, nevertheless, a decisive impact on them has socio-economic conditions of people's lives, as well as the relationship between them in the society and in the family.

Government expenditure on education.

Rating countries by the level of spending on education calculated as total public and private expenditure on education as a percentage of gross domestic product (GDP).

Public expenditure on education include expenditures of all levels of government: local, regional and national. They include not only the funding of schools, colleges and universities, but also other institutions that provide education-related services. These include the establishment of: administering education (for example, ministries or departments of education); providing ancillary services (advice on the choice of profession, Psychological counseling, transportation of students, etc.); forming curricula, conducting research and analysis in the field of education policy.

Adult population with Tertiary education.

The population with higher education is defined as those completing the highest level of education by age groups. This includes both theoretical programs leading to advanced research qualifications or professions and more vocational programs leading to the labor market. (OECD, 2014).

High-technology exports.

The World Bank regularly publishes data in current US dollars on volume and value share in the export of manufacturing, research and development, including in high-tech exports, including the following products: aerospace equipment, counting equipment, pharmaceutical products, scientific instruments and electrical machinery.

Secure Internet servers.

Secure servers are servers using secure technology in Internet transactions.

The level of Internet penetration.

It is calculated by the method of the International Telecommunication Union as the number of Internet users per 100 people.

The level of mobile phone penetration.

Calculated as the number of mobile devices per 100 people.

It was conducted ANOVA analyzes and Pearson Correlation.

With ANOVA investigate the effect of one or more independent variables and one dependent variable (univariate analysis) or several dependent variables (multivariate analysis).

During research the following results were obtained.

Pearson correlation.

Pearson's correlation coefficient (r-Pearson) is used to study the relationship of two variables measured in metric scales on the same sample. It allows you to define how the proportional variability of two variables.

This ratio developed Karl Pearson, Francis Edgeworth and Raphael Weldon in the 90s of XIX century. The correlation coefficient ranges from minus one to plus one.

The correlation coefficient of r-Pearson characterizes the existence of a linear relationship between two variables. If the link is curved it will not work.

Correlation is significant at the 0.01 level. The results include: the correlation coefficient r of Pearson, the number of pairs of values of the variables used and the error probability p, corresponding to the assumption of a non-zero correlation.

The value of the correlation coefficient r Interpretation

0 <r <= 0.2 Very weak correlation

0.2 <r <= 0.5 The weak correlation

0.5 <r <= 0.7 The average correlation

0.7 <r <= 0.9 The strong correlation

0.9 <r <= 1 Very strong correlation

During research the following results presented in the table were obtained.

3.5 Results of the research

In calculating the correlation level by the coefficient Pearson is revealed high and significant correlation between the population and the cost of Internet advertising. There is high and significant correlation between Internet security and spending on mobile advertising.

The analysis represent that the level of economic development and GDP do not affect the cost of advertising on the Internet. Also factor in the level of education turned out to be not significant.

All costs of Internet advertising such as paid search, display advertising, mobile advertising and video advertising correlated. What can be concluded that by using one tool with another, increasing performance.

As a result of the analysis there are factors that influence the Internet advertising tools, but not all of them should be considered. This means that companies which launching a product on the international market should to conduct a thorough analysis of specific factors, specific to a particular product.

Hypothesis 1. «Market conditions influence the choice of internet advertising tools» was confirmed.

Hypothesis 1.1 «There is a correlation between the level of mobilization and expenditure on mobile advertising» was refuted.

Hypothesis 1.2 «There is a correlation between high Internet penetration and expenditure in video advertising» was confirmed.

Hypothesis 1.3 «There is a correlation between the level of economic development and expenditure in the paid search» was refuted.

Hypothesis 1.4 «There is a correlation between the percentage of people with higher education and spending in search advertising» was refuted.

Conclusion

marketing promoting international

Advertisement is one of the most important and effective ways to promote products/ services of the company. Although this tool is not always a basic, but very often it is the most expensive element of the marketing budget. That is why it is important to evaluate the effectiveness of advertising and choose the tools of promotion correctly.

It is necessary to choose promotional tools to the right audience with the scientists, in the best environment and the most logical place to advertising message to attracted the attention and prompted buyers to certain action.

The study revealed that there are factors, which influence the choice of the Internet advertising tools while launching the product on the international market.

But not all of the factors may in fact affect the online advertising tools. Statistical analysis showed that the GDP and household incomes does not influence the level of expenditure on an Internet advertising tools by countries.

According to the results of the expert survey it was found out that companies usually conduct a market analysis and advertise abroad by international agencies. If the advertising is carried out independently companies analyze only certain specific factors such as the level of competition in the market, the level of market development. According to experts companies are not carried out in a complex analysis.

The choice of marketing tools depends on the direction of activities, goals, strategies, the real possibilities of the company. Besides the market characteristics should be considered the market B2B or C2C, a product or service, competition on the market. But it is also cannot be ignored the culture and traditions of the country where the product will be launched.

According to statistics, the number of organic search traffic coming from mobile devices is constantly increasing. In this regard, the development of brand development strategies, it is necessary to consider the scope of mobile development.

It is essential to identify and understand the role of the Internet advertising tools and as part of the total marketing program. In this sense, the paper attempts to contribute a basis for understanding the role of Internet advertising in the changing marketing landscape. The paper attempts to position the Internet within the traditional advertising context and define a framework as basis for further analysis and research.

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