Transcript Document

Introduction
Why do we engage in
International Trade?
Silk Road
World Trade
Total world trade volume in goods and
services amounted to $6.5 trillion in 1998.
 The world’s five exporting countries are the
United States ($700 billion), Germany
($560 billion), Japan ($390 billion), France
($320 billion), and Britain ($260 billion),
collectively accounting for 42 percent of
global trade.

World’s 5 Exporters (42%)
Introduction (contd.)
The Triad Regions (North America, Western
Europe, and Japan) of the world collectively
produce more than 80% of world GDP.
 In the next ten to twenty years, Emerging
Markets (BEMs) – the Chinese Economic
Area (CEA) will provide many
opportunities in global business.

TRIAD (80%)
Big Emerging Markets
Why Global Marketing is Imperative
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Domestic-market saturation in the industrialized
parts of the world and marketing opportunities
overseas are evident in global marketing.
The term “global” epitomizes both the competitive
pressure and expanding market opportunities.
Competition around the world and proliferation of
the Internet are on the rise.
E-commerce is changing global communication
EXHIBIT 1-1 Change in the World’s 100 Largest Companies and
Their Nationalities
Evolution of Global Marketing
Five stages in the evolution of global marketing
(see Exhibit 1-2, p.12):
1. Domestic Marketing (domestic focus, home
country customers, ethnocentric orientation).
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– Ethnocentrism?
2. Export Marketing (indirect vs. direct exporting,
country choice, exports, ethnocentric orientation,
home country customers).
3. International Marketing (markets in many
countries, polycentric orientation, use of
multidomestic marketing when customer needs are
different across national markets).
Evolution of Global Marketing (contd.)
4. Multinational Marketing (many markets,
consolidation on regional basis, regiocentric
orientation, standardization within regions).
5. Global Marketing (international, multinational
& geocentric orientation, company’s willingness
to adopt a global perspective, global products with
local variations).
What is Global Marketing?

Global Marketing: Global marketing refers to marketing
activities that emphasize the following:
1. Reduction of cost inefficiencies and duplication of
efforts among their national and regional subsidiaries.
 How do companies become global?
2. Transferring products, brands, and other ideas across
subsidiaries.
 Why transfer ideas?
3. Emergence of global customers.
 Global customer?
4. Development of global marketing infrastructure.
 Global marketing infrastructure?
“Necessity is the Mother of Invention”
What is Economic Geography?
– Available resources (Human and Natural)
– Capital flows
– Some products demanded in some places more
than others.
How do Climate and Culture affect Marketing?
An Internet World
Global Perspective 1-1 (p.4)
 Will
Screen-to-Screen replace Face-toFace?
 Can the Human aspect of business
relationships be replaced by
technology?
 How has the Web changed the way we
communicate?
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How does the Internet change marketing?
– Changing retailing
– Integrating markets