Chapter 1
The Global
Marketing
Imperative
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What is International Marketing?
• International marketing consists of the activity,
institutions, and processes across national borders
that create, communicate, deliver, and exchange
offerings that have value for stakeholders and
society.
• Forms of international marketing include export–
• Marketing serves as a key agent of societal change
and as a key instrument for the development of
societally responsive business strategy.
© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
What is International Marketing?
• Questions to consider to deal with international
issues and repercussions and make appropriate
decisions:
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–
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© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
What is International Marketing?
• Questions to consider to deal with international
issues and repercussions and make appropriate
decisions:
–
–
–
© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
The Importance of World Trade
• World trade in merchandise has expanded from $6.2
trillion in 2000 to over $15.1 trillion in 2008.
•
• Global growth of trade has outperformed the growth
of domestic economies in the past few decades.
•
© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
The Importance of World Trade
• Trading blocs encourage trade relations between
their members through rules and standards, and also
affect the trade and investment flows of nonmember
countries.
•
© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Global Linkages
• Global linkages bind countries, institutions, and
individuals closely.
• These linkages have also become more intense on
an individual level.
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–
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© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Global Linkages
• World trade is also bringing about a global
reorientation of corporate processes, which opens up
entirely new horizons.
• The level of global investment has
–
–
–
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© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Global Linkages
• Realignments taking place on both _____ and _____
levels make past trade orientations partially obsolete.
• The growth in the overall ______ and _____ of both
merchandise and services trade has had a major
impact on firms, countries, and individuals.
© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Domestic Policy Repercussions
• Currency flows set exchange rates, which are the
values of currencies relative to each other.
•
© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Domestic Policy Repercussions
• The global market imposes increasingly tight limits on
national economic regulation and sovereignty.
•
• These measures too have been restrained by
international agreements that regulate trade
restrictions, particularly through the World Trade
Organization (WTO).
© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Domestic Policy Repercussions
• Though closer economic relations result in many
positive effects, interdependence decreases a
nation’s capability to do things its own way.
•
© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Opportunities and Challenges
in International Marketing
• To handle newly emerging forces and dangers of
unforeseen influences from abroad, firms need to:
–
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© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Opportunities and Challenges
in International Marketing
• The growth of global business activities offers
increased opportunities.
•
• International opportunities require an awareness of
global developments, an understanding of their
meaning, and a development of capabilities to adjust
to change.
© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.