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

  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

). –

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?

 1.

Global Marketing

: Global marketing refers to marketing activities that emphasize the following: Reduction of cost inefficiencies and duplication of efforts among their national and regional subsidiaries.



How do companies become global?

2.

3.

Transferring products, brands, and other ideas across subsidiaries.



Why transfer ideas?

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-to Face?

 Can the Human aspect of business relationships be replaced by technology?

 How has the Web changed the way we communicate?

 How does the Internet change marketing?

– Changing retailing – Integrating markets