ch. 1 - the global marketing imperative

International Marketing

CHAPTER 1

The Global Marketing

Imperative

I. International Marketing Definition

International Marketing - is the process of planning and conducting transactions across international borders to create exchanges that satisfy the objectives of individuals and organizations.

The Global Marketing Imperative

II. Why Global Marketing is Imperative

1) Saturation of domestic markets

2) Global competition intensifying.

3) Need for global cooperation

4) Internet: The Internet and electronic commerce revolution

5) Expanding market opportunities.

Selected U.S. Companies and Their International Sales

Why Global Marketing is Imperative

“If we only distributed pictures in the U.S., we’d lose money. It takes the whole world now to make the economics of movie-making work”

- William Mechanic

President, 20th Century Fox

Foreign Acquisitions of U.S. Companies

III. The Importance of World Trade

World trade in merchandise: from $6.2 trillion in 2000 to over $15.1 trillion in 2008.

World trade in services: from $1.5 trillion to $3.3 trillion.

Global growth of trade has outperformed the growth of domestic economies in the past few decades.

III. The Importance of World Trade

Provides new marketing opportunities such:

- investment on a global scale

- international specialization and cross-sourcing

- increased quality and variety of goods

- access to otherwise unavailable goods

- access to talent, new management knowhow

- use of technology to enhance business functioning, etc.

IV. Advantages of International Trade for Consumers

Better quality More quantity Greater variety within product categories More customized products/Services Lower prices Choice of products not available without international trade

(silk, diamonds, coffee, bananas, mica, chromium, and much more.)IK

V. Advantages of International Trade for Firms

Access to:– Bigger markets– Foreign resources– New management knowledge– New technologies

Experience with selling to diverse marketsChance to deal with different forms of governmentsChance to work in different competitive environmentsEnhanced ability to compete in home market

IK

VI. Global Marketing

Company treats world, including home market as one market

Market segmentation decisions no longer focused on national borders Defined by income levels, usage patterns, or other

factors

More than half of revenues come from abroadOrganization takes on global perspective