Globalization

Topics: International trade, Globalization, Marketing Pages: 11 (1536 words) Published: January 5, 2013
19/10/2012

SESSION 1 THE GLOBALIZATION IMPERATIVE

Today’s Agenda (Chapter 1)
• 1. Why do we need to understand Global Marketing • 2. Globalization of Markets: Convergence and Divergence • 3. International trade vs International business • 4. Evolution of Global Marketing

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Overview
• Increasingly global environment for today’s marketing manager • However, not a new phenomenon – The Silk Road – Trade Routes from Ancient Rome

• The focus should be not the nature but the rate and type of change – World merchandise exports – US$6 trillion in 2000 – US$18.2 trillion in 2011

• Assume you are running a business in your own country, do you need to care about international marketing?

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1. Why do we care about Global Marketing?
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• Saturation of domestic markets: Domestic-market saturation in the industrialized parts of the world and marketing opportunities overseas are evident in global marketing.

1. Why do we care about Global Marketing?

• Global competition
– Whether a company operates domestically or across national boundaries, it can no longer avoid competitive pressures from around the world. – Changing dominance • Toyota displaces Ford at the top with 15% compared with 14% market share • IBM displaced by Dell, HP, Sony, Toshiba, and Samsung

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Emerging Economies
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• •

Largest big emerging markets (BEMs): Chinese economic area (including China, Hong Kong region, and Taiwan), India, C.I.S. (Russia, Central Asia, and the Caucasus states), South Korea, Mexico, Brazil, and Argentina Market opportunities – Over the next two decades, the BEMs will hold the greatest potential for U.S. exports Competitors – Asia’s share in total world merchandise exports was 27.7% (2008) Demand: Bottom of the pyramid Supply: comparative advantage

Leading Emerging Economies in 2008
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1. Why do we care about Global Marketing?

• Global cooperation: Global competition brings global cooperation. IBM, Sony, SCE and Toshiba to Jointly Develop Chip-Making Process Technology Powerful alliance is formed for semiconductor processes In a unique collaboration, IBM, Sony Corporation, Sony Computer Entertainment Inc. and Toshiba Corporation have signed a multi-year agreement to jointly develop advanced semiconductor technologies based on silicon-on-insulator (SOI) and other IBM materials advances. This will lead to the development of high-performance, low-power chips necessary for a wide range of future electronic products - - from digital consumer applications to supercomputers.

TOKYO, JAPAN and EAST FISHKILL, N.Y., April 2, 2002

World Internet Usage

/www.internetworldstats.com/stats.htm

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PM Lee's responses to Facebook feedback AsiaOne Fri, May 06, 2011

• On Wednesday night, May 4, 2011, Prime Minister Lee Hsien Loong engaged in a one-hour web chat on Facebook which saw him receiving over 6,000 questions and comments. On Thursday evening, he posted more responses.

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1. Why do we care about Global Marketing?

• Internet and E-Commerce
– Number and growth of internet users

• E-Commerce
– Two-way interaction between buyer-seller on a global basis – PR, marketing, consumer relationship, customized product design and development, supply chain management… – Opportunities for customisation: Dell, GM, Mazda

2, Globalization of Markets: Convergence or Divergence?

Per capita income

$20,000  disposable income increases dramatically – enjoy similar educational levels – desires for material positions, ways of spending leisure time, and aspirations for the future. • Increased disposable income level  convergent pressures on consumer buying behavior.

Divergence
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• Globalization does not suffocate local cultures, but rather liberates them from the ideological conformity of nationalism, with consumers becoming more receptive to new things....
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