Globalization
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
1
19/10/2012
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?
2
19/10/2012
1. Why do we care about Global Marketing?
5
• 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
3
19/10/2012
Emerging Economies
7
•
•
•
• •
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
8
4
19/10/2012
1. Why do we care about Global Marketing?
• Global cooperation: Global
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
1
19/10/2012
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?
2
19/10/2012
1. Why do we care about Global Marketing?
5
• 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
3
19/10/2012
Emerging Economies
7
•
•
•
• •
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
8
4
19/10/2012
1. Why do we care about Global Marketing?
• Global cooperation: Global