0 Principles ofInternational Marketing 9th Edition Chapter 1 The Global Marketing Imperative
The International Marketing Task • Insert Exhibit 1.3
What is International Marketing? 0 • 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–import trade, licensing, joint ventures, wholly owned subsidiaries, turnkey operations, and management contracts. • Marketing serves as a key agent of societal change and as a key instrument for the development of societally responsive business strategy. Emerging marketing economies of china, Russia ,how does the marketing concept fit into these societies?
What is International Marketing? 0 • Questions to consider to deal with international issues and repercussions and make appropriate decisions: • Does my market have borders? • Should I obtain my supplies domestically or from abroad? • What marketing adjustments are or will be necessary?
What is International Marketing? 0 • Questions to consider to deal with international issues and repercussions and make appropriate decisions: • What threats from global competition should I expect? • How can I work with these threats to turn them into opportunities? • What are my strategic global alternatives?
The Importance of World Trade 0 • World trade in merchandise has expanded from $6.2 trillion in 2000 to over $15.1 trillion in 2008. • World trade in services has expanded from $1.5 trillion to $3.3 trillion. • Global growth of trade has outperformed the growth of domestic economies in the past few decades. • Provides new marketing opportunities such as investment on a global scale, international specialization and cross-sourcing, use of technology to enhance business functioning.
The Importance of World Trade 0 • Trading blocs encourage trade relations between their members through rules and standards, and also affect the trade and investment flows of nonmember countries. • Trading blocs include the European Union in Europe, NAFTA in North America, Mercosur in Latin America, and ASEAN in Asia.
Global Linkages 0 • Global linkages bind countries, institutions, and individuals closely. • These linkages have also become more intense on an individual level. • Communication has built new international bridges. • New products have attained international appeal. • Transportation linkages let individuals from different countries see and meet each other with unprecedented ease.
Global Linkages 0 • World trade is also bringing about a global reorientation of corporate processes, which opens up entirely new horizons. • The level of global investment has • Resulted in the buildup of international debt by governments. • Affected the international value of currencies. • Provided foreign capital for firms. • Triggered major foreign direct-investment activities’.
Domestic Policy Repercussions 0 • Currency flows set exchange rates, which are the values of currencies relative to each other. • Exchange rateshave begun to determine the level of trade.
Domestic Policy Repercussions 0 • The global market imposes increasingly tight limits on national economic regulation and sovereignty. • Policymakers have sought to restrict the impact of global trade and financial flows by erecting barriers, charging tariff s, designing quotas, and implementing other import regulations. • These measures too have been restrained by international agreements that regulate trade restrictions, particularly through the World Trade Organization (WTO).
Domestic Policy Repercussions 0 • Though closer economic relations result in many positive effects, interdependence decreases a nation’s capability to do things its own way. • The key task for the international marketer is to stimulate societal acceptance of the long-term benefits of interdependence.
Opportunities and Challengesin International Marketing 0 • To handle newly emerging forces and dangers of unforeseen influences from abroad, firms need to: • Be prepared and develop active responses. • Envision new strategies. • Develop new plans. • Change the way of doing business.
Opportunities and Challengesin International Marketing 0 • The growth of global business activities offers increased opportunities. • Knowledge transfer around the globe helps an international firm to build and strengthen its competitive position. • International opportunities require an awareness of global developments, an understanding of their meaning, and a development of capabilities to adjust to change.