Copyright © 2007 by South-Western, a division of Thomson Learning. All rights reserved. The Global Marketing Imperative Chapter 1.

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Presentation transcript:

Copyright © 2007 by South-Western, a division of Thomson Learning. All rights reserved. The Global Marketing Imperative Chapter 1

Copyright © 2007 by South-Western, a division of Thomson Learning. All rights reserved. What is International Marketing? The process of planning and conducting transactions across national borders to create exchanges that satisfy the objectives of individuals and organizations.

Copyright © 2007 by South-Western, a division of Thomson Learning. All rights reserved. International Marketing Questions  Should I obtain my supplies domestically or from abroad?  What marketing adjustments are or will be necessary?  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?

Copyright © 2007 by South-Western, a division of Thomson Learning. All rights reserved. World Trade Importance World trade has grown tremendously in the past three decades. The Iron Curtain is gone and capitalism has replaced the old economic doctrines. Firms invest on a global scale. New technologies have changed the way we do business. New trading blocs are emerging.

Copyright © 2007 by South-Western, a division of Thomson Learning. All rights reserved. Growth in World Trade World trade in merchandise has grown from $6.2 trillion in 2000 to over $9 trillion in World trade in services has expanded from $1.5 trillion in 2000 to $2.1 trillion in 2005.

Copyright © 2007 by South-Western, a division of Thomson Learning. All rights reserved. Examples of Trading Blocs European Union in Europe NAFTA in North America Mercosur in Latin America ASEAN in Asia

Copyright © 2007 by South-Western, a division of Thomson Learning. All rights reserved. Global Linkages Global linkages bind countries, institutions, and individuals more closely than ever. World trade opens up entirely new business horizons.

Copyright © 2007 by South-Western, a division of Thomson Learning. All rights reserved. Trade and Domestic Growth Rates

Copyright © 2007 by South-Western, a division of Thomson Learning. All rights reserved. Domestic Policy Repercussions Considerations Lowering of interest rates, happy U.S. customers but what about impact of countries offering higher interest rate? Agricultural and farm polices. Currency flows. Exchange rates.

Copyright © 2007 by South-Western, a division of Thomson Learning. All rights reserved. Export Growth Rates

Copyright © 2007 by South-Western, a division of Thomson Learning. All rights reserved. Meeting International Challenges Be prepared and develop active responses. Develop new strategies. New plans are needed. Adaptation to the new environment and markets.