Principles of International Marketing Chapter 1 The Global

Principles of International Marketing Chapter 1 The Global Marketing Imperative 9 th Edition © 2010 South-Western/Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

The International Marketing Task • Insert Exhibit 1. 3 © 2010 South-Western/Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

What is International Marketing? • 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? © 2010 South-Western/Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

What is International Marketing? • 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? © 2010 South-Western/Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

What is International Marketing? • 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? © 2010 South-Western/Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

The Importance of World Trade • 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. © 2010 South-Western/Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

The Importance of World Trade • 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. © 2010 South-Western/Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Global Linkages • 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. © 2010 South-Western/Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Global Linkages • 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’. © 2010 South-Western/Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Domestic Policy Repercussions • Currency flows set exchange rates, which are the values of currencies relative to each other. • Exchange rates have begun to determine the level of trade. © 2010 South-Western/Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Domestic Policy Repercussions • 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). © 2010 South-Western/Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Domestic Policy Repercussions • 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. © 2010 South-Western/Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Opportunities and Challenges in International Marketing • 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. © 2010 South-Western/Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Opportunities and Challenges in International Marketing • 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. © 2010 South-Western/Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.