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Chapter 1
Global Environmental Drivers
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
International Marketing Defined
• International marketing: Consists of
the activity, institutions, and processes
across national borders
• Creates, communicates, delivers, and
exchanges offerings that have value for
stakeholders and society
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
International Marketing Defined
• Forms of international marketing:
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© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
International Marketing Defined
• Marketing serves as a:
• Key agent of societal change
• Key instrument for the development of
societally responsive business strategy
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
International Marketing Defined
• Making decisions based on international
issues and repercussions requires
addressing the below questions:
• Where are my current and potential
customers?
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• Does international activity increase risk?
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
International Marketing Defined
• What marketing adjustments are or will be
necessary?
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• How do innovation and entrepreneurship
change the global marketplace?
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The Importance of World Trade
• Within the last decade, world trade
represents a growth of ___ percent for
trade in both merchandise and services
• Global growth of trade has outperformed
the growth of domestic economies in the
past few decades
• International specialization and crosssourcing have made production efficient
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The Importance of World Trade
• New and emerging economies have
liberalized their economic systems
• Bringing billions of new consumers into the
global economic system
• Offering a vast array of new marketing
opportunities
• Bringing-in production efficiency through
international specialization and cross-sourcing
• Redefining the way business is done through
revolutionary technologies
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The Importance of World Trade
• Trading blocs
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Global Linkages
• World trade has forged a network of
global linkages
• Binding countries, institutions, and individuals
closely
• Global linkages have become more
intense on an individual level
• Communication has built new international
bridges
© 2013 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 bringing about a global
reorientation of corporate processes
• Opening up entirely new horizons
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Global Linkages
• Global technological innovation in
marketing directly affects the efficiency
and effectiveness of business activities
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Global Linkages
• The level of global investment has:
• Resulted in the buildup of international debt
by governments
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• Provided foreign capital for firms
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Global Linkages
• Increasing foreign investments in some
key sectors have resulted in _________
• Realignments taking place on both micro
and macro levels make past trade
orientations partially obsolete
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Global Linkages
• The growth in the overall volume and
value of both merchandise and services
trade has had a major impact on
________________________________
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Domestic Policy Repercussions
• Policy makers find it difficult to isolate
domestic economic activity from
international market events
• Domestic policy measures are cancelled out
or counteracted by the activities of global
market forces
• Traditionally – currency flows are
determined by _______
© 2013 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
• In the more recent past:
• Currency flows have set ___________,
which are the values of currencies relative to
each other
• Exchange rates have begun to determine the
______________
• Firms and countries are quick to emulate
innovation and counteract carefully
designed plans
• Due to ________________________
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Domestic Policy Repercussions
• Governments are powerless to implement
effective policy measures
• Policy makers have imposed regulations
by means of:
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Domestic Policy Repercussions
• These measures too have been restrained
by international agreements that regulate
trade restrictions
• Particularly through the World Trade
Organization (WTO)
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Domestic Policy Repercussions
• Closer economic relations result in many
positive effects
• But, interdependence brings with it risks
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• Key task for the international marketer is
to _______________________________
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Opportunities and Challenges
in International Marketing
• To handle newly emerging forces and
dangers of unforeseen influences from
abroad, firms need to:
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© 2013 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
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© 2013 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
• International opportunities require careful
exploration:
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© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.