International Marketing Perspectives & Paradigms
Borders Have Become Meaningless & there’s no place to hide… The entire globe is now tied together as a single community operating 24/7/365 Trans-National* Cross-Cultural High Speed/ Low Cost Transportation & Communication
After more than a century of electric technology, we have extended our central nervous system in a global embrace, abolishing both space & time” -Marshall Mc. Luhan, Understanding Media- 1955
The Global Village Driver The further & faster people are able to travel & communicate… the greater the amount of interaction & influence
![Digital age communication technologies Cable Television Pay Television Services Direct Broadcast Satellite [DBS] MMDS](https://present5.com/presentation/13a8eefcab7f5ce0a3caf16a392c95b7/image-5.jpg "Digital age communication technologies Cable Television Pay Television Services Direct Broadcast Satellite [DBS] MMDS")
Digital age communication technologies Cable Television Pay Television Services Direct Broadcast Satellite [DBS] MMDS and LMDS Digital Television Streaming Media Digital Radio Multimedia Computers and Video Games The Internet and World Wide Web Internet Commerce Office Technologies Virtual Reality Home Video Digital Audio Distance Learning Local and Long Distance Telephony Wireless Telephony Broadband Networks Residential Gateways and Home Networks Satellite Communications source >> Future Technologies Inc. [www. fti. com]
Rise of the “Global Village” … not just the “shrinking” of time & space The new electronic media have transcended time & space w/ “virtual mobility”
Time, Mobility & Economic Growth http: //www. flexibility. co. uk/issues/trans port/time-mobility. htm
Birth of the Global Village 25. 000 25 20. 000 COMPUTERS HOSTS IN INTERNET (MILLONS) 20 15 10 5. 000 5 4 130. 000 0 1969 JUL. 1992 JUL. 1989 SEP. 1991 MAR. JUL. SEP. JUL. 1994 1995 1996 1997 OCT. ENER. ABR FEB. NOV. 1993 1995 1996 1997
Growth Global Data Exchange Tbit/s 6 5 Data traffic 4 Total telephone traffic International telephone traffic Source: Arthur D. Little, 1999
The e. Economy projected to dominate GDP of United States w/in 3 years % 100 New “E”conomy 75 U. S. GDP 50 25 Industrial Economy 0 ’ 72 ’ 78 ’ 84 ’ 90 ’ 96 ’ 02 ’ 08
The Global Village The Global Economy Dismal. Scientist
One Big World Market: The Global Economy … the increasing tendency of economies around the world to interact w/ one another as one market instead of many national markets
Along w/ collapse of Time & Space …the collapse of Communism the GLOBALIZATION OF MARKETS AND ECONOMIES accelerated by acceptance of free enterprise/market system….
Other Drivers of Evolution of Global Economy • Gov’t Liberalization / Deregulation • Explosion in International Trade Agreements / Regional Economic Intergration
Economic Integration thru 130+ Trade Agreements Ranging From: Economic Unions Common Markets Customs Unions Free Trade Areas Common External Trade Policy $ /Labor Mobility Total Political. Economic Integration
US Trade Agreements
World Market Connections
INTERNATIONAL LINKAGES Goods & Services Trade Flows Capital & Labor Resource Flows Information &Technology Money
One Big World Market: The Global Economy The weekly volume of international trade in currencies exceeds the annual value of trade in goods & services.
One Big World Market: The Global Economy • Daily international financial flows now exceed $1. 2 trillion. • From 1990 to 2000, world GDP grew ~ 30% – Total world exports of merchandise & services increased by 80 %. • This year- World exports of goods & services predicted to reach $11. 4 trillion (24% of world GDP). World Bank
THE UNITED STATES & WORLD TRADE Principal U. S. Exports & Imports Exports Amount Chemicals Semiconductors Consumer Durables Computers Generating Equipment Aircraft Telecommunications Automobiles Grains Nonferrous Metals $49. 8 42. 3 40. 1 38. 6 27. 6 26. 7 22. 2 20. 5 14. 4 12. 2 Imports Amount Automobiles $114. 1 Petroleum 103. 6 Computers 75. 3 Household Appliances 66. 4 Clothing 64. 3 Chemicals 33. 1 Consumer Electronics 32. 8 Semiconductors 26. 0 Telecommunications 23. 2 Iron and Steel 17. 7
THE UNITED STATES & WORLD TRADE U. S. Exports & Imports of Goods Exports to: Industrial Countries Developing Countries Total $38 B 302 $683 Imports from: Industrial Countries Developing Countries Total $594 B 573 $1167
THE UNITED STATES & WORLD TRADE U. S. Exports & Imports of Goods Imports Exceed Industrial Countries Exports By $381 Developing Countries $484 Billion (2002) 301 That’s Each! Total over 9, 680, 000 Jobs at $50, 000 $683 Industrial Countries $594 Developing Countries 573 Imports Exceeded Exports by Total $1167 $346 Billion in 1999
China • In 2003, China accounted for more than 60% of growth in world trade • Every week, more than $1 billion in FDI flows into China • ~15%b annual growth in foreign trade since 1978 • 2003 - world’s 4 th largest exporter: $438 b after US, Germany and Japan • 2003 - world’s 6 th largest importer: $412 b
The Global Village The Global Economy The Global Corporation
Evolution of MNC’s & Management Strategies • Multinational corporations (MNCs) Companies that maintain significant operations in two or more countries simultaneously but are based in one home country n. UN databases
ACHIEVING GLOBAL SYNERGIES LEVERAGING ASSETS AND POSITION n n n Scale Efficiencies Coordination and Integration Transfer of Ideas, Experience and Know-how STRATEGIC FLEXIBILITY n Global Strategy n n n Production Shifting Multiple Sourcing Transfer Pricing Managing Cash Flow
Multinational Corporations • In 1970, of the 7, 000 multinationals identified by the United Nations, more than 1/2 were from -- the United States & Britain. • By 1995, less than half of the 36, 000 multinationals identified by the United Nations came from four countries: the United States, Japan, Germany, and Switzerland.
Multinational Corporations • At present, there are 65, 000 MNCs* w/ 850, 000 affiliates in foreign countries • MNCs’ total sales amount to almost $19 trillion. *The U. S. government defines a multinational corporations (MNC) … as a company that owns or controls 10%. . of at least one foreign business enterprise.
Multinational Corporations • 2/3 s of world trade in goods and services is controlled by multinational companies. • Of the 100 largest economies in the world, 51 are corporations. • The sovereignty of nations will perhaps continue to weaken due to multinationals & increasing integration of world economies.
Evolution of the International Firm Exporter Multi-National Trans-National Global
• Multinational corporations (MNCs) Companies that maintain significant operations in two or more countries simultaneously but are based in one home country • Transnational (TNC) corporation A company that maintains significant operations in more than one country simultaneously and decentralizes decision making in each operation to the local country • Global corporations… take an integrated approach across countries and regions and manage for worldwide business leverage & competitive advantage …
The Global Corporation § Global Vision § Global Leverage § Global Sourcing §Global Competitive Moves § Global Partnerships
The Global Corporation- A Global Mindset • Global Identity • Single Corporate Language • Global Ethical Standards • Multi-Country Careers • Cross-Cultural Training • Cross National employment. . especially management at all levels
The Global Village Global Marketing Strategy The Global Economy The Global Corporation
Global Marketing Strategy Drivers • Common customer needs • Global customers • Global Distribution & Communication channels
Global Marketing Evolution Develop Core Business Strategy Core Concepts & Values Translate/Execute strategy in selected countries. . Integrate & leverage global assets & alliances Country A Country B Country C Country D
Requisite Global Marketer Expertise Country/ Market Knowledge Cross-Border Transactions Knowledge Cross-Cultural Knowledge
COUNTRY / MARKET KNOWLEDGE Risk Export Licensing Contract Manufacturing Joint Venture Direct Investment Return/Control Research & Intelligence • Global Marketing Opportunity & Target Market Assessment • Market Entry Planning & Strategy
CROSS-BORDER TRANSACTIONS NOWLEDGE • Standards, Liability • Currency Regulations & Product Risk/ Pricing/ Getting Paid Risk to Exporter Least Risk Cash in Advance Highest Risk Confirmed Irrevocable Bank Irrevocable Letter of Collection Letter of Credit Sight Draft Bank Collection Open Time Draft Account Cost to Buyer Highest Cost Least Cost
CROSS CULTURAL KNOWLEDGE Cross-Cultural Understanding, Sensitivity Social Responsibility & Government Relations Language Proficiency Cross. Cultural Negotiation Skills
Globalization: + The Global& Cultural Impacts Village Global Marketing Strategy Global WEEK: NEXT Pricing & Distribution Globalization: As Considerations a Business & International Marketing Strategy Communication Political * Legal & The Global Regulatory Considerations Economy Regional Economic Integration The Global & Culture * Customs Business Practices Corporation
Скачать презентацию International Marketing Perspectives Paradigms Borders Have
13a8eefcab7f5ce0a3caf16a392c95b7.ppt