Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.



Published on

  • Be the first to comment

  • Be the first to like this


  3. 3. 1 <ul><li>Overview </li></ul><ul><li>1. Why Global Marketing is Imperative </li></ul><ul><li>2. Globalization of Markets and Competition </li></ul><ul><li>3. Evolution of Global Marketing </li></ul><ul><li>4. Appendix </li></ul>Globalization ImperativeChapter One
  4. 4. Overview of Globalization <ul><li>A </li></ul>Imperative
  5. 5. 1 <ul><li>Exhibit 1-1 “Change in the World’s 100 Largest Companies” </li></ul><ul><li>global vs international vs multinational </li></ul>1. Why Global Marketing is Imperative
  6. 6. 1 <ul><li>Exhibit 1-2 “ US Balance of Goods, Services and Income over 20 Year Period” </li></ul><ul><li>International Trade (IT) and International Business (IB) </li></ul><ul><ul><li>IT = exports/imports </li></ul></ul><ul><ul><li>IB = includes IT and foreign production </li></ul></ul><ul><ul><ul><li>export of products </li></ul></ul></ul><ul><ul><ul><li>investment in foreign production </li></ul></ul></ul><ul><ul><ul><li>contract or manufacture in foreign country </li></ul></ul></ul><ul><ul><li>foreign production is larger than IT </li></ul></ul>2. Globalization of Markets and Competition
  7. 7. <ul><li>Global Reach </li></ul><ul><li>United States </li></ul><ul><ul><li>3:1 ratio of foreign products to exports </li></ul></ul><ul><ul><li>6:1 ration of US/European production to exports </li></ul></ul><ul><ul><li>5:1 ratio of European owned US located subsidiaries </li></ul></ul><ul><li>Japan </li></ul><ul><ul><li>2.5:1 ratio of Japanese subsidiaries to Japanese exports </li></ul></ul>2. Globalization of Markets and Competition (cont)
  8. 8. Competition (cont) <ul><li>Who Manages International Trade? </li></ul><ul><ul><li>intra-firm trade </li></ul></ul><ul><ul><ul><li>transfers to affiliates overseas </li></ul></ul></ul><ul><ul><ul><li>30% of US exports </li></ul></ul></ul><ul><ul><ul><li>30% of exports by Japan and Britain </li></ul></ul></ul>2. Globalization of Markets and
  9. 9. 1 <ul><li>What is Marketing? </li></ul><ul><ul><li>satisfies customers needs </li></ul></ul><ul><ul><li>anticipates and creates their future needs at a profit </li></ul></ul><ul><ul><li>reactively and proactively </li></ul></ul><ul><li>Domestic Marketing </li></ul><ul><ul><li>exhibit 1-3 </li></ul></ul><ul><ul><li>ethnocentric </li></ul></ul>3. Evolution Of Global Marketing
  10. 10. 1 <ul><li>Export Marketing </li></ul><ul><ul><li>ethnocentric </li></ul></ul><ul><li>International Marketing </li></ul><ul><ul><li>polycentric </li></ul></ul><ul><ul><li>multidomestic marketing </li></ul></ul><ul><li>Multinational Marketing </li></ul><ul><ul><li>regiocentric </li></ul></ul>3. Evolution of Global Marketing (cont)
  11. 11. 1 <ul><li>Global Marketing </li></ul><ul><ul><li>geocentrism </li></ul></ul><ul><ul><li>reduction of cost inefficiencies and duplication of efforts </li></ul></ul><ul><ul><li>opportunities to transfer products, brands and ideas across subsidiaries </li></ul></ul><ul><ul><li>emergence of global customers </li></ul></ul><ul><ul><li>improved linkages … leading to global market infrastructure </li></ul></ul>3. Evolution of Global Marketing (cont)
  12. 12. 1 <ul><li>Comparative Advantage Theory </li></ul><ul><li>International Product Cycle Theory </li></ul><ul><li>Internalization / Transaction Cost Theory </li></ul>4. APPENDIX
  13. 13. 1 <ul><li>Exhibit 1-4 “Comparative Advantage at Work” </li></ul><ul><li>absolute advantage vs comparative advantage </li></ul><ul><li>commodity terms of trade </li></ul><ul><li>principles of international trade </li></ul><ul><ul><li>1. countries benefit from international trade </li></ul></ul><ul><ul><li>2. international trade increases worldwide production by specialization </li></ul></ul><ul><ul><li>3. exchange rates are primarily determined by traded goods </li></ul></ul>COMPARATIVE ADVANTAGE THEORY
  14. 14. 1 <ul><li>Exhibit 1-5 “International Product Cycle” </li></ul><ul><li>first </li></ul><ul><ul><li>economies of scale </li></ul></ul><ul><ul><li>economies of scope </li></ul></ul><ul><li>second </li></ul><ul><ul><li>technological gap </li></ul></ul><ul><ul><li>monopoly power </li></ul></ul><ul><li>third </li></ul><ul><ul><li>preference similarity (consumption power) </li></ul></ul>INTERNATIONAL PRODUCT CYCLE THEORY
  15. 15. INTERNALIZATION/ TRANSACTION COST <ul><li>multinational companies </li></ul><ul><li>appropriability regime </li></ul><ul><li>dominant design </li></ul><ul><li>manufacturing and marketing ability </li></ul>THEORY