Fiche marketing

Fiche Marketing

Silk Road 🡪 that once connected East with West from Xian (China) to Rome (Italy).

The Amber Road 🡪 Via the Vistula and Dnieper rivers to head of Adriatic coast (Venice)

Total world merchandise trade volume: $7.6 trillion in 2000, $19.0 trillion in 2014 and 17.9 in 2017

The world’s 5 largest exporting COUNTRIES in 2014:

• USA ($1.61 trillion)
• China ($2.25 trillion)
• Japan ($710.5 billion)
• South Korea ($628.0 billion)
• Germany ($1.54 trillion)

The Developed Countries:  Countries with highly developed economies and advanced technological structures; moreover they have a post-industrial economy where the services sector produces more wealth than the industrial sector.

Big Emerging Markets (BEMs): CEA & ASEAN will provide many opportunities in global business.

Kind of old because BRICS countries, Mexico and South Korea are emerged and take part to the global economy.

New approach to re-label emerging markets:

• Advanced emerging (Brazil, Mexico, South Africa, Taiwan, Turkey, Malaysia, Thailand, Hungary, Poland, and the Czech Republic) : They are Upper Middle Income GNI countries with advanced market infrastructures or High Income GNI countries with lesser developed market infrastructures.

• Secondary emerging: (Chile, China, Columbia, India, Indonesia, Pakistan…):

- Upper Middle, Lower Middle and Low Income GNI countries with reasonable market infrastructures & significant size

- Upper Middle Income GNI countries with lesser-developed market infrastructures

• Frontier markets (have a stock market but nothing else): (Nigeria, Argentina, Vietnam) Downgraded from the secondary emerging market classification

GNI (gross natural income) similar to GNP (gross natural product), but with the indirect business taxes deducted.

Used to distinguish the mature economies with highly developed capital markets from the other countries with underdeveloped capital markets.

FTSE Group 🡪 their national income and the development of their capital market infrastructure are different from Advanced and Secondary Emerging Markets

Trans-Pacific Partnership Agreement (Now called the Comprehensive and Progressive Agreement for Trans-Pacific Partnership)

New trade agreement signed Jan. 2018 between 12 pacific rim countries

• Lowers trade barriers
• Establish common framework for intellectual property
• Enforce standards for labour and environnemental law
• Establish an investor-state dispute settlement mechanism

Why Global Marketing is Imperative ?

Saturation of domestic markets: Domestic-market saturation in the industrialized parts of the world and marketing opportunities overseas are evident in global marketing.

Global competition: Competition around the world and proliferation of the Internet have been on the rise and are now intensifying.

E.g., HP and Dell competing against Lenovo in China

Short technology life cycles

• Technology standards
• Network effect technologies

Need for global cooperation: Global competition brings global cooperation.

Internet revolution: The Internet and electronic commerce (e-commerce) are bringing major structural changes to the way companies operate worldwide.

Per capita income :

• important determinant of consumer buying behavior.
• When a country’s per capita income is less than $10,000, much of the income is spent on food and other necessities
• As a country’s per capita incomes reaches $20,000, the disposable portion of income increases dramatically
• People with higher incomes tend to enjoy similar educational levels, desires for material positions
• Consumers also have a wider, more divergent “choice set” of goods and services to choose from

5 Stages in the Evolution of global Marketing :

1. Domestic Marketing: Domestic focus, Ethnocentric orientation.

Ethnocentrism: predisposition of a firm to be predominantly unconcerned about its

viability worldwide and to think of its legitimacy only in its home country. (versus Self-Reference Criterion)

1. Export Marketing: indirect vs. direct exporting; country choice, export, ethnocentric orientation, home country customers.

1. International Marketing: Markets in many countries, polycentric orientation, use of multidomestic marketing when customer needs are different across national markets.
2. Multinational Marketing: Many markets, consolidation on regional basis, regiocentric orientation, standardization within regions.

1. Global Marketing: International, multinational & geocentric orientation, company’s willingness to adopt a global perspective, global products with local variations.

Global Marketing: Marketing activities that emphasize the following:

1. Glocalization efforts

• Achieves both efficiency and efficacy
• Compare to Standardization efforts.

1. Coordination across markets.

1. Global integration.

• Global marketing does not necessarily mean that products can be developed anywhere on a global scale.
• The economic geography, climate, and culture affect how companies develop certain products.
• The Internet adds a new dimension to global marketing.
• E-commerce retailers gain substantial savings by selling online.

Evolution of Global Marketing

• Future Forms of International Corporations : PME rather than big companies, technologies these PME can become as efficient as big companies, economies of scope

• Supranational Firms : A firm that is legally denationalized by becoming incorporated through an international agency (e.g., the U.N.). It would enable businesses to trade free from government restrictions

• World Corporations : Businesses freed from international political constraints. They could then act as leaders in a movement toward a more fully-integrated world. Their role would be to coordinate a transcultural, total manking-oriented approach to shaping the systems of society.

• Transideological Institutions : Ultimate system that would « neutralize destructive competitiveness among nation-states » and aim for the common good of mankind.

• Downside of Globalization : Samuelson Critical 🡪 When a rich country enters into a free trade agreement with a poor country that rapidly improves its productivity.

Samuelson suggests that in such cases, the lower prices that rich country customers pay for goods imported from poor country following the Free Trade , may not be enough to produce a net gain for the rich country economy if the dynamic effect of Free Trade is to lower the real wage rates in the rih country.

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