Professional Documents
Culture Documents
Chapter 1
Globalization of Markets
Global Perspective:
Boeing Company example Peace Works company example
Globalization of Markets
4 Prevailing trends that have the most impact on international business in the future:
1. Growth of the World Trade Organization and region free trade areas (NAFTA, European Union..) 2. Trend of developing countries (such as Asia, Latin America, Eastern Europe) accepting the free market system 3. Impact of the internet and other global media companies (CNN) 4. Mandate for companies to properly manage resources
Globalization of Markets
Why international marketing is so important:
Companies can no longer ignore the effects of internationally marketing
Competition no longer exists just from domestic companies (exhibit 1.1 pg. 7) In order to sustain profitability and growth margins of the past, companies have to look for alternative methods of marketing their products and services
In a study conducted on U.S. manufacturing companies of all sizes, it was found that multinational companies outperformed their strictly domestic U.S. counterparts by more than twice as fast in sales and earned much greater returns on equity and assets.. (exhibit 1.2 pg. 9)
Globalization of Markets
Definition of International Marketing:
The performance of business activities designed to plan, price, promote and direct the companys flow of goods and services to consumers or users in more than one nation for a profit (4 Ps)
4. International Marketing
Companies are fully engaged in international marketing strategies
Companies are now international or multi-national