International Marketing Management IMMCH01.ppt

* * * * Copyright (c) 2007 John Wiley Sons, Inc. Copyright (c) 2007 John Wiley Sons, Inc. Copyright (c) 2007 John Wiley Sons, Inc. Copyright (c) 2007 John Wiley Sons, Inc. Copyright (c) 2007 John Wiley Sons, Inc. Copyright (c) 2007 John Wiley Sons, Inc. Copyright (c) 2007 John Wiley Sons, Inc. Copyright (c) 2007 John Wiley Sons, Inc. Global Marketing Management * Chapter 1 Globalization Chia-Wen Hsu 2011/03/04 Chapter Overview * 1. Why Global Marketing is Imperative 2. Globalization of Markets: Convergence and Divergence 3. Evolution of Global Marketing 1. 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. Need for global cooperation: Global competition brings global cooperation. 1. Why Global Marketing is Imperative * Internet revolution: The Internet and electronic commerce (e-commerce) are bringing major structural changes to the way companies operate worldwide. The term global epitomizes both the competitive pressure and expanding market opportunities. Whether a company operates domestically or across national boundaries, it can no longer avoid competitive pressures from around the world. Exhibit 1-1: Change in World’s 100 Largest Companies and Their Nationalities * 2. Globalization of Markets: Convergence and Divergence * Per capita income is an 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, and very little disposable income remains. As a country’s per capita incomes reaches $20,000, the disposable portion of income increases dramatically. This increased disposable income level results in increased convergent pressures on consumer buying behavi