WHAT IS THE

HEIGHT OF
GLOBALIZATION?

Princess Diana's

AnEnglishprincess with
anEgyptianboyfriend crashes in
aFrenchtunnel, driving
aGermancar with a Dutchengine,
driven by aBelgianwho was high
onScottishwhiskey, followed
closely byItalian Paparazzi,
onJapanesemotorcycles, treated

And I got that message via e-mail by

aPakistani, using Bill Gates'
technology, which he stole from the
Japanese. And you are reading this on
one of the IBM clones that
useTaiwanese-made chips,
andKoreanmade monitors, assembled
byBangladeshiworkers in
aSingaporeplant, transported by
lorries driven byIndians, hijacked

globalizati
on
IMPERATIV
E

WHY GLOBAL MARKETING IS

IMPERATIVE
GLOBALIZATION OF MARKETS:
CONVERGENCE AND DIVERGENCE
EVOLUTION OF GLOBAL MARKETING

FROM YESTERDAY TILL

TODAY

Products have been traded across borders

throughout recorded civilization, extending back
beyond the Silk Road that once connected East
with West from Xian (China) to Rome (Italy).
Total world trade volume in goods and services
grew from $6.5 trillion in 1998 to $21.6 trillion
in 2013.

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.
The Emerging Markets: BRIC, BEMs, ASEAN
Global competition: Competition around the world and proliferation of the
Internet are on the rise.
Need for global cooperation: Global competition brings global
cooperation.

WHY GLOBAL MARKETING IS

IMPERATIVE

Internet revolution: The Internet and electronic commerce (ecommerce) 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.

GLOBALIZATION OF MARKETS:
CONVERGENCE AND DIVERGENCE

International trade consists of exports and imports.

International business includes international trade and foreign production.
Extensive international penetration of companies is called global reach.
International trade and foreign production activities are managed on a
global basis.
Growth of Multinational Corporations (MNCs) and intra-firm trade is a
major aspect of global markets.

GLOBALIZATION OF MARKETS:
CONVERGENCE AND DIVERGENCE

International trade versus international

business:
International trade consists of exports and imports.
International business includes international business trade and foreign
production.

Who manages international trade?

Intrafirm trade: Trade between MNCs and their affiliates.

EVOLUTION OF GLOBAL MARKETING

What is marketing?

Marketing involves the planning and

execution of the conception, pricing, promotion, and distribution of
ideas, products, and services.

Marketing involves customer satisfaction and their current and future

needs.
Marketing is much more than selling and involves the entire company.
Within marketing strategies, companies are always under competitive
pressure to move forward both reactively and proactively.

EVOLUTION OF GLOBAL MARKETING

Domestic Marketing (domestic focus; home country

customers; ethnocentric orientation).
Export Marketing (indirect vs. direct exporting; country
choice, exports; ethnocentric orientation; home country
customers).
International Marketing (markets in many countries;
polycentric orientation; use of multidomestic marketing when
customer needs are different across national markets).

EVOLUTION OF GLOBAL MARKETING

Multinational Marketing (many markets;

consolidation on regional basis; regiocentric
orientation; standardization within regions).
Global Marketing (international, multinational &
geocentric orientation; companys willingness to
adopt a global perspective; global products with
local variations).

EVOLUTION OF GLOBAL MARKETING

Global Marketing: Global marketing refers

to marketing activities that emphasize
on
1.

Standardization efforts.

2.

Coordination across markets.

3.

Global integration.

INTERNATIONAL PRODUCT LIFE

CYCLE

Introduction Stage

A Pakistani company innovates on a new

product in its home country.

Growth Stage

Product standards emerge and mass production

becomes feasible.

Maturity Stage

Many Pakistani and foreign companies vie for

market share in the international markets.

Decline Stage

Companies in the developing countries also begin