Lecture global marketing: contemporary theory, practice, and cases – chapter 2: assessing the global marketing environment the global economy and technology

Chapter 2 – Assessing the Global Marketing Environment—The Global Economy and Technology “If GM had kept up with technology like the computer industry has, we would all be driving $25 ca

Chapter 2 – Assessing the Global

Marketing Environment—The Global Economy and Technology

“If GM had kept up with technology like the

computer industry has, we would all be driving $25 cars that got 1000 MPG."

Bill Gates

Outline

• Economic Growth

• World Trade

• Characteristics of High Tech Markets

• Globalization of Technology

• Technology & Global Financial Services

• Global Demographics

• The Green Economy

A PESTEL Analysis of the Macro-Global

Environment

Economic Growth and World Trade

domestic growth

• The growth in world trade in from 2007 increased

from 10% to 30% until the 2008 economic crisis,

while world industrial production averaged about 5

percent over the same time frame

durable good purchases are postponed

when income becomes less secure

Largest Exporters and Importers

United States Exports by Region

U.S International Trade in

Goods & Services

Figure 2-2

High-Tech Products Lead World Trade

grown twice as fast that of other

manufactured goods

computers, are manufactured from

components made in several countries

• Provides emerging markets with assembly and

export opportunities

Characteristics of High-Tech Markets

• Fast-moving

• Expensive

• Competitively intense

• Consumer rather than production-oriented

Product developers must anticipate consumer

needs even before consumers are aware of them

Reducing the Risk of High-Tech Product Failure

preferred over longer introduction lead

times that assure sufficient market interest

product launch

consumers most likely to purchase the

product

Hi-Tech Market Entry

than production

Global IT Spending by Financial Services

Firms

Global financial services are becoming more dependent on IT

infrastructures in order to gain competitive advantage.

Figure 2-4

Global Companies & Global Countries

according to their level of globalization

• The Foreign Policy/AT Kearny Globalization Index

rates countries:

 Economic integration

 Personal contact

 Technological connectivity

 Political engagement

• In 2007, Singapore was the most globalized country, United States was number 7

Top 10 Transnational Companies by Foreign

Operations

Transnational Corporations

and Countries

Population Changes:

Aging Populations

Figure 2-6

The Green Economy

• An emerging marketplace that seeks to optimize the synergy among three sets of values: social,

environmental and financial

• This is most commonly referred to as the "triple

bottom line."

• Environmentally sustainable

• Socially just

• Locally rooted

Globalization: Opportunity or Threat?

• Trade liberalization means that the demand for a

country's products is not limited to the home

market, while investment, technology and

know-how move more freely across borders to both

developed and developing countries

• Much of the discontent concerns the fact that the

benefits of globalization have not been spread

equally among peoples and countries

the macro-global environment

and emerging countries

among developed countries

the seventh most globalized country

The green economy offers employment and income