The Future of Global Marketing

THE FUTURE OF GLOBAL MARKETING

Six Major Changes

Six Major Changes in Global Marketing 1. World growth. 2. Th Thee wor world ld ec econ onom omy y dom domin inat ates es.. 3. En End d of the the so-cal so-calle led d trad tradee-cyc cycle le de deci cisi sion on rul rule. e. 4. Free Free marke arkets ts ru rule le th thee wor world ld.. 5. Acce Accele lera rati ting ng growt growth h of glo globa ball mark market ets. s. 6. The The ris risee of of the the Inte Intern rnet et and and inf inform ormati ation on technology.



poo r countries of the world are World growth g rowth : Many of the poor getting richer faster than the rich countries of the world, which are also getting g etting richer. Most of the world is in a stage of economic growth. Asia growing at annual annua l rates of 7 percent perce nt or higher. China and India, which have begun to develop a middle class. The population within the developed economies of the world is continuing to grow will be a major market for goods good s and services across a broad spectrum of consumer products.

 The world economy dominates: The macroeconomics of the nation-state no longer control econ econom omic ic outc outcom omes es in coun countr trie iess Large superpower countries such as the United States can no longe ongerr dictate to poor oorer count untries how how they shoul hould d beha behav ve. The ³Asian Flu´ that began in 1997 and continued into 1998 which infected Southeast Asia.

need for economic and political reform at the national, regi region onal al,, and and glob global al leve levels ls..

 End

of the so-called trade-cycle t rade-cycle decision rule:

A prod produ uct mature ures, its produ oducti ction locati ation would uld shif hift to lower  inco income me coun countr trie ies, s, has has been been clar clarif ifie ied. d. Changes in global competition are bringing companies into more direct competition with economic rivals in other parts of  the the worl world. d. Companies in the same industries in different countries and regions compete ferociously with each other in manufactured good goods, s, agri agricu cult ltur ural al prod produc ucts ts,, natu natura rall reso resour urce ces, s, and and serv servic ices es..

 Free

The

markets rule the world: 75-year

contest

between

capitalism

and

com communis unism m is over over.. Markets are in control of the allocation of resources all over the world with the exception of the two autocratic national anachronisms, Cuba and North Korea.

 Accelerating

growth of global markets:

The engine behind this accelerating growth is the high rate of  growth in both the highhigh- and low-income low-income countries. countries. The high- income income county growth growth leadership leadership has shifted from from Japan to the United United States. Low- and lower-middl lower-middle-incom e-incomee country growth growth leadership leadership has been concen-trated concen-trated in Southeast Asia and¶ southern Asia with China as a unique. The driving forces of this growth are technology, technology, deregulation, global integration, and the triumph of marketing.

 The

rise of the Internet and information technology: The rapidly growing diffusion of Internet access combined

with the rapidly rapidly ex-panding ex-panding bandwidth bandwidth and capacity capacity of the global Internet itself will playa major role in supporting the growth of global markets and global g lobal marketing. Amazon.com can reach customers in Taiwan Taiwan and Tokyo Tokyo just as easily as it can reach customers in Boston .

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