Lec 16- Understanding and Reaching Global Consumers and Markets-1

Summary

This video script delves into the dynamics of global marketing, highlighting four major trends shaping world trade: the decline of economic protectionism, the rise of economic integration and free trade, intense global competition among companies, and the emergence of a networked global marketplace. It discusses the role of the WTO, trade agreements like EU and NAFTA, and the strategies of international, multinational, and transnational firms. The script also touches on the concept of global consumers and the impact of ICT on facilitating global trade.

Takeaways

• 🌐 The script discusses the major trends shaping global marketing, including the decline of economic protectionism, economic integration, global competition, and the emergence of a networked global marketplace.
• 📉 Economic protectionism is being reduced by countries to protect domestic industries, preserve jobs, maintain national security, and encourage domestic industry development.
• 🔄 The rise of economic integration and free trade is facilitated by the decrease in protectionism, leading to more open markets and international cooperation.
• 🏦 The World Trade Organization (WTO) was established to govern trade between member countries and resolve trade disputes, promoting a more integrated global economy.
• 🇪🇺 The European Union (EU) and the North American Free Trade Agreement (NAFTA) are examples of regional trade groups that have removed barriers to trade, benefiting from a larger market and shared currency in the EU's case.
• 🌍 Global competition is characterized by companies marketing their products and services worldwide, competing for global consumers across various industries.
• 🏢 There are three types of global companies: international firms that extend their domestic marketing strategies abroad, multinational firms that adapt their strategies to local markets, and transnational firms that emphasize global similarities.
• 🌟 Global brands are marketed under the same name in multiple countries with consistent marketing programs, leveraging economies of scale and cultural similarities.
• 👥 Global consumers are groups with similar needs or preferences for products and services, regardless of their geographic location, including the global middle class, youth market, and elite segments.
• 💻 The use of Information and Communication Technology (ICT) has enabled a networked global marketplace, facilitating the exchange of goods, services, and information across borders at a low cost.
• 🌐 The script concludes by emphasizing the impact of these trends on the global market landscape, highlighting the interconnectedness and complexity of modern marketing.

Q & A

What are the two types of buyers mentioned in the script?

The script mentions two types of buyers: individual and organization.

What is the main focus of the module on Global consumers and markets?

The module focuses on identifying the major trends that have influenced world trade and global marketing, and understanding the complex and dynamic global marketing environment.

What are the four major trends affecting world trade and global marketing?

The four major trends are the decline of economic protectionism, the rise of economic integration and free trade among nations, global competition among companies for global consumers, and the emergence of a networked global market space.

What is economic protectionism and how is it typically implemented?

Economic protectionism is the practice of shielding one or more industries within a country's economy from foreign competition, usually through tariffs and quotas.

Why do governments provide economic protections to certain industries?

Governments provide economic protections to preserve jobs, protect a nation's political security, discourage economic dependence on other countries, and encourage the development of domestic industries.

How do tariffs affect world trade and consumer prices?

Tariffs raise the price of imported products, giving a price advantage to domestic products, which can lead to decreased world trade and higher consumer prices.

What is the role of the World Trade Organization (WTO) in global trade?

The WTO sets rules governing trade between its member countries, resolves trade disputes through panels of trade experts, and issues binding decisions to address a broad array of world trade issues.

What are the two examples of transnational trade groups mentioned in the script?

The two examples mentioned are the European Union (EU) and the North American Free Trade Agreement (NAFTA).

How does the adoption of a common currency like the Euro benefit electronic commerce in the EU?

The adoption of the Euro eliminates the need to continually monitor currency exchange rates, simplifying electronic commerce by allowing for uniform pricing and transactions across EU countries.

What is the significance of global competition among companies for global consumers?

Global competition broadens the competitive landscape for marketers, driving companies to innovate and compete for a share of the global market, which includes diverse consumer groups with similar needs or preferences.

What are the three types of global companies and how do they differ in their approach to global markets?

The three types are international firms, multinational firms, and transnational firms. International firms extend their home country marketing strategy to other countries. Multinational firms treat each country as a unique market with different strategies. Transnational firms view the world as one market, emphasizing cultural similarities and universal consumer needs, and practice global marketing strategies.

How does the emergence of a networked global market space impact world trade?

The networked global market space, facilitated by ICT, enables the exchange of goods, services, and information across borders at any time and at a low cost, promoting world trade by providing unprecedented access to global consumers.