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Lecture Global marketing: Contemporary theory, practice, and cases – Chapter 2

Chapter 2 - Assessing the global marketing environment - The global economy and technology. After reading the material in this chapter, you should be able to: PESTEL model, the global economy, high-tech products, global countries & global companies. | 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 McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. Outline PESTEL Model The Global Economy Economic Growth World Trade High-Tech Products Characteristics of High Tech Markets Globalization of Technology Technology & Global Financial Services Global Countries & Global Companies Global Demographics The Green Economy A PESTEL Analysis of the Macro-Global Environment Economic Growth and World Trade Growth in global trade has exceeded 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. World trade is manufacturing-intensive and durable good purchases are postponed when income becomes less secure Largest Exporters and Importers 2-5 United States Exports by Region U.S. International Trade in Goods & Services Figure 2-2 High-Tech Products Lead World Trade The high-tech manufacturing sector has grown twice as fast that of other manufactured goods Many high-tech products, such as computers, are manufactured from components made in several countries Provides emerging markets with assembly and export opportunities Characteristics of High-Tech Markets Highly dynamic Complex Risky As a result, markets mature rapidly, and are 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 Determine if "first-mover" advantage is preferred over longer introduction lead times that assure sufficient market interest Rethink the value of market research before product launch Target the market carefully, identifying consumers most . | 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 McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. Outline PESTEL Model The Global Economy Economic Growth World Trade High-Tech Products Characteristics of High Tech Markets Globalization of Technology Technology & Global Financial Services Global Countries & Global Companies Global Demographics The Green Economy A PESTEL Analysis of the Macro-Global Environment Economic Growth and World Trade Growth in global trade has exceeded 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. World trade is manufacturing-intensive and durable good purchases are postponed when income becomes less .