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International Marketing
Philip R. Cateora, Mary C. Gilly, and John L. Graham
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3Introduction To understand a societys actions and its points
of view, you need to appreciate: The influence of historical events The geographical uniqueness to which a culture
has had to adapt Culture can be defined as society's accepted basis
for responding to external and internal events To interpret a cultures behavior and attitudes, a
marketer must have some idea of a countryshistory and geography
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3History Perspectivein Global Business
History helps define a nations mission How it perceives its neighbors How it perceives itself
Its place in the world Insights into history are important for
understanding current attitudes It is necessary to study culture as it is now as
well as to understand culture as it was A countrys history
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3Geography and GlobalMarkets
Geography an element of the uncontrollableenvironment that confronts every marketer
Affects a societys culture and economy
Physical makeup limits a nations ability to supplyits peoples needs
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3Geography, Natureand Economic Growth
As countries prosper, natural barriers areovercome
Environmental issues Disruption of ecosystems Relocation of people Inadequate hazardous waste management
Industrial pollution
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3Social Responsibilityand Environmental Management
Environmental protection is not an optional extra Pollution is on the verge of getting completely out of
control China has 16 of the worlds 20 most polluted cities Critical issue: the disposal of hazardous waste Sustainable development
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3Demographic Factors: Dynamics ofGlobal Population Trends
Global population trends determine todays demandfor goods
Rural/urban population shifts Rates of growth Age levels Population control
Changes in population will profoundly affect future
demand The most important deterrent to population controlis cultural attitudes about the importance of largefamilies
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3ControllingPopulation Growth
Procreation is one of the most culturallysensitive uncontrollable factors
Perhaps the most important deterrent topopulation control is cultural attitudes about theimportance of large families
Family planning and all that it entails is by farthe most universal means governments use to
control birthrates, but some economists believethat a decline in the fertility rate is a function ofeconomic prosperity and will come only witheconomic development
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3Rural/Urban Migration
Result of a desire for greater access to: Sources of education Health care
Improved job opportunities
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3Top 10 Mega Cities by 2015City Country Population (millions)
1. Tokyo Japan 26.4 2. Mumbai India 26.1 3. Lagos Nigeria 23.2
4. Dhaka Bangladesh 21.1 5. Sao Paulo Brazil 20.4 6. Karachi Pakistan 19.2 7. Mexico City Mexico 19.2 8. New York USA 17.4 9. Jakarta Indonesia 17.3 10. Calcutta India 17.3
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3Population Decline and Aging
Population growth in many countries hasdropped below the rate necessary to maintainpresent levels
A nation needs a fertility rate of about 2.1children per woman Not one major country has sufficient internal
population growth to maintain itself
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3Top 10 Countries with the oldestpopulation (over 65 years)
1. Monaco 6. Sweden 2. Japan 7. Spain 3. Germany 8. Austria 4. Italy 9. Bulgaria 5. Greece 10. Estonia
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3Social/Demographic factors
At the beginning of 2012, the size of the worldpopulation surpassed the sevenbillion milestone and the population aged
below 30 accounted for more than half of theworld's population. The size of this young population continues to
grow at a robust pace, particularly indeveloping economies where anunprecedented number of children are movinginto adolescence.
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Emerging and developing economies,particularly in the Middle East and Africa, havea younger population than developedeconomies .
At the beginning of 2012, 53.1% of thepopulation in emerging and developingeconomies was aged below 30 compared to35.6% in developed economies;
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In 2012, India and China had the youngestpopulation in terms of size with the number ofpeople aged below 30 at 704 million and 497million respectively.
According to the United Nations (UN), India'stotal population is forecast to overtake China'sby 2025 despite falling fertility from 4.7children born per female in 1980 to 2.6 in2011;
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Countries in sub-Saharan Africa had theyoungest proportion of population in theworld with over 70% of the region'spopulation aged below 30.
In terms of median age (middle value of agedistribution), Niger had the youngestpopulation in 2011 at 15.4 years, followed byUganda (15.7 years) and Mali (16.2 years);
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The young population in many emerging anddeveloping economies will benefit from ademographic dividend - a rise in the rate ofeconomic growth due to a rising share ofworking age people in a population.
In 2012, 89.7% of the global population agedbelow 30 lived in emerging and developingeconomies :
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3Opportunity for a demographicdividend (Summary)
Population trends over the next few decadeswill largely be governed by decisions made bythe 3.5 billion young people aged below 30 in2012.
This is the largest generation to enteradolescence, and their decisions regardingsize and birth spacing of families will shapepopulation trends and consumer trends overcoming decades;
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3Summary
Declining birth rates and marriages aremajor factors in shrinking the size of
households; People marrying and having children
later in life also contributes to the
growing number of single-personhouseholds and shared households ofunrelated occupants.
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Household behaviours are also shifting.Besides smaller households, there has beenan increase in non-traditional homes, moreapartment dwellers, and more consumers arerenting vs. buying.
Purchasing habits also vary by household andmarketers will be able to utilize our newinformation to better target the consumersthey are trying to reach
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3Group Activity
* Join with your chosen group ( 6 members
each group);* Search and discuss the country of origin of
your chosen company based on the
international environments we just
discussed ( history, geography and
demographic factors related to thecompanys operation)
* Report your findings in the classRoy Philip 22