Welcome to class of Trends in International Marketing by Dr Welcome to class of Trends in International Marketing by Dr. Satyendra Singh Professor, Marketing and International Business University of Winnipeg Canada s.singh@uwinnipeg.ca http://abem.uwinnipeg.ca www.abem.ca/conference
“We are living through a crisis of the international system “We are living through a crisis of the international system.” --Kofi Annan Industrial countries Prosperity Poor countries did not benefit substantially Legitimate deficit – WTO, UN, WHO, … because their decision making is dominated by large industrial nations Others argue developing countries exercise power in complete disproportion to their relative standing in world affairs and in destructive manner.
Micro-Marketing Forecasts… Borrowing Culture Healthy lifestyle Learn to relax The debate between religiosity and secularism Materialism and spiritualism. Income on rise Affordability Luxury products Sports Recreation Tourism
Micro-Marketing Forecasts… No age! 50-year-old is young! High life expectancy A 14-year-old is not a “just a child.” Now, young people mature sooner Narrow generation gap Changing role of women – developing country Women’s influence in purchasing decisions Not only limited to home-related activities.
Micro-Marketing Forecasts Buying experiences rather than products Absolut vodka Relationship between the brand and its consumers. Ethics in branding now important Customers more knowledgeable and demanding Truth in branding
Society and Culture Growing Wealth and Purchasing Power > $5,000 income prosperity consumer behaviour 1 billion new consumers in 10 yrs In emerging markets, consumers’ spending $10 trillion Population of China (1.3 billion) or India (1.1 billion) exceeds the combined population of the 27 EU members, Japan, Russia, and the U.S. (~1.07 billion) Multiculturalism Hispanic population in U.S. = 60% of Chinese consumers in 10 years Family size globally The proportion of 1-2 person in developed countries (e.g., Germany)
Average Size of American Household Source: D. Crispell, “How Small a Household?,” American Demographics, August 1994, p. 59.
Society and Culture Tribal Consumers, Rising Education Global “tribes” of consumers—people who live in different countries and come from different cultures, but who share similar interests and feel a high level of affinity with consumers elsewhere Developed countries need educated professionals from developing countries. Knowledge sectors/economy . 33 million university-educated, twice as many as those in developed ones
Concern Over The Environment Demand for natural resources Demand for oil is by 50% in the 20 years New discoveries or technologies or radical innovations Supply is unlikely to keep up. China and India – Polluters Cities more crowded urbanization continues and populations Land available for agriculture and forestry
Economies and Markets Bottom of the Pyramid (BOPM) Markets 4 billion people low purchasing power two-thirds of the global population Grow by about 50%, to 6 billion, over the next half century or so. BRIC+Mexico+Turkey+South Africa+ Indonesia+ Thailand = Japan+Germany+France+UK+Italy $ by selling to world’s poorest “Business” and “social responsibility” can work together to benefit both companies and the societies these companies serve
Foundations of Consumer Protection 4 basic consumer rights by U.S. President John F. Kennedy in 1963: The right to safety The right to be informed The right to choose The right to be heard Because of changed conditions since then, today we may add two more The right to privacy The right to a clean and healthy environment
Canada and International Marketing: The Future Canada in International Markets Top 50 exporters = one-half of Canadian exports Export concentration few companies. Some of these large exporters are subsidiaries of U.S. corporations who produce in Canada for USA The other 50 percent of Canada’s exports is accounted for by thousands of smaller firms