1. Chapter 20
The Future

2. The International Marketing Environment
Conditions of Change
Change is increasing in speed as real-time access to information and knowledge about suppliers, customers, competitors and markets grows.
Change is universal- political, financial,societal, and technological.

3. Planned versus Market Economies
Central European opportunities
Export controls have been reduced.
Demand for consumer products is high.
High demand for foreign direct investment.
Problems to be overcome
Lack knowledge about the rules and practices of market economies and marketing.
Lack of protection from corruption and respect for property rights and contractual agreements.
Outside investment will occur selectively.
Fear of outsiders will slow economic recovery.
Liquidity shortages will continue to impede trade

4. North-South Relationships
Characteristics
The disparities between developed and less developed countries (LDCs) will continue.
There is an increasing potential for political and economic conflict.
Governmental entities will bear the burden of providing developmental capital funds to LDCs.
Relationships between the developed countries and new markets will be greatly influenced by environmental protection issues.
Divergent trends have resulted in three emerging relationship scenarios
Continued international cooperation.
Confrontation.
Isolation.

5. The International Financial Environment
International debt and low commodity prices will slow growth in LDCs.
Developed nations have strong market and security incentives to help developing areas.
The U.S. dollar will continue as the predominant international currency.
The market system of floating currency exchange rates for rather than government actions will determine currency valuations.
Shocks in one financial market will rapidly impact other markets.

6. Population Patterns
The rate of growth will put more emphasis on population stabilization within governmental policies.
Population balance along with age could create manpower shortages that will impact a country’s ability to develop.
The expectation-reality gap will continue to plague LDCs.

7. The Technological Environment
Communications in all forms will
Become increasingly important as information management becomes as important as the information.
New information and data analysis technologies will have major impact on business relationships.
The exponential growth in technology will
Be a volatile area of economic activity.
Create the need for strategic alliances to share the enormous cost of new technology.

8. The Trade Framework Can the WTO resolve new trade challenges?
Multilateral trade negotiations are essential and will grow in importance.
Regional trading blocs will get stronger
New participants will restructure the composition of trade.
Restructuring of existing economic sectors will occur, particularly, for agricultural cash crops and industrial products.

9. Governmental Policy Government management of trade is increasing.
Governments will try to coordinate policies affecting the international marketing environment.
Governments will make domestic policy in light of international trade issues.
Governmental-corporate collaboration will become a part of policy development.

10. The Future of International Marketing Management
International markets
source of high profits
cushion slack in domestic markets
impacted heavily by terrorist attacks of September 11, 2001
Common sense for a new global age as emerged characterized by
vulnerability
outrage
collaboration
politics
connection

11. International Planning and Research
Customer focus will remain the major factor in marketing.
Trade portfolios are being developed to limit dependency and develop markets to balance risk, exposure and a fallback plan.
The divergent needs of foreign customers will create market niches for international firms to exploit.
Marketers will increasingly encounter high demands for social responsibility as they attempt to balance the results of their market activities.
More emphasis will be placed on corporate reputation management.

12. International Product Policy
Product planning for international markets
Will be impacted by concerns for the natural environment.
With the worldwide introduction of products shorten product life cycles may result.
Will deliver more mass customization.
Will cause comparative advantages in production technology to flow to low-cost countries.
Create more strategic alliances for product development, sourcing, and production.
Require customer product bundles to meet mass customization requirements.

13. International Communications
Advances in communications will increase the use and dependence on by firms of real-time communications
Communication networks allow firms to become “virtual,” with no requirements for fixed locations from which to conduct operations.
Data, information,and knowledge sharing be transferred faster and become more concentrated.

14. Distribution and Logistics Strategies
Innovative approaches will shift traditional distribution channels to new globally networked channels.
The internet will continue to supply avenues for alternative approaches to order entry, just-in-time (JIT) inventory, lean manufacturing practices and distribution control systems.
Firm and product security will continue to be a major focus, developing job opportunities along the way.

15. International Pricing
Commodity pricing, forward pricing and price competition will increase with minimal price differences becoming crucial in making international sales.
Government management of trade will influence pricing.
International marketers will continue to attempt to differentiate themselves on a non-price basis.

16. Careers in International Marketing
Careers in international marketing require:
knowledge and expertise
being well versed in specific business functions
language capabilities
understanding of different peoples and cultures
International experience will be crucial for career advancement and executive success.
Graduating from business schools or universities abroad the specialize in international business.

17. Employment Opportunities
Employment with large firms
Specialized knowledge in languages.
Employees firmly grounded in the practice and management of business.
Employment with small- or medium-sized firms
Have a recently developed international outlook.
Newly hired employees get in on the “ground floor.”
Self-employment
Become a consultant or establish a trading firm.
Opportunities for women
May have advantages in the overseas management positions.
Upward trend for women in global management roles .