GLOBAL MARKETING
ENVIRONMENT
TWO FACTS
• GLOBAL ENVIRONMENT IS VERY COMPLEX
• DRASTIC CHANGES PREVAIL
ECONOMIC ENVIRONMENT
CONTEMPORARY GLOBAL ECONOMY
• SLOW GROWTH ECONOMIES:
USA,EUROPE,JAPAN
• FAST GROWTH
ECONOMIES:CHINA,INDIA,RUSSIA
• REASONS:LOW HOUSEHOLD SAVINGS,LARGE
DEBTS.
GROWTH OF DIFFERENT COUNTRIES
• RUSSIA:
• GROWTH:6.5%
• EFFECTS:LIVING STANDARDS GOT
IMPROVED,STOCK MARKET IMPROVED,DEBT
IS BEING PAYED.
CHINA AND INDIA:
• GROWTH:7%(IMF)
• BY 2015, GLOBAL ECONOMY-BIPOLAR(CHINA,USA)
• BY 2035,GLOBAL ECONOMY –
TRIPOLAR(CHINA,INDIA,USA)
• BY 2050,TOP 8 ECONOMIES-
(US,CHINA,INDIA,JAPAN,BRITAIN,FRANCE,
GERMANY,SOUTH KOREA)
• BASED ON PPP(2004-2005)
TOP 4 COUNTRIES:
US,
CHINA,
JAPAN,
INDIA
BRIC-DRIVER OF WORLD ECONOMY
• BRAZIL,RUSSIA,INDIA,CHINA
• ADVANTAGES:LARGE POPULATION,RISING
PURCHASING POWER,HIGH GROWTH OF
ECONOMY
MAJOR REASON: LIBERALISATION-
DEREGULATION AND LIBERALISING THEIR
ECONOMIES
GLOBAL FINANCIAL CRISIS
• jargons:financial tsunami,global
meltdown,lehman bomb,stockmarket
crash,bail out melas
EVENTS
• LEHMAN BROTHERS,MERILL LYNCH collapsed
• MERILL was sold to bank of america
• AIG went [Link] government went for
$85 billion
• STOCK MARKETS crashed
• STEPS:
Central Banks deposited massive funds to
increase the liquidity
SLOWDOWN IN GLOBAL ECONOMY
• Global Growth decelerated to
3.8% in 2009
3% in 2008
China 12% in 2007 to 9.25% in 2009
India 9% in 2007 to 7% in 2009
ADVERSE IMPACT ON EMPLOYMENT FRONT
• According to ILO-20 million jobs to be lost in
2008 and 2009
• Question is how long it will take to recover
• It depends on effectiveness in implementing
damage control measures.
Trade Environment Post WTO
• Protectionism for domestic market became
difficult
• Some policies have created inequity in the
market for the developing countries.
MULTINATIONAL MARKET GROUPS
EU-European Union
27 European Nations
Market is larger than markets of US and Japan
NAFTA
North American Free Trade Agreement
Member nations:US,Canada,Mexico
• ASEAN:
• Association of South East Asian Nations
Singapore,Malaysia,Philippines,Thailand,South
Korea,Indonesia
Consumer Environment
Global Demographics
• US- couples with double income growing
• China and India- one-third of planet’s population
2030-India’s population would have crossed over
China’s population
• Age mix of population-India(favourable for
economic growth)
Geographic shifts/Immigration of populations
• Europe,US,Canada,Australia and UAE
• Sources-China,India,Mexico
• After II world war-youth determined,but
coming years- middle-aged determined
Spread of consumer democracy in all markets
• Factors
-technology
-regulated markets
-blossoming of global markets