Graf International marketing in times of sustainability and digitalization

1. Auflage 2023
ISBN: 978-3-11-077240-1
Verlag: De Gruyter
Format: EPUB
Kopierschutz: Adobe DRM (»Systemvoraussetzungen)

E-Book, Englisch, 321 Seiten

Given today's challenges, companies are confronted with pressing questions: Are marketing and sustainability a contradiction? How can digitalization support marketers beyond digital advertising? These questions must be addressed in an international context since, for most companies, international business is more a reality than just a strategic option as it was just a few decades ago. This book provides insights into the fundamentals of international marketing with a focus on these topics because they are commonplace in today's international marketing. It presents theories and concepts of international marketing in a concise form along with many real-world examples. The book explores how digitalization makes potential connections and advances available to marketing and how marketing can contribute to shaping a more sustainable future. It is a must read for students interested in the topic and managers who are confronted with these challenges.

Autoren/Hrsg.

Graf, Erika

Fachgebiete

• Wirtschaftswissenschaften Betriebswirtschaft Management Internationales Management
• Wirtschaftswissenschaften Betriebswirtschaft Bereichsspezifisches Management Marketing

Leseproben

Chapter 1 Scope and challenges of international marketing
Introduction
This chapter starts with a brief review of the history of globalization and shows how it changed over the centuries. Globalization is then defined from today’s perspective and distinguished from the internationalization of firms. Globalization and sustainability are linked to sustainable international marketing. The opportunities and challenges that international marketers are facing when doing business abroad follow next. Aligning corporate activities with economic, ecological and social goals has become a necessity in international management. Given the economic, political, social, legal and technological differences in each country, companies need to adapt their strategies accordingly – easy to say, hard to achieve. Another major challenge for companies is digitalization as it presents opportunities that can contribute to greater sustainability, but also to innovations, new business models and increased efficiency. However, to be able to take advantage of these opportunities, companies must acquire new skills, develop employees and cultivate rapid adaptability. The key question in international marketing remains: standardize or adapt? While the former offers efficiency advantages, the latter allows the best achievable output to be achieved on a country-specific basis. After reviewing this chapter, you will: Know the meaning of globalization, its dimensions and how it developed over time Be able to distinguish globalization from internationalization Be able to contribute to the debate on globalization Know the concept of sustainability and how it relates to international marketing Understand the criticisms of marketing in general and in particular of international marketing Comprehend the key question in international marketing: standardize or adapt Be able to summarize how digitalization effects international marketing Globalization – meaning and development
Definition and a short history of globalization
Globalization is a term on everyone’s lips, but one’s understanding of it often varies greatly. Cavusgil, Knight and Riesenberger offer a definition that includes the many aspects of globalization: Globalization of markets refers to the gradual integration and growing interdependence of national economies. Declining trade barriers and rapid changes in communications, manufacturing, and transportation technologies are enabling firms to internationalize much more rapidly and easily than ever before. Globalization allows companies to outsource value-chain activities to the most favorable locations worldwide. A value chain is the sequence of value-adding activities the firm performs in the course of developing, producing, marketing, and servicing a product. Firms source raw materials, parts, components, and service inputs from suppliers around the globe. Globalization has also made it easier for companies to sell their offerings worldwide. (Cavusgil, Knight & Riesenberger, 2020, p. 64) Globalization is not a modern phenomenon, although there is no agreement on exactly when it began. Some authors see the beginning of globalization in the Middle Ages, others in modern times. Different aspects are considered from economic, social or environmental points of view. Economic globalization, as the history of trade combined with progressive worldwide networking over great distances, can already be dated to the end of the Stone Age around two millennia before Christ. This is associated with the development of agricultural technology in which new ideas were exchanged through trade-motivated intercultural contacts. At the time of the Roman Empire, there were intensive trade relations as far away as China. Another milestone of globalization is the Hanseatic League, which, due to its geographical limitation, did not yet represent a true globalization of economy and trade. We can speak of the “discovery” of the American continent and the associated opportunities to utilize world-spanning trade routes since the 16th century. Since that time, international trade has grown continuously. As a result of the Great Depression that started at the end of the 1920s and with the establishment of the General Agreement on Tariffs and Trade (GATT) in 1947, the globalization of trade and commerce was anchored in an international treaty with the goal of reducing trade barriers. In 1995 the GATT was replaced by the World Trade Organization (WTO), which also paved the way for associations such as the European Economic Community (EEC), the Organization for Economic Cooperation and Development (OECD) and other organizations that have promoted international economic relations on a global scale. The WTO consists of three pillars: GATT for trade in goods, GATS (General Agreement on Services) for services, and TRIPS (Agreement on Trade-Related Aspects of Intellectual Property Rightst) for intellectual property issues. Since 1980, world trade has grown to an extent never before seen in its history, reaching a global export volume of 17.6 quadrillion (= thousand billion) USD in 2020 (see Fig. 1.1). This is primarily due to falling trade barriers and lower costs of communication and transportation. However, globalization is vulnerable to crises, as we have seen in the past two decades since the start of new millennium. The burst of the dot-com bubble and the financial crisis of 2008 have resulted in deep cuts in the global trade volume (World Economic Forum, 2019). The COVID-19 pandemic and the Russian aggression against Ukraine, with the resulting sanctions against Russia, will also lead to further substantial cuts. Source: UNCTADstat, n.d. Fig. 1.1: Development of global export value 1950–2020 (in billion US dollars). Dimensions of globalization
The development of global trade is not the sole perspective on globalization. In addition to trade and transactions, the International Monetary Fund (IMF) distinguishes three further aspects of globalization: capital and investment movements, migration and movement of people, and the dissemination of knowledge (IMF, 2002). And yet another measure, the KOF Globalization Index, considers not only the economic, but also the social and political dimensions of globalization. Globalization in the economic, social and political fields has been on the rise since the 1970s, receiving a particular boost after the end of the Cold War (Dreher, 2006). Social and cultural globalization can be observed in terms of variables such as tourism flows, migration and international exchange programs for youths and students. The global spread of fast food and fashion chains like McDonald’s and H&M are a hallmark of this cultural transformation. Social media influences the content and form of communication. In television, entertainment shows are being traded internationally. Broadcast formats such as Germany’s Next Topmodel, Big Brother or Who Wants to be a Millionaire? are sold worldwide as licensed products. Internationally available internet streaming services, such as Netflix, are also contributing to cultural globalization. Furthermore, the entertainment industry for music, books and computer games is a mediator of lifestyles and lifeworlds. For young people in particular, the products of the entertainment industry are an important basis for orientation in the formation of taste and style. Political globalization results from the consequences of economic and cultural globalization. The expanding world economy increasingly demands higher, multilateral authorities that regulate economic cooperation between economic entities and states. Climate change and increased environmental pollution do not stop at national borders; no state can solve most environmental problems on its own. The pressure to find common solutions worldwide is increasing. Last but not least, global political cooperation extends to issues of security policy, such as peacekeeping, disarmament and law enforcement. These geopolitical, social and cultural developments are important for international marketers as they build the framework in which businesses are operating. Benefits and drawbacks of globalization
For a long time, the principle of “change through trade” was unreservedly believed in by business, politics and academia. A more integrated and interdependent world economy as a guarantor of peace and stability and as an engine for the global economy led to greater prosperity for all. Reducing barriers to international trade and investment leads to lower prices for goods and services, increases the income...

Über Autor(innen)

Erika Graf has worked in marketing and sales in a large multinational corporation and a medium-sized family business. She is a professor for International Management at the University of Applied Sciences in Frankfurt, Germany.

Erika Graf has worked in marketing and sales in a large multinational corporation and a medium-sized family business. She is a professor for International Management at the University of Applied Sciences in Frankfurt, Germany.