2007’s international trade in merchandise exceeded US$10.5 billion and world trade in services is estimated at around US$2.4 trillion.
While most of us cannot visualize such huge amounts, it does serve to give some indication of the scale of international trade today.
This global marketplace consists of a population of 6.6 billion people which is expected to reach 10 billion by 2050 according to the latest projection prepared by the Undiluted Nations.
Global wealth is increasing and this is reflected in higher demand. Increasing affluence and commercial dynamism has been nations across Asia. Central and Eastern Europe emerge as high growth economics, increasing affluence and demand simply means that consumers will actively seek choice, with the result that globally competition is intensifying as companies compare to win the battle for disposable income.
Population growth and increased affluence together have helped create a ‘global youth culture’ – teenagers now account for 30 per cent of the population globally.
In many countries, more than half the population is pre-adult, creating one of the world’s biggest single market, the youth market.
Everywhere adolescents project worldwide cultural icons, Nike, Coke, as well as Sega, Sony playstation.
When virtual reality is commonplace, the one world youth culture market will exceed all others as premier global market segment. Parochial, local and ethnic growth products may face difficult times.
Older consumers are also increasingly non-national on their identity, of not their personal identity then the perspective of the consumable fabric of their lives.
They drive international cars, take foreign holidays, watch international programmes on television, use international hardware and software.
On the supply side, multinational and global corporation are increasing in size and embracing more global power.
The top 500 companies in the world now account for 70 percent of world trade and 80 percent of international investment.
Total sales of multinational are now in excess of world trade, which gives them a combined gross product of more than some national economies.
The global marketplace is no longer the summation of a large number of independent country markets but much more multilateral and interdependent, economically, culturally and technically.
Information moves anywhere in the world at the speed of light, the case of transmission being facilitated by the convergence of long distance telecoms, cuts in the cost of electronics processing and the exponential growth in internet excess.
The combination of all these forces has meant that all companies need to develop a marketing orientation which is international in nature and that companies need managers who have the skills to analyze, plan and implement strategies across the globe.
It is for these reason that international marketing has become such a critical are of study for manager and an important component of the marketing syllabus of business faculties in universities.
The Importance of International Marketing
