Global Affluenza to Global Distress and Back

Global Affluenza to Global Distress and Back -...

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From Global Influenza to  Global Distress  Consumption International Marketing | MARK 363 November 2010
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Four Drivers of Globalization The End of North Atlantic Hegemony End of Empire and Rise of Asia Demographic Change Global populations (Africa & Islam) changing populations balances, aging and urbanization Ecosystem Pressures Climate change, H2O, food production, extinction Failed States Globalization amplifying & causing failed states
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Historical Context  For the last 150 years, the gap of economic output, the military power, the geo-political power experienced a widening gap between big and large states. The result…divergence has been replaced by convergence. The mechanisms which triggered it…are now a worldwide possession due to commercial export of intellectual properties.
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Current Context  Ample evidence on stark changes in consumer behavior. Fewer trips to retailers Higher levels of HH savings Reduced spending across product categories Increased private label spending Increased planning of meals and shopping Reduced out-of-home activities
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Post Post-Modernity Post WW II consumption models are facing a long-term re-definition. Definition the “self” vis a vis consumption and material life has taken a back seat. Unbearable loans, inflated credit rates, political and corporate scandals have all converged to build a new consumption value proposition.
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Age of Value Convergence 
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Value is the Driver Redefine what constitutes “value” Loyalty and habitual behavior have become increasingly eratic/unpredictable. Thus supporting the Black Swan Theory of business evolution. Affecting all demographics…not merely lower income thrift but higher income economizing.
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Price over Brand 
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Anthropacy  The human age dominates the 21 st century growth industry. Technology is the driver…and is a good idea which can be shared between rich and poor worlds while contributing to broad-based economic progress.
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Will the Age of Thrift Stick? Two questions marketers must answer. 1. Short-term strategies to survive the recession 2. Determining whether prevailing new patterns will have long-term impact post recession.
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Marketing in Time of Hardship  Recessionary marketing cuts historically cause long-term brand stagnation and segmentation losses. Reducing customer service, slashing budgets, reducing R&D may enhance short- term cash consolidation but cause long-term damage to competitive advantage.
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The Irony? It is precisely this short-term profit thinking that got us here in the first place. Financial institutions think in terms of quarterly gains…which tie to bankers bonus structure.
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Implications  1. Build and maintain value especially among brand switching target segments. Trusted brands convey a sense of safety in troubled times. 2.
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This note was uploaded on 01/31/2011 for the course MARK 363 taught by Professor Gerolius during the Spring '10 term at Loyola Chicago.

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Global Affluenza to Global Distress and Back -...

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