Welcome to International Advertising

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Welcome to International Advertising
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Housekeeping

• Web site is ready
• www.jou.ufl.edu/faculty/jvillegas/iad/
• Monday
• Read article on Web site

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Why companies go abroad?

• ALREADY, the ______ buy more cellphones than
  consumers anywhere else. They buy more film than
  the Japanese. They now buy as many vehicles as
  the Germans (New York Times 01/05).

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Heres how it starts. Step 1 Terms

• Explain various forms of marketing strategies and
  company structures.
• Understand the concept of globalization.
• Answer the question why companies go abroad?
• Introduce models of thinking about the world.

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Definitions in Intl Business Advertising

• Globalization What is it?
• In 1983 an article appeared in the Harvard
  Business Review that generated controversy.

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Theodore Levitt (1983)

• Defined globalization.
• The crystallization of the entire world as a
  single place.
• Ignored regional and national differences.
• Companies must operate as if the world was only
  one market.
• Companies should sell the same product the same
  way everywhere.

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Rationale for the One Market World

• Consumers around the world are motivated by the
  same desires
• Modernity
• Quality
• Value
• New technology and standardized methods of
  production make global marketing programs
  feasible.
• Levitt argues for STANDARDIZATION

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Potential Pitfalls

• Challenges of different languages
• Translations
• Colloquialisms
• Challenges of concept development
• Different definitions and meanings

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Why Companies Go Abroad?

• Saturated domestic markets.
• Higher profit margins in foreign markets.
• Increased foreign competition at home.
• Trade deficits.
• Emergence of new markets.

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Types of Marketing Strategies

• International Marketing
• The extension of the home country strategy and
  plan to the world.
• Multinational Marketing
• Development of a strategy for each country.

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Types of Marketing continued

• Global Marketing
• Integrates both the international and
  multinational approach.
• Objective is to create the greatest value for
  customers and the greatest competitive advantage
  for the company.

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Types of Marketing continued

• Transnational Marketing
• Centralizes some resources at home and others
  abroad.
• Also distributes some resources to local
  operations in different countries.
• This forms extends, adapts and creates a
  marketing mix.

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Domestic or national Companies

• Focuses on serving consumers in the home country.
• Term often associated with home or domestic
  market Ethnocentric.
• Ethnocentric means home-country oriented.
  Tendency to look inward highly nationalistic.

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International Companies

• A company that does some business in another
  country.
• It must adapt marketing mix to accommodate new
  markets.

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Multinational Companies

• When a company decides to respond to market
  differences.
• Creates a multinational strategy.
• A unique strategy for each country.
• Recognizes differences in countries.
• POLYCENTRIC host-country oriented.
• An outward versus an inward perspective

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Global Companies

• Focus on building cost advantages through
  centralized global-scale operations.
• Strategic assets, resources, responsibilities and
  decisions are centralized.
• Mentality is to treat operations in other
  countries or regions as a delivery pipeline.

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Transnational Companies

• Uses global resources to serve global customers.
• Efficiency global competitiveness.
• Some functions centralized, others local.
• Gives customer the illusion of being local.

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Newer Forms of Transnationals

• Virtual or modular corporation
• Temporary network of independent companies
• Modular corporations trend of the 90s
• Modulars focus on core competency and outsource
  the rest.

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FRAMEWORK FOR THINKING ABOUT THE WORLD

• FOUR MODELS OF WORLD ECONOMY AND WORLD ORDER

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1st, 2nd and 3rd World Order

• 1st US
• 2nd Russian
• 3rd everyone else
• Product of the Cold War.
• Two superpowers tried to dominate the globe.
• Whats wrong with this picture?

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The North-South Divide

• Divides world into two parts.
• Developed world mainly the North.
• Developing world mainly the South.
• What wrong with this picture?

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21st Century Model

• One macro-structure
• One market one world
• Underscores the Levitts concept
• Globalization of media
• Spread of capitalism
• Western imperialism
• Global insecurity

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Core Perspective of the World

• Immanuel Wallerstein (1974) describes the history
  of the capitalist world economy from Middle Ages
  to present.
• He differentiates the world economy into 3 zones
  
• 1) Core (states) high income areas
• 2) Semi-periphery - middle/low income
• 3) Periphery low income areas

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Core Perspective continued

• A FLUID MODEL THAT CAPTURES HISTORY.
• Core states tend to be replaced over time with
  other countries.
• Technological advances play the most important
  role in changing status.

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International Resources at UF
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International Resources

• Centers
• International Center
• http//www.ufic.ufl.edu/
• Center for Latin American Studies
• http//www.latam.ufl.edu/

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International Resources

• NOTE Access to UFs online resources require
  direct access or the use of a proxy server
• http//www.uflib.ufl.edu/access.html

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e-International Resources

• A great first step is the Business Reference site
• http//web.uflib.ufl.edu/cm/business/subjects/inte
  rnat.htm
• Databases (Numerical info)
• Country profiles
• CIA Factbook http//www.odci.gov/cia/publications/
  factbook/
• Economist Intelligence Unit (BR)
• Lexis-Nexis (BR)

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e-International Resources

• Market data
• Euromonitor (BR)
• TableBase
• Strategis - Market Research Reports
• Company data
• Dow Jones
• Thomson Analytics

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e-International Resources

• Articles (In depth info about countries, products
  and companies)
• The key is in the keywords
• Lexis-Nexis
• Factiva
• ABI-Inform

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International Resources

• Books, publications
• International business/advertising books
• IB journals
• Magazines, TV, etc.