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Welcome to International Advertising Housekeeping Web site is ready www.jou.ufl.edu/faculty/jvillegas/iad/ Monday Read article on Web site Why companies go abroad?

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Welcome to International Advertising

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  • Web site is ready
    • www.jou.ufl.edu/faculty/jvillegas/iad/
  • Monday
    • Read article on Web site
why companies go abroad
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).
here s how it starts step 1 terms
Here’s 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.
definitions in int l business advertising
Definitions in Int’l Business & Advertising
  • Globalization – What is it?
  • In 1983 an article appeared in the Harvard Business Review that generated controversy.
theodore levitt 1983
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.
rationale for the one market world
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
potential pitfalls
Potential Pitfalls
  • Challenges of different languages:
    • Translations
    • Colloquialisms
  • Challenges of concept development:
    • Different definitions and meanings
why companies go abroad9
Why Companies Go Abroad?
  • Saturated domestic markets.
  • Higher profit margins in foreign markets.
  • Increased foreign competition at home.
  • Trade deficits.
  • Emergence of new markets.
types of marketing strategies
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.
types of marketing continued
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.
types of marketing continued12
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.
domestic or national companies
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.
international companies
International Companies
  • A company that does some business in another country.
  • It must adapt marketing mix to accommodate new markets.
multinational companies
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
global companies
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.
transnational companies
Transnational Companies
  • Uses global resources to serve global customers.
  • Efficiency = global competitiveness.
  • Some functions centralized, others local.
  • Gives customer the illusion of being local.
newer forms of transnationals
Newer Forms of Transnationals
  • Virtual or modular corporation
    • Temporary network of independent companies
    • Modular corporations – trend of the 90’s
    • Modulars focus on core competency and outsource the rest.
framework for thinking about the world



1 st 2 nd and 3 rd world order
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.
  • What’s wrong with this picture?
the north south divide
The North-South Divide
  • Divides world into two parts.
  • Developed world – mainly the North.
  • Developing world – mainly the South.
  • What wrong with this picture?
21 st century model
21st Century Model
  • One macro-structure
  • One market – one world
  • Underscores the Levitt’s concept
  • Globalization of media
  • Spread of capitalism
  • Western imperialism
  • Global insecurity
core perspective of the world
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
core perspective continued
Core Perspective continued
  • Core states tend to be replaced over time with other countries.
  • Technological advances play the most important role in changing status.
international resources
International Resources
  • Centers:
    • International Center
      • http://www.ufic.ufl.edu/
    • Center for Latin American Studies
      • http://www.latam.ufl.edu/
international resources27
International Resources
  • NOTE: Access to UF’s online resources require direct access or the use of a proxy server
    • http://www.uflib.ufl.edu/access.html
e international resources
e-International Resources
  • A great first step is the Business Reference site
    • http://web.uflib.ufl.edu/cm/business/subjects/internat.htm
  • Databases (Numerical info)
    • Country profiles
      • CIA Factbook http://www.odci.gov/cia/publications/factbook/
      • Economist Intelligence Unit (BR)
      • Lexis-Nexis (BR)
e international resources29
e-International Resources
  • Market data
    • Euromonitor (BR)
    • TableBase
    • Strategis - Market Research Reports
  • Company data
    • Dow Jones
    • Thomson Analytics
e international resources30
e-International Resources
  • Articles (In depth info about countries, products and companies)
    • The key is in the keywords
    • Lexis-Nexis
    • Factiva
    • ABI-Inform
international resources31
International Resources
  • Books, publications
    • International business/advertising books
    • IB journals
  • Magazines, TV, etc.