Advertising in the global change

The power of global economic will shape up business structure in the

local business level.

The impact is not only in the economic aspect but also in the social and cultural aspect

Impulse of Business Global Development

Political and geographical has changed. New emerging countries Single market

Global companies realized the value of brand.

Media with global coverage. From Specialist to super-specialist.

Deal with global business

Theodore Levitt (1983) Corporations doing business abroad

to operate with resolute constancy—to sell the “same thing, in the same way, everywhere”

“The globalisation of markets is at hand. With that, the multinational commercial world nears its end, and so does the multinational corporation.

The global corporation operates with resolute constancy – at low relative cost – as if the entire world were a single entity; it sells the same things in the same way everywhere.

Theodore Levitt 1983 in the Harvard Business Review wrote:

Duscussion time

Diskusikan bagaimana impact globalisasi ekonomi untuk konteks Indonesia.

Apa yang harus dilakukan untuk menghadapi situasi tersebut.

Global impact

It could be said that advertising and marketing can be a nation’s unofficial diplomat overseas, representing a country’s way of life more dramatically and realistically than official state department or foreign office ambassadors.

The tremendous international impact of marketing and advertising in the world, in fact has led to the coining of the word “ad-plomacy”.

40Th International Advertising Association Congress

“With each turn, there is change,With each change there is a new perspective, a new challenge, a new solution”

“Companies must learn to operate as if the world were one large market

Theodore Levitt (1983)

Value of the Brand

Li Ning Experience

Li Ning case

Pelajari kasus Li Ning memasuki persaingan global brand.

Bagaimana cara Li Ning membangun merek Apa saja yang mempengaruhi perkebangan

Li Ning sebagai global brand.

The essence is :

Dominasi

Phenomenon in the global business trend

Domination of Economic and Industry

‘Advertising and marketing techniques are by far the most successful Americanexport’—and national agencies which fall under the control of the Americannetworks breathe fresh vigour into this image.

U.S. Weakly: American Brands Take Hits

Coca-Cola, McDonald's, Colgate-Palmolive and Kodak are among blue-chip U.S. brands taking a beating when it comes to how liked they are around the world, according to a study by GfK Roper Consulting, in part because of their country of origin.

U.S. Weakly: American Brands Take Hits

American companies posted four of the five biggest drops in likability. Coca-Cola tumbled the furthest, nearly 40%.

The biggest gainers were all foreign: Germany's BMW, Mercedes and Volkswagen, along with Japan's Sony and Honda. (Sony and BMW both jumped more than 30%.)

Assignment

Find some example cases of boycot or protesting to brand or business realted with country of origin.

New emerging alliance try to fight the domination

China and India ( Dragon and Elephant) Coopetition between China and India make

: ‘Chindian’ Bollywood as soft power Soft, Hard and ‘Smart’ power Branding nations and cultures: Yoga,

Confucius and spiritualism

Discussion Time 30 minutes

Discuss about domination in the business/economic/marketing communication /social and cultural (get for facts and phenomenon)

For us how we face and handle that challenge.

ASIA export to:

Asia export to: 1983 1990

USAEC

12960

195129

Total 189 324

JapanOther ASIA

34108

76250

Total 142 326

Shifting Export

Asia export to:USA

1990 2000

Thailand 2 5

Malaysia 2 5

Philippines 2 4

Singapore 5 11

Shifting Export

Asia export to:USA

1990 2000

Indonesia 3 3

Economic Export = Culture Export

Global language, concept and definition.

Economic Export = Culture Export

Global language, concept and definition. The meaning of

international, global, multinational?

Brand concept. Definition of

technology.

Global Over the past few decades, we have witnessed

the emergence of a truly “global village”. With digitization and electronic

communication, it becomes easier for new companies to spread the word about their products around the globe.

The recent convergence of global communications and global trade has created a growing set of people worldwide who are beginning to identify with the concept of “global citizen.”

Impact of global trade system

Wallerstein: the Modern World System:1974.Mengemukakan 3 zona : The core states atau core areas (high-

income areas). G8 Countries The peripheral areas (low income). Semi periphery (middle/low income).

6 Influencing factors which influence international trade.

WInternational monetary system

orld trade system. World peace National economic

growth. Communication Global enterprise

How is Indonesia position?

In the international trade competition. How is the prospect of Indonesian

business? Find also example how Indonesian

product or brand which have competed the international market.