Курсовая работа: Advertising
Курсовая работа: Advertising
ADVERTISING
CONTENTS
Introduction
CHAPTER 1
1. Local Advertising
1.1 Types of Local Advertising
1.2 Objectives of Local Advertising
1.3 Planning the Advertising Effort
1.4 Creating the Local Advertising
1.5 Seeking Creating Assistance
CHAPTER 2
Public Relations, Corporate
Advertising, and Noncommercial
Advertising
1. The Role of Public Relations
2. Corporate Advertising
2.1 Public Relations Advertising
2.2 Corporate/Institutional Advertising
2.3 Corporate Identity Advertising
2.4 Recruitment Advertising
3. Noncommercial Advertising
3.1 Examples of Noncommercial
Advertising
3.2 Types of Noncommercial Advertising
3.3 Advertising Council
CHAPTER 3
International Advertising
1. Growth and Status of International
Advertising
1.1 Managing International Advertising
1.2 Creative Strategies in
International Advertising
Bibliography
Finally
INTRODUCTION
Advertising
can be used for a variety of special purposes. Local businesses advertise
within a particular geographic area rather than nationwide, corporations
sometimes advertise to enhance their reputations rather than to sell products,
and international businesses advertise around the world. This course paper is a
thorough coverage of these special types of advertising. The prevalence of
advertising underscores its many advantages. Of the various forms of promotion,
it is the best for reaching mass audiences quickly at a low person cost. It is
also the form of promotion over which the organizations has the greatest
control. In an advertisement, you can say what ever you want, as long as you
stay within the boundaries of the law and conform to the moral and ethical
standards of the advertising medium and trade associations. You can promote
goods, services, and ideas, using a full range of creative and generating sales
leads. In addition,
it can rekindle interest in a product
whose sales have grown sluggish,
as illustrated by the remarkable
success of Isuzu's memorable
"liar" commercials. While sales
of other Japanese cars and trucks
were growing by only percent,
Isuzu's sales jumped 21 ercent
within a few months after "Joe suzu"
started hawking the cars on TV with subtitles announcing that he was stretching
the facts.
The
object of our investigation is special types of advertising.
The
aim of investigation is to tell about special types of advertising.
The
main tasks of our course paper is to learn the special types of advertising.
The
theoretical value of the investigation are different examples on different
firms by the theoretical explanation.
The
practical value of the investigation is to learn how different kinds of firms
do their advertising. The novelty of investigation is to show what modern
technologies of advertising the population has achied.
CHAPTER 1. "LOCAL ADVERTISING"
1. LOCAL ADVERTISING
As opposed to regional
or national advertising, refers to advertising by businesses within a
particular city or county to customers within the same geographic area. In
1990, approximately 44 percent of all dollars spent on advertising were for
local advertising.
Quite often, local
advertising is referred to as retail advertising because it is commonly
performed by retail stores. However, retail advertising is not necessarily
local - it can be regional or national as well, as the volume of commercials
run by national retail firms such as sears and J.C.Penney. Moreover, many
businesses not usually thought of as retail stores use local advertising - real
estate brokers, banks, movie theaters, auto mechanics, and TV stations,
restaurants, museums, and even funeral homes. Local businesses of all types
often use public service or issue advertising.
Local
advertisers fit into three categories:
*
Dealerships or local franchises or regional or national companies that
specialize in one main product or product line ( such as Toyota, McDonalds, or
H&R Block).
*
Stores that sell a variety of branded merchandise, usually on a nonexclusive
basis ( such as department stores ).
*
Specialty businesses and services ( such as music stores, shoe repairshops,
florists, hair salons, travel agencies ).
Businesses
in each of these categories have different advertising goes and approaches.
Local advertising is very important because most sales are made or lost
locally. A national auto manufacturer may spend millions advertising new cars,
but its nationwide network of local auto dealers spend just as much or more on
a combined basis to bring customers into their showrooms to buy the cars. In
fact, if the dealers don't make a strong effort on the locallevel, the effort
of national advertisers may be wasted. So when it comes to consummating the
sale, local advertising is where the actions is. The basic principles used by national
advertisers are also applicable to local advertising, but local advertisers
have special problems that stem from the simple, practical realities of
marketing in a local area.
Local
and national advertisers differ in basic objectives and strategies, perceived
needs of the marketplace, amount of money available to spend on advertising,
greater emphasis by local advertisers, on newspaper advertising, use of price
as a buying inducement, and the use of specialized help in preparing
advertisements.
1.1 TYPES OF LOCAL ADVERTISING
The
two major types of local advertising are produce and institutional. As its name
implies product advertising is designed to sell a specific product or service
and to get immediate action institutional advertising, on the other hand,
attempts to obtain favorable attention for the business as a whole not for a
specific product or service the store or business sells. The effects of
institutional advertising are intended to be long term rather than short rang.
1.2 OBJECTIVES OF LOCAL ADVERTISING
The
objectives of local advertising differ from the objectives of national
advertising in both emphasis and time. National manufacturers tend to emphasize
long-term objectives of awareness, image, and credibility. On the local, retail
level, the advertiser's needs tend to be more immediate, as shown in the
checklist of Local Advertising Objectives. The emphasis is on keeping the cash
register ringing - increasing traffic, turning over inventory, and bringing in
new customers among other things. As a result on the local level, there are
constant promotions, sales and clearances, all designed to create immediate
activity. The trade-off, of course, is that the day after the promotions or
sale the traffic may drop. So to increase traffic again, the merchant may plan
another sale or another promotion. Then another and another. This can result in
a cycle of sporadic bursts of activity followed by inactivity, sharp peaks and
valleys in sales, and the image of a business that should be visited only during
a sale. Long-term and short-term objectives work against each other when one is
sought at the expense of the other. Successful local advertisers must there
fore think of long-term objectives first and then develop short-term goals to
help achieve their long-term objectives. This usually increases the emphasis on
institutional and regular price-line advertising, improves customer service,
and reduces the reliance on sales and clearances for creating traffic.
1.3 PLANNING THE ADVERTISING EFFORT
The
key to success in any advertising program, local or national, is adequate
planning. Planning is not a one-time occurrence, however, but a continuous
process of research evaluation, decision, execution, and review. On the local
level, more advertising dollars are wasted because of inadequate planning than
for any other reason. The success of Rebio's was due to the fact that Ralf
Rubio made planning a continuous, flexible process that allowed for change,
improvement, new facts, and new ideas. Several steps are involved in planning
the local advertising effort: analyzing the local market and the competition,
conducting adequate research, determining objectives and strategy, establishing
a realistic budget, and planning media strategy. However the small advertiser will
often profit from a bottom-up planning approach. Rubio's success, for example,
can be attributed to his starting with a tactic- the fish taco- and then
building a complete strategy around it, from the bottom up.
1.4 CREATING THE LOCAL ADVERTISING
One
of the most competitive businesses in any local market is the grocery business.
Characterized by high overhead, low profit margins, heavy discounting, constant
promotion, and miser doses of advertising, food retailing is a difficult and
highly competitive business at best. The Tom Thumb Page grocery stores in
Dallas had an additional problem. They had elected to avoid price competition
whenever possible and to compete instead on the basis of quality and service.
This policy made it potentially difficult to attract new customers and create
store traffic, because grocery customers tend to be very price-oriented.
The
Tom Thumb Chain had been doing " maintenance advertising " in routine
food-day newspaper sections for about four years. When they hired a new Charles
Cullum explained their situation and their objectives. They asked the agency to
develop a campaign that would show that Tom Thumb was, in fact, very
competitive in giving top value even though the prices might be slightly
higher. Barbara Harwell and Chuck Beau, the agency's creative directors,
responded by developing a local institutional compaign that made grocery
advertising history. They suggested opening the campaign with a television
promotion for Thanksgiving turkeys. They convinced the Cullums and Tom
Hailstone, the Chain's president, that to present a truly quality image they
would have to create an absolutely outstanding commercial in terms of
production quality. Furthermore, to communicate that Tom Thumb's policies truly
warranted higher prices, they pervaded the clients to make a bold, risky
statement that would impress the viewing public. Hairston and the Cullums
agreed two weeks before Thanksgiving, the campaign began.
The
Commercial Opened with a tight close-up of a live turkey. As the off-camera
announcer spoke, the camera pulled slowly back, and the turkey rested to the
copy with an occasional" gobble ". The announcer said: At Tom Thumb
we stand behind everything we sell... And that's a promise. It's always been
that way. Even when we started, Mr. Cullum said, "We want our customers to
be happy with every thing they buy in this store. If a woman buys a turkey from
us and comes back the day after Thanksgiving with a bag of pones and says she
didn't like it we'll give her money back or give her another turkey." The
moment he said that, the turkey reacted with a big " gobble " and ran
off-camera.
The
commercial closed on the company lag with the announcer saying, "That's
the way we do business at Tom Thumb... we stand behind everything we sell, and
that's a promise." The company merchandised the campaign by printing the
slogan " We stand behind everything we sell... and that's a promise".
On grocery sacks, on red lapel buttons for employees, and on outdoor
billboards. The audio portions of the commercials were aired as radio spots.
Most important employee-orientation meetings were held to explain the concepts
to the company's personal and to make absolutely sure that any customers
returning merchandise received a friendly, cordial smile from the employee
handling the transaction. The reaction to the campaign was astounding. First,
it became the topic of local conversation. Then people began to wonder how many
turkeys' people began to talk about the campaign and showed the commercial in
their newscasts. Finally, the top disk jockey in Dallas sponsored a contest
inviting listeners to guess how many turkeys would be returned to Tom Thumb.
The day after Thanksgiving, the local TV film crews waited at the stores to
count and interview people carrying in bags of bones. One customer said she
returned a turkey and got her money back with no questions asked. Another said
she was given her money immediately but that she then gave the money back. She
had just wanted to test them to see whether they were telling the truth.
The
final score was 30.000 turkeys sold and only 18 returned - a fantastic
marketing, advertising, and publicity success. Since then, the store has been
reported in numerous grocery and advertising trade journals, and Tom Thumb Page
successfully continued the " we stand behind everything we sell "
advertising campaign theme.
This
" talking turkey " example shows that creativity in developing an ad
campaign is just as important at the local level as it is on the national
level, Local advertisers often fail to realize that their print and broadcast
messages the budgetary constraints of local businesses, creativity becomes even
more important in grabbing the consumer's attention. The final section of this
chapter addresses elements that go into creating local ads, and the kinds of
creative assistance available to local advertisers.
1.5 SEEKING CREATIVE ASSISTANCE
Local
businesses have a number of sources they can turn to for creative help,
including advertising agencies, the local media, free-lancers and consultants,
creative boutiques, syndicated art services, and wholesalers, manufacturers,
and trade associations.
CHAPTER 2.
"PUBLIC RELATIONS, CORPORATE ADVERTISING, AND NONCOMMERCIAL
ADVERTISING"
1. THE ROLE OF PUBLIC RELATIONS
Public
relations (PR) is a term that is widely misunderstood and misused to describe
anything from selling to hosting, when in fact it is a very specific
communications process. Every company, organization, association, and
government or says. They might be employees, customers, stockholders,
competitors, suppliers, or Just the general population of consumers. Each of
these groups may be referred to as one of the organization's publics. The
process of public relations manages the organization's relationships with these
publics.
As
soon as word of the Valdez Spill got out, the PR staff at Exxon assumed
responsibility for handling the barrage of phone calls from the press and the
public and for managing all company communications with the media.
Simultaneously,
other company departments had to deal with numerous local, state, and federal
government agencies and with the community at large - not just in Valdez,
Alaska, but anywhere in the world where someone was touched by the disaster. In
addition, myriad other publics suddenly popped into the spotlight demanding
special attention and care: Alaskan fishermen, both houses of congress, local
politicians, the financial community, stockholder, employed, the local press,
national networks, Exxon dealers, and environmental groups, for starters.
Companies
and organizations know they must consider the public impact of their actions
and decisions because of the powerful effect of public opinion. This is
especially true in time of crisis, emergency, or disaster. But it is just as true
for major policy decisions concerning changes in business management, pricing
policies, labor negotiations, introduction of new products, or changes in
distribution methods. Each of these decisions affects different groups in
different ways. Conversely, effective administrators can use the power of these
groups' opinions to bring about positive changes.
In
short, the purpose of ever using labeled public relations is to influence
public opinion toward building goodwill and a positive reputation for the organization.
In one instance, the PR effort might be to rally public support; in another, to
obtain public understanding or neutrality or in still another, simply to
respond to inquiries. Well-executed public relations is a long-term activity
that molds good relationships between an organization and its publics. Put
yourself in the position of Exxon's top public relations manager at the time of
the Valdez accident. What do you suppose was the major thrust of the PR staff's
efforts in the days immediately following the discovery of the oil spill? What
might they have been called on to do?
We
will discuss these and other questions in this chapter. But first it is
important to understand the relationship between public relations and
advertising they are so closely related but so often misunderstood.
2. CORPORATE ADVERTISING
As
mentioned earlier, corporate advertising is basic tool of public relations. It
includes public relations advertising, institutional advertising, corporate
identity advertising, and recruitment advertising. Their use depends on the
particular situation, the audience or public being addressed, and the message
the firm needs to communicate.
2.1 PUBLIC RELATIONS ADVERTISING
Public
relations advertising is often used when a company wishes to communicate
directly with one of its important publics to express its feelings or enhance
its paint of view to that particular audience. The Claris ad in exhibit 18-7,
for example, targets customers investors, and stock analysts. Public relations
ads are typically used to improve the company's relations with labor,
government, customers, or suppliers.
When
companies sponsor art events, programs on public television, or charitable
activities, they frequently place public relations ads in other media to
promote the programs and their sponsorship. These ads are designed to enhance
the company's general community citizenship and to create public goodwill. The
ad in Exhibit 18-8 promotes an art exhibit ant southwestern Bell's sponsorship
role.
2.2 CORPORATE/INSTITUTIONAL ADVERTISING
In
recent years the term corporate advertising has come to denote that broad area
of nonproduct advertising used specifically to enhance a company's image and
increase lagging awareness. The traditional term for this its institutional
advertising.
Institutional
or corporate ad campaigns may serve a variety of purposes - to report the
company's accomplishments, to position the company competitively in the market,
to reflect a change in corporate personality, to shore up stock prices, to
improve employee morale, or to avoid a communications problem with agents,
suppliers, dealers, or customers.
Companies
and even professional advertising people have historically questioned, or
simply misunderstood, the effectiveness of corporate advertising. Retailers, in
particular, have clung to the idea that institutional advertising may be pretty
or nice, but that it " doesn't make the cash register ring ".
However, a series of marketing research studies sponsored by Time magazine and
conducted by the Jankelovich, Kelly & White research firm offered dramatic
evidence to the contrary.
In
the first of these studies, 700 middle- and upper-management executives were
interviewed in the top 25 U.S. markets. The researchers evaluated five
companies that were currently doing corporate advertising and five that were
not. They found that the companies using corporate advertising registered
significantly better awareness, familiarity, and overall impression than
companies using only product advertising. In fact, the five corporate
advertisers in the study drew higher ratings in every one of 16 characteristics
measured, including being known for quality products, having competent
management, and paying higher dividends. Perhaps the most interesting aspect of
the research was the fact that the five companies with no corporate advertising
spent far more for total advertising than did the firms engaged in corporate
advertising.
David
Ogilvy, the founder and creative head of Ogilvy & Mather, has been an
outspoken advocate of corporate advertising. However, he has been appalled by
most corporate advertising, characterizing it as filled with " pomposity
", " Vague generalizations," and " fatuous
platitudes". Corporate advertising has also been criticized for oblivious
to the needs of the audience.
Responding
to such criticisms and to other forces in the marketplace, corporations have
made policies and campaigns. Expenditures for this type over the last decade.
The primary medium used for corporate advertising is consumer (primarily
business) magazines, followed by network television.
A
change in message strategy has also accompanied this increase in corporate ad
spending. In the past, most corporate ads were designed primarily to create
goodwill for the company. Today with many corporations diversifying and
competition from for ling advertisers increasing, these same firms find their
corporate ads must do much more. Their ads must accomplish specific objectives-
develop awareness of the company and its activities, attract quality employees,
tie a diverse product line together, and take a stand on important public
issues.
Another
category of corporate advertising is called advocacy advertising. Corporations
use it to communicate their views on issues that affect tailors its stand to
protect its position in the marketplace.
Corporate
advertising is also increasingly being used to set the company up for future
sales. Although this is traditionally the realm of product advertising, many
advertisers have instituted " umbrella " campaigns that
simultaneously communicate message about the products and the company. This has
been termed market prep corporate advertising a GTE umbrella campaign, for
example, emphasized the company's products and services in a way that pointed
up its overall technological sophistication.
Of
course, no amount of image advertising can accomplish desired goals if the
image does not match the corporation. As noted image consultant Clive Chajet put
it, " You can't get away with a dies enounce between the image and the
reality - at least not for long ".If, for example, a sophisticated
high-tech corporation like IBM tried to project a homey, small-town family
image. It would lose credibility very quickly.
2.3 CORPORATE IDENTITY ADVERTISING
Companies
take pride in their logos and corporate signatures in fact, the graphic designs
that identity corporate names and products are considered valuable assets of
the company, and great effort is expended to protect their individuality and
ownership. The corporate logo may even dominate advertisement. What does a
company do, though, when it decides to change its name, logos, trademarks, or
corporate signatures, as when it merges with another company? How does it
communicate that change to the market it serves and to other influential
publics? This is the job of corporate identity advertising.
When
software publisher Productivity Products International changed its name to
Stepstone Inc., it faced an interesting dilemma. It needed to advertise the
change. But in Europe, a key market for the firm, a corporate name change
implies that the business has gone bankrupt and is starting over with a new
identity. So, rather than announcing its new name in the print media, stepson
used a direct-mail campaign. It mailed an announcement of its name change to
customers, prospects, investors, and the press. The campaign was a success:
within days of the mailing, almost 70 customers and prospects called stepstone
to find out more about the company and its products. More familiar corporate
name changes from the recent past include the switch from America of Western
Bank corporation to First Intestate Bankcorp; the change of Consolidated Foods
to replace the premerger identities of Boroughs and Sperry.
2.4 RECRUITMENT ADVERTISING
When
the prime objective of corporate advertising is to attract employment
applications, companies use recruitment advertising such as the Chiat/Da ad in
Exhibit 18-10. Recruitment advertising is most frequently found in the
classified sections of daily newspapers and is typically the responsibility of
the personnel department rather than the advertising department. Recruitment
advertising has become such a large field, though, that many advertising
agencies now have recruitment specialists on their staffs. In fact, some
agencies specialize completely in recruitment advertising, and their clients
are corporate personnel managers rather than advertising department managers
These agencies create, write, and place classified advertisements in news
papers around the country and prepare recruitment display ads for specialized
trade publications. So far in this chapter, we have discussed only the
advertising of commercial organizations. But nonprofit organizations also
advertise. The government charities, trade associations, and religious groups,
for example, use the same kinds of creative and media strategies as their
counterparts in the for-profit sector to convey messages to the public. But
unlike commercial advertisers whose goal is to create awareness, image, or
brand loyalty on the pan o' consumers, noncommercial organizations use
advertising to affect consume! opinions, perceptions, or behavior—with no
profit motive. While commercial advertising is used to stimulate sales.
3. NONCOMMERCIAL ADVERTISING
Used
to stimulate donations, to persuade people to vote one way or another or to
bring attention to social causes.
If
a specific commercial objective for a new shampoo is to change people'; buying
habits, the analogous noncommercial objective for an energy conservation
program might be to change people's activity habits, such as turning off
the lights. The latter is an example of demarcating, which means the
advertiser is actually trying to get consumers to buy less of a product 01
service. Exhibit 18-11 compares objectives of commercial and noncommercial
advertisers.
3.1 EXAMPLES OF NONCOMMERCIAL
ADVERTISING
One
example of noncommercial advertising conducted on a large scale is the antidrug
campaign created by the Partnership for a Drug-Free America. In 1987, this
coalition of more than 200 ad agencies, the media and many other companies in
the communications business launched an all-out attack on drug abuse. The
coalition set its goal as the "fundamental reshaping of social attitudes
about illegal drug usage." The $1.5 billion program entails the
efforts of ad agencies across the country, each developing components of the
campaign at their own cost.
The
antidrug program includes hundreds of newspaper and magazine ads as well as 200
different commercials and print ads. The space and time allotted for the ads,
all donated by the media, are worth an estimated $310 million per year.24
Similarly, most of the creative and production suppliers have donated their
services.
The
wide variety of ads have been created to reach specific target groups. Some are
aimed at cocaine users, some at marijuana smokers; some are aimed at parents,
some at children. Most ads present hard-hitting messages about the dangers of
drug abuse, depicting drug use as a sure route to the hospital or the cemetery.
In a TV commercial targeted at teenaged marijuana smokers, for example, the
Ayer agency suggests that pot smokers are subjecting themselves to the risk of
physical and mental health problems. Other commercials compare the brain on
drugs to an egg in frying pan or show dead rats that have succumbed to cocaine
abuse. Print ads have also emphasized the dangers of cocaine abuse, including a
series of ads developed by DDB Needham Worldwide that enumerate cocaine's
effects. Exhibit 18-12 is from that series of ads. In addition, some ads speak
to parents who use drugs ("If parents stop, kids won't start"), to
women tempted to use cocaine ("What to do if he hands you a line"),
and to parents who have put off talking to their children about drugs ("If
everybody says it can't happen to their kids, then whose kids is it happening
to?").
The
effort is being billed as the "largest and most ambitious private-sector,
voluntary peacetime effort ever undertaken." Believing that the United
States cannot succeed as a drug culture and that advertising can
"demoralize" drug use, the organization wants nothing less than a
drug-free America.
Not
all public service advertising is done on such a massive scale. We see
advertisements daily for intangible humanitarian social causes (Red Cross),
political ideas or issues (political candidates), philosophical or religious
positions (Church of Latter Day Saints), or particular attitudes and viewpoints
(labor unions). In most cases, these advertisements are created and placed by
nonprofit organizations, and the product they advertise is their particular
mission in life, be it politics, welfare, religion, conservation, health, art,
happiness, or love.
Research
conducted by the Partnership for a Drug-Free America proves that noncommercial
advertising does change consumer attitudes. Specifically, the coalition's ads
have changed attitudes about drug use. Thus, by providing information to the
public on issues such as health, safety, education, and the environment,
noncommercial advertising helps build a better society. Public service
announcements emphasizing the dangers of unsafe sex and drunk driving and those
stressing the virtues of recycling and continuing education demonstrate that
noncommercial advertising can help to enhance the quality of life.
3.2 TYPES OF NONCOMMERCIAL ADVERTISING
One
way to categorize the various types of noncommercial advertising is by the
organizations that use them. For instance, advertising is used by churches,
schools, universities, charitable organizations, and many other nonbusiness
institutions. We also see advertising by associations, such as labor
groups, professional organizations, and trade and civic associations. In
addition, we witness millions of dollars' worth of advertising placed ^government
organizations: the U.S. Army, Navy, Marine, Corps, and Postal Service; the
Social Security Administration; the Internal Revenue Service; and various state
chambers of commerce. In addition, in election years we are bombarded with all
sorts of political advertising that qualifies as noncommercial. The Advertising
Council Most of the national PSAs you see on television have been placed there
by the Advertising Council, a private, nonprofit organization that links
noncommercial campaign sponsors with ad agencies. The sponsors pay for
production costs, while the ad agencies donate their creative services.
3.3 ADVERTISING COUNCIL
The
Ad Council's policy today is basically the same as when it began during World
War II: "Accept no subsidy from government and remain independent of it.
Conduct campaigns of service to the nation at large, avoiding regional,
sectarian, or special-interest drives of all kinds. Remain nonpanisan and
nonpolitical. Conduct the Council on a voluntary basis. Accept no project that
does not lend itself to the advertising method. Accept no campaign with a
commercial interest unless the public interest is obviously over riding."
Among
familiar campaigns created by the Ad Council are those for the United Negro
College Fund ("A mind is a terrible thing to waste"); child abuse
prevention ("Help destroy a family tradition"); the United Way
("It works for all of us"); crime prevention ("Take a bite out
of crime"); and the U.S. Department of Transportation ("Drinking and
driving can kill a friendship"). Exhibit 18-17 shows frames from an Ad
Council commercial that advocates a healthy diet. The Ad Council's two
longest-running campaigns are those for the American Red Cross and forest fire
prevention. According to the Ad Council's research, the number of forest fires
has been cut in half over the life of the Smokey Bear campaign.29 The council
is currently playing a role in overseeing the Partnership for a Drug-Free
America effort.
CHAPTER 3 "INTERNATIONAL
ADVERTISING" 1. GROWTH AND STATUS OF INTERNATIONAL ADVERTISING
In
this text, we have discussed marketing and advertising planning, advertising
creativity, and the advertising media. We have also offered overall advertising
perspectives and focused on some special types of advertising, However, most of
this discussion has centered on advertising as practiced in the United States
and Canada. The question arises, therefore, as to how well such practice
applies to advertising in the rest of the world. Companies advertising abroad
face a variety of difficulties and opportunities, as we will see in this
chapter.
A
bit of history will help put the current explosion of international advertising
into perspective. As U.S. companies entered world markets after World War II,
consumption of U.S. products grew tremendously. By 1990, U.S. advertising
expenditures accounted for $130 billion, or 47 percent of the world total.2
However, in the last 15 years, expenditures by foreign advertisers increased even
more rapidly than U.S. expenditures, thanks to improved economic conditions and
a desire for expansion. As national economies have expanded and personal
incomes have increased, the use of advertising has also increased.
Organizations
in every country of the world practice advertising in one form or another.
Actual figures are not available, but recent estimates of worldwide advertising
expenditures outside the United States exceed $145.6 billion per year, or 53
percent of the worldwide total. The emphasis on advertising in individual
countries, though, depends on the country's level of development and its
national attitude toward promotion. Generally, advertising expenditures are
higher in countries with higher personal income.
Today,
advertising is used worldwide to sell ideas, policies, and attitudes as well as
products. From Procter & Gamble in Cincinnati to Fiat in Turin, Italy,
major marketers believe in international advertising, and they back their
convictions with sizable advertising budgets. As Exhibit 19-2 shows, the top 10
worldwide advertisers are based in many different countries.
Communist
countries, including China, once condemned advertising as an evil of
capitalism. But now, with the Soviet Union's economy broadening to include
private enterprise, even the Soviets are starting to admit the benefits of
advertising. Although decades of propaganda have conditioned Soviet consumers
to distrust or ignore advertising, some Western advertisers are successfully
gaining the attention of Soviet citizens by featuring instructional or
entertaining fare in ads.4 Ad Lab 19-A (p. 674) discusses how Pepsi
has successfully used advertising techniques within the Soviet market.
Certainly,
as a communication form, international advertising contributes to the
unification of the world. And one benefit is enhanced international
understanding as advertisers introduce foreign products, values, and ideas into
new markets. As technology and ideologies evolve, international advertising
will continue to flourish. As a creative director for Ogiivy & Mather in
Paris has said, "Noise n'avons pas mal de budgets," which can be
loosely translated as, "We're not hurting for business."
1.1 MANAGING INTERNATIONAL
Imagine
you are the advertising manager of a U.S. company planning to market its
products abroad. You are aware that you may need to use a Advertising different
creative strategy in the foreign market. You will be speaking to a new audience
with a different value system, a different environment, and probably a
different language. Your foreign customers will probably have different
purchasing abilities, habits, and motivations than the average North American.
The media that U.S. and Canadian advertisers generally use may be unavailable
or ineffective in foreign markets. And the advertisements may need to be
different, too.
You
also face another problem. How will you manage and produce the advertising?
Will your in-house advertising department do it? Will your domestic advertising
agency do it? Or will you have to set up a foreign advertising department or
hire a foreign advertising agency?
To
answer these questions, we need to ask two more:
How
does your company structure its worldwide marketing operations? Within that
structure, what are the most economical and effective means to conduct
advertising activities?
1.2 CREATIVE STRATEGIES IN INTERNATIONAL
ADVERTISING
As
we have discussed throughout this text, advertisers set a creative strategy
based on the mix of product concept, target audience, communications media, and
advertising message. The same holds true in international advertising, except
that advertiser often use different creative strategies in foreign markets than
they would in the United States and Canada. There are several reasons for this:
Influenced
by their own particular environment, foreign markets reflect their local
economy, social system, political structure, and degree of technological
advancement. Therefore, the advertiser's target audiences may be
different, too.
The
media the advertiser uses in domestic markets may not be available, or as
effective and economical, in foreign markets. Therefore, the company may need
to alter its media strategy.
Foreign
consumers may not want to buy, or be able to buy, the same products (or product
concepts). They may have different motivations and buying habits. Therefore,
the advertiser may need to alter the advertising message and possibly even the
product concept.
In
this section, we discuss these three Ms of advertising strategy—markets
(audiences), media, and messages—and their relationship to international
advertising and the products marketed abroad.
BIBLIOGRAPHY
1. Courtland L. Bovee, William F. Arens,
"Contemporary Advertising", Boston, 1992.
2. David J. Rachman, Michael H. Rlescon,
"Business Today", Boston, 1990.
3. Danielle Gibson, "Fundamental of
Management", 1991.
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M., "Managment", Boston, 1992.
8. Heinz Weihrich, Harold Koontz,
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Science. Building and Using Models", Homewood, Illinois,1989.
Finally
Local advertising is
referred to as retail advertising because it is commonly performed by retail
stores. However, retail advertising is not necessarily local - it can be
regional or national as well, as the volume of commercials run by national
retail firms such as sears and J.C.Penney. Moreover, many businesses not
usually thought of as retail stores use local advertising - real estate
brokers, banks, movie theaters, auto mechanics, and TV stations, restaurants,
museums, and even funeral homes. Local businesses of all types often use public
service or issue advertising.
Businesses
in each of these categories have different advertising goes and approaches.
Local advertising is very important because most sales are made or lost
locally. A national auto manufacturer may spend millions advertising new cars,
but its nationwide network of local auto dealers spend just as much or more on
a combined basis to bring customers into their showrooms to buy the cars. In
fact, if the dealers don't make a strong effort on the locallevel, the effort
of national advertisers may be wasted. So when it comes to consummating the
sale, local advertising is where the actions is. The basic principles used by
national advertisers are also applicable to local advertising, but local
advertisers have special problems that stem from the simple, practical
realities of marketing in a local area.]
Public
relations (PR) is a term that is widely misunderstood and misused to describe
anything from selling to hosting, when in fact it is a very specific
communications process. Every company, organization, association, and
government or says. They might be employees, customers, stockholders,
competitors, suppliers, or Just the general population of consumers
Today,
advertising is used worldwide to sell ideas, policies, and attitudes as well as
products. From Procter & Gamble in Cincinnati to Fiat in Turin, Italy,
major marketers believe in international advertising, and they back their
convictions with sizable advertising budgets. As Exhibit 19-2 shows, the top 10
worldwide advertisers are based in many different countries.