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THE ROLE OF ADVERTISINGLDCs and socialist/communist countries, emphasizing production anddistribution efficiency, usually attack advertising as a wasteful practice whoseprimary purpose is to create unnecessary wants. Yet advertising serves a veryuseful purpose-consumers everywhere, irrespective of their countries politicalsystems and level of economic development, need useful product information.Since the 1950s China has prohibited foreigners from advertising there becauseadvertising was considered politically inappropriate. In the 1980s, however, Chinachanged its policy in order that the Chinese population could be informed of products available, just as in a modern industrial society. Virtually all media are howavailable for advertising billboards, department stores display cases, telephonebooks, newspapers, magazines, and journals. Even radio and TV time is availableand can be purchased. TV advertising is quite a bargain, since a sixty-sexily-secondspot for the nationally broadcast China Central Television I network costs only55,000. Chinese viewers generally enjoy watching the commercials shown.One study of our developing countries found that singaporeans, probably themost economically advanced among the group, had more negative feelings thanthose in other countries. They were least likely to see advertising as beingeconomically beneficial, and they were also most critical of the social impact of advertising. Interesting, Russian consumers were found to exhibit more variableattitudes toward advertising in general, whereas American respondents felt thatadvertising resulted in greater negative social effects.2A correlation has been shown to exist between advertising expenditures and
 
a country's GNP and level of economic development. As a country becomes moreindustrialized, the level of advertising expenditure tends to increase as well. theUnited States is highest in per capita advertising at $499 per person. In the case of  japan, Canada, Germany, and France, the figures are $298, $196, and $154,respectively.3 Regarding the Commonwealth of Independent States (CIS), foreigncompanies are responsible for about half of the advertising done there. Theadvertising expenditures in the CIS, at about $30 million, are quite tiny andrepresent only the amount for a small advertising account in the United States.Proctor and Gamble, the world's advertising leader, annually spends $2.3 billionworldwide to promote its products.Many of the largest advertisers in the United States also advertise heavilyoverseas. Proctor and Gamble and General Motors, for example, are among thelargest advertising spenders in France and Canada. Local firms in markets outsidethe United States often view this kind of expenditure as an unfair trade practice.They fear that American firms could easily overwhelm local firms in terms of advertising dollars.
PATTERNS OF ADVERTISING EXPENDITURES:
In one study, advertising-to-sales ratios varied across fifteen countries, withratios ranging from 0.95 for Yugoslavia to 7.62 for Australia. These ratios were notrelated to propulsion size, number of directly competing brands within the firm, or number of directly competing brands outside the firm and provide information on
 
budgeting methods, media allocation, measures of advertising effectiveness, an dcompensation methods.The relationship between advertising expenditure and sales generated hasbeen well documented. Certain variables determine the size of the advertisingbudget as well as the size of the overall marketing budget. According to the well-publicized ADVISOR models, the size of an advertising budget is a function of Sales (+) number of users and other participants )+), customer concentration (-),fraction of sales made to order (-). stage in life cycle (-), and product plans )+). Thesize of a marketing budget is a function of prospect-customer attitude differences(-), proportion of direct sales )+), and product complexity (-). It should be pointed outthat the importance of particular predictor variables is not uniform across countries.It is important to note variations in the various kinds of marketing expenseswhen expressed as a percentage of sales across countries and product categories.The variations in the marketing expense ratios indicate the executives should becareful when they approach advertising budget decisions in other cultures.
ADVERTISING AND REGULATIONS:
Advertising can be affected in several ways by local regulations. Theavailability of media (or the lack of it) is one example. When and how much mediatime and space are made available, if at all, is determined by local authorities.Belgium prohibits the use of electricity for advertising purposes between midnightand 8:00 A.M. German was regulate TV advertising contents and limit advertisingon the national TV channels to twenty minutes a day, forcing advertisers to switch
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