International marketing

International Marketplace

Marketing:

A

Global

Trade is increasingly global in scope today. There are several reasons for this. One significant reason is technological—because of improved transportation and communication opportunities today, trade is now more practical. Thus, consumers and businesses now have access to the very best products from many different countries. Increasingly rapid technology lifecycles also increases the competition among countries as to who can produce the newest in technology. In part to accommodate these realities, countries in the last several decades have taken increasing steps to promote global trade through agreements such as the General Treaty on Trade and Tariffs, and trade organizations such as the World Trade Organization (WTO), North American Free Trade Agreement (NAFTA), and the European Union (EU). Some forces in international trade. Trade between countries is beneficial because these countries differ in their relative economic strengths—some have more advanced technology and some have lower costs. Products tend to be adopted more quickly in the
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The first printed advertisement in the English language appeared in 1478. An early form of advertising was the town crier. such as an automobile intended for the World market. The Weekly News. just as trademarks and brand names are used today. an increasing market potential might exist in other countries (e. As the person’s reputation spread by word of mouth. Europe and the rest of Asia). Ben Franklin has been called the father of American advertising because his 3 . Advertising had its greatest growth in the United States. Archaeologists working in the countries around the Mediterranean sea have dug up signs announcing various events and offers. Historical Milestones In Advertising Advertising goes back to the very beginnings of recorded history.United States and Japan. such as pottery. for example. the mark became more important. The turning point in the history of advertising came in he year 1450 when Johann Gutenberg invented the printing press.g. buyers began to look for his special mark. In 1622.. advertising got a big boost with the launching of the first English newspaper. As production became more centralized and markets became more distant. Advertising Advertising is a persuasive communication attempt to change or reinforce ones’ prior attitude that is predictable of future behavior. so once the demand for a product (say. Internalization/transaction costs refers to the fact that developing certain very large scale projects. VCRs) is in the decline in these markets. Advertising no longer had to produce extra copies of a sign by hand. may entail such large costs that these must be spread over several countries. Another early advertising form was the mark that trades people placed on their goods.

later. presenting your company's image and sales message repeatedly to build awareness and trust. how it will look. What Advertising Can Do For Your Business  Remind customers and prospects about the benefits of your product or service  Establish and maintain your distinct identity  Enhance your reputation  Encourage existing customers to buy more of what you sell  Attract new customers and replace lost ones  Slowly build sales to boost your bottom line  Promote business to customers. Customers will recognize you quickly and easily . A distinctive identity will eventually become clearly associated with your company. first published in 1729. like McDonald's golden arches.Gazette. The invention of radio and. You can target your audience more readily and aim at very specific geographic areas.had the largest circulation and advertising volume of any paper in colonial America. you determine exactly where. when and how often your message will appear. investors 4 .  You can be consistent. Unlike public relations efforts. and what it will say.in ads. Advertising's Two Important Virtues  You have complete control. mailers.if you present yourself consistently. packaging or signs . television created two more amazing media for the spread of advertising.

 Media Strategy And Tactics. 5 . public relation. pricing.  Consideration. competitive.Advertising Plan The manager needs to engage in situation analysis with respect to the market conditions that are operating at the time and to assess the consumer/market. and global factors that will affect decision making and the development of the plan. and social legal.  Message Strategy And Tactics. facilitating agency. The advertising manager also needs to know the major areas of his or her planning and decision-making responsibilities. and promotion. There are three areas of major importance:  Objective And Target Selection. It is vital that the advertising plan be developed so as to mesh with and support the various components of the marketing and communications mix such as personal selling.

its growth rate. what shares its competitors have. 6 . and from which competitors an increase in share will come. attempts to locate the relative perceptual positions of competitive brands. production. geographical distribution. Situation analysis should usually include an analysis of what current share the brand now has. reasons for these trends. or cause being advertised: the size of the market. Competitive Analysis Advertising planning and decision-making are heavily affected by competition and the competitive situation the advertiser faces. seasonality. for example. the possible existence of different segments.Consumer and Market Analysis A situation analysis often begins by looking at the aggregate market for the product. trends in these shares. Competition is such a pervasive factor that it will occur as a consideration in all phases of the advertising planning and decision-making process. service. A type of market structure analysis that involves the development of perceptual maps of a market. and marketing of the different competing companies. and trends in all of these aggregate market characteristics. and the history of competitive moves and objectives in the product category. The planner also has to be aware of the relative strengths and weaknesses financial. what share of a market is possible for the brand.

such as the needs of working men and women for easily prepared meals. and promotion. are identified and analyzed in a marketing plan. place. The marketing plan will include a statement of marketing objectives and will spell out particular strategies and tactics to reach those objectives. A marketing plan formulates the strategy and tactics for each of these. There are several marketing tools that can be used to help an organization achieve its marketing objectives.The Marketing Plan Advertising planning and decision making take place in the context of an overall marketing plan. 7 . The marketing plan includes planning. The marketing objectives should identify the segments to be served by the organization and how it is going to serve them. and control functions for the total corporation or a particular decision-making unit or product line. The needs and wants of consumers on which the firm will concentrate. price. implementation. Most people are familiar with the “4 Ps” the marketing mix which includes product.

In addition. and a receiver. a message.Advertising Communication System Advertising communication always involves a perception process and four of the elements shown in the model: the source. the receiver will sometimes become a source of information by talking to friends or associates. and it involves social interactions between two or more people and the important ideas of group influence and the diffusion of information. An advertising message can have a variety of effects upon the receiver. This type of communication is termed word-of-mouth communication. a communication channel. It can  Create awareness  Communicate information about attributes and benefits  Develop or change an image or personality  Associate a brand with feelings and emotions  Create group norms  Precipitate behavior 8 .

Once the content of the campaign has been decided. or action content. and the resources necessary. It is only when the job to be done is well specified that the amount and nature of the effort the amount of money to be invested in advertising can be really determined 9 . Media Strategy Although there are many rules of thumb often used to decide how much money to spend on advertising. brand personality. the advertising manager must decide what the advertising is meant to communicate by way of benefits. First.Message Strategy and Tactics The actual development of an advertising campaign involves several distinct steps. decisions must be made on the best and most effective ways to communicate that content. the soundest rules involve beginning with a detailed specification of what a corporation is attempting to accomplish with advertising. feeling.

Next. First. The message is then sent through media channels to the audience who then decodes and reacts to the message.International advertising It entails dissemination of a commercial message to target audiences in more than one country. the advertiser determines the appropriate message for the target audience. At each stage in the process. The sum total of these activities constitutes a worldwide industry that is growing in importance. be viewed as a communication process that takes place in multiple cultures that differ in terms of values. International advertising is also a major force that both reflects social values. therefore. as well as in levels of literacy and languages spoken. Target audiences differ from country to country in terms of how they perceive or interpret symbols or stimuli. International advertising is also a business activity involving advertisers and the advertising agencies that create ads and buy media in different countries. How the advertising function is organized also varies. and propagates certain values worldwide. cultural barriers may hamper effective transmission of the message and result in miscommunication. and consumption patterns. communication styles. International advertising can. the message is encoded so that it will be clearly understood in different cultural contexts. The Communication Process The process of communication in international markets involves a number of steps. 10 . respond to humor or emotional appeals.

its corporate image. the message relates to a specific product or service marketed by the firm. i. In some cases the advertising message relates to the firm and its activities. In either case. the firm will use the services of an advertising agency to determine the appropriate message. 11 . advertising copy and make the media placement.e. In other cases.International Advertising as a Business Practice International advertising can also be viewed as a business activity through which a firm attempts to inform target audiences in multiple countries about itself and its product or service offerings.

The Tata Group has some of India's most famous personalities from the sports and entertainment fields endorsing its products and 12 .

Aamir Khan 6. Sania Mirza. Shahrukh Khan 5.Sania Mirza 13 . Sachin Tendulkar 3. Narain Karthikeyan 4. Naseeruddin Shah and Aamir Khan who have greatly contributed to the success if Tata’s products and services. Aishwarya Rai 7. and the Tata brand like Narain Karthikeyan. Rahul Dravid 8. Sourav Ganguly and Irfan Pathan.services. Saurav Ganguly 10. Saif Ali Khan 9. Amitabh Bachchan 2. Highest Earning Celebrities 1.

27.73.Impact Of Advertising On Sales HERO HONDA Sales Performance Dec'04 Domestic Exports 225250 5501 Dec'05 238822 6282 Apr'04Dec'04 1892540 43441 Apr'05Dec'05 2155479 72815 The Hero Honda Company achieved a solid growth of 35% as compared with sales recorded during January 2005. 14 .052 units sales achieved during the corresponding period last year (April 2002-January 2005). a notable jump from 14. The cumulative sales of the company for the period April 2003 .421 motorcycles.January 2004 are 16. This reflects a growth of 17% in the cumulative sales of the company owing to its advertising strategies.

From a planning viewpoint. mutual understanding. Cagley and Roberts found that the people factor” tends to dominate in agency selection. Many advertising decisions involve choices among facilitating agency alternatives. is done without the services of an advertising agency or a research supplier. much local advertising. for example. on the other hand. What advertising agency should be chosen? What media should be used? What copy-testing supplier will be best for our particular situation? Concerning the question for agency selection.Facilitating Agencies Another external factor involves the agencies that facilitate advertising and provide the means to advertise. 15 . for example. and synergism were very important. may have under contract many different agencies and research suppliers. the advertiser basically needs to know what kind of facilitating agencies exist and the nature of the services they can provide. From a situation analysis viewpoint. reputation. A national advertiser. interpersonal compatibility. Characteristics such as the quality of personnel. each serving one or more brands in a product line made up of several products. integrity.

although WPP.Fact file  The majority of large advertising agencies are headquartered in the US. is made up of two large US-based agencies. and one each in the UK. seven are headquartered in the US. most other agency networks generate the majority of their revenues outside their home country.  US-based advertising agencies and their subsidiaries are responsible for most of the advertising throughout the world. France and Japan. places over $37 billion of advertising for its clients around the world and derives half its revenue from outside the US.  With the exception of Dentsu. the British agency holding company. 16 . the Japanese agency. Of the ten largest advertising agency groups.  China is the next largest advertising market and is also growing rapidly.  The largest agency group. Omnicom.

K. Japan U.Advertising Expenditure The Table below shows advertising spending in the top ten global ad markets.S.5 5.7 8.7 Percent 50 15 9 9 4 4 3 2 2 2 100 17 .8 7.4 5.3 235.8 20.3 9.0 35.2 5. 1997 Advertising Country U. Germany France Brazil Italy Australia Canada S. Korea Total: Expenditures (millions) 117.7 20.

3 6.507 1.1 6.7 18 .551 2.251 12.4 6.045 815 774 736 728 712 683 20.211 10.S Advertising (Millions $) Total Sales U.260 50.S Advertising As A Recent (Millions $) Of Sales 1 2 3 4 5 6 7 8 9 10 Philip Morris Procter & Gamble General Motors Sears RJR Nabisco Grand Metropolitan Eastman Kodak McDonald’s Pepsi Co Kellogg 2.805 91.024 11.766 9.4 24.Top 10 Advertising companies.7 24.380 10.8 1. Rank Company Total U.1 7.866 11.9% 12.294 1.4 2.635 3.058 1.

relevant information must be well aware of advertising regulation. is an intrusion into an already excessively polluted environment. However. One solution is to create brand advertising that is vague and contains little specific information.Factors Affecting Advertising The final external factor in the planning framework concerns environmental factor social. Another concern is that advertising. Law forbids deceptive advertising. by it can lessen the social value of advertising by reducing the amount for useful information that it provides to society. Thus. Thus advertising has a tremendous impact on international marketing and the two concepts therefore go hand in hand and are dependent on each other. Even more difficult consideration for people involved in the advertising effort is broad social and economic issues. legal. such an approach can result not only in ineffective advertising. especially when it is more irritating than entertaining. A whole set of rules is emerging to cover advertising directed at children. and global. and advertising for products such as alcohol and cigarettes. and advertiser who attempts to provide specific. and the use of environmental and health claims in advertising. 19 .

Make a list of the radio stations in your market. These five keys help increase your chances of having a successful radio ad campaign. Target Audience Just like with every ad one create. you must know ones target audience. Frequency of Ads A radio commercial needs to air multiple times before it sinks in with the listener. Advertising a teen clothing store on the same station doesn't. 20 .Five Keys to Radio Advertising Success Radio is an affordable ad medium that can reach a mass audience. Advertising your western gear store on a country station makes sense. Listen to each one to help identify your own target audience. A commercial that airs multiple times in a day has a better chance of reaching the listener than a commercial that only airs a few times in a week. What kind of listeners will be tuning in and are they a potential customer for your product or service? Radio stations also offer programs you'll want to know more about before you buy. Running your commercial once a week for a month isn't going to be enough. Frequency refers to how many times your ad airs in a short amount of time.

production is simpler for a radio commercial. The copy needs to be crystal clear and not muddied by trying to be cutesy in your pitch. Your copy isn't relying on any visuals so it's vital you capture the listener's attention from the start. However. Research shows it takes a few times before the consumer actually gets what your company is all about.Producing A Commercial Unlike television commercials. It's vital your ad stands out and conveys your message repeatedly. Indian Advertising Industry  Concrete advertising history begins with classified advertising  Ads appear for the first time in print in Hickey's Bengal Gazette. Studios mark the beginning of advertising created in India (as opposed to imported from England) Newspaper studios train the first generation of visualisers & illustrators 21  . Frequency is the key so make sure your ad hits the mark and will get the consumer's attention the first time. that doesn't mean one should just slap something together. India's first newspaper (weekly).

Army & Navy and Whiteaway & Laidlaw Marketing promotions: Retailers' catalogues provided early example Ads appear in newspapers in the form of lists of the latest merchandise from England Patent medicines: The first brand as we know them today were a category of advertisers    Advertising Campaign Break-Through 1) Volkswagen The Volkswagen campaign of the 1960’s is considered a huge breakthrough in the history of advertising. Major advertisers: Retailers like Spencer's. the auto industry tended focus on the beauty and engineering stretch of the vehicle. honesty. Volkswagen advertising broke through the clutter by creating ads based upon the same principle that drew drivers of Volkswagens in the first place: simplicity. During this time. uniqueness and humor. Now. 2) Marlboro 22 . the brand continues to stand out with maximum creativity. However.

23 . Ltd. Glare Advertising Marketing Consultants & Agencies Limited Mudra Communications Pvt.Marlboro Cigarettes The Marlboro Man smoking cigarettes has come to be one of the biggest icons of advertising.” It has demonstrated the powerful impact the industry has on consumers. The handsome and suave person made smoking cigarettes look “cool. Top Advertising Agencies in India       Mammoth Graphic Communications Accord Advertising FCB-Ulka Advertising Ltd.

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