Global advertising

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Global advertising

  1. 1. Jitendra SingodiyaGlobal AdvertisingGlobal advertising is a lot different from international advertising . They seem similar but whenyou are creating and expanding your business you have to know the differences between the two.This way, when you are ready to expand, you will know which way is better and not worry aboutdoing everything at once.Global Advertising is defined by the Oxford University Press as "advertising on a worldwidescale reconciling or taking commercial advantage of global operational differences, similaritiesand opportunities in order to meet global objectives." So basically global advertising is showingyour product all over the world. It sounds a lot like international advertising or like the two areexactly the same but here are the differences.Global advertising is basically when a company looks at the entire world as one market. Thereare no differences between a local market and the market 10,000 miles away. It views everythingin the same way and not like it is any different in any specific ways. Global advertising is usedby huge chain stores that sell only certain products. They usually wont bring anything differentor new to the store near to you that might cater to a certain religion or cultural group, becausethey are based somewhere else. They usually wont bring in cultural foods or products, justbecause they are a general store. They sell the same exact products all over the world and theexact same things in every single store.To become a global company a company has to use the "Four Ps of marketing." They are price,promotion, product, and placement. A company doesnt just become a global company overnightbut goes through several steps to become global. They have to have a global team. They have tohave a global marketing plan. It takes time for a company to evolve from a local company to onethat sells products all over the world.International advertising is a little different still from global advertising . Internationaladvertising is when a company that is based in one country decides to sell products in another. Itsets up offices and headquarters in the other countries. International advertising is almost like afranchise is being built, just in another country. The company still owns and operates thebusiness in the other country, but the headquarters in the specific country cater the business tothe countrys needs.You can still have a huge chain store using international advertising . The chain store still has itsname and logos and products, but it sells mostly items that are specific to the country. It isntbased off of things that are say just American, but has things that are say French as well.The advantages of the international advertising is that the executives are usually native to thecountry and so are familiar with customs and ideas that are best suited for the area. They stillmake most of the advertising and business decisions but have to report to the main headquartersin the country where the business started.When you start off your business you usually start off with just one store or location and in yourimmediate area. Then you expand. When you are ready to expand and to start selling yourproducts in different countries look at your product and how to want to portray it. Look at thepros and cons for global marketing versus international advertising and decide which would bebetter for your company and product.
  2. 2. Jitendra SingodiyaGlobal Advertising StrategyAn advertising strategy is a campaign developed to communicate ideas about products andservices to potential consumers in the hopes of convincing them to buy those products andservices. This strategy, when built in a rational and intelligent manner, will reflect other businessconsiderations (overall budget, brand recognition efforts) and objectives (public imageenhancement, market share growth) as well. As Portable MBA in Marketing authors AlexanderHiam and Charles D. Schewe stated, a businesss advertising strategy "determines the characterof the companys public face." Even though a small business has limited capital and is unable todevote as much money to advertising as a large corporation, it can still develop a highly effectiveadvertising campaign. The key is creative and flexible planning, based on an indepth knowledgeof the target consumer and the avenues that can be utilized to reach that consumer.Today, most advertising strategies focus on achieving three general goals, as the Small BusinessAdministration indicated in Advertising Your Business: 1) promote awareness of a business andits product or services; 2) stimulate sales directly and "attract competitors customers"; and 3)establish or modify a business image. In other words, advertising seeks to inform, persuade, andremind the consumer. With these aims in mind, most businesses follow a general process whichties advertising into the other promotional efforts and overall marketing objectives of thebusiness.STAGES OF ADVERTISING STRATEGYAs a business begins, one of the major goals of advertising must be to generate awareness of thebusiness and its products. Once the business reputation is established and its products arepositioned within the market, the amount of resources used for advertising will decrease as theconsumer develops a kind of loyalty to the product. Ideally, this established and ever-growingconsumer base will eventually aid the company in its efforts to carry their advertising messageout into the market, both through its purchasing actions and its testimonials on behalf of theproduct or service.Essential to this rather abstract process is the development of a "positioning statement," asdefined by Gerald E. Hills in "Marketing Option and Marketing" in The Portable MBA inEntrepreneurship: "A positioning statement explains how a companys product (or service) isdifferentiated from those of key competitors." With this statement, the business owner turnsintellectual objectives into concrete plans. In addition, this statement acts as the foundation forthe development of a selling proposal, which is composed of the elements that will make up theadvertising messages "copy platform." This platform delineates the images, copy, and art workthat the business owner believes will sell the product.With these concrete objectives, the following elements of the advertising strategy need to beconsidered: target audience, product concept, communication media, and advertising message.These elements are at the core of an advertising strategy, and are often referred to as the "creativemix." Again, what most advertisers stress from the beginning is clear planning and flexibility.And key to these aims is creativity, and the ability to adapt to new market trends. A rigidadvertising strategy often leads to a loss of market share. Therefore, the core elements of theadvertising strategy need to mix in a way that allows the message to envelope the targetconsumer, providing ample opportunity for this consumer to become acquainted with theadvertising message.TARGET CONSUMER The target consumer is a complex combination of persons. It includesthe person who ultimately buys the product, as well as those who decide what product will be
  3. 3. Jitendra Singodiyabought (but dont physically buy it), and those who influence product purchases, such aschildren, spouse, and friends. In order to identify the target consumer, and the forces acting uponany purchasing decision, it is important to define three general criteria in relation to thatconsumer, as discussed by the Small Business Administration:1. Demographics—Age, gender, job, income, ethnicity, and hobbies.2. Behaviors—When considering the consumers behavior an advertiser needs to examinethe consumers awareness of the business and its competition, the type of vendors andservices the consumer currently uses, and the types of appeals that are likely to convincethe consumer to give the advertisers product or service a chance.3. Needs and Desires—Here an advertiser must determine the consumer needs—both inpractical terms and in terms of self-image, etc.—and the kind of pitch/message that willconvince the consumer that the advertisers services or products can fulfill those needs.PRODUCT CONCEPT The product concept grows out of the guidelines established in the"positioning statement." How the product is positioned within the market will dictate the kind ofvalues the product represents, and thus how the target consumer will receive that product.Therefore, it is important to remember that no product is just itself, but, as Courtland L. Boveeand William F. Arens stated in Contemporary Advertising, a "bundle of values" that the consumerneeds to be able to identify with. Whether couched in presentations that emphasize sex, humor,romance, science, masculinity, or femininity, the consumer must be able to believe in theproducts representation.COMMUNICATION MEDIA The communication media is the means by which the advertisingmessage is transmitted to the consumer. In addition to marketing objectives and budgetaryrestraints, the characteristics of the target consumer need to be considered as an advertiserdecides what media to use. The types of media categories from which advertisers can chooseinclude the following:• Print—Primarily newspapers (both weekly and daily) and magazines.• Audio—FM and AM radio.• Video—Promotional videos, infomercials.• World Wide Web.• Direct mail.• Outdoor advertising—Billboards, advertisements on public transportation (cabs, buses).After deciding on the medium that is 1) financially in reach, and 2) most likely to reach the targetaudience, an advertiser needs to schedule the broadcasting of that advertising. The mediaschedule, as defined by Hills, is "the combination of specific times (for example, by day, week,month) when advertisements are inserted into media vehicles and delivered to target audiences."ADVERTISING MESSAGE An advertising message is guided by the "advertising or copyplatform," which is a combination of the marketing objectives, copy, art, and production values.This combination is best realized after the target consumer has been analyzed, the productconcept has been established, and the media and vehicles have been chosen. At this point, theadvertising message can be directed at a very concrete audience to achieve very specific goals.Hiam and Schewe listed three major areas that an advertiser should consider when endeavoringto develop an effective "advertising platform":• What are the products unique features?• How do consumers evaluate the product? What is likely to persuade them to purchase theproduct?
  4. 4. Jitendra Singodiya• How do competitors rank in the eyes of the consumer? Are there any weaknesses in theirpositions? What are their strengths?Most business consultants recommend employing an advertising agency to create the art workand write the copy. However, many small businesses dont have the up-front capital to hire suchan agency, and therefore need to create their own advertising pieces. When doing this a businessowner needs to follow a few important guidelines.COPY When composing advertising copy it is crucial to remember that the primary aim is tocommunicate information about the business and its products and services. The "sellingproposal" can act as a blueprint here, ensuring that the advertising fits the overall marketingobjectives. Many companies utilize a theme or a slogan as the centerpiece of such efforts,emphasizing major attributes of the businesss products or services in the process. But as Hiamand Schewe caution, while "something must be used to animate the theme …care must be takennot to lose the underlying message in the pursuit of memorable advertising."When writing the copy, direct language (saying exactly what you mean in a positive, rather thannegative manner) has been shown to be the most effective. The theory here is that the less theaudience has to interpret, or unravel the message, the easier the message will be to read,understand, and act upon. As Jerry Fisher observed in Entrepreneur, "Two-syllable phrases likefree book, fast help, and lose weight are the kind of advertising messages that dont need to beread to be effective. By that I mean they are so easy for the brain to interpret as a whole thoughtthat theyre read in an eye blink rather than as linear verbiage. So for an advertiser trying to getattention in a world awash in advertising images, it makes sense to try this message-in-an-eye-blink route to the public consciousness—be it for a sales slogan or even a product name."The copy content needs to be clearly written, following conventional grammatical guidelines. Ofcourse, effective headings allow the reader to get a sense of the advertisements central themewithout having to read much of the copy. An advertisement that has "50% Off" in bold blackletters is not just easy to read, but it is also easy to understand.ART WORK AND LAYOUT Small business owners also need to consider the visual rhetoric ofthe advertisement, which simply means that the entire advertisement, including blank space,should have meaning and logic. Most industry experts recommend that advertisers use shortparagraphs, lists, and catchy illustrations and graphics to break up and supplement the text andmake the document both visually inviting and easy to understand. Remember, an advertisementhas to capture the readers attention quickly.ADVERTISING BUDGET The advertising budget can be written before or after a businessowner has developed the advertising strategy. When to make a budget decision depends on theimportance of advertising and the resources available to the business. If, for instance, a businessknows that they only have a certain amount of money for advertising then the budget will tend todictate what advertising is developed and what the overall marketing objectives will be. On theother hand, if a business has the resources available, the advertising strategy can be developed tomeet predetermined marketing objectives. For small businesses, it is usually best to put togetheran advertising budget early in the advertising process.The following approaches are the most common methods of developing an effective budget. Allthe methods listed are progressive ones that look to perpetuate growth:• Percentage of future or past sales• Competitive approach• Market share
  5. 5. Jitendra Singodiya• All available funds• The task or objective approachThe easiest approach—and thus the one that is most often used—is the percentage of future orpast sales method. Most industry experts recommend basing spending on anticipated sales, inorder to ensure growth. But for a small business, where survival may be a bigger concern thangrowth, basing the advertising budget on past sales is often a more sensible approach to take.METHODS OF ADVERTISINGSmall business owners can choose from two opposite philosophies when preparing theiradvertising strategy. The first of these, sometimes called the push method, is a stance wherein anadvertiser targets retail establishments in order to establish or broaden a market presence. Thesecond option, sometimes called the pull method, targets end-users (consumers), who areexpected to ask retailers for the product and thus help "pull" it through the channel ofdistribution. Of course, many businesses employ some hybrid of the two when putting togethertheir advertising strategy.PUSH METHOD The aim of the push method is to convince retailers, salespersons, or dealers tocarry and promote the advertisers product. This relationship is achieved by offeringinducements, such as providing advertising kits to help the retailer sell the product, offeringincentives to carry stock, and developing trade promotions.PULL METHOD The aim of the pull method is to convince the target consumer to try, purchase,and ultimately repurchase the product. This process is achieved by directly appealing to thetarget consumer with coupons, in-store displays, and sweepstakes.ADVERTISING LAWSThe Federal Trade Commission (FTC) protects consumers from deceptive or misleadingadvertising. Small business owners should be familiar with the following laws, which pertain tomarketing and advertising and are enforced by the Commission:• Consumer Product Safety Act—Outlines required safety guidelines and prohibits the saleof harmful products.• Child Protection and Toy Safety Act—Prohibits the sale of toys known to be dangerous.• Fair Packaging and Labeling Act—Requires that all packaged products contain a labeldisclosing all ingredients.• Antitrust Laws—Protects trade and commerce from unlawful restraints, price deception,price fixing, and monopolies.Many complaints against advertisers center on allegedly deceptive advertisements, so smallbusiness consultants urge entrepreneurs and business owners to heed the following general rulesof thumb:1. Avoid writing ads that make false claims or exaggerate the availability of the product orthe savings the consumer will enjoy.2. Avoid running out of advertised sale items. If this does happen, businesses shouldconsider offering "rain-checks" so that the consumer can purchase the item later at thesame reduced price.3. Avoid calling a product "free" if it has cost closely associated with it. If there are costsassociated with the free item they need to be clearly disclosed in the ad.Since advertising is a complex process, and business law undergoes continual change, businessowners should consult an attorney before distributing any advertising.
  6. 6. Jitendra Singodiya

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