Sample Essay The global recession is anticipated to have heavy impacts on European consumers due…
Essay: Global Advertising
Essay: Global Advertising
Global advertising is affected by a number of problems such as language, religion, culture, colors, numbers, images`, education, political and legal forces, production and cost limitations. What strategies can be undertaken by international companies for these?
Rapid advancements in Information and Communication Technologies (ICT) and sophisticated transportation channels have truly globalized the world (Gabrielsson and Gabrielsson 2004). Where these modern technologies have ushered new horizons for global business opportunities, they also have created many challenges as well (Terpstra 2000). Since the advent of information superhighways and high-speed Internet, competition has become a global phenomenon (Davis and Chase 2003). In order to acquire, retain and satisfy the global customers, marketing managers of big Multinational Companies (MNCs) have to devise such advertising strategies and programs which can communicate their marketing message in an efficient and integrated way (Walters and Davies 2007). The diversity of cultures, markets, products, local laws and the cost barriers have certainly raised many predicaments for the marketers of today (Melewar and Vemmervik 2004).
Over the last 40 years, there has been a huge research and debate in academia and industry about devising an international marketing strategy (Kustin 2004). As a result, two most prominent schools of thought emerged: one is in the favor standardized strategy and other prefers customized and flexible strategies (Melewar and Vemmervik 2004). A third standpoint also exists which states that there should be a hybrid type of advertising strategy which carries the advantages of these two options but avoid their pitfalls (Delios and Beamish 2001). There are arguments both in favor and against of each standpoint (Melewar and Balabanis 2000).
By standardization, they mean that the strategic objectives, command and control, target market and positioning of the brand will be identical in all the local and international markets (Shoham 1999). However, for the implementation of the advertising programs, companies can adopt the different tactics according to the needs of the local market (Walters and Davies 2007). Among these tactics are the marketing budget, selection of a particular media for advertisement and the idea of advertisements (Melewar and Vemmervik 2004). Melewar and Balabanis (2000) studied in an another research that most of the MNCs, operating in the Middle East take their decisions relating to positioning and key idea of advertisement in their headquarters while other decisions like selection of a particular target segment, innovative execution methods and media selection, are taken locally. Followers of standardization also propose that global markets are harmonizing because of the highly refined information technologies and integration of markets (Kanso and Nelson 2002). Hence, the global consumers are exhibiting similar behavior despite the cultural and linguistic differences (Melewar and Vemmervik 2004).