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.

4. "Encyclopedia", U.S. Pat. &T.M. Off. Marka Registrar, 1994.

5. "The English Speaking World", Terra, 1995.

6. J. R. Evans, Barry Berman, "Marketing", New York, London, 1986.

7. I. Gibson, James L. Ivancevich, John M., "Managment", Boston, 1992.

8. Heinz Weihrich, Harold Koontz, "Management. A Global Perspective", New York, 1993.

9. Joseph E. Kolet, "Primer on. Wage & Hour Laws", Washington, 1970.

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12. M. Registered, "World Book", England, 1994.

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14. Stanley B. Block, "Foundation of Financial Management", 1981.

15. Thomas W. Knowles, "Management 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.