Advertising Benefits the Advertisers Advertising establishes a link between the manufacturer and the consumer.

It is a form of mass communication. Through advertising the advertiser reaches a vast number of consumers and makes his product known to them. Advertising makes it possible for manufacturer to introduce new ideas and new products. Had it not been for advertising, we would not have accepted many products. Advertising keeps the consumers well informed about the products and services styles, features, sizes, colours, specifications, prices, availability and instructions for use etc. Advertising has an educative role to play. It keeps the consumers conversant with the use of the products especially household appliances, capital goods etc. Advertising expands markets, builds up volumes, gives a market share and profitability, reduces prices. Advertising makes product adoption process smooth. It sells corporate ethos and builds up corporate identity. Advertising guides the consumers in his product choices. It gives the information about the product, the benefits it offers the availability and the price. Advertising is a philosopher also. it makes us aware of many socially relevant causes like dowry, energy conservation, loss prevention, social forestry etc. Advertising is thus a friend, philosopher and guide for the consumers. Advertising at times describes a product, at times narrates a story or an experience, at times educates a consumer. Indian Advertising In March 1980, the silver jubilee of the Advertising Club of Bombay was celebrated. An audio visual review workshop was arranged on 25 years of Indian advertising, and the dominant feeling at that time was one of self-congratulation

with a certain amount of introspection. Indian advertising has grown to its maturity and become very professional. We have advertising clubs in each of the major metropolitan cities and have as many as about five hundred advertising agencies vying with each other in wooing large accounts. The Advertising Club of Bombay is the Mecca of Indian advertising, contributing about 60 per cent of the total billing of the advertising industry. We have professional bodies, representing the three parties concerned with advertising, i.e., the advertiser, the advertising agency, and the media of advertising. The ISA the Indian Society of Advertisers is the sole representative body of advertisers. The AAAI the Advertising Agencies Association of India represents agencies in the industry which undertake advertising on behalf of advertisers. The INS the Indian Newspapers Society is the organization of newspapers, magazines and other publications. Similarly, broadcasting companies have organized under the banner of the Indian Broadcasting Society (IBS). Future of Advertising in India Advertising in India, the value of which amounts to Rs. 5000 crores per annum, is insignificant in comparison to its value in foreign countries. However, the trend today is more towards increasing the budget. Very soon, the volume of business in this field is expected to be impressive enough. With a larger volume of business, advertising will get more professionalized in terms of ad agency manpower and output, which at times seem to be a carbon copy of foreign ads. Ad agencies will rely more on marketing research to design an ad programme. Modeling and art studios will attain a professional excellence. There is going to be more social control of advertising, and professional associations will be going to be more active in enforcing a code

of conduct on their members. There are hardly any management institutes offering full-fledged training programmes in Advertising and its Management; but these have started appearing on the scene offering programmes in communication management. An All India Institute of Advertising will come up and will be a step in the right direction: Ad research, too, will be intensified. In India, TV is more popular as a medium because it reaches 70 per cent of the rural masses. It is wider and more effective in its coverage and goes well with the rural marketing inputs supplied by organizations of repute. Vernacular advertising, with local press and appeals compatible with Indian culture and subculture, will develop into an impressive profession in the years to come. IN brief, advertising in India, which came of age will grow in its dimensions in the next two decades. Advertising Budget Advertising expenditure decisions are often arbitrary and at times merely a guess. That is why we find gross inadequacy of funds at one extreme and wanton extravagance at the other. In other words, advertising expenditure requires good planning. Budgeting is a form of a plan and in the very nature of budgeting, the advertiser is protected from unbalanced situation highlighted above, wherein he may find that he has either spent more or less than he should have. While preparing the advertising budget, he is compelled to consider how much he will spend on each of his products or product-line, on each of his markets, on each of the advertising media, and on what time schedule during the year. Budgeting is a Plan Because the advertising budget is a plan for the companys future advertising, it can make a useful contribution to a profitable operation. It provides a programme of the best assortment of types of advertising to be undertaken along

with its timetable and frequency. In addition of its planning function, the budget also serves as a control of advertising expenditure. Advertising expenditure is no longer an expenditure; it is now widely considered to be an investment. More and more firms are now thinking of advertising as an investment because of the great returns that are likely to result in future from increased sales through advertising. Like any other investment in a capital asset, an effective advertising campaign may increase the future sales, though, in the concept of accounting, it is still considered to be a business expense. That advertising is a capital investment rather than a current expenditure. Advertising Budget Process Since advertising is an investment, it should be budgeted like any other investment. The preparation of an advertising budget generally determines the size of advertising expenditure. How much should be spent on advertising? To determine this is the purpose of the advertising budget. However, this is grossly misleading, for there is no scientific method of determining the size of any advertising budget. There are, indeed, no simple methods of preparing budgets. Only customary, arbitrary and conventional practices can be followed; but these do not make the process a budgeting? A budget is a forward plan of any activity expressed in terms of rupees, and budgeting is the process of this planning. Therefore, the advertising budget is the translation of an advertising plan into rupees; and this fact informs the top management of the amount of the proposed advertising expenditure and its appointment on the various advertising activities of the company. The advertising budget thus serves as a decision-making tool for the top management, in addition to its control function of such expenses. The optimum media schedule is the best programme of advertising chosen from among a large number of the alternatives available to an ad man. This fund allocation, of course, has to take into account the market potential within various

segments, the time period, and the geographical areas over which advertising will be spread in accordance with the overall advertising strategy. The advertising budget thus prepared by the advertising manager is finally presented to the top management through the chief of the marketing division for approval. During the execution of the budget, the advertising manager has to exercise monitoring control so that the funds that have been allocated may be spent in most economical manner. Moreover, whenever there are critical changes in the market, necessitating an adjustment in the advertising support, the necessary modifications should be effected in the advertising budget. This is why advertising budgets should be flexible and provision made for the contingency account to face up to the critical changes in the marketing environment. Many organizations consider advertising expenditure a part of their total sales expenses, and plan for advertising expenses accordingly, while others treat advertising a separate function in the organization. Percentage of sales method In the percentage of sales method, advertisers use one of the two things in arriving at how much to be spent on advertising. The first one is to select a factor or multiplier, such as 3, 5 or 7 per cent, then multiply this by the sales figures in rupees, and the sum so arrived at is the answer to the question of how much to spend. The other method of determining the advertising funds to be spent, depends upon the number of machines sold or units of product sold. Advertising Objective and Task Method The objective and task approach to advertising budget is based on establishing advertising objectives and the tasks to be accomplished, and then determining the required size of the budget. For example, a company decides to increase the awareness of its brand in a certain market segment to 50 per cent. The

approach takes into consideration the fact that advertising is an investment and a vehicle for achieving business objectives. It is not merely taken as the cost or as a result of sales, as it is the per cent of sales method. Little field and Kirkpatrick, in their book, Advertising Mass Communication in Marketing have defined the task approach as financing the objective and also as estimating the task to be done. They have pointed out that objectives are the advertisers long term marketing aims, whereas task is a short term undertaking, usually the next years sales goals. All you can afford: The what can be afforded method is yet another decision rule on which many firms base their advertising budgets, particulars firms with limited resources. When fund availability is constraint, a limited fund is only allocated after other unavoidable expenditures have been met. Competitive Parity Method Spend as much as the competitors do. The logic behind this is that the collective thinking of various firms in the industry cannot be too fit from the optimal figure. Here, advertising is taken as a defensive device and not an offensive tool to achieve marketing objectives. Advertisers want to spend as much as their competitors are spending so that they are not placed at any disadvantage. One such concept worth mentioning is the minimum job concept. To do a worthwhile job or to perform a task, a minimum amount of advertising is essential to make it successful. Some authors have suggested the empirical method, which is based on the trial-and-error method, for determining an optimum advertising budget. The method involves advertising at varying level of expenditure, employing the same medium and test cities to assess the sales results. After a number of such trials, one determines the most productive advertising expense

level. As long as market conditions are unchanged, such optimum advertising budget should be adopted. Types of Media The media are classified into two categories: Above the line media: Press, TV, outdoor, posters, cinema and radio. The recognized agencies get commission from these media. Below-the-line media: Those who do not give commission to the ad agency. The agency adds a percentage as a handling or profit charge or charge a service fee. The examples are: Direct mail, POS, merchandising exhibitions and sales literature. The following are the various categories of media available to a media buyer or an advertiser: I. Print Media: i) New media: a) Daily b) Weekly c) Sunday d) Weekend supplement ii) Magazines: a) Consumer magazines: General interest, special interest magazines like Auto World, Interim India b) Business Publications: Industrial publications, trade publications, institutional publications etc. c) Direct Advertising Direct mail II. Broadcast media:

i) ii) iii)

Radio: Vividh Bharti, FM Television: Terrestrial channels like DD and satellite channels like Star, Zee TV Narrow card media: Video and Cable TV, Cinema, Ad films

III. Outdoor media IV. Transit advertising media V. Other media a) Specialty media: T-shirts, buttons, caps, stickers and badges b) Direct advertising or direct marketing (DM) c) Internet: Media of the new millennium Media Selection The importance of advertising and its role as a powerful marketing tool need no further repetition, for this has been dealt with at great length in the introductory chapters. Promotion is one of the 4 Ps forming the marketing mix, and advertising is an important part of it. An advertising plan is based on an overall promotional strategy and media planning follows the advertising plan. Media strategy is thus a part of the marketing strategy. In other words, the media plan is part of the overall market plan and media selection is the last stage in the process of promotion through advertising. Media planning and media selection assume significance in the light of frequent reports that advertising is wasteful. One advertiser confessed: Half of my advertising is wasted. The problem is, I dont know which half. By following the correct methodology and using quantitative models in media planning, elimination of wasteful advertising can be achieved to a good extent. This is particularly true because, in the entire advertising cost, media charges are fairly substantial. The effectiveness of a well designed advertising message depends upon when and where it is released. These are time and place decisions.

In short, we may say that the success of advertising depends upon the right selection or media, the timely release of the advertisement message, its frequency and continuity and the place of in release. All this signifies media planning. Media Planning: New Perspective Consumer buying is on the decline. Ad spends are curtailed agencies are becoming learner. Clients are becoming more discerning about media usage. Though they are curing and budgets, they want more effectiveness. In common parlance, this is called more bang for the buck. Clients have become extremely vigilant on how agencies spend their money on media. Intuitive media decisions and exploratory tactics are out. Everything has to be substantiated. It is necessary to stretch every media rupee more and more. Though the broadcast mix is planned annually, media planners are continuously shuffling the actual vehicles they choose channels or programmes in case of TV and publications in case of print. Media Plan 1. The first step in media planning in the collection of useful information about the people or the market to be reached through advertising. The more detailed and specific the target market data available on geography, age group, sex, income, attitudes, interests etc., the more appropriate the media selected would be. However, it is well understood that the available advertising budget is an important guide a media selection. 2. The second significant step in media planning is to decide upon the nature of the message be conveyed to the target market. However, this decision necessarily follows a thorough understanding of the consumer profile. 3. Having gathered this significant information, the next logical step is to search for an ideal match of the audience characteristics of media with the target market profile and, at the same time, check for the perfect adaptability of the message [copy] requirement with the media.

4. Reach is expressed in terms of the number of households or individuals reached by a given medium over a period of time. This is usually expressed in terms of per cent of total households or individuals in the target market. Media Planning Process This process, as you will appreciate now, answers the questions; When (the timing of the release) Which (the media selection) How (the coordination in media planning) How much (the budgetary allocation) In short, this process designs a course of action that shows how advertising time and space will be used so as to contribute to the achievement of marketing objectives. Media plan is the end product of media planning process. The media objectives are set keeping in mind the background of the market, the firms marketing strategy and its creative strategy. Media objectives thus contribute to the overall attainment of marketing objectives. Media objectives lead us to a definite media strategy to translate media goals into general guidelines involving planners selection and sue of media. The best alternatives are selected. Designing a Media Plan After having explained some of these media concepts, we shall now discuss some strategic considerations in designing a media plan. The first and foremost is the consideration of the market and the target consumers. We have said earlier that the advertiser must have a full understanding of the target market. Such information is available from consumer research studies. The type of the products and services to be advertised also determine the

media to be selected. Industrial products and new products of a technical nature are advertised through the Purchase magazine. After the characteristics of the product come the characteristics of the distribution channel. Distribution outlets may be classified into national, regional and local. When advertising is done on a national basis, using adequate national media, the product should be made available nationally. When distribution is restricted to the regional level, advertising on the national basis would be mostly wasteful. In short, advertising would be of little or no value in getting the people to buy products unless these products are made available in an area which is within their easy reach. New products, when introduced, should be supported with advertising in media which can give exposure of the product to the audience as a sensational news with some degree of urgency. The cost of buying space or time I weighed against the number of audience secured by such advertising. In fact, buying advertising space or time is nothing different from buying commodities. The media ability is measured under the following heads: i) ii) iii) Distribution measurement: expressed in the number of copies circulated. Audience measurement: Expressed in terms of audience size, audience composition and the amount of audience exposure. Exposure measurement: The advertiser looks for the ability of the media to create advertising exposure. Once the media have produced the desired exposure, the quality of the message will determine the subsequent impact in terms of perception, communication and behavioral response

The standard method of expressing advertising cost in newspapers is rupees per line of standard dimensions. Matching Media and Market Advertisers must always attempt to match the profile of the target market with the demographic characteristics of a given mediums audience. Let us consider an example of cigarette advertising. The target market for this is men in the age group of 25 to 60 years. The advertiser would consider placing ads in magazines having a predominantly make readership. Media Strategy Media strategy defines and provides rationale for the recommended media. It is not a tactical plan. Four basic elements of media strategy statement are: (a) media mix, (b) usage of media, (c) geographic allocation and (d) Scheduling strategy. The Media Mix Media planning follows the adoption of one of the media strategies which forms part of the overall promotional strategy. Once the media selection is decided upon, the next logical step is to determine the combination of mix of the media one must use. This will be arrived at by considering the advertising companys marketing objectives, its target market, media characteristics, and its matching with the target market. Also, the overall advertising budget does influence the nature of such mix, in addition to the available gross audience. Some advertisers prefer to concentrate on one media type mix, whereas others like to have widely varied media mix. While the former offers the advertiser an opportunity to make a great impact on a specific market segment, the latter,

being an assortment of media, can deliver different messages about the same product to different market segments. Duplication refers to the number of prospects who are reached by more than one of the needs in a mix. Many executives who read Business India, for example, also read the Economic Times. These executives are counted in the circulation figures of both the publications. Gross audience refers to the total number of people exposed to all the forms of advertising and in a single campaign. This includes the audience for radio and television programmes, outdoor and transit displays, circulation figures of various publications, and the number of people who are trade shows. While designing a media mix, the advertiser should know the gross audience size often by each alternative campaign. This would help him to choose the mix that delivers the great number of exposure alternatives. Media Scheduling Media scheduling decision, that is, the scheduling and timing of advertisement. The schedule shows the number of advertisements that are to appear in each medium, the size of the advertisements, and the date on which they are to appear. There are many ways of scheduling any advertising programme. Normally, scheduling is done for a 4 week period. The six types of schedules available are: a) Steady pulse: It is easiest. For instance, one ad/week for 52 weeks or one ad/mouth for 12 months. b) Seasonal pulse: products like Vicks Balm, Glycodin Terp-Vasaka Syrup, Ponds Gold Cream follow this approach. c) Period pulse: Scheduling follows a regular pattern, e.g., media scheduling of consumer durables, non-durables etc. d) Erratic pulse: The ads are speed irregularly. Perhaps, we wait to change the typical purchase cycles.

e) Start up pulse: It is concerned media scheduling. It launches a new product or a new campaign. f) Promotional pulse: a one-shot affair is suits only a particular promotional theme. Heavy concentration during a period is the characteristic of this scheduling. For instance, financial advertising of companys issue. Print Media: Newspapers and Magazines Publication advertising uses newspapers or magazines to deliver the advertisement to its readers. Newspapers and magazines have two sources of incomes one from circulation and subscription, which may be referred to as circulation revenue, the second is advertising, circulation and subscription, which may be referred to as circulation revenue; the second is advertising revenue. Advertising revenue, which is substantial, is generated from the sale of space in the publication. About 50 to 60 per cent of the space is occupied by advertisements in a majority of publications. Each publication has its readership, which is influenced by its general image. The editorials, news and the entertainment offered by a publication form its general image. The better this image, the greater is the acceptance of the advertising message by a reader. However, advertisement effectiveness in a publication varies from reader to reader, from one advertisement to another, and from publication to publication. What is Copy? Copy, in its present day meaning, includes all the elements of an advertising message, whether printed or broadcast. In ads for the print media, it includes the heading, sub-heads, picture captions, slogans and body copy. It may even include trade marks, the company logo and mascot, borders and other

illustrations and visual symbols. In radio commercials, it includes sound effects and music, in addition to the words spoken in the ad messages. TV has the dimension of motion in addition to that of sight and sound; and therefore, the copy of TV commercials includes the words to be spoken b the characters in the script, plus music and sound effects as well as illustrative materials, actions and even camera cues. Visualisation and Layout Visualization is concerned with the creation of an idea which will appeal to the consumer or the target audience, whereas layout deals with the arrangement of various elements in the ad, such as headlines, illustrations, the firms name, the trade mark, the main text or the body copy. An arrangement of various elements is so made as to make the layout as effective as it is visualized. Therefore, it is logical to state that visualization must precede the layout design. Artists in an ad agency put the ad theme in a dramatic illustration so as to make it a more effective presentation, and the layout designers add their skill to make the final ad copy very appealing to the audience. These are two ways to effective visualization: scene setting and word painting. In the five familiar sounds or comments are created which will produce the intended scenes in the minds of the listeners. Word painting, however, is the subtle and exacting art of using those words in the copy which can create the desired mental images. How to write ad copy? As explained in the foregoing paragraphs, advertising creativity is a disciplined one and aims at achieving the clients objective of increased sales. It has been said that certain checks are placed on the free expression of creativity communication checks, audience checks, media checks etc. a copywriter, therefore, has necessarily to go through the following steps before actually putting on paperthe words for the ad or commercial.

In addition to the USP concept, a knowledge of the six stages of the hierarchy of effects model of Levidge and Steiner is very relevant to copywriting. Advertising has been often called salesmanship in print or broadcasting media. These six stages of the model are: awareness, knowledge, liking, preference, conviction and purchase. The ad copy should provide information and facts about a product or service in the first top stages; it should aim at changing attitudes and feelings or directing the desire to buy products. Copy of Ads in Print: The most important copy element is the headline ideal. If the headline ideal fails to attract the prospect to the message and the product, the remaining parts of the ad are wasted. The ad copy may be a word-message, or it may have pictures with a short message or a slogan. The sub-heads. If the headline has already rightly suggested the products value to the consumers, the job of the sub-head is easier. Sub-heads should further carry the idea of theme and should help readers to have more knowledge of the product and services, for they (sub-heads) generally expand or amplify the headline idea. Body copy. It stimulated liking and preferences for a product, it systematically develops the benefits and promise offered by the product, explains, logically and rationally, product attributes, features and product values, and gives convincing arguments in favors of, and evidence in support of, the claims made about the superiority of the advertised product. Advertising copy is not literary copy. Quite the contrary, said on eauthor. The copywriter must know all the facts about the attributes of the product, including facts about competitive products, and only when he is fully armed with such facts that he is ready to match his ad message with the real wants and needs of the target consumers. Headlines in Ad Copies

Headline is the most crucial part of an advertising. Basically, it is used to arrest attention and to create interest. It should go beyond being catchy or sloganising. It has, really, speaking, a lot to contribute to the style and mood of an advertisement. Characteristics of Good Slogan 1. The slogan is simple and straight-forward. It is pleasant too. 2. It carries some pleasing sales idea 3. It conveys more in a compact form 4. Good slogans finish the job in 7-8 words 5. So many ideas give rise to one good slogan Writing slogans is a challenging and creative task. Slogans put flesh and blood into an advertisement copy. A fresh slogan is well-accepted when repeated for several times. One simple method of creative problem solving is to restate the problem in as many ways as possible. Slogans value depends on what it makes the readers to understand. Good slogans are idea-centred, rather than wordcentred. Slogans re intended to be convincing clinchers in favors of the company or the brand. Slogans try to be statements packed with meaning, but to what extent do they become meaningful depends on many factors. Different Types of Copy Copywriting is one major task in the creation of an advertisement. Copies can be written in several forms, of which the following are illustrations. Scientific copy: In this copy, the technical specifications of a product are explained. The merits of the product are described in scientific terms. Descriptive copy: In a non-technical manner, the product attributes are described. The copy used direct active sentences. There are short and pithy sentences. It looks very common-place announcement. For example, Milly from Marlex is a flour mill for the kitchen. The copy describes it as follows: Designed along modern, sleek lines to win your heart.

No more waiting for hours at dusty flour mills. No adulteration Grinds all kinds of cereals, dals, pulses, masalas etc Runs at very economical cost. Colloquial copy: Here informal conversational language is used to convey the message. It could even become a dialogue. In many TV advertisements, we find the colloquial copy. Humorous copy: Humour has been heavily used in advertising-especially in TV commercials. It is just as heavily suspect. But effective humour makes the advertisement noticeable. Conclusion This be clearly understood that writing as ad is very different from writing a letter, an editorial or an article for a magazine. Advertising writing requires more than an understanding of the techniques involved in it. It requires practice and openness to constructive criticism. ADVERTISING OBJECTIVES FUNCTION OF OBJECTIVES Objectives serve several functions in modern management. One function is to operate as communication and coordination devices. They provide a vehicle by which the client, the agency account executive, and the creative team communicate. They also serve to coordinate the efforts of such groups as copywriters, radio specialists, media buyers, and research specialists. A second function of objectives is to provide a criterion for decision making. If two alternative campaigns are generated, one must be selected. Sales As an Objective Advertising objectives, like organizational objectives, should be operational. They should be effective criteria for decision making and should provide standards with which results can be compared. Furthermore, they should

be effective communication tools, providing a line between strategic and tactical decisions. A convenient and enticing advertising objective involves a construct like immediate sales or market share. The measure is usually readily available to evaluate the results of a campaign. THE DAGMAR APPROACH The approach to setting advertising objectives just outlined will be expanded on in the next seven chapters and in the balance of the book. Research findings, constructs, and measurement tools will be developed that will serve to make the approach effective and operational. In this section of this chapter, the historical foundations for our approach to setting advertising objectives will be presented. It provides a rationale and basis for the introducing of advertising response measures in advertising objectives and for the concept of measuring such objectives over time. There are several reasons for this diversion. First, the historical roots of the approach are not only interesting but provide a deeper understanding of thrust and scope. Second they provide suggestions on implementation that are still useful and valid. The DAGMAR approach can be summarized in its succinct statement defining an advertising goal. An advertising goal is a specific communication task, to be accomplished among a defined audience, In a given period of time. Note that a communication task is involved as opposed to a marketing task and that the goal is specific, involving an unambiguously defined task, among a defined audience, in a given time period. A communication Task An advertising objective involves a communication task, something that advertising, by itself, can reasonably hope to accomplish. It is recognized that advertising is mass, paid communication that is extended to create awareness, impart information, develop attitudes, or induce action.

In the DAGMAR approach, the communication task is based on a specific model of the communication process. The initial communication task of the brand is to increase consumer awareness of the brand-to advance the brand one step up the hierarchy. The second step of the communication process is brand comprehension and involves the audience member learning something about the brand. What are its specific characteristics and appeals, including associated imagery and feelings? In what way does it differ from its competitors? Whom is it supposed to benefit? The third step is the attitude (or conviction) step and intervenes between comprehension and final action. The action phase involves some over move on the part of the buyer, such as trying a brand for the first time, visiting a showroom, or requesting information. DAGMAR model, which implies that the audience member will sequentially pass through a set of steps, is termed a hierarchy-of-effects model. A host of hierarchy models have been proposed. The AIDA model, developed in the 1920s, suggested that an effective personal sales presentation should attract Attention, gain Interest, create a Desire, and precipitate Action. The new adopter hierarchy model, conceived by rural sociologists, postulated five stages: awareness, interest, evaluation, trail, and adoption. Advertising objective The advertising objective was to induce immediate action. The brand name and product advantages are already well known through consistent and effective advertising. Advertisings task, at this particular stage, was to persuade homemakers to visit dealers showrooms and see a demonstration. A special ice cube tray was offered as an added inducement. Advertising Goal

The specific advertising goal was to persuade 400,00 homemakers to visit 10,000 dealers in four weeks, yielding an average of forty prospects who will physically cross the threshold of each dealers showroom. Results were measured in several different dimensions. The medium used was sponsorship of special audience telecasts. The results two telecasts drew a combined audience of 84 million people. Approximately 18 percent, or 15 million people, could play black the commercial messages. Nearly one-half million took immediate action by walking into a dealers showroom and purchasing the special offer. Advertising accomplished its assigned task by inducing consumers to visit the dealers showroom. It is true that dealers sold a large volume of appliances during the special promotion. But advertising cannot claim all the credit since it was only one factor in the consummation of the sale. However, further research indicated that 44 percent of the people who bought a refrigerator gave advertising as the major factor in choice of brand. GLOBAL MARKETING AND ADVERTISING THE GLOBALIZATION OF MARKETS 1. First, the consumer and business markets in North America, western Europe, and Japan-while still very big in size-have begun to show signs of slower growth, as their rates of annual population and household growth slow down to 2 or 3 percentage points per year. 2. Second, while the mature markets of North America, Western Europe, and Japan are becoming ever more price-competitive (and less profitable) for major brands, with an increasing number of consumers preferring to buy cheaper private (store) label brands, consumers in the rapidly developing markets of Asia (and elsewhere) are showing a voracious appetite for branded goods, which often serve a need to reflect rapidly changing social aspirations. Thus Western companies are finding sales in the newly growing markets of the world to be both easier and more profitable.

3. Third, the crumbling of political, economic, and customs barriers in the last few years has made it much easier for companies to operate in a truly global manner, instead of merely multinationally or ina multidomestic manner. 4. Fourth, the growth of global media has led both to the increasing homogenization of consumer tastes across the world, and to the increasing use of standardized or global advertising campaigns which can be seen simultaneously in many different countries. There is no doubt that global marketing and advertising are becoming very important today because major companies and brands have begun to see the need to grow in countries outside their traditional domestic bases, and because the globalization of markets, media, and consumer tastes is beginning to allow for the production, marketing and advertising of brands on a truly global basis. Finally, advertising agencies (such as Saatchi & Saatichi, the WPP group, and the Interpublic group) themselves have, since the early 1980s begun to form global networks and alliances (see chapter 1). They did this is part because their increasingly global clients began to seek global servicing capabilities, and in part because they wished to gain a larger share of the fast growth in advertising revenues outside the United States and western Europe. GLOBAL PRODUCTION AND MARKETING THE ARGUMENT FOR GLOBALIZATION A key business advantage enjoyed by companies that operate with a global strategy is that they can enjoy operating economies of scale. This means that by having larger volumes of the same product manufactured and sold over a larger market area, such a global company can produce and market them at a lower cost per unit than a smaller-scale competitor. These economies of scale can come in production and packaging costs, in research and development costs, and in marketing costs, among others. Packaging costs can often be cut by having one standardized package carrying multilingual packaging information this if often done for products sold in western Europe.

In addition, because it sells essentially the same product in multiple countries, a global company can invest far more resources in research and development than smaller local competitors, because its R&D expenses can be amortized over its much larger global sales volume. Finally, if the same product can be marketed in the same way in many countries, a global company can potentially leverage the same investment in packaging, market research, and advertising development and production costs over all of these markets, instead of incurring these expenses afresh in each of these markets. PERSISTING CULTURAL DIFFERNCES THE ARGUMENT FOR LOCALIZATION Counteracting these potential savings, of course, is the reality that consumers in every country are still somewhat different from each other, with different habits, tastes, and preferences, so that the product or brand that works in one market may not work in another. For example, while American like to drink orange juice for breakfast, French consumers dont and while Middle Easterners prefer toothpaste that tastes spicy, this taste may not work well in other markets! Global marketer McDonalds finds it has to vary its menu in different countries-serving beer in Germany, wine in France, and milkshakes flavored with local fruits in Singapore and Malaysia, for example. The business literature is full of stories of disastrous mistakes made by international marketers who failed to understand local consumer differences-such as Pepsodent toothpaste trying to use a teeth-whitening appeal in parts of Asia, where dark-stained teeth were considered prestigious. People living in different countries often belong to different cultures, and cultures may even vary widely within a large and multiethnic country (such as India). Every culture is a complex web of social relations, religious beliefs, languages, and consumption attitudes and habits, all of which will obviously impact on how communications are delivered and received. It is commonly accepted that certain product categories, such as food and beverages, have a very high degree of cultural grounding, where such cultural

differences make global standardization more difficult than in other categories. Even if the product category is not so culturally grounded, such as personal computers or industrial products, various types of differences still persist across markets. Media availability and distribution arrangements are often very different Government regulations vary. Finally, marketing and advertising campaigns that are standardized so that they can be used in multiple markets, if not the whole world, have the obvious disadvantage that they may be aimed at the lowest common denominator and may end up not appealing strongly enough to any particular market. CROSS-NATIONAL DIFFERENCES IN CULTURE AND CONSUMER BEHAVIOR Since advertising attempts to communicate the literal and symbolic meaning attached to a brand, and since cultures differ in the ways in which they construe and communicate meaning, successful advertising obviously requires a thorough understanding of the culture within which that advertising message is communicated. Thus, even if a foreign advertiser were to create an advertising message for a local market entirely from scratch-a strategy of localizing the advertising message-the task would be hard, and it would be easy to make cultural blunders. Obviously, the task, of standardizing the advertising message so that it can be used unchanged worldwide is even harder, for now one has to find a message that is equally effective in all these multiple cultures at the same time. Similarly, women the world over are seeking more actively to participate in workplace success and identify less closely than before with the traditional female roles of mother/nurturer and wife/homemaker. Thus, although very important differences still undoubtedly persist, there can be no doubt that consumers the world over are becoming more alike each other. Global marketers and ad agenciessuch as Coca-Cola or McCann-Erickson-seek to monitor and understand these global trends very closely, in order to better market and advertise their brands on a global basis.

It should be noted, by way of warning that it is entirely possible that the trend towards more homogenous brand preferences we are seeing is not one of true globalization but rather simply one of the increasing popularity in the rapidly developing parts of the world (such as China, India, South America, and Eastern Europe) of the brands and cultural symbols that imply a larger-than-life western of even American lifestyle-such as Coca-Cola, Marlboro cigarettes. Increase in demand across the world for certain well-known brands such as Coca-Cola and Levis is largely because they are seen by consumers in many newly opened markets as symbols of the freedom and affluent lifestyles of the West, and not because they are seen as global brands per se. Simply being a global brand may not always be important; what is more likely to be important is what the brand stands for around the globe, such as high technology (examples: Sony, Kodak), or prestige (Rolex, Mercedes, Gucci, Lacoste). GLOBAL CONSUMER SEGMENTS Many researches, companies and advertising agencies have conducted research to find out if such global segments can be identified using psychographic research. SEEKING A BALANCE PLANNING GLOBALLY BUT ACTING LOCALLY Not surprisingly, the solution to this global-versus-local dilemma is to modify products just enough in local markets to make them stron competitors in those local markets, but to maintain whatever uniformity is possible across multiple markets to allow for some of the potential global economies of scale to be realized. This is often called a strategy of globalization, or planning globally but acting locally. No matter what he exact strategy followed, it is vital that the global marketing program make sufficient use of prior research about acceptability in other countries of marketing practices in another, and allow the local subsidiary managers adequate input into the tailoring of marketing programs for their countries. GLOBAL BRANDING AND POSITIONING

Building a global brand is obviously an extremely challenging task. Obviously, the general principles of brand-building in any one country apply, such as creating strong brand awareness and strong, positive, and consistent brand associations, and a strong visual brand identity, such as an logo or symbol (see chapter 8 for some details). Advertising plays a major (but not exclusive) role in these, as it does in establishing the brands reputation for high and consistent quality, another key component of building a brands equity, For a brand that seeks to be global, however, an additional requirement is a certain core consistency of brand imagery worldwide- but one that still works locally in each market. Alvin Schechter, chairman and chief executive of the Schechter Group, a New York design consultancy, points out that it may be global marketing but its (still) received locally. Brands strong in one country (such as the U.S) that seek to become global must first find out what equalities the brand has in its home country, determine through research which of these are transferable to the new target countries, and then find out how they can best be leveraged and communicated in that new market. Many discover that not all the equities that are strong in the home country can be leveraged in other markets. Ford, Chrysler, Kraft, and American Airlines, for example, have much stronger brand equity in the U.S than in the U.K. Brands going global also face the special challenges of obtaining access to distribution and to raw materials and other resources, access taken for granted n the home market. Indeed, many global marketers seeking to enter new markets choose acquisitions of existing local brands, or joint ventures with them, as the most efficient ways to gain such access, instead of simply extending their existing brands into the new market. Once such a strong brand identity has been established, great care has to be taken to protect the brand against trade mark infringement of all of the brands various equities (name, logo, packaging design, and colors, etc). Such intellectual property rights are not legislated and/or enforced with equal vigor in different parts of the

world, and a global marketer must be especially vigilant to protect these rights, for they form the essence of the asset we have called the global brand.