Advertising

INTRODUCTION
Advertising is a form of marketing communication used to persuade an audience to take
or continue some action, usually with respect to a commercial offering, or political or
ideological support.
Advertising is the best way to communicate to the customers. Advertising helps informs
the customers about the brands available in the market and the variety of products useful
to them. Advertising is for everybody including kids, young and old. It is done using
various media types, with different techniques and methods most suited.
In Latin, ad vertere means "to turn toward". The purpose of advertising may also be to
reassure employees or shareholders that a company is viable or successful. Advertising
messages are usually paid for by sponsors and viewed via various old media; including
mass

media

such

as

newspaper, magazines,

television

advertisement,

radio

advertisement, outdoor advertising or direct mail; or new media such as blogs, websites
or text messages.

Commercial

advertisers

often

seek

to

generate

increased consumption of

their products or services through "branding", which involves associating a product name
1

Advertising

or image with certain qualities in the minds of consumers. Non-commercial advertisers

who spend money to advertise items other than a consumer product or service include
political parties, interest groups, religious organizations and governmental agencies.
Nonprofit organizations may rely on free modes of persuasion, such as a public service
announcement (PSA).
Modern advertising was created with the innovative techniques introduced with tobacco
advertising in the 1920s, most significantly with the campaigns of Edward Bernays,
which is often considered the founder of modern, Madison Avenue advertising.
In 2010, spending on advertising was estimated at $143 billion in the United States and
$467 billion worldwide.

INTERNATIONAL ADVERTISING
International Advertising, generally speaking, is the promotion of goods, services,
companies and ideas, usually in more than one country performed by an identified
sponsor. Marketers see advertising as part of an overall promotional strategy. Other
components of the promotional mix include publicity, public relations, personal selling,
and sales promotion. Advertising is a cogent communication attempt to change or
reinforce ones' prior attitude that is predictable of future behavior.

Advertising

It can be viewed as a communication process that takes place in multiple cultures that
differ in terms of values, communication styles, and consumption patterns. It is also a
business activity involving advertisers and the advertising agencies that create ads and
buy media in different countries. The sum total of these activities constitutes a worldwide
industry that is growing in importance. International advertising is also a major force that
both reflects social values, and propagates certain values worldwide.
International advertising involves recognizing that people all over the world have
different needs. Companies like Gillette, Coca-Cola, BIC, and Cadbury Schweppes have
brands that are recognized across the globe. While many of the products that these
businesses sell are targeted at a global audience using a consistent marketing mix, it is
also necessary to understand the regional differences, hence it is important to understand
the importance of international marketing. Organizations must accept that differences in
values, customs, languages and currencies will mean that some products will only suit
certain countries and that as well as there being global markets e.g. for BIC and Gillette
razors, and for Coca-Cola drinks, there are important regional differences for example
advertising in China and India need to focus on local languages. Just as the marketing
environment has to be assessed at home, the overseas potential of markets has to be
carefully scrutinized. Finding relevant information takes longer because of the
unfamiliarity of some locations. The potential market size, degree and type of
competition, price, promotional differences, product differences as well as barriers to
trade have to be analyzed in order to advertise our product effectively in different
countries
International advertising entails dissemination of a commercial message to target
audiences in more than one country. Target audiences differ from country to country in
terms of how they perceive or interpret symbols or stimuli, respond to humor or
emotional appeals, as well as in levels of literacy and languages spoken. How the
advertising function is organized also varies. In some cases, multinational firms centralize
3

Advertising

advertising decisions and budgets and use the same or a limited number of agencies
worldwide. In other cases, budgets are decentralized and placed in the hands of local
subsidiaries,

resulting

in

greater

use

of

local

advertising

agencies.

International advertising can, therefore, be viewed as a communication process that takes

place in multiple cultures that differ in terms of values, communication styles, and
consumption patterns. International advertising is also a business activity involving
advertisers and the advertising agencies that create ads and buy media in different
countries. The sum total of these activities constitutes a worldwide industry that is
growing in importance. International advertising is also a major force that both reflects
social values, and propagates certain values worldwide.
International Marketing: A Global Marketplace

Trade

is

increasingly

global

in

scope

today.

There

are

several

reasons

for this. One significant reason is technologicalbecause of improvedtransportation and

communication opportunities today, trade is now more practical. Thus, consumers and
businesses now have access to the very best products from many different countries.
Increasingly rapid technology life cycles also increases the competition among countries
as to who can produce the newest in technology. In part to accommodate these realities,
countries in the last several decades have taken increasing steps to promote global trade
through

agreements

such

as

the

General

Treaty

on

Trade

andTariffs, and trade organizations such as the World Trade Organization (WTO), North
American Free Trade Agreement (NAFTA), and the European Union (EU).
Some forces in international trade:
Trade between countries is beneficial because these countries differ in their relative
economic strengthssome have more advanced technology and some have lower costs.
Products tend to be adopted more quickly in the United States and Japan, for example, so
4

Advertising

once the demand for a product (say, VCRs) is in the decline in these markets, an
increasing market potential might exist in other countries.
Internalization/transaction costs refers to the fact that developing certain very large scale
projects, such as an automobile intended for the World market, may entail such large
costs that these must be spread over several countries.

Historical Milestones in Advertising

Advertising goes back to the very beginnings of recorded history. Archaeologists working
in

the

countries

around

the

Mediterranean

Sea

have

dug up signs announcing various events and offers. An early form of advertising was the
town crier. Another early advertising form was the mark that trades people placed on their
goods, such as pottery. As the persons reputation spread by word of mouth, buyers began
to look for his special mark, just as trademarks and brand names are used today. As
production became more centralized and markets became more distant, the mark became
more important. The turning point in the history of advertising came in the year 1450
when Johann Gutenberg invented the printing press. Advertising no longer had to produce
extra

copies

of

sign

by

hand.

The

first

printedadvertisement in the English language appeared in 1478. In 1622, advertising got a

big boost with the launching of the first English newspaper, The Weekly News.
Advertising had its greatest growth in the United States. Ben Franklin has been called the
father of American advertising because his Gazette, first published in 1729, had the
largest circulation and advertising volume of any paper in colonial America. The
invention of radio and, later, television created two more amazing media for the spread of
advertising.

Advertising

Advertising's Two Important Virtues

You have complete control. Unlike public relations efforts, youdetermine exactly
where, when and how often your message will appear, how it will look, and what
it will say. You can target your audience more readily and aim at very specific
geographic areas.
You can be consistent, presenting your company's image and sales message
repeatedly to build awareness and trust. A distinctive identity will eventually
become clearly associated with your company, like McDonald's golden arches.
Customers will recognize you quickly and easily - in ads, mailers, packaging or
signs - if you present yourself consistently.

What Advertising Can Do For Your Business

Remind customers and prospects about the benefits of your product or service
Establish and maintain your distinct identity
Enhance your reputation
Encourage existing customers to buy more of what you sell
Attract new customers and replace lost ones
Slowly build sales to boost your bottom line
Promote business to customers, investors

Advertising

Classification of Advertising
Advertising is the promotion of a companys products and services though different
mediums to increase the sales of the product and services. It works by making the
customer aware of the product and by focusing on customers need to buy the product.
Globally, advertising has become an essential part of the corporate world. Therefore,
companies allot a huge part of their revenues to the advertising budget. Advertising also
serves to build a brand of the product which goes a long way to make effective sales.
There are several branches or types of advertising which can be used by the
companies

Classification of Advertising
1. Print Advertising - The print media has been used for advertising since long. The
newspapers and magazines are quite popular modes of advertising for different
companies all over the world. Using the print media, the companies can also
promote their products through brochures and fliers. The newspaper and
magazines sell the advertising space and the cost depends on several factors. The
quantity of space, the page of the publication, and the type of paper decide the cost
7

Advertising

of the advertisement. So an ad on the front page would be costlier than on inside

pages. Similarly an ad in the glossy supplement of the paper would be more
expensive than in a mediocre quality paper.
2. Broadcast Advertising - This type of advertising is very popular all around the
world. It consists of television, radio, or Internet advertising. The ads on the
television have a large audience and are very popular. The cost of the
advertisement depends on the length of the ad and the time at which the ad would
be appearing. For example, the prime time ads would be more costly than the
regular ones. Radio advertising is not what it used to be after the advent of
television and Internet, but still there is specific audience for the radio ads too. The
radio jingles are quite popular in sections of society and help to sell the products.
3. Outdoor Advertising - Outdoor advertising makes use of different tools to gain
customers attention. The billboards, kiosks, and events and tradeshows are an
effective way to convey the message of the company. The billboards are present all
around the city but the content should be such that it attracts the attention of the
customer. The kiosks are an easy outlet of the products and serve as information
outlets for the people too. Organizing events such as trade fairs and exhibitions for
promotion of the product or service also in a way advertises the product.
Therefore, outdoor advertising is an effective advertising tool.
4. Covert Advertising - This is a unique way of advertising in which the product or
the message is subtly included in a movie or TV serial. There is no actual ad, just
the mention of the product in the movie. For example, Tom Cruise used the Nokia
phone in the movie Minority Report.
5. Public Service Advertising - As evident from the title itself, such advertising is
for the public causes. There are a host of important matters such as AIDS, political
integrity, energy conservation, illiteracy, poverty and so on all of which need more
awareness as far as general public is concerned. This type of advertising has
gained much importance in recent times and is an effective tool to convey the
message.

Advertising

Objectives of Advertising
Four main Objectives of advertising are:

Trial
Continuity
Brand switch
Switching back

Trial: the companies which are in their introduction stage generally work for this
objective. The trial objective is the one which involves convincing the customers to buy
the new product introduced in the market. Here, the advertisers use flashy and attractive
ads to make customers take a look on the products and purchase for trials.
Continuity: this objective is concerned about keeping the existing customers to stick on
to the product. The advertisers here generally keep on bringing something new in the
product and the advertisement so that the existing customers keep buying their products.
Brand switch: this objective is basically for those companies who want to attract the
customers of the competitors. Here, the advertisers try to convince the customers to
switch from the existing brand they are using to their product.
Switching back: this objective is for the companies who want their previous customers
back, who have switched to their competitors. The advertisers use different ways to
attract the customers back like discount sale, new advertise, some reworking done on
packaging, etc.
Basically, advertising is a very artistic way of communicating with the customers. The
main characteristics one should have to get on their objectives are great communication
skills and very good convincing power.

Importance of Advertising
9

Advertising

Advertising plays a very important role in todays age of competition. Advertising is one
thing which has become a necessity for everybody in todays day to day life, be it the
producer, the traders, or the customer. Advertising is an important part. Lets have a look
on how and where is advertising important:

1. Advertising is important for the customers

Just imagine television or a newspaper or a radio channel without an advertisement! No,
no one can any day imagine this. Advertising plays a very important role in customers
life. Customers are the people who buy the product only after they are made aware of the
products available in the market. If the product is not advertised, no customer will come
to know what products are available and will not buy the product even if the product was
for their benefit. One more thing is that advertising helps people find the best products for
themselves, their kids, and their family. When they come to know about the range of
products, they are able to compare the products and buy so that they get what they desire
after spending their valuable money. Thus, advertising is important for the customers.
2. Advertising is important for the seller and companies producing the products
Advertising plays very important role for the producers and the sellers of the products,
because 10

Advertising

a. Advertising helps increasing sales

b. Advertising helps producers or the companies to know their competitors and plan
accordingly to meet up the level of competition.
c. If any company wants to introduce or launch a new product in the market,
advertising will make a ground for the product. Advertising helps making people
aware of the new product so that the consumers come and try the product.
d. Advertising helps creating goodwill for the company and gains customer loyalty
after reaching a mature age.
e. The demand for the product keeps on coming with the help of advertising and
demand and supply become a never ending process.
3. Advertising is important for the society
Advertising helps educating people. There are some social issues also which advertising
deals with like child labour, liquor consumption, girl child killing, smoking, family
planning education, etc. thus, advertising plays a very important role in society.

11

Advertising

Advantages of Global Advertising

Global branding and advertising can help you market your product or service in many
different countries around the world. Although global branding and advertising have
historically required large budgets, emerging communication techniques such as social
media can make global campaigns affordable for companies of all sizes.

1. Consistent
Creating a global branding and advertising program enables you to communicate
consistent messages to customers in all your export markets. Consumers now receive
marketing messages from a huge number of different sources, so delivering a consistent
message is the most effective way to reach consumers, according to Bloomberg Business
Week.

2. Risk
You can reduce the risk in developing a global campaign by building on branding and
advertising strategies that deliver successful results in your domestic market. Building an
existing brand progressively, market by market, is the safest and most cost-effective way
to create a global brand.

3. Localization
While consistency is important, your global branding and advertising program does not
need to communicate exactly the same message to each local market. It's important to
understand and respect the language, cultural and business differences in individual
territories by adapting your communications to meet local preferences -- a process called
localization.

4. Leadership
12

Advertising

You can build on the benefits of a global brand by utilizing an approach known as brand
leadership. This means defining the important elements of your brand, but using a
flexible approach and customizing communications for local markets. To ensure success,
you need to monitor the success of the campaign in each market with the aim of
establishing brand leadership across all key territories.

5. Management
Running a consistent global branding and advertising program reduces the cost and
complexity of managing your campaigns. Some multinational companies employ
different advertising and marketing agencies for each territory. If each agency creates a
different campaign for the local market, costs can rise rapidly because of the duplication
of effort. By developing a single global branding and advertising strategy, you can reduce
the number of agencies you use and eliminate duplicate costs.

6. Media
The changing pattern of media makes it easier to develop affordable global campaigns,
according to Bloomberg Business Week. Global advertising campaigns of the early 2000s
relied heavily on mainstream television and press advertising. The emergence of social
media and the importance of Web search mean that you can now focus on placing your
messages in media that consumers prefer. When consumers in different countries search
the Web, they receive the same consistent branding message from your website wherever
they are located.
7. INTERNATIONAL ADVERTISING HELPS IN-

Remind customers and prospects about the benefits of your product or service
Establish and maintain your distinct identity
Enhance your reputation
Encourage existing customers to buy more of what you sell
Attract new customers and replace lost ones
Slowly build sales to boost your bottom line
13

Advertising

Promote business to customers, investors

BARRIERS OF INTERNATIONAL ADVERTISING

1. CULTURE

Culture is a problematic issue for many advertisers since it is inherently nebulous and
often difficult to understand. One may violate the cultural norms of another country
without being informed of this, and people from different cultures may feel
uncomfortable in each other's presence without knowing exactly why. Communication is
more difficult because cultural factors largely determine the way various phenomena are
perceived. If the perceptual framework is different, perception of the message itself
differs.
It is a well known fact that the culture of a country influences the customer preferences.
Customers are quite sensitive about cultural aspects depicted in advertisements.
Advertising themes, incorporating social acceptance, mutual dependence, respect for
elders, harmony with nature, use of seasons, innovation and novelty, distinctive use of
celebrities. Some of the advertising blunders in international marketing are:
Procter and Gamble showed an animated stork delivering Pampers diapers in its ad
campaigns in the US. The same ad copy was used in Japan, only the language was
changed. However, this ad did not worked in Japan. The subsequent market research
revealed that, unlike the western folklore, storks, according to the Japanese folklore, are
not expected to deliver babies. On the contrary, Japanese people believe that it is the giant
peaches that float on a river that bring babies to the deserving parents. Subsequently,
Procter & Gamble changed the theme of the ad campaign to expert mom, a nurse who
is also a mother theme.
Muhammad Ali is immensely popular in the Middle East. One of the car manufacturers
used Muhammad Ali in its ad campaign for the region. The ad theme was, I am the
greatest'. The ad backfired and offended the Muslims who regard only the God was great.
14

Advertising

2. LANGUAGE

Translation from one language to another language is crucial in international advertising.

The literal translation may fail to convey the desired message across the countries due to
cultural factors. For instance the word yes means in low context in USA and Europe and
in Japan it means I am listening to what are you saying, in Thailand it means Ok. So there
is a difference in the language of different countries. Some instances of the translation
blunders in international advertisement are as follows:
Pepsi used the German translation of the slogan come alive with Pepsi' in its ad
campaign in West Germany. However, the slogan when translated in German actually
meant come out of the grave with Pepsi' and failed to generate any market response from
the customers.
General Motors translated its slogan Body by Fisher' to Corps by Fisher' in Belgium
that offended many Belgium customers.
3. EDUCATION

The level of literacy plays an important role in deciding what advertisement tool and
message should be used in international market. Market segments with lower level of
adult literacy need to be addressed by way of more audio visual content rather than a
written message. It should be ensured that the visuals convey the desired message rather
than the text part of the advertisement.
4. GOVERNMENT REGULATIONS

The regulatory framework of a country influences the advertisement strategy in

international market. The government regulations in the following country relate to
following issues:

Advertisement in foreign language.

Use of sensuality
Comparative advertising referring to the competing product from rival firms
Use of children as models
15

Advertising

Advertisement related to alcohol and tobacco

Advertisement related to health and pharmaceuticals
Some of the various regulations in various countries are:
In Malaysia the Ministry of Information advertising code states that women should
not be a principal object of an advertisement and should not be used to attract sales

unless the advertisement product is relevant to women.

The Ministry of Information in Saudi Arabia prohibits any advertisement depicting
unveiled woman.
Use of foreign words and expression when French equivalents can be used are
prohibited in France.
Portuguese law prohibits sex discrimination or the subordination or objectification
of women in advertising.
Norway prohibits any advertising that portrays men or women in an offensive
manner or implies any derogatory judgment of either sex.
Most Arab countries prohibit explicit depiction of sensuality.
5. MEDIA LIMITATION

Media may diminish the role of advertising in the promotional program and may force
the marketers to emphasis the other elements of promotional mix. A marketer's creativity
is certainly challenged when a television commercial is limited to 10 showing a year with
no two exposures closer than 10 days. In some African countries advertisers run boats up
and down the rivers playing popular music and broadcasting commercial into the bush as
they travel.

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Advertising

Advertising Plan
The

manager

needs

to

engage

in

situation

analysis

with

respect to

the

market conditions that are operating at the time and to assess theconsumer/market, compe
titive, facilitating agency, and social legal, and global factors that will affect decision
making and the development of the plan. It is vital that the advertising plan be developed
so as to mesh with and support the various components of the marketing and
communication mix such as personal selling, pricing, public relation and promotion. The
advertising manager also needs to know the major areas of her planning and decision
making responsibilities.

C
n
d
a
o

o
s i
e r
ti
n

M e s s a
g e
S tra te
g y &
Ta c t ic s
O b je c t i
v e &
Ta r g e t
S e le c t i
o n

17

M e d ia
S tra te
g y &
A D V
Ta c t ic s
E R T I
S IN
G
P L A
N

Advertising

There are four areas of major importance to prepare advertising plan:

Objective and Target Selection,

Consideration,
Message Strategy and Tactics,
Media Strategy and Tactics.

This includes the following analysis;

Consumer and Market Analysis:

A situation analysis often begins by looking at the aggregate market for the product,
service, or cause being advertised: the size of the market, its growth rate, seasonality,
geographical

distribution;

the

possible

existence

of different segments; and trends in all of these aggregate marketcharacteristics.

Competitive Analysis:
Advertising planning and decision-making are heavily affected bycompetition

and

the

competitive situation the advertiser faces. Competition is such a pervasive factor that it
will occur as a consideration in all phases of the advertising planning and decisionmaking process. A type of marketstructure analysis that involves the development of
perceptual maps of a market, for example, attempts to locate the relative perceptual
positions of competitive brands. Situation analysis should usually include an analysis of
what current share the brand now has, what shares its competitors have, trends in these
shares, reasons for these trends, what share of a market is possible for the brand, and
from

which

competitors

an

increase

in

share

The planner also has to be aware of the relative strengths and weaknesses

will

come.
financial,

production, and marketing of the different competing companies, and the history
of competitive moves and objectives in the product category.

The Marketing Plan:

18

Advertising

Advertising

planning

and

decision

making

take

place

in the

context

of an overall marketing plan. The marketing plan includes planning, implementation, and
control functions for the total corporation or a particular decision-making unit or product
line. The marketing plan will include a statement of marketing objectives and will spell
out particular strategies and tactics to reach those objectives. The marketing objectives
should identify the segments to be served by the organization and how it is going to serve
them. The needs and wants of consumers on which the firm will concentrate, such as the
needs of working men and women for easily prepared meals, are identified and analyzed
in a marketing plan.
There are several marketing tools that can be used to help anorganization

achieve

its

marketing objectives. Most people are familiar with the 4 Ps the marketing mix which
includes product, price, place, and promotion. A marketing plan formulates the strategy
and tactics for each of these.

Advertising Communication System:

Advertising

communication

always

involves

perception

process

andfour of the elements shown in the model: the source, a message, acommunication cha
nnel, and a receiver. In addition, the receiver willsometimes become a source of informati
on by talking to friends or associates. This type of communication is termed word of mouth communication, and it involves social interactions between two or more people
and the important ideas of group influence and the diffusion of information. An
advertising message can have a variety of effects upon the receiver. It can

Create awareness
Communicate information about attributes and benefits
Develop or change an image or personality
Associate a brand with feelings and emotions
Create group norms
Precipitate behavior

Message Strategy and Tactics:

19

Advertising

The

actual

development

of

an advertising

campaign

involves

severaldistinct steps. First, the advertising manager must decide what theadvertising

is

meant to communicate by way of benefits, feeling, brand personality, or action content.

Once the content of the campaign has been decided, decisions must be made on the best
and most effective ways to communicate that content.

Media Strategy:
Although there are many rules of thumb often used to decide how much money to spend
on

advertising,

the

soundest

rules

involve

with a detailed specification of what a corporation is attempting to

beginning

accomplish

with

advertising, and the resources necessary. It is only when the job to be done is well
specified that the amount and nature of the effort the amount of money to be invested in
advertising can be really determined.

20

Advertising

Brand Ambassadors: their effect on International Marketing

and advertising
Soft drinks, chocolates, biscuits, paints, cars, tyres, scooters, suiting,footwear,

watches,

pens, hair oil, insurance packages, diamonds, photo films... The list could goes on. It
appears that, of late, corporate India does not want to sell anything to the consumer
without using either a movie star or a sports hero.
This in itself is an important advertising strategy for majority of the companies. So, when
Cadbury India wanted to restore the consumers confidence in its chocolate brands
following the high-pitch worms controversy, the company appointed Amitabh Bachban
for the job.

Last year, when the even more controversial pesticide issue shook up Coca-Cola and
PepsiCo and resulted in much negative press, both soft drink majors put out high-profile
damage control ad films featuring their best and most expensive celebrities. While Aamir
Khan led the Coke fight back as an ingenious and fastidious Bengali who finally
gets convinced of the product's `purity,' PepsiCo brought Shah Rukh Khan and Sachin
Tendulkar together once again in a television commercial which drew references to the
safety of the product indirectly.

21

Advertising

The success that the Aamir Khan commercial brought CocaCola isuniversally acknowled
ged. Acreation of Prasoon Joshi, National Creative Director,McCannErickson, and the ad
has been exported to foreignmarkets as well.
Thus it proved beneficial for international marketing of the product.
The Tata Group has some of India's most famous personalities from the sports and
entertainment fields endorsing its products and services, and the Tata brand like Narain
Karthikeyan, Sourav Ganguly and Irfan Pathan, SaniaMirza, Naseeruddin Shah and
Aamir Khan who have greatly contributed tothe success if Tatas products and services.
Highest Earning Celebrities
1. Amitabh Bachchan
2. Sachin Tendulkar
3. Narain Karthikeyan
4. Shahrukh Khan
5. Aamir Khan
6. Aishwarya Rai
7. Rahul Dravid
8. Saif Ali Khan
9. Saurav Ganguly
10. Sania Mirza

22

Advertising

Impact of Advertising on Sales

HERO HONDA

Sales Performance
Dec 09
Domestic
Exports

Dec 10

225250
5501

238822
6282

Apr 09
Dec 09
1892540
43441

Apr 10
Dec 10
2155479
72815

The Hero Honda Company achieved a solid growth of 35% as compared with sales
recorded during January 2005.
The cumulative sales of the company for the period April 2003 - January2004 are
16,73,421

motorcycles,

notable

jump

from

14,27,052

salesachieved during the corresponding period last year (April 2002-January2005).

units
This

reflects a growth of 17% in the cumulative sales of the company owing to its advertising
strategies.

23

Advertising

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

Fact file:
The majority of large advertising agencies are headquartered in the
US. Of the ten largest advertising agency groups, seven areheadquartered in the
US, and one each in the UK, France and Japan, although WPP, the British agency
holding company, is made up of two large US-based agencies.
With the exception of Dentsu, the Japanese agency, most other agency networks
generate the majority of their revenues outside their home country.

24

Advertising

The largest agency group, Omnicom, places over $37 billion of advertising for its
clients around the world and derives half its revenue from outside the US.
US-based advertising agencies and their subsidiaries are responsible for most of
the advertising throughout the world.
China is the next largest advertising market and is also growing rapidly.

25

Advertising

Advertising Expenditure
The Table below shows advertising spending in the top ten global ad markets:
Country

U.S.
Japan
U.K.
Germany
France
Brazil
Italy
Australia
Canada
S. Korea
Total:

Advertising Expenditures
(millions)

Percent

117.0
35.7
20.8
20.3
9.7
8.8
7.2
5.5
5.4
5.3
235.7

50
15
9
9
4
4
3
2
2
2
100

26

Advertising

Top ten advertising companies:

Rank

Company

1
2
3
4
5
6
7
8
9
10

Philip Morris
Procter & Gamble
General Motor
Sears
RJR Nabisco
Grand Metropolitan
Eastman Kodak
McDonalds
PepsiCo
Kellogg

Total U.S
Advertising
(Million $)
2058
1507
1294
1045
815
774
736
728
712
683

Total U.S
Sales
(Million $)
20866
11805
91260
50215
12635
3211
10024
11380
10551
2766

Advertising as
a percent of
Sales
9.9
12.8
1.4
2.1
6.4
24.1
7.3
6.4
6.7
24.7

Factors Affecting Advertising

The final external factor in the planning framework concernsenvironmental factor social,
legal, and global. Law forbids deceptive advertising. One solution is to create brand
advertising that is vague and contains little specific information. However, such an
approach can result not only in ineffective advertising; by it can lessen the social value of
advertising by reducing the amount for useful information that it provides to society.
Thus, and advertiser who attempts to provide specific, relevant information must be well
aware of advertising regulation.
Even more difficult consideration for people involved in the advertising effort is broad
social and economic issues. Another concern is that advertising, especially when it is
more irritating than entertaining, is an intrusion into an already excessively polluted
environment. A whole set of rules is emerging to cover advertising directed at children,
and advertising for products such as alcohol and cigarettes, and the use of environmental
and health claims in advertising. Thus advertising has a tremendous impact on
international marketing and the two concepts therefore go hand in hand and are
dependent on each other.
27

Advertising

Radio Advertising Success

Radio is an affordable ad medium that can reach a mass audience. These keys help
increase your chances of having a successful radio ad campaign.
1. Frequency of Ads
A radio commercial needs to air multiple times before it sinks in with the listener.
Running your commercial once a week for a month isn't going to be enough. Frequency
refers to how many times your ad airs in a short amount of time. A commercial that airs
multiple times in a day has a better chance of reaching the listener than a commercial that
only airs a few times in a week.
2. Target Audience
Just

like

with

every

ad

one

create,

you

audience. Advertising your western gear store on a country

must

know

station

ones
makes

target
sense.

Advertising a teen clothing store on the same station doesn't. Make a list of the radio
stations in your market. Listen to each one to help identify your own target audience.
What kind of listeners will be tuning in and are they a potential customer for your product
or service? Radio stations also offer programs you'll want to know more about before you
buy.
3. Producing A Commercial
Unlike

television

commercials,

production

is

simpler

for

radio

commercial.However, that doesn't mean one should just slap something together. Your
copy isn't relying on any visuals so it's vital you capture the listener's attention from the
start. The copy needs to be crystal clear and not muddied by trying to be cutesy in your
pitch. Frequency is the key so make sure your ad hits the mark and will get the
consumer's attention the first time. Research shows it takes a few times before the
consumer actually gets what your company is all about. It's vital your ad stands out and
conveys your message repeatedly.
28

Advertising

Advertising Legends
1. Mudra Communications
A

Krishnamurthy

is

the

Captain

who

steered

his

agency

froma Rs. 35 lakh company to a Rs. 7 billion corporation in aremarkably short 23 years.
But little is known of hisconsiderable contribution in the agencys creative reputation
-doubling up as copywriter/art director and quite often even as creative director
Brands:
Rasna, Vimal Suitings & Sarees etc.
2. Brendan Pereira- Chairman & Creative Director
From his palette of skills, Brendan Pereira has been imparting knowledge to a wide
audience over his 40 years in the business of art, advertising design and communications.
His work with agencies in London and a stint as Brand Manager at Beechams
International, London, for a range of consumer products, created a firm base for the task
of leading Aiyars Advertising in Bombay as Creative Director, and one of the first in the
industry to be elected to the Board in that capacity. As Deputy Managing and Creative
Director,

he

was

one

of

the

major shareholders who founded Chaitra Advertising, and led it on to produce some of
the outstanding work of that era.
Spreading his talent, he published his first book Changing Faces in 1999.

29

Advertising

Indian Advertising Industry

Concrete advertising history begins with classified advertising
Ads appear for the first time in print in Hickey's Bengal Gazette. India's first
newspaper (weekly).
Studios mark the beginning of advertising created in India (as opposed to imported
from England) Newspaper studio strain the first generation of visualisers &
illustrators
Major advertisers: Retailers like Spencer's, Army & Navy and Whiteaway &
Laidlaw
Marketing promotions: Retailers' catalogues provided early example
Ads appear in newspapers in the form of lists of the latest merchandise from
England
Patent medicines: The first brand as we know them today were a category of
advertisers.

30

Advertising

Case study: Knockout shoes

Agency: Weiden & Kennedy
Objective:
Change what people expect of the brand from performance and winning to
possibility and creative self-expression

Target Audience:
Young people -- open, ready and willing to have fun
Active-minded 16 - 22 year olds during summer vacation

How Magazines Were Used:

Speaking to the target, drawing them in with rich, inspiring copy

Results:
Product sell through strong; basketball was prime success story -complete sell
through at urban and athletic specialty retailers
Positive feedback from retailers and consumers

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Advertising

Advertising Campaign Break-Through

1. Volkswagen
The Volkswagen campaign of the 1960s is considered a huge breakthrough in the history
of advertising. During this time, the auto industry tended focus on the beauty and
engineering stretch of the vehicle. However, Volkswagen advertising broke through
the clutter by creating ads based upon the same principle that drew drivers of
Volkswagens in the first place: simplicity, honesty, uniqueness and humor. Now, the
brand continues to stand out with maximum creativity.

2. Marlboro Cigarettes
The Marlboro Man smoking cigarettes has come to be one of the biggest icons of
advertising. The handsome and suave person made smoking cigarettes look cool.
It has demonstrated the powerful impact the industry has on consumers.

3.

Nescafes International Advertising Strategy

Nescafe employs a think globally, act locally marketing strategy. According to Keegan
and Green, Nescafe Coffee is marketed as a global brand, even though advertising
messages and product formulation vary to suit cultural differences. Nescafes marketing
campaign is global in the sense that the company uses the same symbols worldwide, such
as the renowned coffee mug and Nescafe logo. However, Nescafe tailors its campaigns to
suit diverse consumer attitudes and preferences. For example, marketing advertisements
targeting different locations and regions often are different in terms of copy (message and
language) and advertising appeal (rational vs. emotional).

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Advertising

4. I'M LOVIN' IT: An International Motto

We can take the example of McDonald's which have launched a new and for the first time
global marketing strategy in Germany at the beginning. The campaign launched by the
McDonald revolves around the motto, I'm loving' it and it is part of a new and broader
marketing approach that McDonald's calls Rolling Energy. The company says this
approach will restore the strength of the brand in the entire world, unify its messages and
integrate all its marketing moves.
McDonald's realized that it can save money. To create a campaign of this sort, which is
not individualized for each country and each market and which is going to use the same
slogan, presumes a terrific cost savings that could have an impact on [McDonald's]
accounting results.
Despite the benefits that this campaign offers, it contains the risk of not being able to
adjust to the peculiarities of each individual market. The value shared by the youths in
different countries makes it possible today more than ever to create global campaigns
with a same message.

Top Advertising Agencies in India

1.
2.
3.
4.
5.
6.

Mammoth Graphic Communications

Accord Advertising
FCB-Ulka Advertising Ltd.
Glare Advertising
Marketing Consultants & Agencies Limited
Mudra Communications Pvt. Ltd.

33

Advertising

Cultural blunders: Brands gone wrong

Marketers create more brand blunders than one would think, and these blunders can cause
brands a lot of harm. Some of them, if they are lucky, escape with just a touch of public
ridicule and shaming. Oftentimes, the advertising, marketing, and PR agencies come out
unscathed, but the brand can sometimes take years to recover.
Attempts to create globally consumed brands, or regionally consumed brands throughout
AsiaPac, have proved challenging. Changing a product to cater for local needs or tastes
risks destroying the qualities that made the brand desirable when it was first created.
Keeping a brands heritage intact when it enters a new market is likely to mean that
marketers need to retain characteristics that root it in the culture it came from.
However, some brand marketers seem to think that they can convince overseas
consumers that their products and services transcend cultural barriers.
Axe Chocolate-man Ad Banned
Axe ad is a classic example of standardization vs. localization debate. Keeping in line
suggestive advertisements being televised. The Indian government has taken strong
objection to the AXE chocolate deodorant ad .Ministry of information and broadcasting
has regarded the ad as indecent, vulgar and repulsive. It clearly reflects the importance of
understanding cultural sensitivity in advertising

GERBER
When Gerber, a Nestle owned purveyor of baby foods first started selling their baby food
in Africa, they used the same packaging as in the USA with the cute baby on the label.

34

Advertising

Later they found out that in Africa companies routinely put pictures on the label of what
is inside the package, since most people cannot read.
Coca cola
When CocaCola entered the China market, they named their product something that
when pronounced, sounded like, CocaCola. The only problem was that the characters
used meant Bite the Wax Tadpole. When they learned of their blunder, they later
changed to a set of characters that mean Happiness in the Mouth.
Puffs
When Puffs tissues tried to introduce its product, they were quick to learn that Puff in
German is a colloquial term for a whorehouse. The CMO behind that brand must have
been sleeping.
Panasonic
In the mid1990s, people everywhere were still discovering the joy of home computers.
Japanese engineers at Panasonic were way ahead of the curve, and in 1996 they
developed a touch screen PC for the home market. They decided to market the product
aggressively in the US using a mascot called Woody. At the time, the American created
Woody Woodpecker cartoon character was apparently huge in 1990s Japan. After
securing the rights to use Mr. Woodpecker and conducting an amount of research so
infinitesimal that marketers are still studying it today, Panasonic proudly dubbed their
new touchscreen computer "The Woody", not knowing that wood is American slang
mused to describe mens intimate parts. Things went south from there. Panasonic had no
clue that anything was wrong with the slogan until the day before the ads were set to
launch, when an American staff member informed them of the sexual slang connotations.
As a result of this mistake, its highly innovative product was a failure and the campaign
became infamous.

35

Advertising

Colgate
Colgate introduced a toothpaste in France called Cue, the name of a notorious porno
magazine.
Fiat
FIAT released an ad in Italy in which actor Richard Gere drives a Lancia Delta from
Hollywood to Tibet. Gere is hated in China for being an outspoken supporter of the Dalai
Lama there was a huge online uproar on Chinese message boards commenting that they
would never buy a FIAT car.
Pepsi
When Pepsi expanded their market to China, they launched with the slogan, "Pepsi brings
you back to life." What they didnt realize is that the phrase translated to Pepsi brings
your ancestors back from the grave. This may seem like a pretty funny mistake ... but to
Pepsi this was a huge mistake, especially when you're trying to build a brand on a global
level. Yipes!
Schweppes
In Italy, a campaign for Schweppes Tonic Water translated the name into Schweppes
Toilet Water
KFC
In Chinese, the Kentucky Fried Chicken slogan fingerlickin good came out as Eat
your fingers off. That wasnt KFCs only blunder. In the mid1980s when the brand
launched their first store in Hong Kong, they used chickens raised and fed in China. The
Chinese feed their chickens fishso the taste was not the same as Americas KFC. The
company closed their store and did not reopen until ten years later.
Parker Pen
36

Advertising

When Parker Pen marketed a ballpoint pen in Mexico, its ads were supposed to have read
It wont leak in your pocket and embarrass you. Instead, the company thought that the
word embarazar (to impregnate) meant to embarrass, so the ad read: It wont leak in
your pocket and make you pregnant. This is a strong example of how companies should
heavily research translation before launching their brands internationally. It would have
taken only minutes for a professional translator to verify the correct translation of the line
in question. Once again in South America, Parker Pens released a pen named The Jotter
which is slang for jockstrap. Marketers should note this warning: using internet
translators for international ad campaigns is not suggested.
Coors
In Spain, when Coors Brewing Company translated its slogan Turn it loose into
Spanish, it read as: Suffer from diarrhea.
Clairol
The hair products company, Clairol, introduced the Mist Stick a curling iron into
Germany, only to find out that mist is slang for manure. Not too many people had use
for the manure stick.
Salem Cigarettes
The American slogan for Salem cigarettes, Salem Feeling Free was translated into the
Japanese market as When smoking Salem, you will feel so refreshed that your mind
seems to be free and empty.
Pepsi cola
Pepsi Cola lost its dominant market share to Coke in South East Asia when Pepsi
changed the color of its vending machines and coolers from deep Regal blue to light
Ice blue as light blue is associated with death and mourning in their region.

37

Advertising

Cooking oil brand

Managers at one American company were startled when they discovered that the brand
name of the cooking oil they were marketing in a Latin American country translated into
Spanish as "Jackass Oil."
P&G
Even companies as big and as smart as Proctor and Gamble can make brand blunders
when cultural differences are not researched before hand. Proctor & Gamble used a
television commercial in Japan that was popular in Europe. The ad showed a woman
bathing, her husband entering the bathroom and touching her. The Japanese considered
this ad an invasion of privacy, inappropriate behavior, and in very poor taste.

38

Advertising

SUGGESTIONS
In terms of marketing it is a very potent tool to create awareness and lure the consumer to
buy the product. But one must not underestimate the discerning capacity of the buyers.
Advertisements must achieve the difficult task of creating the world of possibility at the
same time living up to what they promise to the consumer. Else, it may backfire. The
common traps in marketing are promising something and then not delivering it.
Therefore, along with your marketing strategy, it's also important to service other not so
obvious touch- points so as to provide a consistent 360-degree brand experience to your
consumers.
International advertising is a creative and cultural challenge. Before conveying any
message one must have a fair idea about the sensitivities that are specific to every culture.
For instance, different cultures have different flavors of humor. An Indian advertisement
cannot humor the elders as it would offend the cultural beliefs that the country represents.

39

Advertising

CONCLUSIONS
Thus we see advertising has multiple layers to it. A lot more than what actually meets the
consumer's eye goes into creating a successful advertisement or an advertisement
campaign. In today's era of consumerism the need for advertisements to break the clutter
and stand out becomes absolutely imperative. Advertising has multiple media at its
disposal with each having its respective strengths and limitations. For instance radio still
has a reach to rural India like no other medium can. Also it overcomes the barrier of
illiteracy in a developing country like India. On the other hand mailers pop ups are an
excellent way to remain visible to the urban techno- savvy Internet using consumers.
Depending on the target audience the medium best suited should be exploited to the hilt.
Getting celebrities who have attained iconic status is a popular way to endorse a brand.
But what makes it break the clutter is the fact how one creatively leverages the presence
of a celebrity. This is exactly where Amir Khan with his Coca Cola campaign achieved
wonders. His each character catered to different cultural ethnicities that India comprises
of.
Celebrities are seen to covertly endorse brands as well. For example, one observes
product placement for Omega Watches, Ford, VAIO, BMW and Aston Martin cars are
featured in recent James Bond films, most notably Casino Royale.
It is seen that after United States, China is the next largest market in terms of
advertisement. But India too is not far behind as some its advertisements have got noticed
in the international community.

40

Advertising

Advertisement is therefore, has elements of both an art as well as science. The art comes
in the creativity and visualization. While the other bit is taken care of in terms of
consumer behavior comprehension in marketing.

Bibliography

Books:

INTERNATIONAL MARKETING
-

Websites:

Manan Prakashan
Sheth Publications Pvt. Ltd.

http://www.campaignasia.com/Blog
http://www.nicolearena.com/
http://www.managementstudyguide.com/

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