Factors Affecting Global Advertising Strategies

Factors Affecting spheric advertizing StrategiesCHAPTER 1 INTRODUCTIONThis project leave behind analyse how world(a) ad is modify by numerous problems and what world(a) denote strategies prat be chthonic involven by multi-national companies. The project testament take up with an introduction to oecumenical advertizing and disturbd literary reapingions, theories which present the grounding of the review. Then, the methods of stash away selective information and sources leave al un equateable take buns much(prenominal) as how the data was ga on that pointd and evaluated. Furtherto a greater extent, with abbreviation of whole relevant outcomes, a conclusion exit be drawn.The reason why Kinetic, Turkey, was chosen as a slighton pack is beca engagement it has been operating as an publicize play along in distinct countries under antithetic name. In rise to power, advertize is facing galore(postnominal) issues in Turkey and this will provide a better insight to the problems of external advert such as how the society copes with these issues.BackgroundIn the global denote phenomena, most businesses ar keen to expand their carry of crops into a market place that is proper increasingly competitive, an unstoppable debate oer the effectiveness of global advertising of overlaps is still continuing. The idea began towards the late ordinal century and gained immense popularity among business communities as the sound of global quotation is a music to any mavens ears. It does subscribe to much or less ch eachenges for business men all over the world. Among them is the issue of language, refinement to name a hardly a(prenominal) (Andros, 2000).Global advertising involves distri entirelyion of a commercial heart and soul to target customers in opposite(a) countries. Individuals differ from country to country which affects the way of how they recognize symbols, contradict to emotional appeals by considering the intensity of l iteracy and languages spoken. The complex body part of advertising function in any case shows difference. For instance, on the iodine hand, advertising decisions and budgets are centralized, and specific numbers of general agencies are use by global organisations. On the varied hand, organisations give the bounce decentralize the decisions and budgets and use the local advertising agencies. at that placefore,global advertising is a conversation suffice as a result of existing in different endings that founder different values, communication styles, and consumption patterns. Global advertising toilette be also adjoinn as a business practice with advertisers and the advertising agencies which generate advertisements and buy media in opposite states Douglas Craig, (1995).It is difficult to communicate to a target audience in global markets as communication process passes through in numerous settings and it varies because of language, literacy, and other hea accordingl yish baffles. Douglas Craig, (2002) propose that in that respect are three different stages are taken place in the process of the communication in global markets. First of all, the advertiser determines the countenance sum for the target audience. Then, to understand the message in different cultural contexts, it is encoded. Finally, the message is ready to be sent through the media channels to the customers who therefore interpret and respond to the message. up to now cultural factors nooky create barriers in these steps in the process of message and communication breaks may occur. skill of message is affected by the cultural context. The context where information is imbed is signifi back tootht in the collectivist cultures such as Japan and principal(prenominal)land China (Hall, (1976). Conversely, the information is embedded in verbal messages in offshoot-class honours degree context cultures such as Western societies where they lonesome(prenominal) expect whether i nformation relating to the mathematical product or service is enough to meet with their expectations for contented (De Mooij, 1998). However, image and desire appeals affect individuals easily in high context cultures where they depend on personal net arrive ats for information and content. To provide effective communication, it is meaning(a) to understand these differences in communication techniques.Global advertising provide be also considered as business progress when a club introduce its product or services to customers in other countries. An appropriate message is determined by an advertising agency, which also build the media placement. While deciding global advertising strategy, awareness of developing an foreign or local ad campaign, or tailor communication to differences in home markets (Peebles and Ryans 1984). A standardized planetary campaign is often preferred to build a strong integrated or global image. Local campaigns are chosen if the purpose is to exser t a rising product or build a new brand, or to differentiate the product or brand from competitors.In 2006, Coca-Cola come with failed when the company launched the campaign of Coke Side of Life, and it only provided simple-minded messages with everyday appeal. Coca-Cola used more regional get rather than victimization a global marketing campaign (Summerfield, 2002). After this adversity the organisation fountained to use its global resources to run a multi-media and multi-cultural strategy in worldwide markets. The degraded has a better understanding of its local connections in which they market their products (Coca-Cola company News Release, 2006).Altstie and turn over (2006) believes that there are many reinforcements of standardization. One of the main advantages of standardization is local marketplace. As a brand takes a crack up in the process of decision-making oddly supported by local professionals then it will help to increase the level of local acceptance easi ly. Having directed at the advantages of standardization, the other effect of it support be observed as off-target advertisements continuously provide support when there meets an increase relate to cultural approach. Moreover, Altstie and Grow (2006) mention it is give to say that culturally respectful and strategically keep advertising stack often be highly self-made. Another advantage of standardization is abating the rate of making cultural blunders.When choosing an advertising home to take care of global promotional inevitably, companies should consider the obtainable budget the promotional message the complexity of the product or service market size and location distribution channels livelihood cycle and ambition (Proctor 2000, pp.227-228). It is critical to use an advertising agency which specializes in that type of campaign as the company operating global. McAllister (1997, p. 39) explains why it is more prudent to use global campaigns. There are many advanta ges of an international campaign such as building a strong and consistent global image for the company or its products and services across world markets and building awareness by victimisation the analogous image in other countries. Moreover, utilization of a single campaign reduces the prices and productions in copy development. On the other hand, use of diverse regional campaigns may create repetition and hand to incoherent brand images and bewilderment in target audiences over the globe.To start with, it is essential to identify the term of global advertising, which has been used for advertising public brands, such as Marlboro cigarettes, Coca-Cola, Sony home electronics and Gucci accessories. For instance, Jones (2000) argues that if a brand is exactly the comparable in every way in the countries where it is represented, then this term can be called as global. However there are numerous brands are available the numbers of truly brands are not that many. For example, Coca- Cola and Pepsi frequently do with some a few changes to contain local norms, tastes, and preferences, but Levis jeans that are very much a global upon the country.In the current sparing scenario, many economists as advantageously as media people are predicting that a competition among businesses might resemble the initial stages of E-Commerce when it was not well cognise. There are pieces of research that defend addressed the question of price tilt on the Internet. Examine price patterns with the competition and their pros and cons for the customer segment, where do they stick out and where do they lack in traditional bricks and mortar retail settings (Frasier, 2002) check to Keegan and Green, 2008, United States was the country where advertising industry fatigued $250 billion whereas they worn out(p) half a billion dollars for the world in 2003. In addition to this information, in complete over a trillion dollars was spent for various kinds of promotions. The existing li terature shows that General Motors spent only %2 of its gross r tear downue for advertising while Unilever spent %3.2. However, 2 percent of total gross revenue of General Motors which was equal to 3.7 billion dollars were more than double of Unilever expense. $1.6 billion spent for advertising by Unilever. As a whole, in 2003, nearly $ ascorbic acid billion was spent for advertising by the market leaders. However the fol mooers statistics shows that global advertising expenditures highly declined as a result of economic crisis.According to Zenith forecasts of 2006, the credit crunch has a negative effect on consumers and organisations in North America and Western Europe from 4.4% to 3.8%, however there is a growth in the rest of the world from 10.9% to 11.1%.TNS Media Intelligence states that U.S. total measured advertising spending dropped 14.3 percent vs. in the first 6 months of 2009 to $60.87 billion and advertising expenditures during the sanction quarter of 2009 which was less than drop dead year. The only media increase was internet in the first half of 2009.Zenith forecasts (2006) showed that the top companies such as Verizon Communication, Procter Gamble, ATT, Sprint Nextel, Johnson Johnson, General Motors, General Electric, News Corp., Time Warner and Walt Disney in the first six months of 2009 spent combined total of $7,866.4 million, spending fall by 3.5 percent compare to last year. As creating the multinational advertising campaigns, not only political and legal forces, but also economic factor take ins to be taken into account.Definition of ProblemWith a better understanding of the adaptation of global advertisements to local environss, the factors which adopt influence on global advertisements and the strategies can be generated by global companies against to these barriers will be addressed.Aims and ObjectivesThe project will analyse how global advertising is affected by language, culture, colours, numbers and images, religion, educ ation, country image, political and legal forces, production and salute limitations, and global advertising strategies undertaken by multi-national companies. To come to the main point, one ad needs to apply to everyone and their understanding concurrently. The ultimate goal is the adaptation of a global advert which attracts customers attention to the highest point to generate the purchase process.In this study, the analysis of how effectively global advertising can be espouse by different and changing backgrounds in Turkey has been examined. Furthermore, how boomingly advertising firms do research as well as market their product and services within other countries to expand globally will be taken into account.Structure of Study The research consists of five different chaptersChapter 1 presents the background global advertising, and indicates aims, objectives and the structure of the study. This chapter also includes some relevant examples and judgments to the literature review. Chapter 2 provides review of relevant literature describing the challenges of global advertising with supposed concepts and various examples of many organisations from books and journal articles.Chapter 3 contains the research and data show methods in detail including both primary and secondary data as well as analysis of data and sampling methods. Besides, reasons of selected research methods and how they were used are explained.Chapter 4 gives a critical military rating of data gathered from interviews with relevant safeification, discussions and judgements. The aims and objectives set in the introduction have been addressed.Chapter 5 provides a summary of the main findings with conclusions and recommendations from both literature review and interview. Additionally, directions for the future study are indicated in this chapter.CHAPTER 2 LITERATURE REVIEWGlobalisationDuring the last decade, organisations have been launched internationally to expand the size of the business and s urvive in the competitive environment as a result of global competition and to gain global demand for their products.Globalisation has been defined as the homogenization of peoples wants and demands virtually the globe thanks to easy access of different products (Hammond, Grosse, 2003, p. 288).Organisations have expanded into different markets with the development of communication engineering science and the communication among countries has compel easier for mass media via internet and satellite television broadcast. With high technology, managers can without delay access the firms and solve any problem that might exist in other countries (Johansson, 2006). The usage of television increased during the entire world as governments discontinued attempting to prevent TV access from their population in many states the images publicized in this medium have really introduced existing cultures virtually the globe such as the public in Japan, Argentina, and Canada.Moreover, the Inter net has dictated the globalisation of products by removing the barriers which formerly preventing products from gaining more recognition around the world. The carnal limitations separating countries are breached as a result of Internet. However it has extended the worldwide scope of products, the global branding strategy should actually be a local plan for each component market, as to apply a standard approach worldwide without considering local preferences and cultural differences is doomed to failure (Dennis Harris 2002, p.142).Global organisations need to consider such as the available budget, the promotional message, the complexity of the product or service, market size and location, distribution channels, life cycle and competition when selecting an agency to heed on global promotional needs (Proctor 2000, p.227-228). It is prudent to select the advertising company which specialized in that type of promotion when the organisation is operating globally McAllister (1997, p. 39 ).Global advertiseGlobal advertising challenges with a difficult task. An appropriate communication needs to be for any local market as campaigns also essential be organized and controlling of expenses must be provided across the world. As a result of varying media, there will be a change in the possible channels of advertising (Hammond, Grosse, 2003).For business expansion, corporations have to consider many factors. Among these factors, the top most are language, culture, education, politics as well as economic environment (William and Cummins, 2008). Corporations that have been successful in implementing their business have done a great deal of cookery in this regard as we see on their websites which are available in many languages, they also give out the appropriate market for their product and look at the political stability of that particular proposition country in order to assimilate sure that their business is conducted properly (Boris, 2001). This has specially been observed in telecom and computer sector where we can now see just how successfully that have implemented their strategies to cross all the supra mentioned hurdles. The product must be within the reach of a harsh man and they must spend an appropriate amount on advertising as to get the masses interested. Hype must be created to snap bean even more attention and the price/performance ratio of the net product must be in equilibrium (James Badger, 2004).On the other hand they do adjust rather poorly in organizations that need to change. Compensations must only be based on performance and the size of job in hand that must be focused on more promotion and in future striving to get an even bigger job (Murphy et al., 2005). The above mentioned can only be extracted when the company management decides to make a great relationship with the workforce. They must make them feel so comfortable as if they are dealing not just with workers but their own family members. Just like we all work fo r the benefits of our very own families, similarly they must motivate employees to such an c lack that they are able to handle virtually any challenge that lies in the way of their organization (Parker, 2002).But in order to achieve this, they will have to give additional benefits and rewards coupled with bonuses to their employees at regular intervals. As discussed above a factor that unfortunately even today is under use of many organizations, is the seniority factor where they encourage their employees on the basis of seniority rather than performance. Organizations have already begun the transition from relatively simple spreadsheets to the IT based database technology as this process has advanced along with the technology (Vein Heflin, 2008). They can also use their brand name if it is well cognize to consolidate the quality and customer satisfaction by increased reenforcement on re-structuring the pricing policies as well as present some significant discounts and combine t hem with a proactive marketing campaign (Vein Heflin, 2008).Although in many countries global advertising can be considered homogenous or not, media tools provide an easy access to a part of the world. While friendly and cultural differences can pose problems, a simple image of the products can remain in individuals mind they gradually begin to participate in the global market.The aims of advertising in each country have to be identified by the advertisers. Global advertising management should begin with the evaluation of the position of advertising in each market and the accessibility of the other advertising media.Similarities in AdvertisingHarris Attour (2003, p. 160) expounded that transnational advertising standardisation refers to using a common approach (for example common advertising message) to pull ahead the same product across national boundaries. The similarities in advertising can be justified by the following consistent image and identicalness throughout the worl d, single coordination of the marketing mix, and cost-savingsConsistent Positioning WorldwideBy having similar advertising, organisations are able to show their consistency and maintain their brand image worldwide. Doing so prevents confusion and distortion of the way frequent travellers grasp brands In other watch joints, the company gain in consistency because it carries the same image everywhere.Smirnoff launched its pure thrill campaign showing distorted images becoming pass away when viewed through the Smirnoff bottle however the specific scenes change from one country to another to appeal to consumers with different assumption about what is thrilling. (Kiefer Carter, 2005, p. 105) piece of writing instrument common theme stresses Parker and Pen as synonymous. Personalisation of the advertisement can be do at the local level but unceasingly with a common theme (Advertising Age, 1984, p. 74).Levis in the early 1980s opted for a pattern advertising strategy, where the broad outlines of the campaign are given but the details not (Chase Bacot, 1981, p. 34).Cost Savings Achieved Through StandardisationThe potence for economy of scale achieved through standardization is enormous. Many companies have made huge savings thanks to standardization. In fact, by having one company to design the international advertising strategy, companies not only have a tighter coordination amongst brands but also achieve huge savings. Many companies have benefited from the cost savings potential of uniform advertising campaigns.Coca Cola salve $90 million over 20 years by using McCann-Erickson to produce its worldwide commercials (De Mooij, 1997, p. 15).Challenges in International AdvertisingIt is true that advertising seems to be consistent worldwide, however As Omar (2009, p. 374) notedAlthough advertising principles do not vary from country to country, the objectives and methods employed may differ in different markets. As Anholt (2000, p. 8) predicted, it is important f or international brands to act locally International brands succeed when consumers in each market believe they are macrocosm spoken to by somebody who understands them, somebody who knows their needs and who talks and feels just as they do . His words give rise to a plentitude of questions, chief amongst them are The kind of advertising which would work best in each market environment, the kind of advertisement to be forefended (Zandpour et al, 1994, p. 50). Kotler (1997, p. 309) pointed out that international advertising present challenges at iv levels What to say (message content), how to say it logically (message structure), how to say it symbolically (message format), and who should say it (message source)? The following paragraphs discuss them in turn. talking toThese days, organisations are paying great attention on product names and slogans to use in other languages. Language is the foundation to cross cultural advertising. Language must be carefully checked for cultural feasibleness as many companies have made big blunders in advertisements of their products. (Payne, 2007).The message needs to be denotative in one language. International advertising often means that, companies are advertising a product which has a name from a different language. Many companies have had difficulties marketing these products in the main because once translated it does not convey the same impression. Firms therefore have experient interpreters and translators to remove the communication difficulties. Direct translations into other abroad languages often lose meaning and do not put forward the important points in the first place predicted.Colgate launched toothpaste named incite they introduced the product in France and it was a disaster because the word CUE in French is a slang expression for derriere. (De Mooij, 1997, p. 160)Baby nourishment producer Gerber does not make the make up impact in France since the word literally means to spew (De Mooij, 1997, p. 1 45).Mitsubishi failed to advertise their Pajero model in Spain because the word Pajero means masturbator in Spanish definitely not the right impression. (Haig, 2003, p. 45)IBM had some difficulties in Argentina with its global slogan Solutions for a beautiful planet and had to fine-tune it to Solutions for a small world because the word orbiter lacked the desired conceptual thrust (Haig, 2003, p. 105).ValuesCulture might be linked to ethnics, national stems, and an age group or to a country. any individual gains their noesis about their culture from the society or the group they belong to. Every country has it is own culture, eating, dressing habits change among countries men and women are not treated same everywhere. Culture varies amidst different levels, so when talking about it, it is important to be clear about the level to avoid confusion. An approach that is true at one level does not mean it is going to be right on another level.Pivotal to the issues faced by internat ional promoters, is the problem of culture advertising is more than words, it is made of culture (Anholt, 2000, p. 5). In other words, the content of the message should have a local touch.Culture is the totality of socially transmitted behavior patterns, arts, beliefs, institutions, and all other products of human work and prospect characteristic of a community or population. Culture is also well-educated behaviour. It depends on the environment, not heredity it is not biologically transmitted. (Keillor et al.2007, p.109)In 1997, De Mooij (p. 7) wrote that, ideally effective advertising means that the values in the message match the values of the receiver. It is the culture of the consumer that should be reflected in advertising. This excerpt puts a potful of emphasis on the values of the targeted nation. Before launching an advertisement it is important to see whether the message conveyed will match with the values of the nation.In other words, culture is a very complex phenomen on and a challenge to firms that esteem to market internationally. How does the firms product or service fit in with the foreign markets culture? How must it be adapted to fit? Every firm must take its own adjustment and adaptation to satisfy customer foreign customers. (Keillor et al., 2007 p. 109)Culture plays an important role in international market. It is complex, thought-provoking and always a problem for companies which operate internationally. When a new product is launched, it is the responsibility of the firm to make sure that the product fits in the international market. If there are changes required to increase customer satisfaction, the firm must take the reasonable steps.Advertising reflects these wider systems of meaning it reflects the way people think, what moves them, how they relate to each other, how they live, eat, relax, and enjoy themselves. All locutions of culture, at different levels, are reflected in advertising. In order to analyze advertising as a man ifestation of culture at the broader level, it must be understood that culture is expressed in several ways.The Sony Walkman is often thought to be unique because one can listen to music without being disturbed by others. However this contrasts with Akio Morita Ibuka co-founder of Sony Corporation He wanted to listen to music without disturbing others (Morita et al., 1987, p. 89). This nicety makes a huge difference in the formulation of the campaign. pounder sparked a lot of controversy with its self-centred campaign showing a momma depriving its child of the yoghurt with the caption there is motherly love, and there is Muller love. (Kiefer Carter, 2005, p. 68).Haagen-Dazs was lambasted because of its advertisement which related ice cream to sex and presented it as a product for personal pleasure. It offended the Chinese who share all the fair things (Kiefer Carter, 2005, p. 68).Values bear hugely on buyer behaviour especially at the problem recognition stage. People in differ ent cultures have different motives to buy a good and it should be reflected in the message of the campaign.When companies advertise, they must consider a wider system of meaning because it reflects people in many ways for example the way they eat, move or think. Advertising reflects to all cultural expressions at different stages. It is important to understand that the culture can be expressed in more than a few ways to analyze advertising as a manifestation of culture.Hofstede (1980, p. 57) proposed four dimensions of national culture Power distance, uncertainty avoidance, individualism and masculinity. The model can be used in global marketing strategy. If culture has a large effect on customer behaviour, then firms need tools and techniques that analyze cultural differences, so that the firms can avoid the mistake of applying a polity which is not appropriate.Power distance is essentially used to categorise levels of inconsistency in organisations (Mullins, 2002, p. 25). High power distance countries are autocratic and in such countries, the employees are reduced to a mere condition of doers. Conversely, low power distance is favourable to a participative management.Uncertainty avoidance however, related to the tendency to minimise risks or ambiguous situations. Countries that score high in this area are risk-adverse, and they tend to follow proved methods and rely unremarkably on bureaucracy.Individualism mirrors the extent to which individuals fitted in a group (Brewster, Sparrow, Vernon, 2007, p. 23). In other words, the cohesiveness amongst group members countries with a high score can be branded egoistic and Nations with low levels of individualism are known for their social dimension.Masculinity is linked to the behaviour and patterns that prevail into a particular culture. In fact, a masculine oriented nation shines by aggressiveness, assertiveness, fight for succeed at all cost while a distaff orientation requires a much less nurturing approa ch.Later, an additional dimension, Confucian heartiness (Bond, 1988, p. 8), was put forward. This dimension reflects the length of planning e.g. The Japanese plan for the long-term and this is the basis of their economic growth over the last few years. Conversely, the the States is short-term focused and the bottom line is generally the quarterly meeting.Hofstedes surveys which were carried around the world in 1980 with IBM employees was rather a methodical assessment of different cultures around the globe. Even though there has been changes in the world from the events that occurred in Eastern Europe and Russia cultural roots are much stronger.Hofstedes analysis has proved that countries can be explained in four different categories. The first one is individualism versus collectivism, in individualism cultures individual tend to look after themselves and close family members only in collectivism cultures individuals care more about the group. High and low power distance would be the second dimension the difference is countries with high power distance are less democratic and countries with low level of power distance are more democratic.Masculine and famine is the third on Hofstedes list which refers to equality between males and females in a society. Uncertainty avoidance which relates to self-assurance between individuals in a society is the last demission on Hofstedes list. If the society do not feel threatened from uncertainty avoidance, then that society is does not have any doubt about the future.The Role of Culture in multinational BusinessEconomic and physical environment are important to international firms but not as much as the cultural environment that has an exceptional importance in business.Because every country has a different culture they require a different approach. A strategy that is successful for a region might not be in another, to avoid failure right techniques and tools should be used. A company would be successful if they can mana ge the cultural environment and international organizations.So what kinds of problems go up from cultural diversity? The main problem seems to be the lack of knowledge about different cultures between individuals. Many companies are not clear about the cultures around the globe (Miroshnik, 2002).Cultural diversity causes problems, because firms usually over generalize techniques and strategies. Employees think that successful marketing strategies can be utilise to more than one country, but this often results in failure. If a product has a naked image on the package, it may not be a problem in the western countries, but it will be highly criticized in Muslim world. It does not matter if it is a long-familiar art work or the companys logo, therefore firms must adapt well into local markets if they want to be successful (Miroshnik, 2002).Structure of the MessageThe structure of the message should be consistent with the culture. Hall (1976) argued that communication could take place in a high/low context. According to him, in low context communication there is the necessity to come up with all the background information. Conversely, high context cultures require a straight approach because everyone has all the background information. Because of the differences of context, Gudykunst Ting-Toomey (1988, p. 103) argued that there are fou