Advertising

INTRODUCTION

Advertisingis a form ofmarketingcommunicationused to persuade anaudienceto 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 verteremeans "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 bysponsorsand viewed via variousold media; including mass media such as newspaper, magazines, television advertisement, radio advertisement,outdoor advertisingordirect mail; ornew media such as blogs, websites or text messages.

Commercial advertisers often seek to generate increasedconsumptionof theirproductsorservicesthrough "branding", which involves associating a product name or image with certain qualities in the minds of consumers.Non-commercialadvertisers 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 ofpersuasion, such as apublic service announcement(PSA).Modern advertising was created with the innovative techniques introduced withtobacco advertisingin the 1920s, most significantly with the campaigns ofEdward Bernays, which is often considered the founder of modern,Madison Avenueadvertising. In 2010, spending on advertising was estimated at $143 billion in the United States and $467 billion worldwide.

INTERNATIONAL ADVERTISINGInternational 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.

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 countriesInternational 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 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 MarketplaceTrade is increasingly global in scope today. There are several reasons forthis.Onesignificantreasonistechnologicalbecauseofimprovedtransportation and communication opportunities today, trade is now morepractical. Thus, consumers and businesses now have access to the very bestproductsfrommanydifferentcountries.

Increasinglyrapidtechnology life cycles also increases the competition among countries as to who canproduce the newest in technology. In part to accommodate these realities, countries inthe lastseveral decades havetakenincreasing steps topromote global trade through agreements such as the General Treaty on Trade andTariffs,andtradeorganizationssuchastheWorldTradeOrganization (WTO), North American Free Trade Agreement (NAFTA), andthe 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

oncethe 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 tothe fact thatdeveloping 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 AdvertisingAdvertising goes back to the very beginnings of recorded history. Archaeologists working in the countries around the Mediterranean Sea have dugupsignsannouncingvariouseventsandoffers.Anearlyformofadvertising was the town crier. Another early advertising form was the markthat 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 productionbecame 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 a sign by hand. The first printedadvertisementintheEnglishlanguageappearedin1478.In1622, advertising got a bigboost with the launching ofthe 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 thespread of advertising.

Advertising's Two Important Virtues Youhavecompletecontrol.Unlikepublicrelationsefforts,youdetermineexactlywhere,whenandhowoftenyourmessagewill appear, how it will look, and what it will say. You can target youraudience more readily and aim atvery 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 yourselfconsistently.

What Advertising Can Do For Your Business Remind customers and prospects about the benefits of your product orservice Establish and maintain your distinct identity Enhance your reputation Encourage existing customers to buy more of what you sell Attract new customers and replace lostones Slowly build sales to boostyour bottom line Promote business to customers, investors

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 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.

Objectives of AdvertisingFour 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

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 customersJust 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 productsAdvertising plays very important role for the producers and the sellers of the products, because - a. Advertising helps increasing salesb. 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 societyAdvertising 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.

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. ConsistentCreating 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. RiskYou 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. LocalizationWhile 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. LeadershipYou 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. ManagementRunning 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. MediaThe 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 Promote business to customers, investors

BARRIERS OF INTERNATIONAL ADVERTISING

1. CULTURECulture 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.

2. LANGUAGETranslation 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. EDUCATIONThe 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 REGULATIONSThe 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 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 LIMITATIONMedia 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.

Advertising Plan

The manager needs to engage in situation analysis with respect to the marketconditionsthatareoperatingatthetimeandtoassesstheconsumer/market,competitive,facilitatingagency,andsociallegal,and global factors that will affect decision making and the development of theplan. 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.

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 andMarket 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 ofdifferentsegments;andtrendsinalloftheseaggregatemarketcharacteristics.

Competitive Analysis:Advertisingplanninganddecision-makingareheavilyaffectedbycompetition and the competitive situation the advertiser faces.Competition is such a pervasive factor that it will occur as a consideration in all phases oftheadvertisingplanninganddecision-makingprocess.Atypeofmarketstructure analysis that involves the development of perceptual maps of a market, for example, attempts to locate the relative perceptual positions ofcompetitive 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 thebrand, and from which competitors an increase in share will come. Theplanneralsohastobeawareoftherelativestrengthsandweaknesses financial, production, and marketing of the different competing companies, and the history ofcompetitive moves and objectives in the product category.

The Marketing Plan:Advertising planning and decision making take place inthe context ofanoverallmarketingplan.Themarketingplanincludesplanning, implementation, and control functions forthe total corporation or aparticulardecision-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.Thereareseveralmarketingtoolsthatcanbeusedtohelpanorganization achieve its marketing objectives. Most people are familiar with the 4 Ps the marketing mix which includes product, price, place, andpromotion. A marketing plan formulates the strategy and tactics for each ofthese.

Advertising Communication System:Advertising communication always involves a perception process andfouroftheelementsshowninthemodel:thesource,amessage,acommunicationchannel,andareceiver.Inaddition,thereceiverwillsometimesbecomeasourceofinformationbytalkingtofriendsorassociates.Thistypeofcommunicationistermedword of - mouth communication, and it involves social interactions between two or morepeople and the important ideas of group influence and the diffusion ofinformation. An advertising message can havea variety of effects upon thereceiver. It can - Create awareness Communicate information aboutattributes and benefits Develop or change an imageor personality Associate a brand with feelingsand emotions Create group norms Precipitate behaviorMessage Strategy and Tactics:The actual development of anadvertising campaign involves severaldistinctsteps.First,theadvertisingmanagermustdecidewhattheadvertising is meant to communicate by way of benefits, feeling, brandpersonality, 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 beginning withadetailedspecificationofwhatacorporationisattemptingto accomplish with advertising, and theresources necessary. It isonly when thejob 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.

BrandAmbassadors:theireffectonInternationalMarketingand advertising

Softdrinks,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 ofthe 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 drinkmajors put out high-profile damage control ad films featuring their best and most expensive celebrities. While Aamir Khan led the Coke fight back asan ingenious and fastidious Bengali who finally getsconvinced of the product's `purity,' PepsiCo brought Shah Rukh Khan and Sachin Tendulkar together once again in a television commercial which drew references tothe safety of the product indirectly.ThesuccessthattheAamirKhancommercialbroughtCocaColaisuniversallyacknowledged.AcreationofPrasoonJoshi,NationalCreativeDirector,McCannErickson,andtheadhasbeenexportedtoforeignmarkets as well. Thus it provedbeneficialforinternational 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 likeNarain 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 Celebrities1. Amitabh Bachchan2. Sachin Tendulkar3. Narain Karthikeyan4. ShahrukhKhan5. AamirKhan6. Aishwarya Rai7. RahulDravid8. SaifAli Khan9. Saurav Ganguly10. Sania Mirza

Impact of Advertising on Sales

HERO HONDA

Sales Performance

Dec 09Dec 10Apr 09 Dec 09Apr 10 Dec 10

Domestic22525023882218925402155479

Exports550162824344172815

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, a notable jump from 14,27,052 units salesachievedduringthecorrespondingperiodlastyear(April2002-January2005). This reflects a growth of 17% in the cumulative sales of the company owing to its advertising strategies.

Facilitating Agencies

Another external factor involves the agencies thatfacilitate 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 otherhand,mayhaveundercontractmanydifferentagenciesandresearchsuppliers, each serving one or more brands in a product line made up ofseveral products.

Many advertising decisions involve choices among facilitating agency alternatives. What advertising agency should bechosen? What media should be used? What copy-testing supplier will be best for our particularsituation? Concerning the question for agency selection, for example, Cagley and Roberts found that the people factor tends to dominate in agencyselection.Characteristicssuchasthequalityofpersonnel,reputation, integrity, mutual understanding, interpersonal compatibility, and synergism were very important.

Fact file:

The majority of large advertising agencies are headquartered in the US.Ofthetenlargestadvertisingagencygroups,sevenareheadquartered 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.

Thelargestagencygroup,Omnicom,placesover$37billionofadvertising for its clients around the world andderives half its revenue from outside the US.

US-based advertising agencies and their subsidiaries are responsible for most of theadvertising throughout the world.

Chinaisthenextlargestadvertisingmarketandisalsogrowing rapidly.

Advertising Expenditure

TheTablebelowshowsadvertisingspendinginthetoptenglobalad markets:Country

Advertising Expenditures(millions)

Percent

U.S.JapanU.K.GermanyFranceBrazilItalyAustraliaCanadaS. Korea117.035.720.820.39.78.87.25.55.45.3501599443222

Total:235.7100

Top ten advertising companies:

RankCompanyTotal U.SAdvertising(Million $)Total U.SSales(Million $)Advertising as a percent of Sales

1Philip Morris2058208669.9

2Procter & Gamble15071180512.8

3General Motor 1294912601.4

4Sears1045502152.1

5RJR Nabisco815126356.4

6Grand Metropolitan774321124.1

7Eastman Kodak736100247.3

8McDonalds728113806.4

9PepsiCo712105516.7

10Kellogg683276624.7

Factors AffectingAdvertising

Thefinalexternalfactorintheplanningframeworkconcernsenvironmentalfactorsocial,legal,andglobal.Lawforbidsdeceptive advertising. One solution is to create brand advertising that is vague and contains little specific information. However, such an approach canresult not only in ineffective advertising; by it can lessen thesocial value of advertisingby reducing the amount for useful information that it provides to society. Thus, and advertiser who attempts to provide specific, relevant information must be well awareof 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 ofrules is emerging to cover advertising directed at children, and advertising for products such as alcohol andcigarettes, and the use ofenvironmental and health claims inadvertising. Thus advertising has a tremendous impact on international marketing and the two concepts therefore go hand in hand and are dependent on each other.Radio Advertising Success

Radioisanaffordableadmediumthatcanreachamass audience. These keys help increase your chances of having a successful radio ad campaign.1. Frequency of AdsA 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 fewtimes in a week.

2. TargetAudienceJust like with every ad one create, you must know ones target audience.Advertisingyourwesterngearstoreonacountry station makes 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 oflisteners will be tuning in and are they a potential customer for your product or service? Radiostationsalsoofferprogramsyou'llwanttoknowmore about before you buy.

3. Producing A CommercialUnlike television commercials, production is simpler for a radio commercial.However,thatdoesn'tmeanoneshouldjustslapsomething 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 yourad hits the markand 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.Advertising Legends

1. Mudra CommunicationsA G Krishnamurthy is the Captain who steered his agency fromaRs.35lakhcompanytoaRs.7billioncorporationinaremarkablyshort23years.Butlittleisknownofhisconsiderable contribution in the agencys creative reputation -doubling up as copywriter/art director and quite often even as creative directorBrands: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 majorshareholderswhofoundedChaitraAdvertising,andleditontoproduce some of the outstanding work ofthat era.Spreading his talent, he published his first bookChanging Faces in 1999.

Indian Advertising Industry

Concreteadvertisinghistorybeginswithclassified 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 ofvisualisers & 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.

Case study: Knockout shoesAgency: Weiden & KennedyObjective: Change what people expect ofthe brand from performance and winning to possibility and creative self-expression

TargetAudience: Young people -- open, ready and willing to have fun Active-minded 16 - 22 year oldsduring summer vacation

How Magazines Were Used: Speaking to the target, drawing them in withrich, inspiring copy

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

Advertising Campaign Break-Through1. VolkswagenThe Volkswagen campaign of the1960s is considered a huge breakthrough in the history of advertising. During this time, the auto industry tended focus on thebeauty and engineering stretch of the vehicle. However, Volkswagen advertising broke through theclutter 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 tostand outwith maximumcreativity.2. Marlboro CigarettesThe 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).4. I'M LOVIN' IT: An International MottoWe 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 India1. Mammoth Graphic Communications2. Accord Advertising3. FCB-Ulka Advertising Ltd.4. Glare Advertising5. Marketing Consultants & Agencies Limited6. Mudra Communications Pvt. Ltd.

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 BannedAxe 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. 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 colaWhen 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.

PuffsWhen 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.

PanasonicIn 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.

ColgateColgate introduced a toothpaste in France called Cue, the name of a notorious porno magazine.

FiatFIAT 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.

PepsiWhen 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!

SchweppesIn Italy, a campaign for Schweppes Tonic Water translated the name into Schweppes Toilet Water

KFCIn 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 PenWhen Parker Pen marketed a ballpoint pen in Mexico, its ads were supposed to have readIt 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.

CoorsIn Spain, when Coors Brewing Company translated its slogan Turn it loose into Spanish, it read as: Suffer from diarrhea.

ClairolThe 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 CigarettesThe 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 colaPepsi 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.

Cooking oil brandManagers 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&GEven 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.

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.

CONCLUSIONSThus 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.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 Manan Prakashan Sheth Publications Pvt. Ltd.

Websites:http://www.campaignasia.com/Bloghttp://www.nicolearena.com/http://www.managementstudyguide.com/

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