Download INTERNATIONAL ADVERTISING

mk364 - international advertising
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INTERNATIONAL ADVERTISING
BACKGROUND TO INTERNATIONAL ADVERTISING - THE INTERNATIONAL
ENVIRONMENT AND CHANGE
Background
Advertising becomes more complicated for the marketer crossing borders i.e. when it is not just
placed in the domestic market. This is for a variety of reasons. The advertiser needs to be aware
of differences in many things including regulation, laws and unwritten customs and practice.
STEP/PEST-type factors that are used to look at situations from a strategic marketing viewpoint
are of course relevant to international advertising. It is these that underpin activities across
markets around the globe. Of course, advertising may not be the appropriate communications
tool for the company for a particular set of objectives. It may be the case that because of the
differences that exist in environmental factors in different countries, advertising is not possible in
some markets. Or it may be that for some situations (say machine tools), advertising will take a
lesser role and the major communication tool might be personal communication of some sort.
The scope of advertising will depend on the type of society. For example in Saudi society much of
what goes on is a function of religion and hence law. Here its excesses are restrained by a
different code, different ethics.
International advertising defined
Advertising involves the skillful use of all the capacities of language organized into a system of
tools, techniques and transmission devices. If the idea of advertising is to create in the customer's
mind utility and value this means that the advertiser has to position the product in a way that
makes it desirable to the customer, enabling transference of a basic need into a want (a la
Maslow). Advertising may be defined as ‘any paid form of non-personal presentation and
promotion of ideas, goods or services by an identified sponsor’ (American Marketing Association).
It may be either for commercial or for government or non-profit organisations.
De mooij (1994) offers a definition of worldwide advertising as ‘the formulation of communications
vision, intent and strategy and the implementation of a communications plan. (including media
advertising, sales promotion, direct marketing, PR activities and simultaneous support of the sale
of goods and services)....in more than one country in several parts of the world’. This is, of course,
more like a definition of international integrated marketing communications. De Mooij also
explains advertising's role in the international business environment and where advertising fits in
the notion of a 'business ecosystem' - birth, expansion, leadership, self-renewal and death.
History of advertising
The term happens to be French and was defined in 1694 as being 'a crime committed with many
witnesses'. Since that time it evolved as information. Early copies of “The Times” demonstrate
that advertising was only continual repetition of information. Artwork costs were more expensive
due to letterpress print technology. Advertisers learnt to promote products effectively, sometimes
through glamour, sex, humor and so on in order to make them more effective, grabbing attention
more readily.
The development of advertising worldwide (which follows that of marketing and business
generally) is fascinating. Advertising grew quickly between 1850 and 1900 and has developed with
the change to lithographic printing techniques. The emergence of TV in 1950s and radio between
the wars also influenced development. In socialist states such as USSR and China, advertising
emerged as an instrument of propaganda, whereas in free market economies such as the USA,
processed foods, tobacco and drugs were the order of the day. After Stalin's death socialist
countries recognized that advertising encouraged sales and therefore was a necessary evil. In
introduction - the international environment and change
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mk364 - international advertising
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China however, during the time of Mao (after 1949) commercial advertising was denounced. Not
all countries therefore believed advertising to be a good thing. However, since the 1960s
advertising has become established in many countries including the Third World. International
advertising has grown particularly with companies having offices in many countries. The
advertising industry has many agencies today that are international, the US, UK, France and
Japan being important base countries. Important agencies include WPP Group plc (Includes J
Walter Thompson and arch-rival O&M), and Lowe Howard, Spink and Bell plc. Most are privately
owned.
Factors influencing growth include the growing world markets for consumer goods; local agencies
needing modern techniques to promote products; and reduced tax costs in some countries on
foreign advertising. Consumerism emerged in the 1960s and endeavored to redress the balance
of power in an imperfect market and protect individual consumers in the process. Consumerists
exist either as organisations or loose groups of individuals with similar minds. They are stronger in
developed countries. In the Third World they have little power but this is perhaps about to change.
Advertising has gone through many changes and some would say advertising has contributed
toward changes in society. Others claim advertising to be a societal reflector, a sign of the times.
Please consult the seminar sheet entitled 'Washes Whiter' for a broader statement of this.
Rules, regulations and codes
Most people believe it is wrong to misrepresent a product. Law has developed from Roman Law
and in England via the Sale of Goods Act 1893 to a situation which now in England advertisers
are not allowed to misrepresent facts or breach confidence. In America the federal Trade
Commission Act of 1938 set restrictions on the advertising of food drugs and cosmetics. As long
ago as 1925 The International Chamber of Commerce was shaping things to come and in 1938
established a Code of Standards in Advertising Practice. The regulators of advertising are many
and varied. The host countries are important and usually are the principal regulators because
international law allows for national state sovereignty over their people and resources when at
home. The UN however acts as an international regulator and has a restricted role of only a
voluntary code. Some organizations exist to check on specific matter e.g. WHO, UNESCO and
the EU. (This is developed in theme 6 later).
Key Issues Summary
The context within which International Advertising operates should therefore be explored. Some of
the key issues are:

Changing markets: e.g. size of Europe as one market; e.g. the challenge from Asia.

The ability/inability of MNCs in the past to advertise internationally or even engage in panEuropean advertising (PEA).

Adaptation/standardisation debate as it applies to advertising. Should companies "think
global, act local".

The globalisation of markets and types of marketing/companies. The business
ecosystem.

New World Order? The MNCs and the development of world regions.

Advertising in context: Communicating with members of the "Global Village".

The communication process. Environmental factors as an integral part of the Schrammtype model.
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mk364 - international advertising

One world or what? Rapidly converging activity, interest, preference and demographic
characteristics leading to readily accessible, homogenous market groupings?

Stereotyping across cultures. Is it possible? Is it desirable? Is it unnecessary?
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SELECTED REFERENCES (Please note that after each brief set of notes a sample of
references to the literature will appear but this is only a sample and you should do your
own search. See main reading list for full reference if not included here as in e.g. De Mooij,
1994)
Agrawal, M. (1994). Review of a forty year debate in international advertising. International
Marketing Review, 12, 1, pp26-48.
Anholt, S. (2000). Up-dating the international advertising model. Admap, June.
Burton, J. (1986). Danes will drop ad ban. Advertising Age, 5th May.
Business Week, (1993). 8th February, (Nike).
Chiarelli, N. (2003). Has the global consumer changed? Admap, 439, May.
De Mooij (1994) chs 1, 2
Elinder, E. (1961). How international can advertising be? International Advertiser December, p1216.
Freidheim, C. (1993). Relationship Enterprises. The Economist, 6th February.
GriffinT, Foreword, ch 1
Guardian (1995).Thai's uphill battle against sex slavery. 4th February, p.15.
Kao, J. (1993). The worldwide web of Chinese business. HBR M/A.
Kotler, P. (1994). Marketing Management... Prentice Hall.
Kotler, P. (1984). Colleague says Levitt wrong. Advertising Age 25th June, p50.
Levitt T (1983). The Globalisation of Markets. HBR M/J, p.92-102.
Mattelart, A, (1991). Prefaces.
Moore, J. F. (1993). Predators and prey: A new ecology of competition. HBR, M/J.
Quelch and Hoff (1986). Customising global marketing. HBR.
Roberts, R. (1990), Mapping the global condition, in Global Culture, Featherstone, M. (Ed) Sage.
Swingewood, D. and Stringham, P. (2003). HSBC: locally global. Admap, December.
van Doorn, J. et al (2001). Consumer perspectives on standardisation in international advertising:
a student sample.Journal of Advertising Research, 41, 5, September/October.
van Wachen, L. (1994). Aspects of business in a global market. European Business Journal, 6, 2.
Vardar, N. (1992). Foreword, chs 1, 2.
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