Discuss the problems and opportunities facing the global advertiser
The prevailing arena in business this millennium has powerful forces, which are transforming markets and spectacularly changing ways of doing business. There has been increased movement of people, goods and organisations across borders, which have resulted in the emergence of global market segments and the growth of globally integrated markets. In order to discuss the problems and opportunities facing the global advertiser in today’s environment we must understand firstly, what global advertising involves. Advertising is a form of interaction used to incite or influence an audience (viewers, readers or listeners) to continue or to take some new action. Most commonly, the desired result is to drive consumer behaviour with respect to a commercial offering. Everywhere we look, we see advertisements and logos. These features of capitalist commodity culture have become not just ways of selling goods but an inescapable mode of modern communication (Cartwright and Sturken, 2001). What about on a global stage? The Oxford University Press defines global advertising as “advertising on a worldwide scale reconciling or taking commercial advantage of global operational differences, similarities and opportunities in order to meet global objectives.”
Through the paper, I will analyse the pros and cons confronting the global advertiser.
Spending on advertising is huge. One often quoted statistic by market research firm ZenithOptimedia estimates that worldwide spending on advertising exceeds (US) $400 billion. This level of spending supports thousands of companies and millions of jobs. In fact, in many countries most media outlets, such as television, radio and newspapers, would not be in business without revenue generated through the sale of advertising. For some organisations little advertising may be done, instead promotional money is spent on other promotion options such a personal selling through a sales team. For some smaller companies advertising may consist of occasional advertisements and on a very small scale, such as placing small ads in the classified section of a local newspaper. Most organizations, large and small, rely on advertising to create consumer interest in their products or services to help meet marketing objectives. If a company wants to meet their global marketing expectations then they need to concentrate on global advertising. Global advertising is used to attract more customers, to win their trust and build stronger brand recognition on a global stage.
It’s difficult to just create a strong brand within one culture, but understanding all the cultural dimensions needed for global branding and marketing can be an enormous task. Understanding cultural differences is important to achieve success in any market, let alone on the world business stage. While there are national and local cultures to consider, it is also key to remember to address political and business cultures, when wanting to develop global marketing strategies. The lack of cultural considerations not only can result in a mediocre response to product promotions, but can even impact the company's international image. Nestlé suffered significant international criticism when a breast milk substitute marketed in Africa was deemed to be the cause of malnutrition in babies. While there was nothing wrong with their product, Nestlé was at fault because the company didn't consider the possibility that reduced literacy levels in Africa would result in their breast milk substitute being misused.
We live in an era of change. Holberd and Brue (1996), highlight the huge move that has been made from local to regional, regional to national, national to international, international to global. With ever increasing improvements in transport, communication, and reduced trade barriers, international trading which was once considered a luxury is now a necessity in many sectors. Once a decision...
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