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Saturday 25 May 2013

Impact Of Advertising On International Marketing



Impact Of Advertising On International Marketing


International Marketing: A Global Marketplace
                      Trade is increasingly global in scope today. There are several reasons for this. One significant reason is technological—because of improved transportation and communication opportunities today, trade is now more practical. Thus, consumers and businesses now have access to the very best products from many different countries. Increasingly rapid technology lifecycles also increases the competition among countries as to who can produce the newest in technology. In part to accommodate these realities, countries in the last several decades have taken increasing steps to promote global trade through agreements such as the General Treaty on Trade and Tariffs, and trade organizations such as the World Trade Organization (WTO), North American Free Trade Agreement (NAFTA), and the European Union (EU).
Some forces in international trade.
                 Trade between countries is beneficial because these countries differ in their relative economic strengths—some 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 once the demand for a product (say, VCRs) is in the decline in these markets, an increasing market potential might exist in other countries (e.g., Europe and the rest of Asia). Internalization/transaction costs refers to the fact that developing certain very large scale projects, such as an automobile intended for the World market, may entail such large costs that these must be spread over several countries.
Advertising
                       Advertising is a persuasive communication attempt to change or reinforce ones’ prior attitude that is predictable of future behavior.
Historical Milestones In Advertising 
                     Advertising goes back to the very beginnings of recorded history. Archaeologists working in the countries around the Mediterranean sea have dug up signs announcing various events and offers. An early form of advertising was the town crier. Another early advertising form was the mark that trades people placed on their goods, such as pottery. As the person’s reputation spread by word of mouth, buyers began to look for his special mark, just as trademarks and brand names are used today. As production became more centralized and markets became more distant, the mark became more important. The turning point in the history of advertising came in he year 1450 when Johann Gutenberg invented the printing press. Advertising no longer had to produce extra copies of a sign by hand. The first printed advertisement in the English language appeared in       1478. In 1622, advertising got a big boost with the launching of the first English newspaper, The Weekly News. Advertising had its greatest growth in the United States. Ben Franklin has been called the father of American advertising because his Gazette, first published in 1729,had the largest circulation and advertising volume of any paper in colonial America. The invention of radio and, later, television created two more amazing media for the spread of advertising.

Advertising's Two Important Virtues

                        You have complete control. Unlike public relations efforts, you determine exactly where, when and how often your message will appear, how it will look, and what it will say. You can target your audience more readily and aim at very specific geographic areas.
 You can be consistent, presenting your company's image and sales message repeatedly to build awareness and trust. A distinctive identity will eventually become clearly associated with your company, like McDonald's golden arches. Customers will recognize you quickly and easily - in ads, mailers, packaging or signs - if you present yourself consistently. 
What Advertising Can Do For Your Business
  •  Remind customers and prospects about the benefits of your product or service
  •  Establish and maintain your distinct identity
  •  Enhance your reputation
  •  Encourage existing customers to buy more of what you sell
  •  Attract new customers and replace lost ones
  • Slowly build sales to boost your bottom line
  •  Promote business to customers, investors

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