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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