A Project Report on the Role of Advertisement in International Marketing

1. Introduction

Para No. 01 : Advertisement :-

Advertising is a form of communication for

marketing and used to encourage, persuade, or manipulate an audience (viewers, readers or listeners; sometimes a specific group) to continue or take some new action. Most commonly, the desired result is to drive consumer behavior with respect to a commercial offering, although political and ideological advertising is also common. This type of work belongs to a category called affective labor.

In Latin, ad vertere means "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 by sponsors and viewed via various traditional media; including mass media such as newspaper, magazines, television commercial, radio advertisement, outdoor advertising or direct mail; or new media such as blogs, websites or text messages.

Modern advertising was created with the innovative techniques introduced with tobacco advertising in the 1920s, most significantly with the campaigns of Edward Bernays, which is often considered the founder of modern, Madison Avenue advertising.

In 2010, spending on advertising was estimated at $142.5 billion in the United States and $467 billion worldwide

Advertising increased dramatically in the United States as industrialization expanded the supply of manufactured products. In order to profit from this higher rate of production, industry needed to recruit workers as consumers of factory products. It did so through the invention of mass marketing designed to influence the population's economic behavior on a larger scale

Para No. 02 International Marketing :- Marketing is the process that allows you to direct your organisation's goods and services to consumers in order to make a profit. The main difference between domestic marketing and international marketing is that the process takes place in more than one country.

The international market is incredibly diverse, providing business managers with untapped potential and a huge range of profitable opportunities. However, this diversity can make international marketing operations quite complex, requiring the coordination of a variety of processes in order to be successful.

In most cases, the basic marketing principles are applicable to all markets around the world. The difference is that you need to be able to apply those principles in environments that could be significantly different to what you are used to dealing with. Many of the issues international marketers face are outside of their direct control, so they

need to be prepared to adapt their strategies to cope with unfamiliar situations and problems.

Some of the issues that can make international marketing difficult include the varying political, economic, cultural, technological and social situations experienced in different countries. As an international marketer, your task is to take the marketing elements that you have control over (research, product, price, promotion and distribution) and adapt them so that they work within your target market.

One of the most important factors to remember is that each market you enter is different. There is no guarantee that what works in one country or region will work in another. This is the reason that many international marketing attempts fail to achieve their desired results. The key to success is your market research and how you use it to effectively adapt your products and services.

Marketing is an ongoing business process that consists of four distinct stages; analysis, planning, implementation and control. An understanding of the basic fundamentals of marketing is important if your international marketing activities are to be successful.

The first stage of the process, analysis, involves collecting qualitative and quantitative data about your products and potential markets. This information is generated by conducting extensive market research using techniques such as surveys, audits, observations and can be compared with data you have collected in the past. This information should be compared and contrasted against your businesses objectives and

resources to determine whether or not there are any viable opportunities to expand into new markets.

If a competitive advantage is found during the analysis stage, the marketing process moves on to the planning stage. Planning involves creating strategies that you can implement to achieve results in your target market. You should consider both your short term strategies and long term goals in the planning stage, paying particular attention to comparing the risks with the potential rewards.

Once you have developed a clearly defined marketing plan, you can begin the implementation phase. The success or failure of the implementation stage depends almost entirely on the work you have done in the analysis and planning stages. If your plans are realistic, well thought out and based on sound analysis, the implementation stage should result in success for your business. It is important to remain focused on your target objectives during the implementation stage and be prepared to adapt your plans to suit changing conditions.

After the successful implementation of a product or service into a new market, you must be able to monitor and control the performance of the product in the market. You need to be aware of changing market conditions, your competitors and your customers and adjust your marketing strategies accordingly.

These basic principles of marketing apply to all markets around the world. However, you must adapt your strategies to suit the market in which you are trying to enter or compete within to reflect the specific circumstances.

Para No. 03 Role of Advertisement in International Marketing

International 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 Advertising as a Communication Process

In international markets the process of communicating to a target audience is more complex because communication takes place across multiple contexts, which differ in

terms of language, literacy, and other cultural factors. In addition, media differ in their effectiveness in carrying different appeals. A message may, therefore, not get through to the audience because of people's inability to understand it (due to literacy problems), because they misinterpret the message by attaching different meanings to the words or symbols used, or because they do not respond to the message due to a lack of income to purchase the advertised product. Media limitations also play a role in the failure of a communication to reach its intended audience.

The process of communication in international markets involves a number of steps.

First, the advertiser determines the appropriate message for the target audience. Next, the message is encoded so that it will be clearly understood in different cultural contexts.

The message is then sent through media channels to the audience who then decodes and reacts to the message. At each stage in the process, cultural barriers may hamper effective transmission of the message and result in

miscommunication.

In encoding a verbal message, care needs to be taken in translation. Numerous examples exist of translation problems with colloquial phrases. For example, when the American Dairy Association entered Mexico with its "Got Milk?" campaign, the Spanish translation read "Are You Lactating?" Low levels of literacy may result in the need to use visual symbols. Here again, pitfalls can arise due to differences in color association or perception. In many tropical countries, green is associated with danger and has negative connotations. Red, on the other hand, is associated with weddings and happiness in

China. Appeals to humor or sex also need to be treated with considerable care as their expression and effectiveness varies from one culture to another. The dry British sense of humor does not always translate effectively even to other English-speaking countries. In addition to encoding the message so that it attracts the attention of the target audience and is interpreted correctly, advertisers need to select media channels that reach the intended target audience. For example, use of TV advertising may only reach a relatively select audience in certain countries. Equally, print media will not be effective where there are low levels of literacy. Certain media may also be more effective in certain cultures. For example, radio advertising has substantial appeal in South America where popular music is a key aspect of the local culture.

2. Objectives of the Study

A. To study different aspects of Advertising

Originally, advertising was created to help someone sell something. That means the

ultimate goal of advertising is to increase the advertiser's sales. However, in preparation for an advertising campaign, a more specific advertising goal is required to provide advertisers or advertising agencies a certain direction regarding how the campaign will be executed and how the campaign will be evaluated after the campaign period. Although there are various advertising objectives targeting consumers, they can be largely generalized into the following eight areas:

To increase brand awareness To establish public opinion To improve the advertises image

To inform the other promortion strategies To create a new fashion To increase brand awareness To improve brand attitude To provide product information To convert product concept

B. To study different aspects of International Marketing

The changes happening in the world today largely affect the global market and the economy of many countries around the world. Many business organizations tend to become more competitive to cope with these changes, specifically in the advancement of technology and the improvement of the different forms of communication. Today, due to the emergence of many companies having the technology and the means for greater expansions of market, other existing organizations are forced to innovate and develop, to continually serve and retain their customers. This is also in response to the expansion of their market internationally. This paper discusses the different aspects in international marketing, which encompasses reports in relation to the international marketing plan of a company are as under :-

Development of Marketing Information Systems

Internal Reporting Systems Marketing Research Systems Marketing Intelligence Systems

Marketing Models Identifying Market Potential Use of an International Marketing Plan

C. To study the role of Advertising in International Marketing

The role of advertising in everyday life and as a major employer in post-industrial economies is intimately bound up with processes of contemporary globalization. At centre of the advertising industry are the global advertising agencies which have an important role in developing global brands both nationally and internationally. This book indentifies and addresses questions on the globalization of advertising through detailed study of the contemporary advertising industry in Detroit, Los Angeles and New York City and the way advertising work has changed in the three cities over recent years.

D. To offer findings and suggestions

3.

Limitations of the Study

The above study is limited to the extend of advertising and some role of brand ambassador in improving International Marketing

In the race for global conquest almost all the key players tend to achieve a solid ground in the market. The main issue in achieving this humongous goal is to capture the minds of the people in that particular country but victory doesnt come that easy, because the cross cultural barriers makes the organisation to lose its stake in the global market. The way in which a product is marketed in the western world is not applicable to the middle-east and the eastern world.

Cultural Language Colours and Numbers Dress codes and Nudity

Review of Litreature
1. Review of International Advertising

It 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. 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.

2.

Review of International Markeing

International marketing is marketing on a worldwide scale reconciling or taking commercial advantage of global operational differences, similarities and opportunities in order to meet global objectives"

International marketing is not a revolutionary shift, it is an evolutionary process. While the following does not apply to all companies, it does apply to most companies that begin as domestic-only companies.
Domestic marketing

A marketing restricted to the political boundaries of a country, is called "Domestic Marketing". A company marketing only within its national boundaries only has to consider domestic competition. Even if that competition includes companies from foreign markets, it still only has to focus on the competition that exists in its home market. Products and services are developed for customers in the home market without thought of how the product or service could be used in other markets. All marketing decisions are made at headquarters. The biggest obstacle these marketers face is being blindsided by emerging global marketers. Because domestic marketers do not generally focus on the changes in the global marketplace, they may not be aware of a potential competitor who is a market leader on three continents until they simultaneously open 20 stores in the Northeastern

U.S. These marketers can be considered ethnocentric as they are most concerned with how they are perceived in their home country. Domestic market is a large market that every nation needs. These markets are all restricted to be under control of certain boundaries in that company or country. This type of marketing is the type of marketing that takes place in the headquarters. In domestic markets it helps reduce the cost of competition. By reducing competition the company has a better shot of being more successful in the long run. Also if the companys competition is not a big factor that will affect their business, they have a good shot at making prices higher and people will still purchase that product. A domestic market also gets the opportunity to operate in different areas and this gives the company an opportunity to have bigger markets to advertise to. Even in Domestic markets businesses are still trying to trade with each other to promote their business to other businesses in the area. A good thing that helps out Domestic market is that they might be able to receive tax benefits, because they offer jobs to the nation and give people opportunities for work. Domestic market helps countrys out by offering more jobs bring in good business to the market and also helps with the trading around the market.
International marketing

International marketing is the export, franchising, joint venture or full direct entry of a marketing organization into another country. This can be achieved by exporting a company's product into another location, entry through a joint venture with another firm in the target country, or foreign direct investment into the target country. The development of the marketing mix for that country is then required - international marketing. It can be as straightforward as using existing marketing strategies, mix and tools for export on the one side, to a highly complex relationship strategy including localization, local product offerings, pricing, production and distribution with customized promotions, offers, website, social media and leadership. Internationalization and international marketing meets the needs of selected foreign countries where a company's value can be exported and there is inter-firm and firm learning, optimization and efficiency in economies of scale and scope. the firm does not need to export or enter all world markets to be considered an international marketer.
Global Marketing

Global marketing is a firm's ability to market to almost all countries on the planet. With extensive reach, the need for a firm's product or services is established. The global firm retains the capability, reach, knowledge, staff, skills, insights, and expertise to deliver value to customers worldwide. The firm understands the requirement to service customers locally with global standard solutions or products, and localizes that product as required to maintain an optimal balance of cost, efficiency, customization and localization in a control-customization continuum to best meet local, national and global requirements to position itself against or with competitors, partners, alliances, substitutes

and defend against new global and local market entrants per country, region or city. The firm will price its products appropriately worldwide, nationally and locally, and promote, deliver access and information to its customers im the most cost-effective way. The firm also needs to understand, research, measure and develop loyalty for its brand and global brand equity (stay on brand) for the long term. At this level, global marketing and global branding are integrated. Branding involves a structure process of analyzing "soft" assets and "hard" assets of a firm's resources. The strategic analysis and development of a brand includes customer analysis (trends, motivation, unmet needs, segmentation), competitive analysis (brand image/identity, strengths, strategies, vulnerabilities), and self-analysis (existing brand image, brand heritage, strengths/capabilities, organizational values) [3] Further, Global brand identity development is the process establishing brands of products, the firm, and services locally and worldwide with consideration for scope, product attributes, quality/value, uses, users and country of origin; organizational attributes (local vs. global); personality attributes (genuine, energetic, rugged, elegant) and brand customer relationships (friend, adviser, influencer, trusted source); and importantly symbols, trademarks metaphors, imagery, mood, photography and the company's brand heritage. In establishing a global brand, the brand proposition (functional benefits, emotional benefits and self-expressive benefits are identified, localized and streamlined to be consistent with a local, national, international and global point of view. The brand developed needs to be credible. A global marketing and branding implementation system distributes marketing assets (website, social media, Google PPC, PDFs, sales collateral, press junkets, kits, product samples, news releases, local mini-sites, flyers, posters, alliance and partner materials, affiliate programs and materials, internal communications, newsletters, investor materials, event promotions and trade shows to deliver an integrated, comprehensive and focused communication, access and value to the customers, that can be tracked to build loyalty, case studies and further establish the company's global marketing and brand footprint.

Global marketing specialization

Global marketing is a field of study in general business management to provide valuable products, solutions and services to customers locally, nationally, internationally and worldwide

Elements of the global marketing

Not only do standard marketing approaches, strategies, tactics and processes apply, global marketing requires an understanding of global finance, global operations and distribution, government relations, global human capital management and resource allocation, distributed technology development and management, global business logic,

interfirm and global competitiveness, exporting, joint ventures, foreign direct investments and global risk management. The standard Four Ps of marketing: product, price, placement, and promotion are all affected as a company moves through the five evolutionary phases to become a global company. Ultimately, at the global marketing level, a company trying to speak with one voice is faced with many challenges when creating a worldwide marketing plan. Unless a company holds the same position against its competition in all markets (market leader, low cost, etc.) it is impossible to launch identical marketing plans worldwide. Nisant Chakram(Marketing Management)
Product

A global company is one that can create a single product and only have to tweak elements for different markets. For example, Coca-Cola uses two formulas (one with sugar, one with corn syrup) for all markets. The product packaging in every country incorporates the contour bottle design and the dynamic ribbon in some way, shape, or form. However, the bottle can also include the countrys native language and is the same size as other beverage bottles or cans in that same country.
Price

Price will always vary from market to market. Price is affected by many variables: cost of product development (produced locally or imported), cost of ingredients, cost of delivery (transportation, tariffs, etc.), and much more. Additionally, the products position in relation to the competition influences the ultimate profit margin. Whether this product is considered the high-end, expensive choice, the economical, low-cost choice, or something in-between helps determine the price point.
Placement

How the product is distributed is also a country-by-country decision influenced by how the competition is being offered to the target market. Using Coca-Cola as an example again, not all cultures use vending machines. In the United States, beverages are sold by the pallet via warehouse stores. In India, this is not an option. Placement decisions must also consider the products position in the market place. For example, a high-end product would not want to be distributed via a dollar store in the United States. Conversely, a product promoted as the low-cost option in France would find limited success in a pricey boutique.
Promotion

After product research, development and creation, promotion (specifically advertising) is generally the largest line item in a global companys marketing budget. At this stage of a companys development, integrated marketing is the goal. The global corporation seeks to reduce costs, minimize redundancies in personnel and work, maximize speed of

implementation, and to speak with one voice. If the goal of a global company is to send the same message worldwide, then delivering that message in a relevant, engaging, and cost-effective way is the challenge. Effective global advertising techniques do exist. The key is testing advertising ideas using a marketing research system proven to provide results that can be compared across countries. The ability to identify which elements or moments of an ad are contributing to that success is how economies of scale are maximized. Market research measures such as Flow of Attention, Flow of Emotion and branding moments provide insights into what is working in an ad in any country because the measures are based on visual, not verbal, elements of the ad.