Advertising — страница 8

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practice applies to advertising in the rest of the world. Companies advertising abroad face a variety of difficulties and opportunities, as we will see in this chapter. A bit of history will help put the current explosion of international advertising into perspective. As U.S. companies entered world markets after World War II, consumption of U.S. products grew tremendously. By 1990, U.S. advertising expenditures accounted for $130 billion, or 47 percent of the world total.2 However, in the last 15 years, expenditures by foreign advertisers increased even more rapidly than U.S. expenditures, thanks to improved economic conditions and a desire for expansion. As national economies have expanded and personal incomes have increased, the use of advertising has also increased.

Organizations in every country of the world practice advertising in one form or another. Actual figures are not available, but recent estimates of worldwide advertising expenditures outside the United States exceed $145.6 billion per year, or 53 percent of the worldwide total. The emphasis on advertising in individual countries, though, depends on the country's level of development and its national attitude toward promotion. Generally, advertising expenditures are higher in countries with higher personal income. Today, advertising is used worldwide to sell ideas, policies, and attitudes as well as products. From Procter & Gamble in Cincinnati to Fiat in Turin, Italy, major marketers believe in international advertising, and they back their convictions with sizable advertising

budgets. As Exhibit 19-2 shows, the top 10 worldwide advertisers are based in many different countries. Communist countries, including China, once condemned advertising as an evil of capitalism. But now, with the Soviet Union's economy broadening to include private enterprise, even the Soviets are starting to admit the benefits of advertising. Although decades of propaganda have conditioned Soviet consumers to distrust or ignore advertising, some Western advertisers are successfully gaining the attention of Soviet citizens by featuring instructional or entertaining fare in ads.4 Ad Lab 19-A (p. 674) discusses how Pepsi has successfully used advertising techniques within the Soviet market. Certainly, as a communication form, international advertising contributes to the unification

of the world. And one benefit is enhanced international understanding as advertisers introduce foreign products, values, and ideas into new markets. As technology and ideologies evolve, international advertising will continue to flourish. As a creative director for Ogiivy & Mather in Paris has said, "Noise n'avons pas mal de budgets," which can be loosely translated as, "We're not hurting for business." 1.1 MANAGING INTERNATIONAL Imagine you are the advertising manager of a U.S. company planning to market its products abroad. You are aware that you may need to use a Advertising different creative strategy in the foreign market. You will be speaking to a new audience with a different value system, a different environment, and probably a different language.

Your foreign customers will probably have different purchasing abilities, habits, and motivations than the average North American. The media that U.S. and Canadian advertisers generally use may be unavailable or ineffective in foreign markets. And the advertisements may need to be different, too. You also face another problem. How will you manage and produce the advertising? Will your in-house advertising department do it? Will your domestic advertising agency do it? Or will you have to set up a foreign advertising department or hire a foreign advertising agency? To answer these questions, we need to ask two more: How does your company structure its worldwide marketing operations? Within that structure, what are the most economical and effective means to conduct advertising

activities? 1.2 CREATIVE STRATEGIES IN INTERNATIONAL ADVERTISING As we have discussed throughout this text, advertisers set a creative strategy based on the mix of product concept, target audience, communications media, and advertising message. The same holds true in international advertising, except that advertiser often use different creative strategies in foreign markets than they would in the United States and Canada. There are several reasons for this: Influenced by their own particular environment, foreign markets reflect their local economy, social system, political structure, and degree of technological advancement. Therefore, the advertiser's target audiences may be different, too. The media the advertiser uses in domestic markets may not be available, or as effective