ADVERTISING AGENCIES & GLOBALIZATION

Advertising Agencies & Globalization

Table of Contents

INTRODUCTION3

Marketing3

Stage 1: Set Advertising Objectives3

Stage 2: Set the Advertising Budget3

Stage 3: Determine the key Advertising Messages4

Stage 4: Decide which Advertising Media to Use5

Stage 5: Evaluate the results of the Advertising Campaign6

Marketing, Advertising and Integrated Marketing Communications6

Advertising Agencies And Their Relevance In The Prospective Future8

ADVERTISING AGENCY13

History13

Current Affairs & Hot Topics16

Critical Analysis17

RESEARCH METHODOLOGY21

The Control Variables21

Method of Analysis21

Testing the Accuracy of the Predictions for the Individual Countries22

A Global Application of the Results23

CRITICAL REVIEW24

CRITICAL DATA ANALTSIS & CONCLUSION29

POSSIBLE FUTURE QUESTIONS37

REFERENCES38

APPENDIX51

Advertising Agencies & Globalization

INTRODUCTION

Marketing

According to Kotler (2008),

"Advertising is any paid form of non-personal presentation and promotion of ideas, goods and services through mass media such as newspapers, magazines, television or radio by an identified sponsor".

There are five main stages in a well-managed advertising campaign:

Stage 1: Set Advertising Objectives

An advertising objective is a specific communication task to be achieved with a specific target audience during a specified period of time. Advertising objectives fall into three main categories:

(a) To inform - e.g. tell customers about a new product

(b) To persuade - e.g. encourage customers to switch to a different brand

(c) To remind - e.g. remind buyers where to find a product

Stage 2: Set the Advertising Budget

Marketers should remember that the role of advertising is to create demand for a product. The amount spent on advertising should be relevant to the potential sales impact of the campaign. This, in turn will reflect the characteristics of the product being advertised.

For example, new products tend to need a larger advertising budget to help build awareness and to encourage consumers to trial the product. A product that is highly differentiated may also need more advertising to help set it apart from the competition - emphasising the points of difference.

Setting the advertising budget is not easy - how can a business predict the right amount to spend. Which parts of the advertising campaign will work best and which will have relatively little effect? Often businesses use "rules-of-thumb" (e.g. advertising/sales ratio) as a guide to set the budget.

Stage 3: Determine the key Advertising Messages

Spending a lot on advertising does not guarantee success (witness the infamous John Cleese campaign for Sainsbury). Research suggests that the clarity of the advertising message is often more important than the amount spent. The advertising message must be carefully targeted to impact the target customer audience. A successful advertising message should have the following characteristics:

(a) Meaningful - customers should find the message relevant

(b) Distinctive - capture the customer's attention

(c) Believable - a difficult task, since research suggests most consumers doubt the truth of advertising in general

Stage 4: Decide which Advertising Media to Use

There are a variety of advertising media from which to chose. A campaign may use one or more of the media alternatives. The key factors in choosing the right media include:

(a) Reach - what proportion of the target customers will be exposed to the advertising?

(b) Frequency - how many times will the target customer be exposed to the advertising message?

(c) Media Impact - where, if the target customer sees the ...