Tag: Advertising

Discuss Case Study for American Express “Do More” Advertising Campaign

Case Study for American Express; American Express had built its reputation as a prestigious charge card. In 1976 the company began its fame ‘‘Do You Know Me?’’ campaign in which celebrities ranging from dancer Mikhail Baryshnikov to puppeteer Jim Henson appears in ads that picture them and an AmEx Green Card bearing their names. In 1987 the ‘‘Portraits’’ campaign follows a similar formula.

Learn, Explain, Discuss Case Study for American Express “Do More” Advertising Campaign!

By aligning the brand with stars, AmEx cultivated the notion that carrying one of its cards was more akin to joining an elite country club than making a financial transaction. Also, learn The Case Study Reference by the Encyclopedia of Major Marketing Campaigns, Thomas Riggs; Discuss Case Study for American Express “Do More” Advertising Campaign!

As later ads sniffed, ‘‘membership has its privileges.’’ In the 1980s, however, AmEx’s careful positioning began to backfire. According to Brandweek, while AmEx ‘‘clung to its old, elite ways,’’ the credit card industry went through monumental changes. With so many cards vying for consumers’ attention, Visa and MasterCard (specifically, the member banks that comprised the Visa and MasterCard consortia) began to cross-market with various businesses so they could offer incentives to consumers. For instance, by teaming up with airlines, Visa and MasterCard could entice consumers to charge purchases with the promise of frequent-flier miles.

Moreover, companies such as AT&T and GM allied themselves with the Visa and MasterCard brands and began to peddle cards that tied into phone service or car purchases. But while the entire industry became hyper-segmented; AmEx continues to sell itself on its reputation alone and lost market share as a result. Also damaging was Visa’s 1987 launch of an attack campaign that stressed Visa’s global acceptance by featuring countless businesses that decline to take American Express.

Now Explain:

Further limiting AmEx’s appeal was the fact that the company continues to charge its hefty $55 membership fee; while Visa and MasterCard offered fee-free cards and low-interest rates. Taken together these factors weakens AmEx considerably. More than 2 million AmEx cardholders canceled their memberships in the early 1990s; and, the company’s share of the domestic credit card market sank from nearly 20 percent in 1990 to 16 percent in 1995, according to Fortune.

In 1995 AmEx began to explore new ways to stanch the flood of cardholders abandoning AmEx and to persuade existing cardholders to use AmEx more often. After negotiating an agreement with Delta Airlines; AmEx was able to offer a frequent-flier program like those of its rivals. The company also debuted its Membership Rewards program; which gave consumers points for each AmEx purchase made. These points could then redeemed for bonuses such as gift certificates, travel vouchers, or car rentals at an array of participating businesses.

AmEx also introduced the Optima card, a revolving credit account similar to Visa and MasterCard in that consumers could carry a balance on it from month to month rather than having to pay it in full at the close of each billing period (as the Green Card required). Moreover, AmEx pushed more retailers to accept its cards. This effort was punctuated by the inauguration of the ‘‘Do More’’ campaign in June 1996. ‘‘This company has had a great history of reinventing itself,’’ Hayes told American Banker. ‘‘This is the next logical step.’’

Target Audience:

Because AmEx wanted to use ‘‘Do More’’ ads to gain new cardholders; the company crafted individual ads to appeal to distinct groups; especially, those that it had no target in its previous advertising. One of the keys approaches AmEx use to broaden its customer base was to employ spokespeople who counteracted the company’s image as; ‘‘a stodgy, premium brand that caters to older customers,’’ according to Wall Street Journal. In 1997, for instance, AmEx signed Woods, who had won the Masters Tournament that year.

As a 21-year-old phenomenon of mixed race; Woods provided AmEx an opportunity to reach younger consumers as well as African-American consumers. It was essential to AmEx’s future that it garners younger consumers; because they ‘‘tend to stick with the first credit card they use’’, explained USA Today. Furthermore, Woods was able ‘‘to cross every demographic line . . . and appeal to an audience that makes $250,000 a year; as well as an audience that makes $25,000,’’ an industry analyst told American Banker.

First goal:

Seinfeld, who pitched the Green Card in spots that aired during such high-profile events as the Super Bowl, was another figure that transcended the traditional AmEx audience. ‘‘The Seinfeld advertising has attracted a new and younger group to the franchise and has also helped promote everyday usage, which is key’’, Hayes told Brandweek. While AmEx was typically associated with the travel and leisure retail sector; the company wants to increase the routine purchases consumers charge each month to their AmEx cards.

Instead of presenting Seinfeld in the same sort of glamorous settings that permeated ‘‘Portraits’’ or ‘‘Do You Know Me?’’ AmEx showed Seinfeld wielding his Green Card at grocery stores and gas stations. One commercial paired Seinfeld with the animated figure of Superman and portrayed Seinfeld (rather than the caped hero) rescuing Lois Lane at a grocery store by pulling out his AmEx card. (She had forgotten her wallet; Superman’s costume had no pockets; Seinfeld paid for the food). Similarly, in the 1998 series of spots for AmEx’s Small Business Services division; the company focused on African-American, Latino, and female entrepreneurs. ‘‘We have represented the three groups who represent the strongest growth in new business starts,’’ an AmEx spokesperson told Brandweek.

Second goal:

In the 1998 ads that did present wealthy and prominent businesspeople; AmEx chose the likes of Jake Burton, a snowboarding pioneer; and, Earvin ‘‘Magic’’ Johnson, a basketball Hall-of-Famer who had been diagnosed with HIV, both of whom Hayes classified as; ‘‘people who have challenged the status quo and appreciated the service we give . . ., not just those that fit the traditional view of success.’’ Despite AmEx’s desire to broaden its consumer base; it was careful not to ‘‘move downscale,’’ as Hayes described it in Brandweek. The company had considerable brand equity rooted in AmEx’s reputation for superior service; and, it did not want to alienate its core group of affluent card users. ‘‘Creating the balance where the brand becomes accessible, yet . . . remains special at the same time, is a real challenge,’’ Hayes said.

AmEx relied on its spokespeople’s ability to walk this tightrope. Though Woods was young, he was nevertheless a golfer; a player of a sport popular among businessmen. Moreover, Woods was not a rebellious upstart. Though barely out of his teens, he was one of the best golfers in the world. Similarly, Seinfeld’s hit sitcom was watched by a huge audience. Popular with many viewers, Seinfeld was not exclusively a Generation X hero; and, the commercials featuring him also appealed to AmEx’s older cardholders as well.

Competition:

Industry leader Visa had persisted in its attacks on AmEx since the 1985 launch of its ‘‘It’s Everywhere You Want to Be’’ campaign. Although Visa’s share of the domestic credit-card market fell to 48.8 percent from 49.2 percent in 1996; it continued to portray businesses, restaurants, and entertainment providers that would not accept AmEx as a way to stress the universality of its cards. Like AmEx, Visa also addressed specific new markets in its 1998 efforts. Under the umbrella of the ‘‘Everywhere’’ theme, Visa targeted Generation X consumers in ‘‘The Attic,’’ a commercial featuring a trendy used-clothing store.

In ‘‘eToys,’’ a television spot for an online merchant, Visa linked itself to the growing e-commerce sector by presenting itself as the credit card of choice for Internet purchases. With a commercial highlighting, Jack Nicklaus’s golf school (which only took Visa); Visa tried to reach more affluent cardholders. A cornerstone of Visa’s marketing strategy was its sponsorship of sporting events.

First Comp:

In addition to being the official sponsor of the National Football League (NFL); horse racing’s Triple Crown races (the Kentucky Derby, the Belmont Stakes, and the Preakness), and NASCAR auto racing; Visa had been an Olympic Games sponsor since 1986. Visa used the 1998 Winter Olympic Games as a platform to reinforce its message of global acceptance. As a Visa executive explained on January 30, 1998; edition of American Banker, ‘‘nothing was better for a brand’’ than associating itself with the Olympics. Like American Express, Visa also endeavored to expand its empire—and its name recognition—beyond credit cards.

In 1998 Visa continued to promote its debit card, the Visa CheckCard, with big-budget advertisements depicting celebrities being hassled for identification when writing a check. Visa touted its small-business cards as well. According to the October 5, 1998, issue of Advertising Age, Visa’s long-term goal was to leverage ‘‘its brand equity into different kinds of payment.’’ MasterCard, too, vied to be consumers’ card of choice.

Second Comp:

Breaking free from a long period of mediocre advertising and negligible growth, in 1997 the company debuted ‘‘Priceless,’’ which ‘‘became one of the industry’s most admired campaigns, creating an almost nonstop buzz . . . [and] raising consumer awareness and consumer usage of the card,’’ Adweek raved. Using the tagline ‘‘There Are Some Things Money Can’t Buy. For Everything Else There’s MasterCard,’’ MasterCard’s agency, McCann-Erickson, made an emotional appeal to its viewers. These print and television advertisements show scenes of various activities, such as a father and child at a baseball game and an older couple celebrating a wedding anniversary.

The voice-over announced the cost of various aspects of these endeavors; and, the commercials all culminated in a ‘‘priceless’’ moment (such as a ‘‘real conversation with 11-year-old son’’ at the end of the baseball spot); followed by the campaign’s tagline. Buoyed by ‘‘Priceless,’’ MasterCard’s purchase volume rose 16 percent from 1997 to 1998 and its market share remains steady; increasing slightly to 27.8 percent from 27.6 percent, according to Credit Card News.

Advertising Strategy:

Because the primary goal of ‘‘Do More’’ was to establish the brand’s relevance to diverse consumers; AmEx used a targeted strategy to pair specific messages with specific groups. For instance, the print executions portraying small-business entrepreneurs ran almost entirely in publications such as Success, Entrepreneur, and Forbes. The initial Tiger Woods ads touting American Express Financial Advisors favored major newspapers (especially the Wall Street Journal, the New York Times, and USA Today); and, newsweeklies (including Time and Newsweek) over lifestyle publications.

AmEx chose to air the Seinfeld commercials on mainstream, high-profile television programming; because, the company hoped the comedian could connect a mass audience of credit-card users to the Green Card. ‘‘Superman’’ first appeared in NFL playoff games, which reached viewers across demographic lines. The message of ‘‘Does More’’ was that AmEx—not Visa or MasterCard—could improve one’s ventures and that AmEx was a global solution always available to make things better (or easier). Part of the way AmEx delivered this message was by making its ads attention-getters.

First part:

The spokespeople chosen to represent the various facets of the brand were not only well know but also had a certain renegade charm. Certainly, Johnson was one of the greatest basketball players of all time; and, his excellence was intended to mirror AmEx’s reputation for service and prestige. But Johnson had also shocked the nation when he announces he was HIV-positive. Pundits had decried him, and some fellow basketball players even shunned him. Using him in the AmEx spots was a daring choice and attracted much notice.

Similarly, the ‘‘Superman’’ spot was designed ‘‘to break through the commercial clutter,’’ Hayes said. Instead of banking on Seinfeld’s celebrity, AmEx created a commercial that juxtaposed him with a comic book character; and, spoofed the notion of any credit card (or personality) being able to ‘‘save the day’’. As he took his AmEx card out of his pocket, Seinfeld spun around in a blur. An onlooker asked, ‘‘What’s with the spinning?’’ ‘‘He idolizes me,’’ Superman wryly explained. ‘‘It’s embarrassing.’’ Again, the notion was to twist the genre slightly; to prompt viewers to sit up and take note that American Express was not quite what everyone assumes it to be.

Second part:

In 1999 AmEx extended its association with Seinfeld. One noteworthy spot shows the comedian embarking on a cross-country road trip after observing that he needed to ‘‘get some kind of real-life’’. In keeping with his persona, his adventures were simultaneously largescale and trivial: among other activities; he saw Mount Rushmore, held a cup of coffee that was too hot, had a conversation with an attractive blond woman, and visited Saint Louis Arch.

American Express updated the ‘‘Do More’’ concept in 2000; adapting the tagline to a sub-campaign dubbed ‘‘Moments of Truth,’’ the first phase of which consisted of five TV spots featuring ordinary people. Each of these commercials focused on the fact that AmEx offered ‘‘more’’ services than its competitors. For instance, American Express’s travel-assistance benefits were touted in one spot that shows a woman waiting fruitlessly at an airport baggage claim. Another spot emphasized American Express’s partnership with the bulk-sales supermarket Costco; yet another focused on the company’s online-banking offerings via the juxtaposition of a ‘‘wired’’ young woman with her ‘‘analog’’ father, who was paying bills by hand.

Third part:

The tagline’s flexibility was further demonstrated by that year’s highest-profile and most imaginative spot; which features Tiger Woods playing an outsize game of golf on the streets of Manhattan. Woods was shown swatting a ball over the Empire State Building and then from Central Park all the way downtown to Wall Street; before sinking a putt in a paper cup positions on the Brooklyn Bridge. In this case ‘‘do more’’ was intended as a suggestion that American Express could help cardholders realize their most ambitious hopes.

American Express Company’s ‘‘Do More’’ campaign truly was a global one, running in 23 different countries simultaneously. Although the same basic ads were used everywhere, the ad agency Ogilvy & Mather changed small details when appropriate. ‘‘We’ve created an overall platform for positioning,’’ John Hayes, the company’s head of global advertising, told Advertising Age. ‘‘We make modifications and customizations everywhere to make sure what we do is right.’’ Golfer Tiger Woods proved an especially valuable global representative—particularly in Japan; where golf was a passion among a large percentage of the population.

Discuss Case Study for American Express “Do More” Advertising Campaign. Image from Pixabay.

Campaign Outcome:

When AmEx inaugurated ‘‘Do More’’ in 1996, critics predicted that the company would lose its ability to differentiate itself by shedding some of its snobbish images. Ogilvy and AmEx quickly seemed to prove the skeptics wrong; however: the company’s 1996 purchase volume rose 15.6 percent, and ‘‘after years of decline’;’ its 1997 share of the domestic credit-card market climbed to 17 percent from 16.4 percent, according to Advertising Age. AmEx posted global market share declines in 1998 and 1999; but, this was partly a result of the Visa and MasterCard emphasis on debit cards; a product AmEx did not offer.

AmEx countered with its most successful product launch in recent memory, the Blue Card, aimed at college-age consumers and other young adults. The ranks of Blue Card holders steadily increased in 2000 and 2001; and, AmEx unveiled a Blue Card designed for small-business owners. Although Blue Card’s marketing did not fall under the ‘‘Do More’’ umbrella; it did build on the strategy of democratizing the traditionally upscale AmEx brand image; an approach whose merits were no longer questions at the beginning of the new century. This change in perception was perhaps a measure of the success of the brand re-positioning accomplish through the ‘‘Do More’’ campaign.

The Seinfeld and other ‘‘Do More’’ spots aired through 2001; but AmEx, like many advertisers, struggled to find appropriate ways to promote itself in the somber months after the terrorist attacks of September 11, 2001. AmEx’s post-9/11 difficulties were compounded by the fact that the company’s headquarters were located at the World Financial Center, adjacent to the Twin Towers, which had collapsed. In early 2002 the ‘‘Do More’’ tagline was dropped in favor of ‘‘Make Life Rewarding’’. Both Seinfeld and Woods continued to involve with the American Express brand.

May 26, 2018
What do you understand about International Advertising?
International Advertising essay, generally speaking, is the promotion of goods, services, companies, and ideas, usually in more than one country performed by an identified sponsor. Marketers see advertising as part of an overall promotional strategy. Other components of the promotional mix include publicity, public relations, personal selling, and sales promotion. Advertising is a cogent communication attempt to change or reinforce ones’ prior attitude that is predictive of future behavior. Also learn, What is Major, Key, Dimensions of Organizational Culture? Business Promotion of International Advertising!

Learn, Understand about International Advertising, Meaning, and Definition.

It can view as a communication process that takes place in multiple cultures that differ in terms of values, communication styles, and consumption patterns. It is also a business activity involving advertisers and 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.

Global advertising or international advertising consists of collecting, processing, analyzing, and interpreting information.

There are two main purposes of international advertising research:
- To assist business executives to make profitable international advertising decisions for their specific products and services, and.
- To contribute to the general knowledge of international advertising that is potentially useful to a variety of business executives, educators, government policymakers, advertising self-regulatory organizations, and others interested in understanding the process and effects of international advertising.
More Information!

International advertising involves recognizing that people all over the world have different needs. Companies like Gillette, Coca-Cola, BIC, and Cadbury Schweppes have brands that are recognizing across the globe. While many of the products that these businesses sell are targeted at a global audience using a consistent marketing mix, it is also necessary to understand the regional differences, hence it is important to understand the importance of international marketing.

Organizations must accept that differences in values, customs, languages, and currencies will mean that some products will only suit certain countries and that as well as there being global markets e.g. for BIC and Gillette razors, and for Coca-Cola drinks. There are important regional differences for example advertising in China and India needs to focus on local languages. Just as the marketing environment has to assess at home, the overseas potential of markets has to carefully scrutinize. Finding relevant information takes longer because of the unfamiliarity of some locations. The potential market size, degree, and type of competition, price, promotional differences, product differences as well as barriers to trade have to analyze in order to advertise our product effectively in different countries.

Why Do This?

Advertising is a paid message used to promote a product, service, or idea to a specific audience. International advertising refers to advertising which is carried out in multiple countries around the world. Effective advertising requires specialized cultural knowledge that considers differences between target audiences in different countries. International advertising is considering not only a communication process but a business activity, an industry, and a reflection of society as a whole.

The primary goal of advertising is to effectively communicate with the target audience. The communication process involves multiple aspects that are affecting by media, culture, literacy, and language. For example, a multinational company that wishes to place newspaper ads will find that. Their ads will most likely be unsuccessful in countries that have significantly low literacy rates. Additionally, cultural norms and values differ among countries. For example, a television commercial for birth control does not cause concern in many Western countries. While the same ad televised in a conservative Muslim country, such as Saudi Arabia, maybe very controversial.

How, Where, and Which types?

International advertising can also consider a business practice by which an advertising firm attempts to influence audiences in other countries about itself, and its products and services. Advertising agencies decide whether to create global or regional campaigns that are capable of building a global image of a product or service. Agencies create advertisements and place them in the appropriate media outlets throughout the world.

The worldwide industry of international advertising consists of a large network of advertising agencies. The network is made up of small and medium-sized agencies located within one country and large agencies. That have multiple offices in multiple countries throughout the world. This industry network is responsible for communication via the business activity of advertising.

Finally, international advertising reflects multiple facets of society, including values, morals, lifestyles, and gender roles. The image of a product or service created by advertising plays a part in promoting specific facets of society. Criticism of global campaigns claims that these images are promoting Western cultures and values. International advertising may act as a force that promotes these cultures and values with many products becoming objects of desire for others in the world. Additionally, communication through a regional or global campaign can also promote integration and diversity by establishing common bonds and creating universal symbols. That is able to connect people from different areas of the world.

Reference
1. Explaining – //www.mbaknol.com/international-business/international-advertising/
2. Meaning – //en.wikipedia.org/wiki/International_advertising
3. Photo Credit URL – //www.trustedclothes.com/blog/wp-content/uploads/2016/06/night-square.jpg
February 24, 2018
How to Explain the concept of International Advertising?
International Advertising, generally speaking, is the promotion of goods, services, companies, and ideas, usually in more than one country performed by an identified sponsor. This article explains about Concept of International Advertising deeply discussion. Marketers see advertising as part of an overall promotional strategy. Other components of the promotional mix include publicity, public relations, personal selling, and sales promotion.

Study and Learn, the Concept of International Advertising.

Advertising is a cogent communication attempt to change or reinforce ones’ prior attitude that is predictive of future behavior. Also Learn, What is International Advertising? Meaning and Definition, the Concept of International Advertising!

It can view as a communication process that takes place in multiple cultures that differ in terms of values, communication styles, and consumption patterns. It is also a business activity involving advertisers and advertising agencies that create ads and buy media in different countries. The 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.

Deeply Explain:

International advertising is becoming increasingly complex; more and more local and international companies are competing for consumers who are increasingly sophisticated and demanding. International advertising defines as the non-personal communication by an identified sponsor across international borders, using broadcast, print, and or interactive media.

It requires dissemination of a commercial message to target audiences in more than one country. Target audiences vary 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 are spoken. How the advertising function is organized also varies.

International advertising can explain as the communication process that takes place in different cultures that varies in terms of values, communication styles, and consumption patterns. International advertising is also a business activity involving advertisers and advertising agencies that create ads and buy media in different countries. It is also a major force that both reflects social values and propagates certain values all over the world.

The International Communication Process:

The international communication process involves using the entire promotional mix to communicate with the final consumer. First, the appropriate message is determining the target audience by the advertiser. Next, the international sponsor (sender), usually representing by an advertising agency, encodes a message into words and images.

The message is then translating into the language of the target market and transmitting through a channel of media channels to the audience who then decodes and reacts to the message. Cultural barriers may hamper the effective transmission of the message at each stage in the process and result in miscommunication.

Art Direction:

Art direction is involving with the visual presentation- the body language of print and broadcast advertising. Some types of visual presentation are universally understood. Revlon, for example, has used a French producer to develop television commercials, English and Spanish for use in the international markets. These commercials, which are the film in Parisian settings, communicate the universal appeals and specific advantages of Revlon products.

By producing its ads In France, Revlon obtains effective television commercials at a much lower price than it would have to pay for similar –length commercials produce in the US. Pepsi Co has use four basic commercials to communicate its advertising themes. The basic setting of young people having fun at a party or on a beach has adapted to reflect the general physical environment and racial characteristics of North America, South America, Europe, Africa, and Asia. The music in these commercials has also adapted to suit regional tastes.

The international advertiser must make sure that visual executions are not inappropriately extending into markets. Benetton recently encounters a problem with its “United Colors of Benetton” campaign. The campaign appeared in 77 countries, primarily in print and on billboards. The art direction focused on striking, provocative interracial juxtapositions- a white hand a black hand handcuffed together, for example, another version of the campaign, depicting a black woman nursing a white baby, won adverting awards in France and Italy. However, because the image evoked the history of slavery in America, that particular creative execution was not in the U.S market.

Cultural Considerations:

Knowledge of cultural diversity, especially the symbolism associated with cultural traits, is essential when creating advertising. Local country managers will be able to share important information, such as when to use cautions in advertising creativity. Use of colors and man-women relationships can often be stumbling blocks. For example, white in Asia is associated with death. In Japan, intimate scenes between men and women are considered to be in bad taste; they are an outlaw in Saudi Arabia.

Advertising Communication System:

Advertising communication always involves a perception process and four of the elements shown in the model: the source, a message, a communication channel, and a receiver. Also, the receiver will sometimes become a source of information by talking to friends or associates. This type of communication is termed word-of-mouth communication, and it involves social interactions between two or more people and the important ideas of group influence and the diffusion of information.

An advertising message can have a variety of effects upon the receiver. It can
- Create awareness,
- Communicate information about attributes and benefits,
- Develop or change an image or personality,
- Associate a brand with feelings and emotions,
- Forms group norms, and
- Precipitate behavior.
Thus we see advertising has multiple layers to it. A lot more than what meets the consumer’s eye goes into creating a successful advertisement or an advertisement campaign. In today’s era of consumerism, the need for advertisements to break the clutter and stand out becomes imperative. Advertising has multiple media at its disposal with each having its respective strengths and limitations.

For instance, the radio still, has a reach to rural India like no other medium can. Also, it overcomes the barrier of illiteracy in a developing country like India. On the other hand mailers, pop-ups are an excellent way to remain visible to the urban techno-savvy Internet using consumers. Depending on the target audience the medium best suited should exploit to the hilt.

How to Explain the concept of International Advertising? #Pixabay
July 31, 2017
What is International Advertising? Introduction and Meaning
International Advertising Essay; generally speaking, is the promotion of goods, services, companies, and ideas, usually in more than one country performed by an identified sponsor. Marketers see advertising as part of an overall promotional strategy. Other components of the promotional mix include publicity, public relations, personal selling, and sales promotion.

Explaining, Essay, What is International Advertising?

Advertising is a cogent communication attempt to change or reinforce ones’ prior attitude that is predictive of future behavior. Also, learn, What do you understand about International Advertising? Meaning, Definition, and Start-UP.

It can view as a communication process that takes place in multiple cultures that differ in terms of values, communication styles, and consumption patterns. It is also a business activity involving advertisers and advertising agencies that create ads and buy media in different countries. The total of these activities constitutes a worldwide industry that is growing in importance. Globally advertising is also a major force that both reflects social values and propagates certain values worldwide.

Meaning of International Advertising:

Global advertising or international advertising consists of collecting, processing, analyzing, and interpreting information.

There are two main purposes of international advertising research:
1. To assist business executives to make profitable foreign advertising decisions for their specific products and services, and.
2. To contribute to a general knowledge of foreign advertising. That is potentially useful to a variety of business executives, educators, government policymakers.
Advertising self-regulatory organizations and others were interesting in understanding the process and effects of global advertising.

Export agencies and their foreign affiliates serving international industrial (now called business-to-business) advertisers tended to translate and adapt domestic advertising materials for use abroad. Agencies serving international advertisers of consumer products tended to depend somewhat more on foreign correspondent agencies to develop localized advertising campaigns appropriate for their particular markets.

When was started International Advertising?

In the first 30 years of the 1900s, especially in the prosperous 1920s. Increasing numbers of European and US manufacturers sold branded consumers or industrial products outside their home countries. Some of them utilized ”export advertising agencies“. Most such agencies depended primarily on foreign agencies (called affiliate, associate, or correspondent agencies) either to modify domestic campaigns or to initiate entirely new campaigns, whichever was appropriate from their clients’ point of view.

Between 1930 and the mid-1950s the number of the export or globally advertising agencies declined. In 1958 in the USA six full-service advertising agencies and a handful of export/foreign advertising agencies were capable of providing international services for their US clients. These six accounted for more than 90% of all international billings of US agencies. Into the 1960s most exporters and manufacturers with foreign subsidiaries necessarily continued to utilize.

Local foreign advertising agency services available in the countries in which they did business. In the 1970s and 1980s, many consolidations and mergers led to the emergence of large foreign media buying organizations and large holding companies consisting of groups of globally advertising agencies. From the 1980s onward, advertising practices within domestic advertising agencies in Europe and the USA continued to improve.

What is International Advertising? Introduction and Meaning
July 31, 2017
Explain the Types of Faced Challenges in Global Advertising.

What are some Challenges Faced by Global Advertising? International Marketing Essay can be a tricky business. With the increase in global trade, international companies cannot afford to make costly advertising mistakes if they want to be competitive and profitable. Understanding the language and culture of target markets in foreign countries is one of the keys to successful international or global advertising.

Here are Explaining the Types of Faced Challenges in Global Advertising Essay.

Too many companies, however, have jumped into foreign markets with embarrassing results. Out of their blunders, a whole new industry of translation services has emerged. Also Learn, What do you understand about International Advertising? the Types of Faced Challenges in Global Advertising. American companies have identified huge markets internationally for their products and services. The markets are huge in terms of population, in countries such as China and India.

The purchasing power of consumers and businesses in many countries is also significant enough for American firms to want to compete in these markets. However, international marketing is not without pitfalls, and U.S. companies have made costly mistakes by not adequately researching international markets before they commit resources there. How to Explain The Concept of International Advertising?

Global Advertising deeply discusses their types of Challenges:

The following Challenges below are;

Identifying a True Market Need.

A key to success in business is offering products and services for which customers have a compelling need. The customer has a problem that needs to solve, and the product or service provides the solution in such an effective way that its benefits are not difficult to communicate. Identifying the true needs of large numbers of people in a foreign country is not easy. Not having lived in their culture experiencing their day-to-day lives, American marketing executives can err by assuming that what people in other countries want or need exactly matches the wants and needs of American consumers.

Dilution of Brand-Name Power.

Due to the Internet, movies, and other forms of entertainment, American culture and the corporate symbols of that culture–brand names–are well known across the globe. This does not mean the American companies & rs quo; products will be popular when introduced in other countries. Being aware of a brand name isn’t the same as preferring it. It can be a long and expensive process to gain the trust of consumers who have used their own local companies’ products for years or even generations. The American companies can perceive as attempting to take over the position long held by local companies, causing resentment.

Cultural Nuance.

Consumers are influencing to purchase products by marketing messages delivered through the media, including print media such as magazines. Humor often use in commercial messages to get the consumer to pay attention. But what considers extremely funny in one culture can perceive as confusing or insulting in another. To produce effective advertising requires more than an accurate translation of the message from one language to another. It requires a deep understanding of the culture, customs, morals, and even religious views that predominate in that country. What motivates consumers to buy products varies from country to country.

Communication Style.

Business executives from different countries can encounter several barriers to effective communication besides obvious language differences. The traditional pace of business negotiations can be different. Americans sometimes want to hurry negotiations along, whereas in some other countries emphasis places on building relationships before a business deal seriously considers. Executives from other countries may place a higher value on things such as facial expression instead of just the words that are saying.

Distance and Time.

Even with technologies such as video conferencing, executives in other countries may prefer to establish relationships on a personal level. For a smaller American company, this can mean a significant investment in travel costs and having key executives out of the office for extended periods. Time zone differences can make it difficult to coordinate projects where collaboration requires. Executives on the West Coast of the U.S. are just getting to work in the morning when their European counterparts are winding down for the day.

Finding Reliable Partners.

American firms often establish relationships with distributors located in the countries whose markets they are seeking to enter. They hire sales reps based in those countries. They may engage in local marketing and public relations firms to assist them. Because the American firm might have no prior experience in that country, finding people who are trustworthy and competent can be a challenge.

The faulty Translations.

The value of understanding the language of a country cannot overestimate. Translation mistakes are at the heart of many blunders in Global advertising. Since a language is more than the sum of its words, a literal, word-by-word dictionary translation seldom works.

The following examples prove this point. Otis Engineering Company once displayed a poster at a trade show in Moscow that turned heads. Due to a poor translation of its message, the sign boasted that the firm’s equipment was great for improving a person’s sex life.

The Parker Pen Company suffered an embarrassing moment when it realized that a faulty translation of one of its ads into Spanish resulted in a promise to “help prevent unwanted pregnancies”.

Automobile:

Automobile manufacturers in the United States have made several notorious advertising mistakes that have been well-publicizing. General Motors learned a costly lesson when it introduced its Chevrolet Nova to the Puerto Rican market.

Although “nova” means “star” in Spanish, when it spokes, it sounds like “NOVA” which means it doesn’t go. Few people wanted to buy a car with that meaning. When GM changed the name to Carrie, sales picked up dramatically.

Ford:

Ford also ran into trouble with the name of one of its products. When introducing a low-cost truck called the “Fiera” into Spanish-speaking countries, Ford didn’t realize until too late that the name meant “ugly old woman” in Spanish.

Another American auto manufacturer made a mistake when it translated its Venezuelan ad for a car battery. It was no surprise when Venezuelan customers didn’t want to buy a battery that was advertising as being “highly overrated.”

Airline:

Airline companies have also experienced problems with poor translation. A word-by-word translation ruined a whole advertising campaign for Braniff Airlines. Hoping to promote its plush leather seats, Braniff ad urged passengers to “fly on leather.” However, when the slogan was translated into Spanish, it told customers to “fly naked.”

Another airline company, Eastern Airlines, made a similar mistake when it translated its motto, “We earn our wings daily” into Spanish. The poor translation suggested that its passengers often ended up dead.

Pepsi’s:

Marketing blunders have also been made by food and beverage companies. When translated into German, Pepsi’s popular slogan, “Come Alive with Pepsi” came out implying “Come Alive from the Grave.” No wonder customers in Germany didn’t rush out to buy Pepsi. Even a company with an excellent international track record like Kentucky Fried Chicken also suffered from faulty translation. A lot of sales were lost when the catchphrase “Finger Lickip good” became “eat your fingers off” in the Chinese translation.

A manufacturer of one laundry detergent made an expensive mistake in a promotional campaign in the Middle East. The advertisements showed a picture of a pile of dirty clothes on the left, a box of the company’s detergent in the middle, and clean clothes on the right. Unfortunately, the message was incorrectly interpreted because most people in the Middle East read from right to left. It seemed to them that the detergent turned clean clothes into dirty ones.

Cultural oversights can be Disastrous.

Successful international marketing doesn’t stop with good translations—other aspects of culture must research and understand if marketers are to avoid blunders. When marketers do not understand and appreciate the values, tastes, geography, climate, superstitions, the level of literacy, religion, or economic development of a culture, they fail to capture their target market.

For example, when a popular American designer tried to introduce a new perfume in the Latin American market, the product aroused little interest and the company lost a lot of money. Ads for the new fragrance highlighted its fresh camellia scent. What marketers had failed to realize was that camellias are traditionally using for funerals in many South American countries.

Deeply Discussion:

Procter and Gamble have been successful in marketing their products internationally for many years. Today, overseas markets account for over one-third of its sales. However, the company’s success in this area didn’t happen overnight. Procter and Gamble initially experienced huge losses because marketing managers did not recognize important cultural differences. For instance, when P&G first entered the Japanese market with its popular Cheer laundry detergent, most Japanese housewives weren’t interested.

The promotional campaign that emphasized Cheer as an effective “all temperature” detergent was lost on the Japanese who usually wash clothes in cold water. Although the ad had been quite successful in the United States where clothes are washing in all temperatures. It fell flat in Japan. All of this could have been avoiding if P&G marketers had done more preliminary research before launching the campaign. Once P&G changed its strategy and promised superior cleaning in cold water, sales of Cheer picked up dramatically.

Extra information:

The use of numbers can also be a source of problems for Global Marketers. Since every culture has its own set of lucky and unlucky numbers, companies need to do their homework if they want to avoid marketing blunders. A US manufacturer of golf balls learned this lesson the hard way when it packaged its product in groups of four for export to Japan. The company couldn’t figure out why the golf balls weren’t selling well until it realizes that in Japanese the word for the number four also means death. In Japan four and nine are very unlucky numbers which should avoid by marketers.

Even illustrations need to carefully examine. A culturally offensive picture can ruin an advertisement even if the written message properly translates. McDonnell Douglas Corporation made an unfortunate error in an aircraft brochure for potential customers in India. It included a picture of men wearing turbans, which was not appreciated by the Indians. A company spokesman reported, “It was politely pointed out to us that turbans were distinctly Pakistani Moslem”. The artist for the ad had used an old National Geographic magazine to copy the picture.

Preventing Blunders.

Having awakened to the special nature of international or global advertising. Companies are becoming much more conscientious in securing accurate translations. They are also becoming much more sensitive to the cultural distinctions and variables. That play such an important role in any international business venture.

Above all, the best way to guard against errors is to hire trained professional translators. Who thoroughly understand the target language and its idiomatic usage. These translators should be very familiar with the culture and people of the country and have a grasp of the technical aspects of the industry.

Extra Things:

Many Global companies are using a technique calls “back translation,” which greatly reduces the possibility of advertising blunders. The process of “back translation” requires one person to translate the message into the target language and another person to translate the new version back into the original language. The purpose is to determine whether the original material and the re-translated material are the same. In this way, companies can ensure that their intended message is conveying.

Effective translators aim to capture the overall message of an advertisement. Because a word-for-word duplication of the original rarely conveys the intended meaning and often causes misunderstandings. In designing advertisements to use in other countries. Marketers are recognizing the need to keep messages as short arid simple as possible and to avoid idioms, jargon, and slang that are difficult to translate.

Similarly, they avoid jokes, since humor does not translate well from one culture to another. What considers funny in one part of the world may not be so humorous in another? The bottom line is that consumers interpret advertising in terms of their own cultures. As the global marketplace opens up, there is no room for linguistic or cultural blunders.

Explain the Types of Faced Challenges in Global Advertising.

July 31, 2017
The aspect of International Advertising in Social Life

What is International Advertising? This article about an aspect of International Advertising in Social Life, deeply explains. Why global market need International Advertising? Global advertising or international advertising consists of collecting, processing, analyzing, and interpreting information.

The aspect of the International Advertising Essay in Social Life.

There are two main purposes of international advertising research: (1) to assist business executives to make profitable international advertising decisions for their specific products and services and (2) to contribute to the general knowledge of international advertising that is potentially useful to a variety of business executives, educators, government policymakers, advertising self-regulatory organizations and others interested in understanding the process and effects of international advertising.

Aspects of Advertising on Social Life:

When we consider International Advertising from the advertiser’s point of view, according to them the primary objective of an advertisement is that the product or services which they are offering should sell in the market. And in achieving the main objective of selling the product or services there are other profound consequences.

Advertising puts an influence that is both persuasive and pervasive. Through the selective reinforcement of certain language and values and social goals, it acts as important force attitudes that underlie behavior not only in the marketplace but also in all aspects of life.

Global Advertising:

In an international marketing concern, advertising has an important social influence in several ways: many of the international advertising is designed to promote and introduce new products from one market to another.

Often this results in the sudden change in lifestyles, behavior patterns of a society, stimulating, for example, the adoption of fast food, casual attire or hygiene, and beauty products.

International advertising encourages a desire for products from other countries; it creates expectations about “the good life”, and establishes new areas of consumption. Advertising is thus a potent force for change, while selectively reinforcing lifestyles, certain values, and role models.

Global Market:

We can see examples of brands like Levi’s, Adidas, Reebok, Nike, Marlboro, and McDonald’s. Which are familiar in almost every corner of the world. These brands have become an object of desire by the teen and young adults throughout the world. Even the scenes and images which have been shown in international advertising are either in western in origin or reflect western consumption behavior and values.

Even where it had been adapting to local scenarios and role models these shown often come from sectors of society. Such as the upwardly mobile urban middle class. Which embrace or are receptive to Western values and mores. As a consequence, a criticism frequently leveled at international advertising is that it promulgates Western values and morals; especially from the US.

Global Localization:

This is generally regarded as negative in societies with strong religious and moral values. Which is run as a counter to those of the west? For example the Islamic societies in the Middle East. When Western advertising shows sexually explicit situations or shows women in situations. Which is considering as inappropriate or immoral? It is likely to consider a subversive force undermining established cultural mores and values.

Similarly, in some countries such as France, there is strong opposition to the imposition of US culture, values, and use of English in advertising. Promotion of tobacco products by US and UK companies in countries. Where there is no legislation regulating or banning cigarette advertising has also been criticizing.

Global Communication:

At the same time, international advertising also acts as an integrating force across national boundaries. It makes the message known using universal symbols and slogans and establishes. A common mode of communication among target audiences in different parts of the world. At the same time, multicultural values are reinforcing by advertisers. Who adopt images incorporating peoples of different nations and diverse cultural backgrounds. For example, the Colors of Benetton campaign or the British Airways “Peoples of the World” campaign.

Consequently, while, on the one hand, international advertising can view as a colonizing force propagating Western values and morale throughout the world. It is also an important force that integrates societies and establishes common bonds, universal symbols, and models of communication among peoples in different parts of the world.

The aspect of International Advertising in Social Life.

July 31, 2017