Running head: Analysis of the Current Developments IN International Advertising RegulationS 7th March 2012 Introduction The need to increase revenue and generate more sales has forced many local companies to go global…
In their efforts to be competitive, international firms have emulated various strategies. Some of the notable marketing aspects include e-marketing, social media marketing, product diversification, repositioning of brands among others. In order to enhance product awareness and customer’s loyalty, global companies such as Coca-Cola, Toyota, General motors, Honda, Apple Incorporation, Pepsi among others have taken wide range of advertisements through satellite television, newspapers, internet and other avenues. This paper gives the analysis of the current developments in international advertising regulations and the impact on international marketing practise and consumption. International advertising International advertising involves spreading of messages that are related to a product or a service with an aim of propelling the demand from the existing customers or with the purpose of attracting new consumers. It is important to note that due to the cultural diversity and social aspects in various countries, the way customers perceive or react to an advertisement campaign differs. In this regard, international advertising entails the communicating process that takes into consideration the consumption patterns of the audience, multiple cultures and forms of communication. In the same way, international advertisement has been recognized by international agencies as a profitable business in terms of creating adverts on behalf of organizations. Development of international advertising One of the major causes of heated discussion among the advertising managers and academics is advertising standardization. According to the advertising managers, establishment of a comprehensive advertisement campaign entails the identification of local, intrinsic and firm factors that manipulate global advertising. In order to effectively serve the firms that were aimed at operating at an international level, advertising agencies established themselves in various countries. This was based on the high returns that they anticipated by treating the advertising campaigns as business practices. One of the major aspects that led to development of international marketing was the end of the communist regimes in 1990’s. As a result, companies who were eager to provide new products and attract large number of consumers positioned themselves in the Eastern Europe market. Based on the high number of firms that were scrambling for the available consumers, the global advertising became a priority. According to Grein and Ducoffe (1998), most organizations especially those from US emulated the services of advertising agencies leading to high advertising revenues. For instance, in 1991 the top ten advertising agencies in US earned more than 60% of their income from international billings. To find the solutions and share the plight that hindered advertising in the global market, companies that were focused at international advertising formed organizations such as United Kingdom Institute of Practitioners and US Association of National Advertisers. As companies progressed in their advertisement strategies, innovations in the information technology led to the enhancement of international marketing practice through the introduction of internet. This ensured that international companies targeting customers from various place in the world could now advertise their ...
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