- Câu hỏi 779057:
The Global Product – the World as a Single Market
AFor business, the world is becoming a smaller place. Travel and transportation are becoming quicker and easier, communications can be instantaneous to any part of the world and trade barriers are breaking down. Consequently, there are tremendous opportunities for businesses to broaden their markets into foreign countries. The challenge facing those promoting products globally is to determine whether marketing methods should be adapted to different markets based on specific cultural factors.
BMany theorists argue that, with the ‘shrinking of the world, global standardization is inevitable. Over time, and as economies develop, it has been suggested that consumer buying patterns will blend into on another and national differences may disappear. Kellogg, the American breakfast cereal producer, has been very influential in challenging consumption patterns in countries outside the United States. In France, for example, breakfast cereals were almost unheard of, and market research suggested that the market was closed to companies like Kellogg. However, today, there is a demand for breakfast cereal across France. Nevertheless, the standardization of products for worldwide consumption in this way is rarely the most effective strategy as it evident from an analysis of the following key aspects of global marketing.
CFirst of all, it is considered better business practice by many large, established companies to change their products from one country to the next. Take the example of Coca-Cola. The recipe for this drink is change to suit local tastes – the brand in the US is much sweeter than in the UK, whilst in India the product’s herbs and flouring are given more emphasis. In terms of the car industry, it would be too expensive for manufacturers to develop and build completely different vehicles for different markets yet a single global model is likely to appeal to no one. In response to varying needs, Nissan, for example, sells in 75 different markets, but has eight different chassis designs. The Ford Mondeo was designed with key features from different markets in mind in an effort to make its appeal as broad as possible. The best policy, as far as most multi-national companies are concerned, is to adapt their product to a particular market.
DSecondly, it is important to consider whether a product should be launched simultaneously in all countries (known as a ‘sprinkler launch’) or sequentially in one market after another (‘a waterfall launch’). In practice, most companies producing consumer goods tend to launch a new product in one or two markets at a time rather than attempt to launch a product across a range of countries at a single time. Many high-tech products such as Blu-ray players reach the market in Japan before reaching the UK. Hollywood films are often seen in the United States weeks or months before they arrive in other countries.
EThe advantage for firms is that it is easier to launch in one market at a time. Effort and concentration can be focused to ensure the best possible entry into the market. Moreover, for technical products especially, any initial problems become apparent in a single market and can be corrected prior to launch elsewhere. Even though this method can be time-consuming, it is usually a safer approach than a simultaneous launch. Despite this, in certain highly competitive markets such as computer chips, companies such as Intel tend to launch their new products internationally at the same time to keep the product ahead of its competitors.
FThe final consideration when planning to enter a global market, rather than assuming the product will suit all markets is to take cultural differences into account. Prices have to convert to a different currency and any literature has to be translated into a different language. There are also less tangible differences. It is quite possible that common practices in one country can cause offence and have grave consequences for business success in another. In one situation in China, a western businessman caused offence to a group of local delegates because he started to fill out the paperwork immediately after shaking hands on a deal. Completing the legal documents so soon after the negotiations was regarded as undermining the host’s trust. Knowledge about such culture differences is absolutely vital.
GTherefore, if a company is attempting to broaden its operations globally, it must take the time to find out about local customs and methods of business operation. Equally important is to ensure that such information is available to all necessary workers in the organization, For example, in order to attempt to avoid causing offence to passengers from abroad, British Airways aims to raise awareness of cultural differences amongst all its cabin crew.
HIt can be concluded that global standardization of products to ‘fit’ all markets unlikely to be the most viable option. Marketing methods employed will depend on many factors, such as the type of products, the degree of competition, the reputation of the firm and/or the brand, the state of the economy into which the product is to be launched and how and when to launch. In short, the key to marketing success on a global level is to have sufficient information on how cultural differences are likely affect the marketing of a product and then allow the appropriate decisions to be made.
A businesses are considered better if…
A. They use the local employees
B. They sell their products in different countries
C. They know how to adapt their products to a particular market
D. They change the products to make difference
- Câu hỏi 779061:
The Global Product – the World as a Single Market
AFor business, the world is becoming a smaller place. Travel and transportation are becoming quicker and easier, communications can be instantaneous to any part of the world and trade barriers are breaking down. Consequently, there are tremendous opportunities for businesses to broaden their markets into foreign countries. The challenge facing those promoting products globally is to determine whether marketing methods should be adapted to different markets based on specific cultural factors.
BMany theorists argue that, with the ‘shrinking of the world, global standardization is inevitable. Over time, and as economies develop, it has been suggested that consumer buying patterns will blend into on another and national differences may disappear. Kellogg, the American breakfast cereal producer, has been very influential in challenging consumption patterns in countries outside the United States. In France, for example, breakfast cereals were almost unheard of, and market research suggested that the market was closed to companies like Kellogg. However, today, there is a demand for breakfast cereal across France. Nevertheless, the standardization of products for worldwide consumption in this way is rarely the most effective strategy as it evident from an analysis of the following key aspects of global marketing.
CFirst of all, it is considered better business practice by many large, established companies to change their products from one country to the next. Take the example of Coca-Cola. The recipe for this drink is change to suit local tastes – the brand in the US is much sweeter than in the UK, whilst in India the product’s herbs and flouring are given more emphasis. In terms of the car industry, it would be too expensive for manufacturers to develop and build completely different vehicles for different markets yet a single global model is likely to appeal to no one. In response to varying needs, Nissan, for example, sells in 75 different markets, but has eight different chassis designs. The Ford Mondeo was designed with key features from different markets in mind in an effort to make its appeal as broad as possible. The best policy, as far as most multi-national companies are concerned, is to adapt their product to a particular market.
DSecondly, it is important to consider whether a product should be launched simultaneously in all countries (known as a ‘sprinkler launch’) or sequentially in one market after another (‘a waterfall launch’). In practice, most companies producing consumer goods tend to launch a new product in one or two markets at a time rather than attempt to launch a product across a range of countries at a single time. Many high-tech products such as Blu-ray players reach the market in Japan before reaching the UK. Hollywood films are often seen in the United States weeks or months before they arrive in other countries.
EThe advantage for firms is that it is easier to launch in one market at a time. Effort and concentration can be focused to ensure the best possible entry into the market. Moreover, for technical products especially, any initial problems become apparent in a single market and can be corrected prior to launch elsewhere. Even though this method can be time-consuming, it is usually a safer approach than a simultaneous launch. Despite this, in certain highly competitive markets such as computer chips, companies such as Intel tend to launch their new products internationally at the same time to keep the product ahead of its competitors.
FThe final consideration when planning to enter a global market, rather than assuming the product will suit all markets is to take cultural differences into account. Prices have to convert to a different currency and any literature has to be translated into a different language. There are also less tangible differences. It is quite possible that common practices in one country can cause offence and have grave consequences for business success in another. In one situation in China, a western businessman caused offence to a group of local delegates because he started to fill out the paperwork immediately after shaking hands on a deal. Completing the legal documents so soon after the negotiations was regarded as undermining the host’s trust. Knowledge about such culture differences is absolutely vital.
GTherefore, if a company is attempting to broaden its operations globally, it must take the time to find out about local customs and methods of business operation. Equally important is to ensure that such information is available to all necessary workers in the organization, For example, in order to attempt to avoid causing offence to passengers from abroad, British Airways aims to raise awareness of cultural differences amongst all its cabin crew.
HIt can be concluded that global standardization of products to ‘fit’ all markets unlikely to be the most viable option. Marketing methods employed will depend on many factors, such as the type of products, the degree of competition, the reputation of the firm and/or the brand, the state of the economy into which the product is to be launched and how and when to launch. In short, the key to marketing success on a global level is to have sufficient information on how cultural differences are likely affect the marketing of a product and then allow the appropriate decisions to be made.
Businesses have so many opportunities to expand their markets into foreign country because
A. The world is becoming a smaller place
B. Travel and transportation are becoming quicker and easier
C. Communications can be instantaneous to any part of the world
D. the process of interaction and integration among the people, companies, and governments of different nation have been so quick in recent years
- Câu hỏi 779065:
Into the Unknown
In the days of Stanley and Livingstone, much of the world was still unexplored. Today, most places on the surface of the world have been mapped. Some places, however, are still waiting to be discovered. Some of these are underground, in deep caves called blue holes.
A blue holes is a special kind of inlandunderwater cave. The cave forms when the earth above it falls in. Some of the world’s most spectacular blue holes are located in the Bahamas. The islands there may have more than a thousand blues holes. These caves are very deep – for example, Dean’s Blue Hole, the deepest blue hole in the world, is more than 660 feet (200 meters) deep.
Diving into blue holes is extremely dangerous. Near the top of a blue hole, there is a layer of poisonous gas. This gas causes itching, dizziness, and – in large amounts – death. Divers must also be fast. They have to get in and out of a cave before their oxygen run out. Additionally, it’s very dark in these caves, so it is very easy to get lost. Divers therefore have to follow a guideline as they swim through a blue hole. If they lose the guideline, they may not find their way back out of the cave.
If blue holes are so dangerous, why do explorers and scientists risk their lives to explore them? One reason is that these underwater caves can provide valuable scientific information. They provide clues about geology, archaeology, and even astrobiology – the study of life in the universe. For example, some blue hole creatures, such as the remipede, probably haven’t changed for millions of years. Divers have also found bacteria that can live without oxygen. Similar life forms probably existed on Earth billions of years ago.
In addition, the oxygen-free environment of the blue holes preserves bones of humans and animals that fell into the caves long ago. By studying the blue holes, we can understand what life was like in prehistorictimes. As cave diver Kenny Broad says, “I can think of no other environment on Earth that is so challenging to explore and gives us so much scientifically.”
Windows on an Alien World?
An inland blue hole’s water is very still and has different layers. A layer of fresh rainwater floats on top of salt water. The fresh water keeps oxygen from the atmosphere from reaching the salt water. Brightly colored bacteria live where the two layers meet. Scientists believe these bacteria could teach us about life in outer space. Astrobiologist Kevin Hand says the bacteria may be similar to forms of life that might exist on Jupiter’s fourth largest moon, Europa. “Our study of life’s extremes on Earth,” says Hand, can help increase “our understanding of habitable environments off Earth.”
What are blue holes?
A. A kind of carven which contain saltwater
B. A kind of inland under water cave
C. A kind of undersea cave
D. A kind of circular cave
- Câu hỏi 779068:
Into the Unknown
In the days of Stanley and Livingstone, much of the world was still unexplored. Today, most places on the surface of the world have been mapped. Some places, however, are still waiting to be discovered. Some of these are underground, in deep caves called blue holes.
A blue holes is a special kind of inlandunderwater cave. The cave forms when the earth above it falls in. Some of the world’s most spectacular blue holes are located in the Bahamas. The islands there may have more than a thousand blues holes. These caves are very deep – for example, Dean’s Blue Hole, the deepest blue hole in the world, is more than 660 feet (200 meters) deep.
Diving into blue holes is extremely dangerous. Near the top of a blue hole, there is a layer of poisonous gas. This gas causes itching, dizziness, and – in large amounts – death. Divers must also be fast. They have to get in and out of a cave before their oxygen run out. Additionally, it’s very dark in these caves, so it is very easy to get lost. Divers therefore have to follow a guideline as they swim through a blue hole. If they lose the guideline, they may not find their way back out of the cave.
If blue holes are so dangerous, why do explorers and scientists risk their lives to explore them? One reason is that these underwater caves can provide valuable scientific information. They provide clues about geology, archaeology, and even astrobiology – the study of life in the universe. For example, some blue hole creatures, such as the remipede, probably haven’t changed for millions of years. Divers have also found bacteria that can live without oxygen. Similar life forms probably existed on Earth billions of years ago.
In addition, the oxygen-free environment of the blue holes preserves bones of humans and animals that fell into the caves long ago. By studying the blue holes, we can understand what life was like in prehistorictimes. As cave diver Kenny Broad says, “I can think of no other environment on Earth that is so challenging to explore and gives us so much scientifically.”
Windows on an Alien World?
An inland blue hole’s water is very still and has different layers. A layer of fresh rainwater floats on top of salt water. The fresh water keeps oxygen from the atmosphere from reaching the salt water. Brightly colored bacteria live where the two layers meet. Scientists believe these bacteria could teach us about life in outer space. Astrobiologist Kevin Hand says the bacteria may be similar to forms of life that might exist on Jupiter’s fourth largest moon, Europa. “Our study of life’s extremes on Earth,” says Hand, can help increase “our understanding of habitable environments off Earth.”
Where are the world’s most spectacular blue holes discovered?
A. In Clarence Town
B. In Bahamas
C. In Egypt
D. In Guam
- Câu hỏi 779069:
Into the Unknown
In the days of Stanley and Livingstone, much of the world was still unexplored. Today, most places on the surface of the world have been mapped. Some places, however, are still waiting to be discovered. Some of these are underground, in deep caves called blue holes.
A blue holes is a special kind of inlandunderwater cave. The cave forms when the earth above it falls in. Some of the world’s most spectacular blue holes are located in the Bahamas. The islands there may have more than a thousand blues holes. These caves are very deep – for example, Dean’s Blue Hole, the deepest blue hole in the world, is more than 660 feet (200 meters) deep.
Diving into blue holes is extremely dangerous. Near the top of a blue hole, there is a layer of poisonous gas. This gas causes itching, dizziness, and – in large amounts – death. Divers must also be fast. They have to get in and out of a cave before their oxygen run out. Additionally, it’s very dark in these caves, so it is very easy to get lost. Divers therefore have to follow a guideline as they swim through a blue hole. If they lose the guideline, they may not find their way back out of the cave.
If blue holes are so dangerous, why do explorers and scientists risk their lives to explore them? One reason is that these underwater caves can provide valuable scientific information. They provide clues about geology, archaeology, and even astrobiology – the study of life in the universe. For example, some blue hole creatures, such as the remipede, probably haven’t changed for millions of years. Divers have also found bacteria that can live without oxygen. Similar life forms probably existed on Earth billions of years ago.
In addition, the oxygen-free environment of the blue holes preserves bones of humans and animals that fell into the caves long ago. By studying the blue holes, we can understand what life was like in prehistorictimes. As cave diver Kenny Broad says, “I can think of no other environment on Earth that is so challenging to explore and gives us so much scientifically.”
Windows on an Alien World?
An inland blue hole’s water is very still and has different layers. A layer of fresh rainwater floats on top of salt water. The fresh water keeps oxygen from the atmosphere from reaching the salt water. Brightly colored bacteria live where the two layers meet. Scientists believe these bacteria could teach us about life in outer space. Astrobiologist Kevin Hand says the bacteria may be similar to forms of life that might exist on Jupiter’s fourth largest moon, Europa. “Our study of life’s extremes on Earth,” says Hand, can help increase “our understanding of habitable environments off Earth.”
What are divers are suggested?
A. To move fast when being in blue holes
B. To move fast when being in blue holes and To follow a guideline when swimming through a blue hole
C. To follow a guideline when swimming through a blue hole
D. Not to discover the cave alone but in group
- Câu hỏi 779070:
Into the Unknown
In the days of Stanley and Livingstone, much of the world was still unexplored. Today, most places on the surface of the world have been mapped. Some places, however, are still waiting to be discovered. Some of these are underground, in deep caves called blue holes.
A blue holes is a special kind of inlandunderwater cave. The cave forms when the earth above it falls in. Some of the world’s most spectacular blue holes are located in the Bahamas. The islands there may have more than a thousand blues holes. These caves are very deep – for example, Dean’s Blue Hole, the deepest blue hole in the world, is more than 660 feet (200 meters) deep.
Diving into blue holes is extremely dangerous. Near the top of a blue hole, there is a layer of poisonous gas. This gas causes itching, dizziness, and – in large amounts – death. Divers must also be fast. They have to get in and out of a cave before their oxygen run out. Additionally, it’s very dark in these caves, so it is very easy to get lost. Divers therefore have to follow a guideline as they swim through a blue hole. If they lose the guideline, they may not find their way back out of the cave.
If blue holes are so dangerous, why do explorers and scientists risk their lives to explore them? One reason is that these underwater caves can provide valuable scientific information. They provide clues about geology, archaeology, and even astrobiology – the study of life in the universe. For example, some blue hole creatures, such as the remipede, probably haven’t changed for millions of years. Divers have also found bacteria that can live without oxygen. Similar life forms probably existed on Earth billions of years ago.
In addition, the oxygen-free environment of the blue holes preserves bones of humans and animals that fell into the caves long ago. By studying the blue holes, we can understand what life was like in prehistorictimes. As cave diver Kenny Broad says, “I can think of no other environment on Earth that is so challenging to explore and gives us so much scientifically.”
Windows on an Alien World?
An inland blue hole’s water is very still and has different layers. A layer of fresh rainwater floats on top of salt water. The fresh water keeps oxygen from the atmosphere from reaching the salt water. Brightly colored bacteria live where the two layers meet. Scientists believe these bacteria could teach us about life in outer space. Astrobiologist Kevin Hand says the bacteria may be similar to forms of life that might exist on Jupiter’s fourth largest moon, Europa. “Our study of life’s extremes on Earth,” says Hand, can help increase “our understanding of habitable environments off Earth.”
According to the passage, today some of blue holes in deep cave need to be
A. Protected
B. Mapped
C. Explored
D. Got a line
- Câu hỏi 779074:
The Harder Hard Sell
It was Lord Leverhulme, the British soap pioneer, who is said to have complained that he knew half of his advertising budget was wasted, but didn’t know which half. The real effects of advertising have become more measurable, exposing another, potentially more horrible, truth for industry: in more cases, it can be a lot more than half of the budget that is going down the drain.
The advertising industry is passing through one of the most disorienting periods in its history. This is due to a combination of long-term changes, such as the growing diversity of media and the arrival of new technologies, notably the internet. With better-informed consumers, the result is that some of the traditional methods of advertising and marketing simply no longer work.
The media are the message
But spending on advertising is up again and is expected to grow this year by 4.7 per cent to $343 billion. How will the money be spent? There are plenty of alternatives to straightforward advertising. They range from public relations to direct mail and include customer promotions (like paying a retailer for shelf space), telemarketing, exhibitions, sponsoring events, product placements and more. These have become such an inseparable part of the industry that big agencies are now willing to provide most of them.
As ever, the debate in the industry centers on the best way to achieve results. It is more cost-effective, for instance, to use a public relations agency to invite a journalist out to lunch and persuade him to write about a product than to pay for a display ad in that journalist’s newspaper? Should you launch a new car with glossy magazine ads, or – as some car makers now do – simply park demonstration models in shopping malls and motorway service stations? And is it better to buy a series of ads on a specialist cable TV channel or splurge $2.2m on a single 30-second commercial during this year’s Super Bowl?
Net Sales
Such decisions are ever harder to make. For a start, people are spending less time reading newspapers and magazines, but are going to the cinema more, listening to more radios and turning in ever-increasing numbers to a new medium, the Internet (see chart 1). No one knows just how important the Internet will eventually be as an advertising medium. Some advertisers think it will be a highly cost-effective way of reaching certain group of consumers. But not everyone uses Internet and nor is it seen as being as being particularly good at building brands. So far, the Internet accounts for only a tiny slice of the overall advertising pie (see chart 2) although its share has begun to grow rapidly.
Despite all of these new developments, many in the advertising business remain confident. Rupert Howell, chairman of the London arm of McCann Erickson, points out that TV never killed radio, which in turn never killed radio, which in turn never killed newspapers. They did pose huge creative challenges, but that’s OK, he maintains: “The advertising industry is relentlessly inventive; that’s what we do.”
What is expected to grow by 4.7 per cent to $343 billion?
A. Spending on public relations in the coming year
B. Spending on customers promotions in many year
C. Spending on mail and internet this year
D. Spending on advertising this year
- Câu hỏi 779076:
The Harder Hard Sell
It was Lord Leverhulme, the British soap pioneer, who is said to have complained that he knew half of his advertising budget was wasted, but didn’t know which half. The real effects of advertising have become more measurable, exposing another, potentially more horrible, truth for industry: in more cases, it can be a lot more than half of the budget that is going down the drain.
The advertising industry is passing through one of the most disorienting periods in its history. This is due to a combination of long-term changes, such as the growing diversity of media and the arrival of new technologies, notably the internet. With better-informed consumers, the result is that some of the traditional methods of advertising and marketing simply no longer work.
The media are the message
But spending on advertising is up again and is expected to grow this year by 4.7 per cent to $343 billion. How will the money be spent? There are plenty of alternatives to straightforward advertising. They range from public relations to direct mail and include customer promotions (like paying a retailer for shelf space), telemarketing, exhibitions, sponsoring events, product placements and more. These have become such an inseparable part of the industry that big agencies are now willing to provide most of them.
As ever, the debate in the industry centers on the best way to achieve results. It is more cost-effective, for instance, to use a public relations agency to invite a journalist out to lunch and persuade him to write about a product than to pay for a display ad in that journalist’s newspaper? Should you launch a new car with glossy magazine ads, or – as some car makers now do – simply park demonstration models in shopping malls and motorway service stations? And is it better to buy a series of ads on a specialist cable TV channel or splurge $2.2m on a single 30-second commercial during this year’s Super Bowl?
Net Sales
Such decisions are ever harder to make. For a start, people are spending less time reading newspapers and magazines, but are going to the cinema more, listening to more radios and turning in ever-increasing numbers to a new medium, the Internet (see chart 1). No one knows just how important the Internet will eventually be as an advertising medium. Some advertisers think it will be a highly cost-effective way of reaching certain group of consumers. But not everyone uses Internet and nor is it seen as being as being particularly good at building brands. So far, the Internet accounts for only a tiny slice of the overall advertising pie (see chart 2) although its share has begun to grow rapidly.
Despite all of these new developments, many in the advertising business remain confident. Rupert Howell, chairman of the London arm of McCann Erickson, points out that TV never killed radio, which in turn never killed radio, which in turn never killed newspapers. They did pose huge creative challenges, but that’s OK, he maintains: “The advertising industry is relentlessly inventive; that’s what we do.”
What are alternatives to straightforward advertising?
A. They are ranged from public relations to direct mail
B. They may be Exhibitions and direct mail
C. They may be telemarketing and email
D. It should be sponsoring events
- Câu hỏi 779080:
The Harder Hard Sell
It was Lord Leverhulme, the British soap pioneer, who is said to have complained that he knew half of his advertising budget was wasted, but didn’t know which half. The real effects of advertising have become more measurable, exposing another, potentially more horrible, truth for industry: in more cases, it can be a lot more than half of the budget that is going down the drain.
The advertising industry is passing through one of the most disorienting periods in its history. This is due to a combination of long-term changes, such as the growing diversity of media and the arrival of new technologies, notably the internet. With better-informed consumers, the result is that some of the traditional methods of advertising and marketing simply no longer work.
The media are the message
But spending on advertising is up again and is expected to grow this year by 4.7 per cent to $343 billion. How will the money be spent? There are plenty of alternatives to straightforward advertising. They range from public relations to direct mail and include customer promotions (like paying a retailer for shelf space), telemarketing, exhibitions, sponsoring events, product placements and more. These have become such an inseparable part of the industry that big agencies are now willing to provide most of them.
As ever, the debate in the industry centers on the best way to achieve results. It is more cost-effective, for instance, to use a public relations agency to invite a journalist out to lunch and persuade him to write about a product than to pay for a display ad in that journalist’s newspaper? Should you launch a new car with glossy magazine ads, or – as some car makers now do – simply park demonstration models in shopping malls and motorway service stations? And is it better to buy a series of ads on a specialist cable TV channel or splurge $2.2m on a single 30-second commercial during this year’s Super Bowl?
Net Sales
Such decisions are ever harder to make. For a start, people are spending less time reading newspapers and magazines, but are going to the cinema more, listening to more radios and turning in ever-increasing numbers to a new medium, the Internet (see chart 1). No one knows just how important the Internet will eventually be as an advertising medium. Some advertisers think it will be a highly cost-effective way of reaching certain group of consumers. But not everyone uses Internet and nor is it seen as being as being particularly good at building brands. So far, the Internet accounts for only a tiny slice of the overall advertising pie (see chart 2) although its share has begun to grow rapidly.
Despite all of these new developments, many in the advertising business remain confident. Rupert Howell, chairman of the London arm of McCann Erickson, points out that TV never killed radio, which in turn never killed radio, which in turn never killed newspapers. They did pose huge creative challenges, but that’s OK, he maintains: “The advertising industry is relentlessly inventive; that’s what we do.”
What are the key to the confidence of many advertising business?
A. Hard sell
B. Creativity
C. Challenges
D. Difficulty
- Câu hỏi 779082:
The Harder Hard Sell
It was Lord Leverhulme, the British soap pioneer, who is said to have complained that he knew half of his advertising budget was wasted, but didn’t know which half. The real effects of advertising have become more measurable, exposing another, potentially more horrible, truth for industry: in more cases, it can be a lot more than half of the budget that is going down the drain.
The advertising industry is passing through one of the most disorienting periods in its history. This is due to a combination of long-term changes, such as the growing diversity of media and the arrival of new technologies, notably the internet. With better-informed consumers, the result is that some of the traditional methods of advertising and marketing simply no longer work.
The media are the message
But spending on advertising is up again and is expected to grow this year by 4.7 per cent to $343 billion. How will the money be spent? There are plenty of alternatives to straightforward advertising. They range from public relations to direct mail and include customer promotions (like paying a retailer for shelf space), telemarketing, exhibitions, sponsoring events, product placements and more. These have become such an inseparable part of the industry that big agencies are now willing to provide most of them.
As ever, the debate in the industry centers on the best way to achieve results. It is more cost-effective, for instance, to use a public relations agency to invite a journalist out to lunch and persuade him to write about a product than to pay for a display ad in that journalist’s newspaper? Should you launch a new car with glossy magazine ads, or – as some car makers now do – simply park demonstration models in shopping malls and motorway service stations? And is it better to buy a series of ads on a specialist cable TV channel or splurge $2.2m on a single 30-second commercial during this year’s Super Bowl?
Net Sales
Such decisions are ever harder to make. For a start, people are spending less time reading newspapers and magazines, but are going to the cinema more, listening to more radios and turning in ever-increasing numbers to a new medium, the Internet (see chart 1). No one knows just how important the Internet will eventually be as an advertising medium. Some advertisers think it will be a highly cost-effective way of reaching certain group of consumers. But not everyone uses Internet and nor is it seen as being as being particularly good at building brands. So far, the Internet accounts for only a tiny slice of the overall advertising pie (see chart 2) although its share has begun to grow rapidly.
Despite all of these new developments, many in the advertising business remain confident. Rupert Howell, chairman of the London arm of McCann Erickson, points out that TV never killed radio, which in turn never killed radio, which in turn never killed newspapers. They did pose huge creative challenges, but that’s OK, he maintains: “The advertising industry is relentlessly inventive; that’s what we do.”
What kinds of method of advertising are big agencies now willing to provide?
A. Advertising on magazines
B. alternatives to straightforward advertising
C. Advertising on radios
D. Advertising on newspapers
