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Effect of advertising on consumers decision
Role Of Culture In International Markets
Role Of Culture In International Markets
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According to above figure of Samsung and Apple, Apple use uniform strategy at all markets and only spends less than 1/4 what Samsung spent on advertisement, but highly net profit, strong brand equity and brand identity than Samsung. Obviously, using uniform advertising strategy can create more profit and save large amount of cost than non-uniform advertising strategy.
Based on the above evidence, uniform advertising strategy indeed can lead global brands to representing consistent brand image and saving cost as well as creating brand value. However, the main concept of advertising effectiveness includes market share, communication with customer and advertising expense. (Ansari, A., & Riasi, A. 2016). Uniform advertising strategy still has
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Chinese people consider family reunion as the important time in the year and will celebrate Spring Festival with family members as traditional custom. McDonald appeals their desire through unique Chinese advertisement.
Study of Globalisation of Marketing Communication shows McDonald’s success in China is the result of non-uniform strategy (Van Raaij, W. F. 1997. P.264). As a result of non-uniform strategy, until now, McDonald already start their business and open more than 2200 stores successfully in Beijing, (http://www.mcdonalds.com.cn/index/McD/about/company).
Global brands could be adapted to local culture and capture more customers in local markets due to the non-uniform strategy. Company could maintain their special feature (such as ‘M’ logo) and culture (such as popular drink: Coke Cola,fires) with elements of different culture and adapted advertising method rather than the similar consumer preferences of global convergence environments. Therefore, they smoothly enter to markets of other countries and gain local customer’s preference with diverse advertising ways without losing their special brand
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Compared to Hyundai Motor Company, Korea (HMK)’s home advertising strategy in Korea, Hyundai Motor America (HMA) developed a high value position and only made promotions on the large numbers of sales. Moreover, they insisted on having the best warranty over the car industry. For example, Hyundai Motor America (HMA) had longer warranty which is five years or 60,000 miles bumper-to-bumper and 10 years or 100,000 miles on the power train than other company normally only have 3 years. As a result of this, customers receive a positive message that they can get better customer service and safety guarantee by purchasing Hyundai car instead of other brands. Hyundai Motor America (HMA) sponsors Women 's United Soccer Association (WUSA) for 4 years, Hyundai Motor America (HMA) as the only car company displaying their products. They also gained lots opportunities of television advertising by local famous spokesmen and public relations through sponsoring local golf matches for 3 years and taking a part in Mongoose bicycle
Advertising is now as a communication strategy in order to construct consumer’s actions and beliefs about their desire of the products. Most companies will hire advertisement department to promote their products through a creative advertising. However, advertisement not only promotes products for companies but also could influence their sale since the competitive marketing all over the world. All of the companies use advertising to promote their products, therefore, the job of advertisement companies in order to use advertising as a communication strategy and transfer its valuable message to consumers. Since the advertising marketing has become extensive and competitive, for most advertisement companies, the only way to attract audience’s attention is to be more
Standardizing promotional activities has three big reasons. First, it has significant economic advantages. It lowers the cost because it can be spread over many countries. Second, one large effort to develop a campaign will produce better results than several smaller efforts. A third reason is that many brand names are global. A projection of a single brand image avoids confusion caused by local campaigns.
...nies to globalize fast food in Eastern Asia, while bringing new cultural transformation and trends but keeping the native culture alive. Table manners and the child aspect of fast food has changed because of the presence of McDonald’s to these different cities in East Asia. Along with transformations, trends were made through accurately timing the opening of the corporation, having an easy system to follow, and having an enjoyable atmosphere. Lastly, indigenous cultures are still thriving even though McDonald’s is an American based company because they are adding new menu items depending on the location, use products from local producers, and some people still consider their food a snack. McDonald’s is on the path of being very successful in East Asia in the future and is going to continue to make their bright golden arches even more attractive than they are now.
We propose a branding strategy which takes into account the brands capabilities and competencies, strategies of competition brands and the outlook of consumers experience in their respective societies. As an international brand there is the challenge of staying connected with local customers. We will overcome this by adapting marketing strategy to local needs using a variance of standardized marketing mix and an adapted marketing mix.
Analysis of an Advertising Campaign We are swarmed by advertising. Companies constantly battle to compete for the sale of their product. Adverts appear in every form of media including radio; television; Internet; billboards; newspaper; flyers and magazines. The advertiser wants us to buy their product above their competitors. The basic aim of advertising is to convince the target audience that their product is the best in the field and superior to the other products of similarity.
...d i.e. to use a mix of both the strategies. Some academic experts also presented the same arguments which stated that the company should use standardized tactics and adapting others to difference market is necessary. Such authors believes that both the standardization and adaptation are nothing but a matter of degree to use in international marketing strategy. Also McDonald strategy is the best example of such arguments where the company has globalized it brand but localized its marketing strategies. Considering the success of McDonald I would strongly recommend that a right balance of standardization and adaptation is need to ensure good growth and success in international marketing. Hence it can be concluded that if a company wants to be successful at global level, then it should include elements of both standardized and adaptation approach in its marketing mix.
MacDonald’s campaigns have branded its values through good food products in MacDonald’s marketing. An example is MacDonald’s have strategically produced their public relation in China to improve recognition of Mc China Wrap burger using unique brand names (Shah, 2008). The campaign has captured new clients and spread to new provinces by positioning itself as efficient compared to its competitors.
KFC is one of the most popular fast-food restaurant chains by the Yum! Brands and fried chicken is what the company specializes. KFC was founded by Harland Sanders, which was later known as Colonel Sanders. Moreover, KFC was one of the first fast-food restaurant chains to expand internationally, including the opening outlets in Beijing, China, in November 1987 (KFC Website, 2013). The fact that KFC was the first Western fast food company in China makes it very challenging to satisfy the Chinese market. Trying to sell the same products or services is a typical approach to most foreign expansion for franchise businesses (Bell, 2011). However, one-size fits all approach is not what KFC chooses to apply for their company. According to Shelman, the writer of the case study regarding KFC’s Explosive Growth in China, key success for KFC China is to change the menu to suit Chinese tastes and style of eating (Starvish, 2011). “One of the lessons I take away from this case is that to ...
This essay is going to examine how advertising strategies used in different market structures affects profits of the firms. This essay is being written based on Advertising, an article by Geoff Stewart, in which he examines “how do firms determine their advertising strategy”. In this article he uses Monopolies as an example of a non-competitive market and Oligopolies as an example of competitive markets, so in this essay Monopolies and Oligopolies will also be used as examples. However other competitive markets include perfect competition and monopolistic competition.
... conclusion, to compete with the intense competition in today’s fast-food market, KFC China differentiates the company by being innovative. Three significant innovative strategies are localizing the menu, understanding the Chinese culture, and hiring local management. KFC demonstrates that one size fits all approach in the global market does not always work. Many typical Western approach to foreign expansion is to deliver the same products or services as their original establishment. For instance, Domino’s Pizza, an American restaurant chain, nearly failed in Australia due to the underestimation of the need to adapt their offerings to the local tastes. KFC China offers important lessons for global firms. It is essential to know that to what extend the company should keep the existing business model in emerging markets and to what extend it should be thrown away.
Along with increasingly liberalised trade policies, economic integration, higher stability of monetary transaction and development in transportation as well as communication, international business has experienced a dramatic rise (Czinkota and Ronkainen, 2001). This rise is also accompanied with enormous challenges that generate from differences between multinational companies’ home countries and foreign markets. Therefore, international marketing strategy that aims to achieve business success in competitive overseas markets has become a focus of studies especially in terms of standardization and adaptation. Years of fierce debates generate three basic perspectives. From a standardization perspective, reasons for standardizing strategy can be growing market similarity, economies of scale, homogenized customers, technological advance and consistent corporate brand (Levitt, 1983; Theodosiou and Leonidou, 2003). By
It also includes examination of the theoretical and empirical studies in the field of advertising. Books, research papers, articles, reports, thesis etc. were systematically studied to develop the following review of literature. The review included extensive use of Proquest, Google scholar, Inflibnet and IIM- A library. The review of theoretical literature and empirical literature helped develop the below mentioned conceptual framework. This structure underlines the sequence of steps, which were undertaken for the review of literature. The first step was to understand the concept of advertising. The second step focused on understanding the effects of advertising. Scan of literature helped in identify the types of effects advertisements are known to create. The third step involved understanding the extent to which organisations are committing their resources to advertising. As logic dictates that measurement of effectiveness is more significant where the resources committed are more, the final step involved study of effectiveness measures.
Advertising is dealing with marketing strategy as well, and companies use this method to create awareness for their product and services. This promotional strategy wants to get a response and target a customer. A unique look of a picture of a product with a cool logo will gain the interest of a customer. This simple idea will draw consumers’ to purchase the product based off the look of the logo or trademark. Advertisement can be sent through television, radio, newspapers, magazines and journals. Also, advertisements can be sent direct mail, which the product send marketing materials to the selected list of customers. Outdoor advertising can be put on posters, banner, signs and bus ads.
Vignali, C. (2001). McDonald’s: “think global, act local”--the marketing mix. British Food Journal, 103(2), pp.97--111.
In addition, effective advertising can keep a consumer’s mind fresh about the image of a brand, which develops the trace of the memory where consumers have to choose between two or more products. Moreover, it may change the product quality, create new, well-designed and elegant product and change consumers view towards the product. Lastly, by effective advertising program, company may save money and time as salesperson does not need to inform people about the product features as it has already advertised.... ... middle of paper ... ...