Global marketing

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Marketing

Key concepts
Product • Pricing
Distribution • Service • Retail
Brand management
Account-based marketing
Marketing ethics
Marketing effectiveness
Market research
Market segmentation
Marketing strategy
Marketing management
Market dominance
Promotional content
Advertising • Branding • Underwriting
Direct marketing • Personal Sales
Product placement • Publicity
Sales promotion • Sex in advertising
Loyalty marketing • Premiums • Prizes
Promotional media
Printing • Publication
Broadcasting • Out-of-home
Internet marketing • Point of sale
Promotional merchandise
Digital marketing • In-game
In-store demonstration
Word-of-mouth marketing
Brand Ambassador • Drip Marketing
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The Oxford University Press defines global marketing as “marketing

on a worldwide scale reconciling or taking commercial advantage of
global operational differences, similarities and opportunities in order to
meet global objectives.” Oxford University Press’ Glossary of
Marketing Terms.

Here are three reasons for the shift from domestic to global marketing as
given by the authors of the textbook, Global Marketing Management—
3rd Edition by Masaaki Kotabe and Kristiaan Helsen, 2004.

Contents

[hide]

 1 Worldwide competition
 2 Evolution to global marketing
o 2.1 Domestic marketing
o 2.2 International marketing
 3 Elements of the global marketing mix
o 3.1 Product
o 3.2 Price
o 3.3 Placement
o 3.4 Promotion
 4 Advantages and Disadvantages
o 4.1 Advantages
 4.1.1 Reach
 4.1.2 Scope
 4.1.3 Interactivity
 4.1.4 Immediacy
 4.1.5 Demographics and targeting
 4.1.6 Adaptivity and closed loop marketing
o 4.2 Disadvantages
 5 See also
  6 References
 7 Further reading
 8 External links

[edit] Worldwide competition

One of the product categories in which global competition has been easy
to track in U.S.is automotive sales. The increasing intensity of
competition in global markets is a challenge facing companies at all
stages of involvement in international markets. As markets open up, and
become more integrated, the pace of change accelerates, technology
shrinks distances between markets and reduces the scale advantages of
large firms, new sources of competition emerge, and competitive
pressures mount at all levels of the organization. Also, the threat of
competition from companies in countries such as India, China, Malaysia,
and Brazil is on the rise, as their own domestic markets are opening up
to foreign competition, stimulating greater awareness of international
market opportunities and of the need to be internationally competitive.
Companies which previously focused on protected domestic markets are
entering into markets in other countries, creating new sources of
competition, often targeted to price-sensitive market segments. Not only
is competition intensifying for all firms regardless of their degree of
global market involvement, but the basis for competition is changing.
Competition continues to be market-based and ultimately relies on
delivering superior value to consumers. However, success in global
markets depends on knowledge accumulation and deployment.[1] tiwana.

[edit] Evolution to global marketing

Global marketing is not a revolutionary shift, it is an evolutionary

process. While the following does not apply to all companies, it does
apply to most companies that begin as domestic-only companies.

[edit] Domestic marketing

A marketing restricted to the political boundaries of a country, is called
"Domestic Marketing". A company marketing only within its national
boundaries only has to consider domestic competition. Even if that
competition includes companies from foreign markets, it still only has to
focus on the competition that exists in its home market. Products and
services are developed for customers in the home market without
thought of how the product or service could be used in other markets.
All marketing decisions are made at headquarters.

The biggest obstacle these marketers face is being blindsided by

emerging global marketers. Because domestic marketers do not
generally focus on the changes in the global marketplace, they may not
be aware of a potential competitor who is a market leader on three
continents until they simultaneously open 20 stores in the Northeastern
U.S. These marketers can be considered ethnocentric as they are most
concerned with how they are perceived in their home country. exporting
goods to other countries. loosener Rhett

[edit] International marketing

If the exporting departments are becoming successful but the costs of

doing business from headquarters plus time differences, language
barriers, and cultural ignorance are hindering the company’s
competitiveness in the foreign market, then offices could be built in the
foreign countries. Sometimes companies buy firms in the foreign
countries to take advantage of relationships, storefronts, factories, and
personnel already in place. These offices still report to headquarters in
the home market but most of the marketing mix decisions are made in
the individual countries since that staff is the most knowledgeable about
the target markets. Local product development is based on the needs of
local customers. These marketers are considered polycentric because
they acknowledge that each market/country has different needs.

[edit] Elements of the global marketing mix

The “Four P’s” of marketing: product, price, placement, and promotion
are all affected as a company moves through the five evolutionary
phases to become a global company. Ultimately, at the global marketing
level, a company trying to speak with one voice is faced with many
challenges when creating a worldwide marketing plan. Unless a
company holds the same position against its competition in all markets
(market leader, low cost, etc.) it is impossible to launch identical
marketing plans worldwide.

[edit] Product

A global company is one that can create a single product and only have
to tweak elements for different markets. For example, Coca-Cola uses
two formulas (one with sugar, one with corn syrup) for all markets. The
product packaging in every country incorporates the contour bottle
design and the dynamic ribbon in some way, shape, or form. However,
the bottle or can also includes the country’s native language and is the
same size as other beverage bottles or cans in that same country.

[edit] Price

Price will always vary from market to market. Price is affected by many
variables: cost of product development (produced locally or imported),
cost of ingredients, cost of delivery (transportation, tariffs, etc.), and
much more. Additionally, the product’s position in relation to the
competition influences the ultimate profit margin. Whether this product
is considered the high-end, expensive choice, the economical, low-cost
choice, or something in-between helps determine the price point.

[edit] Placement

How the product is distributed is also a country-by-country decision

influenced by how the competition is being offered to the target market.
Using Coca-Cola as an example again, not all cultures use vending
machines. In the United States, beverages are sold by the pallet via
warehouse stores. In India, this is not an option. Placement decisions
must also consider the product’s position in the market place. For
example, a high-end product would not want to be distributed via a
“dollar store” in the United States. Conversely, a product promoted as
the low-cost option in France would find limited success in a pricey
boutique.

[edit] Promotion

After product research, development and creation, promotion

(specifically advertising) is generally the largest line item in a global
company’s marketing budget. At this stage of a company’s development,
integrated marketing is the goal. The global corporation seeks to reduce
costs, minimize redundancies in personnel and work, maximize speed of
implementation, and to speak with one voice. If the goal of a global
company is to send the same message worldwide, then delivering that
message in a relevant, engaging, and cost-effective way is the challenge.

Effective global advertising techniques do exist. The key is testing

advertising ideas using a marketing research system proven to provide
results that can be compared across countries. The ability to identify
which elements or moments of an ad are contributing to that success is
how economies of scale are maximized. Market research measures such
as Flow of Attention, Flow of Emotion and branding moments provide
insights into what is working in an ad in any country because the
measures are based on visual, not verbal, elements of the ad.

[edit] Advantages and Disadvantages

[edit] Advantages

 The advantages of global market we can introduce our product by

using advertising
 Economies of scale in production and distribution
 Lower marketing costs
 Power and scope
 Consistency in brand image
  Ability to leverage good ideas quickly and efficiently
 Uniformity of marketing practices
 Helps to establish relationships outside of the "political arena"
 Helps to encourage ancillary industries to be set up to cater for the
needs of the global player
 Benefits of eMarketing over traditional marketing

[edit] Reach

The nature of the internet means businesses now have a truly global
reach. While traditional media costs limit this kind of reach to huge
multinationals, eMarketing opens up new avenues for smaller
businesses, on a much smaller budget, to access potential consumers
from all over the world.

[edit] Scope

Internet marketing allows the marketer to reach consumers in a wide

range of ways and enables them to offer a wide range of products and
services. eMarketing includes, among other things, information
management, public relations, customer service and sales. With the
range of new technologies becoming available all the time, this scope
can only grow.

[edit] Interactivity

Whereas traditional marketing is largely about getting a brand’s message

out there, eMarketing facilitates conversations between companies and
consumers. With a two way communication channel, companies can
feed off of the responses of their consumers, making them more
dynamic and adaptive.

[edit] Immediacy

Internet marketing is able to, in ways never before imagined, provide an

immediate impact. Imagine you’re reading your favorite magazine. You
see a double-page advert for some new product or service, maybe
BMW’s latest luxury sedan or Apple’s latest iPod offering. With this
kind of traditional media, it’s not that easy for you, the consumer, to take
the step from hearing about a product to actual acquisition. With
eMarketing, it’s easy to make that step as simple as possible, meaning
that within a few short clicks you could have booked a test drive or
ordered the iPod. And all of this can happen regardless of normal office
hours. Effectively, Internet marketing makes business hours 24 hours per
day, 7 days per week for every week of the year. By closing the gap
between providing information and eliciting a consumer reaction, the
consumer’s buying cycle is speeded up and advertising spend can go
much further in creating immediate leads.

[edit] Demographics and targeting

Generally speaking, the demographics of the Internet are a marketer’s

dream. Internet users, considered as a group, have greater buying power
and could perhaps be considered as a population group skewed towards
the middle-classes. Buying power is not all though. The nature of the
Internet is such that its users will tend to organize themselves into far
more focused groupings. Savvy marketers who know where to look can
quite easily find access to the niche markets they wish to target.
Marketing messages are most effective when they are presented directly
to the audience most likely to be interested. The Internet creates the
perfect environment for niche marketing to targeted groups.

[edit] Adaptivity and closed loop marketing

Closed Loop Marketing requires the constant measurement and analysis

of the results of marketing initiatives. By continuously tracking the
response and effectiveness of a campaign, the marketer can be far more
dynamic in adapting to consumers’ wants and needs. With eMarketing,
responses can be analyzed in real-time and campaigns can be tweaked
continuously. Combined with the immediacy of the Internet as a
medium, this means that there’s minimal advertising spend wasted on
less than effective campaigns. Maximum marketing efficiency from
eMarketing creates new opportunities to seize strategic competitive
advantages. The combination of all these factors results in an improved
ROI and ultimately, more customers, happier customers and an
improved bottom line.

[edit] Disadvantages

 Differences in consumer needs, wants, and usage patterns for

products
 Differences in consumer response to marketing mix elements
 Differences in brand and product development and the competitive
environment
 Differences in the legal environment, some of which may conflict
with those of the home market
 Differences in the institutions available, some of which may call
for the creation of entirely new ones (e.g. infrastructure)
 Differences in administrative procedures
 Differences in product placement.

Advertising is a form of communication intended to persuade an

audience (viewers, readers or listeners) to purchase or take some
action upon products, ideas, or services. It includes the name of a
product or service and how that product or service could benefit the
consumer, to persuade a target market to purchase or to consume that
particular brand. These messages are usually paid for by sponsors and
viewed via various media. Advertising can also serve to communicate
an idea to a large number of people in an attempt to convince them to
take a certain action.
  Commercial advertisers often seek to generate increased
consumption of their products or services through branding, which
involves the repetition of an image or product name in an effort to
associate related qualities with the brand in the minds of
consumers. Non-commercial advertisers who spend money to
advertise items other than a consumer product or service include
political parties, interest groups, religious organizations and
governmental agencies. Nonprofit organizations may rely on free
modes of persuasion, such as a public service announcement.

 Modern advertising developed with the rise of mass production in

the late 19th and early 20th centuries. Mass media can be defined
as any media meant to reach a mass amount of people. Different
types of media can be used to deliver these messages, including
traditional media such as newspapers, magazines, television, radio,
outdoor or direct mail; or new media such as websites and text
messages.

 In 2010, spending on advertising was estimated at more than $300

billion in the United States[1] and $500 billion worldwide[citation needed].

 Internationally, the largest ("big four") advertising conglomerates

are Interpublic, Omnicom, Publicis, and WPP.

Advertising theory

 Hierarchy of effects model[9]

It clarifies the objectives of an advertising campaign and for each

individual advertisement. The model suggests that there are six steps a
consumer or a business buyer moves through when making a purchase.
The steps are:

1. Awareness
2. Knowledge
3. Liking
 4. Preference
5. Conviction
6. The actual purchase

 Means-End Theory

This approach suggests that an advertisement should contain a message

or means that leads the consumer to a desired end state.

 Leverage Points

It is designed to move the consumer from understanding a product's

benefits to linking those benefits with personal values.

 Verbal and Visual Images

[edit] Types of advertising

Paying people to hold signs is one of the oldest forms of advertising, as

with this Human billboard pictured above
A bus with an advertisement for GAP in Singapore. Buses and other
vehicles are popular mediums for advertisers.

A DBAG Class 101 with UNICEF ads at Ingolstadt main railway station

Virtually any medium can be used for advertising. Commercial

advertising media can include wall paintings, billboards, street furniture
components, printed flyers and rack cards, radio, cinema and television
adverts, web banners, mobile telephone screens, shopping carts, web
popups, skywriting, bus stop benches, human billboards, magazines,
newspapers, town criers, sides of buses, banners attached to or sides of
airplanes ("logojets"), in-flight advertisements on seatback tray tables or
overhead storage bins, taxicab doors, roof mounts and passenger
screens, musical stage shows, subway platforms and trains, elastic bands
on disposable diapers,doors of bathroom stalls,stickers on apples in
supermarkets, shopping cart handles (grabertising), the opening section
of streaming audio and video, posters, and the backs of event tickets and
supermarket receipts. Any place an "identified" sponsor pays to deliver
their message through a medium is advertising.

[edit] Digital advertising

Television advertising / Music in advertising

The TV commercial is generally considered the most effective
mass-market advertising format, as is reflected by the high prices
TV networks charge for commercial airtime during popular TV
events. The annual Super Bowl football game in the United States
is known as the most prominent advertising event on television.
The average cost of a single thirty-second TV spot during this
game has reached US$3 million (as of 2009). The majority of
television commercials feature a song or jingle that listeners soon
 relate to the product. Virtual advertisements may be inserted into
regular television programming through computer graphics. It is
typically inserted into otherwise blank backdrops[10] or used to
replace local billboards that are not relevant to the remote
broadcast audience.[11] More controversially, virtual billboards may
be inserted into the background[12] where none exist in real-life.
This technique is especially used in televised sporting events[13] [14]
Virtual product placement is also possible.;[15][16] Infomercials: An
infomercial is a long-format television commercial, typically five
minutes or longer. The word "infomercial" combining the words
"information" & "commercial". The main objective in an
infomercial is to create an impulse purchase, so that the consumer
sees the presentation and then immediately buys the product
through the advertised toll-free telephone number or website.
Infomercials describe, display, and often demonstrate products and
their features, and commonly have testimonials from consumers
and industry professionals.
Radio advertising
Radio advertising is a form of advertising via the medium of radio.
Radio advertisements are broadcast as radio waves to the air from
a transmitter to an antenna and a thus to a receiving device.
Airtime is purchased from a station or network in exchange for
airing the commercials. While radio has the obvious limitation of
being restricted to sound, proponents of radio advertising often cite
this as an advantage.
Online advertising
Online advertising is a form of promotion that uses the Internet and
World Wide Web for the expressed purpose of delivering
marketing messages to attract customers. Examples of online
advertising include contextual ads that appear on search engine
results pages, banner ads, in text ads, Rich Media Ads, Social
network advertising, online classified advertising, advertising
networks and e-mail marketing, including e-mail spam.
Product placements
 Covert advertising, also known as guerrilla advertising, is when a
product or brand is embedded in entertainment and media. For
example, in a film, the main character can use an item or other of a
definite brand, as in the movie Minority Report, where Tom
Cruise's character John Anderton owns a phone with the Nokia
logo clearly written in the top corner, or his watch engraved with
the Bulgari logo. Another example of advertising in film is in I,
Robot, where main character played by Will Smith mentions his
Converse shoes several times, calling them "classics," because the
film is set far in the future. I, Robot and Spaceballs also showcase
futuristic cars with the Audi and Mercedes-Benz logos clearly
displayed on the front of the vehicles. Cadillac chose to advertise
in the movie The Matrix Reloaded, which as a result contained
many scenes in which Cadillac cars were used. Similarly, product
placement for Omega Watches, Ford, VAIO, BMW and Aston
Martin cars are featured in recent James Bond films, most notably
Casino Royale. In "Fantastic Four: Rise of the Silver Surfer", the
main transport vehicle shows a large Dodge logo on the front.
Blade Runner includes some of the most obvious product
placement; the whole film stops to show a Coca-Cola billboard.

[edit] Physical advertising

Press advertising
Press advertising describes advertising in a printed medium such as
a newspaper, magazine, or trade journal. This encompasses
everything from media with a very broad readership base, such as a
major national newspaper or magazine, to more narrowly targeted
media such as local newspapers and trade journals on very
specialized topics. A form of press advertising is classified
advertising, which allows private individuals or companies to
purchase a small, narrowly targeted ad for a low fee advertising a
product or service. Another form of press advertising is the
Display Ad, which is a larger ad (can include art) that typically run
in an article section of a newspaper.
 Billboard advertising: Billboards are large structures located in
public places which display advertisements to passing pedestrians
and motorists. Most often, they are located on main roads with a
large amount of passing motor and pedestrian traffic; however,
they can be placed in any location with large amounts of viewers,
such as on mass transit vehicles and in stations, in shopping malls
or office buildings, and in stadiums.

The RedEye newspaper advertised to its target market at North Avenue

Beach with a sailboat billboard on Lake Michigan.
Mobile billboard advertising
Mobile billboards are generally vehicle mounted billboards or
digital screens. These can be on dedicated vehicles built solely for
carrying advertisements along routes preselected by clients, they
can also be specially equipped cargo trucks or, in some cases, large
banners strewn from planes. The billboards are often lighted; some
being backlit, and others employing spotlights. Some billboard
displays are static, while others change; for example, continuously
or periodically rotating among a set of advertisements. Mobile
displays are used for various situations in metropolitan areas
throughout the world, including: Target advertising, One-day, and
long-term campaigns, Conventions, Sporting events, Store
 openings and similar promotional events, and Big advertisements
from smaller companies.
In-store advertising
In-store advertising is any advertisement placed in a retail store. It
includes placement of a product in visible locations in a store, such
as at eye level, at the ends of aisles and near checkout counters,
eye-catching displays promoting a specific product, and
advertisements in such places as shopping carts and in-store video
displays.
Coffee cup advertising
Coffee cup advertising is any advertisement placed upon a coffee
cup that is distributed out of an office, café, or drive-through
coffee shop. This form of advertising was first popularized in
Australia, and has begun growing in popularity in the United
States, India, and parts of the Middle East.[citation needed]
Street advertising
This type of advertising first came to prominence in the UK by
Street Advertising Services to create outdoor advertising on street
furniture and pavements. Working with products such as Reverse
Graffiti and 3d pavement advertising, the media became an
affordable and effective tool for getting brand messages out into
public spaces.
Celebrity branding
This type of advertising focuses upon using celebrity power, fame,
money, popularity to gain recognition for their products and
promote specific stores or products. Advertisers often advertise
their products, for example, when celebrities share their favorite
products or wear clothes by specific brands or designers.
Celebrities are often involved in advertising campaigns such as
television or print adverts to advertise specific or general products.
The use of celebrities to endorse a brand can have its downsides,
however. One mistake by a celebrity can be detrimental to the
public relations of a brand. For example, following his
performance of eight gold medals at the 2008 Olympic Games in
Beijing, China, swimmer Michael Phelps' contract with Kellogg's
 was terminated, as Kellogg's did not want to associate with him
after he was photographed smoking marijuana.

[edit] Sales promotions

Sales promotions are another way to advertise. Sales promotions are

double purposed because they are used to gather information about what
type of customers you draw in and where they are, and to jumpstart
sales. Sales promotions include things like contests and games,
sweepstakes, product giveaways, samples coupons, loyalty programs,
and discounts. The ultimate goal of sales promotions is to stimulate
potential customers to action. [17]

[edit] Media and advertising approaches

Increasingly, other media are overtaking many of the "traditional" media

such as television, radio and newspaper because of a shift toward
consumer's usage of the Internet for news and music as well as devices
like digital video recorders (DVRs) such as TiVo.

Advertising on the World Wide Web is a recent phenomenon. Prices of

Web-based advertising space are dependent on the "relevance" of the
surrounding web content and the traffic that the website receives.

Digital signage is poised to become a major mass media because of its

ability to reach larger audiences for less money. Digital signage also
offer the unique ability to see the target audience where they are reached
by the medium. Technological advances have also made it possible to
control the message on digital signage with much precision, enabling the
messages to be relevant to the target audience at any given time and
location which in turn, gets more response from the advertising. Digital
signage is being successfully employed in supermarkets.[18] Another
successful use of digital signage is in hospitality locations such as
restaurants.[19] and malls.[20]
E-mail advertising is another recent phenomenon. Unsolicited bulk E-
mail advertising is known as "e-mail spam". Spam has been a problem
for email users for many years.

Some companies have proposed placing messages or corporate logos on

the side of booster rockets and the International Space Station.
Controversy exists on the effectiveness of subliminal advertising (see
mind control), and the pervasiveness of mass messages (see
propaganda).

Unpaid advertising (also called "publicity advertising"), can provide

good exposure at minimal cost. Personal recommendations ("bring a
friend", "sell it"), spreading buzz, or achieving the feat of equating a
brand with a common noun (in the United States, "Xerox" =
"photocopier", "Kleenex" = tissue, "Vaseline" = petroleum jelly,
"Hoover" = vacuum cleaner, "Nintendo" (often used by those exposed to
many video games) = video games, and "Band-Aid" = adhesive
bandage) — these can be seen as the pinnacle of any advertising
campaign. However, some companies oppose the use of their brand
name to label an object. Equating a brand with a common noun also
risks turning that brand into a genericized trademark - turning it into a
generic term which means that its legal protection as a trademark is lost.

As the mobile phone became a new mass media in 1998 when the first
paid downloadable content appeared on mobile phones in Finland, it was
only a matter of time until mobile advertising followed, also first
launched in Finland in 2000. By 2007 the value of mobile advertising
had reached $2.2 billion and providers such as Admob delivered billions
of mobile ads.

More advanced mobile ads include banner ads, coupons, Multimedia

Messaging Service picture and video messages, advergames and various
engagement marketing campaigns. A particular feature driving mobile
ads is the 2D Barcode, which replaces the need to do any typing of web
addresses, and uses the camera feature of modern phones to gain
immediate access to web content. 83 percent of Japanese mobile phone
users already are active users of 2D barcodes.

A new form of advertising that is growing rapidly is social network

advertising. It is online advertising with a focus on social networking
sites. This is a relatively immature market, but it has shown a lot of
promise as advertisers are able to take advantage of the demographic
information the user has provided to the social networking site.
Friendertising is a more precise advertising term in which people are
able to direct advertisements toward others directly using social network
service.

From time to time, The CW Television Network airs short programming

breaks called "Content Wraps," to advertise one company's product
during an entire commercial break. The CW pioneered "content wraps"
and some products featured were Herbal Essences, Crest, Guitar Hero II,
CoverGirl, and recently Toyota.

Recently, there appeared a new promotion concept, "ARvertising",

advertising on Augmented Reality technology.

[edit] Current trends

[edit] Rise in new media

With the dawn of the Internet came many new advertising opportunities.
Popup, Flash, banner, Popunder, advergaming, and email advertisements
(the last often being a form of spam) are now commonplace. Particularly
since the rise of "entertaining" advertising, some people may like an
advertisement enough to wish to watch it later or show a friend. In
general, the advertising community has not yet made this easy, although
some have used the Internet to widely distribute their ads to anyone
willing to see or hear them. In the last three quarters of 2009 mobile and
internet advertising grew by 18.1% and 9.2% respectively. Older media
advertising saw declines: −10.1% (TV), −11.7% (radio), −14.8%
(magazines) and −18.7% (newspapers ).[citation needed]
[edit] Niche marketing

Another significant trend regarding future of advertising is the growing

importance of the niche market using niche or targeted ads. Also brought
about by the Internet and the theory of The Long Tail, advertisers will
have an increasing ability to reach specific audiences. In the past, the
most efficient way to deliver a message was to blanket the largest mass
market audience possible. However, usage tracking, customer profiles
and the growing popularity of niche content brought about by everything
from blogs to social networking sites, provide advertisers with audiences
that are smaller but much better defined, leading to ads that are more
relevant to viewers and more effective for companies' marketing
products. Among others, Comcast Spotlight is one such advertiser
employing this method in their video on demand menus. These
advertisements are targeted to a specific group and can be viewed by
anyone wishing to find out more about a particular business or practice
at any time, right from their home. This causes the viewer to become
proactive and actually choose what advertisements they want to view.[21]

[edit] Crowdsourcing

Main article: Crowdsourcing

The concept of crowdsourcing has given way to the trend of user-

generated advertisements. User-generated ads are created by consumers
as opposed to an advertising agency or the company themselves, most
often they are a result of brand sponsored advertising competitions. For
the 2007 Super Bowl, the Frito-Lays division of PepsiCo held the Crash
the Super Bowl contest, allowing consumers to create their own Doritos
commercial.[22] Chevrolet held a similar competition for their Tahoe line
of SUVs.[22] Due to the success of the Doritos user-generated ads in the
2007 Super Bowl, Frito-Lays relaunched the competition for the 2009
and 2010 Super Bowl. The resulting ads were among the most-watched
and most-liked Super Bowl ads. In fact, the winning ad that aired in the
2009 Super Bowl was ranked by the USA Today Super Bowl Ad Meter
as the top ad for the year while the winning ads that aired in the 2010
Super Bowl were found by Nielsen's BuzzMetrics to be the "most
buzzed-about".[23][24]

This trend has given rise to several online platforms that host user-
generated advertising competitions on behalf of a company. Founded in
2007, Zooppa has launched ad competitions for brands such as Google,
Nike, Hershey’s, General Mills, Microsoft, NBC Universal, Zinio, and
Mini Cooper. Crowdsourced advertisements have gained popularity in
part to its cost effective nature, high consumer engagement, and ability
to generate word-of-mouth. However, it remains controversial, as the
long-term impact on the advertising industry is still unclear.[25]

[edit] Global advertising

Advertising has gone through five major stages of development:

domestic, export, international, multi-national, and global. For global
advertisers, there are four, potentially competing, business objectives
that must be balanced when developing worldwide advertising: building
a brand while speaking with one voice, developing economies of scale in
the creative process, maximising local effectiveness of ads, and
increasing the company’s speed of implementation. Born from the
evolutionary stages of global marketing are the three primary and
fundamentally different approaches to the development of global
advertising executions: exporting executions, producing local
executions, and importing ideas that travel.[26]

Advertising research is key to determining the success of an ad in any

country or region. The ability to identify which elements and/or
moments of an ad that contributes to its success is how economies of
scale are maximised. Once one knows what works in an ad, that idea or
ideas can be imported by any other market. Market research measures,
such as Flow of Attention, Flow of Emotion and branding moments
provide insight into what is working in an ad in any country or region
because the measures are based on the visual, not verbal, elements of the
ad.[27]
[edit] Foreign public messaging

Foreign governments, particularly those that own marketable

commercial products or services, often promote their interests and
positions through the advertising of those goods because the target
audience is not only largely unaware of the forum as vehicle for foreign
messaging but also willing to receive the message while in a mental state
of absorbing information from advertisements during television
commercial breaks, while reading a periodical, or while passing by
billboards in public spaces. A prime example of this messaging
technique is advertising campaigns to promote international travel.
While advertising foreign destinations and services may stem from the
typical goal of increasing revenue by drawing more tourism, some travel
campaigns carry the additional or alternative intended purpose of
promoting good sentiments or improving existing ones among the target
audience towards a given nation or region. It is common for advertising
promoting foreign countries to be produced and distributed by the
tourism ministries of those countries, so these ads often carry political
statements and/or depictions of the foreign government's desired
international public perception. Additionally, a wide range of foreign
airlines and travel-related services which advertise separately from the
destinations, themselves, are owned by their respective governments;
examples include, though are not limited to, the Emirates airline
(Dubai), Singapore Airlines (Singapore), Qatar Airways (Qatar), China
Airlines (Taiwan/Republic of China), and Air China (People's Republic
of China). By depicting their destinations, airlines, and other services in
a favorable and pleasant light, countries market themselves to
populations abroad in a manner that could mitigate prior public
impressions. See: Soft Power

 See also: International Travel Advertising

[edit] Diversification

In the realm of advertising agencies, continued industry diversification

has seen observers note that “big global clients don't need big global
agencies any more”.[28] This is reflected by the growth of non-traditional
agencies in various global markets, such as Canadian business TAXI and
SMART in Australia and has been referred to as "a revolution in the ad
world".[29]

[edit] New technology

The ability to record shows on digital video recorders (such as TiVo)

allow users to record the programs for later viewing, enabling them to
fast forward through commercials. Additionally, as more seasons of pre-
recorded box sets are offered for sale of television programs; fewer
people watch the shows on TV. However, the fact that these sets are
sold, means the company will receive additional profits from the sales of
these sets. To counter this effect, many advertisers have opted for
product placement on TV shows like Survivor.

[edit] Advertising education

Advertising education has become widely popular with bachelor, master

and doctorate degrees becoming available in the emphasis. A surge in
advertising interest is typically attributed to the strong relationship
advertising plays in cultural and technological changes, such as the
advance of online social networking. A unique model for teaching
advertising is the student-run advertising agency, where advertising
students create campaigns for real companies.[30] Organizations such as
American Advertising Federation and AdU Network partner established
companies with students to create these campaigns.

With the entry of MNCs in India, a new concept of

marketing has gained momentum, especially in the
field of consumer goods. The Internet is playing a key
role in global marketing system to bring consumer
goods direct from producers to consumers...
The Recession in the global economy has compelled the
economists to think over various means to combat unprecedented
problems before the agricultural and industrial sectors, especially
in the underdeveloped and developing countries.

It is strange that millions of people throughout the world are

victims of starvation despite surplus production of food grains in
different countries. India itself is an example of such a situation.
Political rivalry among the rich in developing countries has left
the innocent people to die or suffer for no fault of their own.

In the industrial sector, a lot of changes are taking place every day
with increasing output and decreasing demands. Industries have
come down heavily on cutting down workforce and limit
production. Survival of industries is at stake if such practices are
allowed to continue. Agitations against such practices are
continuing in almost all the countries demanding rehabilitation of
affected people. No solution to the problem is in sight as yet.

Meanwhile, multinational companies (MNCs) having an access to

the global markets are paralysing the functioning of indigenous
industries. Drastic changes in marketing practices have rendered
millions of people jobless in recent years. Exploration of human
resources has begun taking advantage of prevailing situation.

With the entry of MNCs in India, a new concept of marketing has

gained momentum, especially in the field of consumer goods. The
Internet services are playing a key role in global marketing system
to reach out consumer goods direct from the producers to the
consumers. The idea behind the system is to eliminate middlemen
between the manufacturers and the consumers and to provide
maximum assistance to consumers in getting standard goods at
competitive prices.

There is a widespread network in the country providing full or

part time employment to the educated unemployed youths who
are easily attracted by the promises of hefty remuneration for
their services. The organisers of the network have gone a long way
encouraging achievements in the field of marketing by creating a
large workforce for introducing the products said to be having
global standard.

The new concept in marketing does not insist on traditional sales

practices adopted by Indian manufacturers of supplying their
products through agents and dealers. Its sole motive is to change
the habit of consumers by going for top class products in the
world at cheaper and competitive prices. It claims that by
eliminating middlemen, the benefit is directly passed on to the
consumers. Further, the prices quoted by the MNCs have
uniformity on global basis besides the quality.

Stress is given to sponsor more and more people and bring them
in the network fold. Performance is considered as basis for
seniority of network personnel. Because of the team work, the
benefit is shared in a systematic way among the members. The
seniors get better results for their efforts to initiate and bring
more people under the system. The benefits are credited to
respective accounts. The entire team keeps in mind the aims and
targets to influence the consumers to go for the products under
the network.

Association of an individual in the networking does not cost much

on the face value. It requires only an amount to cover-up the cost
of the face value, samples and literature pertaining to the
products meant for marketing. But the extravagant expenditure
for attending the business building seminars, weekly sales
promotions meetings, which take major portion of expected
earnings of the participants go unheeded. In fact, the network
marketing system has created a team of 'confused persons', who
wish to be rich in the shortest span of time without going into
deep root of the scheme.

This system is creating a new class of middlemen by engaging

young people, offering lucrative commission and bonus on their
performance and by bringing new members into the network
family. As the family grows, the income of members soars. The
impact of income of network personnel ultimately falls on the
purchase made by the consumers and accordingly the prices are
kept higher to accommodate the commission and bonus payable
to the network members.

It is difficult to convince the consumers under the present

economic scenario in the country where a large number of
manufacturers claim to supply standard goods of similar quality
at the most competitive prices. It is yet to be seen how well the
network marketing concept works. A number of organisations
have come into the field and claim to have good response in the
market.
importance of marketing in today’s global economy

Today, businesses around the world, both large and small, cannot
ignore the impact that the global economy is having on their
performance.  Globalisation, the internet, and information
transparency have led to an increasingly mobile workforce, ever
more fickle customers, and rapidly changing technologies and
business models.  One result of this seemingly inexorable trend is
that companies are less able to predict - let alone control - the
short-term shape of their own markets.

As a result, more and more organisations are choosing to adopt a

marketing-led philosophy to enable them to win market share and
capture and retain the hearts and minds of current and
prospective customers. Marketing is becoming more important as
organisations around the world strive to develop products and
services that appeal to their customers and aim to differentiate
their offering in the increasingly-crowded global marketplace.

These complex issues heighten the need for effective marketing

whilst expanding its scope beyond the ‘marketing function’.  Put
simply, marketing is no longer the sole prerogative of a single
‘function’, even if the leadership on marketing comes from that
function, together with the framework within which marketing
strategies are conceived, developed, planned, executed,
reviewed and improved.

It used to be that a company could rise to the top of its industry

and deliver superior shareholder returns by doing one thing well. 
Not anymore.  Marketing’s perceived ability to orchestrate
collaboration across an organisation (and its role in driving
demand in markets that suffer from low rates of consumption)
indicates that marketing is becoming increasingly important, even
in organisations and sectors where it has, perhaps, traditionally
taken a back seat.