In recent times the global market is very important almost every company. To be a global around the world brings many advantages to the companies. When the companies are becoming a global they need to be standardized their product or modified to local society. According to Levit, all the companies which want to be a global have to standardized their product because human htiyac are same everywhere around the world. It should not be consider local ihtiyaclar. The advertisement also has to been standardized. Nowadays big companies try to demand standard product but it is not always a rule. Depend on the new market companies are deciding that they are entering the market with standardized product or modified product. Sometimes enter the market with standardized product bring many advantages. On the other hand it does not work always.
There are many culture around the world, the standardized advertisement could not work always. This essay will look at global advertising, standardized advertising and compromise advertisement and how they are working around the world in Part A. in part B, it will consider high-culture context and low culture context.
2. ADVERTISING STRATEGIES
There are two advertising strategies. The first dimension is to what extent an advertisement or a campaign is standardized and the second the geographical coverage of the campaign. As indicated earlier, there are three basic schools of thought regarding advertising standardization. First one is standardization assumes that due to faster communication there is a convergence of markets and that costumer are becoming increasingly similar. Second is an adaptation point to cultural differences and conclude that advertising must be adapted and the last one compromise recognizes local differences but also that some degree of advertising standardization is possible.
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2.1. THE STANDARDIZED ADVERTISING APPROACH
Definition of standardized or global advertising approach is practice of advertising the same brand or same product in the same way everywhere around the world. It looks for similarity across countries and segments to catch up a common thread to capitalize on adverting. That opinion shows that human needs and emotions are the same in everywhere. In addition this communication and transportation, technology, create a global market and desires of costumer around the world become homogenized. Global advertising focuses on localization and standardization of the advertising company from a marketing strategy perspective without costumer regarding.
According to Levitt, corporations should take advantages of economies of scale in marketing and producing at the same price, the same product with the same message around the world in same time. ( kitap ismi)
There are many advantages of advertising standardization. The most important advantage is cost saving. The second advantage of using standard advertisement is dealing costumers by establishing a common image around the world. Third of all, it provides to exploit good ideas that are difficult to find worldwide and finally, it helps organizational management in term of planning, control and coordination. The numbers of research are showed that huge number of company use standardization in their advertisement.
Costumers prefer locally advertisement and product. However, big brands generally have two types of advertisement, one of them is located and the other one is standard advertisement.
On the other hand, global advertisement is not always necessary. For example Coco-cola, Pepsi do some modification to accommodate local norms on their advertisement. Moreover Levi’s jean is a global brand too and it uses localized advertisement.
Multinational companies also use local advertisement too. Brands can not be global but they could be available number of countries. For example, Palmolive soaps, Head & Shoulders, the L’oreal hair care line, Nivea body lotions, and number of airlines ( e.g Lufthansa, British Airways ect.). Those are companies develop their brands with a lead agency. (kitap ismi)
2.2 MODIFIED ADVERTISING
The adaptation advertising is the opposite view compared to the standardization advertisement. Adaptation’s reason is to create a differential advantage through local sensitivity and increased communications effectiveness in advertisement. (Hite and Fraser, 1990). Those argues for adaptation generally points to difference among nations in terms of cultures. Stages of economic development, political and legal system, customer values and lifestyles are trying to adaptation the country. (Cavusgil et al., 1993). This argues advertisers need to consider barriers to standardization such as media culture, taste, economic and availability considerations. Those differences it is necessary to develop adapted advertising programmes. Some believe that advertising is more difficult to standardize than the other elements of the marketing mix. For example, advertising is more resistant to uniformitarian than are products and brands. Advertising is more dependent on cultural influence than other marketing elements. Reason of these characteristics, the visual and verbal parts of advertising are in particular sensitive and use of local language, models and scenery increases the probability for the advertisement to be effective.
It has been suggested that multicounty advertising campaigns are employed by markets mainly when a brand is significant level of circumstance to exit. The brand has to modified in to commonalities of consumption patterns and psychographic, cultural, economic and sociological factors among its target costumer in each country where is marketed. Multinational campaigns are complex because it needs many strategies at the same time for many people and many companies. Advertisement modified can run two ways. One of them is single county development and the second one is multicounty development.
2.3 COMPROMIS ADVERTISING
The compromise advertising is a middle-of-the-road that not just recognizes local differences, but also some degree of advertising standardization is not only possible but also desirable. One way to look at the compromise is to view the standardization versus adaptation as a continuum. It was believed that the difference between adaptation and standardization is in degree rather than kind and that the difference between them should be seen as a continuum. On the one side are companies with highly decentralized, multi-domestic operations and products. On the other side are the absolutely globally advertised companies and brands. In the middle are companies that increasingly standardize products or brands, but still adapt to local differences. A variant of the compromise advertisement is the contingency perspective that suggests that there are factors within and outside the firm that determine the approach to advertising strategies. The contingency models identify the variables that potentially can affect the standardization decision. In recent times a huge number of company use this type of advertising strategy.
The purpose of adaptation is to gain differential advantage by adapting the advertisement to gain maximum effectiveness in terms of response and sales. It is usually linked with a decentralized advertising function. The advantage with a decentralized advertising function is that it allows responsiveness and adaptation to culture, infrastructure and competition. The visual and verbal parts of advertising are particularly sensitive to adaptation and use of local language, models and scenery increases the probability for the advertisement to be effective. Consequently, adaptation of creative presentations and decentralized implementations of campaigns should offer greater benefits than less culturally-tied functions. Accurate positioning arguments and price discrimination are other reasons for adaptation. When national markets are more similar within than between countries, adaptation results in a more accurate positioning, leading to higher prices due to price discrimination. Increased costs and a loss of consistent brand image is the major disadvantage of advertising adaptation.
In recent times most of big companies uses both advertising strategy local advertising and standardized advertisement and branding. For example, Mc Donald Company has different names around the world. The company’s name in France Mc Do and that refers to popular French a hot and cheese sandwich. Mc Donald’s company tries to local symbol and habits in France. Advertising of Mc Donald’s is linked to Asterix and Obelisk who are the most famous carton character in the nation. Mc Donald’s restaurants have different opportunity and different aspect of service. For example, the restaurant is a place goes for dating in China. In Taiwan, it is added VIP rooms for meeting or family diners because it is needed big place for private space. In 2005, the chain of restaurants started adapted to local consumer wishes in Europe. They changed their plastic seating place to comfortable furniture. It was reported that higher quarterly sales growth than the United States in Europe in 2007.
BRANDING and Language
As standardized advertising or local advertising, companies use different ways for branding. Mc Donald’s, Coco-Cola or Pepsi and many big brands use same name same logo and same brand each market. On the other hand there are number of companies use different brand or log for different countries. For example, Unilever ice cream uses different name for different countries. It is being used Frigo in Spain, Algida in Poland Greece, Bulgaria and Turley. In Italy, it is being used Eldorado. When the new product introduce with new market, the product name meaning reinterpreted or change. The name of brand could be meant different in different countries.
A global brand could have one logo or name and thus be recognized around the world. The point is the product can not be standard. For example, Knorr soup can be found everywhere around the world in almost every supermarket. The brand got global image and name on the other hand it was modified national taste. In Singapore there is chicken noodle soup and in Hungry goulash soup. Different taste of soup each country but packages are similar an the logo is same around the world.
The concepts high-context communication and low-context communication originate from Edward T. Hall and are widely used today.
2. HIGH-CONTEXT CULTURE and LOW-CONTEXT CULTURE
A high-context culture is using high context communication with little communicated words or message. In high context culture listener knows every little points and must be told everything. Spain, Saudi Arabia, China and Japan are described as a high context culture.
On the other hand, low context culture uses most information in explicit codes. In that context listener already knows context and does not need to know back round information. Many European Countries, Canada and The United States are in low context culture.
Communication between those context culture people is generally fraught with irritation because in high context communication does not needed to give every single information or back round but in low context communication should be given more information than usual.
According to Hall, in high context culture communication most of the information have to be part of the context. On the other hand information in low context massage is carried in code of massage. It is also defined as inaccessible to the outsider. The culture demonstrates high value and positive attitudes toward worlds. Name of a book
In advertisement, argumentation is found more in low cultures than advertising in high culture. The important consequence of context is that sentences and words as well as pictures have different meaning depending on the context.
However all countries have some characteristic of low and high context culture.
2.1 Comparing High-context Culture and Low-context Culture
Overtness of messages
Many covert and implicit messages, with use of metaphor and reading between the lines.
There is a explicit messages basic and clear.
Locus of control and attribution for failure
Inner locus of control and personal acceptance for
Outer locus of control and blame of others for failure
Use of non-verbal communication
Much nonverbal communication
More focus on verbal communication than body language
Expression of reaction
Reserved, inward reactions
Visible, external, outward reaction
Cohesion and separation of groups
Strong distinction between in-group and out-group. Strong sense of family.
Flexible and open grouping patterns, changing as needed
Strong people bonds with affiliation to family and community
Fragile bonds between people with little sense of loyalty.
Level of commitment to relationships
High commitment to long-term relationships.
Relationship more important than task.
Low commitment to relationship. Task more important than relationships.
Flexibility of time
Time is open and flexible.
Process is more important than product
Time is highly organized.
Product is more important than process
3. Medium Culture
All cultures can contain high context culture and low context culture at the same time. It is not certain rule there is only one culture in one country. For example, China, Korea, and the U.S. are describing low and high-context cultures.
4. FROM HIGH CONTEXT CULTURE TO LOW CONTEXT CULTURE AND FROM LOW CONTEXT CULTURE TO HIGH CONTEXT CULTURE
4. MONOCHRONIC AND POLYCHRONIC TIME
Hall looks at people’s handle time disturbing M-time and P-time cultures. M-time cultures people tend to do one think at one time. On the other hand in P-times people doing many thinks at the same time. When different cultures people meet, they can offend each other because they have got different expectation from the time.
4.1 Monochronic Time (M-time)
M time means people doing one thing at one time. Monochnoric people tend to be low context. M-time is tightly compartmentalized: schedules are almost sacred.
4.2 Polychronic Time (P-time)
P-time means, many things to happen simultaneously, with no particular end in sight. P-time is open-ended: completing the task or communication is more important than adhering to a schedule. P-time people tend to high-context culture.
4.3 Comparing M-time and P-time
do one thing at a time
do many things at once
Concentrate on the job at hand
Are easily distracted
Attention to time
Think about when things must be achieved
Think about what will be achieved
Put the job first
Put relationships first
Respect for property
Seldom borrow or lend things
Borrow and lend things often and easily
base promptness relationship factors
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