MAC 424- International Advertising and Propaganda

2.0 OBJECTIVES At the end of this unit you should be able to: Explain the importance of global advertising 3.0 MAIN CONTENT 3.1 Importance of International Advertising There are several reasons why advertising is such an important part of many international marketers’ promotional mix. Belch and Belch (2003), identified the following key ones: First, it can be a very cost-effective method for communicating with large audiences. For example, the average 30-second spot on the four major networks during prime-time network television reaches nearly 10 million households. The cost per thousand households reached is around $14.27. Advertising can be used to create brand images and symbolic appeals for a company or brand, a very important capability for companies selling products and services that are difficult to differentiate on functional attributes. For example, since 1980 Absolute has used creative advertising to position its vodka as an upscale, fashionable, sophisticated drink and differentiate it from other brands. The advertising strategy has been to focus attention on two unique aspects of the product: the Absolute name and the distinctive shape of the bottle. Most of the print adverts used in this long running campaign are specifically tailored for the magazine or region where they appear. The campaign, one of the most successful and recognizable in advertising history, has made the Absolute brand nearly synonymous with imported vodka. While all other spirits sales have declined by more than 40 percent over the past 15 years, Absolute sales have increased 10-fold and the various Absolute brands have a combined 70 percent market share. Another advantage of advertising is its ability to strike a responsive chord with consumers when differentiation across other elements of the marketing mix is difficult to achieve. Popular advertising campaigns attract consumers’ attention and can help generate sales. These popular campaigns can also sometimes be leveraged into successful integrated marketing communications programs. For example, Eveready used the popularity of its Energizer Bunny campaign to generate support from retailers in the form of shelf space, promotional displays, and other merchandising activities.