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Strategic Dilemmas in Global Adverstising Industry

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Added on  2020-05-16

Strategic Dilemmas in Global Adverstising Industry

   Added on 2020-05-16

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GLOBAL FORCES AND THE ADVERTISING INDUSTRY1NameCourseLecturerDate
Strategic Dilemmas in Global Adverstising Industry_1
GLOBAL FORCES AND THE ADVERTISING INDUSTRY2Global forces and the advertising industryIntroductionThis discussion is mainly concerned with the global advertising industry which currentlyis facing a lot of strategic dilemmas due to the high increase in the rate of spending byindividuals and consumers in the third world countries. Other causes of this kind of dilemmawhen it comes to strategies are the high rate of technological advancement. The fast-changingpatterns in the global consumer markets have greatly affected the advertising industry dynamicsand its structure too.Background of the advertising industryIn the traditional days, the main aim of the all the advertising agencies was to reach theirset or aimed audience on behalf of their clients as a way of communicating with them concerningthe goods or the services that they offer. The result of this ended up baring the outcome wherebythe targeted audience made purchases of such goods or services. In both traditional and modernadvertising industry, advertising is carried out through media channels. In the advertising industry, branding is considered very crucial since brands enableconsumer make a difference between products and services. The advertising agencies, therefore,chip into position these brands in a way that is acceptable or pleasing to the target customer whoin this case are the brand users and consumers. Example of this brands includes Coca-Cola brandwhich is a brand for the Coca-Cola drinks company, Nike and the Mercedes Benz brand in themotor vehicle company. Advertising is not only in the private sector business but it’s alsopracticed by the public sector and the government. The government makes use of advertising infields such as healthcare and education advertising to reach its people and also influence
Strategic Dilemmas in Global Adverstising Industry_2
GLOBAL FORCES AND THE ADVERTISING INDUSTRY3individual behavior too. Moreover, the advertising industry has also been of great significance tothe religious and non-profit making organization since it helps them raise lots of funds andawareness.[ CITATION HaL08 \l 1033 ]Procedure in the adverting industry Mainly this is how advertising is carried out. The adverts are mainly placed in selectedmedia (TVs, press, radio or the internet). This is usually done by the advertising agencies oragents who are employed by the client brand companies. They agents utilize their acquired set ofskills and knowledge together with creativity and experience to make these pleasing andpersuasive adverts and other marketing aids. They, therefore, expose them to the consumers viathe above-stated media. When it comes to the issue of agencies payment and compensation plan,they are paid according to the time they spend on this advertisement together with additionalcommission due to the goods and services bought due to their efforts. However, off late bigcompanies are shifting from this compensation plan to a better model of compensation that isbased on several metrics that is growing in sales and market share.Growth in the advertising industryOver the past two decades the advertising industry has tremendously grown and changedand therefore the amount of money that was being spent on such activities has in greater rateincreased too. According to the experts, it was predicted that by 2015, globally the advertisingexpenditure would even exceed 560 billion. The advertising industry is growing and practicingnew trends whereby it’s shifting its focus as emerging market drive revenues from geographicsectors that would have been significant 5 to 10years ago. These include BRIC countries, Middle
Strategic Dilemmas in Global Adverstising Industry_3

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