Ethics in Advertising, business and finance homework help

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Select three advertisements from three different countries using traditional advertising venues and Internet advertising venues. Assess how culture and ethics influence understanding the ad from each country.Incorporate concepts and examples from this week’s lecture in your post

lecture:

Welcome to the world of advertising! How many of you think advertisers unfairly influence us and “make” us buy items we do not need, cannot afford, and will not use? If you raised your hand or silently said “I do,” then you are among a majority of people who think advertisers will lie to encourage sales and believe consumers are helpless pawns in the corporate game of profitability.



Nothing could be further from the truth! Advertisers design catchy slogans, phrases, and songs to help us remember the points about a particular item the organization thinks will appeal to us. Did advertisers create the need? No! Did advertisers determine whether or not we wanted an item? Again, no! Although the psychology behind buyer motivation is the focus for another course, advertisers only use what is known to appeal to a specific group of buyers in hopes of affecting sales.



We are entering a world of bright lights, vivid colors, and every sensory perception will become aware when a commercial is on that appeals to something we have decided we need. Why do we want a Mercedes? Good quality? No, superior quality! But does it really cost $30,000 more to manufacturer a Mercedes than, say, a Ford? Most likely not. Then why do we have a mental image of a Mercedes as a premium product? Why, advertisers, of course! Keep in mind as we move throughout our course . . . advertisers work very hard to write messages and music that will appeal to us and motivate us into action.



The objective of advertising is to “inform, persuade, and reminder consumers about business and organizational products and other offerings” (Ogden & Ogden, 2014, section 4.1). There are three message executional frameworks: cognitive; affective; and conative, and how marketers determine which strategy has the highest probability of producing the desired effect on consumer behavior (Clow & Baack, 2012). Parker (2013) stated national universities tend to use more emotional, ego-based ads whereas regional universities tend to use more informational and rational ads. National universities use the affective message strategy, whereas regional universities use the cognitive message strategy. The key is to determine what type of message has the greatest chance of impacting consumer behavior.



Writing an advertising plan requires tedious and detailed concentration on many items. Figure 4.1 (Ogden & Ogden, 2014) in our text lists the ten steps in writing an advertising plan. As you can see from the figure, there is a tremendous amount of work involved in the planning. Today’s marketing managers are being held responsible for ROI within their allocated budget, so time must be taken to get the advertising plan written in a manner for the greatest possible return.

Media Selection

Media planning is written with the five W’s in mind (Ogden & Ogden, 2014): who, what, why, when and where. Following this format will ensure all the relevant information will be included within the media planning. In addition, media planning must take such factors as reach, frequency, and Gross Rating Points (GRP) into consideration. Reach refers to the number of people who will be exposed to the advertising message at least one time while the advertising campaign is running. Frequency refers to the average number of times the audience was exposed to the advertisement during the campaign. Finally, Gross Rating Points combine reach with frequency in an effect to determine the weight of the message (Ogden & Ogden).



With all those ads running, how does an organization's message get through all the "clutter"? Clow and Baack (2012) suggested the use of celebrities could capture and keep audience attention. In addition to incorporating the seven principles (visual consistency, sufficient campaign duration, repeated taglines, consistent positioning, simplicity, presentation of an identifiable selling point, and creation of an effective flow) (p. 191), the authors suggested an effective manner of overcome the clutter is ad repetition and running ads on various types of media.



In our current economic downturn, media agencies are scrambling to meet the advertising needs of their customers – customers who now may not have enough money to pay for the media contract still in effect (“Media Agencies,” 2008). Organizations must now deliver results from advertising on an increasingly decreasing advertising budget, a stressful situation for the organization as well as the media agency. For example, KFC has set high standards for their media agency and expect delivery (“Meet,” 2008).



With so many choices available, which media might be the most effective in attracting an organization’s targeted market segment? According to Jeter (2003), an auto advertisement works 50% of the time. But which 50% is working? And in which advertising medium? A common theory, although not supported by scientific methodology, is some media work better than others. Vincent and Vincent (1996) claim television ads have a significant effect on buyer motivating behavior, while magazines are most effective for creating brand awareness.



Nowak, Cameron, and Krugman (1993) declare a survey delivered by mail and telephone actually assist advertisers in which media is most effective for an industry. Their findings indicate audience reach and specific targeting of a desired market segment are most important when selecting an advertising media. Cost is secondary to audience reach.



Yet, how does an advertising executive determine the "best" types of media? Kassaye and Vaccaro (1991/1992) suggested that as the demographics and lifestyles of consumers change, the traditional selection of media must be challenged and reformed. In addition, the cost of such advertising must be considered. Our text does a very good job of discussing reach, frequency, opportunity to see, gross ratings, etc. Does it make sense to advertise in a daily print newspaper if you are advertising about a product targeted toward a Generation Y consumer? Of course not! Instead, advertising professionals must determine a venue where the targeted market segment congregates. Where might a media venue be that offers the greatest opportunity of reaching Generation Y consumers? We will discuss this issue in greater detail within our discussion forums. In conclusion, which media is “best”? In short, choose an advertising media for an organization’s advertising message that has the greatest probability of being read, seen, or heard by the organization’s targeted market segments.


Forbes School of Business Faculty

References:

Clow, K. E., & Baack, D. (2012). Integrated advertising, promotion, and marketing communications (5th ed.). Upper Saddle River, NJ: Pearson Education, Inc.

Jeter, L. W. (2003, September 15-21). Auto ads pack punch, but which medium works best? Mississippi Business Journal, A15.

Kassaye, W. W., & Vaccaro, J. P. (1991/1992, Winter). Increasing advertising effectiveness through better selection of the media. Review of Business, 13(3), 40.

Media agencies: Time for a new model? Marketing Week, 27.

Meet the client (2008, October 14). Media Week, 17.

Nowak, G. J., Cameron, G. T., & Krugman, D. M. How local advertisers choose and use advertising media. Journal of Advertising Research, 33(6).

Ogden, J. R., & Ogden, D. T. (2014). Utilizing a strategic marketing approach to managing marketing communications. San Diego, CA: Bridgepoint Education, Inc.

Parker, B. T. (2013). Institutional advertising in higher education: A comparison of creative strategy, message content, and executional devices in television commercials from national and regional universities. American Academy of Advertising. Conference Proceedings (online): 199. Lubbock, TX: American Academy of Advertising.

Vincent, M. & Vincent, A. (1996, June). Which medium works best? Admap, 31(6), 12.

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Explanation & Answer

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COMPANY GLOBALIZATION
NAME
COURSE
INSTITUTION
DATE

Globalization of a company
Globalization is a situation where business and organizations sell their products
internationally. This process is usually made possible by the existence of international trade.
Information technology also plays a big role in realizing globalization (Levitt, 1993).
Information technology helps in advertising the organization’s products and making it known
internationally.
Challenges experienced in the globalization process
Despite some challenges in the process of realizing globalization, there exist enormous
advantages in globalization (Clark et al, 2003). Some challenges that are usually encountered in
globalization includes transportation of goods to the different parts of the world, the cost
incurred during the transportation may be very high hence there is need for a company to come
up with the cheapest and most convenient transport mode. Another challenge is variable
marketing strategies in different countries (Levitt, 1993). There is need for a company to assess
various marketing strategies in different regions in which it intended to invest. Cultural
uncertainty is also part of the challenges faced in the globalization process and needs to be
addressed properly. Other challenges includes;
a. Language crises - A product might have a name that has a certain meaning to the people
of a certain region hence the product may not receive warm welcome (Levitt, 1993). To
avoid such a case there is need to conduct prior research before launching the product on
another region.
b. Legal and technological forces - As compared to the domestic market where the company
has only to obey the laws of the home country, international market requires the company
to obey the laws of the country in which it wants to venture its business. Some countries

prohibit some products such as bear and cigarettes hence if a company deals with such
products it is hard for it to start such a business in that country (Levitt, 1993).
c. Foreign exchange risks - There is usually constant fluctuation of currency which possess
a great risk to export oriented companies.
d. Political risks - These may be as a result of war, revolution or terrorism. They always
affect the business negatively (Need, 2006). Political stability of a country is a key issue
to look at before starting a business in any country.
Advantages of globalization to the company
1. Increased revenue streams - The main reason for globalizing a company is to increase its
profit margins, where the company has saturated the local market it is important to
venture in to the global market in order to expand their business (Need, 2006). This will
be achieved by creating new revenues while minimizing the costs.
2. Market development - Globalization helps in developing the market of the company. In
case the market in one region goes down, the other regions save the company from going
to a standstill (Need, 2006). This implies that if at one time some factors such as the
economy, government regulations, supply issue or the economy of a certain region or
country favors the company negatively, the other regions will favor the company
positively hence recovering the loses which will be made in the negatively affected
region.
3. Increase talent pool - Where the company sets up global marketing teams, the various
teams can collaborate virtually hence contributes to the success of the company.
This is usually as a result of different talents being brought together.
Personal rationale on the decision for the company to be globalized

1. The local market is becoming saturated. - It is becoming more challenging to increase
the sales and profits due to limited market. This is due to the saturation of the
domestic market in which the company operates. This can only be resolved by getting
market for the company’s product outside the region where market is readily
available (Need, 2006). This will result to increased sales which results to direct
increase in the profits of the company helping the company to grow.
2. Limited domestic market - The company has the goal of becoming big. This goal
cannot be realized on the domestic market alone since its limited to only small sales
hence little profit. For the company to realize this goal there is need for it to get
globalized in order to have large market for its products (Levitt, 1993).
3. Slow growth by domestic market - The company’s vision of growing big cannot be
realized on such a market. The high growth rate of the company requires international
markets where the company can sell the company’s products.
4. The company’s need to be felt internationally cannot be realized if the company
limits itself to the local market. The company need to move out to the international
market to sell its product.
...


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