More Advertising Worldwide

355 Pages·2002·9.05 MB·English

by  Prof. Dr. Jürgen Rothlauf (auth.)

More Advertising Worldwide
Springer
Berlin
Heidelberg
New York
Barcelona
Hong Kong
London
Milan
Paris
Tokyo
Ingomar Kloss
Editor
More Advertising
Worldwide
With Contributions by
I. Abdullah . A. Batraga . R. Boddy . D.R. Chang . U. Dimigen
C. Etayo· G. Frigkas· M. Lee· M.O. Lwin· T. Meenaghan
C. Mondada . 1. Rothlauf . S.L.M. So· P. O'Sullivan . T.D. Szab6
B. Thompson . B. Tsakarestou . M. Vanetti
With 94 Figures
and 151 Tables
, Springer
Professor Dr. Ingomar Kloss
University of Applied Sciences
Zur Schwedenschanze 15
18435 Stralsund
Germany
E-mail: [email protected]
ISBN 978'3'642'53470'6
LibraI"y of Congress Cataloging-in-Publication Data applied for
Die Deutsche Bibliothek - CIP-Einheitsaufnahme
More Advertising Worldwide / Ingomar Kloss (Ed.).
With Contributions by I. Abdullah .... - Berlin; Heidelberg; New York;
Barcelona; Hong Kong; London; Milan; Paris; Tokyo: Springer. 2002
ISBN 978-3-642-53470-6 ISBN 978-3-540-24788-3 (eBook)
DOI 10.1007/978-3-540-24788-3
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Preface
The first volume of this reader was on the subject of advertising conditions
in Australia, Belgium, Finland, France, Germany, India, Japan, Russia,
South Africa, Taiwan and the USA. Not forgetting Marieke de Mooij's
chapter on the impact of culture on advertising.
With this second volume the title "Advertising Worldwide" becomes a
little bit more true. Again other important countries are investigated with
respect to their specific advertising structures. The authors of the different
countries had the same briefing as in the first volume:
• What are the social, cultural or religious features of advertising and
advertising practices?
• Are there any taboos?
• Which legal restrictions apply?
• What kind of advertising infrastructure is there? Are there any institu
tions, federations or boards of advertising?
• Which media are readily available?
• How are media data collected? What are the methods of gaining adver
tising data?
• How can specific target groups be addressed?
• Are there any particular preferences concerning the use of media?
Assessing the choice of countries in the two volumes of "Advertising
Wordwide" one has to conc1ude as a first resume that it is not primarily the
more theoretical question of standardization or differentiation which
dominates the advertising strategy (at least for consumer goods) but the
very practical necessity of adapting to the respective specific advertising
conditions of each country. A standardized global, even multinational ad
vertising campaign has to be considered the exception, rather than the rule.
Thus international advertising is more a question of effectiveness and not
of efficiency. The more an advertising campaign matches local needs, local
infrastructures, local regulations and local habits the more likely is its ac
ceptance.
The paradigm of Marketing is differentiation. Competitive advantages
for exchangeable products can only be obtained by giving the consumer an
argument why to buy this product and not the competitor's one. If the
competitor's product is more or less identical - the normal case in satu-
VI Preface
rated markets - the argument has to be based on a factual or non-factual
difference. If this is true on a national basis can it be false on an interna
tional basis?
Then wh at about the undeniable success of campaigns like Coca-Cola,
Marlboro, Nike? How can one explain that people aB over the world
smoke the same cigarettes, eat the same burgers, drink the same soft-drinks
and walk in the same sneakers? Looking at the different eating-habits in
Asia and Europe this sounds rather unlikely.
Although considered as the exception from the rule an explanation is
necessary. I offer a personal opinion. The success of global campaigns is
based
• either on a uniqueness of the advertised product (Coca-Cola)
• or on a uniqueness of the communicational concept (the Marlboro
Cowboy)
• or - and this is a necessary condition for the two points mentioned
first - a supra-socio-cultural identification platform. Just to provoke:
Would Coca-Cola, Marlboro and McDonald's be as successful if they
came from France, Italy or Japan? Or is their success based on the
fact that these products represent the "American Way of Life" which
seems to be attractive for people in aB continents?
Again in this introduction some highlights of the respective chapters:
• Until recently, in Bulgaria legislation limited the amount of advertis
ing in certain TV-programs. There was not supposed to be advertising
on national TV during prime-time hours - from 7 p.m. to 10 p.m. Now
there are certain limitations, such as no commercials during children's
programs and a maximum of 15 minutes of advertising per hour, of
which not more than five minutes may be in a block.
• In the 90s, the advertising market in China was mainly driven by mul
tinational advertisers and the emerging local advertisers. In recent
years, the confidence and assertiveness shown by local enterprises are
especiaBy encouraging. As the local marketers have more experience
in marketing, they have come out of the shadows of foreign brands.
All top 10 advertising products are local brands. Together they account
for 7 per cent of total advertising in China. As for foreign products, an
international brand leader Coca-Cola ranked 20th among the most ad
vertised products in 2000.
• During the economic recession 1995 in Greece the opacity of media
buying negotiations gave rise to a big issue: the transparency of the
tariffs. The debates under the self-regulation umbreBa failed to result
Preface VII
in mutual understanding and agreement between the interested parties.
As a consequence the Hellenic Ministry of Press and Mass Media en
forced a law to regulate and control the advertising practices. Five
years on one can trace the repercussions of the new law on advertising
industry. In 1996 and 1997 the adspend as percentage of GDP falls to
1.43% and 1.00% respectively compared to 1.86% in 1995. Advertis
ing agencies see a 15% cut to their gross income.
• The fact that a mixture of English and Chinese is still the dominant
form of language used reflects Hang Kang consumers' language hab
its. Therefore, a mixture of languages is the unique character of Hong
Kong advertising and it enhances the association of the Hong Kong 10-
cal audiences with the content of the ads.
• Hungary has a quite weIl developed advertising industry with sophisti
cated media research information systems and expenditure monitoring
systems. But there is no official information for the total advertising
industry.
• The issue of 'overspiIl' media, principally from its nearest neighbor,
the Uni ted Kingdom has also had a profound effect on the Irish media
market. It is increasingly common for advertisers and agencies to plan
advertising campaigns on an All-Ireland basis which includes both the
Republic of Ireland and Northern Ireland.
• Almost a uniquely Karean characteristic is the presence of The Korean
Advertising Broadcasting Company (KOBACO) that was founded in
1981 by the Korean government. Its perhaps most controversial role is
that it acts as an exclusive agent for the sale and placement of broad
cast advertising space. For this role it receives a commission that var
ies depending on the type of agency (in-house versus independent
agency) that buys media placement from KOBACO.
• In the Republic of Latvia approximately 70% of the whole advertising
investments consist of resources of foreign companies for advertising
goods and services. It is very hard for the local producers to compete
with the foreign companies. The foreign companies are more techno
logically advanced and the prime cost of goods and services is lower
than for producers of goods and services in Latvia. Wherewith foreign
enterprises can afford to waste considerably more money for ad
vancement of their goods and services in the market, while the local
companies cannot.
• In Malaysia, scenes of an amorous, intimate or suggestive nature are
forbidden on television. Also not permitted are commercials for pork
and pork products, liquor and a1coholic beverages since they are for
bidden in Islam. In addition, provocative scenes that show naked or
scantily clad models are also not allowed to be shown. Recent changes
VIII Preface
in the code of advertising indude forbidding certain advertisements
such as those that highlight western values and project and promote in
spirationallifestyles as weIl as advertisements on feminine napkins.
• One of the particularities of advertising in Spain is the fact that non
dassical media is as important as dassical media.
• The existence of three main races in Singapore, Chinese, Malay and
Indian makes it achallenge for advertising to have national appeal.
• A major consideration for everyone who is going to advertise in Swit
zerland is that there are not only four written languages (German,
French, Italian and Rhaeto-Romanic), but in addition many dialects of
the Swiss German, wh ich may be considered a fifth language. This
means that although the other elements of the marketing mix may re
main the same, at least the advertising mix has to be changed if a large
share of people in Switzerland is not to be ignored.
• In the UK the amount of advertising air time permitted on the Inde
pendent Television Authority ITV, Channel 4, and Channel 5 is strictly
regulated at seven minutes per dock hour during the day and seven
point five minutes per hour peak time. Air time is sold in a pre
emptive auction system which tends to maximize the yield for the sta
tion. The permissible EU average of nine minutes is allowed to satel
lite and cable services and th'ere is an active debate as to whether ter
rest rial stations should be allowed this level of advertising. It might in
fact lead to a weakening of price achieved and an increase in dutter.
Again my thanks to the authors for their cooperation.
Ingomar Kloss
Contents
v
Preface ............................................................................................
Multicultural Management Insights ............................................ 1
Jürgen Rothlauf
Advertising in Bulgaria ............................................................... 19
Brad Thompson
Advertising in China .................................................................... 32
Stella Lai Man So
Advertising in Greece .................................................................. 64
Betty Tsakarestou
Internet Advertising in Greece ............................................... 80
George Frigkas
Advertising in Hong Kong ........................................................... 85
Stella Lai Man So
Advertising in Hungary ............................................................. 102
Tamas D. Szab6
Advertising in Ireland ................................................................ 116
Tony Meenaghan
Advertising in Latvia ................................................................. 135
Anda Batraga
Advertising in Malaysia ............................................................. 159
Iskandar Abdullah
x
Contents
Advertising in Singapore ........................................................... 182
May O. Lwin, Martin Lee
Advertising in South Korea ....................................................... 216
Dae Ryun Chang
Advertising in Spain .................................................................. 238
Cristina Etayo
Advertising in Switzerland ........................................................ 270
Maurizio Vanetti, Ulrich Dimigen, Carlo Mondada
Advertising in the United Kingdom ......................................... 299
Paul 0' Sullivan
Case Study: Barclaycard International ................................... 326
RonBoddy
The Authors ................................................................................ 339
Multicultural Management Insights
Prof Dr. Jürgen Rothlauf
University of Applied Sciences, Stralsund
Success and survival are the key goals in the fierce competition of today's
global marketplace. Companies are in constant competition for customers,
who in turn are increasingly demanding and discriminating. Losing cus
tomers means more than simply losing revenues; it means losing market
share to competitors in a global fight to be a major player. The toughest
quest ion a manager in the complex global playing field is facing is how to
secure a competitive advantage.
First of aB, management today is increasingly multicultural. This has
come to pass in the last quarter to the 20lh century, as national populations
have become more informed, heterogeneous, and less isolated. With con
tinued movement toward aglobaI marketplace, growing transborder ex
changes are leading to trade agreements and economic unions. Thanks to
stunning technological advances in communications and transportations,
the world's cultures are increasingly starting to interact with one another.
Because of the significant social and political changes that are currently
under way, there is areal opportunity for world traders and entrepreneurs,
free of ideologies, to engage in peaceful commerce for the benefit of hu
mankind. The globalization of the mass media has shown many people the
possibilities available within modern society, and has made them desire
improvements in their quality of life. Such market needs can only be met
on aglobai scale when a new dass of managers and professionals come
prepared with multicultural skills. Such cultural competencies are critical
as we transition into 21 century.
sI
1 Diversity in the Multicultural Workforce
For business people the chaBenge remains one of simultaneously man ag
ing diversity and change. The wordwide competition will continue to fos-