Challenges Faced By International Advertising - September 14th, Challenges Faced By International Advertising The growing intensity of international competition, coupled with the complexity of multinational marketing, demands that the international advertisers function at the highest level. Legal Considerations Different countries have different advertising laws that need to be accepted and followed. Therefore while creating advertisements it is very important to know the laws that are imposed in that particular country. In Germany it is illegal to use any comparative terminology a competitor can sue you if you do so.
Especially in the past ten years, there have been substantial political changes around the world that have shaped business operations.
New markets have opened, old ones have closed, and the level of uncertainty that exists presents many marketing challenges. Below I will discuss some of most important political and legal issues that are faced when doing business across borders.
Stability of Government Policies: Although the preferred political climate for a global firm is stable and friendly, organizations may still profit and succeed in traditionally unfavorable conditions.
The most important idea is that the government is stable and the set of rules or codes of behavior that affect business are predictable and adaptable. If the potential for profit exists and is permitted by government policies, a global firm can still function.
There are 5 main political causes of instability that affect the international markets: Some forms of government seem to be inherently unstable Changes in ruling political parties Extreme nationalism Animosity targeted toward specific countries Trade disputes Political Risks: Below is a brief list of the kinds of political risks a company faces when doing business internationally.
Confiscation, Expropriation and Domestication Economic risks associated with the political environment exchange controls, local-content laws, import restrictions, tax controls, price controls, labor problems Political Sanctions boycotting trade altogether or on specific products by one country to another Political and Social Activist and Nongovenrmental Organizations Violence, Terrorism and War Cyberterrorism and Cybercrime In order to understand how the political environment impacts your business, you must analyze how politically vulnerable your company is.
Unfortunately, there are no universal guidelines to do so, but understanding how much your business is effected by the political environment can identify threats to your firm. It also important to note that high priority products and industries in a country may have more favorable government restrictions.
To decrease how vulnerable your business is to political conditions, it is especially important for the marketer to forecast risk and engage in business ventures that may benefit them.
There are four major bases for legal systems: Derived from the Koran and found in Islamic States Commercial legal system: For more information on how law systems can be classified, click here.
Juridsiction in International Legal Disputes: There are three different types of international legal disputes; those between governments, between a company and a government and between two companies.
There is no absolute international law system, so there are many ways to handle conflict. On the basis of jurisdictional clauses in contracts On the basis of where a contract was entered into On the basis of where the provisions of the contract were performed Some laws that are essential to focus on that are involved with global marketing are: Government policies and laws vary from country to country, and doing business abroad means that government may have a greater level of involvement than what you are used to in domestic business.
Overall, the primary marketing objective is to develop a plan that will be enhanced or at least not negatively affected by the political and legal environments. Gilly, and John L.New markets have opened, old ones have closed, and the level of uncertainty that exists presents many marketing challenges.
Below I will discuss some of most important political and legal issues that are faced when doing business across borders. Under its current marketing strategy, however, advertising is often modified for a specific country or region, particularly where local creativity can improve the advertising over the global standard.
CHALLENGES OF INTERNATIONAL ADVERTISING AYUSH AGARWAL AND MITALI SHAH THE PROBLEM Change in the marketing climate Intensified consumer movement Increasing government.
The Challenges of Global Advertising - Download as PDF File .pdf), Text File .txt) or read online. Challenges Faced By International Advertising The growing intensity of international competition, coupled with the complexity of multinational marketing, demands that the international advertisers function at the highest level.
Global Retail: Expanding overseas? Here are challenges that businesses should consider when selling internationally and tips to overcome these barriers. The marketing research firm also predicts a % increase in overall international retail sales to $ trillion by