Global advertising refers to the promotion of products and services in more than one country. The importance of global advertising cannot be overemphasized particularly with the recent expansion of the market economy. International business is becoming more complex and is, therefore, taking over the world making global advertising unavoidable.
It is a known fact that companies work under the principles of demand and supply hence international businesses are competing to increase their supplies akin to the quantity of demand in the market economy. As such, companies are in a constant competition for consumers by trying to improve their brand awareness, customer base, and business outlets at the global level (Kolmar, 2017). The world economy is fast changing to the point of being reduced to a global village in the sense that, business operations in a section of the world translates to a rippling effect in other parts of the world as well.
We can do it today.
For companies such as Multinational Companies (MNCs) to remain buoyant and competitive in the perfect market economy, they need to take into considerations key factors such as but not limited to brand promotion and product price. Today, companies have realized that international market is growing every other day owing to the persistent increase in globalization of trade and communication (Sinclair, 2017). As such, human resource managers in conjunction with advertising agencies have ventured into expanding business operations by thinking globally in the quest to achieve their overall goals and objectives.
There are various reasons why global advertising has become an essential aspect of international business in the present world economy. One of such reasons is the promotion of the sale of company products and services. Global advertising persuades customers at both national and international markets by building up a good reputation and image as well as helps in striking a responsive chord with the customers. Through advertisements, companies are in a position to attract attention from the consumers and after that generate more sales. Advertising ensures that products and services offered by a company reach out to the public thereby informing them of the prospects or benefits associated with using company’s goods and services (Aaker & Biel, 2013).
In addition, global advertising serves as an avenue where new products and services are initially introduced in the global market. It enables companies to introduce itself and its goods and services to the global market through advertising. Global advertising, therefore, acts as a tool for quick publicity in the international market (Pomering, 2017). Another importance of international advertising is to support press. This is in the sense that, it acts as a source of revenue to stakeholders in the institution of media such as publishers, content developers, and TV networks. Such revenue helps in increasing media operations and coverage in that media houses can achieve large-scale reporting and endorsement of products and services.
To terminate, in regard to my school of thought, I can affirm that global advertising has played an integral role in the promoting business operations and activities all over the world. Globalization in terms of trade and communication has increased over the past years which have given room for effective world-scale advertising. International businesses have embarked on using global advertising as a tool for introducing new products and services in the market, promoting sales, creating a public image, educating people, research, and development, mass production and support to the press.
- Aaker, D. A., & Biel, A. (2013). Brand equity & advertising: advertising’s role in building strong brands. Psychology Press.
- Kolmar, M. (2017). A Second Look at Firm Behavior Under Perfect Competition. In Principles of Microeconomics (pp. 201-220). Springer, Cham.
- Pomering, A. (2017). Communicating CSR Through Corporate Image Advertising. In Handbook of Integrated CSR Communication (pp. 171-190). Springer International Publishing.
- Sinclair, J. (2017). 1 Globalization of advertising. Global Advertising Practice in a Borderless World, 12.