Effects of New Trends on Advertising - Coursework Example

Running head: Advertisements Advertisement procedure Effects of new trends on advertising New technology, audience fragmentation, business and media consolidation and easily obtainable consumer credits are some of the new trends which can affect the current advertising industry. Advertising was earlier concentrated mainly on print, radio and television like media ads. But currently the development of digital electronics has introduced a new concept of digital signage in to the advertising world. “In digital signing, the electronic data is handled and controlled from one administrative console running the digital signage software and is sent across to others terminals without having to change their physical location. In other words, the content and/or message that are going to be displayed on the sign are shown on every electronic screen” (Aranda, 2009) The popularity of digital signage like advertisements has raised stiff challenges to the television and newspaper ads. Division of audience into small groups because of the increasing number of media outlets is called audience fragmentation. The increasing number of television channels, internet related ad technologies, digital signage etc have opened new opportunities for the advertising people and it is difficult for them to attract a wide range of people towards their ads because of the audience fragmentation. Most of the television like medias depends on their ad revenues and in order to get a substantial revenue from ads they need to attract as much as audiences or viewers as possible. Audience fragmentation is a major threat for such television like medias. Business media consolidation is a term used to refer the phenomenon of majority of the media outlets being owned by a small number of corporations. For example, Keith Rupert Murdoch has almost monopolized world of entertainments by introducing variety of print and television medias like, New York Post, The Herald and Weekly Times Ltd, The Times, The Sunday Times, The Sun, American satellite TV systems, Star networks, Fox networks, etc. In order to conquer the internet, he started the social networking website like myspace.com. Such media consolidation is a big threat to the advertising world since, these corporate which controls majority of the media will try to execute their missions and visions through these media in order to safeguard their interests. The Consumer Credit (Advertisements) Regulations aim to ensure that credit advertisements give a clear and balanced view of the nature and costs of the credit on offer. The Regulations extend to all forms of advertising, including in print (for example, newspapers, circular letters, flyers, catalogues or billboards), on television or radio, on the internet, on teletext or by way of telephone canvassing (Credit advertising). Easily obtainable consumer credit has been restricted by law which adversely affects the advertising industry. It is difficult for the advertising people to obtain credits like other businesses. Severe penalties have been imposed on violators of the above Consumer Credit (Advertisements) Regulations act. Revolutionary communications technologies and current marketers The modern communication technologies have greatly influenced the marketers of the current century. For example, internet has provided great opportunities like online businesses to the business world. It is possible for a customer staying in India to order an American product like medicine online. One of my friends has said me few months before that he has purchased a Singapore based medicine online and used it successfully for a disease like keloid. This disease was very difficult to treat and my friend has told me that online business served as a blessing for him. Lot of books, apparels, medicines, like goods are crossing the boundaries of a country because of the online businesses and internet related communication techniques are playing a vital role in the success of online businesses. So I completely agree with the statement that “Revolutionary communications technology has brought nothing but blessings for marketers in the twenty-first century”. People - The concept of Fifth P Traditionally, marketing people concentrate on Four Ps: Product, Place, Promotion and Price in order to successfully execute a marketing campaign. But these four Ps alone may not yield the desired results which forced the marketing people to implement another P, the fifth P in the marketing campaigns. The fifth P, People is considered as the most valuable of the Ps mentioned above, as per the current trends. It is the people who decided the success and failures of a product and hence relationship building with the stakeholders is accepted as the core of every business activity at present. Recently, I purchased a new car after a long analysis of different brands available in the market. I have visited many dealers of different brands in order to collect the information about their vehicles. I have noticed that the marketing people available in the dealer shops have received me differently. Some of them have shown much enthusiasm in building a relationship with me and they engaged in active conversation with me. On the other hand some others have not shown much interest and they behaved in a passive manner considering me as a person trying to gather the data about their vehicles not for purchase; but for some research studies. Most of the sales people have contacted me many times later as part of their follow ups; some of them have not contacted me even at least once even though I have included some of their brands in my shortlists. From the shortlisted brands, I have selected a brand purely because of the relationship I build up with that brand dealer. Thus it is not necessary that a high quality product with a lower price can excel in a right place using right sales promotions alone. On the other hand, there every chance that even a cheap quality product of higher price without having the backup of any promotional activities may excel in a dull market because of the relationship that brand was able to build with the people. Different brands of vehicles and their target markets It is not necessary that all the brands of vehicles move equally well in all the markets. Marketing of a product depends on so many aspects. Same marketing strategies may not succeed in different markets even for the same products because of the difference in market structure. For example, Mercedes - Benz E class cars are comparatively one of the expensive cars in the car markets all over the world. In American and European continents, Benz E class may move well because of the economic growth in such countries whereas same thing cannot be said about the sales of Benz in countries like Pakistan, Sri Lanka or Bangladesh because of the economic differences between America and European countries have with the countries like Pakistan, Sri Lanka or Bangladesh Toyota -Corolla, on the other hand considered as a brand which can be affordable to the medium income people. India and China like heavily populated countries may offer great selling prospects for Toyota because of their rapidly growing economies. In fact Toyota has established many manufacturing plants in India and china in order to exploit the growing economy of Indian market. “A leaked copy of Toyota Motor Corp.s "global master plan" calls for grabbing 14 percent of the world car market by 2010 in the companys quest to unseat rival General Motors, a newspaper said Monday. Toyota declined to comment on the report in The Wall Street Journal Asia, but confirmed that the worlds No. 2 automaker is betting on surging demand in places such as China and India to fuel rapid expansion” (Toyota targeting China, India markets, 2006) Hyundai - Accent, is comparatively a cheaply priced car and hence they can concentrate on Thailand, Indonesia, and Malaysia like markets. The economies of these countries are almost similar and markets also have similar characteristics in these countries. Moreover these countries have some similarities in their cultures and purchasing behaviors and hence Hyundai-Accent can move well in these countries. Size of an Ad agency and the client behaviors It is a fact that business entrepreneur select an ad agency based on the nature of business he is engaged in and also the financial capabilities of his company. Big ad agencies always charge heavily for their services from the clients and hence in normal case, a medium sized business group will never select a big ad agency for their advertisement requirements. Big ad agencies in order to keep their reputation will organize expensive ad activities for their clients irrespective of their size or financial abilities. Thus size of the ad agency is definitely a determining factor for an entrepreneur. It should be remembered that big companies like Microsoft or Unilever will never appoint a medium sized ad agency for their ad purposes. Such big companies will definitely have a reputation which they need to preserve. Mega ad agencies always have a chief executive officer, accounts managers/accounts executives, client executives, production managers, financial managers, Visualizers, Graphic designers; Sales Executives etc are some of the major positions in an ad agency. The accounts managers or executives always have handling the accounts of a particular client whereas the production manager looks after the production execution. The financial controller or manager controls the financial transactions of the organization whereas the sales people look for bringing businesses to the ad agency. The graphic designers and visualizers control the graphic department and the creation of new concepts in advertising. The main advantage of an ad agency is the well structured functioning. Each person has a definite role in the agency and he has to look into his matters alone. A reputed agency always functions in a highly professional manner. The major drawback of an ad agency is that most of them have theoretical knowledge while they lack the practical knowledge. For example, the graphic designers and visualizers develop innovative advertising ideas, but they need the help of the manufacturing people in order to identify the practicability of the ideas they generated. Consider I am running a hospital outside my home in the suburbs of a major city in your state. I would search for an ad agency that has prior experience in developing ads for health care industry. Moreover I will look for the closest ad agency in my premises in order to properly co-ordinate the advertising campaigns for my hospital business. I want my ad agency to prepare innovative and eye catching designs, captions and slogans for my hospital business. I would like to enquire about their charges for each ad campaigns, and also their experience in conducting ads in different medias like news papers, display ads, television ads, internet ads, digital signage ads, etc. An advertiser will always target the sick and needy people when preparing ads for my hospital business. The advertiser will utilize all the local media networks like the local television channels, display signs, news paper ads etc to develop their expectations about my hospital. Moreover the advertiser will try to show some specialties about my hospital compared to the competitors and moreover, the advertiser will do everything to convince the customers. The advertiser will focus on the quality and reliability which my hospital can offer to patients in our advertisements. Conclusions Advertising activities are undergoing drastic changes in the current world in order to accommodate the various possibilities, new technologies were able to provide to generate innovative ads. Digital signage is one such innovative advertising medium of the current century. Every product need advertisements to sell them properly in the market and these advertisements are generally formulated by the ad agencies. The selection of the ad agency should be done based on the financial capabilities of the entrepreneur and also the prior experience and reputation the selected agency have in the market. References 1. Aranda Natalie, 2009, New Advertising Technology - How Digital Signage Works, Retrieved 10 October 2009 from http://ezinearticles.com/?New-Advertising-Technology---How-Digital-Signage-Works&id=542465 2. Credit advertising, Retrieved 10 October 2009 from http://www.oft.gov.uk/advice_and_resources/resource_base/legal/cca/guidance 3. Toyota targeting China, India markets, (2006), Retrieved 10 October 2009 from http://www.chinadaily.com.cn/china/2006-11/13/content_731483.htm Read More