The Differences in the Advertising Practices in Europe and USA - Research Proposal Example

Introduction Background of the study: This report is a research proposal for detailed study of the differences in the advertising practices in Europe and USA. Advertising is one of the big industries in many countries. It is an industry where business, creativity, culture and many other human aspects meet together. This research work will focus entirely on the advertising industry in Europe and US. The main reason for the differences in advertising practices in US and Europe is the differences in the culture and government regulations of the two countries. The advertising practices in these countries follow a global pattern. “Advertisers of the leading brands of consumer goods were surveyed in Great Britain, Denmark, Finland, Sweden and West Germany. The study found that Northern European advertisers generally follow worldwide patterns in their practices of budgeting, timing, creative approaches and measures of effectiveness.” (Keown et al, 1989). Aims of the study: The aims or objectives of this study are classified as follows: To understand the difference between advertising practices in Europe and USA, To understand the factors that creates differences in the advertising practices of both countries, To suggest areas of improvement in the advertising practices of both countries. The first objective is aimed to find out the basic differences in the advertising practices of both the regions. The research will analyze in detail the rules and regulations governing the advertising industries of both the regions. Along with that the cultural aspects of both the region and its relationship with the advertising industry will be studied in detail. The second objective is to analyze the elements that are different in the advertising practice of Europe and USA. For example, the rules imposed on the advertising industry of Europe may not be imposed on the advertising industry in UK. The third objective is to provide a recommendation or suggestion. It aims to understand the area to be improved and to suggest the aspects that should be altered inorder to achieve the best results. Structure of the proposal: This research proposal is structured as follows: Executive summary. Introduction. Literature review. Research methodology. Analysis. Findings. Suggestions. Conclusion. The research proposal is structured in the above format. This is the structure that should also be followed for the actual research paper. The chapters in this research proposal give a detailed plan of what the actual research should do. The actual research should be guided by this research proposal. In fact this research proposal is the outline of actual research. The literature review in the proposal gives detailed information about the topic under study. It will also cite necessary sources for carrying out the research. Literature review: The given topic is differences in the advertising practices of Europe and USA. Inorder to carry out a study on this the researcher should first acquaint with the advertising practices of both the regions. Only then a comparative study can be made to find out the differences. Advertising in Europe: Ethical factor is to be considered the most when it comes to advertising in any countries. The advertising campaigns of Europe is not only limited to the nation but it extends even after the national limits. This freedom of vast advertising is beneficial to both the producers and consumers. But even though this is beneficial to the consumers at large, they need to be confidents about the advertisements and the product they purchase. It is to protect this interest of consumers’ that the government has imposed certain regulations on the advertisements. There is an independent body called Advertising Standards Authority being constituted by the advertising industry inorder to safeguard the interests of both the consumers and advertisers without suppressing the interests of either party. “The ASAs mission is to apply the advertising codes and uphold standards in all media by being a customer focussed, best practice regulator, where expertise is valued and shared. This section outlines our mission, vision and values in full.” (About the advertising standards authority, 2008). The content of every advertisement and other marketing methods is regulated by this body. It ensures that the advertisements satisfy the advertising standard codes of the country. It is very much important to gather literature on advertising standard codes for this research work. The advertising standard codes of Europe differ among countries in Europe. Most of the countries have their own advertising standards while others follow a general code. There are separate codes listed for TV, Radio, Print media, Internet and other sources. “The main principles of the advertising standards codes are that ads should not mislead, cause harm, or offend.” (About ASA, 2008). The advertisers will be subjected to withdraw their advertisements when the ASA finds that it does not adhere to the advertising standard codes. Advertising in USA: Advertising industry in USA is also well flourished and it also exceeds the national boundaries. Advertising began in USA from the year 1850. “The materials, drawn from the Rare Book, Manuscript, and Special Collections Library at Duke University, provide a significant and informative perspective on the early evolution of this most ubiquitous feature of modern American business and culture.” (Emergence of advertising in America: 1850-1920, 2008). In USA a body called Federal Trade Commission is in charge of monitoring the advertising and other marketing activities. “The FTC Act gives the Commission the power to bring law enforcement actions against false or misleading claims that a product is of U.S. origin.” (Facts for business, 2007). Only those products of which the entire production process is carried on in USA can only use the ‘made in USA’ tag. Similarly this body also requires the products that are imported to US to be tagged the country name with it. If the companies wish to publicize the US content that is used in the product should adhere to the policies of FTC. It is a very notable feature that the companies need not take prior permission from FTC before they claim made in USA tag in their advertisements. If it is true that the product is made in USA, the companies can definitely use a ‘made in USA’ tag. It is relevant to look at the sector wise regulations on advertising in USA. Alcohol advertisements have the most regulation in USA like any other countries. The regulation on alcohol advertisements is to protect the interest of the youth by reducing their interest towards alcoholic beverages. The drinking habit of a youth is influenced by the drinking habits of their parents and peer groups. But alcohol advertisements too have a major impact on the drinking decision of youth. The advertisements that propagate new age lifestyles through drinking will influence the youth to a great extend. The advertisements will lead to promotion of underage drinking. “A national study published in January 2006 concluded that greater exposure to alcohol advertising contributes to an increase in drinking among underage youth.” (Alcohol advertising and youth: Evidence from long –term studies, 2008). The study has shown that watching an alcoholic advertisement has lead to 1% increase in the alcoholic consumption of the youth. The study has shown that the increased usage of alcohol is among those youth who are more exposed to alcohol advertisements in TV channel. As per this, the students begin their drinking habit when they are in their eighth grade itself. Students are also influenced by beer displays in the store and the advertisements of different alcohol companies at sports and other big events. Movies are also a major influential factor in the drinking decision of youth. The study clearly estimates the reductions that can be made in the rate of youth drinking by way of controlling the advertisements. “An econometric analysis using data from the National Longitudinal Survey of Youth 1997 estimated that a 28% reduction in alcohol advertising would reduce adolescent monthly alcohol participation from 25% to between 24% and 21%, and would reduce adolescent participation in binge drinking from 12% to between 11% and 8%.” (Alcohol advertising and youth: Evidence from studies of the effects of reductions in alcohol advertising, 2008). Another controversial element is tobacco advertisement in the country. It is found that tobacco companies are spending several million dollars for advertisements every year. “Cigarette manufacturers were one of the first industries to advertise widely on television.” (Ingram). Tobacco advertisements too had their extreme focus on the youth. It is the fact that tobacco causes more death due to its excessive usage than alcohol. “Despite the estimated 438,000 premature deaths caused by tobacco use each year, the tobacco products continue to be one of the most heavily marketed and least regulated consumer products in the United States.” (Quit smoking, 2007). The total advertisement expenses spent by major tobacco companies in US amounts to $13.11 billion in the year 2005. All the marketing campaigns of tobacco companies are focused on youth and their aspirations. Companies took great effort to supply product at lower cost so that more people can afford tobacco products. Tobacco companies are also more into promoting their products among women. What the tobacco companies argue is that the excessive advertisements do not help the companies to improve its sales volume. Instead it helps the companies to enhance its product image among the public. “Achieving the restriction or banning of tobacco advertising is one of the fiercest battles to face.” (Willemsen & Blij, 2000). A well planned systematic approach should be used inorder to prove this. By comparing the advertising practices in Europe and USA it can be found that Europe has better control over alcohol and tobacco advertisements. Despite the clearly stated regulations American tobacco and alcohol companies are spending billions on advertising and other promotional campaigns. Europe has more number of controlling bodies for governing this. Self regulatory system is more effective in Europe than in US. Research methodology: This research proposal is the outline of actual research. The methods to be adopted for the actual research are outlined in this chapter clearly. Types of research: Qualitative research and quantitative research are the two main research methods. Both these research type differs on the type of analysis it makes and the type of data it uses. Qualitative research refers to the research that is intended to analyse any qualitative aspects of a given situation. It does not use any mathematical tools for that purpose. Instead the research is relied on the skill of the researcher. The researcher uses his creativity to analyse the given situation. Qualitative research should be used in this research work in order to analyse from the sources, the basic differences between the advertising practices in both countries. Quantitative research as the name signifies makes use of quantitative methods for the research. It gathers facts and figures from required sources and makes an analysis of that by using different mathematical and statistical tools. This research work will use quantitative research in order to analyse on facts and figures related to advertising expenses and others. Types of data used: The data used in a research can be classified into two. They are primary and secondary. Primary data are the data that are collected by the researcher for the first time to carry on his research. He develops the data for the first time by using methods such as questionnaires and interviews. The primary data to be used in this research work is the opinion of the public regarding advertisements and the influences it had on them. Secondary data are the data that already exist and the researcher uses it for carrying out his research. The major source of secondary data is websites and books. This research will largely rely on secondary data. Ontology: Ontology is the study of categorizing things according to the nature of being or existence i.e. it is the philosophical study of being and knowing. The definition of ontology varies in different fields. In information technology, ontology is the working model of entities and interactions in some particular domain of knowledge or practices, such as electronic commerce or "the activity of planning." In artificial intelligence (AI), ontology is, according to Tom Gruber, an AI specialist at Stanford University, "the specification of conceptualizations, used to help programs and humans share knowledge." In this usage, an ontology is a set of concepts - such as things, events, and relations - that are specified in some way (such as specific natural language) in order to create an agreed-upon vocabulary for exchanging information. (Ontology, 2008). Ontology is mainly used for distinguishing objects. The various types of objects are distinguished with the help of Ontology. Usually three types of classifications are made in ontology. They are, formal, descriptive and formalized. Epistemology: Epistemology deals with the nature and scope of knowledge. Epistemology answers questions like, how knowledge is acquired, what is knowledge, and what people know. Epistemology deals how we know that we know. There are two types of justifications for epistemology; rationalism and empiricism. Rationalism uses mathematics and logic to built up human knowledge with the help of reasoning. Empiricism takes sense data as a base for all knowledge. In geography, the term is used to indicate the examination of geographical knowledge—how it is gained, sent, changed, and absorbed, in other words, how do we know what we know about geography, what do we choose to call geography, and how have the ways people think about geography changed? (Result for Epistemology, 2008). Epistemology is aimed to analyze the factors such as origin, nature and scope. It examines the sources of a given topic of study. It also understands the limits to which the data or information is available. It is the branch of philosophy that deals with knowledge. The main objective of epistemology is to identify the truth of knowledge under examination. Since epistemology deals with knowledge it is relevant to know in detailed about knowledge. “People commonly emphasize the importance of having knowledge or at least the resulting power.” (Book Title: The Theory of Knowledge: A Thematic Introduction. Contributors: Paul K. Moser - author, Dwayne H. Mulder - author, J. D. Trout - author. Publisher: Oxford University Press. Place of Publication: New York. Publication Year: 1998. Page Number: 2.) There are two ways of attaining knowledge. They are the one by our own initiative and the other by external pressures. People acquire knowledge from various resources around them. It is not necessary that knowledge is imparted to a person only through class lecturing. Apart from that the every aspects of the environment he lives in educates him on various matters. Since a person gathers knowledge from a variety of sources he should approach it with a critical attitude inorder to ensure its authenticity. One has to analyze whether knowledge is true. Epistemology is used in this instance inorder to analyze the authenticity of the knowledge. Epistemology studies the source of knowledge, its nature and its limits. Positivism: Positivism deals with authentic knowledge. It states that only authentic knowledge is based on actual experience. As the name signifies it has a positive approach towards the gathered knowledge. Interpretivism: Interpretivism deals with mind and its ability to analyze things. Another term used for interpretivism is idealism. The theory suggests that a person’s behavior is depended on the way he interpret things. A person will show a better behavioral pattern if he interpret things better. Research plan: The actual research is a complex activity. Inorder to perform the research in an effective manner it is necessary to have a planned approach towards the research. The total research should be split on the basis of activities and proper time should be allotted for each activity. Following time table will be adopted for completing the research in the best possible way. Week 1: Gathering the literature Week 2: Collecting the sources Week 3: Analysis and interpretation Week 4: Preparing the report Given above is a brief outline of the time schedule of the research. All the major activities in the research work are classified and equal time schedule is allotted for each activity. Following the above schedule will help to finish the research work in proper time. Conclusion: This research work is aimed to find out the major differences between the advertisement practices in Europe and USA. The major objectives of the study is to understand the difference between advertisement practices in Europe and USA, to understand the factors that create the difference and to suggest some areas of improvement in the advertisement practices of both the countries. The study will use a large number of secondary sources. A situational analysis of both the countries will be conducted inorder to make out the major differences. The major issues focussed on in this research work are the regulation on advertisement practices of both the nations. The difference will be drawn on the basis of regulations on advertisement. Bibliography C.F, Keown., N.E, Synodinos., & L.W, Jacobs. (1989). Advertising practices in Northern Europe: Abstract, ingentaconnect. Vol.23. No.3. Retrieved April 23, 2008, from http://www.ingentaconnect.com/content/mcb/007/1989/00000023/00000003/art00002 About the advertising standards authority: Mission vision and values, (2008). ASA. Retrieved April 23, 2008, from http://www.asa.org.uk/asa/about/ About ASA: The advertising standards codes, (2008). ASA. Retrieved April 23, 2008, from http://www.asa.org.uk/asa/about/short_guide/ About ASAI, (2006). ASAI. Retrieved April 23, 2008, from http://www.asai.ie/about.asp About EASA, (2008). European Advertising Standards Alliance. Retrieved April 23, 2008, from http://www.easa-alliance.org/ Prance, Louise. (2007). News headlines: Finland updates cosmetic advertising regulations, cosmeticsdesign-europe.com. Retrieved April 23, 2008, from http://www.cosmeticsdesign-europe.com/news/ng.asp?id=76177-asa-avon-clinique Self – regulation of beverage alcohol advertising: International center for alcohol policies, (2001). ICAP Reports 9. P.6. 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Retrieved April 25, 2008, from http://camy.org/factsheets/index.php?FactsheetID=1 Alcohol advertising and youth: Evidence from studies of the effects of reductions in alcohol advertising. (2008). The center on alcohol marketing and youth. Retrieved April 25, 2008, from http://camy.org/factsheets/index.php?FactsheetID=1 Alcohol concern: Advertising alcohol: Fact Sheet: Summary, (2004). Alcohol concern. Retrieved April 23, 2008, from http://www.alcoholconcern.org.uk/files/20040506_085240_Advertising%20factsheet%20April%202004.pdf Ingram, Billy. Cigarette commercials: Lighten up or light up, tvparty. Retrieved April 23, 2008, from http://www.tvparty.com/vaultcomcig.html Quit smoking: Tobacco product advertising and promotion fact sheet, (2007). American lung association. Retrieved April 23, 2008, from http://www.lungusa.org/site/pp.asp?c=dvLUK9O0E&b=44462 Willemsen, Marc C., & Blij, Boudewijn de. (2000). Tobacco control fact sheets: Tobacco advertising: Introduction, UICC. Retrieved April 23, 2008, from http://www.globalink.org/en/advertising.shtml Ontology. (2008). Whatis.com. Retrieved April 23, 2008, from http://whatis.techtarget.com/definition/0,,sid9_gci212702,00.html Result for Epistemology, (2008). Answers.com. Retrieved April 23, 2008, from http://www.answers.com/topic/epistemology Read More