Challenges Faced by International Advertising

7/29/2019 Challenges Faced by International Advertising

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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 thehighest level.

A successful advertisement in one country cannot be simply transferred or translated

into another countrys market without understanding the peculiarities of that

country.

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. Belgium and France explicitly ban comparative advertising, where as it

is clearly authorized in the U.K, Ireland, Spain and Portugal. Banning explicit

comparisons will rule out an effective advertising approach heavily used by US

companies. Therefore it is very important for the advertiser to identify this and act

accordingly.

Language Limitations

Language is one of the major barriers to effective communication through

advertising. The problem involves different languages of different countries ordialects within one country. Everyday words have different meaning in different

cultures. Even pronunciations cause problems.

Cultural Diversity

The problem associated with communicating to people in diverse cultures presents

one of the greatest challenges in advertising. Communication is more difficult

because cultural factors largely determine the way various phenomena are

perceived.

If the perceptual framework is different, perception of the message it differs. Existingperceptions based on tradition and heritage is often hard to overcome.

Media Limitations

A marketers creativity is certainly challenged when a television commercial is limited

10 showings a year with no exposures closer than 10 days as is the case in Italy.

Creative advertisers in some countries have even developed their own media for


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overcoming media limitations. In some African countries, advertisers run boats up

and down rivers playing popular music and broadcasting commercial into the bush as

they travel.

International marketing is simply the application of marketing principles to more than one

country. However, there is a crossover between what is commonly expressed as international

marketing and global marketing, which is a similar term. For the purposes of this lesson on

international marketing and those that follow it, international marketing and global marketing are

interchangeable.

At its simplest level, international marketing involves the firm in making one or more marketing

mix decisions across national boundaries. At its most complex level, it involves the firm in

establishing manufacturing facilities overseas and coordinating marketing strategies across the

globe.

International advertising entails dissemination of a commercial message to target audiences inmore than one country. Target audiences differ from country to country in terms of how they

perceive or interpret symbols or stimuli, respond to humor or emotional appeals, as well as in

levels of literacy and languages spoken. How the advertising function is organized also varies. In

some cases, multinational firms centralize advertising decisions and budgets and use the same or

a limited number of agencies worldwide. In other cases, budgets are decentralized and placed in

the hands of local subsidiaries, resulting in greater use of local advertising agencies.

International advertising can, therefore, be viewed as a communication process that takes place

in multiple cultures that differ in terms of values, communication styles, and consumption

patterns. International advertising is also a business activity involving advertisers and the

advertising agencies that create ads and buy media in different countries. The sum total of these

activities constitutes a worldwide industry that is growing in importance. International

advertising is also a major force that both reflects social values, and propagates certain values

worldwide.

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In the international marketing literature the issue of advertising standardization has ignited a

lively and heated debate among academics and managers alike. However, the decision whether


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to standardize or not cannot be considered a dichotomous one. Develops a comprehensive

framework to capture the relevant factors that determine the selection of the

appropriate international advertising strategies and tactics. More specifically, first identifies three

broad sets of factors (local, firm and intrinsic) which influence international

advertising decisions. Then proposes that the standardization and adaptation of international

advertising strategies represent the polar ends of a continuum of transitional stages. Finally,discusses the ways and the degree to which international advertising strategies can be adapted

to different situations.

It's early days on the Internet, perhaps the most important communications conduit we've seen

so far. Yet even now, history is repeating itself. There are those who want to direct the traffic

and set up the roadblocks. We believe hyperspace is one more place where you should have the

freedom to know what's out there and the right to choose. Which is why advertising is dedicated

to help develop the tools and the technologies that will let you do just that?

While use of uniform advertising appeals offers a number of advantages, differences in customer

perceptions and response patterns across countries and cultures, as well as media availability and

government regulation are major barriers to use of a standardized campaign. Even though

technological developments allow adaptation of advertising appeals to different languages (for

example, TV can have audio channels in two languages, Internet messages can be automatically

translated), development of visual and verbal copy that works effectively in multiple countries

poses major creative challenges.

Faced with this dilemma, firms may use a global umbrella campaign combined with local country

or product-specific advertising. The global umbrella campaign develops a uniform image for thecompany or brand worldwide, often relying on consistent visual images and the corporate logo.

Product-specific or country advertising builds on this image, modifying the appeal and providing

information tailored to the local market. The objective of the umbrella campaign is to provide an

integrating force, while local campaigns provide greater relevance to specific local customers and

markets.

International advertising is also a major force that both reflects social values, and propagates

certain values worldwide.

Language is one of the major barriers to effective communication through advertising. The

problem involves different languages of different countries, different languages or dialects within

one country, and the subtler problems of linguistic nuance and vernacular.

The bicardi company wanted to sell the drink pavane in germany, but pavane is perilously

close to Pavian which means babbon. A company Marketing tomato paste in the middle east

found that in arabic the phrase tomato paste translates as tomato glue.


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Tropicana brand orange juice was advertised asjugo de china in Puerto Rico, but transported

to Miamis Cuban community, it failed.

Language translation encounters innumerable barriers that impede effective, idiomtic translation

and thereby hamper communication. This is especially apparent in advertising materials.

Abstraction, terse writing, and world economy, the most effective tool of the advertisers, pose

problem for the translators. Communication is impeded by the great diversity of cultural heritageand education which exists within countries and which causes varying interpretations of even

single sentences and simple concept. Some companies have tried to solve the translation

problem by hiring foreign translators. This often is not satisfactory because both the language

and the translator change. Everyday words have different meanings in different cultures.

Low literacy in many countries seriously impedes communications and calls for greater creativity

and use of verbal media. Multiple languages within a country or advertising area pose another

problem for the advertiser.

Communication is more difficult because cultural factors largely determine the way variousphenomena are perceived. If the perceptual framework is different, perception of the message

itself differs.

Knowledge of cultural diversity must encompass the total advertising project.

Media may diminish the role of advertising in the promotional program and may force the

marketers to emphasis the other elements of promotional mix.

A marketers creativity is certainly challenged when a television commercial is limited to to 10

showing a year with no two exposure closer than 10 days. In some African countries advertisersrun boats up and down the rivers playing popular music and broadcasting commercial into the

bush as they travel.

Remind customers and prospects about the benefits of your product or service

Establish and maintain your distinct identity

Enhance your reputation

Encourage existing customers to buy more of what you sell

Attract new customers and replace lost ones

Slowly build sales to boost your bottom line

Promote business to customers, investors


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It entails dissemination of a commercial message to target audiences in more than one country.

Target audiences differ from country to country in terms of how they perceive or interpret

symbols or stimuli, respond to humor or emotional appeals, as well as in levels of literacy and

languages spoken. How the advertising function is organized also varies.

International advertising can, therefore, be viewed as a communication process that takes place

in multiple cultures that differ in terms of values, communication styles, and consumption

patterns. International advertising is also a business activity involving advertisers and the

advertising agencies that create ads and buy media in different countries. The sum total of these

activities constitutes a worldwide industry that is growing in importance. International advertising

is also a major force that both reflects social values, and propagates certain values worldwide.

The Communication Process

The process of communication in international markets involves a number of steps. First, the

advertiser determines the appropriate message for the target audience. Next, the message isencoded so that it will be clearly understood in different cultural contexts. The message is then

sent through media channels to the audience who then decodes and reacts to the message. At

each stage in the process, cultural barriers may hamper effective transmission of the message

and result in miscommunication.

International Advertising as a Business Practice

International advertising can also be viewed as a business activity through which a firm attempts

to inform target audiences in multiple countries about itself and its product or service offerings.

In some cases the advertising message relates to the firm and its activities, i.e. its corporate

image. In other cases, the message relates to a specific product or service marketed by the firm.

In either case, the firm will use the services of an advertising agency to determine the

appropriate message, advertising copy and make the media placement.

Art direction is concerned with visual presentation- the body language of print and broadcast

advertising. Some forms of visual presentation are universally understood. Revlon, for example,

has used a French producer to develop television commercials, English and Spanish for use in the

international markets. These commercials, which are filmed in Parisian settings, communicate the

universal appeals and specific advantages of Revlon products. By producing its ads In France,

Revlon obtains effective television commercials at a much lower price than it would have to pay

for similar length commercials produced in US. Pepsi Co has used four basic commercials to

communicate its advertising themes. The basic setting of young people having fun at a party or

on a beach has been adapted to reflect the general physical environment and racial

characteristics of North America, South America, Europe, Africa, and Asia,. The music in these

commercials has also been adapted to suite regional tastes, ranging from rock and role in North

America to Bossa nova in Latin America to Africa.

The international advertiser must make sure that visual executions are not inappropriately

extended into markets. Benetton recently encountered a problem with its United Colors of

Benetton campaign. The campaign appeared in 77 countries, primarily in print and on billboards.


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The art direction focused on striking, provocative interracial juxtapositions- a white hand a black

hand handcuffed together, for example another version of campaign, depicting a black woman

nursing a white baby, won adverting awards in France and Italy. However, because the image

evoked the history of slavery in America, that particular creative execution was not in the U.S

market

Cultural Considerations

Knowledge of cultural diversity, especially the symbolism associated with cultural traits, is

essential when creating advertising. Local country managers will be able to share important

information, such as when to use cautions in advertising creativity. Use of colors and man-

women relationships can often be stumbling blocks. For example, white in Asia is associated with

death. In Japan, intimate scenes between men and women are considered to be in bad taste;

they are outlawed in Saudi Arabia.

Advertising Communication System

Advertising communication always involves a perception process and four of the elements shown

in the model: the source, a message, a communication channel, and a receiver. In addition, the

receiver will sometimes become a source of information by talking to friends or associates. Thistype of communication is termed word-of-mouth communication, and it involves social

interactions between two or more people and the important ideas of group influence and the

diffusion of information.

An advertising message can have a variety of effects upon the receiver. It can

Create awareness

Communicate information about attributes and benefits

Develop or change an image or personality

Associate a brand with feelings and emotions

Create group norms

Precipitate behavior

International Advertising as a Business Practice

International advertising can also be viewed as a business activity through which a firm attempts

to inform target audiences in multiple countries about itself and its product or service offerings.

In some cases the advertising message relates to the firm and its activities, i.e. its corporate

image. In other cases, the message relates to a specific product or service marketed by the firm.

In either case, the firm will use the services of an advertising agency to determine the

appropriate message, advertising copy and make the media placement.

Advertising has gone through five major stages of development: domestic, export, international,

multi-national, and global. For global advertisers, there are four, potentially competing, business


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objectives that must be balanced when developing worldwide advertising: building a brand while

speaking with one voice, developing economies of scale in the creative process, maximising local

effectiveness of ads, and increasing the companys speed of implementation. Born from the

evolutionary stages of global marketing are the three primary and fundamentally different

approaches to the development of global advertising executions: exporting executions, producing

local executions, and importing ideas that travel.

Advertising research is key to determining the success of an ad in any country or region. The

ability to identify which elements and/or moments of an ad that contributes to its success is how

economies of scale are maximised. Once one knows what works in an ad, that idea or ideas can

be imported by any other market. Market research measures, such as Flow of Attention, Flow of

Emotion and branding moments provide insight into what is working in an ad in any country or

region because the measures are based on the visual, not verbal, elements of the ad.

Just as important as creating a strong marketing plan is following through on the results. How

will you know which ads are working if you dont analyze the results? Check the effectiveness ofyour advertising programs regularly by using one or more of the following tests:

Run the same ad in two different publications with a different identifying mark on each.

Ask customers to clip the ad and bring it in for a discount or free sample. Or, if youre running an

ad that asks customers to order by mail, put a code in your company address such as Dept. SI.

By looking at the marks on the clipped ads or the addresses on the mail-in orders, youll be able

to tell which ad pulled better.

Offer a product at slightly different prices in different magazines. This has the added

benefit of showing whether consumers will buy your product at a higher price.

Advertise an item in one ad only. Dont have any signs or otherwise promote the item inyour store or business. Then count the calls, sales or special requests for that item. If you get

calls, youll know the ad is working.

Stop running an ad that you regularly run. See if dropping the ad affects sales.

Check sales results whenever you place an ad for the first time.

Checks like these will give you some idea how your advertising and marketing program is

working. Be aware, however, that you cant expect immediate results from an ad. Especially with

small adsthe type most entrepreneurs are likely to be runningyou need to give the reader a

getting to know you period during which he gets to feel comfortable with your business.

The manager needs to engage in situation analysis with respect to the market conditions that are

operating at the time and to assess the consumer/market, competitive, facilitating agency, and

social legal, and global factors that will affect decision making and the development of the plan.

It is vital that the advertising plan be developed so as to mesh with and support the various


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components of the marketing and communications mix such as personal selling, pricing, public

relation, and promotion. The advertising manager also needs to know the major areas of his or

her planning and decision-making responsibilities.

There are three areas of major importance:

Objective And Target Selection,

Message Strategy and Tactics,

Media Strategy and Tactics.

Consumer and Market Analysis A situation analysis often begins by looking at the aggregatemarket for the product, service, or cause being advertised: the size of the market, its growthrate, seasonality, geographical distribution; the possible existence of different segments; andtrends in all of these aggregate market characteristics. Competitive Analysis Advertising planningand decision-making are heavily affected by competition and the competitive situation theadvertiser faces. Competition is such a pervasive factor that it will occur as a consideration in all

phases of the advertising planning and decision-making process. A type of market structureanalysis that involves the development of perceptual maps of a market, for example, attempts tolocate the relative perceptual positions of competitive brands.

Situation analysis should usually include an analysis of what current share the brand now has,

what shares its competitors have, trends in these shares, reasons for these trends, what share of

a market is possible for the brand, and from which competitors an increase in share will come.

The planner also has to be aware of the relative strengths and weaknesses financial, production,

and marketing of the different competing companies, and the history of competitive moves and

objectives in the product category.

The Marketing Plan Advertising planning and decision making take place in the context of anoverall marketing plan. The marketing plan includes planning, implementation, and control

functions for the total corporation or a particular decision-making unit or product line. Themarketing plan will include a statement of marketing objectives and will spell out particularstrategies and tactics to reach those objectives. The marketing objectives should identify thesegments to be served by the organization and how it is going to serve them. The needs andwants of consumers on which the firm will concentrate, such as the needs of working men andwomen for easily prepared meals, are identified and analyzed in a marketing plan.

There are several marketing tools that can be used to help an organization achieve its marketing

objectives. Most people are familiar with the 4 Ps the marketing mix which includes product,

price, place, and promotion. A marketing plan formulates the strategy and tactics for each of

these.

Message Strategy and Tactics

The actual development of an advertising campaign involves several distinct steps. First, theadvertising manager must decide what the advertising is meant to communicate by way of

benefits, feeling, brand personality, or action content. Once the content of the campaign has

been decided, decisions must be made on the best and most effective ways to communicate that

content.

Media Strategy

Although there are many rules of thumb often used to decide how much money to spend on

advertising, the soundest rules involve beginning with a detailed specification of what a


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corporation is attempting to accomplish with advertising, and the resources necessary. It is only

when the job to be done is well specified that the amount and nature of the effort the amount of

money to be invested in advertising can be really determined.

Adaptation as a general tendency of the cross-national advertising

literature

The feasibility of ad standardization depends on variables related to the economic,

technological, legal, social, and cultural environment. Within a homogeneous environment

advertising standardization is recommendable. If, on the contrary, environmental variables across

markets are heterogeneous, customized advertising should be favored. Reviews of cross-national

advertising studies, either regional or global generally conclude in favour of adaptation.

Standardized advertising is hindered if the use of certain media or execution elements is

restricted, for instance in countries such as Malaysia which prohibits the use of foreign models inadvertising. In a similar way, a heterogeneous economic environment across countries makes

advertising standardization more difficult. Advertising execution has to take into account the

education, literacy, and income levels of target groups. The competitive environments as well as

the actual life cycle stage of a product are further factors in favor of adaptation. The cultural

environment is seen as the highest barrier against standardized advertising. Differing needs,

traditions, consumption habits, religion etc. make the use of an identical advertising approach

across markets difficult.

On average, the cross-national advertising literature leans towards adaptation rather

than standardization of advertising worldwide.

Many studies point to the persistent need of ad adaptation . For instance, an analysis of U.S.

companies operating in Europe showed that, between 1963 and 1983, advertising was more

resistant to standardization than product or brand policies . However, there are many arguments

in favour of a trend towards advertising standardization, especially due to strong globalization

over the last 20 years. A number of developing countries have been accessing the status of

advertising intensive countries. China and India are a case in point for a dramatic change in the

place of advertising in the overall business and consumer scene. Authors coming from the

corporate world, either advertisers or agencies, have consistently argued in favour of ad

standardization and the possibility of putting up a global message with localized communication .

Furthermore, rapidly changing communication technologies (Internet ads, satellite TV) influence

global advertising: media overlaps push companies to more standardized advertising approach.

Advertising standardization is increasing over time due the globalization trend.


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Religion act as filters of advertising messages, transforming factual information into culturally

interpreted meaning.

Culture and local customs are positively related to adaptation recommendation

strategy versus execution

Advertising content consists of two major elements: strategy and execution. Although there is

obviously some overlap between both categories, advertising strategy comprises 'what is said'

and execution concerns more 'how it is said'. Degree of adaptation should increase over a

continuum of four levels: mission (long term, identity and vision of the

communicator),proposition (campaign themes), creative concepts (how themes are translated

in the language and cultures of the target groups) and execution. While mission and proposition

can rather easily be globalized, execution will need much local tailoring.

Advertising strategy is more standardization prone than ad execution.

Product type may have an influence on advertising standardization. Products satisfying

fairly universal needs whose ad messages mostly carry rather context-free information cues are

easier to standardize. Ads for certain product categories may be easier to standardize because

they correspond to global (airlines, tobacco, banks,) rather than multidomestic industries (food,

motor insurance,).

The level of advertising standardization is contingent on product category

For example, McDonalds launched a new and for the first time, global marketing strategy inGermany at the beginning of September. The campaign focuses around the motto, im lovin it

and it is part of a new and broader marketing approach that McDonalds calls Rolling Energy. The

company says this approach will revitalize the brand in the entire world, unify its messages and

integrate all its marketing moves.

McDonalds realized that it can save money. To create a campaign of this sort, which is not

individualized for each country and each market and which is going to use the same slogan,

presumes a terrific cost savings that could have an impact on [McDonalds] accounting results.

Despite the benefits that this campaign offers, it contains the risk of not being able to adjust to

the peculiarities of each individual market . The value shared by the youths in different

countries makes it possible today more than ever to create global campaigns with a samemessage.

In fact, the strategy of unifying a campaign behind the same message for the brand is nothing

new. Nike, with its Just Do It slogan had already done that, and enjoyed very good results.

When Nike launched its campaign, in some countries they had to change the fundamental image

of the advertising because of cultural questions. Thats the most that can happen to McDonalds

in its global campaign.


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Axe Chocolate-man Ad Banned

Axe ad is a classic example of standardization vs localization debate. Keeping in line with its

crackdown on suggestive advertisements being televised.The Indian government has taken

strong objection to the AXE chocolate deodorant ad .Ministry of information and broadcasting has

regarded the ad as indecent ,vulgar and repulsive. It clearly reflects the importance of

understanding cultural sensitivity in advertising.

Facilitating Agencies

Another external factor involves the agencies that facilitate advertising and provide the means to

advertise. From a situation analysis viewpoint, the advertiser basically needs to know what kind

of facilitating agencies exist and the nature of the services they can provide. From a planning

viewpoint, much local advertising, for example, is done without the services of an advertising

agency or a research supplier. A national advertiser, on the other hand, may have under contract

many different agencies and research suppliers, each serving one or more brands in a product

line made up of several products.

Many advertising decisions involve choices among facilitating agency alternatives. Whatadvertising agency should be chosen? What media should be used? What copy-testing supplier

will be best for our particular situation? Concerning the question for agency selection, for

example, Cagley and Roberts found that the people factor tends to dominate in agency

selection. Characteristics such as the quality of personnel, reputation, integrity, mutual

understanding, interpersonal compatibility, and synergism were very important.

Fact file

The majority of large advertising agencies are headquartered in the US. Of the ten largest

advertising agency groups, seven are headquartered in the US, and one each in the UK, France

and Japan, although WPP, the British agency holding company, is made up of two large US-

based agencies.

With the exception of Dentsu, the Japanese agency, most other agency networks generate

the majority of their revenues outside their home country.

The largest agency group, Omnicom, places over $37 billion of advertising for its clients

around the world and derives half its revenue from outside the US.

US-based advertising agencies and their subsidiaries are responsible for most of the

advertising throughout the world.

China is the next largest advertising market and is also growing rapidly

In the view of the advertiser the primary objective of advertising is to sell products or services. In

achieving this primary goal, there are often profound secondary consequences. Advertising exerts

a formative influence whose character is both persuasive and pervasive. Through the selective

reinforcement of certain social roles, language and values, it acts as an important force

fashioning the cognitions and attitudes that underlie behavior not only in the market place, but

also in all aspects of life. In an international setting, advertising has an important social influence
http://rajeshaithal.blogspot.com/2008/08/axe-chocolate-man-ad-banned.htmlhttp://rajeshaithal.blogspot.com/2008/08/axe-chocolate-man-ad-banned.html


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in a number of ways. First, much international advertising is designed to promote and introduce

new products from one society into another. Often this results in radical change in life-styles,

behavior patterns of a society, stimulating for example the adoption of fast food, casual attire or

hygiene and beauty products. International advertising also encourages desire for products from

other countries, it creates expectations about "the good life", and establishes new models of

consumption. Advertising is thus a potent force for change, while selectively reinforcing certainvalues, life-styles and role models.

Often the symbols, ideals and mores that international advertising portrays and promotes are

those of Western society and culture. Through the reach of advertising, brands such as Levi's,

Nike, Marlboro and McDonalds are known by and have become objects of desire for teens and

young adults throughout the world. Similarly, images and scenes depicted in much international

advertising are either Western in origin or reflect Western consumption behavior and values.

Even where adapted to local scenarios and role models, those shown often come from sectors of

society, such as the upwardly mobile urban middle class, which embrace or are receptive to

Western values and mores.

Consequently, a criticism frequently leveled at international advertising is that it promulgatesWestern values and mores, notably from the US, in other countries. This is viewed particularly

negatively in societies with strong religious or moral values, which run counter to those of the

West as, for example, Islamic societies in the Middle East. When Western advertising depicts

sexually explicit situations or shows women in situations considered as inappropriate or immoral,

it is likely to be considered a subversive force undermining established cultural mores and values.

Equally, in some countries such as France, there is a strong negative reaction to the imposition of

US culture, values and use of English in advertising. Promotion of tobacco products by US and UK

companies in countries where there is no legislation regulating or banning cigarette advertising

has also been criticized.

At the same time, international advertising also acts as an integrating force across national

boundaries. It disseminates messages using universal symbols and slogans, and establishes a

common mode of communication among target audiences in different parts of the world. At the

same time, multicultural values are reinforced by advertisers, who adopt images incorporating

peoples of different nations and diverse cultural backgrounds, as, for example, the Colors of

Benneton campaign or the British Airways "Peoples of the World" campaign. The impact of such

campaigns is further reinforced by the growth of global media such as Star TV, CNN, MTV or

print media that target global audiences worldwide. Consequently, while, on the one hand,

international advertising can be viewed as a colonizing force propagating Western values and

mores throughout the world, it is also an important force integrating societies and establishing

common bonds, universal symbols and models of communication among peoples in different

parts of the globe.


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Global Strategic Media

Media as we know it is changing. Consolidation and newsroom cutbacks are bringing more titles

under fewer ownership umbrellas and putting the task of news delivery into the hands of even

fewer journalists. The increasing demand for customized and always-fresh online content is

placing added stress on news creators limited resources.

In this new age landscape, where media uber-brands reign, a handful of cult media personalities

are reporting across brands and bringing with them engaged and connected audiences. (Think of

Chris Anderson and her command at Wiredand MSNBC). These media uber-advocates can take

a single story and compound its impact by delivering it across multiple channels.

What this means for media playerscompanies and journalists alikeis a mounting standard for

quality content worthy of attention and a diminishing opportunity to be heard. As the media ranks

continue to shrink, fewer valued voices will remain, while the insatiable need for quality content

will become more palpable.

Today's increasingly complex and rapidly changing global news environment challenges every

company to convey its corporate identity and communicate its messages effectively. WeberShandwick's Global Strategic Media Group comprises corporate communication strategists and

best-in-class former journalists from Weber Shandwick hubs in North America, Europe and Asia.

Team members work directly with the corporate communications departments of organizations to

involve the C-suite in the development of thought leadership campaigns tied to emerging

business issues and trends. Most notably, they have been at the forefront of the rise of the

"Reinvention Economy," helping organizations to understand that they can no longer only

consider innovation as a strategic imperative. They must also actively seek new ways to embrace

it, get the consumer involved in it and make it an integral part of their corporate DNA. The team

actively works to help clients drive increased emphasis on the corporate brand and all that it

stands for by leveraging the financial media as a prism on a globalized basis.

Delivering ContentAs the media market changes, so too does the PR industry. In this new content-starved

environment, the line between journalist and PR professional is blurred and an opportunity

emerges where brands move from mere disseminators of information to purveyors of content. No

longer is corporate communications relegated to individual pitches or stories; rather, it is a reliable

and regarded source for cohesive and branded content.

In this evolving arena, the team has sharpened its approach to media relations, marrying

customized content with precise targets. The teams method is based on a quad of elements:

Trend-based insights fueled by a quarterly trend report. Compiled by the team, the

report considers consumer, corporate and media trends dictating attention and discusses

those likely to follow. Surgical media relations bolstered by intimate knowledge and relationships with global

media, particularly the band of Uber Advocates who cross multiple media platforms.

Pitches and discussions are custom-built, using trend report insights to draw out the

relevance of client news, and targeted with precision to receptive media.

Executive positioningat customized roundtable events and existing top-tier speaking

forums, via its proprietary VOICEBOXXtool. Company leaders become mouthpieces

for the corporate story, reaching key audiences directly. Click here for details about

VOICEBOXX.
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Digitization of corporate brands through the creation and dissemination of branded

multimedia content. Targeted at business-minded leaders and executives, who are

increasingly migrating online, the corporate brand, gone digital, strides beyond the usual

consumer online touch.

The commonality of the three prongs of GSMGs approach is superior content. Effective media

relations and storytelling is about the story itself told through multiple, impactful channels intarget markets, particularly as growth into emerging regions intensifies.

International Sales Management : Overview

Globalization has opened up markets and provided hitherto untapped opportunities to companies across theworld. With increasing competition, changing customer needs and stagnation of demand in domesticmarkets, many companies have started looking at international opportunities. International salesmanagement plays an important role in implementing the marketing policies and selling programs of thecompany in the foreign market at the ground level.

The international sales manager plays the crucial role of planning and organizing this effort and ensuringthat the desired results are obtained. A thorough understanding of the overall operations of the organization

in the global context, an open approach to multi-cultural differences and the ability to implement both thebasic and advanced levels of sales management functions is necessary for the sales manager to succeed.Companies enter foreign markets in search of opportunities.

The chances of diversifying the market base, attaining low costs of labor and manufacturing, economies ofscale, first-mover advantage and faster growth rate of the economy in comparison to the home market, aresome of attractions that woo companies to enter these markets. An awareness of the pitfalls that accompanyentry into foreign markets is also necessary to fully reap the benefits. These pitfalls may be in the form ofeconomic, socio-cultural and legal factors. The decision to enter and operate in international markets is astrategic one. An awareness of various strategic issues is necessary to ensure success in foreign markets.

The strategic issues to be considered pertain to the marketing mix, sources of information and mode of

entry into the foreign market. The timing, scale and mode of entry are also crucial to the success of acompany. The modes of entry include long-distance selling, direct or indirect exporting, franchising,licensing agreements, strategic alliances, turnkey contracts, greenfield investments, joint-ventures andwholly-owned subsidiaries. Variations in economic, socio-cultural and political conditions in differentcountries makes selling in international markets a challenging task. It requires a great deal of sensitivity tolocal customer needs, expectations, business approach and personal philosophy.

Companies can adopt different structures while operating in foreign markets. These include use of long-distance selling, piggybacking with local distributors, using intermediaries or operating independently byestablishing a direct sales force. Finally, due to differences in culture and traditions and associatedproblems, most organizations employ local people to sell their products. An awareness of the recruitment,selection, training and compensation procedures for the sales force appropriate for the host country isnecessary to successfully operate in different regions of the world.


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Role of the Sales Manager in the International MarketBasic-level functions

Advanced Level Functions

International Sales and Marketing Opportunities

Challenges in International Sales ManagementEconomic EnvironmentLegal Environment

Cultural Environment

Strategic Issues for International Sales and Marketing

Marketing mix-Adapt or Standardize ?Obtaining International Information

Entering Overseas MarketsInternational Sales Techniques

Preliminary SellingAdvanced Selling

Time and Territory Management

Structures for International Sales OrganizationsLong-Distance Selling

Manufacturer's RepresentativesPiggybacking

IntermediariesEstablishing Direct Sales Force Abroad

International Sales Management Practices

Recruitment of Sales PersonnelSelection of Sales Personnel

Training and Development of Sales Personnel

Sales Incentives and Compensation

It should be apparent by now that companies and organizations planning to compete effectively in world

markets need a clear and well-focused international marketing plan that is based on a thorough

understanding of the markets in which the company is introducing its products. The challenge, then, of

international marketing is to ensure that any international strategy has the discipline of thorough research,

and an understanding and accurate evaluation of what is required to achieve the competitive advantage. As

such, the decision sequence in international marketing (see ) is much larger than that of domestic

markets. As noted in the next Integrated Marketing box, it is also more complicated. See below.
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Exhibit 1: The decision sequence in international marketing

The corporate level

We begin at the corporate level, where firms decide whether to become involved in international markets

and determine the resources they are willing to commit. Thus, this stage is primarily concerned with the

analysis of international markets. Decisions here will be dependent on matching the results of that analysis

with the company's objectives. These objectives, in turn, will be determined by the many motivating factors

we have discussed in the earlier sections. The level of resources that the company is willing to commit

should be determined by the strategy that is needed to achieve the objectives that have been set.

The business level

Business-level considerations begin with the assessment of the stakeholders involved in the business. It is

important to clearly identify the different stakeholder groups, understand their expectations, and evaluate

their power, because the stakeholders provide the broad guidelines within which the firm operates. In the

case of international marketing, it is particularly important to address the concerns of the stakeholders in

the host company.


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The situation analysis concerns a thorough examination of the factors that influence the businesses' ability

to successfully market a product or service. The results lead to a realistic set of objectives. Conducting a

situation analysis in an international setting is a bit more extensive. It not only includes the normal

assessment ofexternal environmentalfactors and resources/capabilities, it also includes a determination of

the level of commitmentexhibited by the business, as well as possible methods of entry. These last two

factors are interrelated in that a company's level of commitment to international markets will directlyinfluence whether they employ exporting, a joint venture, or some other method of entry.

In turn, level of commitment and method of entry are influenced by the evaluation of environmental factors

as well as resources and capabilities. The latter audits not only the weaknesses of the company, but also

the strengths of the company, which are often taken for granted. This is particularly important in

international markets; for example, customer brand loyalty may be much stronger in certain markets than

others, and products may be at the end of their life in the domestic market but may be ideal for less

sophisticated markets.

It is important, too, to evaluate the capacity of the firm to be flexible, adaptable, and proactive, as these are

the attributes necessary, for success in a highly competitive and rapidly changing world.

Undoubtedly, environmental factors have received the most attention from marketers considering

international markets.

Marketing objectives

Having identified stakeholder expectations, carried out a detailed situation analysis, and made an evaluation

of the capabilities of the company, the overall marketing goals can be set. It is important to stress that

there is a need for realism in this, as only too frequently corporate plans are determined more by the desire

for short-term credibility with shareholders than with the likelihood that they will be achieved.

The process adopted for determining long-term and short-term objectives is important and variessignificantly, depending on the size of the business, the nature of the market and the abilities and

motivation of managers in different markets. At an operational level, the national managers need to have an

achievable and detailed plan for each country, which will take account of the local situation, explain what is

expected of them, and how their performance will be measured. Examples of objectives might be:

financial performance, including return on investment and profitability

market penetration, including sales (by volume and value), market share by product category

customer growth, by volume and profitability

distribution, including strength in supply chain, number of outlets

brand awareness and value

new product introductions and diffusion

company image, including quality and added value (or service)


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The functional level

Having set the objectives for the company, both at the corporate level and the business level, the company

can now develop a detailed program of functional activities to achieve the objectives. Following the

integrated approach employed throughout this text, each of the functional elements (e.g. finance, human

resources, research) must be considered jointly. The international marketing strategy is doomed to failure ifhuman resources can not find and train the appropriate employees, or research can not modify the product

so that it is acceptable to consumers in another country. Ultimately, this coordination between business

functions is contingent on the market entry strategy employed as well as the degree of standardization or

customization deemed.

Having integrated at the function level, we next consider integration of the marketing mix elements.

Product/promotion

Keegan has highlighted the key aspect of marketing strategy as a combination of

standardization or adaptation of product and promotion elements of the mix and offers five alternative andmore specific approaches to product policy:

1. One product, one message, worldwide: While a number of writers have argued that this will be the

strategy adopted for many products in the future, in practice only a handful of products might

claim to have achieved this already.

2. Product extension, promotion adaptation: While the product stays the same this strategy allows for

the adaptation of the promotional effort either to target new customer segments or to appeal to

the particular tastes of individual countries.

3. Product adaptation, promotion extension: This strategy is used if a promotional campaign has

achieved international appeal, but the product needs to be adapted because of local needs.

4. Dual adaptation: By adapting both products and promotion for each market, the firm is adopting a

totally differentiated approach.

5. Product invention: Firms, usually from advanced nations, that are supplying products to less well-

developed countries adopt product invention.

Another critical element that is closely aligned with the product and promotion is the brand. Anthony

O'Reilly, Chairman of H.J. Heinz, believes that the communications revolution and the convergence of

cultures have now set the stage for truly global marketing. The age of the global brand is at hand. For

example, Heinz was looking to expand its 9 Lives cat food brand and Morris the Cat logo into Moscow.

Although it is a stable and successful brand in the US, testing and research done by Dimitri Epimov, a local

marketing manager in Moscow, led Heinz executives to make a marketing change to ensure the product's

success in Russia. Namely, a fatter-looking Morris was created for packaging. Another discovery: While

Americans tend to treat their kitties with tuna, Russian cat-lovers prefer to serve beef-flavored food.
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As discussed earlier, product positioning is a key success factor and reflects the customer's perceptions of

the product or service. However, in countries at different stages of economic development, the customer

segments that are likely to be able to purchase the product and the occasions on which it is bought may be

significantly different. For example, while KFC and McDonald's restaurants aim at everyday eating for the

mass market in the developed countries, in less-developed countries they are perceived as places for

special-occasion eating, and are beyond the reach of the poorest segments of the population. The productpositioning, therefore, must vary in some dimensions. In confirming the positioning of a product or service

in a specific market or region, it is therefore necessary to establish in the consumer perception exactly what

the product stands for and how it differs from existing and potential competition by designing an identity

that confirms the value of the product.

Pricing

Pricing products in foreign nations is complicated by exchange rate fluctuations, tariffs, governmental

intervention, and shipping requirements. A common strategy involves a marketer setting a lower price for

their products in foreign markets. This strategy is consistent with the low income levels of many foreign

countries, and the lower price helps to build market share. Pricing strategies are also strongly influenced by

the nature and intensity of the competition in the various markets.

For these reasons, it is important to recognize at the outset that the development and implementation of

pricing strategies in international markets should follow the following stages:

1. analyzing the factors that influence international pricing, such as the cost structures, the value of

the product, the market structure, competitor pricing levels, and a variety of environmental

constraints

2. confirming the impact the corporate strategies should have on pricing policy

3. evaluating the various strategic pricing options and selecting the most appropriate approach

4. implementing the strategy through the use of a variety of tactics and procedures to set prices

5. managing prices and financing international transactions

Perhaps the most critical factor to be considered when developing a pricing strategy in international

markets, however, is how the customers and competitors will respond. Nagle has suggested

nine factors that influence the sensitivity of customers to prices, and all have implications for the

international marketer. Price sensitivity reduces:

The more distinctive the product is:

the greater the perceived quality

the less aware consumers are of substitutes in the market

if it is difficult to make comparisons
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if the price of a product represents a small proportion of total expenditure of the customer

as the perceived benefit increases

if the product is used in association with a product bought previously

if costs are shared with other parties

if the product cannot be stored

Finally, there are several inherent problems associated with pricing in international markets. Often

companies find it difficult to coordinate and control prices across their activities in order to enable them to

achieve effective financial performance and their desired price positioning. Simply, how can prices be

coordinated by the company across the various markets and still make the necessary profit? Difficulty

answering this question has led to two serious problems. Dumping(when a firm sells a product in a foreign

country below its domestic price or below its actual costs) is often done to build a company's share of the

market by pricing at a competitive level. Another reason is that the products being sold may be surplus or

cannot be sold domestically and are therefore already a burden to the company. When companies price

their products very high in some countries but competitively in others, they engage in a gray market

strategy. Agray market, also called parallel importing, is a situation where products are sold through

unauthorized channels of distribution. A gray market comes about when individuals buy products in a lower-

priced country from a manufacturer's authorized retailer, ship them to higher-priced countries, and then sell

them below the manufacturer's suggested price through unauthorized retailers.

Considerable problems arise in foreign transactions because of the need to buy and sell products in different

currencies. Questions to consider are: What currency should a company price its products? How should a

company deal with fluctuating exchange rates?

Finally, obtaining payment promptly and in a suitable currency from less developed countries can causeexpense and additional difficulties. How should a company deal with selling to countries where there is a

risk of nonpayment? How should a company approach selling to countries that have a shortage of hard

currency?

Distribution and logistics

Distribution channelsare the means by which goods are distributed from the manufacturer to the end

user. Logistics, or physical distribution management, is concerned with the planning, implementing, and

control of physical flows of materials and final goods from points of origin to points of use to meet customer

needs at a profit.

Essentially there are three channel links between the seller and buyer. The first link is the seller's

headquarters organization, which is responsible for supervising the channel, and acts as part of the channel

itself. Channels between countries represent the second link. They are responsible for getting products to

overseas markets and payment in return. Finally, the third link is the channel structure (logistics) within

countries, which distributes the products from their point of entry to the final consumer.

Distribution strategies within overseas markets are affected by various uncontrollable factors. First,

wholesaling and retailing structure differs widely from one nation to the next. So, too, does the quality of


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service provided. Differences in the size and nature of retailers are even more pronounced. Retailers more

closely reflect the economic conditions and culture of that country; many small retailers dominate most of

these countries.

Physical distribution to overseas markets often requires special marketing planning. Many countries have

inadequate docking facilities, limited highways, various railroad track gauges, too few vehicles, and too few

warehouses. Managing product inventories requires consideration of the availability of suitable warehousing,

as well as the costs of shipping in small quantities.

The budget

Marketing mix components must be evaluated as part of an overall marketing strategy. Therefore, the

organization must establish a marketing budget based on the required marketing effort to influence

consumers. The marketing budget represents a plan to allocate expenditures to each of the components of

the marketing mix. For example, the firm must establish an advertising budget as part of the marketing

budget and allocate expenditures to various types of advertising mediatelevision, newspapers, magazines.

A sales promotion budget should also be determined, allocating money for coupons, product samples, and

trade promotions. Similarly, budgets are required for personal selling, distribution, and product

development.

How much should be spent? Consider the following example. A common question that marketers frequently

ask is, "Are we spending enough (or too much) to promote the sale of our products?" A reasonable answer

would revolve around another consideration: "What do we want to accomplish? What are our goals?" The

discussion should next turn to the methods for achievement of goals and the removal of obstacles to these

goals. This step is often skipped or avoided.

Usually, when the question is asked, "Are we spending enough?" an automatic answer is given, in terms of

what others spend. Knowing what others in the same industry spend can be important to an organization

whose performance lags behind the competition or to an organization that suspects that its expenditures arehigher than they need to be. But generally, knowing what others spend leads to an unproductive "keeping-

up-with-the-Joneses" attitude. It also assumes that the others know what they are doing.

Evaluating results

No marketing program is planned and implemented perfectly. Marketing managers will tell you that they

experience many surprises during the course of their activities. In an effort to ensure that performance goes

according to plans, marketing managers establish controls that allow marketers to evaluate results and

identify needs for modifications in marketing strategies and programs. Surprises occur, but marketing

managers who have established sound control procedures can react to surprises quickly and effectively.

Marketing control involves a number of decisions. One decision is what function to monitor. Some

organizations monitor their entire marketing program, while others choose to monitor only a part of it, such

as their sales force or their advertising program. A second set of decisions concerns the establishment of

standards for performance; e.g. market share, profitability, or sales. A third set of decisions concerns how to

collect information for making comparisons between actual performance and standards. Finally, to the

extent that discrepancies exist between actual and planned performance, adjustments in the marketing

program or the strategic plan must be made.


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Once a plan is put into action, a marketing manager must still gather information related to the

effectiveness with which the plan was implemented. Information on sales, profits, reactions of consumers,

and reactions of competitors must be collected and analyzed so that a marketing manager can identify new

problems and opportunities.

Management of Risks in International markets

by

Risk is a fact of business life, more so of international business. What is more due to

increasing complexities of business, the number and variety of risks are increasing. What

is needed for the success of business, as also of international business is the ability to

evaluate carefully the risks involved and then try to cover them if possible.

Experienced businessmen are aware of the risks involved in business and, instinct, theytry to minimize their risks. For example, Indian exporters usually begin with exporting to

nearby countries or to countries having a substantial number of Indian settlers there. So

also they prefer to go to English-speaking countries. Every businessman prefers to export

to safer countries rather than to unsafe ones. In this respect developed countries are

considered to be less risky than the developing countries. Two points may be noted in this

connection: (1) Competition is the keenest in markets consider safe and is virtually non-

existent in so called unsafe markets, (2) Nobody can foresee which countries are to be

risky. Countries once considered safe may become absolutely unsafe.

In international marketing assumption of risks is often, though not always, voluntary. In

the initial stages a policy of risks avoidance is followed but it is not always possible to do

so and a firm must be prepared to accept progressively greater risks.

The various types of risks that an international marketer may face can be divided into the

following categories:

1. Commercial risks2. Political arising out of foreign laws

3. Cargo risk

4. Credit risk

5. Exchange fluctuations risk

We shall discuss each of these risks separately.


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Commercial Risks

Among commercial risks be included the risks arising from suitability of the product for

the market or otherwise, change general, it may be said that the export trade is more risky

than the domestic trade.

Commercial risks due to (1) lack of knowledge, (2) inability to adapt to the environment,

(3) different kinds off situations to be dealt with, and (4) greater transit time involved.

The exporter is unlikely to know as much about the foreign market as he does about his

own. He does not have adequate about the foreign market as he does about his own. He

does not have adequate information about the market or does he have the same feel about

the foreign market as the domestic market. Distances involved are usually greater and

hence the transit time is longer. In case goods are not sold, he might have to bring thegoods back (involving additional freight costs) or be prepared to sell them at lower

prices.

Changes in exchange rates, either of the countrys currency or for foreign currencies

might seriously affect the countrys competitive capacity.

For most of the commercial risks there is no possibility of shifting the risk to professional

risks bearers and the exporting firms would have to bear these risks themselves.

However, these risks can be reduced by the application of forecasting techniques as also

by keeping a watch on the changing business conditions in the countries concerned as

also of the international economy as a whole. What is needed is to be prepared for any

adverse changes and take corrective action as soon as possible when the situation so

warrants.

Political Risk:

Political risk may arise as a result of changes in party to power in the countries concernedcoups, civil wars, rebellions, wars between two countries or among many countries

capture of cargo by enemy etc. Political risks could be avoided /reduced to some extent

by judicious selection of countries. Insurance companies may agree to provide cover for

some of these risks on payment of additional premium. Some of the risks are also covered

by the Export Credit Guarantee Corporation.


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Legal Risks:

Commercial laws may be different in the two countries. Moreover, conducting legal

proceedings in a foreign country is complicated and expensive. The major risks can be

taken care of by stipulating in the contract itself which law will apply and who will be the

arbitrator in case of disputes. But even then the risks remain and have to be assessed as

part of the total risks situation.

Marketing Plan Outline

Current situation:

Ford Motor Companys headquarters is located in Detroit, Michigan, which has gainedmuch fame in recent years with the dire situation of the automobile industry. Fords

target market is broad, as it attempts to cater to a wide audience from Ford Flex drivingsoccer Moms to those looking to relive their youth with the Mustang. Ford faces manychallenges in todays market both with the downturn of the economy and competitivenessof its industry.

Competitor and issues analysis

Ford has numerous competitors that include domestic and international automakers.General Motors (GM) and Chrysler are two examples of direct competitors headquartered

in the same area. Ford was the only one of the big three that did accept the bailout moneyand this is one way that Ford has distinguished itself from the pack. Branding is key forFord as Chrysler chooses to push an imported from Detroit luxury vibe and GMexpands into multiple muscle car models, Ford has pressed the fuel economy of itsvehicles. The overarching issue that affects Ford is the state of the economy. Ford hasalready started to address this issue by focusing on fuel efficient cars that affect eachindividuals bottom line.

Marketing Objectives

The main portion of Fords overall business objective is to attract the most customers toits product line in order to make a substantial profit.

Marketing Strategy


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Price: Ford offers many different models of cars at many different price points. Thisvariety allows customers a wide selection when trying to find the perfect vehicle. Itsimportant that Ford does not price itself out of the market or go so low as to loss profits.

Product: Ford strives to make reliable, safe, practical and attractive vehicles for every

member of the family.

Place: Ford maintains a strong market share in the United States, but is also especiallystrong in Europe.

Promotion: Ford has multiple levels of promotion from magazine to the back of buses.Because Ford seeks to reach as many customers as possible, a wide promotional area isimportant.

Marketing Segmentation and Target

Ford has many different vehicle models and the company works hard to segment thesegroups particular ads and promotions. For example, the Ford Mustang is promoted insuch a way that represents power, influence and nostalgia, perfect for young peoplelooking to make a splash or baby boomers looking to relive the good old days.Segmenting the market is necessary otherwise all of Fords cars are considered the same.

Action Programs

Ford runs regular ads on television and in magazines. Ford is also involved in on profitorganizations, which demonstrates its belief in corporate responsibility while stilltargeting its market.

Budget

In 2010, Ford profited $6.6 billion dollars. Ford took on the task of lessening its debt byover $30 billion where its competitors asked for bailout money from the Government.

Due to Ford taking on the task of eliminating much of its debt, Fords financial future isbrighter than many of its competitors

Measurements


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With the state of the economy making lofty goals of increased sales and productivity arenot in the best interest of the company. Keeping the companys focus on improved saleswill maintain a positive outlook within the sales force. A reasonable goal may be to havean increase in overall profit by 5 percent.

Global Marketing Mix

Ford is highly successful in its global markets, especially in Europe. Many globalmarkets need compact type cars and this is an area in which Ford focuses. As a wellvaried and established global marketing mix has proved profitable and successful in thepast for Ford, there is no doubt this will continue as part of the marketing going forward.

Intellectual Property Rights

Defining the IssueThe age of digital media has dramatically changed intellectual property rights(IPR). The proliferation of technologies that enable mass-market digital copyingand analog/digital conversion, combined with file-sharing software and peer-to-peer networks that are easily accessible via high-speed Internet connections,have led to increased concerns about distribution of unauthorized copies ofcopyrighted media. In particular, the movie and music industries continue to

search for technical and regulatory solutions to combat digital piracy.

Intellectual property

Protection and enforcement of intellectual property are crucial for the EU's ability to

compete in the global economy.

Because European competitiveness builds on the innovation and value added to

products by high levels of creativity, the protection and enforcement of intellectual

property go to the heart of the EU's ability to compete in the global economy. EUgrowth and jobs are hampered when our ideas, brands and products are pirated and

counterfeited. Moreover, counterfeit products often place our citizens' safety or

health at risk.

So intellectual property rights ("IP rights" or "IPR") such as patents, trade marks,

designs, copyrights or geographical indications are becoming increasingly important

for European inventors, creators and businesses. These rights enable them to


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prevent unauthorised exploitation of their creations and distinctive signs, or to allow

such exploitation in return for compensation (other benefits ofIP rights ).

One of the EU's objectives is to see such standards respected by third countries.

This objective is being pursued in different ways:

The EU works in the WTO to improve the protection and enforcement

of IP rights and was a key supporter of the Agreement on Trade-Related

Aspects of Intellectual Property Rights (TRIPs).

The EU negotiates IPR provisions in its bilateral trade agreements and

works closely at a technical level with its trading partners

on IPR issues (protection of IPR in Free Trade Agreements ).

With the authorities of certain third countries, the EU conducts "political

dialogues" on IP issues (usually involving European industry), and/or

runs technical co-operation programmes intended to help

enhance IPR system.

The EU was also involved in the development of the Anti-CounterfeitingTrade Agreement (ACTA).

IPR policy can also be a tool to promote development, in particular when it

concernsbiodiversity, technology transfer or food security . Relationships

between IPR and development policies are currently being explored in the framework

of the "Policy Coherence for Development " initiative.

Access to medicines is an issue for which IPR aspects are particularly relevant. In

this context, the European Union is committed to the Doha Declaration on TRIPs and

Public Health and has consistently led efforts to facilitate access to medicines in

developing countries, and to strike the right balance between the IP rights ofpharmaceutical companies and the need to ensure that medicines are available for

populations in need in the developing world. With regard to the free trade agreement

(FTA) under negotiation with India, for instance, the EU fully acknowledges the right

and capacity of this country to manufacture and export medicines to other

developing countries facing public health problems, and does not

propose IPR provisions which would restrict this possibility.

Emerging Issues in Intellectual Property

Intellectual property plays an important role in an increasingly broad range of areas, ranging from the

Internet to health care to nearly all aspects of science and technology and literature and the arts.Understanding the role of intellectual property in these areas - many of them still emerging - often requiressignificant new research and study. In an effort to promote informed discussion of the intellectual propertyissues involved in these fields, WIPO regularly produces various explanatory publications on current issuesof interest. A selection of the texts of these publications is available below.

WIPO also occasionally commissions studies by various organizations or individuals on similar issuesrelating to intellectual property. The views expressed in these studies, also available below, are those of theauthors, and do not necessarily represent the views of WIPO.
http://trade.ec.europa.eu/doclib/html/142108.htmhttp://trade.ec.europa.eu/doclib/html/142108.htmhttp://ec.europa.eu/trade/creating-opportunities/eu-and-wto/http://www.wto.org/english/tratop_e/trips_e/trips_e.htmhttp://www.wto.org/english/tratop_e/trips_e/trips_e.htmhttp://ec.europa.eu/trade/creating-opportunities/bilateral-relations/http://trade.ec.europa.eu/doclib/html/150081.htmhttp://ec.europa.eu/trade/creating-opportunities/trade-topics/intellectual-property/#political_dialogueshttp://ec.europa.eu/trade/creating-opportunities/trade-topics/intellectual-property/#political_dialogueshttp://trade.ec.europa.eu/doclib/press/index.cfm?id=328http://ec.europa.eu/trade/tackling-unfair-trade/acta/http://ec.europa.eu/trade/tackling-unfair-trade/acta/http://ec.europa.eu/trade/creating-opportunities/trade-topics/intellectual-property/biodiversity/http://ec.europa.eu/trade/creating-opportunities/trade-topics/intellectual-property/technology-transfer/http://trade.ec.europa.eu/doclib/html/121618.htmhttp://ec.europa.eu/europeaid/what/development-policies/policy-coherence/index_en.htmhttp://ec.europa.eu/trade/wider-agenda/health/access-to-medicines/http://ec.europa.eu/europeaid/what/development-policies/policy-coherence/index_en.htmhttp://trade.ec.europa.eu/doclib/html/121618.htmhttp://trade.ec.europa.eu/doclib/html/150081.htmhttp://www.wto.org/english/tratop_e/trips_e/trips_e.htmhttp://trade.ec.europa.eu/doclib/html/142108.htmhttp://trade.ec.europa.eu/doclib/html/142108.htmhttp://ec.europa.eu/trade/creating-opportunities/eu-and-wto/http://www.wto.org/english/tratop_e/trips_e/trips_e.htmhttp://www.wto.org/english/tratop_e/trips_e/trips_e.htmhttp://ec.europa.eu/trade/creating-opportunities/bilateral-relations/http://trade.ec.europa.eu/doclib/html/150081.htmhttp://ec.europa.eu/trade/creating-opportunities/trade-topics/intellectual-property/#political_dialogueshttp://ec.europa.eu/trade/creating-opportunities/trade-topics/intellectual-property/#political_dialogueshttp://trade.ec.europa.eu/doclib/press/index.cfm?id=328http://ec.europa.eu/trade/tackling-unfair-trade/acta/http://ec.europa.eu/trade/tackling-unfair-trade/acta/http://ec.europa.eu/trade/creating-opportunities/trade-topics/intellectual-property/biodiversity/http://ec.europa.eu/trade/creating-opportunities/trade-topics/intellectual-property/technology-transfer/http://trade.ec.europa.eu/doclib/html/121618.htmhttp://ec.europa.eu/europeaid/what/development-policies/policy-coherence/index_en.htmhttp://ec.europa.eu/trade/wider-agenda/health/access-to-medicines/


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Challenges Faced by International Advertising

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