Chapter 3.4.2, Arguments for Standardization:
The success of brands like Coca-Cola, Marlboro, and Nike has been greatly influenced by the standardized campaigns of these brands and are often demonstrated as an argument for standardization. Those global brands have been using advertising to create a culture around the brand.‘It is possible to give a brand a certain identity in several countries simultaneously’.
In addition to that, brands like‘Marlboro, Coca-Cola, Sony and Levi’s have become more than brands, they have become universal symbols of life-styles, images and satisfactions in which consumers all over the world want to share’. These entire worldwide advertising have set a standard for global advertising.
The cost savings and growing homogenization of needs across borders are additional arguments for standardization. Costs can be saved by authorizing just one single agency to develop one international advertising campaign instead of authorizing different agencies for each target market. Furthermore cost can be saved in using one good idea several times, as for instance one television advertisement in many European countries. Moreover the cost saving argument is substantiated by simplified coordination and control, and in the better use of management abilities and resources. Furthermore the stagnating and partially diminishing demand caused a globalization of competition in almost all consumer markets. This point of view is represented in 1983 by Theodore Levitt who wrote the book‘The Globalization of Markets’.
Global Advertising:
Levitt advocates in his book the convergence thesis and writes about the worldwide increasing convergence in needs. The increasing tourism is one reason for that. Whereas in the year 1987 367 millions of people left their home country for journeys abroad, it was twice as many in 1972. As several developing countries increasingly are perambulated, the tourists demonstrate the locals a life of luxury and, as a result become a peer group for them.
Furthermore the food section is supposed to cause a convergence in needs. In many countries products from foreign cultures are offered. Food like Wiener Schnitzel and Danish butter and beverages as Apollinaris and Schweppes can be consumed worldwide.
The increasing extension of international media leads to a raised market transparency and the so called media-overspill. That is a further argument for standardization. The communication technology supports the international use of national radio, TV and print media. It is argued that this development makes standardized advertising meaningful. A cross-cultural communication leads to a reduction of information deficits if the viewers get exactly the same information through standardized advertisements. Newspapers, for example, are supposed to be especially suitable. A number of both males and females magazines like Playboy, Penthouse and Cosmopolitan as well as special interest magazines are appropriate for international advertising.
‘These […] magazines share the same editorial formula and reach fairly homogeneous international target groups, (…)’. Additional impulses for a convergence between cultures rise from diverse movies and TV-series, which are broadcasted in many countries. Due to that, movies like James Bond or series such as Friends or Grey’s Anatomy and the involved products through product placement are popular in many countries and, thus in many cultures.
Convergent segments especially in the target group of teenagers regarding similar life-styles in music, leisure and further interests represent an additional argument for standardization. Further target groups, which are supposed to be proper for standardized advertising, are the social elite who buy products from brands as Cartier or Mercedes, frequent flyer, music lover and do-it-yourselfer (Went, 2000). Furthermore it is said that similarities exist as well in the business-to-business market, because products are bought for the same reasons over the world.
Global Advertising:
Levitt advises companyies standardization because‘companies (…) can, as a result, achieve economies of scale in procurement, logistics, production and marketing, and also in the transfer or manageme |