The differences between PR and advertising

 

Practically every day we face to face with marketing and PR in our daily routine and just dont notice this.

We wake up when the alarm-clock on our «Iphone» goes off by the song of Robbie Williams. In our bathroom we clean our teeth with «Colgate», use different products of «Dove» and «Nivea» to make our skin look good and healthy, we use «Head and shoulders» to throw off a dandruff and enjoy many other personal care items, which have been produced in different parts of the world.

We put on the clothes by «Calvin Klein» and shoes by «Boss». In the kitchen we drink orange juice by «Rich», spoon some cocoa puffs by «Nestle» and add milk by «Valio». In a while we drink «Ahmad» tee.

We buy oranges from California, coffee from Brasil and even we can hear the news from Australia, for example. In our postboxes we find booklets with offers of services and some coupons, which allow us to save money with the purchase of our favourite branded products.

We leave the house and use «Opel» to get to the shopping centre, where we can find different supermarkets, which are chochablocked from floor to ceiling with a wide range of products. Then we go to the gym «Citrus», cut hair in «Tony and guy» and with the help of «TripTravel» plan a journey to Spain.

All this things are possible in consequence of the marketing and PR systems. They provided us such living standarts, which our descendants could only dream of.

 

1.1 Idea and essence.

International marketing is activities on makret development of foreign countries, which is ruled by economic agent under his international economic activity in order to expand and strengthen competitiveness on international markets. International marketing is a part of foreign trade and the reason for this is its special aspects, kind of activity and scale rate of specifications.

Marketing on international markets consists of several necessary steps: goal setting, program development, activity planning, market research, market segmentation, development of product stewardship and price determination, design and implementation of assembler program and demand promotion.[2]

The content of marketing components can vary with the specification of each market. It is referred to national legislation, environmental rights, quality standarts, regulatory methods of business activities, customs and exchange regulation, quota allocation, develompent level of each country and also the role and degree of integration of national economy in world economy. The efficiency of international marketing on foreign markets can be reduced by the scanty store of foreign languages and culture, incomprehension of social and religious taboos and restrictions, core values and views of different social groups, limited access to mass media and strategic communications. All this can cause the increase of risks by decision making.

Global segmentation goes to the pride of place in the mordern marketing system, because it means gradual parcelling of word market by countries out national markets in order to estimate and select such markets, where the company has the best opportunities of implementation its international economic activity. At the origin it is necessary to draw sample of potentional markets, the terms of which satisfy the main axes of the company’s activities.

The globalisation of marketing require understanding of prome factors, which characterize modern markets, have an impact on globalisation and international competition. We can differentiate several of them:

- The blurring of the social and economic divisions between the countries, first of all in trade, production and marketing infrastructure.

- Reducing the differences between national cultures

- Development of the global financial market in consequence of a large flow of capital between the countries.

- Technologic reengineering and the new forms of global competition on a world-wide basis.

 

The foudation of multinational corporations, successfully working in many countries was possible due to the ability of their managers to think globally. Such companies as «Coca-Cola», «IBM», «Gillette», «Nestle», «Sony» и «Unilever» and many others effects more than 50% of their sales over their national territory.

International marketing is an integral part of company’s foreign economic activity and crucially determine the success.

 

The companies, which work on the international markets and dont use marketing methods discriminate themselves in comparison with other competitors. But on the other hand there is no universal formula of effective international economic activity, which is based on principles and methods of international marketing. Its separate forms can be varied in timing and in countries. The main thing in marketing approach is focused orientation, creative synthesis of all components of activities into a single process, in order to succeed.

 

In terms of globalisation international marketing is based on the thesis: think globally, act local. Firstly, this means, that international market shouldn’t be described as an organic whole, it is a conglomerate of 200 national markets and each of them has it’s own specification. Secondly, to achieve success on the national market it is neseccary to know world-wide, global development trends and of course particular qualities of local market in country, which is developed, it’s place and connection with world market. For example, in order to estimate possible demand in some of international markets, it is essential to have available calculations of production volume, export and import, global manufacturing and to have possibilities to expand import. Thirdly, the adoptation of products to several foreign markets, where it is possible, is also necessary. Fourthly, the adaptation of new marketing methods is required. And finally, the main complicacy in market development is to find customers, just because when you have no customers, the existence of company is impossible.

 

Adaptation means using methods of standardization of marketing strategy and exporting products to foreign markets, and this allows to reduce costs and to raise income. Such standardization is possible as the result of marketing researches of foreign markets, on the basis of which several markets can be developed in massive segments. The standardization of marketing methods is a response to internationalization and globalization of foreign markets, which have similar high living standards, similar social-economic growth want formation. For example, all customers apart of their countries take an interest in audio- and video technology, household appliances, washing agents and so on; children in all countries take interest in toys and cartoons.

 

Sometimes it is very profitable to use the same marketing strategy to different foreign markets with discrepant cultures, because it gives economy, but sometimes it can cause serious problems, because the differences are too generous, while program modification requires significant means, which are always, of course, in scarce supply.

 

Using similar marketing programs is possible, but they should be oriented towards global segment of world-market, which encloses the groups of customers with analogous characteristics for several countries. An additional point is that applicability of such programs is conditioned upon technologic, organizational and economic production’s specifications, which have no national restrictions. The example is European Economic Community[3], which is ruled as a single market. Companies, which operate in it delimit market segments so, that they consist of similar customers from the whole of Europe, and not of separate groups at the domestic level.

 

Marketing methods can vary in content. As a comparison, a cup of coffee always stays a cup of coffee, but coffee in the cup can be different: freeze dried coffee, whole bean coffee, strong, middle or weak, with sugar or without, with milk and so on.. In a similar way to marketing methods. So advertising is used in all foreign markets as the most effective information media, but in several countries cigarette and alcohol advertising is forbidden, in some countries advertising time is limited by 10-15%, in others – 23-35%.

 

There are no particular differences between internal and international marketing. Both they focus on the same principles of marketing activity. But moreover special specificity, caused by performance features of foreign markets, adds extra features to international marketing, which should be known.

 

While working on overseas market, second-language skills are required, deal with unknown, unstable local currency, run foul of political uncertainty and adapt the products to unknown need satisfaction and requirements on account of national peculiarities, language, cultural and religious differences. By contrast with internal marketing, international marketing is based on globalization and internationalization of cross-national market relations and on performance features of domestic markets. All these things make the studies of foreign markets and their possibilities more difficult and time consuming in comparison with domestic markets.

 

Goals of international marketing can be short-term, medium-term and long-term. They determine possibilities to achieve such company’s indexes as profit margin, volume of sales, market share, in the other words, appraisal of achievements in certain areas of marketing activity. Goals of international marketing are usually more dynamic as in internal marketing and this is caused by uncertain international environment.

 

Development of external markets allows to solve problems at the micro- ad macro-levels. At the micro-level solves the problems such company, which sees an opportunity to strengthen it’s positions, expand marketing shares, extend product’s life-cycle and to fatten the profits by the entry into a new market. In equal measure at macro-level can be solved country’s problems and the problems of national economics, among which are: 1)internal and external socio-economic and political problems 2) questions of homeland security 3) the problems of country’s prestige in the world area.