Describe the advantages of using a global advertising agency when ...

[kamilo84]

Describe the advantages of using a global advertising agency when you begin a global marketing effort. How is an international affiliate different from a global agency in structure? What is the disadvantage to an advertiser in using its agency's international affiliate to reach a market in a different country?

Question 2

Which of the following is NOT a budgeting method?
 a. top-down budgeting (TD)
  b. bottom-up budgeting (BU)
  c. top-down/bottom-up/top-down process (TDBUTD)
  d. bottom-up/top-down process (BUTD)
  e. top-down/bottom-up process (TDBU)

[fur]

Answer to Question 1

A global agency that also handles an advertiser's domestic account will know the advertiser's products and current advertising programs. With this knowledge, the agency can either adapt domestic campaigns for international markets or launch entirely new campaigns. Another advantage is the geographic proximity of the advertiser to the agency headquarters. This can often facilitate planning and the preparation of ads. The size of a global agency can be a benefit in terms of economies of scale and political leverage.

International affiliates are used by an agency that does not own and operate offices worldwide. The agency may join a network of foreign agencies or take minority ownership positions in several foreign agencies. The benefit of this arrangement is that the advertiser typically has access to a large number of international agencies that can provide local market expertise.

The risk of these arrangements is that while an international affiliate will know the local market, it may be less knowledgeable about the advertiser's brands and competitive strategy. The threat is that the real value and relevance of the brand will not be incorporated into the foreign campaign.

Answer to Question 2

C

[kamilo84]

Gracias!

[kishoreddi]

Excellent