international mktg notes[ppt form]

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international mkting notes
mediumtomedium.Companiesaremovingfromthecommission systemtoa
rewardbyresultssystem,whichdetailsremunerationterm sattheoutset.If
salesrise,theagencyshouldberewardedaccordingly.Thi smethodofsharing
inthegainsorlossesofprofitsgeneratedbytheadvertisi ngisgainingin
popularityanditmaybecomethestandard.Servicesprovid edbyadvertising
agenciesalsovarygreatlybutfewforeignagenciesoffert hefullservicesfound
inU.S.agencies.
Evenasophisticatedbusinessfunctionsuchasadvertisin gmayfinditis
involvedinuniquepractices.Insomepartsoftheworld,ad vertisersoftenpay
forthepromotionwiththeproductadvertisedratherthanw ithcash.Kickbacks
onagencycommissionsareprevalentinsomepartsofthewor ldandaccountin
partforthelowprofitabilityofinternationaladvertisi ngagencies.InMexico,
India,andGreece,theadvertiserreturnshalfthemediaco mmissionstothe
agencies.Inmanyofthedevelopingcountries,long-termcreditisusedto
attractclients.
Theglobalfirmwithbranchesand/orjointventureswithlocalfirms
dominateadvertisingglobally.Overthelasttwodecadesm ostofthemajorad
agenciesintheUnitedStates,theU.K.,andJapanhaveexpa ndedgloballyand
caneasilyrepresentaglobalcompanyalmostanywhereinth eworld.Thetop
agencyintheworldin1995and1996wasaJapanesefirm,Dent su,Inc.,
followedbytheU.S.firmMcCann-EricksonWorldwide.IfyouvisittheWeb
siteofsomeoftheseagenciesyouwillseehowextensivethe irrangeis.These
companiesrepresenttheconsolidationofadvertisingage nciesthathasbeen

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