1. The fact that the European Commission proposed a series of action in the presentation of advertising in the country. It is necessary to point some of the macro environmental issues that have an impact to the European advertising industry.


According to Samiee and Ryans Jr. (1982), consumerism is one of the factors that have lead to the advertising of some of the consumers in the industry. Consumerism is characterized as the will and way of the people in the acceptance and recognizing products in the society. The need for companies to set their parameters throughout the whole perception of a person’s senses is necessary in order to enable and grasp the essence of one’s necessity. Hence, although some authorities would consider consumerism as a negative side of the marketing industry, the consumers dictate the way businesses run.


Another reason is what is provided in the paper. “The growth of digital channels, web-based TV, and viewers’ commercial skipping devices has fragmented audiences and challenged the core advertising-driven business of traditional free-to-air broadcasters.” This fact alone has been the reason to prompt the European Commission to set out the necessity to scrap some advertising restrictions. As the web-based commercials have been one of the factors why the television industry has been subjected to the necessity to promote their products within the scope of television viewers. In order to provide a concrete information McDaily (2008) stated that the online advertising underwent an average growth rate of forty percent (40%) year-on-year across the 16 countries covered in the IAB Europe report.


According to Rotko, “All advertising stakeholders must be irreproachable and behave with the utmost responsibility. Advertising self-regulation offers the necessary framework for industry players including television and radio sales houses to bring about positive changes.” Hence, another reason that must taken into consideration is the fact that there is need to intensify media ethics. The preservation of media ethics is necessary in order to make the television industry more apparently setting a good example to the viewers. Prompting to have a longer advert-free periods during children’s and news shows than under the 1989 rules will obliged the advertisers to come up of free-advert that is necessary to uplift the interest of the consumers which will in turn will not cost them much but will nonetheless give the companies the benefit of the interest of the consumers.


Another factor that is necessary to point out is that advertisements are considered by the consumers as something that is unnecessary and caused the delay of their viewing time. From this point, it is necessary to say that because advertisement cause delay to what may have the leisure time of the viewers, the need to intensify the advertisement is necessary in order to make the said field be of help to the progress of Europe. The consumers must have an appreciation to the advertisements. Information coming from the television commercials must not be taken for granted by the consumers. The deviation of the interest of the consumers must be put to an end in order for the advertising industry makes its presence felt not only thru their products but because of the image they want the public to perceived them.


To conclude, the European Commission has to propose such action in order to preserve the integrity of the advertising industry. As technology progress the need of the consumers also develop. It has been an established fact that consumers dictate the world of the marketing industry, hence in order to be conniving to the need of the consumers, business organizations must create some effective step in order to give the consumers a greater concept of what the company offers to the public.


It is perceived that the European Commission gave more consideration to the sudden decline of the importance of television commercials. The viewers as consumers would like to try and to evaluate the products in accordance to what they perceived on the television. If consumers will try such products, the business of one’s company will reap profits. The profits in turn will likewise be credited as the source of the security of one’s economy.


The fact that the economy will soar high means that the consumers or the citizenry has still the capacity to make their living better than the usual. Hence, the general reason that made the European Commission to make such act is the fact that the advertising companies are effective means to make the economy continuously prosper.


Another reason in to conclude is the fact that the on-line advertising industry has been rampant. The utilization of the internet by the companies will not cost them more as compared to creating a television commercial. A majority of the businesses in Europe has set up their own website. The maintenance of their website may cause them some expenses however; the term of such websites is far longer as compared to the life of the commercials in television. The website comprises the whole of the company. Consumers will be able to view the whole of the business of the company. The consumers will be of interest to the company’s products and services because of what they can infer from the website, hence, advertising in television is not anymore a necessity.


            However, proposal of the European Commission is a threat to the television companies because of the fact that they would not be able to gain some profit as advert-free periods is the campaign. The longer advert0free periods will make the advertising give more importance as creating an advertising will not cost them a big amount in making their products known to the consumers.


            Lastly, the European Commission made that proposal in order to maintain a good status in terms of the advertising industry. Some may see that the proposal of the Commission is an act of conservatism however, the preservation of the advertising industry in the aspect of the economy means that the government assures that the it has been making ways to make the economy prosper.


 


 


 


 


 


 


2. Breakfast cereals companies market their products not only to the general viewers but also to their special target market, which are the children. The article provided that the European Commission suggested that there must longer advert-free periods during children’s and news shows.


            Breakfast cereals commercials if given an opportunity to advertise their products to children means that the children have seen the message that the advertisement has relayed to the market. Children are considered as the best market so vulnerable to the ideas and information they can acquire. Some of the authorities linked children’s mind to “sponge”. As sponge quickly absorbs water or other liquid substance, children on the hand believe and absorb information without any hesitation or constraints. A child has no restrictions as to the way they perceive any information presented to them.


            If breakfast cereals will be given an exposure to children, the more delectable the advertisement is, the more the children will crave for the cereal. If the children will perceive breakfast cereals as luscious food, they would make a way to have a taste of the said products. In addition, children will never view any unhealthy benefits of such products because what they commonly absorb is the fact that is more apparent within their senses. If breakfast cereals company will be able to create an advertisement that will be directly hold on to by the majority of the senses of human beings especially of children, the more they will be successfully in making their products be part of the top products offered in the industry.


            In addition, children tend to be more aggressive to satisfy their cravings because of what they perceived from the commercials, parents would be given no choice but to submit to the incessant pleads of their children. The breakfast cereals company on the other hand will likely consider such appreciation as part of their success. As children have been their tools to enable their products to have a good standing market value. According to Merrett (2007), Euromonitor stated that in using Nestlé’s marketing and production presence on all packaging and media advertising, including extensive television advertisements, the company has been able to command a sixty percent share of the children’s cereal market.


            However, the downside effect of such breakfast cereals to children if the parents will give in to the pleas of their children is to their health. Cereals contain sugar, which are higher than what is required. Another fact is that there are breakfast cereal companies, which attributed their products to fruits, which are nonetheless creating a false misconception to the public. As the parents continuously believe to what is the “healthy’ benefits of the cereals, the more children will be exposed to sickness or diseases.


            Another factor to consider is the fact that breakfast cereals are artificial foods hence the natural nutrients needed by a child’s body will not be met. There would be children who will grow as healthy looking but on the other hand, they lack nutrients, which their young bodies need. From this fact, the children will likewise just be able to have a taste of what perceived by their young minds as beautiful but their body will not be able to become more healthy. Unhealthiness is one of the main problems in this world because of the number of foods present that are not considered as healthy.


            According to Merrett (2007), there is an additional concern fro Cereal Partners Worldwide’s core breakfast brand – Trix, Star, and Koko Krunch – that according to Euromonitor are not particularly healthful. Although advertisers may have realized their goals in making their products known to children, the effect of such will render less effective if such companies will still continue create product that will be a threat to the health.  In addition, as children will nevertheless be more open to what is pleasing to their eyes they would never consider the any nutrition or heath benefits.


            Another effect is that breakfast cereals will be a substitute to any natural foods. Children may tend to see that fruits and vegetables are not good for them because such foods are not delectably presented just like breakfast cereals. Fruits and vegetables are necessary in the existence of a person; the need to be more apprehensive to the foods offered to the market must be taken into consideration. As children do not have that kind of appreciation or thinking, they will demand that breakfast cereals be part of their everyday food hence leaving the natural foods no place on their system.


            Hence, it is right for this author to conclude that the proposal will nevertheless be more of a positive gain to the advertising companies because of the fact that there are still indeed being appreciated by the children. There may be a chance that advertising companies will not have the ability to market their products longer that what is necessary, the children will still be more appreciative. The longer advert-free periods as perceived by this author will not be a threat to advertising companies but it will serve as a tool for them to make commercials, which are more “catchy”, but for a shorter time.


            Children will still perceive products as what is being relayed. The amount of time to highlight their product is not important. As mentioned children are like sponge, hence advertising companies for breakfast cereals must just to come of a commercial, which is more focus on the way children will perceive it. The author cites the fact stated about the healthy options in order to establish the conclusion that children are more open to try to what is beautifully presented to them. Lastly, children will not be concern to any negative facts that in contrast to what is presentable to them. Hence, longer advert-free periods will just intensify the advertising industry to make their advertising more efficient in a shorter period leaving no chance that consumer, especially children, to appreciate and consider their products.


 


 


 


 


 


 


 


 


3. I believe that the statement from the article stating that “The growth of digital channels, web based TV and viewers’ commercial skipping devices have fragmented audiences and challenged the core advertising-driven business of traditional free-to-air broadcasters.” is true.


            The development of technology has created another environment for the companies to set their wings in the field of advertising in the on0line world. The presence of their products in the internet does not cost them much expenses as compared to what they must do in creating television commercials.  Another factor that must be taken into consideration is the fact that the online marketing is far more better to induce consumers. There are several companies who would use internet, as there are many consumers who go online to research and make some references as to any queries they have in mind.


            As aforementioned, there are consumers who are exhausted as to the number of commercials presented in the television. In relation to the web-based channels, as the consumers is given the opportunity to skip commercials in the internet, in watching through the television, the consumers are more likely choose such skipping devices to be present in the normal television. This will affect the core advertising driven business for four reasons.


            The first reason is that consumers will be more apprehensive in watching the commercials because they will treat it as a waste of their time. Such will be the thinking of the consumers because the consumers who are used to such skipping devices are not interested to any commercials. Core advertising driven business will not be anymore be given the opportunity to reap profits.


            Second reason is the fact that such consumers who are exposed to such skipping devices will prompt to settle to the internet to view their favorite programs. This is on the other will make core advertising driven business vulnerable to losing their existence as one of the chosen industries for industries to enable advertisers to place their advertisement. Losing such could mean that core advertising driven business will not be able to operate as some of them derive their resources from the advertising companies,


            The third reason is that the core advertising driven business will based their conduct of business to a competition, which has not treated them as a competitor. The business conduct of such business will be based to what may be considered as a “ghost” competitor. The authors considered such as a “ghost” competitor because the internet industry is established as free and open to all. The core advertising driven business on the other hand runs their business in so far as they have money or resources to make it throughout their existence in the industry. Hence, the core advertising driven business will be competing based on what they cannot perceived but still believing on the fact that they have competitors.


            The last reason is the fact that core advertising driven business are more inclined to set standards in their own line of business. On the other hand as technology continuously, change to the fact that there are newly products of technology created and present, standards are not taken as part of their system. The standards set by the field of core advertising driven business are more focused on the proper to handle their business conduct plus the fact that they must conform to what it set by ethic. This is considered as an effect to the core advertising driven business because such standards could lead to their downfall if in case it will no longer be accepted by the public. Standards must the controlling factor of an industry but it must be set an example.


            The author perceived that the standards controlled the existence of the core advertising driven business hence making no room for them for growth. From this moment, the core advertising driven business will not realize any changes that are necessary to their existence. Core advertising driven business must not only stick to the standard must try to make a way to exhaust all their capacities and capabilities in making their business more progressive and be on the leading edge of the industry.


            As what Niccolo Machiavelli has stated, “Entrepreneurs are simply those who understand that there is little difference between obstacle and opportunity and are able to turn both to their advantage.” From this statement core advertising driven business must try to be more of a growing in the field of industry and must try to deviate from the norms may have set in order to realize more benefits and advantage.


            Hence, the author perceived that indeed growth of digital channels would affect the business of core advertising driven business because of the fact that the online industry offers more opportunities for advertisers to attract more consumers. The television field maybe of a good way to enable the industry to reach to their consumers in terms of actual views however; advertisers may still choose the online industry, as they are not subject to the fact that they must use a lot of money to make their existence apparent to their consumers. Lastly, as the public consumers are given opportunity to skip commercials online, the core advertising driven business must make a way to reduce the appearance of some advertisement, which will in turn affect the system of their company in terms of income and profits. The solution to reduce the appearance of commercials may be a promising idea however, in return, advertisers will settle to other industry to market their products, hence the subject business industry will not be productive step. It will be considered as counterproductive, because advertisers will settle to a business that has a highest number in ratings through the number of consumers who watched or used their Core advertising driven business programs. The problem will lie on the fact that consumers does appreciate many advertising hence, the company will be torn between the fact that they many consumers to be appealing to the advertisers and advertisers to help their continuous existence.


BIBLIOGRAPHY


 


Samiee, S. & Ryans, Jr. J, 1982, ‘Advertising & the Consumerism Monument in Europe: The Case of West Germany & Switzerland’, Journal of International Business Studies, vol. 13.


 


McDaily, 2008, Online Advertising in Europe, retrieved 1 August 2008, < http://www.marketingcharts.com/interactive/online-advertising-in-europe-surges-40-closing-gap-with-us-4780/>.


 


Merrett, N, 2007, Cereal Makers Missing Emerging Market Boon, retrieved 1 August 2008, < http://www.foodnavigator-usa.com/Financial-Industry/Cereal-makers-missing-emerging-market-boon>.


 


Rotko, H., The European Challenge, Egta, Retrieved 1 August 2008, < http://www.egta.com/documents/Final%20Europe%20challenge%20brochure.pdf>.


 


 




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