Essay about Effects of Advertising in International Marketing

895 Words 4 Pages
The effect of globalization on business worldwide cannot be overstated. The phenomenon of the world becoming a global village has led to the rise of multinational enterprises (MNEs). As Kleinert (2001) aptly states, “MNEs are the vehicles that have fostered international trade, international knowledge transfer and technological advancement.”
The very existence of a “multinational” entity implies the need for the business to span across diverse cultural beliefs, languages and norms .It is thus imperative that cultural diversity is considered closely when forging business strategies of MNEs.
Undoubtedly, various factors have contributed significantly to the ascent of MNEs. A factor such as the increased prominence of the internet has
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Language creates a sense of belonging and solidarity within a group of people (Meija and Palich, 1997). Thus, for an MNE to succeed in a host country, it has to leverage on the common language spoken in the host country. It is by making use of local language that advertisements about their products can be effectively broadcasted.
Parading the service that an MNE has to offer in local languages brings their product down to the common everyday user. For example, in Nigeria, MTN, a telecommunications company leveraged on making use of our 3 major local languages, Yoruba, Ibo and Hausa in servicing its customers from its customer service centers. This increased its customer base by 20% in its first year of offering this service (MTN News, 2010). This confirms the fact that an MNE needs to adopt the local lingua franca of its host country in order to maximize its sales and overall acceptance level.
Another factor that has had great effects on the growth of MNEs is the level of technological advancement existing in the host country. The technological state of a host country determines the level of capital investment required to start the MNE and to keep it running. For instance, running a business in third world nations like Nigeria and India would be more expensive to run than in more developed nations due to factors such as unreliable power supply.

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