Advertising is more than just the means of disseminating product information. It is a primary communications tool of our economic system. Moreover, aside from its diverse role as a persuasive communication tool, it is also part of the everyday culture of virtually everyone. Actually advertising is a part of our social, cultural, and business environment.
Organizations are open dynamic systems for transforming resource inputs into saleable outputs (goods & services). They are created to provide useful products and services that satisfy the needs of customers and provide value to stakeholders. But the interests of various stakeholders (whether employees, customers, suppliers, or stakeholders) are not always aligned. This places conflicting pressures and demand on managers.
The following four rights are the basis of much of the consumer-oriented legislation that has been passed during the last thirty years. These rights also provide an effective outline of the objectives and accomplishments of the consumer movement.
Many firms, driven by a need to better communicate with their customers and other stakeholders, recognize that marketing “is not a specialized activity at all. It encompasses the entire business. It is the whole business seen from the customer’s point of view.” Every aspect of the marketing mix – the product, channels of distribution, price, and marketing communications – affects customers’ response to a product/service.
Successful companies are those that can recognize and respond profitably to unmet needs and trends in the macro-environment. Unmet needs always exist. Companies could make a fortune if they could solve any of these problems: a cure for cancer; chemical cures for mental diseases; non-fattening tasty nutritious food; and practical electric cars. However, during the last decade, cross-border economic transactions have increased in scope (stretching) and intensity (deepening). This applies to trade flows, investment flows and financial flows, but also to flows of services, technology, information and ideas across national boundaries. Interdependence, among countries within the global economic, social and political system has increased. Decisions and activities of any country in the world greatly influence the participant’s options in another country, even in the very distant ones considering culture or the economical situation each faces.