ADVERTISING AND THE ECONOMY

Advertising and the Economy



Advertising and the Economy

Introduction

This paper focuses on the effect of the current economic crisis on the Advertising Industry and its impact on Burger King. The concept of advertising that normally revolves around the communication process. The task of communication tries up to build alertness of brand. Consumer thoughts have been altered with innovative ideas regarding the products and communicates customer regarding product properties and dimensions. The essential role of advertising is to increase the probability regarding the sale of a product or a service. The promotional technique of Advertising supplements the tendency to purchase also increases the prospect towards the product to make a decision regarding the purchase. Advertising is one of the few communication forces that are used effectively by the marketers. It makes the buyer pass through multiple stages such as action, conviction, recognition and comprehension. Therefore, this is the role of communication in advertising and promotion.

The advancement of technology has allowed the media to fill and satisfy the needs of man. Technology is helping the progress of humanity, and the technological revolution leads to fundamental changes that lead to improving the lives of human beings. Born this way new and emerging media that come to contribute and meet the required needs. Young people make use of these new technologies.

Impact of Economic crisis on Advertising Industry

First, under the influence of global economic crisis depressed state, delayed development, media investment financing so suffer serious setbacks. Economic crisis is leading to those who rely mainly on investment or overseas investment for the operation of the media enterprise financial stress. At the same time, volatile stock market at home and abroad over more than 20 new media listed company's shares fell. Large number of media listed companies in China inevitably NASDAQ market effects, serious losses. Some media organizations in the country due to the shortage of funds, “supermarket” time-sharing media network, display media, Thunder, easy access to media, such as listing and financing schemes have stranded. Chinese media enterprise not reached a high degree of market, no serious impact in the market (Wang 2008, pp. 130).

Second, with the outbreak and spread of financial crises, China's economy has been seriously affected, resulting in a media advertising media industry gradually reduced. Some enterprises as confidence in the market are not sufficient, in the management and sale is also facing many problems, so as to reduce advertising placement fee. In financial crisis, real estate, automotive, telecommunications and other industries in China have been subjected to serious influence and impact (Picard 2001, pp. 1).

Advertising industry in China occupies a greater proportion of industry than the Western media, so advertising revenue gradually reduced to the Chinese media industry have a huge impact. China's media industry advertising-oriented mode of operation has a single, will be seriously affected by the economic crisis (MacDonald 2005, pp. 220). This economic crisis in China's newspaper industry reshuffle, gradually reduced media advertising, media have started to become ...