The Decision Model of International Advertising for IT Industry

• Main Authors: Chen, Yen-hau, 陳彥豪
• Other Authors: Chen,Wun-Hwa
• Format: Others
• Language: zh-TW
• Published: 1998
• Online Access: http://ndltd.ncl.edu.tw/handle/99357823830843824892

碩士 === 國立臺灣大學 === 商學研究所 === 86 === Taiwan''s information technology industry plays an important role of manufacturing computer-related goods in worldwide market. However, the industry''s players mainly focus their business on OEM/ODM (Original Equipment Manufacturing/Own Design Manufacturing). To increase the revenue and ensure future business growth, it is essential for senior management to market products worldwide by their own brand (OBM, Own Brand Manufacturing). The decision to advertise internationally is the first decision needed to be addressed in becoming an OBM firm. This paper assesses the international advertising related theories relevant to this area. Then using the research methodology of "Grounded theory" and "Case Study" analysis, the author analyzes interviews with 10 senior international advertising decision-makers in Taiwan. The paper finally proposes a decision model for international advertising in the IT industry. The main conclusions drawn from the interviews and research carried out are as follows: 1. OEMs/ODMs have no concrete international marketing planning. 2. Despite the learning value of OEM production for Taiwanese firms, the main development strategy for these firms in the future will be as OBMs. 3. Taiwanese firms view advertising as secondary in their international promotion strategies to other activities including public relations, product testing, international trade shows. 4. The purpose of international advertising was seen only as a way to maintain the relationship with resellers or distributors. The function of international advertising was viewed as a way to announce new products to the market, enhance one''s brand image, and to maintain exposure levels. 5. The main budgeting method for advertising was the Percentage-of-Sales method. The other method commonly used was the Bottom-up method. 6. They used non-standard advertising content worldwide. 7. Company headquarters largely drove the decision making for international advertising. 8. Magazines were found to be the main advertising media for the IT industry. Internet advertising was generally being given serious consideration by companies as an alternate advertising media. 9. The criteria for choosing advertising media was the market position of the media and the opinions of both resellers and readers. 10. Companies only passively evaluated the effectiveness of selected media, through methods such as responses from customers. Finally, in line with the paper''s research results, a mathematics model of media selection was constructed in order to develop an integrated decision-making model for international advertising. This model may be of significant value as a reference for future research in this area.