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Advertising in Slovakia

Advertising in Slovakia

Influence of advertisement in “new Europe”

1. Introduction
2. Brands and lifestyle
3. Costs comparison in different countries
4. Differences among consumers
5. Dependence between fortune and brands

1. Introduction:
Last days, when Slovak republic became the part of EU, everything began to change. Changes arrive also in the area of advertising. Our media market attracts foreign companies because of big potention to grow. Volume of media communication in new Europe will rise more intensive than in foretime. Reason for this fact is desire of east European customers for branded and expensive goods.
It is because of effort to reach the same level of living standard like in Western Europe, also in spite of disgust to big consumption of richer countries.

2. Brands and lifestyle:
GDP per inhabitant in the Middle and Eastern Europe is very low. It is less than a half of GDP in the poorest state of Western Europe – Portugal. But despite these states rise much faster.

Expenses on communication will be probably higher because producers of goods and services will pay lower taxes!
Last year went down these taxes in Hungary, Latvia, SR, Poland, Czech Republic and they were lower than average in EU. So consumer products market, which is engine of brand communication, is growing much faster in Middle and Eastern Europe than in Western Europe. Also advertising costs in Middle and Eastern Europe are only ¾ of costs in e.g. Great Britain.
By joining new states in EU are eliminated import quotas that support demand on branded products. Domestic products can increase advertising their own products, too.

3. Costs comparison in different countries:
Very big difference between old & new Europe is in cost per thousand (CPT). Average CPT in Western Europe in year 2002 was 8.7$ and in Middle and Eastern Europe 3.16$. These differences you can see in every Eastern country. In comparison with Switzerland is CPT through TV 11 times cheaper in Poland, 8 times cheaper in Slovakia. In Czech Republic and Latvia, it is 4 times cheaper what is still more expensive than in Italy, Norway and Greece. SR reaches average in EU.

4. Differences among consumers:
Some advertisement creators can ask, if nationality plays a role by media communication of brands. Chief of consumer communication Levi Strauss Company Paul Bay claims:
“There are 15 motivation factors, e.g. family, honor, independence or appreciation, which are typical for all people. If you will build on any of them in whichever country, it guaranties success to your brand.”
Difference among nationalities is in preference of media types. In Romania is journal reading lower than 1/3, in Sweden it is 90%. Hungarians prefer electronic media. They listen to the radio about 5 hours a day (Spanish 1,5h) and watch TV 4 hours a day (Lithuanians 1h).

5. Dependence between fortune and brands:
Taste of new European inhabitants for branded and so more expensive goods is rising. It is related to always bigger desire to be rich and own expensive goods.
This desire is bigger by men than by women. The biggest taste have citizens of Poland and they say most often from Eastern Europeans (50%), that co-op is dangerous for their culture.

more willing to buy less and branded than more and not so well known. Advertisements influence our mind, our natural tendency to make anything to own nice items. And it is target of advertisement.

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