A Study On the Comparative Analysis of Advertising Strategy in Korean and Japanese Business Enterprises

Jae-Young Yoo(Master's Progran in Business Administration Graduate School of Konkuk University)

As a result of rapid changes in the advertising situation and strong competition for goods, the establishment of an advertising strategy and concrete plan ins needed if firms wat to continue growth. To establish an advertising strategy, the advertising manager should sufficiently check internal conditions, then establish a flexible strategy depending on external conditions. Exactly the firm decides the advertising object oriented sales or communication and then it should draw up the reasonable budget and design the detailed schedule. Advertising strategy establishment is essential to the actual condition of the other types business, the scale of advertising investment, information for evaluation of efficiency and competitive analysis of advertising strategy concerning Korea and Japan.

As for the media, composition of Korean firms is 39.6% newspaper, 29.4% TV Compared with japan's composition which is 34.5% TV 30.3% newspaper Korean firms prefer newspaper media to TV. By contrast, the Japanese prefer TV media. In case of Korea, composition of TV and newspaper is as high as 70% so, it needs balance between main media and sub media. As for the TV media, foods and drinks monopolize 36.8% of total TV advertising cost.

It should be balanced among different business types for using advertising of the other business types.

In scale of investment, Japan's advertising cost takes the 1% of the in 1982. Korea takes the 0.88% of GNP. It is as low as the 1976 level of Japan. but it will be increasing .

Advertising investment of individual firms in two countries has a big gap between top ranking firms. Top ranking of Japan, Nissan, invests 38 billion Yen. And top ranking of Korea, Tae Pyung Yang chemical co, invests 7.3 billion Won. Sales volum versus advertising rate as measurement standard of advertising efficiency under the 1% firms are 14 in Japan and 37 in Korea.

Till now, this thesis discussed the establishment of advertising strategy for the statistical approach method. And then the new advertising strategy is the Product Life Cycle-Product Prortfolio Management(PLC-PPM) method. this is PPM's connected model method which is considered to be market share by the external variables PLC.

Advertising is changed depending on Product Life Cycle and Product Portfolio Management 4 steps. These are problem child(introduction stage) - star(growth stage) - cash cow(puberty stage) - dogs(decline stage).

Advertising managers should contribute to increasing of sales volume through the statistical approach method and new advertising strategy approach method for establishment of reasonable advertising strategy.