Discussion:
Advertising in developing markets can have both positive and negative effects. It is, in many ways, a sword that cuts both ways. On the other hand, host nations obviously realize that international marketers and their agencies do make contributions to host societies, which is why they allow them to operate within their borders in the first place. Indeed, in numerous instances corporations and agencies are invited to enter these markets and are even offered concessions, incentives for foreign investment, and tax exemptions (Del Toro, 1986), A good many products have proven to be both of value to consumers in developing nations and profitable for international marketers. And, as noted, advertising has been employed in combating social ills and improving health and hygiene in many less developed markets.
On the other hand, there are real dangers associated with the use of marketing and advertising in developing countries. Over commercialization of the media may well result in the decline of local programming unless protective steps are taken. Deceptive campaigns and the promotion of undesirable or dangerous products pose potential health and other risks for Third World consumers. Additional regulatory bodies are needed to fulfill a watchdog function. It is indeed possible to limit the negative effects with planning and regulation. Scholars and researchers mush continue to attempt to understand the effects of advertising in developing markets. As Michael Anderson (1984) summarizes:
Generalizations about the precise costs and benefits that the transnational advertising agencies bring to their host nations are difficult to make. This is because nations and their development policies and patterns, problems and pressures are in a constant state of flux and are products of various interwoven factors operation within and between nations. What can be said with some certainty, however, is that the presence of the multinational advertising agencies in any developing economy does generate some tension and conflict.
1) The authors' quote Michael Anderson's summary of costs and benefits that transnational agencies bring to their host nations, ending with "What can be said with some certainty, however, is that the presence of the multinational advertising agency in any developing economy does generate some tensions and conflict."
Research evidence for or against this claim and in a minimum of 25 lines discuss its merits.