BACC3 COSC7311 Learning Unit 10:

1. BACC3 COSC7311Learning Unit 10: GLOBAL Advertising & Public Relations

2. Key Concepts Advertising The action of calling something to the attention of the public, especially paid announcements. Public Relations The business of inducing the public to have understanding for and goodwill toward a person, firm/. Institution or government. Public Relations Practitioners are intermediaries between the organisations that they represent and all the organisation’s publics (internal and external) (Kruckeberget al 2004).

3. Five (5) assumptions about Advertising & Public Relations Kamalipour2007: 272 - 280 Western, if not American, in originIt is assumed that that today’s Public Relations is based on specific North American ideologies; however, Public Relations date back the Middle East as far as 3000 B.C. Corporate in purposeIt is assumed that Advertising’s intention is purely to grow large corporations as national and global institutions and enjoying the growth of consumerism; however, even though both Advertising and Public Relations are indeed corporate tools, both disciplines can be used for “relationship marketing” to assist Non-profit organisations.

4. Manipulative in its role, function and intentIt is assumed that Advertising and Public Relations are only used to influence people for corporative objectives; however, both disciplines are more complex and play a role in a democratic society. Democratic in its traditionsAlthough both Advertising and Public Relations contribute to a democratic society, both disciplines have to commit to continuously be open with their publics. Capitalistic in its heritageIt is assumed that Advertising and Public Relations disciplines are both formed on capitalistic ideas; however, both have strong democratic traditions that can be used in a postmodern society. Possible Question in the exam: Discuss any two (2) assumptions about global Advertising and Public Relations [10 marks]

5. Why it can be said that some corporations are more powerful than some countries Kamalipour2007: 283 - 284 The power and influence that some transnational corporations yield far exceed the GDP of some countries in the world. Here are some examples of such corporations: Wal-Mart Stores, Inc (a retail giant, which owns a majority share in Mass-Mart Stores in South Africa), had a revenue of $476 billion, has over 2 200 000 employees worldwide and serves millions of people around the globe. Thus, Wal-Mart Stores made more money than the GDP of Belgium, Vietnam and Switzerland in 2012

6. Samsung (a Japanese conglomerate) had a $229 billion fiscal year in 2013/14 and are the world leaders in terms of technological developments, which include smartphones, TVs, computers and tablets. They aggressively expanded into foreign markets and have interests in ship-building, life insurance and even construction. Thus, Samsung made more money than the GDP of Hungary, Finland and Cuba in 2012. Nestle food and beverage is a Swiss owned company which generated a $100 billion profit in 2013/14. Their brand, known for promoting clean, stylish products and services, can be found in even the most remote countries. Thus, Nestle made more money than the GDP of Yemen, Ghana and Kenya in 2012. Source: www.philia.ca

7. Group exercise: Find examples of South African and/ or African corporations that are more powerful and influential than some countries. Explain why?

8. Four (4) reasons why technology could intensify class stratification Kamalipour2007: 286 - 287 • Class stratification refers to how society tends to divide into separate classes (upper, middle or lower; rich and poor) whose members have different access to resources and power. • Technology are developed and utilised by the same people (specific class) who, not long ago, marginalised lower classes. • The computerisation of schools might not contribute necessarily to “high wages” or “good jobs”. • Who will buy the computers and other technology for the underclass of people; also, if primary needs (food, water, shelter, etc.) are not met, what good will technology do? • One of the characteristics of modernity are those forms of behaviour that enunciates (puts emphasis on) class distinction.