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Buisness > 4.3 - Global marketing > Flashcards

4.3 - Global marketing Flashcards

1
Q

What is glocalisation

A

maintains consistent brand, image but makes adaptations to products to suit local markets

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2
Q

What is a global marketing strategy

A

adaptation of a marketing strategy to target all markets on a worldwide scale

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3
Q

What is the EPG model

A

a framework that can be used to look at marketing approaches used by global firms

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4
Q

What is a home nation

A

where business originated

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5
Q

What is a host nation

A

where the target market or subsidiary of the business is based

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6
Q

What is polycentricity

A

belief that all markets are different

-decisions are made at a local level

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7
Q

Name the 3 different approaches in global marketing

A

-domestic/ ethnocentric

-international/ polycentric

-mixed/ geocentric

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8
Q

What is geocentricity

A

combines ethnocentric and polycentric perspectives

-belief that ppl all over the world share some characteristics

-also excepts local differences -> localisation

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9
Q

What is cultural diversity

A

range of different ppl within a society; based on ethnicity, beliefs

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10
Q

Why must businesses take cultural diversity into account when selling their products

A

-diff ppl hold diff values, interests

-must cater for these differences

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11
Q

Name 3 things cultural doversity is driven by

A

-economic factors; diff levels of disposable incomes in diff countries

-weather; impacts how ppl work, relax

-history, tradition; diet, attitudes to religion, gender

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12
Q

What is the domestic/ ethnocentric approach

A

when businesses see the domestic market and foreign markets as very similar

-based on belief that companys home country culuture practices are superior to other countries

-no changes to products for overseas customers

-e.g. Apple

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13
Q

Name 2 advantages of the ethnocentric approach

A

-economies of scale - product is standardised, large scale

-costs lower - no need for product development

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14
Q

Name 2 disadvantages of the ethnocentric approach

A

-lose sales -> product is not tailored to needs & wants overseas

-cultural insensitivity -> may not resonate with local customers in other countries

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15
Q

What is the polycentric/ international approach

A

-when businesses adapt their marketing strategy by tailoring products to local market

-company treats each country as a unique market

-e.g. kitkat - different flavours in diff countries

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16
Q

Name 2 advantages of the polycentric approach

A
  • ^ sales - as product is tailored to customer needs

-brand loyalty in overseas markets

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17
Q

Name 2 disadvantages of the polycentric approach

A
  • ^ unit costs -> product development

-market research costs

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18
Q

What is the geocentric/ mixed approach

A

mix of the polycentric and ethnocentric approach

approach utilises the benefits of standardised products but also tailors products to meet the needs of local markets overseas

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19
Q

Name 2 advantages of the geocentric/ mixed approach

A
  • ^ sales

-brand loyalty in overseas markets

20
Q

Name 1 disadvantage of the geocentric/ mixed approach

A

-^ costs -> product development

21
Q

What is the marketing mix

A

set of controllable marketing tools a company uses to promote its brand/ product

-consists of 4 P’s - product , price , place , and promotion

22
Q

How can we apply the Marketing Mix to global marketing?

A

Product –> how much should a business modify its product (ethnocentric/polycentric/geocentric)
Price –> Must consider, local incomes, taxes, rents etc.
The iPhone costs less in Russia than in US. Prices will also reflect different local factors, such as wage rates and taxes
Place –> need to take into account of how local consumers typically buy there products e.g. US consumers usually shop using large supermarkets than convenience store
Promotion –> Must be conscience of language and culture differences

23
Q

Why must businesses change their marketing mix when operating in overseas markets

A

to meet local needs

-this allows company to effectively penetrate global markets and build a strong global brand

24
Q

Give an example of how the marketing mix could be adapted to global markets

A

place -> may have to change distribution channels, consider avaliable tech -> many transactions take place via internet

product -> size, taste/ flavour, packaging, ethno poly geo approach

price -> must consider customer incomes, product life cycle, state of economy (recession, boom)

promotion -> appropriate language, culture, method

25
Q

What is Ansoff’s Matrix

A

strategic planning tool that helps businesses identify potential growth opportunities by analysing their product and market strategies

consists of four growth strategies - market penetration, market development, product development, and diversification

26
Q

Describe Ansoff’s Matrix

A

existing global market
existing product -> market penetration

existing global market
new product -> product development

new global market
existing product -> market development

new global market
new product -> diversification

27
Q

What is market penetration

A

where business sells existing products into existing markets

-least risky

28
Q

What is market development

A

where business sells existing products to new markets

-business may have to adapt product to meet differing needs of customers

-more risky

29
Q

What is diversification

A

where business develops new products for new markets

-high risk

-requires understanding of local market conditions, consumer behaviour

30
Q

What is product development

A

where business aims to introduce new products in existing markets

-requires market research

-adapting marketing mix to ensure products resonate with customers

31
Q

Why is Ansoff’s matrix used when deciding which strategy to utilise in global markets

A

-helps businesses assess level of risk associated with the decision

-allows them to assess similarities/ differences of new markets compared to existing markets

-as well as judging risk

32
Q

Describe the boston matrix

A

-allows a business to asses their product portfolio

high market growth
high market share -> rising star

high market growth
low market share -> question mark/ problem child

low market growth
high market share -> cash cow

low market growth
low market share -> dog

33
Q

What is a global niche market

A

small segment of global market characterised by specific wants and needs

34
Q

Name 5 features of global niche markets

A

-excellent customer service - higher prices so customers expect good service

-clear understanding of needs, wants - have fewer customers so needs can be met more specifically

-emphasis on quality - targeting wealthier customers- expect high quality

-expertise in product area

-innovation

35
Q

Who do global niche market products generally appeal to

A

-wealthy ppl

usually luxury products like cars, perfume -> tend to be highly differentiated products

36
Q

Using the 4 P’s explain how the marketing mix is adapted to suit global needs

A

-product -> modify features to meet specfic needs of target audience - differentiate products

-price -> offering pricing strategy suitable to attract - premium price

-promotion -> using marketing communication strategies that resonate with audience

-place -> choosing a convenient distribution strategy

37
Q

What are the advantages of global niche marketing?

A

higher prices -> demand is more price inelastic -> higher profit

The product is distributed through specialist retailers or directly to the consumer. This has advantages in terms of image.

38
Q

What are the disadvantages of global niche marketing?

A

-low sales volume

39
Q

Name 6 cultural and social factors businesses must consider when operating in a global market

A

-different tastes

-cultural differences

-language

-inappropriate branding & promotion

-unintended meanings

-inappropriate/ inaccurate translations

40
Q

How can cultural difference affect business operations?

A

-must be aware of how businesses and customers interact in new global markets

-need to understand cultural differences; values, beliefs, customs, traditions, behaviours & adapt their marketing strategies accordingly

41
Q

How can different tastes affect business operations?

A

Tastes and preferences vary greatly between cultures and regions -> food, drink, fashion

Businesses must ensure that their products/services are adapted to meet local preferences

42
Q

How can language affect business operations?

A

Businesses must ensure that their marketing messages are translated accurately and appropriately

This involves understanding language nuances and idioms

43
Q

How can unintended meanings affect business operations?

A

arise when businesses use images, symbols, or language that have different connotations in different cultures

-could lead to negative image portrayed of business

44
Q

How can inappropriate/ inaccurate translations affect business operations?

A

potential issues:
-using wrong words -> confusion
-brand name that sounds like something else
-slang

can lead to loss of credibility, legal implications, and damage to brand reputation

must use professional translation services and consult with local experts to ensure messages are accurately translated and culturally appropriate

45
Q

How can inappropriate branding/ promotion affect business operations?

A

can occur when businesses use images, symbols, language thats offensive in diff cultures

-> negative publicity

Buisness (22 decks)

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