4.3

Question 1

Components of Ansoff Matrix

Answer 1

Existing Global Markets, New Global Markets
Existing Product, New product

Market Penetration
Market Development
Product Development
Diversification

Question 2

What is the Domestic/ ethnocentric approach
2 adv 2 dis

Answer 2

Based on the belief that the company’s home country culture and marketing practices are superior of those of other countries
Adv
Economies of scale as product is standardised
Lower costs as no investment into product development to adapt products
Dis
Potentially lose sales as product is not tailored to the needs and wants of market
May lead to cultural insensitivity

Question 3

Polycentric/International approach

Answer 3

Business treats each country as a unique market by tailoring their products to the local market using a customised marketing mix
Adv
Sales are likely to increase as the product is tailored to meet the needs of customers

This helps to develop brand loyalty in overseas markets
Dis
Product development to adapt the product may increase average unit costs

There will also be additional costs in market research to find out about the market

Question 4

Geocentric approach

Answer 4

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

Adv
Sales are likely to increase as the product is tailored to meet the needs of customers

This helps to develop brand loyalty in overseas markets
DIs
There will be costs associated with the product development and menu changes required to meet the needs of the local market

Question 5

Global Niche markets

Answer 5

Global niche markets are small segments of the global market that are characterised by unique and specific needs and preferences
Groups of customers within these markets are sometimes referred to as subcultures

Question 6

Features of global niche markets

Answer 6

Excellent customer service - customers expect as high price

Innovation - ensures products are highly differentiated and maintain a USP that meets needs of the market

Prioritising profits over market share
high profits to reinvest into improving products/services

Expertise in product area- highly knowledgeable + highly skilled employees

Emphasis on quality

Clear understanding on wants and needs of customers

Question 7

6 factors to consider in Global Marketing

Answer 7

Cultural Differences

Unintended meaning

Different tastes

Language - translated accurately and appropriately

Inappropriate/ inaccurate translations

Inappropriate branding/promotion