4.3 Flashcards
(15 cards)
what is glocalisation
Adapting global products or services to meet the specific needs and preferences of local markets, while maintaining a global brand identity.
what is an ethnocentric approach (domestic)
- assumes what works in home markets will work in international markets
- Firms wont adapt their products to different markets
ethnocentric advantages
- economies of scale
- No development costs in adapting products
ethnocentric disadvantages
- may not sell well - doesn’t match needs and wants
What is the polycentric approach (international)
firms tailor products and marketing mix for each of the local markets
Polycentric advantages and disadvantages
+ higher sales
- expensive - due to market research
what is the geocentric approach (mixed)
firms use a combination of both appproaches
Geocentric advantages and disadvantages
+ higher sales
- expensive
definition of ethnocentrism
tendency of people to view their own cultures, ethics and norms as superior
(to market effectively, businesses would want to overcome this)
what is a global niche market?
small segments of the global mass market that have specific needs, aka subcultures
- small np. in one country, however, when combined across the world, the no. are significant
Features of the global niche markets
- clear understanding of needs
- excellent customer service
- high quality
- expertise in the product area
- profit > market share
- innovation
what is cultural diversity?
recognises ideas, customers, social behaviour of people in society
Cultural and social considerations for firms
- cultural differences
- language
- unintended meaning
- different tastes
- inaccurate translations
- Inapporpotaite building + promotion
differing tastes as a consideration
some coutnries may need more adpatations to products
i.e. religion or legislation
inappropriate branding and promotion as a consideration
- language mistranslation and unintended meanings
-firms need to ensure they research the culture and what is expected by their promotion and product
