4.3 - Global marketing Flashcards
(45 cards)
What is glocalisation
maintains consistent brand, image but makes adaptations to products to suit local markets
What is a global marketing strategy
adaptation of a marketing strategy to target all markets on a worldwide scale
What is the EPG model
a framework that can be used to look at marketing approaches used by global firms
What is a home nation
where business originated
What is a host nation
where the target market or subsidiary of the business is based
What is polycentricity
belief that all markets are different
-decisions are made at a local level
Name the 3 different approaches in global marketing
-domestic/ ethnocentric
-international/ polycentric
-mixed/ geocentric
What is geocentricity
combines ethnocentric and polycentric perspectives
-belief that ppl all over the world share some characteristics
-also excepts local differences -> localisation
What is cultural diversity
range of different ppl within a society; based on ethnicity, beliefs
Why must businesses take cultural diversity into account when selling their products
-diff ppl hold diff values, interests
-must cater for these differences
Name 3 things cultural doversity is driven by
-economic factors; diff levels of disposable incomes in diff countries
-weather; impacts how ppl work, relax
-history, tradition; diet, attitudes to religion, gender
What is the domestic/ ethnocentric approach
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
Name 2 advantages of the ethnocentric approach
-economies of scale - product is standardised, large scale
-costs lower - no need for product development
Name 2 disadvantages of the ethnocentric approach
-lose sales -> product is not tailored to needs & wants overseas
-cultural insensitivity -> may not resonate with local customers in other countries
What is the polycentric/ international approach
-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
Name 2 advantages of the polycentric approach
- ^ sales - as product is tailored to customer needs
-brand loyalty in overseas markets
Name 2 disadvantages of the polycentric approach
- ^ unit costs -> product development
-market research costs
What is the geocentric/ mixed approach
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
Name 2 advantages of the geocentric/ mixed approach
- ^ sales
-brand loyalty in overseas markets
Name 1 disadvantage of the geocentric/ mixed approach
-^ costs -> product development
What is the marketing mix
set of controllable marketing tools a company uses to promote its brand/ product
-consists of 4 P’s - product , price , place , and promotion
How can we apply the Marketing Mix to global marketing?
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
Why must businesses change their marketing mix when operating in overseas markets
to meet local needs
-this allows company to effectively penetrate global markets and build a strong global brand
Give an example of how the marketing mix could be adapted to global markets
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
