4.3 - Global Marketing Flashcards
(28 cards)
What is global marketing?
The process of planning, producing, pacing and promoting a product in international markets
What is glocalisation?
Adapting a global product or brand to meet the needs and preferences of local markets
E.g. McDonald’s offering McPaneer in India
What is the ethnocentric (domestic) approach to global marketing?
Belief that the home market approach works everywhere - products and marketing are standardised globally
What is the geocentric (mixed) approach to global marking?
A balanced between standardisation and adaption - some elements are global, others are localised
What is the polycentric (international) approach to global marketing?
Adapting products and marketing to suit each individual market - full localisation
What are the advantages of the ethnocentric approach?
- lower costs due to standardised marketing and products
- consistent global brand image
- easy to mamange and control
What are the disadvantages of the ethnocentric approach?
- may not suit local customer needs
- can result in poor sales or cultural insensitivity
What are the advantages of the geocentric approach?
- saving money and keeps control but also makes changes where needed
- balances brand consistency with cultural fit
What are the disadvantages of the geocentric approach?
- complex to manage
- may still involve higher costs due
- requires strong local market knowledge
What are the advantages of the polycentric approach?
- products and marketing tailored to local preferences
- increasing customer satisfaction and sales
What are the disadvantages of the polycentric approach?
- higher costs from adapting marketing and product design in each market
- inconsistent brand image
What are the advantages of glocalisation?
- increases customer satisfaction by meeting local needs and preferences
- improves chances of success in diverse markets
- avoids cultural mistakes
What is a global niche market?
A smaller, specialised segment of a global market that caters to specific needs, interests or values
What is cultural diversity in global marketing?
The recognition that different cultures have distinct value, tastes, languages and behaviours that must be respected
Why is cultural diversity important in global niche marketing?
It ensures that products and messages resonate with local customers, improving relevance and success
Features of global niche markets - Specialised Needs
Products are designed for a specific group with unique requirements e.g. luxury travel
Features of global niche markets - Premium Pricing
Customers are often willing to pay more for products that closely match their values or lifestyle
Features of global niche markets - Strong Branding and Customer Loyalty
Brands in niche markets often build a lotyal following meeting customer expectations exceptionally well
What is an advantage of operating in global niche markets?
- less competition
- more loyal customers
- higher margins
- higher brand strength
What are some disadvantages of operating in a global niche market?
- smaller customer base limits growth
- success depends on deep understanding of the target segment
Why must businesses consider cultural and social factors in global markets?
To ensure their products, branding and marketing are appropriate and effective in different cultures.
What are cultural differences in global marketing?
Variations in beliefs, customs, values and behaviours across countries that influence how consumers respond to products and promotion
How can different tastes impact global marketing?
Food, fashion and product features may need to be adapted to meet local preferences and consumption habits
