4.3 Global marketing Flashcards
(11 cards)
What is the ethnocentric approach to marketing
This is when there is little or no attempt to adapt to the international market
Benefits of this include standardisation due to promoting consistency, efficiency and quality. Also, can achieve economies of scale.
May not take into account the culture across different nations
What is the polycentric approach to marketing
This is a complete change to marketing and the product to suit a particular international market
This is expensive and can be difficult to launch new products to compete with local brands
However, products are better targeted to meet the needs of specific countries and cultures
What is the geocentric approach to marketing
This is where there is slight adaptations to suit international markets (glocalisation)
Products may be tailored to the local market with lower development costs
How does ansoff matrix work as a marketing approach
As a business moves into an international market it will either adopt a market development approach (geocentric and ethnocentric) or a diversification strategy (polycentric)
How is each element of the marketing mix affected by going into an international market
Product- what extent does the product need to be adapted
Price- What pricing strategy is best suited to the local market
Place- What are the best channels of distribution in international markets
Promotion- What are the most effective promotional methods in different countries
What are features of a global niche market
- clear understanding of needs and wants of customers
- Has an emphasis on quality
- Excellent customer service
- Innovative
- Expertise in product area
Why might competing in a global niche market be beneficial
As businesses who offer a highly specialist product may find it easier to expand
This is because innovation, expertise and specialist knowledge may not already exist in other countries, unlike mass markets
What is international desirability
Wanting a product or service due to its exclusivity in another country, this is because they are seen as exotic goods
What factors contribute to international desirability
Social media
The internet and e-commerce
Ease of travel
Music, film and TV
How can niche businesses use the marketing mix
Product- design products with a focus on quality and premium service
Price- the nature of niche businesses dictates pricing must deliver a highly profit margin
Promotion- branding is vital; will use targeted promotion to customers
Place- A narrow range of distribution channels, using agents which will support the image of quality and exclusivity
What are some cultural and social barriers
Cultural differences- includes the beliefs and values of society which may differ to others
Unintended meanings- Some brands may translate to different meanings in other countries
Language differences- this can cause confusion and misunderstanding
Different tastes
