4.3- Global Marketing Flashcards Preview

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Flashcards in 4.3- Global Marketing Deck (24)
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1

Define a global marketing strategy

Involves the planning, producing, pricing and promoting of a businesses products in a worldwide market

2

Define Localisation

Is the strategy used that adjusts products to fit with target customers

3

Define Glocalisation

Is a combination of globalisation and localisation, involving the development and sale of products to customers around the world which reflect specific local customs, tastes and traditions

4

Explain the advantages and disadvantages of of a firm not changing its products as it moves into global markets

A
Economies of scale can be achieved - lower costs
Lower marketing costs
Market power as brand image is more known
Consistent in brand image
D
Differences in consumer response to marketing mix
Differences in brand and product development
Differences in competitive market
Differences in the cultural and legal environment

5

Explain a polycentric approach as a marketing approach


Give an example

Businesses adapt their product to the local markets in which they plan to sell. Involves developing and marketing their product differently for different demands

E.g. Mcdonalds

6

Explain a ethnocentric approach as a marketing approach

Where overseas markets are seen as identical or similar to domestic markets. Businesses make little or no attempt to adapt their product for different markets.

E.g. Ikea

7

Explain a geocentric approach as a marketing approach

Businesses use a combination of ethnocentric and polycentric strategies. Strategy is to maintain and promote the global brand name, but to tailor its product to local markets.

E.g. Car manufacturers

8

Explain the marketing mix for global markets

Product- what extent should a business modify its product for global markets
Price- decisions around price take into account local factors such as incomes, taxes, rents and other costs. Unlikely a business will charge the same price in all markets.
Place- need to take into account how local consumers typically buy their products
Promotion- businesses need to be conscious of language and cultural differences

9

Explain the Ansoff Matrix for global markets

Market penetration- selling products in global markets they already operate in to existing customers
Product development- encouraging customers to keep buying more of a firms product in existing overseas markets
Market development- means taking products that already exist and finding new global markets for them
Diversification- providing new products in new global markets

10

Define a global niche market

Occurs where customers who live in more than one country have particular needs that are not fully met by the global mass market

11

Explain why global niche markets exist

Exist where the local market for a product is too small to be profitable but at a global level the market is very viable. Firms may exploit niche markets as part of a global marketing strategy

12

State the features of business that operates in global niche markets needs (5)

A clear understanding of the needs and wants of the market segment
Emphasis on quality
Excellent customer service
Expertise in the product area
Innovation

13

Explain cultural differences affect on global niche markets

May influence the way to product is marketed. A product name suitable in one country may have a different meaning in another, different cultures and traditions may mean a firm has to change its products to suit global niche markets

14

Explain the marketing mix for global niche markets

Product- Global niche markets often place an emphasis on achieving high quality

Price- The point of a niche marketing strategy is to charge higher prices by providing a product not intended for mass markets. Gives the ability to charge premium prices

Place- businesses serving niche markets are often more careful when selecting distribution channels for their products, networks of exclusive dealers are commonly used

Promotion- strategies to promote products in global niches need to be more targeted than in mass market promotion. Consideration has to be given for the language and cultural differences that exist between countries

15

Explain cultural factors

Include beliefs, moral values, traditions, language and laws held by a country

16

Explain social factors

Include lifestyle, religion, economic wealth, family structures, education and political systems held by a country

17

Define ethnocentrism

Is the tendency of people to view their own cultures, ethics and norms as superior

18

Define a high context cultures

Are cultures, including much of the Middle East , Asia, Africa and South America, that are relational, intuitive and contemplative. People in these cultures emphasise interpersonal relationships and developing trust is an important first step in any business transactions. Negotiations are slow and ritualistic

19

Define a low context culture

Are cultures, including North America and much of Europe, that are direct and value expertise and performance. People in these cultures aim for negotiations as efficient as possible. Agreements are specific with a legalistic contract.

20

Explain cultural differences as a factor which effects international business

Exemplification

Each step in conducting business needs to be carefully prepared for and considered, to take into account differences and build trust. Firms need to think about how they negotiate and communicate with people from other cultures.

For example, in Vietnam it is important that the two negotiating firms exchange business cards

21

Explain language differences as a factor affecting international business

Understanding other languages makes communication easier and helps to cement relationships. Over reliance on one language is also risky, it may lead to miscommunication and less sensitivity towards other cultures.

22

Explain unintended meanings as a factor affecting international business

Exemplification

Gestures common in one region may have different meanings in other religions and cultures.

The thumbs up gesture meaning well done is considered offensive in Australia or the Middle East

23

Explain differing tastes as a factor effecting international business

Depending on the product and country there may be a need for adaptions. Religious beliefs and legal requirements mean businesses need to adapt sufficiently to gain a market share.

For example, Pringles have had additives removed from the US ingredients list to be able to be sold in the UK

24

Explain inappropriate branding and promotion as a factor affecting international business

There are many accounts of mistakes involving language, mistranslations and unintended meanings when a businesses operates abroad . The cultural norms of an audience is key when creating a marketing campaign in order for it to be successful