4.3.1 - MARKETING Flashcards
What is a GLOBAL MARKETING STRATEGY?
- means a BUSINESS DOESN’T DIFFERENTIATE it’s Products BETWEEN COUTRIES
- the SAME PRODUCT is SOLD in MANY COUTNRIES with Some Fine Tuning of the Marketing Mix (4 p’s)
- In Global Marketing ,Promotional Message May be the Same Worldwide . Leading to Reduced Average Costs, EOS the Only Difference might be that Sales Incentive may Vary in Different Countries
What are 3 ADVANTAGES of GLOBAL MARKETING STRATERGY?
- EOS can be ACHIEVED in BOTH PRODUCTION and DISTRIBUTION -> means LOWER Than Average MARKETING COSTS
- POWER in the MARKET As the BRAND is KNOWN
- Consistently in Brand Image
What are 3 DISADVANTAGES of GLOBAL MARKETING STRATEGY
- DIFFERENCES in CONSUMER NEEDS, WANTS and Usage Patterns For PRODUCTS
- DIFFERENCES in CONSUMER RESPONSE to MARKETING MIX Elements
- DIFFERENCES in BRAND and PRODUCT DEVELOPMENT and the COMPETITIVE ENVIRONMENT
What is GLOCALISATION?
COMBINATION of GLOBALISATION & LOCALISATION - USED to DESCRIBE PRODUCTS and SERVICES that are Both DEVELOPED and SOLD to GLOBAL CUSTOMERS but DESIGNED so They SUIT the NEEDS of LOCAL MARKETS
Explain GLOCALISATION and the LOCAL MARKET
- Glocalisation businesses are AWARE of the IMPORTANCE of Combining RELEVANT and TRANSFERABLE PRODUCTS with the HERITAGE and AUTHENICTY of LOCAL IDENTITIES
- PRODUCTS or SERVICES are DESIGNED to BENEFIT a LOCAL MARKET while at the SAME TIME being DEVELOPED and DISTRIUBUTED on a GLOBAL LEVEL
What are the 3 DIFFERENT APPROACH To GLOBAL MARKETING (PEG)
- POLYCENTRIC
- ETHNOCENTRIC
- GEOCENTRIC
Explain the POLYCENTIC Appraoch to GLOBAL MARKETING
- INTERNATIONAL APPROACH
- ADAPTING the MARKETING MIX To EACH MARKET to APPEAL to LOCAL CUSTOMERS to MAXIMISE REVENUE/SALES
1 ADVANATGE and 2 DISADVANTAGES of POLYCENTRIC Apporach ?
+ TARGETING Products FOR DIFFERENT MARKETS -> HIGHER SALES
- HIGHER COST Of DEVELOPMENT
- DIFFICULT to COMPETE With ESTABLLISHED LOCAL BRANDS
Explain the ETHNOCENTRIC Approach to GLOBAL MARKETING
- STANDARDS the PRODUCT For ALL MARKETS to KEEP COSTS LOW
- FOREIGN OPERATIONS are SUBORDINATE to DOMESTIC MARKETS
- PRODUCTS Sold WITHOUT ADAPTION
2 ADVANTAGES and 2 DISADVANTAGES of ETHNOCENTRIC APPROACH
+ LOWER COST of DEVELOPMENT and PRODUCTION
+ EOS
- PRODUCT MAY NOT SELL WELL
- DOESN’T CONSIDER NATIONAL/CULTURAL DIFFERENCES
Explain the GEOCENTRIC Approach to GLOBAL MARKETING
- MIXTURE of POLYCENTRIC & ETHNOCENTRIC
- can GET EOS but CATER for NEEDS of INDIVIDUAL MARKETS to MAXIMISE SALES
- BRANDING may be DONE on GLOBAL BASIS - WORLWIDE APPROACH
- GLOBAL MNC’s - have Manufacturing and Processing Facilities Around the World to Seerve the Regional and National Markets
1 ADVANTAGE & 1 DISADVANTAGE of GEOCENTRIC Apporach
+ TAILORING PRODUCT to LOCAL TASTES and NEEDS -> HIGHER SALES
- HIGHER COST of PRODUCT DEVELOPMENT
What is the STANDARSISED & ADAPTED to GLOBAL MARKETS of 4P - PRODUCT
STANDARDISED : TRAVEL, INTERNET world is GETTING EASIER to MARKET a PRODUCT That’s GLOBALLY KNOWN
ADAPTED : COCA COLA makes it’s PRODUCTS SWEETER for SOME MARKETS to Consider The LOCAL TASTES
What is the STANDARSISED & ADAPTED to GLOBAL MARKETS of 4P - PLACE
STANDARSIDED : DISTRIBUTION in NATIONAL MARKETS will INVOLVE GOODS being MOVED in a CHAIN : Manufacturer -> Wholesaler -> Retailer -> Consumer
ADAPTED : In OVERSEAS MARKET -> MORE PARTIES INVOLVED as the Gooods need to be Moved Around a Foreign Market where Business Practices will be Different to National Markets
What is the STANDARSISED & ADAPTED to GLOBAL MARKETS of 4P - PRICE
STANDARDISED : Setting INTERNATIONAL PRICES is very COMPLEX -> DUE to DIFFERENCES in DISPOSABLE INCOME Of POPULATION
ADAPTED : BUSINESS need to CONSIDER FACTORS like : - COST of TRANSPORT Tarrifs , IMPORT DUTIES, EXCHANGE RATE FLUCTIATIONS, General ECONOMIC SITAUTION Of COUNTRY
