Global Marketing - 4.3 Flashcards Preview

Business Studies Theme 4 - Global Business > Global Marketing - 4.3 > Flashcards

Flashcards in Global Marketing - 4.3 Deck (39):
1

what is a global marketing strategy?

The adaptation of a marketing strategy to target all markets on a worldwide scale

2

What are 5 benefits of having a global marketing strategy?

1. marketing economies of scale
2. large sales volume - securing the first mover advantage
3. strong consistent brand message/ identity
4. more efficient use of resources
5. EOS in production and distribution

3

What are 3 drawbacks of having a global marketing strategy?

1. Not specific to other international target markets - where the culture is different
2. the global market place is competitive - people can be loyal to domestic producers
3. differences in legal environment, some which may conflict with those of the market

4

What is the definition of glocalisation?

The adaptation of a global marketing strategy in order o meet requirements of local geographic markets

5

What are 5 benefits of glocalisation?

1. easier to compete with the domestic market
2. higher demand meets the needs of customers and target market
3. reduces the risk of failure
4. customers feel valued- consider their needs
5. distinguish yourself with USPs

6

what are 5 drawbacks of glocalisation?

1. heavy investment in market research - expensive
2. opportunity cost from money on research and development
3. not guaranteed to be successful
4. rate of return may not be quick enough
5. strong domestic competition - joint venture will help

7

how can the product part of the marketing mix be adapted to global markets? (4)

1. change formulation
2. change size
3. change packaging
4. change design

8

how can the promotion part of the marketing mix be adapted to global markets? (4)

1. change slogan
2. medium - tv/ radio/ billboards
3. marketing message - incorporate culture
4. amount of promotion

9

how can the price part of the marketing mix be adapted to global markets? (4)

1. reduce pricing or premium pricing
2. price elasticity ( availability of close substitutes)
3. cost of transport
4. tariffs/ import taxes

10

how can the place part of the marketing mix be adapted to global markets? (5)

1. proximity to transport links
2. use of local suppliers
3. undertake joint venture
4. change layout of stores
5. choice of location (add value)

11

in ansoffs matrix, what is an existing product in an existing market?

market penetration

12

in ansoffs matrix, what is an existing product in a new market?

market development

13

in ansoffs matrix, what is an new product in an existing market?

product development

14

in ansoffs matrix, what is an new product in a new market?

diversification

15

what are 3 approaches to market development?

1. new geographical markets
2. new distribution channels (e-commerce/ mail order)
3. different pricing policies to attract new customers in different segments

16

what is the definition of pure play?

a business which purely exists online

17

What is an EPG model?

framework that can be used to consider marketing approaches used by global firms

18

what is a home nation?

where the business originates

19

what is a host nation?

where the target market of the business is based

20

what is the definition of ethnocentricity (domestic)?

where the promotion of the product is undertaken based on the beliefs of the home nation of the business and is presented to the host nation as such

21

what is the definition of a geocentric approach (mixed)?

promotion of the product is undertaken based on global point of view. not based on the perspective of the home nation or host nation

22

what is the definition of a polycentric approach (international)?

promotion of the product is undertaken on the beliefs of the host nation

23

what is a con of ethnocentricity?

1. could actually restrict promotional prospects - countries may feel offended that they aren't tailoring it to them

24

what is a con of a polycentric approach?

could make the brand identity confusing

25

what is the definition of price discrimination?

charging different people different prices for the same product or service

26

what factors influence the choice of and success of different approaches to the global market? (5)

1. target market / demographics
2. brand identity strengths - reduces price elasticity
3. research and development (funds/ capacity to undertake)
4. location - how similar home nation and host nation is
5. product being sold

27

what is the global niche market definition?

markets where customers in many countries have specific needs and wants that are not satisfied by mass market products or services

28

what are 6 features of global niche markets?

1. very small market in each country, but the combination of countries make enough demand to make a business profitable
2. subset of a global market
3. highly specialised and characterised by very loyal customers and premium prices
4. reduced price elasticity
5. raise barriers to entry
6. added value

29

how do global niche markets develop? (6)

1. cultural differences
2. specialist expertise developed
3. different adoption of technology
4. premium/ luxury demand
5. distinctive branding
6. specialist distribution

30

what is the definition of cultural diversity?

range of different societies or people of different origins, religions and traditions all living and interacting together

31

what are 6 factors which influence cultural diversity?

1. economic development (e.g. disposable incomes, health, education)
2. language
3. history and traditions
4. weather and climate
5. legal system
6. attitudes to 'outsiders'

32

what are 4 benefits of a global niche?

1. employ premium price strategy
2. less competition from mass market producers
3. larger potential demand - lower costs and are spread
4. customer loyalty - distinct brand identity

33

what are 4 negatives of a global niche?

1. products could be more bespoke - add costs (can't be spent on R&D and market research)
2. could accrue additional marketing costs
3. economies of scale may not be achievable
4. slight degree of risk

34

what is definition of aspirational pricing?

ignoring costs and competitors in pitching a price so high as to tempt those who wish to show off their wealth

35

what are 6 cultural/ social factors which businesses need to think about before expanding into global markets?

1. cultural differences
2. different tastes
3. language
4. unintended meanings
5. inappropriate/ inaccurate translations
6. inappropriate branding and promotion

36

what are 6 cultural differences which may have impacts when doing business?

1. gestures
2. language
3. religion/ faiths
4. time zones
5. traditional customs
6. body language

37

what is the definition of culture?

dominant set of behaviours, values, beliefs and thinking patterns we learn as we grow and develop in our social groups

38

what happens in high context communication needs? (e.g. in china) (4)

1. establish social trust first
2. value personal relationships and goodwill
3. negotiations slow and ritualistic
4. agreement by general trust

39

what happens in low context communication needs? (e.g. UK/ Germany) (4)

1. get down to business first
2. value expertise and performance
3. agreement by specific legalistic contract
4. negotiations as efficient as possible