Flashcards in Global Marketing - 4.3 Deck (43):
what is a global marketing strategy?
The adaptation of a marketing strategy to target all markets on a worldwide scale
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
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
What is the definition of glocalisation?
The adaptation of a global marketing strategy in order o meet requirements of local geographic markets
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
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
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
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
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
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)
how can the product part of the marketing mix be standardised to global markets? (2)
1. easier to market product known globally
2. when people travel - assured the business is the same
how can the promotion part of the marketing mix be standardised to global markets? (2)
1. works across different cultures/ countries - promote a product
2. reduces cost and ensures brand is known worldwide
how can the price part of the marketing mix be standardised to global markets? (2)
1. setting international prices - can be complex
2. unlikely an MNC will attempt to gain same price in one country to home country (due to disposable income)
how can the place part of the marketing mix be standardised to global markets? (1)
1. distribution in uk from manufacturers > wholesalers > retailers
in ansoffs matrix, what is an existing product in an existing market?
in ansoffs matrix, what is an existing product in a new market?
in ansoffs matrix, what is an new product in an existing market?
in ansoffs matrix, what is an new product in a new market?
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
what is the definition of pure play?
a business which purely exists online
What is an EPG model?
framework that can be used to consider marketing approaches used by global firms
what is a home nation?
where the business originates
what is a host nation?
where the target market of the business is based
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
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
what is the definition of a polycentric approach (international)?
promotion of the product is undertaken on the beliefs of the host nation
what is a con of ethnocentricity?
1. could actually restrict promotional prospects - countries may feel offended that they aren't tailoring it to them
what is a con of a polycentric approach?
could make the brand identity confusing
what is the definition of price discrimination?
charging different people different prices for the same product or service
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
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
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
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
what is the definition of cultural diversity?
range of different societies or people of different origins, religions and traditions all living and interacting together
what are 6 factors which influence cultural diversity?
1. economic development (e.g. disposable incomes, health, education)
3. history and traditions
4. weather and climate
5. legal system
6. attitudes to 'outsiders'
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
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
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
what are 6 cultural/ social factors which businesses need to think about before expanding into global markets?
1. cultural differences
2. different tastes
4. unintended meanings
5. inappropriate/ inaccurate translations
6. inappropriate branding and promotion
what are 6 cultural differences which may have impacts when doing business?
3. religion/ faiths
4. time zones
5. traditional customs
6. body language
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
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