Marketing Flashcards
What are the two approaches to marketing in a global marketplace?
Global marketing
glocalisation
Explain global marketing strategy.
A global marketing strategy means that a business doesn’t differentiate its products or marketing between countries.
The same product is sold in many countries with some fine tuning of the product price, promotion etc.
Wat is a global brand?
A global brand views the world as a global marketplace and creates products that will suit a world audience
Microsoft is the ideal global product, all it needs to do is adapt the languages, adjust the cost for the region and fine tune the marketing to suit the area
Explain global marketing decisions.
In global marketing the promotional message may be the same all over the world leading to reduced average marketing costs, economies of scale
The only differences might be that sales incentives may vary in different countries
What are the advantages of global marketing?
Economies of scale can be achieved in both production and distribution
This will mean lower than average marketing costs
Power in the market as the brand is known
Consistency in brand image
Ability to leverage good ideas quickly and efficiently
Uniformity of marketing practices
What are the disadvantages to global marketing.
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
Differences in the legal environment, some of which may conflict with those of the market
Define the term glocalisation.
Glocalisation is a combination of the words ‘globalisation’ and ‘localisation’ and is used to describe products and services that are both developed and sold to global customers but designed so that they suit the needs of local markets.
Explain glocalisation and the local market.
Glocalisation businesses are aware of the importance of combining relevant, transferrable products with the heritage and authenticity of local identities
Products or services are designed to benefit a local market while at the same time being developed and distributed on a global level.
What is the three approach theory to global marketing?
The decision whether products sold in a new international market should be adapted or standardised.
To what extent can a MNC design and market a truly global product.
Polycentric – adapt to each market to appeal to local customers to maximise revenue
Ethnocentric – standardise the product for all markets to keep costs low
Geocentric – a mixture of the two
Explain the polycentric approach to global marketing.
The international approach is the polycentric model – adapting the marketing mix to maximise sales in different countries
Each host country is unique
Each subsidiary business in each country should develop its own marketing strategy
Explain the ethnocentric approach to global marketing.
A business which believes that a success story in one country can translate to all other countries in which it operates
Foreign operations are subordinate to domestic markets
Products sold without adaptation
Ethnocentrism is the belief of superiority is one’s personal ethnic group
Explain the geocentric approach to global marketing.
Business can have some of the advantages of a standardised global approach to get economies of scale but cater for needs of individual markets to maximise sales
Branding may be done on a global basis
The businesses has a world wide approach to marketing and its operations become global
A global MNC will have manufacturing and processing facilities around the world to serve the various regional and national markets through a complicated but well co-ordinated system of distribution networks
Explain the adaptation of the 4 Ps to global markets.
Product- international standardisation allows people to access the same products all over the world. Some are adapted, e.g. coca cola is less sweet in Canada.
Place- distribution may be standardised in national markets but adapted in overseas markets where they need more parties involved
Price- an MNC will try to gain the same price overseas however they will need to consider the cost of transport and personal disposal incomes of the target market.
Promotion- standardised marketing reduces costs and ensures that a brand is known world-wide however marketing messages may have to be adapted because of language, political climate and religious practices.
