Theme 4 - 1.1 Global Marketing

Question 1

What is an economy ?

Answer 1

A large set of inter-related production and consumption activities which decide how scarce resources are allocated.

Question 2

What are the main indicators of growth for an economy ?

Answer 2

• GDP.
• Human development index.

Question 3

What is global marketing ?

Answer 3

Where a product is not differentiated and sold the same internationally (standardised)

Question 4

What is Glocalisation ?

Answer 4

Where products are differentiated to adapt to local cultures.

Question 5

What are the benefits the global marketing ?

Answer 5

• Standardised goods allow for economies of scale lead to reduced marketing costs.
• Firms likely already have a strong brand image, allowing them to compete more easily.

Question 6

What are the disadvantages to global marketing ?

Answer 6

• Product may not be suited for consumers wants and needs.
• Difference in legal environment.
• Differences in competitive environment.

Question 7

What are the advantages to “glocalistation” ?

Answer 7

• May be able to compete better as products are specifically designed to meet customer wants and needs ===> increased demand for differentiated product.
• MNCs may get access to other markets.

Question 8

What are the disadvantages of “glocalisation” ?

Answer 8

• MNC’s cant benefit from economies of scale.
• expensive as products have to be adapted local markets. (Research and Development).

Question 9

What is a polycentric approach ?

Answer 9

Products are adapted to local wants and needs.

Question 10

What is an ethnocentric approach (Global marketing) ?

Answer 10

Products are standardised in all markets.

Question 11

What is geocentric approach ?

Answer 11

A combination of polycentric and ethnocentric approaches. They will promote the global brand name but adapt to local needs.