THEME 4: SECTION 3 ( GLOBAL MARKETING) Flashcards
(16 cards)
Define GLOBAL LOCALISATION
Adapting marketing strategies between cultures.
Define GLOBAL MARKETING STRATEGY
strategythat encompasses countries from several different regions in the world and aims at co- ordinating a company’smarketingefforts in markets in these countries
What are the different approaches to global marketing?
- Ethnocentric marketing (no changes to adapt)
- Geocentric marketing (middle ground, changing where necessary but keeping other aspects)
- Polycentric Marketing (adapting and changing completely)
2 Advantages of an ETHNOCENTRIC approach
- Economies of scale
- Less costs on research and new promotions
2 Disadvantages of an ETHNOCENTRIC approach
- Could cause offence and ruin reputation
- Could decrease demand
2 ADVANTAGES of a POLYCENTRIC approach
- Increased demand as consumers specific needs and wants are met
- Possibly charge higher prices
2 Disadvantages of a POLYCENTRIC approach
- No economies of scale
- Expensive and could be ineffective if the research is not correct
2 Advantages of a GEOCENTRIC approach
- SOME economies of scale
- Easier to execute and control
2 Disadvantages of a GEOCENTRIC approach
- The costs of research and adaptation
- unclear which strategies should be used in new countries
How can each aspect of the marketing mix be adapted to fit a geocentric or polycentric approach?
- Products: making new products to fit the market or adapting it
- Price: ensuring it meets cultural norms
- Promotion: ensure it is done the right way, some countries prefer TV ADs etc
- Place: some places restrict selling specific things in places like supermarkets.
Define GLOBAL NICHE MARKET
= a specialised part of a global market. In one country its relatively small but over several they provide significant demand
What are the characteristics of a global niche market?
- customer loyalty is common
- innovative
- offering differentiated products
- deeply understanding customer needs
- extensive research to ensure accuracy
Why do GLOBAL NICHE MARKETS exist?
- Cultural diversity = Different cultural groups have needs, wants, values and interests which aren’t being met by global mass markets
- Or a cultural product may be too small in a single niche market in order to make profit, so the business expands into a global niche market.
What cultural and social factors should a business consider when marketing abroad?
- Cultural differences
- Different tastes
- Language
- Unintended meanings
- Inappropriate/inaccurate branding
- Accurate translations
2 disadvantages of being a GLOBAL NICHE MARKET
- Very risky
- No economies of scale due to such large amounts of differentiaiton
What are the features of a global niche market?
- clear focus
- know the target audience
- specialised in what they do
- able to charge higher prices due to differentiations
However. can have low-profit margins and high costs if not careful
