3 Flashcards
Global marketing strategy
businesses don’t differentiate its products or marketing between countries
Global brands
A global brand views the world as a global marketplace and creates products that will suit a world audience
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
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
Advantages to 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
Glocalisation defined
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.
is a combination of the words ‘globalisation’ and ‘localisation’
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.
Different marketing approaches - PEG
The decision whetherproducts soldin 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
Polycenric
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
Ethnocentric
Products sold without adaptation
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
Geocentric
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
Standardised product
marketing globally means wherever you travel you will be able to to buy the same product
Adapted product
Coca-Cola makes its products sweeter for some markets to take account for local tastes
in Canada it has taken the decision to make it less sweeter bring it in line with other counties.
standardised location
Distribution in national markets such as the United Kingdom will probably involve goods being moved in a chain from the manufacturer to wholesalers and onto retailers for consumers to buy from.
Adapted location
In an overseas market there will be more parties involved because the goods need to be moved around a foreign market where business practices will be different to national markets.
For example agents might be used to sell products in other countries
standardised price
Setting international prices is very complex
It is unlikely that a MNC will attempt to gain the same price in Mexico or Brazil as it does in Germany or France due to the disposable income of the population
adapted price
Business needs to consider factors such as;
the cost of transporttariffs or
import duties
exchange rate fluctuations,
personal disposal incomes of the target market
the currency they want to be paid in
the general economic situation of the country and how this will influence pricing
Standardised Promotion
Standardised marketing can be used internationally
This type of marketing strategy conforms to work across different cultures and countries to promote a product
This reduces costs and ensures the brand is known world wide
Adapted promotion
Advertising messages in countries may have to be adapted because of language, political climate, cultural attitudes and religious practices.
market penetration (ansoff)
Market penetration on a global basis means selling more products to existing customers
Marketing teams may look to see if frequency of use or purchase can be increased
This is a very low risk strategy as the customers are already very loyal
product or service development
New product development in marketing can be critical to keep customers buying more
This strategy may be used to replace the normal product with a better one
Diversification
new product new market
Diversification is the most risky of the four strategies as it means providing new products for new markets
A business will do this in an attempt to move away from shrinking markets and into new more attractive markets
Market development
Market development means taking products that already exist and finding new global markets for them
This may mean moving into countries that have had trade liberalisation
Niche market defined
small specialised market which caters for a particular product or service
