3.2. Globalisation and Global Marketing

Question 1

What is marketing?

Answer 1

The process of promoting and selling goods or services.

Question 2

Why does marketing need to be adapted to regional markets?

Answer 2

Different populations still have different laws and cultural attitudes

Question 3

What is global marketing?

Answer 3

Involves treating the world as one single market -> using one marketing strategy to advertise a product to customers all over the world

Question 4

How has marketing become more global?

Answer 4

• Many products are sold all over the world, rather than just in the production company.
• Global marketing can create global brand awareness -> logo/ slogan
• Global marketing gives economies of scale ->cheaper to have 1 marketing campaign for the whole world, rather than having a different campaign for every country.

Question 5

How much revenue does coca cola generate per year?

Answer 5

$45 bn

Question 6

How many countries do coca cola sell in?

Answer 6

200

Question 7

How has coca cola achieved successful brand awareness?

Answer 7

• Instantly recognisable branding/ logo that translates to suit local language
• Close links to festive celebrations across Europe and USA
• ‘Taste the feeling’ campaign -> linking product to positivity
• Innovate marketing campaigns which connect to buyers
• Considered a brand, not just a product -> people associate it with many things beside a drink
• A hugely successful core product with a large number of variations to suit individual markets
• Hugely successful global advertising campaigns costing $41 bn per year
• Adverts focus on happiness, friendship and relaxation associated with drinking the product.

Question 8

What are the positive economic impacts of coca cola?

Answer 8

• Massive employment opps directly and indirectly in related industries
• Franchise operation means that many local bottlers profit from sale which supports the local economy directly and indirectly
• Investment in new plats n expanding markets such as Asia and North Africa e.g. US $90 million R&D centre in Shanghai
• Majority of profits are returned to shareholders in USA
• The coca cola foundation awards grants to companies around the world to support social development and environmental sustainability.

Question 9

What are the negative economic impacts of coca cola?

Answer 9

• Long hours for little pay (in poor working conditions in some bottling plants)

Question 10

What are the positive social impacts of coca cola?

Answer 10

• Training and education programmes e.g. a global commitment to enable empowerment of 5 million female entrepreneurs by 2020 -> the 5 by 20 programme
• Uses marketing network to increase awareness of recycling and distribution network for disaster relief
• Millions have been spent countering the links to obesity -> coca cola spent $4.86 million setting up the European Hydration institute that recommends people consume sport and soft drinks

Question 11

What are the negative social impacts of coca cola?

Answer 11

• Workers are encouraged to abandon union membership in some LICs
• Vulnerability of bottling plants to the effects of top-down decisions making in ‘remote’ Atlanta (the HQ of coca cola)
• Pesticide residue identified in some coca cola products - 30x the amount of pesticide residue considered acceptable by the EU
• Harsh working conditions in some bottling plants

Question 12

What are the positive environmental impacts of coca cola?

Answer 12

• Initiates sustainable agricultural schemes e.g constructing rainwater harvesting system at tea suppliers in China
• Replenishes the water it uses by funding local projects to protect watersheds

Question 13

What are the negative environmental impacts of coca cola?

Answer 13

• Water pollution
• Exhaustion of local water supplies (in 2012 coca cola used more water than around 25% of the world’s population)