3.3.1 responding to global demand Flashcards
When is a common marketing strategy for all operations across the globe most effective?
When firms have similar expectations from every country they operate in.
How does McDonald’s adapt their marketing strategies in the Indian market?
They do not use beef in their burgers since most of the population does not eat beef.
What is an glocalisation?
Adapting your products in some ways to meet the needs of different countries/markets.
What is an ethnocentric approach?
Means nothing changes, they see foreign markets as identical to domestic ones.
What is the benefit of an ethnocentric approach?
Economies of scale can be maximised.
What is the negative of an ethnocentric approach?
May risk losing sales as marketing mix not orientated to individual markets.
What is a polycentric approach?
There is a unique marketing mix for each market they operate in to suit market needs.
What is the benefit of a polycentric approach?
Increases sales on a local level but often at expense of profit.
What is a geocentric approach?
A mixed approach, some elements are managed globally whilst some are localised. e.g pricing strategies change
What are elements of a business that they might change to localise? [7]
- Brand name
- Advertising
- Products
- Distribution Methods
- Pricing Strategies
- Sales Incentives
- Working Practices
Why is a polycentric approach most appropriate in developed countries?
Because highly skilled staff can be employed.
