4.1 Global Businesses Flashcards
What are the two types of global marketing strategies?
Global marketing - planning, producing, placing and promoting a business’s product or service to the global market
versus Glocalisation - aim to reach customers globally and also take into consideration the needs of the local market
What do businesses not have to do on global marketing?
Don’t have to differentiate, but can change price or promotion to suit the market
How do global brands view the world?
As a worldwide market place suit worldwide audience
What is the benefits of having a global marketing decisions?
What is the only difference?
Professional messages will be the same
reducing average marketing costs
leading to promotion economy is a scale
Sales incentives may vary
What are the 6 positives and 3 negatives of global marketing?
Positives
The economy of scale in production and distribution low as average marketing costs
power in market as brand is known - strengthens
consistency in brand image - good for globalisation gain competitive advantage
ability to leverage good ideas 💡
Good if you want to spread risks and grow
Negatives
different consumer needs and wants
Different consumer responses to mocking mixed elements
Different legal environment may have conflicts with those within the market
What made business be able to do if they meet local needs through glocalisation ?
Successfully penetrate into local markets
How may we adapt the marketing mix to global markets? (Place)
Place - identify the best distribution channel
- convenience
available technology as many transactions take place via e-commerce
How can we adapt the marketing mix’s product to global markets?
how much they should modify or adapt their products to meet new markets
They need to consider if they will take an ethnocentric, polycentric or geocentric approach
How can we adapt the marketing mix’s price to global markets?
Take into account customer incomes and cost of production and taxes
State of the economy - impact pricing strategy
and the product life-cycle of the product
How can we adapt the marketing mix’s promotion to global markets?
adapted to meet language and cultural differences
This is need to find the most effective method of promotion
Why would the Ansoff’s matrix be a good strategic planning for businesses going global?
Globalisation generates risk so we need to have the right growth strategy
Allows them penetrate global markets and achieve long-term success
what strategy should do if they go into existing global markets?
What may businesses have to do ?
Market penetration
- selling existing products to existing markets - Carries the least risk - business already operates in a market - customers are already familiar with the business
product development -
selling existing products to new markets
may have to adapt the product to meet the needs of customers in global markets - have different preferences
What are the two strategies under an of matrix that business should do when going into new global markets?
What kind of strategy is this And why?
What does this require?
Diversification
new products for new markets
A high risk strategy - limited knowledge about the market
requires a deep understanding of local market conditions and consumer behaviour to
Market development- new products into existing markets and identify needs and preferences
may have to adapt the marketing mix for local consumers
