4.3 Flashcards
what is global marketing
the process of adjusting the marketing strategies of your business to adapt to the conditions of other countries
what is ethnocentric marketing
standardize the product for all for all markets
believes that success will translate to all countries
what are the advantages and disadvantages of ethnocentric
+/ economies of sale
create distinctive brand association
promotes USP of products
there are enough customers in different countries that products don’t need to be adapted
-/ must stay consistent
doesn’t suit tastes in all markets
political barriers
ignoring cultures may reduce sales
what is polycentric marketing
adapt to each market to appeal to local customers
each subsidiary business should develop its own marketing strategy according to the needs of that market
what are the advantages and disadvantages of polycentric marketing
+/ markets are unique and need to be addressed in different ways in order to increase sales
differences in culture
-/ economies of scale is lower
higher prices due to investment into research of foreign markets
what is geocentric marketing
a mixture of the two to create a global brand
branding done on a global scale but adapt marketing preferences to different cultures
what are the advantages and disadvantages of geocentric marketing
+/ global customers with similar tastes can be targeted
firm is multinational
-/ requires large investment into advertising & promotion
may ignore some cultural differences
define globalization
process of deeper econmomic intergration between countries
what is a dynamic market
constantly and rapidly changing market
what is a mass market
a large general market with no specific wants & needs
what is global niche marketing
targeting small markets in multiple countries, highly specialized and characterized by local customers
why do businesses target global niche markets
technology can be used to make small batches of products
can be highly profitable
can be a stepping stone to mass markets
what are the advantages and disadvantages of targeting global niche markets
+/ charge premium prices
customer loyalty
good reputation
less competition
reduce risk, spread across different countries
social media allows worldwide promotion
-/ no economies of scale
high production costs
requires a lot of market research
co-ordination & communication may be difficult
may not be a repeat buy product
what are the 4 marketing mix and give examples for each
product - material, quality, size, colour
promotion - strength of brand name, advertising
price - must reflect quality & disposable income levels
place - distribution channels, red tape
define culture
the dominant set of behaviors, values, beliefs and thinking patterns individuals learn as part of their society
