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Business > 4.3 > Flashcards

4.3 Flashcards

1
Q

Global marketing

A

The process of adjusting the marketing strategies of your company to adapt to the conditions of other countries.

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2
Q

3 marketing approaches

A
  • Ethnocentric
  • Polycentric
  • Geocentric
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3
Q

Ethnocentric marketing

A
  • Standardise the product for all markets to keep costs low (no adaptation)
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4
Q

Positives and negative of ethnocentric marketing

A

+ Economies of scale
+ Creates distinctive brand
+ Highlights USP
+ Enough consumers (don’t need to adapt)
- Has to be consistent
- Might not suit all tastes
- Political events may make products unpopular
- Ignoring cultural differences may mean loss of sales

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5
Q

Polycentric marketing

A

Adapt to each market to appeal to local customers to maximise revenue

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6
Q

Geocentric marketing

A

A mixture of ethnocentric and polycentric to create a global brand

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7
Q

Pros of polycentric marketing

A
  • Markets are unique and need to be addressed in different ways
  • There are big differences in cultural e.g. food products
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8
Q

Cons of polycentric marketing

A
  • Economies of scale will be lower
  • Higher prices due to investment in research for foreign markets
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9
Q

Pros with geocentric marketing

A
  • ‘global consumers’ with similar tastes can be targeted
  • Firm is multinational that can operate across te world
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10
Q

Cons of geocentric marketing

A
  • Requires large investment
  • Advertising and promotion needs to ignore differences in culture
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11
Q

Glocalisation

A
  • Combo of ‘globalisation’ and ‘localisation’
  • Used to describe products/services that are both developed and sold to global customers but designed so that they suit the needs of local markets
  • Think global and act local to personalise marketing
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12
Q

Examples of cultural differences

A
  • Time differences
  • How to greet someone when meeting
  • Cultural meaning of different colours
  • Holidays: different time of year
  • Language barriers
  • Local knowledge
  • Sense of humour
  • Body language
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13
Q

What is culture?

A

The dominant set of behaviours, values, beliefs, and thinking patterns we learn as part of society

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14
Q

3 Reasons encouraging you to adapt your products

A
  • Laws for your products (e.g. changing ingredients, label, safety features)
  • The competition
  • Cultural differences
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15
Q

Advantages of adapting marketing

A
  • Respect local culture
  • Improved local brand image
  • Advertising will be more effective
  • Low barriers to acceptance
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16
Q

Disadvantaes of adapting the marketing

A
  • Lower economies of scale
  • Higher costs
  • Requires detailed market research
  • Doesn’t allow a single coherent global image
17
Q

Market penetration

A
  • Targets same customer base in its current global markets
  • Looks at EPG marketing approach and decide where and how to invest
18
Q

Market development

A
  • Ad markets grow & disposable incomes increase (more attractive for global businesses)
19
Q

Product development

A
  • Take into account the needs of global and international markets
  • Spend billions on R&D to innovate and bring out new products (especially when old products are in decline/mature)
20
Q

Diversification

A
  • Risky strategy (often takeovers & mergers)
  • New businesses with more growth potential can help the parent company continue to perform & grow
  • Usually when primary business has grown as much as possible, diversification is considered
21
Q

Advantages of Ansoff’s matrix

A
  • Simplicity - gives a business 4 strategies to choose from
  • Shows all possible ways to increase sales
  • Analyses risk - by showing how risky each option is
22
Q

Disadvantages of Ansoff’s matrix

A
  • Competition is ignored so you don’t see the strategy other businesses are following
  • Doesn’t consider the costs and benefits of each option
  • Difficult to predict
23
Q

Global niche market

A
  • A very small market in each country but the combination of all the countries together make enough demand to make the business profitable
  • Highly specialised & characterised by very loyal customers & premium prices
24
Q

Why target global market niches

A
  • Technology can be used to make small batches of products
  • Selling a unique product or service to a niche group of customers can be highly profitable
  • Niches can be stepping stones to a mass market
25
Q

Advantages of global niche market

A
  • There is less competition and greater customer loyalty in niche markets
  • Prices are likely to be higher and therefore profits may be greater
  • Risk may be reduced as sales are spread across different countries
  • Social media allows brands to be promoted worldwide
26
Q

Disadvantages of selling in a global market niche

A
  • Some of the possible global economies of scale may not be achievable as each market will need individual attention
  • Co-ordination and communications may be more difficult across differing brands and markets
  • Some products may require unique ingredients or production techniques that increase costs
  • Cultural differences may impact on the ability of the firm to reach its taget customers

Business (20 decks)

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