4.3

Question 1

Define Glocalisation

Answer 1

Where businesses aim to reach customers globally while taking into account consideration of local market needs.

Question 2

What are the 3 different approaches to global marketing?

Answer 2

-Ethnocentric
-Polycentric
-Geocentric

Question 3

What is Ethnocentric marketing?

Answer 3

Assuming what works in home market will work in international markets, no changes to products or marketing

Question 4

What is Polycentric marketing?

Answer 4

Recognises that every market is different. Tailors product to local needs of each market.

Question 5

What is Geocentric marketing?

Answer 5

Utilises of benefits of standardised products but also tailors products to meet needs of local markets overseas while maintaining a consistent brand image eg Mcdonalds

Question 6

Advantages of ethnocentric marketing?

Answer 6

-Economies of scale, standardised product and produced on a large scale.
-Lower costs, no investment into product development to adapt product for different markets.

Question 7

Disadvantages of ethnocentric marketing?

Answer 7

-Potential loss of sales as product isn’t tailored to oversea needs and wants.
-Can lead to cultural insensitivity and may not resonate with local customers.

Question 8

Advantages of Polycentric marketing?

Answer 8

-Increased sales as product is tailored to customers.
-Helps develop brand loyalty in oversea markets.

Question 9

Disadvantages of Polycentric marketing?

Answer 9

-Product development to adapt products may increase average unit cost.
-Additional costs of market research

Question 10

Advantages of Geocentric marketing?

Answer 10

-Tailoring products to local needs results in higher sales
-Helps develop brand loyalty in oversea markets

Question 11

Disadvantages of Geocentric marketing?

Answer 11

-Higher costs of product development and marketing

Question 12

Define Global Niche Market?

Answer 12

Small segments if the global market that are characterised by unique and specific needs

Question 13

Market Penetration and global markets

Answer 13

-Existing products to existing markets
-Carries least risk as customers may already be familiar with the business.

Question 14

Market Development and global markets

Answer 14

-Existing products into new markets
-Businesses may have to adapt products to meet needs of customers in global markets
-Carries more risk, customers might not understand the product.

Question 15

Product Development and global markets

Answer 15

-New product existing market
-Requires market research to identify wants and needs and adapt the marketing mix to ensure that the product resonates with local consumers.

Question 16

Diversification and global markets

Answer 16

-New product into new markets
-High risk due to limited knowledge about the market
-Requires deep understanding of the local market conditions and consumer behaviour to ensure new product & market are a good fit for the business.

Question 17

Features of Global Niche Markets

Answer 17

-Customer service
-Innovation
-Prioritising profit over market share
-Expertise in product area
-Emphasis on quality

Question 18

Social/Cultural Factors: Cultural differences

Answer 18

Need to understand cultural differences in areas such a values, beliefs, customers and adapt marketing strategies accoridingly.

Question 19

Social/Cultural Factors: Different tastes

Answer 19

Must ensure products and services are adapted to meet local preferences

Question 20

Social/Cultural Factors: Language

Answer 20

Must ensure marketing messages are translated accurately and appropriately

Question 21

Social/Cultural Factors: Unintended meanings

Answer 21

Can arise when businesses use images, symbols, or language that have different connotations in different cultures

Question 22

Social/Cultural Factors: Inaccurate translations

Answer 22

Can lead to serious consequences eg loss of credibility, legal implications, and damage to brand reputation.