4.3 Flashcards
Define Glocalisation
Where businesses aim to reach customers globally while taking into account consideration of local market needs.
What are the 3 different approaches to global marketing?
-Ethnocentric
-Polycentric
-Geocentric
What is Ethnocentric marketing?
Assuming what works in home market will work in international markets, no changes to products or marketing
What is Polycentric marketing?
Recognises that every market is different. Tailors product to local needs of each market.
What is Geocentric marketing?
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
Advantages of ethnocentric marketing?
-Economies of scale, standardised product and produced on a large scale.
-Lower costs, no investment into product development to adapt product for different markets.
Disadvantages of ethnocentric marketing?
-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.
Advantages of Polycentric marketing?
-Increased sales as product is tailored to customers.
-Helps develop brand loyalty in oversea markets.
Disadvantages of Polycentric marketing?
-Product development to adapt products may increase average unit cost.
-Additional costs of market research
Advantages of Geocentric marketing?
-Tailoring products to local needs results in higher sales
-Helps develop brand loyalty in oversea markets
Disadvantages of Geocentric marketing?
-Higher costs of product development and marketing
Define Global Niche Market?
Small segments if the global market that are characterised by unique and specific needs
Market Penetration and global markets
-Existing products to existing markets
-Carries least risk as customers may already be familiar with the business.
Market Development and global markets
-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.
Product Development and global markets
-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.
Diversification and global markets
-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.
Features of Global Niche Markets
-Customer service
-Innovation
-Prioritising profit over market share
-Expertise in product area
-Emphasis on quality
Social/Cultural Factors: Cultural differences
Need to understand cultural differences in areas such a values, beliefs, customers and adapt marketing strategies accoridingly.
Social/Cultural Factors: Different tastes
Must ensure products and services are adapted to meet local preferences
Social/Cultural Factors: Language
Must ensure marketing messages are translated accurately and appropriately
Social/Cultural Factors: Unintended meanings
Can arise when businesses use images, symbols, or language that have different connotations in different cultures
Social/Cultural Factors: Inaccurate translations
Can lead to serious consequences eg loss of credibility, legal implications, and damage to brand reputation.
