4.3

Question 1

glocalistion

Answer 1

a strategy where businesses aim to reach customers globally and also take into consideration the needs of the local market

Question 2

what is a Domestic/Ethnocentric Approach

Answer 2

no changes to the products for overseas customers and marketing of the product will be the same

Question 3

advantages of Domestic/Ethnocentric Approach

Answer 3

Businesses can benefit from economies of scale as the product is standardised and produced on a large scale

Costs are also lower as there is no investment into product development to adapt products for different markets

Question 4

Disadvantages of Domestic/Ethnocentric Approach

Answer 4

The business could potentially lose sales as the product is not tailored to the needs and wants of markets overseas

This approach can lead to cultural insensitivity and may not resonate with local customers in other countries

Question 5

what is a Polycentric/International approach

Answer 5

Businesses adapt their marketing strategy by tailoring their products to the local market

Question 6

advantages of a polycentric/ international approach

Answer 6

Sales are likely to increase as the product is tailored to meet the needs of customers

This helps to develop brand loyalty in overseas markets

Question 7

disadvantages of polycentric / international approach

Answer 7

Product development to adapt the product may increase average unit costs

There will also be additional costs in market research to find out about the market

Question 8

what is a geocentric / mixed approach

Answer 8

approach utilises the benefits of standardised products but also tailors products to meet the needs of local markets overseas while maintaining a consistent brand image across markets (eg McDonald’s do not offer beef or pork in India due to religious reasons. However in the majority of western countries, McDonald’s has standardised products such as the Big Mac)

Question 9

The Advantages of the Geocentric Approach

Answer 9

Sales are likely to increase as the product is tailored to meet the needs of customers

This helps to develop brand loyalty in overseas markets

Question 10

The Disadvantages of the Geocentric Approach

Answer 10

There will be costs associated with the product development and menu changes required to meet the needs of the local market

Question 11

what are the four ps of the marketing mix

Answer 11

product, place, promotion, place

Question 12

adapting Place to the global market

Answer 12

Businesses have to identify the best channel of distribution to get the product/service to the customer in a particular market

They also need to consider the available technology as many transactions take place via e-commerce

Question 13

adapting Product to the global market

Answer 13

Businesses need to consider how much they should modify or adapt their products to meet new markets overseas

They need to consider if they will take an ethnocentric, polycentric or geocentric approach

Question 14

adapting price to the global market

Answer 14

When making pricing decisions, businesses must consider customer incomes, costs of production and taxes

They must also consider the stage of the product life cycle the product is at within that market

The state of the economy (recession or boom) will also impact the pricing strategy

Question 15

adapting promotion to the global market

Answer 15

Promotion needs to be adapted to meet language and cultural differences

Businesses must aim to choose the most effective method of promotion to promote products in that market

Question 16

What is ansoffs matrix?

Answer 16

Ansoff’s Matrix is a strategic planning tool that helps businesses identify potential growth opportunities by analysing their product and market strategies

The matrix consists of four growth strategies - market penetration, market development, product development, and diversification

Question 17

Market Penetration

Answer 17

existing products into existing markets

Carries the least risk - if a business already operates in a market and launches another product, customers are already familiar with the business

Question 18

Market Development

Answer 18

selling existing products to new markets

Businesses may have to adapt the product to meet the needs of customers in global markets who have different preferences

This strategy carries more risk as customers may not understand the product

Question 19

Diversification

Answer 19

new products for new markets

A high risk strategy as the business may have limited knowledge about the market

This strategy requires a deep understanding of local market conditions and consumer behaviour to ensure that the new product and market are a good fit for the business

Question 20

Product Development

Answer 20

introduce new products into existing markets

This requires market research to identify the target market’s needs and preferences, developing products that meet those needs, and adapting the marketing mix to ensure that the products resonate with local consumers

Question 21

Factors to Consider in Global Marketing

Answer 21

Cultural differences

Different tastes

Language

Unintended meanings

Inappropriate/Inaccurate translations

Inappropriate branding/promotion

Question 22

Cultural differences

Answer 22

Businesses need to understand cultural differences in areas such as values, beliefs, customs, and traditions, and adapt their marketing strategies accordingly

Question 23

Different tastes

Answer 23

Tastes and preferences vary greatly between cultures and regions

Businesses must ensure that their products/services are adapted to meet local preferences

Question 24

Language

Answer 24

Businesses must ensure that their marketing messages are translated accurately and appropriately

This involves understanding language nuances and idioms

E.g. When KFC entered the Chinese market, it translated its slogan “Finger-Lickin’ Good” into Chinese as “Eat Your Fingers Off”, which had negative connotations in the Chinese culture

Question 25

Unintended meanings

Answer 25

Unintended meanings can arise when businesses use images, symbols, or language that have different connotations in different cultures

E.g. The colour white symbolises purity and innocence in Western cultures, but it represents death and mourning in some Asian cultures

Question 26

Inappropriate/Inaccurate translations

Answer 26

Inappropriate or inaccurate translations can lead to serious consequences for businesses, including loss of credibility, legal implications, and damage to brand reputation

Businesses must use professional translation services and consult with local experts to ensure that their messages are accurately translated and culturally appropriate