4.3 Flashcards
what is glocalisation
Adapting global products or services to meet the specific needs and preferences of local markets, while maintaining a global brand identity.
what is an ethnocentric approach (domestic)
- assumes what works in home markets will work in international markets
- Firms wont adapt their products to different markets
ethnocentric advantages
- ecnoonmies of sclae
- no development costs in adapting products
ethnocentric disadvantages
- may not sell well
- result wont appeal to new market
What is the polycentric approach (international)
- firms adapt their products ot local markets in which they plan to sell the orudct
- adjust marketing mix to just the local markets
Polycentric advantages and disadvantages
+ higher sales
- expensive - due to market research
what is the geocentric approach (mixed)
firms use a combination of both appproaches
Geocentric advantages and disadvantages
+ higher sales
- expensive
Bartlett and Ghoshal approach
the model examines the different approaches to managing a business that operates in several countries
What two key pressures does the Bartlett and Ghoshal approach highlight
- response to local market needs
- global intergration
B&G local responsiveness
- is the product adapted to meet local needs?
- do domestic (local) comepititors have an advantage based on their ability
B&G global intergration
- importance of standardisation of the product to operate efficiently
- is consistent global branding required to achieve international success?
4 strategies from the B&G model
- global
- transnational
- international
- multi-domestic
key features of the global strategy
- highly centralised - subsidiaries are weak
- Focus on efficiency, i.e. eos
- standardised products
- little sharing of expertise locally
- products designed for domestic markets
key features of the transnational strategy
- compelx to acheive
- aim to maximise local responsiveness but also gain benefits from global integration
- wide sharing of expertise
- staff move around the globe
key features of the international strategy
- aims to achieve efficiency by focusing on domestic activities
- international operations are managed centrally
-relatively little adaptation of local needs - global homogenised
key features of the multi-domestic strategy
- aims to maximise benefits of meeting local market needs through extensive customisation
- decision making - decentralised
- local businesses treated as separate businesses
- strategies for each country
how the marketing mix changes with globalisation
- price - income? wage rates? taxes?
- product - need to adapt and decide what approach to take, geocentric? polycnetric? ethnocentric?
- promotion - language idfffernences & cultures
- place - purchasing habits of local community
definition of ethnocentrism
tendency of people to view their own cultures, ethics and norms as superior
(to market effectively, businesses would want to overcome this)
Cultural differences that businesses need to consider
- language
- differing tastes
- inappropriate branding and promotion
communication/language in low-context cultures
(North America & Europe)
tend to say what they mean and this can be taken at face value. businesses get the task done before socialising
communication/language in low-context cultures
(North America & Europe)
tend to say what they mean and this can be taken at face value. businesses get the task done before socialising
communication/language in high-context cultures
(Arabic and asian communities)
These cultures rely on socialising and initial meetings to build trust and relationships
differing tastes as a consideration
some coutnries may need more adpatations to products
i.e. religion or legislation
inappropriate branding and promotion as a consideration
- language mistranslation and unintended meanings can lead to inappropriate branding and promotion
- Businesses need to ensure they research the culture and what is expected by their promotion and product
