4.3 Flashcards
Define global marketing strategy and sruff
Global marketing strategy is the process of planning, producing, placing and promoting a business’s product or service to the global market
Global Marketing Strategy
A standardised approach: selling the same product and using the same marketing strategy across different countries.
Benefits: cost savings, brand consistency, economies of scale.
Define glocalisation
Glocalisation is when a business develops a global brand or product but adapts it to suit local markets, cultures, or consumer preferences.
Global Localisation (Glocalisation)
A blend of global strategy and local adaptation.
Businesses adapt products and marketing to suit local tastes, cultures, and preferences.
Different Marketing Approaches
-Domestic/ethnocentric
-Mixed/geocentric
-International/polycentric
Define domestic/enthocentric and adv and dis
-Businesses see the domestic market and foreign markets as very similar eg Apple
ADV
- 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
DIS
- 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
Define poly centric/international and adv and dis
-Businesses adapt their marketing strategy by tailoring their products to the local market
-The company treats each country as a unique market and develops a customised marketing mix for each market eg Kitkat
ADV
- 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
DIS
- 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
Define geocentric/mixed and adv and dis
-This strategy is a mix of the polycentric and ethnocentric approach
-This 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 E.g. McDonald’s
ADV
-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
DIS
-There will be costs associated with the product development and menu changes required to meet the needs of the local market
Adapting the Marketing Mix to Global Markets
Product – May be standardised or adapted (e.g., taste, design, language), they will take an ethnocentric, polycentric or geocentric approach
Price – Adjusted for local income levels, taxes, and competition, state of economy,stage in product life cycle
Place – Different distribution channels may be used (e.g., e-commerce vs. retail stores).
Promotion – Marketing messages might change to suit cultural norms or languages.
Ansoff’s Matrix in Global Context:
Market Penetration – Selling more of the same product in existing global markets.
Product Development – Creating new products for existing international markets.
Market Development – Entering new geographic markets with existing products.
Diversification – New products in new markets (most risky).
Define cultural diversity and its importance in marketing
Cultural diversity-Recognising that people around the world have different cultures, interests, languages, beliefs, and values.
Importance in marketing:
Businesses need to adapt their products, messaging, and approach to respect and appeal to these differences.
Define global niche markets and features of it
Global niche markets are small segments of the global market that are characterised by unique and specific needs and preferences
Features of global niche markets
-Clearly defined customer base with specific needs.
-High customer loyalty due to tailored products/services.
-Often premium pricing because of specialised value.
-Requires deep understanding of customer preferences in each region.
-Good customer service
-Emphasis on quality
Adapting the Marketing Mix to suit Global Niches
Product
>Highly customised to meet the specific needs of niche buyers.
>Focus on quality, uniqueness, and premium service
-Price
>Often premium pricing to reflect value, quality, or exclusivity.
>Needs to reflect local affordability and perceived value.
-Place
>Narrow range of channels and using specialist agents and leaders to maintain high quality
-Promotion
>targerting customers properly(tailored ) and make product appear more exclusive
Cultural and social barriers to consider
-Cultural differences-Different beliefs, customs, traditions, and values between countries. Eg behaviour,greetings,ect
-Different tastes
-Language differences= can cause misunderstanding and confusion=reputation can be negative= increased costs to translate
-Unintended Meanings-Words, symbols, or gestures may have different meanings across cultures.
-Inappropriate or inaccurate translations= can lead to serious consequences for businesses, including loss of credibility, legal implications, and damage to brand reputation
-Inappropriate Branding and Promotion-Ads, imagery, or product names that ignore cultural norms can lead to boycotts or legal issues.
