4.3 / 4.4 - Global Marketing Flashcards
Global marketing
- same product and strategy can be used in ALL markets
Implications of Global Marketing:
- production on large scale is cheaper menacing cheaper products sold
- smaller focused product range
- marketing campaign can be re used globally
- Time and money saved researching individual markets
- less time spent developing products for individual markets
Global localisation (Glocalisation)
When markets differ businesses need to plan marketing strategies that will fit individual market preferences
Implications of Glocalisation:
- sales likely to increase
- products tailored to locals tastes and preferences
- therefore turn over and profit increase ^
Negatives of Glocalisation:
- money due to average cost tends to be higher
- time costly due to added research
- wider product range which can be harder to manage rather than a smaller product range
- can’t fully exploit the economies of scale
Global Marketing Models:
- Ethnocentric
- Polycentric
- Geocentric
Ethnocentric
marketing approach based on the perspective of company’s culture. Believe what was success in the domestic market will also be successful in other countries if my decide to operate in.
Polycentric
Approach that considers each country to be a unique market and therefore each of its subsidiary (branch) business develops its own business marketing strategy in order to meet its specific customers needs in that individual market
Geocentric
- best of both ethnocentric and Polycentric
- approach that views the world as a potential market and therefore an effort is made to develope a intergrated world market strategy that combines ethno & poly
How business decide what model to use:
- Ansoffs Matrix
- Boston Matrix
- Marketing Mix
Marketing Mix
- Product
- Price
- Promotion
- Place
Product
- is the product easily adaptable?
- does the product have high development costs?
- is the product in a rapidly changing industry?
-macdondals adapted its menues for global markets
