4.3 Flashcards
(46 cards)
what is a global marketing strategy?
a business that doesnt differentiate its product or makreting between countries
what are characteristics of a global marketing strategy?
- creates its products/brand to suit a global audience
- may change the 4P’s slightly but it is fundamentally the same product
- promotional message is the same all over the world which reduces marketing costs
what time of business would use a global marketing strategy?
product orientated businesses
why is a global marketing strategy difficult?
must have creativity to meet all customer needs and retain demand.
What are advantages of a global marketing strategy?
- economies of scale
- lower than average marketing costs
- power in the market as the brand is known which generates trust
- consistency in the brand image gives a trust and familiarity
- ability to leverage good ideas quickly and effectively which can give first mover advantage
what are disadvantages of a global marketing strategy?
-dont cater towards different customer needs
this suggests the business is going for low cost leadership rather than differentiation
-different customer responses to marketing mix elements
-differences in brand and product development and the competitive market
this is against domestic businesses because of competitive disadvantages
-differences in legal environment
adverts may be banned in certain countries
what is glocalisation?
selling products globally but designed so that they suit the needs of local markets
what are characteristics of glocalisation?
identifying a local identity and creating and producing products that meet the local identity
what is a limitation of glocalisation?
it is challenging to meet local customers needs so market research is crucial here.
what is an ethnocentric approach?
there is little to no attempt to adapt to the international market
what are characteristics of an ethnocentric approach?
- a business believes that the marketing mix in one country can translate to all other countries it operates in
- foreign operations are subordinate to domestic markets
- products are sold without adaptations
what are advantages of an ethnocentric approach?
- standardisation means a business can benefit from economies of scale
- there is no development costs in adapting the products so cost savings
- better communication from the parent company to the subsidiary
what are disadvantages of an ethnocentric approach?
- cultural differences are not being met so the product may not sell
- high risk of failure
what is a polycentric approach?
the marketing mix is adapted to suit a particular international market
what are advantages of a polycentric approach?
- less risk involved as it is likely to sell as it can adapt to the needs of consumers
- can maximise export sales in many countries
what are limitations of a polycentric approach?
- expensive
- extensive market research necessary
- have to compete with established local brands
- differentiation is high risk
what is a geocentric approach?
a combination of both polycentric and ethnocentric features
what are limitations of a geocentric approach?
-higher product development costs
What are advantages of a geocentric approach?
- potentially able to use branding on a global scale
- may be able to benefit from economies of scale by standardising some elements
- lower product development costs
What price considerations need to be made in local markets?
-what price can suit the local market
consider demographics, economic environment, competitive environment
what product considerations need to be made when entering new markets?
-to what extent will the product be altered to suit customer needs
what promotional considerations need to be made when going into international markets?
-how does language and culture influence the brand image
What place considerations need to be made when entering international markets?
-what are the best distribution channels
is it better to export use joint venture or set up as an MNC
what is market penetration?
increase sales to the existing market by penetrating it more deeply
