4.3 Flashcards

(46 cards)

1
Q

what is a global marketing strategy?

A

a business that doesnt differentiate its product or makreting between countries

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2
Q

what are characteristics of a global marketing strategy?

A
  • 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
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3
Q

what time of business would use a global marketing strategy?

A

product orientated businesses

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4
Q

why is a global marketing strategy difficult?

A

must have creativity to meet all customer needs and retain demand.

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5
Q

What are advantages of a global marketing strategy?

A
  • 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
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6
Q

what are disadvantages of a global marketing strategy?

A

-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

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7
Q

what is glocalisation?

A

selling products globally but designed so that they suit the needs of local markets

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8
Q

what are characteristics of glocalisation?

A

identifying a local identity and creating and producing products that meet the local identity

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9
Q

what is a limitation of glocalisation?

A

it is challenging to meet local customers needs so market research is crucial here.

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10
Q

what is an ethnocentric approach?

A

there is little to no attempt to adapt to the international market

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11
Q

what are characteristics of an ethnocentric approach?

A
  • 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
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12
Q

what are advantages of an ethnocentric approach?

A
  • 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
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13
Q

what are disadvantages of an ethnocentric approach?

A
  • cultural differences are not being met so the product may not sell
  • high risk of failure
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14
Q

what is a polycentric approach?

A

the marketing mix is adapted to suit a particular international market

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15
Q

what are advantages of a polycentric approach?

A
  • 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
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16
Q

what are limitations of a polycentric approach?

A
  • expensive
  • extensive market research necessary
  • have to compete with established local brands
  • differentiation is high risk
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17
Q

what is a geocentric approach?

A

a combination of both polycentric and ethnocentric features

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18
Q

what are limitations of a geocentric approach?

A

-higher product development costs

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19
Q

What are advantages of a geocentric approach?

A
  • 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
20
Q

What price considerations need to be made in local markets?

A

-what price can suit the local market

consider demographics, economic environment, competitive environment

21
Q

what product considerations need to be made when entering new markets?

A

-to what extent will the product be altered to suit customer needs

22
Q

what promotional considerations need to be made when going into international markets?

A

-how does language and culture influence the brand image

23
Q

What place considerations need to be made when entering international markets?

A

-what are the best distribution channels

is it better to export use joint venture or set up as an MNC

24
Q

what is market penetration?

A

increase sales to the existing market by penetrating it more deeply

25
what is product or service development?
new product or service developed for an existing market
26
what is market development?
taking existing products and selling them in new markets
27
what is diversification?
selling new products within new markets
28
what are advantages of market penetration?
- low risk as the product and customers are already known | - low financial research and development cost
29
what are disadvantages of market penetration?
- no guarentee of working - sales may be exhausted or the market may be too saturated - high promotional costs
30
what are advantages of product or service development?
- likely to gain sales as it is an existing market that is familiar to the business - target audience does not change - conplementary products can be released alongside existing products
31
what are disadvantages of product or service development?
- more risky | - higher costs for R+D advertising and changes kn production facilities
32
what are advantages of market development?
- can move to countries with trade liberalisation - can reach higher sales potential - reach economies of scale as their is higher sales levels
33
what are disadvantages of market development?
- no guarentee of demand | - may not correctly adapt to cultures
34
what are advantages of diversification?
- a business can move out of a saturated or shrinking market-boston matrix link - most potential growth from this option (polycentric approach)
35
what are disadvantages of diversification?
- highest risk | - large intake of phyiscal, human and financial resources
36
what price considerations need to be made for niche markets?
-higher prices higher quality due to more skilled workers use price skimming, premium pricing, cost plus -this is depends in price elasticity
37
what are product considerations for niche markets?
- caters more closely to customer needs as it is specialised - USP - likely to use job production
38
what place considerations need to be made for niche markets?
-tend to use online retailing | manufacturer straight to customer
39
what are promotion considerations for niche markets?
-target a specific audience | use social media,newspapers,specialist magazines
40
what is cultural diversity?
a range of different societies or people of different origins, religions and traditions living and interacting together.
41
what is cultural sensitivity?
having an understanding of different customers interests and values
42
how can international business communication effect sales?
if a business gets this wrong it can deter customers or drive away potential suppliers
43
what is a global niche market?
a very small market in each country, but the combination of all the countries makes enough demand for the business to be profitable.
44
what are characteristics of global niche markets?
- a subset of the global market - highly specialised and have very loyal customers and premium prices - higher fixed costs so selling globally can reduce average costs - profit margins must be high to customise, innovate and maintain demand
45
what are advantages of global niche markets?
- face less competition as it is a smaller segment - more customer loyalty - higher prices due to added value of high quality - risk reduced as operating is many markets
46
what are disadvantages of global niche markets?
- may not benefit from economies of scale as much as expected due to likely taking a polycentric approach - co ordination and communication may be more difficult across various brands and markets