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Business > 4.3 > Flashcards

4.3 Flashcards

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
Q

what is product or service development?

A

new product or service developed for an existing market

26
Q

what is market development?

A

taking existing products and selling them in new markets

27
Q

what is diversification?

A

selling new products within new markets

28
Q

what are advantages of market penetration?

A
  • low risk as the product and customers are already known

- low financial research and development cost

29
Q

what are disadvantages of market penetration?

A
  • no guarentee of working
  • sales may be exhausted or the market may be too saturated
  • high promotional costs
30
Q

what are advantages of product or service development?

A
  • 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
Q

what are disadvantages of product or service development?

A
  • more risky

- higher costs for R+D advertising and changes kn production facilities

32
Q

what are advantages of market development?

A
  • can move to countries with trade liberalisation
  • can reach higher sales potential
  • reach economies of scale as their is higher sales levels
33
Q

what are disadvantages of market development?

A
  • no guarentee of demand

- may not correctly adapt to cultures

34
Q

what are advantages of diversification?

A
  • a business can move out of a saturated or shrinking market-boston matrix link
  • most potential growth from this option (polycentric approach)
35
Q

what are disadvantages of diversification?

A
  • highest risk

- large intake of phyiscal, human and financial resources

36
Q

what price considerations need to be made for niche markets?

A

-higher prices
higher quality due to more skilled workers
use price skimming, premium pricing, cost plus
-this is depends in price elasticity

37
Q

what are product considerations for niche markets?

A
  • caters more closely to customer needs as it is specialised
  • USP
  • likely to use job production
38
Q

what place considerations need to be made for niche markets?

A

-tend to use online retailing

manufacturer straight to customer

39
Q

what are promotion considerations for niche markets?

A

-target a specific audience

use social media,newspapers,specialist magazines

40
Q

what is cultural diversity?

A

a range of different societies or people of different origins, religions and traditions living and interacting together.

41
Q

what is cultural sensitivity?

A

having an understanding of different customers interests and values

42
Q

how can international business communication effect sales?

A

if a business gets this wrong it can deter customers or drive away potential suppliers

43
Q

what is a global niche market?

A

a very small market in each country, but the combination of all the countries makes enough demand for the business to be profitable.

44
Q

what are characteristics of global niche markets?

A
  • 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
Q

what are advantages of global niche markets?

A
  • 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
Q

what are disadvantages of global niche markets?

A
  • 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

Business (4 decks)

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