4.3 Global Marketing Flashcards
Definition of Global marketing
This involves the planning, production, placing and promoting of a business’s products in a worldwide market
Definition of Global localisation
A firm adapting to local expectations in order to succeed in an international marke
Definition of Domestic/Ethnocentric
Assumes that what works in the home markets will work in the international ones
Is effective if international consumers value authenticity
Pros and cons to Domestic/Ethnocentric approach
Pros:
Economies of scale
Average cost can be lower - lead to lower prices - lead to more sales - lead to higher profits
Cons:
May not sell well as it hasn’t been adapted
Business will be taking a risk
Does not take into account cultural or national differences
Definition of Mixed/Geocentric approach
Recognises differences in national markets
Main aim is to build truly global markets
Pros and cons of a Mixed/Geocentric approach
Pros:
Products are tailored to meet local needs - result in higher sales
Cons:
High costs
Definition of International/Polycentric approach
Recognises that every national market requires a different marketing mix
Products designed specifically to meet local needs
Pros and cons of a International/Polycentric approach
Pros:
Products should sell well as they are tailored to meet specific needs in a market
May be more effective
Cons:
High costs
Have to compete with established local brands
Definition of The Marketing Mix
A marketing strategy sets to achieve select aims
The marketing mix must be used in global markets and must be considered as part of a global marketing strategy
What does the marketing mix consist of
Price - include factors such as income, taxes, rent and other costs
Place - Need to take into account how local consumer buy their products
Product - Need to identify whether or not they need to modify/adapt their product for global markets
Promotion - Needs to be conscious of cultural differences e.g. languages
What does the Ansoff Matrix allow
For businesses to decide their product and market growth strategy
What does the Ansoff Matrix consist of
Market penetration - Existing product , Existing market
Market development - Existing product , New market
Product development - New product , Existing market
Diversification - New product , New market
Aims of market penetration
Maintain or increase the market share of current products
Secure dominance of growth markets
Restructure a mature market by driving out competitors
Increase usage by existing customers
Definition of Niche Market
Small segments of the global market that are characterised by unique and specific needs and preferences
Features of global niche markets
A clear understanding of needs and wants of the market segment
An emphasis on quality
Excellent customer service
Expertise in the product area
Prioritising profit rather than market share
Innovation
Pros and cons of Global niche markets
Pros:
Lower competition than in mass markets
Greater customer loyalty
Prices are likely higher so higher profits
Risk may be reduced
Potential economies of scale
Specialist products reduce PED
Cons:
Economies of scale may not be achievable as each market may need individual attention
Co-ordination and communication may be difficult
