4.3 Global Marketing

Question 1

What is localisation?

Answer 1

Localisation is a strategy where businesses aim to reach customers globally and also take into consideration the needs of the local market

Question 2

What are the 3 marketing approaches?

Answer 2

Ethnocentric, Geocentric and Polycentric

Question 3

What is an ethnocentric marketing approach?

Answer 3

• Domestic and foreign market are the same
• No changes to the products and marketing

Question 4

What are the advantages and disadvantages of an ethnocentric marketing approach ?

Answer 4

Advantages:
- Businesses can benefit from EoS
- Costs are lower because the product doesn’t have to change

Disadvantages:
- Business could lose sales because the product isn’t tailored
- Can lead to cultural insensitivity

Question 5

What is a polycentric marketing approach?

Answer 5

• Business adapt their marketing strategy to tailor the needs of the local market
• The company treats each country as unique

Question 6

What are the advantages and disadvantages of a polycentric marketing approach?

Answer 6

Advantages:
- Sales are likely to increase because the needs are met
- Helps to develop brand loyalty in overseas markets

Disadvantages:
- Product development to adapt the product may increase costs
- Additional costs in market research

Question 7

What is a geoncentric marketing approach?

Answer 7

• Uses the benefits of standardised products but also tailored products to meet local needs while maintaining a consistent brand image

Question 8

What are the advantages and disadvantages of a geocentric marketing approach?

Answer 8

Advantages:
- Sales are likely to increase as the product is tailored to needs
- Helps develop brand loyalty

Disadvantages:
- Will be costs associated with the product development and menu changes to meet local needs

Question 9

What is the marketing mix?

Answer 9

4 ps - product, price, place, promotion