4.3 global marketing

Question 1

What is global marketing strategy ?

Answer 1

The process of planning, producing, promoting a business’s product or service to the global market

Question 2

What is glocalisation ?

Answer 2

Strategy where businesses aim to reach customers globally and also take into consideration the needs of the local market

Question 3

What is the domestic/ethnocentric approach ?

Answer 3

No changes to products for overseas customers and marketing of the product will be the same

Question 4

What is the advantages of the ethnocentric approach ?

Answer 4

• economies of scale as products are standardised
• lower costs as there is no need to adapt

Question 5

What is the disadvanatges of the ethnocentric approach ?

Answer 5

Lose sales as not tailored

Cultural insensitivity

Question 6

What is the polycentric / international approach ?

Answer 6

Businesses adapt their marketing strategy by tailoring their products to the local market by developing a customised marketing mix

Question 7

Advantages of polycentric ?

Answer 7

Sales are likely to increase as product is tailored to meet needs

Develop brand loyalty

Question 8

What are the disadvantages of polycentric ?

Answer 8

Product development to adapt may increase costs

Market research

Question 9

What is the geocentric/mixed approach ?

Answer 9

Utilises the benefits of standardised products but also tailors products to meet the needs of local markets overseas while maintaining a consistent brand image across markets

Question 10

What is the advantage of the geocentric approach ?

Answer 10

• Tailored products
• Increase brand loyalty

Question 11

What is the disadvantage of the geocentric approach ?

Answer 11

Product development charges and menu changes

Question 12

What is ansoffs matrix - definition

Answer 12

strategic planning tool that helps businesses identify potential growth opportunities by analysing their product and market strategies

Question 13

What does ansoffs matrix consist off?

Answer 13

Market penetration - EXISTING product EXISTING market
Product development - EXISTING market NEW product
Market development - EXISTING PRODUCT NEW MARKET
Diversification - NEW MARKET NEW PRODUCT

Question 14

What is cultural diversity ?

Answer 14

recognises the ideas, customs and social behaviour of a particular people or society in different global markets

Question 15

What are global niche markets ?

Answer 15

small segments of the global market that are characterised by unique and specific needs and preferences

Question 16

What are the features of global niche markets ?

Answer 16

• Understanding needs and wants of customers
• Emphasis on quality
• Expertise in product area
• Prioritising profit over market share
• Innovation

Question 17

How do you adapt the marketing mix to suit global niches ?

Answer 17

Product - Modify features to meet needs
Price - Reflect high quality nature
Promotion - Marketing communication strategies
Place - Distribution strategy that is convenient for target audience

Question 18

What factors do you consider in global marketing ?

Answer 18

• Cultural differences
• Unintended meanings
• Different tastes
• Language
• Inappropriate branding
• Inaccurate translations