4.3 Global Marketing

Question 1

Ethnocentric

Answer 1

Standardise product for all markets to keep costs low
Products sold without adaptation

Question 2

Polycentric

Answer 2

Adapt to each market to appeal to local customers to maximise revenue
Adapting marketing and product

Question 3

Geocentric

Answer 3

A global brand
Change in product and marketing done same

Question 4

Ethnocentric pros and cons

Answer 4

Pros: Bus can create brand linked to origin
Promotion highlights USP of product
There’s enough consumers in diff countries who don’t need product to be adapted

Cons: Standard product may not suit tastes in all markets
Political events may make products from a company unpopular
Lost sales from ignoring cultural differences

Question 4

Glocalisation

Answer 4

Products and market made for local but done globally
Suits needs of local markets but sold globally

Question 5

Pros and Cons of Polycentric

Answer 5

Pros: Unique markets need to be addressed in diff ways
Cons: Lower economies of scale
Higher prices due to investment in R&D

Question 6

Pros and Cons of Geocentric

Answer 6

Pros: Global customers with similar tastes can be targeted Multinationals can operate across the world
Cons: Large investment
Advertising and promotion needs to ignore cultural differences

Question 7

Global niche market

Answer 7

Small market in more than one country
Made up of very loyal customers and loyal premium prices

Question 8

Advantages of global niche market

Answer 8

There is less competition and greater customer loyalty in niche markets.
Prices are likely to be higher and therefore profits may be greater
Spread risks

Question 9

Disadvantages of selling in a global market niche

Answer 9

Economies of scale reduced as some markets need own attention
Some products need unique ingredients or production that increases costs