4.3 Global Marketing

Question 1

What is glocalisation?

Answer 1

When a business adapts its product or marketing to consumer needs

Question 2

What is global marketing?

Answer 2

A global marketing strategy means that a business does not differentiate marketing or its products between countries

Question 3

Benefits of global marketing?

Answer 3

• economies of scale
• power in the market as the brand is known
• consistency in brand image
• ability to leverage good ideas quickly and efficiency
• uniformity marketing

Question 4

Drawbacks of global marketing?

Answer 4

• differences in consumer needs
• differences in consumer response to marketing mix elements
• no differences in brand and product development in the comp environment
• differences in legal environment some of which May conflict with those of the market

Question 5

What are the benefits of glocalisation?

Answer 5

• Larger culturally different markets
• more demarc from consumers familiar with those products
• compete more effectively in those markets

Question 6

What are the drawbacks of glocalisation?

Answer 6

• Small local businesses will struggle to compete with MNCs as they can’t benefit from EOS
• expensive slow and complex
• loyalties to local businesses causes MNCs firms to struggle

Question 7

What is polycentric marketing?

Answer 7

Adapt to each market to appeal to local customer to maximise revenue

Question 8

What is ethnocentric marketing?

Answer 8

When products ore standardised to keep costs low

Question 9

What is geocentric marketing?

Answer 9

Mixture between ethnocentric and polycentric

Question 10

Benefits of ethnocentric marketing?

Answer 10

• EOS
• consistency in brand image
• lower lost of production and development

Question 11

Benefits of polycentric marketing?

Answer 11

• Lower risk as it is adapted to consumer needs
• targeted products for different markets → higher sales
• responsive to market
• decentralisation → take advantage of the local expertise
• business adapts which avoids insensitivity

Question 12

Benefits of geocentric marketing?

Answer 12

• Tailoring product to local tastes/needs → higher revenue
• EOS

Question 13

Drawbacks of ethnocentric marketing?

Answer 13

• Product may not sell well
• does not take account of national /cultural differences

Question 14

Drawbacks of polycentric marketing?

Answer 14

• More expensive to adapt
• higher cost of development
• difficult to compete with established local brands
• loss of consistency
• duplication of effort causes inefficient and DEOS

Question 15

Drawback of geocentric marketing?

Answer 15

• Higher cost of development of product

Question 16

Drawback of geocentric marketing?

Answer 16

• Higher cost of development of product