4.3 Global Marketing Flashcards
What is glocalisation?
When a business adapts its product or marketing to consumer needs
What is global marketing?
A global marketing strategy means that a business does not differentiate marketing or its products between countries
Benefits of global marketing?
- 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
Drawbacks of global marketing?
- 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
What are the benefits of glocalisation?
- Larger culturally different markets
- more demarc from consumers familiar with those products
- compete more effectively in those markets
What are the drawbacks of glocalisation?
- 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
What is polycentric marketing?
Adapt to each market to appeal to local customer to maximise revenue
What is ethnocentric marketing?
When products ore standardised to keep costs low
What is geocentric marketing?
Mixture between ethnocentric and polycentric
Benefits of ethnocentric marketing?
- EOS
- consistency in brand image
- lower lost of production and development
Benefits of polycentric marketing?
- 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
Benefits of geocentric marketing?
- Tailoring product to local tastes/needs → higher revenue
- EOS
Drawbacks of ethnocentric marketing?
- Product may not sell well
- does not take account of national /cultural differences
Drawbacks of polycentric marketing?
- 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
Drawback of geocentric marketing?
- Higher cost of development of product
Drawback of geocentric marketing?
- Higher cost of development of product
what are the evaluations of market penetration?
- depends on customer needs
- may increase costs if not effective
- lower potential reward
what are the evaluations of market development?
- import tariffs
- increase costs
- more risky than product development
- depends on customer needs
- logical strategy where existing markets are saturated or in decline
approaches to market development?
- e-commerce
- new geographical markets
- different pricing policies to attract new customers in different segments
what is cultural diversity?
the practice of including/involving people from a range of different backgrounds in business = recognition of different cultures
what factors affect cultural diversity?
- economic factors
- weather
- history and tradition
what is cultural sensitivity?
understanding that people all over the world have different interests and values
what is a global niche market?
a very small market in each country but the combination of all the countries together make enough demand to make the business profitable
advantages to global niche markets?
- minimal competition
- customer loyalty
- price inelastic products
- high price and profit max
- risk can be spread across many markets
