4.3 - Global marketing Flashcards
What is a global marketing strategy?
A global marketing strategy sets out how a business market its products in different countries.
Business’s have marketing strategies for each country they sell to. These marketing strategies might be exactly the same in all countries or they can be different in each country.
What is glocalisation?
glocalisation is adapting marketing strategies between different countries. This is where firms ‘think globally, act locally’
Globalisation is often used by international businesses as consumers are more likely to buy a product that’s adapted to their needs, culture, or local tastes.
What is one main advantage of glocalisation?
glocalisation can lead to local production, which can lower the costs of production for the business, for example if it doesn’t have to transport its products between countries.
What are the different approaches a business ca have to its marketing approach?
Businesses can use a marketing approach to their global marketing strategy which is:
- ethnocentric
- polycentric
- geocentric
What is an ethnocentric approach?
An ethnocentric approach keeps a similar marketing strategy everywhere.
This leads to the marketing strategy used in global markets being similar to the one used in the firms domestic markets.
The business can save costs from an ethnocentric approach since they can reach economic of scale, and don’t need to spend much on new marketing campaigns or market research.
What is a polycentric approach?
A firm using a polycentric approach uses different marketing strategies in each country.
Using the polycentric approach to target products at particular markets should ensure sales.
However, it is expensive to carry out market research to create new products and marketing plans.
What is a geocentric approach?
The geocentric approach is a mix between the other approaches, the global focus of the ethnocentric approach is kept, but it also uses some of the local factors identified under a polycentric approach.
The global brand is the same in each country, but the marketing is adapted to suit local customers.
What is a global niche market?
Products sold in global niche markets can meet specific customer needs.
A global niche market is made up of several small niche markets from different countries.
Different cultural groups might have different values and interests, which can mean that they have specific needs and wants, which are not met by products sold in the global mass market.
What are the advantages of of global niche markets?
- Firms serving global niche markets may face minimal competition, and often have high customer loyalty
- Products sold in global niche market are usually price in elastic so firms can charge high prices
- Risk can be spread across several markets
What are the disadvantages of. Global niche markets?
- A firm selling in a global niche market will have a low sales volume
- A low sales volume means firms wont get much revenue compared to those in mass markets
- if a firm sells to a small number of niche markets their risk may be high
What should global marketing strategies consider?
- Marketing strategies need to account for differences in culture, for example different languages and countries have different wants and needs
- Firms need to consider languages when marketing abroad.
