4.3 Global marketing

Question 1

Ethnocentric approach

Answer 1

• Standardise the product for all markets to keep costs low
• no changes to the products for overseas customers

Question 2

Geocentric approach

Answer 2

• A mixture between ethnocentric and polycentric
• benefits of standardised products but also tailors products to meet the needs of local markets overseas while maintaining a consistent brand image

Question 3

Polycentric approach

Answer 3

• Adapt their marketing strategy by tailoring their products to the local market

Question 4

Glocalisation

Answer 4

• products and services that are both developed and sold to global customers but designed so that they suit the needs of the market

Question 5

Advantages of Ethnocentric

Answer 5

• Promotion highlights usp
• Business can create a distinctive brand

Question 6

Disadvantages of Ethnocentric

Answer 6

• May not suit tastes in all markets
• Political events may make products from a country unpopular
• ignoring cultural differences means sales can be lost

Question 7

Advantages of Polycentric

Answer 7

• Meets all customer needs
• Access to higher market share

Question 8

Disadvantages of Polycentric

Answer 8

• No economies of scale
• higher advertising costs
• Higher costs with research and adapting - higher prices

Question 9

Advantages of Geocentric

Answer 9

• increased sales as customer needs are being met
• increased brand loyalty

Question 10

Disdvantages of Geocentric

Answer 10

• Ignoring differences in culture causes loss of sales/bad reputation
• Requires large investment - high costs with changing packaging/menus

Question 11

Factors to consider in global marketing

Answer 11

• Cultural differences
• Different tastes
• language
• Unintended meanings
• Translations
• Inaccurate branding/promotion

Question 12

What is culture ?

Answer 12

• The set of dominant behaviours, values, beliefs and thinking patterns we learn as a part of society

Question 13

How does language influence global business?

Answer 13

• Translations mean different things
• The way we communicate is different
• Multiple languages so products have to be translated multiple ways

Question 14

How do Customs influence global business?

Answer 14

• Making sure advertisement is appropriate/acceptable
• Don’t want to offend target market

Question 15

How do values influence global business?

Answer 15

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Question 16

How does time influence global business?

Answer 16

• Time zones make communication difficult
• Meeting deadlines/ being on time can be hard

Question 17

How do business norms influence global business?

Answer 17

• Greetings need to be adapted
• Etiquette changes - What’s appropriate and what’s not

Question 18

How do religious beliefs influence global business?

Answer 18

• Traditions/food can change
• Reputations can be ruined
• Prayer/festivals

Question 19

Advantages of market adaptation

Answer 19

• Respects local culture
• Improved local brand image
• Advertising will be more effective

Question 20

Disadvantages of market adaptation

Answer 20

• Lower economies of scale
• Higher costs
• Required detailed market research
• Doesn’t allow a single brand image

Question 21

Features of a global niche market

Answer 21

• Good customer service (paying a higher price)
• Innovation (Highly differentiated products)
• Expertise in the product area (helps build value)
• Better quality (Targeting wealthier customers, charging higher prices)
• Clear understanding of customer wants and needs