4.3 Global Marketing

Question 1

Define Global marketing strategy

Answer 1

Global marketing strategy is the process of planning, producing, placing and promoting a business’s product or service to the global market

Question 2

Define Glocalisation

Answer 2

Glocalisation is a strategy where businesses aim to reach customers globally and also take into consideration the needs of the local market

Question 3

What is the Domestic/ Ethnocentric Approach?

Answer 3

This approach is based on the belief that the company’s home country culture and marketing practices are superior to those of other countries

Question 4

Adv. of Ethnocentric approach

Answer 4

Businesses can benefit from economies of scale as the product is standardised and produced on a large scale

Costs are also lower as there is no investment into product development to adapt products for different markets

Question 5

Disadv. of the Ethnocentric Approach

Answer 5

The business could potentially lose sales as the product is not tailored to the needs and wants of markets overseas

This approach can lead to cultural insensitivity and may not resonate with local customers in other countries

Question 6

What is the Polycentric/ International approach?

Answer 6

Businesses adapt their marketing strategy by tailoring their products to the local market

The company treats each country as a unique market and develops a customised marketing mix for each market

Question 7

Advantages of the Polycentric Approach

Answer 7

Sales are likely to increase as the product is tailored to meet the needs of customers

This helps to develop brand loyalty in overseas markets

Question 8

Disadv. of the Polycentric Approach

Answer 8

Product development to adapt the product may increase average unit costs

There will also be additional costs in market research to find out about the market

Question 9

Define Geocentric/ Mixed approach

Answer 9

This approach utilises the benefits of standardised products but also tailors products to meet the needs of local markets overseas while maintaining a consistent brand image across markets

Question 10

Adv. of the Geocentric Approach

Answer 10

Sales are likely to increase as the product is tailored to meet the needs of customers

This helps to develop brand loyalty in overseas markets

Question 11

Disadv. of the GEOCENTRIC

Answer 11

There will be costs associated with the product development and menu changes required to meet the needs of the local market