Question 1

How is Economies of Scale defined?

Accepted Answer

Savings facilitated by an increased level of production.

Question 2

How is Globalisation defined?

Accepted Answer

The process of businesses starting to operate internationally and develop international influence.

Question 3

How is Global Marketing Strategy defined?

Accepted Answer

The process of adjusting a company’s marketing strategies to reflect conditions, consumer tastes and demand in other countries.

Question 4

How is Glocalisation defined?

Accepted Answer

A combination of ‘globalisation’ and ‘localisation’. It involves the development and sale of products to customers around the world which reflect specific local customs, tastes and traditions.

Question 5

How is Localisation defined?

Accepted Answer

Strategies that adjust products to fit with target customers

Question 6

What is Global Marketing Strategy?

Accepted Answer

- When some businesses operate outside their country of origin, they operate a common global marketing strategy in order to sell their products beyond their national borders - A global marketing strategy set plans to achieve a marketing objective. This process involves the planning, producing, placing and promoting of a business’s products in a worldwide market. - This process can involve a business having offices in different countries, bu the process is also facilitated by the growth of the internet

Question 7

What is Global Localisation?

Accepted Answer

- this differs from having a common strategy for all countries - it involves adapting to local expectations in order for a business to succeed in an international market - 'think global' act local' --> aim to reach customers around the world but to be successful with those potential customers businesses need to take account of local tastes, customs and traditions.

Question 8

What are the different marketing approaches?

Accepted Answer

1 - Ethnocentric (domestic) approach 2- Polycentric (international) approach 3 - Geocentric (mixed) approach

Question 9

What is Ethnocentric marketing?

Accepted Answer

- the domestic approach - What is good for the home country, is good for all markets. They make little or no effort to adapt. - Playstation 4 - Apple products

Question 10

What are the advantages to Ethnocentric marketing?

Accepted Answer

- economies of scale as product is standardised, therefore the scale of production is much larger and so savings can be made on raw materials - no development costs in adapting products. Leading to lower prices and more competitiveness.

Question 11

What are the disadvantages to Ethnocentric marketing?

Accepted Answer

product may not sell if local needs are not met, where a marketing mix is not geared to a local market, a business may be taking a risk which could end if failure if the product doesnt sell well

Question 12

What is Polycentric marketing?

Accepted Answer

- the international approach - Where a business adapts their product to the local markets in which they plan to sell the product. - involves developing and marketing different products for the demand of local customers in different markets

Question 13

What are the advantages of Polycentric marketing?

Accepted Answer

should sell as as the product specifically targets the wants and desires of the customer base in that market

Question 14

What are the disadvantages of Polycentric marketing?

Accepted Answer

- Developing bespoke product is expensive and these cost can be so high that the project itself can be jeopardised - difficult to compete with established local brands

Question 15

What is Geocentric marketing?

Accepted Answer

- the mixed approach - Businesses use a combination of ethnocentric and polycentric marketing approaches - Many MNC’s use this glocalisation approach, summed up by, ‘think global, act local - the business's strategy is to maintain and promote the global brand name, but to tailor its product to local markets,

Question 16

What are the advantages of Geocentric marketing?

Accepted Answer

-Tailoring product to local taste and needs can lead to higher sales

Brainscape's Knowledge GenomeTM

4.3 Global Marketing Flashcards

Brainscape's Knowledge Genome^TM