4.3.1 Flashcards
Definition of Global Marketing Strategy
The process of using the marketing mix to promote a business’s product to the global marketing
Definition of Glocalisation
A strategy where businesses aim to reach customers globally also take into consideration the needs of the local market
Definition of Ethnocentric
Businesses see the domestic market and foreign markets as very similar
There will be no changes to products or marketing
2 Advantages of Ethnocentric
-Economies of scale
-Lower costs
2 Disadvantages of Ethnocentric
-Potentially lose sales as its not tailored
-Cultural insensitivity
Definition of Polycentric
Businesses will adapt their marketing strategy by tailoring the products to local markets
Each country is treated as a unique market
2 Advantages of Polycentric
-Sales are likely to increase
-Brand Loyalty
2 Disadvantages of Polycentric
-Increase average unit cost
-Cost of market research
Definition of Geocentric
Utilises standardised products but also tailors products to meet needs of local markets
2 Advantages of Geocentric
-Increase in sales
-Brand loyalty
1 Disadvantage of Geocentric
-Costs with product development
2 Ways Place can be adapted to Global Markets
-Need to identify best channel of distribution
-Need to consider available technology
2 Ways Product can be adapted to Global Markets
-Need to consider how much product development is needed
-Need to decide on ethno, poly or geo approach
2 Ways Promotion can be adapted to Global Markets
-Needs to be adapted for cultural differences
-Must choose most effective promotion method
3 ways Price can be adapted to Global Markets
-Must consider customer incomes, taxes and production costs
-Must consider stage in PLC
-Must consider economy
