4.3.1 Global Marketing

Question 1

what is a global marketing strategy

Answer 1

how a business markets its product/service in different countries

Question 2

what is glocalisation

Answer 2

the business aims to reach customers globally but takes into consideration the needs of the local market

Question 3

what are the 3 main global marketing strategies

Answer 3

1 ethnocentric approach
2 geocentric
3 polycentric

Question 4

explain an ethnocentric approach

Answer 4

• no changes to the product or marketing
• based on the belief that the company’s home culture and marketing are superior to those of other countries

Question 5

evaluate an ethnocentric marketing strategy

Answer 5

+ EOS as production is a standardised and large scale
+ Costs are lower as there is no investment into adapting products for different markets
- may lose sales as the product is not tailored for overseas markets
- cultural insensitivity may not resonate with local customers

Question 6

explain a polycentric approach

Answer 6

• businesses adapt their products for local markets
• each country is treated as a new market and develops an appropriate marketing mix for each

Question 7

evaluate a polycentric approach

Answer 7

+ sales are likely to increase as the product is tailored
+ helps develop brand loyalty in other countries
- adapting the marketing mix increases average unit costs
- additional costs in market research

Question 8

evaluate a polycentric approach

Answer 8

+ sales are likely to increase as the product is tailored
+ helps develop brand loyalty in other countries
- adapting the marketing mix increases average unit costs
- additional costs in market research

Question 9

explain a geocentric approach

Answer 9

• this is a mix between polycentric and ethnocentric
• utilises and benefits from standardised products but also tailors products to meet the needs of local markets

Question 10

evaluate a geocentric approach

Answer 10

+ sales will increase due to the tailored products
+ helps to develop brand loyalty
+ global brand image improves as the business is still somewhat cohesive and recognisable
- costly to adapt the products
+ but these are lower than a polycentric approach

Question 11

when establishing a global marketing strategy a business will consider the 4 p’s which are …

Answer 11

product
promotion
price
place (distribution)