4.3.1 Global Marketing Flashcards
Global Marketing Strategy
The adaptation of a marketing strategy to target all markets on a worldwide scale.
Benefits of a global marketing strategy
- Economies of scale in production and distribution.
- Lower marketing costs.
- Power in the market as brand is known.
- Consistency in brand image.
- Uniformity of marketing practices.
Drawbacks of a global marketing strategy
- Differences in consumer needs and wants.
- Differences in consumer response to marketing mix elements.
- Differences in legal environment.
- Differences in brand and product development and the competitive environment.
Glocalisation
The adaptation of a global marketing strategy to meet the requirements of local geographic markets.
Benefits of glocalisation
- Tailoring to local taste/habits Optimise market share and reputation.
- Local production so lower costs.
Drawbacks of glocalisation
- Time consuming.
- R&D and market research costs.
- Needs informative expertise.
EPG Model
A framework that can be used to consider marketing approaches used by global firms.
Ethnocentric approach
Where the promotion of the product is undertaken based on the beliefs of the home nation of the business and is presented to the host nations as such.
Geocentric approach
Where the promotion of the product is undertaken based on a global or worldly point of view. Therefore, it is not based on the beliefs of the home or host nation but recognises differences in national markets.
The global brand is the same in each country, but the marketing is adapted to suit local customers.
Polycentric approach
Where the promotion of the product is undertaken based on the beliefs of the nation in which the business is operating.
Ansoff’s Matrix
A marketing planning model that helps a business determine its product and market growth strategy.
