4.3.1 Global marketing strategy

Question 1

Global Marketing strategy

Answer 1

is the adaptation of a marketing strategy to target all markets on a worldwide scale.

Question 2

Pros of global marketing Strategy

Answer 2

• You can reach a broader audience
• Increases brand recognition on a global scale
• Potentially less risk
• Access to larger market
• Economies of scales – more competitive

Question 3

Cons of global marketing strategy

Answer 3

• There may not be a market for what you sell in every country
• Different types of legislation
• Global competition
• Ignoring the differences in cultures

Question 4

Glocalization

Answer 4

is the adaptation of a global marketing strategy in order to meet the requirements of local geographic markets.
-Think global, act local

Question 5

Pros of glocalisation

Answer 5

• Increase the chances of success in entering foreign markets – better market positioning
• Encourage innovation in the economy of the target country – knowledge and skills transfer
• Offer more jobs for local people
• Increase the productive capacity of the economy
• Local access to products – this can provide lower prices due to more competition
• Offer better access to products and services: more abundant, cheaper and more diverse

Question 6

Cons of glocalisation

Answer 6

• Requires large investment and resources – need to hire local people and do in depth research on local markets and competition
• Local market resistance – some consumers may not respond positively to the presence of foreign companies
• Shutting down local businesses – large MNC’s increases competition and drives prices down

Question 7

EPG model

Answer 7

the EPG model is a framework that’s used to consider marketing approaches used by global firms

Question 8

Home nation

Answer 8

is where the business originated

Question 9

Host nation

Answer 9

is where the target market or subsidiary of the business is based

Question 10

Ethnocentricity

Answer 10

– is 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 nation as such

Question 11

features of ethnocentricity

Answer 11

• Decision making is centralised and key personnel from HQ are sent to oversee marketing operations in other countries
• Restricts promotional aspects
• Could be contentious if it offends the local population
• Often approach ignores local customs and culture

Question 12

Geocentricity

Answer 12

– is where the promotion of the product is undertaken based on a global or worldly point of view. Therefore, it is not based on the perspective of either the home or host nation.

Question 13

Features of Geocentricity

Answer 13

• Marketing focusses on the benefits for the business on a global basis. It does not matter where the HQ or the subsidiary is located
• Recognises difference in global markets; aim to build a global brand
• Products are marketed in foreign countries based on whatever is required for the business to succeed
• This marketing approach mixes elements of ethnocentric with elements of polycentric

Question 14

Polycentricity

Answer 14

– is where the promotion of the product is undertaken based on the beliefs of the nation in which the business is operating.

Question 15

Features of polycentricity

Answer 15

• Direct opposite of ethnocentrism, suggesting that the values of the nation being targeted are all important
• Products are marketed in foreign countries based on the foreign nation’s values, fully taking into account local customers, culture and religion
• Decision making is decentralised, and key personnel need to be recruited from the nation being targeted
• Recruitment might be difficult as there is a loss of control of marketing operations. Local knowledge can be used in the marketing; every market requires a different marketing mix