4.3.1 Marketing

Question 1

Global marketing strategy

Answer 1

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

Question 2

Strengths of a global marketing strategy

Answer 2

EOS in production and distribution, lower average marketing costs, power in the market as brand is known, consistency in brand image

Question 3

Weakness of global marketing strategy

Answer 3

Differences in consumer needs, wants and usage patterns, differences in brand and product development and competitive environment, differences in the legal environment

Question 4

Economies of scale

Answer 4

Cost advantages a business can exploit by expanding its scale or production

Question 5

Globalisation

Answer 5

The process by which the world is becoming increasingly interconnected as a result of increased trade and cultural change

Question 6

Localisation

Answer 6

Involves organisations adapting their product or seduce to meet the needs to local customers rather than sssjme what works in one country will naturally work in another country

Question 7

Glocalisation

Answer 7

Is the adaptation of a global marketing strategy in order to meet the requirements of local geographic markets

Question 8

Advantages of glocalisation

Answer 8

Local retailers more comfortable with local suppliers, likely local production and possibly lower costs, tailoring to local tastes, optimise market share, reputation

Question 9

Disadvantages of glocaslisation

Answer 9

Time consuming and expensive, needs informative expertise, r&d and marketing research costs, strong domestic competition

Question 10

3 approaches do global markets

Answer 10

Ethnocentric, geocentric, ploycentric

Question 11

Ethnocentric

Answer 11

Is where the promotion of the product is undertaken based on rhe beliefs of the home nation of the business and is presented to the host nation

Question 12

Geocentric - mixed

Answer 12

Is where the promotion of the product is undertaken based on a global or worldly point of view, therefore not based on perspective of home or host nation

Question 13

Poly centric - international

Answer 13

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

Question 14

What is ansoffs matrix

Answer 14

Is a marketing planning model that helps a business determine irs product and market growth strategy

Question 15

Ansoffs matrix suggests

Answer 15

Business and their attempts to grow downed on whether it markets new/existing products in new/existing markets, suggests a series of possible growth strategies assessed against risk

Question 16

Market penetration

Answer 16

Selling existing products into existing markets

Question 17

4 main objectives of market penetration

Answer 17

Maintain/increase market share, securing dominance, reconstructing mature markets, increasing usage w

Question 18

Market development

Answer 18

Seems to sell in existing products into new markets

Question 19

Ways of approaching market development

Answer 19

New geographical markets, new product aspects, different pricing policies to attract new market

Question 20

Product development

Answer 20

Aims to introduce new products into existing markets

Question 21

When is product development suitable

Answer 21

Suitable where differentiation aids competitiveness

Question 22

Diversification

Answer 22

A business markets new products in new markets

Question 23

Why is diversification risky

Answer 23

Due to little experience though high potential returns