4.3.1 Marketing

Question 1

What is ethnocentric (domestic) approach?

Answer 1

-Overseas markets are seen as identical or similar to domestic markets and the approach. Assumed that’s what is good for the domestic market will be good for the global market.

-Businesses using thus approach make little or no attempt to adapt their products for different markets.

Question 2

What is polycentric (international) approach?

Answer 2

Businesses adapt their products to the local markets in which they plan to sell their products to. This involves developing and marketing different products for the demands of local customers in different markets. For example, car manufacturers will adapt cars and model name is to meet the expectations of the local market.

Question 3

What is Geocentric (mixed) approach?

Answer 3

• Businesses use a combination of the ethnocentric and polycentric marketing approaches. This ‘glocalisation’ approach is used by many multinationals corporations, and is summed by the phrase, ‘think global,act local’
• the business’s strategy is to maintain and promote the global brand name, but to tailor its products to local markets.

Question 4

What is the marketing mix (the 4Ps)

Answer 4

• offering locally sourced, organic ingredients(products)
• lowering off-peak prices ( prices)
• establishing a delivery service (place)
• a loyalty scheme which offers discounts to regular customers (promotions)

Question 5

What is price in the marketing mix ?

Answer 5

Decisions around price need to take into account local factors such as incomes, taxes, rents and other costs. It is unlikely that a business will charge the same price in all markets.

Question 6

What is product in the marketing mix ?

Answer 6

To what extent should a business modify or adapt its product for global markets. There are different approaches that businesses can take their products when moving into international markets (ethnocentric, polycentric and geocentric)

Question 7

What is promotion in the marketing mix ?

Answer 7

When promoting products in global markets, businesses need to be conscious of language differences.

Question 8

What is place in the marketing mix ?

Answer 8

Businesses need to take account of how local consumers typically buy their products.

Question 9

What is Ansoff’s matrix

Answer 9

It is a strategic tool to help a business achieve growth, which can be applied to global markets and can help to inform decisions around marketing strategy.

Question 10

What is market penetration?

Answer 10

Exists where a business adapts products for markets in which it operates.
This is where existing products are adapted in an existing market.

Question 11

What is market development

Answer 11

• Involves the marketing of existing products in new markets.
• An existing product adapted in a new market

Question 12

What is diversification ?

Answer 12

Occurs when new products are developed for new markets.
- new product in a new market

Question 13

economies of scale

Answer 13

Savings facilitated by an increased level of production

Question 14

Globalisation

Answer 14

The process of businesses starting to operate internationally and develop international influence

Question 15

Global marketing strategy

Answer 15

The process of adjusting a company’s marketing strategies to reflect conditions , consumer tastes and demand in other countries

Question 16

Glocalisation

Answer 16

A combination of the words ‘globalisation’ and ‘localisation’. It involves the development and sale of products to customers around the world which reflect specific local customs, tastes and turnovers

Question 17

Localisation

Answer 17

Strategies that adjust products to fit with target customers.

Question 18

Advantages to global marketing

Answer 18

• Economies of scale can be achieved in both production and distribution
• This will mean lower than average marketing costs
• Power in the market as the brand is known
• Consistency in brand image
• Ability to leverage good ideas
quickly and efficiently
• Uniformity of marketing practices

Question 19

Disadvantages to global marketing

Answer 19

• Differences in consumer needs, wants and usage patterns for products
• Differences in consumer response to marketing mix elements.
• Differences in brand and product development and the competitive environment
• Differences in the legal environment, some of which may conflict with those of the market

Question 20

What are the Adaptation of 4Ps to global markets

Answer 20

• product
• place
• price
• promotion