4.3.1 Marketing

Question 1

What is a global marketing strategy?

Answer 1

A global marketing strategy means that a business doesn’t differentiate its products or marketing between countries.

Question 2

What are global brands?

Answer 2

Brands that view the world as a global marketplace.

Question 3

What global marketing decisions positively impact on the business?

Answer 3

Promotion may be the same worldwide, reducing average marketing costs and leading to economies of scale.

Question 4

What are the advantages of global marketing?

Answer 4

-Economies of scale (production + distribution).
-Lower average marketing costs.
-Market power.
-Consistent brand image.
-Ability to leverage ideas quick.

Question 5

What are the disadvantages of global marketing?

Answer 5

-Differences in consumer needs.
-Differences in consumer response to marketing.
-Differences in brand and product development + the competitive environment.
-Differences in the legal environment.

Question 6

What is glocalisation?

Answer 6

Products and services that are both developed and sold to global customers but designed so that they suit the needs of local markets.

Question 7

How do glocalised businesses adapt?

Answer 7

Products or services are designed to benefit a local market while at the same time being developed and distributed on a global level.

Question 8

What are the 3 marketing approaches? (PEG)

Answer 8

1.) Polycentric
2.) Ethnocentric
3.) Geocentric

Question 9

When is the PEG approached used?

Answer 9

When deciding whether products sold in a new international market should be adapted or standardised.

Question 10

What does the Polycentric approach suggest?

Answer 10

Adapt to each market to appeal to local customers = maximising revenue.

Question 11

What does Ethnocentric approach suggest?

Answer 11

Standardise the product for all markets to keep costs low.

Question 12

What does a Geocentric approach suggest?

Answer 12

A mixture of Polycentric and Ethnocentric

Question 13

What are reasons for the Polycentric approach?

Answer 13

-Each host country is unique.
-Each subsidiary business in each country should develop it’s own marketing strategy.

Question 14

What are reasons for the ethnocentric approach?

Answer 14

-Foreign operations are subordinate to domestic markets.
-Products should be sold without adaptation.

Question 15

What are reasons for the geocentric approach?

Answer 15

-Can have some advantages of a standardised approach (EOS) but also cater for individual needs to maximise sales.
-Branding can be done globally.
-Many distribution networks.

Question 16

What are the 4Ps?

Answer 16

Product
Place
Price
Promotion

Question 17

What is Ansoff’s Matrix and it’s 4 strategies?

Answer 17

Ansoff’s Matrix is a management tool that helps business leaders to decide how to grow their business.

1.) Market penetration
2.) Product development
3.) Market development
4.) Diversificstion

Question 18

Outline standardised + adapted (product)

Answer 18

Standardised: -Travel, media + the Internet, world is getting smaller and it’s easier to market a product known globally.

Adapted: Coke makes it’s products sweeter for some markets to account for local tastes.

Question 19

Standardised + adapted (Place)

Answer 19

Standardised: Distribution in national markets such as the United Kingdom will probably involve goods being moved in a chain from the manufacturer to wholesalers and onto retailers for consumers to buy from.

Adapted: In an overseas market there will be more parties involved because the goods need to be moved around a foreign market where business practices will be different to national markets.

Question 20

Standardised + adapted (Price)

Answer 20

Standardised: It is unlikely that a MNC will attempt to gain the same price in Mexico or Brazil as it does in Germany or France due to the disposable income of the population.

Adapted: Business need to consider - costs of transport tariffs, import duties, ER fluctuations, disposable incomes.

Question 21

Standardised + adapted (Promotion)

Answer 21

Standardised: -Standardised marketing can be used internationally.
-This reduces costs and ensures the brand is known world wide.

Adapted: -Advertising messages in countries may have to be adapted because of language, political climate, cultural attitudes and religious practices.