4.3.1 - Marketing Flashcards
What is global marketing strategy
• A global marketing strategy means that a business doesn’t differentiate its products or marketing between countries.
• The same product is sold in many countries with some fine tuning of the product price, promotion etc.
What is a global Bramd
• A global brand views the world as a global marketplace and creates products that will suit a world audience
• Microsoft is the ideal global product, all it needs to do is adapt the languages, adjust the cost for the region and fine tune the marketing to suit the area
What are global marketing decisions
• In global marketing the promotional message may be the same all over the world leading to reduced average marketing costs, economies of scale
• The only differences might be that sales incentives may vary in different countries
What are the advantages to global Marketing
• 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
What are the disadvantages to global marketing
• 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
What is glocalisation
Glocalisation is a combination of the words ‘globalisation’ and ‘localisation’ and is used to describe products and services that are both developed and sold to global customers but designed so that they suit the needs of local markets.
What is glocalisation in local markets
• Glocalisation businesses are aware of the importance of combining relevant, transferrable products with the heritage and authenticity of local identities
• Products or services are designed to benefit a local market while at the same time being developed and distributed on a global level.
What is The three approach theory to global marketing
• The decision whether products sold in a new international market should be adapted or standardised.
• To what extent can a MNC design and market a truly global product.
1. Polycentric – adapt to each market to appeal to local customers to
maximise revenue
2. Ethnocentric – standardise the product for all markets to keep costs low
3. Geocentric – a mixture of the two
What is polycentric
• The international approach is the polycentric model – adapting the marketing mix to maximise sales in different countries
• Each host country is unique
• Each subsidiary business in each country should develop its own marketing strategy
What is ethnocentric
• A business which believes that a success story in one country can translate to all other countries in which it operates
• Foreign operations are subordinate to domestic markets
• Products sold without adaptation
• Ethnocentrism is the belief of superiority is one’s personal ethnic group
What is geocentric
• Business can have some of the advantages of a standardised global approach to get economies of scale but cater for needs of individual markets to maximise sales
• Branding may be done on a global basis
• The businesses has a world wide approach to marketing and its operations become global
• A global MNC will have manufacturing and processing facilities around the world to serve the various regional and national markets through a complicated but well co-ordinated system of distribution networks
