4.3.1 - Marketing Flashcards
Glocalisation Definition
Strategy where businesses aim to reach customers globally and also take into consideration the needs of the local market
What is the Polycentric Approach?
Business tailors their products to each individual market as they treat each country as a unique market with adapted marketing mix
What is the Ethnocentric Approach?
Business believes their approach and marketing directly translates into foreign markets so no changes for overseas markets
What is the Geocentric Approach?
Mix of both polycentric and ethnocentric approach and utilises both standardised products and also tailors products to markets needs
Advantages of Polycentric Approach
- Increases revenue as tailored to consumer needs
- Easy to develop brand loyalty
Limitations of Polycentric Approach
- Product development increases unit costs
- Additional costs for research and development
Advantages of Ethnocentric Approach
- Businesses can benefit from economies of scales as standardised product produced at a large scale
- Lower costs as no product development
Limitations of Ethnocentric Approach
- Could potentially lose sales as not tailored to consumer needs/markets overseas
- Opportunity Cost
- Cultural Bias - Seen as superior
Advantages of Geocentric Approach
- Sales likely to increase as meeting needs
- Develops overseas brand loyalty
Limitations of Geocentric Approach
Costs associated with product development
How is Place adapted to Global Markets?
- Identify best channel of distribution
- Availability of technology to use e-commerce
How is product adapted to Global Markets?
- Modify products to meet overseas markets
- Decide on what approach
How is price adapted to Global Markets?
- Consider consumer income, costs of production and taxes overseas
- Stage in product life cycle
- State of economy
How is promotion adapted to Global Markets?
- Adapt to meet language and cultural differences
- Most effective methods for market (social media more effective in some markets)
