4.3.1 Marketing Flashcards
What is a global market strategy?
The adaptation of a market strategy to target all markets on a worldwide scale
What are examples of a global marketing strategy?
Coca-cola/McDonalds Happy Meal
What are the positives of a global marketing strategy?
- easy
- low costs (cost minimisation)
- networking/marketing economies of scales
- global brand
- a consistent and clear message
What are the negatives of a global marketing strategy?
- not tailored
- assumptions of areas
- competitive
- risky, ignoring cultural differences
- requires a brand to be established
- not flexible
What is glocalisation?
The adaption of a global marketing strategy in order to meet the requirements of local geographic markets
What is the quote associated with glocalisation?
Think global, act local
What are the positives of glocalisation?
- suit local demands and markets
- flexibility
- better customer service
What are the negatives of glocalisation?
- can be expensive
- time-consuming
- not always successful (highly risky due to over diversifying)
- domestic competition
- negative PR
- harder to achieve economies of scale
- requires different and new suppliers
What is an example of a failed global marketing strategy?
Tesco attempted to expand into the American market under the name of Fresh n Easy. This was unsuccessful because:
- existing degree of competition resulting in high barriers to entry
- large networks required
- changes in tastes
What is the EPG model?
A framework that can be used to consider marketing approaches used by global firms
What does the E stand for in EPG model?
Ethnocentric/Ethnocentrism
What does the P stand for in the EPG model?
Polycentric/Polycentrism
What does the G stand for in the EPG model?
Geocentric/Geocentrism
What is the home nation?
Where the business originated and has main operations
What is the host nation?
Where the target market or subsidiary of the business is based
What is an ethnocentric approach?
Goods/services are sold within adaptation operating under one brand name
(Assumes what was successful in the home nation can be replicated in the host nation)
What is are the keywords involved in the ethnocentric strategy?
one brand
assumes
What is a polycentric approach to global marketing?
Products and services designed to meet specific local needs requiring a different marketing mix
What is are the keywords involved in the polycentric strategy?
specific
local needs
What is the ethnocentric approach also called?
Domestic
What is the geocentric approach also called?
Mixed
What is the polycentric approach also called?
International
What is are the keywords involved in the geocentric strategy?
Alterations
Market orientated
What is a geocentric approach to global marketing?
Maintaining and promoting a global brand name but making slight alterations to tailor to local markets
What are the benefits and drawbacks of using an ethnocentric approach?
+ less investment in R+D and market research
+ lower marketing costs
+ consistency –> greater brand image + communication
+ economies of scale
- less innovation and USP
- lack of flexibility
- different customer trends
- PR issues are connected
- existing degree of competition impacting barriers to entry
What are the benefits and drawbacks of using a geocentric approach?
+ acknowledges the local market
+ somewhat responsive/flexible since subsidiaries are given slight autonomy
+ manages risk (widens portfolio as a method of diversification)
- lead to micromanagement
- bureaucracy
What are the benefits and drawbacks of using a polycentric approach?
+ promotes innovation
+ increased sales due to local knowledge and decision making (decentralised)
+ targets a wider mass market
- can lead to overtrading and loss of core products
- costly (R+D, market research, marketing)
- disregard for local traditions lowering customer loyalty (distorts goodwill and brand perception)
