4.3.1 Marketing

Question 1

What is a global market strategy?

Answer 1

The adaptation of a market strategy to target all markets on a worldwide scale

Question 2

What are examples of a global marketing strategy?

Answer 2

Coca-cola/McDonalds Happy Meal

Question 3

What are the positives of a global marketing strategy?

Answer 3

• easy
• low costs (cost minimisation)
• networking/marketing economies of scales
• global brand
• a consistent and clear message

Question 4

What are the negatives of a global marketing strategy?

Answer 4

• not tailored
• assumptions of areas
• competitive
• risky, ignoring cultural differences
• requires a brand to be established
• not flexible

Question 5

What is glocalisation?

Answer 5

The adaption of a global marketing strategy in order to meet the requirements of local geographic markets

Question 6

What is the quote associated with glocalisation?

Answer 6

Think global, act local

Question 7

What are the positives of glocalisation?

Answer 7

• suit local demands and markets
• flexibility
• better customer service

Question 8

What are the negatives of glocalisation?

Answer 8

• 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

Question 9

What is an example of a failed global marketing strategy?

Answer 9

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

Question 10

What is the EPG model?

Answer 10

A framework that can be used to consider marketing approaches used by global firms

Question 11

What does the E stand for in EPG model?

Answer 11

Ethnocentric/Ethnocentrism

Question 12

What does the P stand for in the EPG model?

Answer 12

Polycentric/Polycentrism

Question 13

What does the G stand for in the EPG model?

Answer 13

Geocentric/Geocentrism

Question 14

What is the home nation?

Answer 14

Where the business originated and has main operations

Question 15

What is the host nation?

Answer 15

Where the target market or subsidiary of the business is based

Question 16

What is an ethnocentric approach?

Answer 16

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)

Question 17

What is are the keywords involved in the ethnocentric strategy?

Answer 17

one brand

assumes

Question 18

What is a polycentric approach to global marketing?

Answer 18

Products and services designed to meet specific local needs requiring a different marketing mix

Question 19

What is are the keywords involved in the polycentric strategy?

Answer 19

specific

local needs

Question 20

What is the ethnocentric approach also called?

Answer 20

Domestic

Question 21

What is the geocentric approach also called?

Answer 21

Mixed

Question 22

What is the polycentric approach also called?

Answer 22

International

Question 23

What is are the keywords involved in the geocentric strategy?

Answer 23

Alterations

Market orientated

Question 24

What is a geocentric approach to global marketing?

Answer 24

Maintaining and promoting a global brand name but making slight alterations to tailor to local markets

Question 25

What are the benefits and drawbacks of using an ethnocentric approach?

Answer 25

+ 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

Question 26

What are the benefits and drawbacks of using a geocentric approach?

Answer 26

+ 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

Question 27

What are the benefits and drawbacks of using a polycentric approach?

Answer 27

+ 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)