4C Flashcards
What is global marketing
When a firm adapts its marketing mix in order to sell its products in more than one country
Glocalisation
When a firm differentiates its products for different markets.
Examples of businesses that have used glocalization strategy
KFC selling burgers in America
Disneyland China
McDonalds in India
What is a ethnocentric approach
All products are identical, e.g apple product orientated
What is polycentric approach
Adapting products for local markets, e.g McDonald’s. market orientated
What is Geocentric approach
Combination of both approaches
What is price discrimination
Different prices for the same product for different consumers
Advantages of Ethnocentric approach
-No differentiation, no cost of r and d for each market.
-strong brand image
-increased EoS-lower average costs per unit
Disadvantages of ethnocentric approach
-not meeting local preferences, tastes need and wants
–can be viewed as foreign brand
-products may not work in all climates.
Advantages of polycentric approach
-increased sales as products meet consumer tastes and preferences
-consumers may view products more favourable
Disadvantages of of polycentric approach
-increased costs of r and d for localisation- new products new production line, train workers.
-time consuming and costly to collect market research
Advantages of geocentric approach
-maximising sales-core products and localised products-meeting everyone’s needs and tastes.
-risk spreading- if one product fails business has others
Disadvantages of geocentric approach
-still have r and d costs for new localised products and costs associated with.
-potential for DoS
Features of global niche market
_Lots of small firms with small market share.
-small target market
-less competition-higher prices
-highly differentiated product
-high quality product
-high customer service
-low barriers to entry
-less EoS
Examples of global niche markets
polo equipment
left handed golf clubs
