Chapter 76- Marketing

Question 1

Global Marketing Strategy

Answer 1

The process of adjusting a company’s marketing strategies to reflect conditions, consumer tastes and demand in other countries

Question 2

Glocalisation

Answer 2

The practice of conducting business according to the local and cultural needs of a population, in order to maximise the appeal of a product

The strengthening of Latin America, Asian and Middle Eastern economies has prompted an explosion of TNC interest in these emerging markets,

• In order to maximise profit Glocalisation is commonly used
• For example, adapting a product according to people’s tastes, religion, culture, laws and local interests

Question 3

Different Types of Marketing Approach-

Answer 3

• Ethnocentric (domestic) approach- Approach overseas markets just as you approach local markets. This involves developing and marketing different products for the demands of local customers In different markets.
• Polycentric (international) approach- businesses adapt their products to suit the local market
• Geocentric (mixed) approach- use a mix of both, Glocalisation approach. The business’s strategy is to maintain and promote the global brand name, but tailor its products to local markets.

Question 4

Ethnocentric (domestic) approach Advantages and Disadvantages

Answer 4

A

• Lower cost of development and production
• Economies of scale

D

• Product may not sell well
• Does not take account of national/cultural differences

Question 5

Polycentric (international) approach Advantages and Disadvantages

Answer 5

A
- Targeted products for different markets - higher sales

D

• Higher cost of development
• Difficult to compete with established local brands

Question 6

Geocentric (mixed) approach Advantages and Disadvantages

Answer 6

A
- Tailoring products to local tastes and needs - higher sales

D
- Higher cost of product development