Cheaper 6

Question 1

Globalization has lead to

Answer 1

 Market access
 Market opportunities
 Industry standards
 Sourcing
 Products & services
 Technology
 Customer requirements

Question 2

what is a Multi-Domestic marketing

Answer 2

This is an approach in which the firm has a completely different strategy for every single market. Focuses on maximizing the company’s effectiveness and efficiency in exploiting economies of scale, experience and skill in marketing, production and logistics.
* Assumes that foreign market opportunities are as important as home market opportunities.
* Adopts wide spread adaptation to meet market needs and to retain competitive leverage in local markets.
* The company follows a differentiated marketing strategy.
A well organized and managed multi- domestic strategy is an effective method for many companies for developing a global business.

Question 3

Regional marketing strategy

Answer 3

The firm uses the same strategy across a region. Regionalization represents a more manageable compromise between the extremes of global standardization and multi- domestic strategies.
* For example, there are obvious differences in the challenges of marketing to North America, Africa and South East Asia and different strategies are required.
* Regional trading blocks tend to favors their own MNEs, apply tariffs and non-tariff barriers to firms outside the Region.
* Differentiated strategies for each Region.
Regional strategies are built around the common elements within a region and the distinctiveness of the Region

Question 4

Global strategy

Answer 4

This is when a company pursues an integrated global marketing strategy; most elements of the marketing strategy have been globalized. Globalization includes not only the product but also the communications strategy, pricing and distribution as well as such strategic elements as segmentation and positioning. Everything in the marketing activities is standardized in all countries.

Question 5

Transnational Strategy

Answer 5

• The firm has a standardized identity and corporate values throughout the firm but delivers its strategic objectives through composite strategies which contain elements of multi-domestic, regional and global strategies.
• Transnational companies aim to build three strategic capabilities:
  – Global scale efficiency and competitiveness.
  – National level responsiveness and flexibility.
  – Cross market capacity to leverage learning on a world wide basis.

Question 6

Adaptation and standardization

Answer 6

Adaptation Marketing strategy whereby new products are based on modification or some improvement on existing or competing products, and not on pioneering innovations. It is the strategy of a follower

Question 7

Things that a firm can easily standardize

Answer 7

• Pricing, Distribution, Sales Force
• Sales Promotion
• Product
• Image
• Objectives
• Strategy