Edexcel- Global marketing 4.3 Flashcards
Global marketing strategy
process of planning, producing, placing and promoting a businesses product or service to the global market.
Glocalisation
Strategy where business aims to reach customers globally and take into consideration the needs of local markets.
Domestic/ Ethnocentric
No changes to products for overseas customers and marketing is the same.
Example of ethnocentric
Apple standardised all their products.
Ethnocentric advantages
Businesses can benefit from economies of scale.
Costs are lower.
Ethnocentric disadvantages
Businesses could loose sales.
Approach can lead to cultural insensitivity.
Polycentric/International approach
Businesses adapt market strategy by tailoring their products to each local market.
polycentric example
Kit Kat develop different adaptions for different consumers in international markets.
Polycentric advantages
Sales are likely to increase.
Helps to develop brand image.
Polycentric disadvantages
Product development may increase costs.
Additional costs for market research.
Geocentric/Mixed approach:
Utilises standardised products but tailors to meet needs of local markets overseas.
Geocentric example
McDonalds standardises products whilst tailoring to local needs.
Geocentric advantages
Sales likely to increase
Develop brand image in overseas markets.
Geocentric disadvantages
High costs with product development and menu changes.
Place
Identify best channel of distribution to get to customer in particular market.
Consider available technology.
Product
How much to modify or adapt products to meet overseas market.
Consider whether to take Polycentric, ethnocentric or geocentric approach.
Price what must be considered?
Customer incomes
Cost of production
Taxes
Price
Stage of product life cycle the product is at in the market.
State of economy.
Promotion
Adapted to meet language and cultural differences.
Must choose most effective production method.
Market penetration
Least risky
Existing products into existing markets
Market development
Existing products into new markets
Low risk
Businesses adapt products to meet global needs.
Diversification
New products for new markets
High risk if limited knowledge on market
Local marketing knowledge is needed
Product development
New products into existing markets
Adapting marketing mix to ensure products resonate with local consumers.
Barlett and Ghostal matrix
Indicates strategic options for businesses wanting to manage their international operations based on two factors.
What two factors are the Barlett and Ghostal matrix based on?
Local responsiveness
Global integration
Global
Low pressure for local responsiveness
High pressure for global integration
Global example
Apple
Global
Low pressure for local responsiveness
High pressure for global integration
Transnational
High pressure for local responsiveness
High pressure for global integration
International
Low pressure for local responsiveness
Low pressure for global integration
Multi domestic
High pressure for local responsiveness
Low pressure for local integration
Global example
Apple
Transnational example
Starbucks
International example
McDonalds
Multi domestic example
Nestle
