Global Marketing Flashcards
What are the three marketing approaches?
-Ethnocentric
-Polycentric
-Geocentric
What is ethnocentric marketing?
-Business believes that a success story in one country can translate to all other countries
-The products are sold without any adaptations
What are the benefits and negatives of ethnocentric marketing?
Benefits:
-Promotion highlights USP of product
-Can create a distinctive brand linked to origin
-Enough consumers in different countries who don’t need products to be adapted
Negatives:
-May not suit all tastes in all markets
-Political events may make products from a country unpopular
-Ignoring cultural differences may lose sales
What is polycentric marketing?
-Adapting the marketing mix to maximise sales in different countries
-Should develop a marketing strategy for each country, addressing the needs of the market
What are the reasons for and against polycentric marketing?
For:
-Must address markets in different ways as they are all unique
-Big differences in cultures
Against:
-Lower economies of scale
-Higher prices due to investment in research for foreign markets
What is geocentric marketing?
-Branding is done on a global basis
-Take a world wide approach
-Aims to target global customers who have similar tastes
What are the benefits and negatives of geocentric marketing?
Benefits:
-Global consumers with similar tastes can be targeted
-Becomes multinational so can operate across the world
Negatives:
-Advertising needs to ignore differences in culture
-Requires large investment
What is glocalisation?
Products and services are sold globally but designed to meet the needs of local markets
What ways do cultural diversity influence business practises in different countries?
-Economic developments
-Language
-History and traditions
-Religious and social norms
-Weather and climate
-Attitudes to outsiders
-Legal systems
What are global niche markets?
Small segments of the global market that are characterised by unique and specific needs and preferences
Why do global niche markets develop?
-Cultural differences
-Different adaptation of technology
-Distinctive branding
-Premium/luxury demand
-Specialist expertise developed
-Specialist distribution
What are the features of global niche markets?
-Clear understanding of the wants and needs of customers
-Emphasis on quality
-Innovation
-Expertise in product area
-Excellent customer service
What are the advantages and disadvantages of global niche markets?
Advantages:
-Less competition and greater customer loyalty
-Higher prices so higher profits
-Reduced risk as it is spread across countries
-Social media allows brands to be promoted worldwide
Disadvantages:
-Difficult communication
-Cultural differences
What is culture?
The dominant set of behaviours, values, beliefs and thinking patterns we learn as part of society
What should brands consider when promoting globally?
-Cultural differences
-Different tastes
-Language
-Unintended meanings
-Inappropriate/inaccurate translations
-Inappropriate branding and promotion
