Global marketing 4.3

Question 1

What is Glocalisation?

Answer 1

Products and services that are both developed and sold to global customers but designed so that they suit the needs of local markets

Question 2

What is an ethnocentric marketing approach?

Answer 2

products are sold without adaption to local markets

Question 3

What are the pros of using an ethnocentric approach?

Answer 3

-Business can create a brand link to its origins
-promotion highlights USPs leading to a competitive advantage
-Can benefit from Economies of scale

Question 4

what are the cons of using an ethnocentric approach

Answer 4

-Lower opportunities for sales
-product may not suit tastes in all markets

Question 5

What is a polycentric marketing approach?

Answer 5

-The business believes every market is different therefore they create products that suit the tastes of each market individually

Question 6

What are the pros of a polycentric marketing approach?

Answer 6

-Motivated local managers as they develop new products
-Higher sale volume in each market leading to increased revenue

Question 7

What are the cons of a polycentric marketing approach?

Answer 7

-High marketing research costs, not enough research may lead to mistakes being made
-Economies of scale will be lower

Question 8

What is a geocentric marketing approach?

Answer 8

Try and continue the global brand name but have some considerations for the different trends in markets and may mildly adapt their products

Question 9

What are the pros of a geocentric approach?

Answer 9

• “global consumers with similar tastes can be targeted”
  -Firm has a global brand and loyalty

Question 10

What are the cons of a geocentric approach?

Answer 10

-requires large investment

Question 11

What is a global niche market?

Answer 11

Small segments of the global market that have specific tastes and needs

Question 12

What are the features of a global niche market?

Answer 12

-highly specialised products
-very loyal customers
-premium prices
-high quality

Question 13

How could you adapt Product (marketing mix) to a global niche market?

Answer 13

modify the features of the product to meet specific needs of customers

Question 14

How could you adapt Price to a global niche market?

Answer 14

Offering a price strategy that is attractive to the target audience.

Question 15

How could you adapt Place to a global niche market?

Answer 15

Offering a convenient distribution strategy for the consumers

Question 16

What are two advantages of operating in a global niche market?

Answer 16

-Less competition and greater customer loyalty
-Risk is to be spread as business is operating in multiple countries

Question 17

What are two disadvantages of operating in a global niche market?

Answer 17

-EOS may not be achievable as each country needs its own attention
-Some products may require expensive ingredients or supply, increasing costs

Question 18

Why must a business understand the cultural variations of different countries?

Answer 18

A marketing mistake can destroy the rest of the business that has been set up. You could end up offending or embarassing potential customers

Question 19

What are the five cultural considerations for a business?

Answer 19

-Different tastes
-Unintended meanings
-Inappropiate or inaccurate translations
-Language
-Inappropiate branding and promotion