Global Marketing - 4.3

Question 1

what is a global marketing strategy?

Answer 1

The adaptation of a marketing strategy to target all markets on a worldwide scale

Question 2

What are 5 benefits of having a global marketing strategy?

Answer 2

1. marketing economies of scale
2. large sales volume - securing the first mover advantage
3. strong consistent brand message/ identity
4. more efficient use of resources
5. EOS in production and distribution

Question 3

What are 3 drawbacks of having a global marketing strategy?

Answer 3

1. Not specific to other international target markets - where the culture is different
2. the global market place is competitive - people can be loyal to domestic producers
3. differences in legal environment, some which may conflict with those of the market

Question 4

What is the definition of glocalisation?

Answer 4

The adaptation of a global marketing strategy in order o meet requirements of local geographic markets

Question 5

What are 5 benefits of glocalisation?

Answer 5

1. easier to compete with the domestic market
2. higher demand meets the needs of customers and target market
3. reduces the risk of failure
4. customers feel valued- consider their needs
5. distinguish yourself with USPs

Question 6

what are 5 drawbacks of glocalisation?

Answer 6

1. heavy investment in market research - expensive
2. opportunity cost from money on research and development
3. not guaranteed to be successful
4. rate of return may not be quick enough
5. strong domestic competition - joint venture will help

Question 7

how can the product part of the marketing mix be adapted to global markets? (4)

Answer 7

1. change formulation
2. change size
3. change packaging
4. change design

Question 8

how can the promotion part of the marketing mix be adapted to global markets? (4)

Answer 8

1. change slogan
2. medium - tv/ radio/ billboards
3. marketing message - incorporate culture
4. amount of promotion

Question 9

how can the price part of the marketing mix be adapted to global markets? (4)

Answer 9

1. reduce pricing or premium pricing
2. price elasticity ( availability of close substitutes)
3. cost of transport
4. tariffs/ import taxes

Question 10

how can the place part of the marketing mix be adapted to global markets? (5)

Answer 10

1. proximity to transport links
2. use of local suppliers
3. undertake joint venture
4. change layout of stores
5. choice of location (add value)

Question 11

in ansoffs matrix, what is an existing product in an existing market?

Answer 11

market penetration

Question 12

in ansoffs matrix, what is an existing product in a new market?

Answer 12

market development

Question 13

in ansoffs matrix, what is an new product in an existing market?

Answer 13

product development

Question 14

in ansoffs matrix, what is an new product in a new market?

Answer 14

diversification

Question 15

what are 3 approaches to market development?

Answer 15

1. new geographical markets
2. new distribution channels (e-commerce/ mail order)
3. different pricing policies to attract new customers in different segments

Question 16

what is the definition of pure play?

Answer 16

a business which purely exists online

Question 17

What is an EPG model?

Answer 17

framework that can be used to consider marketing approaches used by global firms

Question 18

what is a home nation?

Answer 18

where the business originates

Question 19

what is a host nation?

Answer 19

where the target market of the business is based

Question 20

what is the definition of ethnocentricity (domestic)?

Answer 20

where the promotion of the product is undertaken based on the beliefs of the home nation of the business and is presented to the host nation as such

Question 21

what is the definition of a geocentric approach (mixed)?

Answer 21

promotion of the product is undertaken based on global point of view. not based on the perspective of the home nation or host nation

Question 22

what is the definition of a polycentric approach (international)?

Answer 22

promotion of the product is undertaken on the beliefs of the host nation

Question 23

what is a con of ethnocentricity?

Answer 23

1. could actually restrict promotional prospects - countries may feel offended that they aren’t tailoring it to them

Question 24

what is a con of a polycentric approach?

Answer 24

could make the brand identity confusing

Question 25

what is the definition of price discrimination?

Answer 25

charging different people different prices for the same product or service

Question 26

what factors influence the choice of and success of different approaches to the global market? (5)

Answer 26

1. target market / demographics 2. brand identity strengths - reduces price elasticity 3. research and development (funds/ capacity to undertake) 4. location - how similar home nation and host nation is 5. product being sold

Question 27

what is the global niche market definition?

Answer 27

markets where customers in many countries have specific needs and wants that are not satisfied by mass market products or services

Question 28

what are 6 features of global niche markets?

Answer 28

1. very small market in each country, but the combination of countries make enough demand to make a business profitable 2. subset of a global market 3. highly specialised and characterised by very loyal customers and premium prices 4. reduced price elasticity 5. raise barriers to entry 6. added value

Question 29

how do global niche markets develop? (6)

Answer 29

1. cultural differences 2. specialist expertise developed 3. different adoption of technology 4. premium/ luxury demand 5. distinctive branding 6. specialist distribution

Question 30

what is the definition of cultural diversity?

Answer 30

range of different societies or people of different origins, religions and traditions all living and interacting together

Question 31

what are 6 factors which influence cultural diversity?

Answer 31

1. economic development (e.g. disposable incomes, health, education) 2. language 3. history and traditions 4. weather and climate 5. legal system 6. attitudes to 'outsiders'

Question 32

what are 4 benefits of a global niche?

Answer 32

1. employ premium price strategy 2. less competition from mass market producers 3. larger potential demand - lower costs and are spread 4. customer loyalty - distinct brand identity

Question 33

what are 4 negatives of a global niche?

Answer 33

1. products could be more bespoke - add costs (can't be spent on R&D and market research) 2. could accrue additional marketing costs 3. economies of scale may not be achievable 4. slight degree of risk

Question 34

what is definition of aspirational pricing?

Answer 34

ignoring costs and competitors in pitching a price so high as to tempt those who wish to show off their wealth

Question 35

what are 6 cultural/ social factors which businesses need to think about before expanding into global markets?

Answer 35

1. cultural differences 2. different tastes 3. language 4. unintended meanings 5. inappropriate/ inaccurate translations 6. inappropriate branding and promotion

Question 36

what are 6 cultural differences which may have impacts when doing business?

Answer 36

1. gestures 2. language 3. religion/ faiths 4. time zones 5. traditional customs 6. body language

Question 37

what is the definition of culture?

Answer 37

dominant set of behaviours, values, beliefs and thinking patterns we learn as we grow and develop in our social groups

Question 38

what happens in high context communication needs? (e.g. in china) (4)

Answer 38

1. establish social trust first 2. value personal relationships and goodwill 3. negotiations slow and ritualistic 4. agreement by general trust

Question 39

what happens in low context communication needs? (e.g. UK/ Germany) (4)

Answer 39

1. get down to business first 2. value expertise and performance 3. agreement by specific legalistic contract 4. negotiations as efficient as possible