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Business Studies Theme 4 - Global Business > Global Marketing - 4.3 > Flashcards

Global Marketing - 4.3 Flashcards

1
Q

what is a global marketing strategy?

A

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

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2
Q

What are 5 benefits of having a global marketing strategy?

A
  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
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3
Q

What are 3 drawbacks of having a global marketing strategy?

A
  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
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4
Q

What is the definition of glocalisation?

A

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

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5
Q

What are 5 benefits of glocalisation?

A
  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
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6
Q

what are 5 drawbacks of glocalisation?

A
  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
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7
Q

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

A
  1. change formulation
  2. change size
  3. change packaging
  4. change design
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8
Q

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

A
  1. change slogan
  2. medium - tv/ radio/ billboards
  3. marketing message - incorporate culture
  4. amount of promotion
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9
Q

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

A
  1. reduce pricing or premium pricing
  2. price elasticity ( availability of close substitutes)
  3. cost of transport
  4. tariffs/ import taxes
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10
Q

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

A
  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)
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11
Q

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

A

market penetration

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12
Q

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

A

market development

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13
Q

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

A

product development

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14
Q

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

A

diversification

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15
Q

what are 3 approaches to market development?

A
  1. new geographical markets
  2. new distribution channels (e-commerce/ mail order)
  3. different pricing policies to attract new customers in different segments
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16
Q

what is the definition of pure play?

A

a business which purely exists online

17
Q

What is an EPG model?

A

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

18
Q

what is a home nation?

A

where the business originates

19
Q

what is a host nation?

A

where the target market of the business is based

20
Q

what is the definition of ethnocentricity (domestic)?

A

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

21
Q

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

A

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

22
Q

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

A

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

23
Q

what is a con of ethnocentricity?

A
  1. could actually restrict promotional prospects - countries may feel offended that they aren’t tailoring it to them
24
Q

what is a con of a polycentric approach?

A

could make the brand identity confusing

25
Q

what is the definition of price discrimination?

A

charging different people different prices for the same product or service

26
Q

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

A
  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
27
Q

what is the global niche market definition?

A

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

28
Q

what are 6 features of global niche markets?

A
  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
29
Q

how do global niche markets develop? (6)

A
  1. cultural differences
  2. specialist expertise developed
  3. different adoption of technology
  4. premium/ luxury demand
  5. distinctive branding
  6. specialist distribution
30
Q

what is the definition of cultural diversity?

A

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

31
Q

what are 6 factors which influence cultural diversity?

A
  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’
32
Q

what are 4 benefits of a global niche?

A
  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
33
Q

what are 4 negatives of a global niche?

A
  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
34
Q

what is definition of aspirational pricing?

A

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

35
Q

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

A
  1. cultural differences
  2. different tastes
  3. language
  4. unintended meanings
  5. inappropriate/ inaccurate translations
  6. inappropriate branding and promotion
36
Q

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

A
  1. gestures
  2. language
  3. religion/ faiths
  4. time zones
  5. traditional customs
  6. body language
37
Q

what is the definition of culture?

A

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

38
Q

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

A
  1. establish social trust first
  2. value personal relationships and goodwill
  3. negotiations slow and ritualistic
  4. agreement by general trust
39
Q

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

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

Business Studies Theme 4 - Global Business (4 decks)

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