Global Marketing Flashcards
What is glocalisation?
Glocalisation is a term used to describe an approach to global marketing that maintains consistent brand and image across the world, but makes adaptations, especially to products, to suit local markets.
What are the strengths of global brands?
Huge sales provide production opportunities to enjoy significant economies of scale.
Global brands can be bought for reassurance and familiarity, it helps sales.
Global scale provides strong negotiating power with retailers.
What are the strengths of localising your brand (globalisation)?
Tailoring to local tastes and habits should boost market share.
Local buyers can assume you are a local producer, which may help sales.
An innovative product designed for local tastes may end up being a global success.
Localising brands probably means localised production, which cuts costs and may help establish a greener image of the business.
What are the different approaches to global marketing?
Domestic/ethnocentric
International/ polycentric
Mixed/geocentric
What is the domestic/ethnocentric approach to global marketing?
Focused on the home country, heavily influenced by their national culture. This leads to an approach that expects consumers in foreign markets to welcome the company’s products as they are.
What is the international/polycentric approach to global marketing?
The belief that all markets are different. Decisions are made at a local level, specifically designed to suit the needs of local customers.
What is the mixed/geocentric approach to global marketing?
This combines ethnocentric and polycentric perspectives. Although people all over the world share some characteristics, this approach also accepts that local differences exist, necessitating localisation.
The geocentric approach would empower local managers, but on the understanding that where possible, global is best. So they can take decisions that suit their area where the company’s global approach cannot be applied effectively.
How can you apply the marketing mix to global markets?
Product: size, taste/flavour, packaging.
Promotion: methods and content.
Place: typical outlets may vary, a delivery service may be expected.
Price: some local markets may need to see pricing strategies adjusted due to local competition.
How can you apply Ansoffs Matrix to global markets?
Ansoff helps businesses assess the level of risk associated with their choice of strategic direction.
Measuring markets and products on its two axes, as firms consider entering new foreign markets, they can assess how similar or different new markets are to their existing markets.
On the other axis, they can judge risk by the extent to which local market conditions require them to change their product portfolio or enter the market with existing products.
What are the benefits of selling products to a niche market?
Able to meet customer needs more precisely.
Able to charge a higher price than mass market products.
Less direct competition.
What is cultural diversity?
Cultural diversity describes the differing interests and values of people from different national backgrounds.
What factors is cultural diversity caused by?
Economic factors: differing levels of average disposable income in different countries.
Weather: temperature influences how and where people work, relax eat or generally live their lives.
History and tradition: may have a wide ranging impact on many issues relevant to business, including diet, attitudes to religion, gender, racial diversity and lifestyle.
Who can you assume that global niche markets cater to?
Most cater to the wealthy in supplying luxuries.
What are key features of businesses aiming at top end luxury niches?
Aspirational price levels.
Products with a strong brand heritage.
Distribution through world famous luxury stores such as Harrods and at airports.
Promotion in style/travel magazines and through glamorous PR events.
How can cultural diversity affect each aspect of global niche markets?
Different features expected of the product.
Different price expectations.
Differences in traditional channels of distribution from country to country.
Different expectations of how promotional messages are received from country to country and market to market.
