Global Marketing Stratagies (section 19)

Question 1

What are the global marketing techniques that a business can use

Answer 1

Ethnocentric
Geocentric
Polycentric

Question 2

Whats the ethnocentric global marketing strategy

Answer 2

This is when the business has little/no adaptations to products regarding local tastes.

Example- Apple

Question 3

Advantages of the ethnocentric strategy

Answer 3

Economies of scale- producing the same products for all markets

Cheaper- using the same marketing and promotional tools worldwide

Less research and development- time consuming.

Question 4

Disadvantages of the ethnocentric strategy

Answer 4

Not adapted to customers- lower brand image

Lower sales- lower profit

Cultural insensitivity

Question 5

Whats the geocentric marketing strategy

Answer 5

This is when the business partially makes changes to their business to meet needs of the local market.

Question 6

Advantages of geocentric marketing strategy

Answer 6

Satisfied customers- customer loyalty- more sales

Economies of scale

Good global brand image and will be recognised world wide.

Question 7

Disadvantages of the geocentric marketing strategy

Answer 7

Research and development needs to take place- expensive and time consuming

Costly to adapt their products

Local competition

Question 8

Whats the Polycentric marketing strategy

Answer 8

This is when the business fully adapts to the local markets needs

Question 9

Advantages of the Polycentric marketing strategy

Answer 9

Meet customer demand and ensure sales

Potentially charge higher prices due to the products being tailored to the customers needs

Question 10

Disadvantages of the Polycentric market strategy

Answer 10

Research and development is expensive and time consuming

Expensive to adapt their products

Risk of local bias

Fewer chances of economies of scale