Marketing Flashcards
What is a global marketing strategy?
A global marketing strategy means that a business doesn’t differentiate its products or marketing between countries.
What is a key characteristic of products in a global marketing strategy?
The same product is sold in many countries with some fine tuning of the product, price, promotion etc.
Name a company that successfully implements a global marketing strategy.
IKEA
What is one pro of developing a global marketing strategy?
Economies of scale can be achieved in both production and distribution.
Power in the market as the brand is known.
What does uniformity of marketing practices refer to in a global marketing strategy?
It refers to the consistent marketing practices across different countries.
Differences in brand and product development and the competitive environment.
What is one con of developing a global marketing strategy?
Differences in consumer needs, wants and usage patterns for products.
Differences in brand and product development and the competitive environment.
What is a potential legal issue with a global marketing strategy?
Differences in the legal environment, some of which may conflict with those of the market.
What is Glocalisation?
A combination of ‘globalisation’ and ‘localisation’ describing products and services designed for global customers but tailored to local market needs.
Successful companies implement glocalisation strategies to cater to diverse consumer preferences.
List the three main marketing approaches for expanding operations.
- Polycentric
- Ethnocentric
- Geocentric
These approaches help businesses adapt their marketing strategies based on regional differences.
What does the Polycentric approach entail?
Adapting to each market to appeal to local customers and maximize revenue.
This approach recognizes the unique preferences and needs of different markets.
What is the Ethnocentric approach?
Standardising the product for all markets to keep costs low.
This approach can lead to cost efficiencies but may overlook local market preferences.
Define the Geocentric approach.
A mixture of the Polycentric and Ethnocentric approaches.
This strategy balances local adaptation with cost efficiency.
What is a polycentric approach in international marketing?
Businesses adapt their marketing strategy by tailoring their products to the local market.
How does a company using a polycentric approach treat each market?
The company treats each country as a unique market and develops a customised marketing mix for each market.
What example illustrates the polycentric approach?
KitKat has developed different adaptations of the chocolate to reach different consumers in the international market.
What was changed in KitKat’s packaging in Japan?
The packaging was changed to include cherry blossoms, a symbol of good luck.
What is one pro of the polycentric approach?
Sales are likely to increase as the product is tailored to meet the needs of customers.
How does a polycentric approach help in brand loyalty?
This helps to develop brand loyalty in overseas markets.
What is one con of the polycentric approach?
Product development to adapt the product may increase average unit costs.
What additional cost may arise from using a polycentric approach?
There will be additional costs in market research to find out about the market.
What is the Ethnocentric Approach in business?
Businesses see the domestic market and foreign markets as very similar.
What belief underlies the Ethnocentric Approach?
The company’s home country culture and marketing practices are superior to those of other countries.
How do businesses using the Ethnocentric Approach treat their products for overseas customers?
There will be no changes to the products for overseas customers and marketing will be the same.
Give an example of a company that uses the Ethnocentric Approach.
Apple sells standardised products across their global markets.
