marketing - different marketing approaches

Question 1

define ethnocentric approach

Answer 1

• when there is limited/no attempt to adapt to the international market
• Products sold without adaptation – global products

Question 2

benefits and drawbacks of an ethnocentric approach

Answer 2

• eos
• low marketing costs with little market research required
• brand consistency

cons:
- lack of market orientation may cost sales, brand image and loyalty
- cultural insesitivity

Question 3

define polycentric approach

Answer 3

• Adapting the marketing mix to maximise sales in different countries.
• Each host country is unique
• Each subsidiary business in each country should develop its own marketing strategy

Question 4

benefits and drawbacks of the polycentric approach

Answer 4

• increased sales, loyalty, brand recognition
• more responsive to market needs

cons:
- higher average costs
- need for research = cost/time associated
- loss of consistency

Question 5

define the geocentric approach

Answer 5

• mixed approach
• Brand on a global basis and cater for individual markets where required
• some adaptation to suit each international market but not to the extent of polycentric approach

Question 6

benefits and drawbacks of the geocentric approach

Answer 6

• eos - may shift production to regional level
• local responsiveness = customer needs
• glocalisation = conducting business according to both local and global considerations.

cons:
- danger as theres no clarity of strategy
- getting the wrong approach gives the problem of both system

Question 7

define glocalisation

Answer 7

Glocalisation is a strategy where businesses aim to reach customers globally and also take into consideration the needs of the local market