Paper 2- Theme 4.3- Global marketing

Question 1

define global marketing

Answer 1

the worldwide marketing strategy that aims to find a fit between between worldwide or localised focuses, in order to reach global objectives

Question 2

define a global marketing strategy

Answer 2

applying the same marketing strategy to target all markets on a global scale

e.g. Coca Cola, Tiffany

Question 3

pros and cons of a global marketing strategy

Answer 3

PROS:
• marketing and distribution economies of scale
• spread risk as may not work in one country but will in another
• conistent message, builds brand identity and power in market

CONS:
• marketing message may be translated wrong or misinterpreted
• nature of market may not suit this strategy (e.g. food tastes are not same all over world)
• product may not align with legal requirements

Question 4

define global localisation (glocalisation)

Answer 4

adapting your global marketing strategy to meet the requirements of the tastes and cultures in local geographic markets

Question 5

pros and cons of a glocalisation marketing strategy

Answer 5

PROS:
• tailor product to customer’s needs, optimise market share
• cultural respect from customers

CONS:
• more layers of communication
• may be hard to enter new markets and overcome strong local brand loyalty
• R&D and market research is spenny

Question 6

describe the 3 different marketing approaches, in the EPG model

Answer 6

• ethnocentric - (domestic)

• – promotion of product of based on the beliefs of the home nation
• decision making and production, centralised in domestic

• geocentric - (mixed)

• –> try to manage global matters ethnocentrically and local needs polycentrically
• promotion of products is focused on overall world’s point of view
• marketing focus on the getting the greatest possible benefit (where it’s marketed, or how, is flexible based on what would bring about most success)
• aim to build global brand

• polycentric - (local)

• promotion of product based on beliefs of host nation where business is operating/ selling
• marketing based on local culture, religion and values of host nation are deemed important
• decisions making de-centralised, key personnel are recruited locally

Question 7

pros and cons of ethnocentric approach to marketing

Answer 7

pros:
• create more highly perceived brand image
• standardisation creates significant EoS
• low market research cost

cons
• may lose out on sales, as not market orientated
• marketing may not be understood or be misinterpeted

Question 8

pros and cons of geocentric appeal approach to marketing

Answer 8

pros
• able to be agile in decision making and

cons
• may not be clear what the best strategy for different markets is best (ethnocentric/ polycentric)

Question 9

pros and cons for polycentric approach to marketing

Answer 9

pros
• more sales and brand loyalty as product more suited
• marketing will be culturally appropriate and get clear message across

cons
• reduction In EoS
• increase in market research and product development costs
• communication may be difficult across the globe

Question 10

How does the marketing mix apply to global markets

Answer 10

PRICE
- lower prices in less economically developed countries

PLACE

• in technologically advanced economies, many methods are available, in less advanced distribution is more traditional (e.g. grocery bought from independent retailers)
• need to continually provide new distribution methods as part of marketing mix

PROMOTION

• consider sophistication technology and prefences
  e. g. in Germany, TV channels are preferred to social media for promoting, unlikely to use social media in Congo, likely to use social media in China as e_commerce is rapidly growing

PRODUCT
- geocentric, polycentric or ethnocentric

Question 11

How does Ansoff’s Matrix link to global markets

Answer 11

the further away from market penetration, the more risk

- especially in highly competitive global markets