Theme 4 - 4.3.1 - Marketing Flashcards
What are the 4 Ps of marketing ?
- product
- price
- place
- promotion
What are the 2 approaches to marketing in a global marketplace ?
Global marketing and glocalisation
Whats the global marketing strategy ?
• A global marketing strategy means that a business doesn’t differentiate its products or marketing between countries.
• The same product is sold in many countries with some fine tuning of the product price, promotion etc. - like Oreo like to advertise their products in Venezuela online and in China they like to do it on TV because the Chinese see products advertised on TV as better
Like Ikea, Coca cola
Whats a Global brand ?
A global brand viewers the world as a global marketplace and creates products that will suit a world audience - like for example Microsoft is the ideal global brand as all it needs to do is adapt the languages and adjust the cost for the region and adjust the marketing to suit the area
What are some decisions made in global marketing ?
In global marketing the promotional message may be the same all over the world leading to reduced average marketing costs, economies of scale
The only difference might be that sales incentives may vary in different countries
What are the advantages to global marketing and what are the disadvantages ?
Advantages:
• Economies of scale can be achieved in both production and distribution
• This will mean lower than average marketing costs
• Power in the market as the brand is known
• Consistency in brand image
• Ability to leverage good ideas quickly and efficiently
• Uniformity of marketing practices - as all the products are marketed similarly
Disadvantages:
• Differences in consumer needs, wants and usage patterns for products
• Differences in consumer response to
marketing mix elements.
• Differences in brand and product
development and the competitive environment
• Differences in the legal environment, some of which may conflict with those of the market
Whats an example of a global marketing brand ?
Disney
Disney will concentrate on selling their films to cinemas in counties where there is an existing film distribution and similar media infrastructure
They may be able to use the same promotional message for their film in each country reducing the average cost of marketing
What is glocalisation ?
Glocalisation is a combination of the words globalisation and localisation and is used to describe products and services that are both developed and sold to global customers but designed so that they suits the needs of local markets so for example a Big Mac would taste differently in different places around the world and McDonalds would have a list of different products in different regions to suit the consumers taste - such as in India there are a lot more vegetarian options as the people there like vegetarian dishes more or for example in some places they might have more chicken products than beef as there chicken is eaten more etc
A business needs to think global but act local if they are following this strategy
Products/services are designed to benefit local markets whole at the same time being developed and distributed on a global level
Whats the PEG approach to global marketing ?
PEG:
Polycentric - Adapt to each market to appeal to local consumers to maximise revenue - adapting the marketing mix to maximise sales in different countries - the businesses in the different countries are unique and they develop their own marketing strategy - like how should they market the new just french McDonald’s item
Ethnocentric - Standardise the product for all markets to keep costs low - products sold without adaptations
Geocentric - a mixture of the two - the business can have some of the advantages of the ethnocentric approach to get EOS but it would cater for needs of individual markets to maximise sales - branding may be done on a global basis
