Theme 4 - Global marketing Flashcards
Global marketing stratergy
The process of planning, producing, placing and promoting a business producy or service to the global market
Glocalisation
The stratergy where businesses aim to reach customers globally and take into consideration the local markets
Think global, Act local
* Stratergies adapted to the needs of different countries they sell to
* Can lead to local production - lower production costs for the business
* The amount a marketing stratergy varies depends on the business and the products it sells
Ethnocentric approach
This marketing approach treats all markets as the same and with little to no adaptations to local tastes
Assumes that their global marketing strategry is good enough for all markets as its superior
Same in domestic and global markets
Advantages and Disadvantages of ethnocentric marketing approach?
Advantages:
* Benefit from eos as product is standaralised - produced on a large scale
* Use same marketing and promotional tools worldwide
* Less time and money spent on market research for new markets
* Less marketing on maintaining brand image
* Easier to deal with suppliers and distributers - well known brand
* Customers often prefer to but from global brands - develop brand loyalty overseas
* Sales are likley to increase as the product is tailored to meet the needs of customers
Disadvantages:
* There will be costs associated with the product development and menu changes required
* The business could potentially lose sales as product is not tailored to the needs and wants of market overseas
* Can lead to culturaly insesivitty and may not resonate with locak customers in other countries
Polycentric approach
This approach has different products and marketing stratergies in each country - tailoring their products to the local market
The company treats each country as a new market that is unique and develops customised marketing mix for each market - with the use of market research
Advantages and Disadvantages of polycentric approach
Advantages:
* Sales likley to increase as the product is tailored to meet customer needs
* Helps to develop brand loyalty in overseas markets
Disadvantages:
* Product development to adapt the product will increase costs - avg unit costs
* Additional costs in market research
Geocentric approach
This strategry is a mix of polycentric and ethnocentric - is an example of glocalisation - global focus on the ethnocentric approach but keep it local with polycentric approach
The global brand is the same in each country but marketing is adpated to suit local customers
Advantages and Disadvantages of Geocentric approach
Advantages:
* Sales are likley to increase as the product is tailored to meet the needs of customers
* This helps to develop brand loyalty in overseas markets
* Maintain brand image
* Save costs and use money elsewhere in business
Disadvantages:
* There will be costs associated with the product development and menu changes required to meet the needs of local market
* Fewer changes to eos
Cultural diversity
Recognises the ideas, customs and social behaviour of particular people or society in different global markets
Businesses need to take into account the different cultural behaviours and customs when operating in overseas markets
Global niche market
Small segment of the global market that are characterised by unique and specific needs and preferences
Several small niche markets from different countries
A business might sell to a global niche market if a single niche market is too small to survive and make profit
Subculture in gnm?
Groups of people within these markets are sometimes referred to as subjculture may be small within an individual country when when combined across the world the number of customers may be significant
What are the different features of global niche markets?
Excellent customer service
Innovation
Prioritising profit over market share
Emphasis on quality
Clear understanding of the wants and needs of customers
Excellent customer service
- As customers are usally paying higher prices for products/services thet expect exceptional customer service
Innovation
- Innovation ensures that products are highly differentiated and maintain a usp that meets the needs of the target auidence
Prioritising profit over market share
- Niche markets are lucrative and businesses focus on increasing profit that they can reinvest into improving their products/services
Emphasis on quality
- Businesses need to ensure the quality of their product is exceptional as they are targeting wealthier customers who pay for high value products
Clear understanding of the wants and needs of customers
- The business may have relativley few customers so needs to ensure the needs and wants of these customers is fully understood
Advantages and disadvantages of global niche markets?
Advantages:
* May face minimal competiton, often have high customer loyalty
* Products usually price inelastic - charge high prices - maximise profits
* Risks can be spread over manyt narkets
Disadvantages:
* Low sales volume - no eos - high unit cost production
* Low sales volume - less recnue
* If firm sells to limited number of niche - higher risk - fall in demand in one country can mean firm struggles to survive
* High profits may attract competion - reducing firms market share and revenue
Why do businesses need to consider cultural and social factors in marketing?
By understanding cultural differences, adapting to local tastes, using accurate translations and avoiding inappropriate branding and promotion, businessess can build strong relationships with customers and achieve long term success
What are the different factors ?
Cultural differences
Different tastes
Langauge
Unintended meanings
Inappropriate or inaccurate translations
Inappropriate branding
Cultural differences
- Businesses must be aware of how businessess and customers interact in new global markets
- Businesses need to understand cultural differences in areas such as values beleifs, customs and tradtions and adapt their marketing stratergy accordingly
Different tastes
- Tastes and preferences vary greatly between cultures and regions
- Businesses must ensure that their products and services are adpated to meet local preferences
Langauge
- Businesses must make sure that their marketing messages are translated accuratley and appropriatley
- This includes understanding langauge naunces and idioms
- Need to think about their non-verbal communications and body langauge as meaning can vary
- The cost of translators is high for businesses
Unintended meanings
- Unintended meanings can arise when businesses use images, symbols or langauge that have different connotations in different cultures
