THEME 4: SECTION 3 ( GLOBAL MARKETING)

Question 1

Define GLOBAL LOCALISATION

Answer 1

Adapting marketing strategies between cultures.

Question 2

Define GLOBAL MARKETING STRATEGY

Answer 2

strategythat encompasses countries from several different regions in the world and aims at co- ordinating a company’smarketingefforts in markets in these countries

Question 3

What are the different approaches to global marketing?

Answer 3

• Ethnocentric marketing (no changes to adapt)
• Geocentric marketing (middle ground, changing where necessary but keeping other aspects)
• Polycentric Marketing (adapting and changing completely)

Question 4

2 Advantages of an ETHNOCENTRIC approach

Answer 4

• Economies of scale

- Less costs on research and new promotions

Question 5

2 Disadvantages of an ETHNOCENTRIC approach

Answer 5

• Could cause offence and ruin reputation

- Could decrease demand

Question 6

2 ADVANTAGES of a POLYCENTRIC approach

Answer 6

• Increased demand as consumers specific needs and wants are met
• Possibly charge higher prices

Question 7

2 Disadvantages of a POLYCENTRIC approach

Answer 7

• No economies of scale

- Expensive and could be ineffective if the research is not correct

Question 8

2 Advantages of a GEOCENTRIC approach

Answer 8

• SOME economies of scale

- Easier to execute and control

Question 9

2 Disadvantages of a GEOCENTRIC approach

Answer 9

• The costs of research and adaptation

- unclear which strategies should be used in new countries

Question 10

How can each aspect of the marketing mix be adapted to fit a geocentric or polycentric approach?

Answer 10

• Products: making new products to fit the market or adapting it
• Price: ensuring it meets cultural norms
• Promotion: ensure it is done the right way, some countries prefer TV ADs etc
• Place: some places restrict selling specific things in places like supermarkets.

Question 11

Define GLOBAL NICHE MARKET

Answer 11

= a specialised part of a global market. In one country its relatively small but over several they provide significant demand

Question 12

What are the characteristics of a global niche market?

Answer 12

• customer loyalty is common
• innovative
• offering differentiated products
• deeply understanding customer needs
• extensive research to ensure accuracy

Question 13

Why do GLOBAL NICHE MARKETS exist?

Answer 13

• Cultural diversity = Different cultural groups have needs, wants, values and interests which aren’t being met by global mass markets
• Or a cultural product may be too small in a single niche market in order to make profit, so the business expands into a global niche market.

Question 14

What cultural and social factors should a business consider when marketing abroad?

Answer 14

• Cultural differences
• Different tastes
• Language
• Unintended meanings
• Inappropriate/inaccurate branding
• Accurate translations

Question 15

2 disadvantages of being a GLOBAL NICHE MARKET

Answer 15

• Very risky

- No economies of scale due to such large amounts of differentiaiton

Question 16

What are the features of a global niche market?

Answer 16

• clear focus
• know the target audience
• specialised in what they do
• able to charge higher prices due to differentiations

However. can have low-profit margins and high costs if not careful