Theme 4 Topic 7 - Global Marketing

Question 1

Define Global Marketing Strategy

Answer 1

A planned marketing approach to achieve marketing objectives within a worldwide market

Question 2

Define Glocalisation

Answer 2

Involves taking a global approach by targeting a worldwide market but adapting to local tastes and cultures

Question 3

Define Cultural Diversity

Answer 3

The recognition that people across the globe have different interests, behaviours, values and customs

Question 4

Define Localisation

Answer 4

Adapting a product or service to a specific market or location

Question 5

What are the three marketing approaches?

Answer 5

Ethnocentric, Polycentric, Geocentric

Question 6

Define Ethnocentric

Answer 6

Assumes foreign markets are identical to domestic ones and makes little attempt to alter the product for different markets

Question 7

What are two advantages of an ethnocentric marketing approach?

Answer 7

Economies of scale are possible as the product is standardised, No R&D and market research costs involved in adapting to foreign markets

Question 8

What are two disadvantages of an ethnocentric marketing approach?

Answer 8

Market development is risky (Ansoff), The product might not sell well if not adapted to local markets

Question 9

Define Polycentric

Answer 9

Adapting fully to local markets by developing and marketing different products

Question 10

What is an advantage of a polycentric marketing approach?

Answer 10

By tailoring products to local tastes sales should be higher

Question 11

What are three disadvantages of a polycentric marketing approach?

Answer 11

Expensive to develop bespoke products, Lack of economies of scale, Moves the Ansoff category to diversification

Question 12

Define Geocentric

Answer 12

A combination of ethnocentric and polycentric, e.g. the global brand name may be used but products are adapted to local markets

Question 13

What is an advantage of a geocentric marketing approach?

Answer 13

High sales potential as consumers recognise the brand and format but still get products suited to their tastes

Question 14

What are two disadvantages of a geocentric marketing approach?

Answer 14

Higher cost of product development, More complex to manage different supply chains etc.

Question 15

Define Global Niche Market

Answer 15

A smaller segment of the global market where consumers have specific needs and wants

Question 16

What are four features of global niche markets?

Answer 16

Lower competition, Higher prices, Highly skilled staff and expertise is usually needed, Emphasis on quality to satisfy the consumers

Question 17

What are six considerations for businesses?

Answer 17

Cultural differences, Different tastes, Language, Unintended meanings, Inappropriate/inaccurate translations, Inappropriate branding and promotion