Globalisation vs. glocalisation 3.3.5 HARRIET BENNETT

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  • Created by: Harriet
  • Created on: 10-04-15 15:15
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  • global strategy vs. global localisation 3.3.5
    • global marketing strategy
      • But
        • some sales will be lost if not all segments are catered for
        • Turnover & profits mat not then be maximised
        • Marketing tactics & or products may cause negative reactions from some segments of the market
      • global marketing strategy means that the same products & strategies are used in all markets
      • producing large scale is cheaper, designs can be standardised& there may be economies of scale
      • the product range can be smaller
      • the same marketing campaign can be used everywhere
      • less time has to be spent on researching individual markets
      • less time is spent on developing individual products for individual markets
      • for most businesses the global marketing strategy will not be effective & some degree of adaptation to local conditions & preferences will be needed
    • global localisation
      • But
        • the business cannot fully exploit economies of scale
        • researching each market & adapting or developing products takes time & is costly
        • wider product range & multiple marketing campaigns are harder to manage
        • Average costs are therefore likely to be higher
      • market segments will differ in nature, cultural norms, fashions & individual tastes. the marketing plan must take into account customers' expectations & aspiration
      • promotion strategies must fit with local media availability. potential customers have to be identified & then promotion is focus on the media they have access to
      • Glocalisation means that even when the business operate globally, the products & marketing are adapt to local needs & tastes
      • sales are likely to increase as each market is specifically targeted. products tailored to local needs & income. promotion reflects local media
      • turnover & profits & maximised
      • marketing tactics and/or products are ideally suited to the local situation

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