Global marketing

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What is a global marketing strategy?
The same products and strategy can be used in all markets
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Why might businesses prefer to use a global marketing strategy?
Producing on a large scale is cheaper, designs can be standardised and there may be economies of scale, product range can be smaller, same marketing campaign, less time spent reearhcing individual markets, less time developing individual products
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Why migh a global marketing strategy be a bad idea?
Some sales will be lost is all segments aren't considered, turnover and profits may not be maximised, marketing tactics or products may cause a negative reaction
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What is glocalisation?
When a business adapts or change its products and marketing plan to suit individual countries or markets.
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What are the benefits of glocalisation?
Sales are likely to increase as each market is specifically targeted and product features are tailored to customer needs and incomes. Turnover and profits are maximised, marketing tactics will suit the local area.
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What are the disadvantages of glocalisation?
Can't fully exploit economies of scale, researching and adapting to each market takes time and is costly, wider product range and multiple marketing campaigns are harder to manage, average costs are likely to be higher.
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What is the ethnocenntric model?
An approach to marketing that looks at the world from the perspective of ones own culture. There is no adaption of products or marketing tactics to suit local preferences.
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What is the geocentric approach?
Sees the world as a potential market with both similarities and differences in domestic and foreign markets. There is some adaption to products and marketing.
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What is the polycentric model?
A model that considers each country to be unique. Each subsidery business developes its own unique business and marketing strategies to suit particular needs.
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Why would businesses need to think about the price of products when enterig new markets?
level of economic development may not permt standard western pricing tactics, price may signify status, level of income of the mass market will affect price.
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Why does promotion need to differ in different contries?
Has to link to the consumer's culture, a celebrity in one country may be unknown in another, sense of humour can be different, have to fit in with local media development and cultural expectations.
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Why do businesses need to think about price when entering new markets?
Traditional methods of distribution may not work especially in rural area.
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Why do businesses need to think about the product when entering new markets?
Needs to take into account different cultures and tastes, serving large markets can reduce development costs, industries with high product development need globally standardised products.
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What is backwards innovation?
Developing low costs products for people on low income. They will have the basic functions of more sophisticated products and may be similar to early versions of the product.
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What is a global market niche?
Are smaller more specialised parts of a global market where customers in more than one country have particular needs that are npt fully met by the global mass market. The product or service is likely to be differentiated from that of the mass market.
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How does price differ in niche and mass markets?
Niche markets have high or premium prices and the mass market prices are low or competitive.
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How do products differ in the niche and mass makets?
In a niche market products are specialised and standardised in the mass market.
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How does promotion differ in the niche and mass makets?
In the nich market it has a narrow focus and a broad appeal in mass markets
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How does place differ in the niche and mass makets?
In niche markets there are limited outlets and in mass markets it is widely available.
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What are subcultures?
Are groups of people who have interests and values in common. They may be based on hobbies, life-styles, ethnic or religious background or just personal enthusiasms and preferences.
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What are the characteristics of successful global niche businesses?
Have a clear understanding of customers needs, high levels of customer service, expertise in the area, prioritise profit over market share, innovative, focus on cost efficiency but not sacrifice quality, more emphasis on the product instead of price.
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What are the advantages of operating in a global niche market?
Focuses on a market segment so a specialist service can be provided, demand can be more price inelastic so higher prices can be charged, direct competition may be reduced, get to know customers better+develop more effective marketing bootsing profits
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What are the disadvantages of operating in a niche market?
Economies of scale can't be achieved increasing average costs, market size is limited, may attract competition or a takeover bid, based on narrow consumer interest which may change suddenly, niche markets can become mass markets.
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Card 2

Front

Why might businesses prefer to use a global marketing strategy?

Back

Producing on a large scale is cheaper, designs can be standardised and there may be economies of scale, product range can be smaller, same marketing campaign, less time spent reearhcing individual markets, less time developing individual products

Card 3

Front

Why migh a global marketing strategy be a bad idea?

Back

Preview of the front of card 3

Card 4

Front

What is glocalisation?

Back

Preview of the front of card 4

Card 5

Front

What are the benefits of glocalisation?

Back

Preview of the front of card 5
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