Theme 3 - Responding to global demand

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  • Created by: becky.65
  • Created on: 16-02-18 09:50
What is a global marketing strategy?
It means that the same products and strategy can be used in all markets
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What are some positive aspects of a global marketing strategy?
Producing on a large scale is cheaper so there may be economies of scale, product range can be smaller, less time and money on market research, less time spent developing individual market's products
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What are some negative aspects of a global marketing strategy?
Some sales will be lost if not all segments are catered for so profits may not be maximised, marketing tactics or products may cause negative reactions from some market segments
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What does global localisation mean?
Although the business operates on a global basis, it may adapt or change its products and marketing plans to suit individual countries or market segments
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How can businesses plan their marketing strategies to fit individual market preferences?
It must take into account local culture norms, fashions and individual tastes and promotion strategies must fit in with local media availability
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What does glocalisation mean?
It emphasises the idea that a global product or service is more likely to succeed if it is adapted to the specific requirements of local practices and cultural expectations
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What are some positives of glocalisation?
Sales are likely to increase as each market is specifically targeted, profits are maximised and marketing tactics and products are suited to the local situation
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What are some negatives of glocalisation?
The business cannot exploit economies of scale, market research and product development can be costly and take time, wider product ranges are harder to manage, average costs are likely to be higher
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For what type of business does a global strategy work best for?
For an iconic brand, such as Coca-Cola, as brand recognition is universal and its image is world known
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What are the three difference approaches to global markets?
The domestic approach (ethnocentric model), the mixed approach (geocentric model) and the international approach (polycentric model)
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What is the ethnocentric model?
All products and marketing tactics are adapted to suit local preferences and tastes
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What is the geocentric model?
It sees the world as a potential market with both similarities and differences in domestic and foreign markets. An effort is made to integrate world market strategies and also unique market strategies
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What is the polycentric model?
No adaptation of products and marketing tactics to suit local preferences and tastes: uniform approach world-wide
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What are the four factors that dictate the approach to the marketing strategy?
Price, product, promotion and place
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How can pricing strategies differ for different countries?
They are important in emerging markets as disposable income is lower so western pricing tactics may not work so products may need to be priced lower. For luxury goods, a premium price may need to be used to signify status of the good/purchaser
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How can a cheaper pricing strategy not always work?
Consumers may be aware that cheap can mean poor quality, so the product may not sell and in China, cheaper prices may signify 'fake' rather than higher priced 'genuine' items
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Why might a product need to be adapted to suit local culture and conditions?
Food and drink products must be adapted for different cultures and tastes, technical or safety regulations may be different, clothing manufacturers need to consider sizing, backward innovation can reach people on low incomes and be very profitable
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When might a product not need to be adapted for different markets?
Industries with high product development costs and changing technology need globally standardised products so development costs can be recovered and known brands do not need to change for different markets
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Why might promotions need to be adapted to suit local culture and conditions?
Sense of humour can be different, it has to fit in with local media development and cultural expectations, language has to be accurately translated and images non-offensive, the use of celebrities and music must be good, extensive market research
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Why must place be taken into consideration when distributing into a new market?
Potential consumers may be isolated and distant from shops, internet use is lower and reduces the scope for online retailing, distribution of goods can be a problem with poor infrastructure and it can also mean supply chains are unreliable
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Why is branding so important in global markets?
The brand will be successful if the product is superior to others, it adds value to the product and people will be willing to may more, it provides consumers with visible status symbols, Unilevel creates local brands to meet local needs
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Other cards in this set

Card 2

Front

What are some positive aspects of a global marketing strategy?

Back

Producing on a large scale is cheaper so there may be economies of scale, product range can be smaller, less time and money on market research, less time spent developing individual market's products

Card 3

Front

What are some negative aspects of a global marketing strategy?

Back

Preview of the front of card 3

Card 4

Front

What does global localisation mean?

Back

Preview of the front of card 4

Card 5

Front

How can businesses plan their marketing strategies to fit individual market preferences?

Back

Preview of the front of card 5
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