Help
Options
Didn't know it?
click below
click below
Knew it?
click below
click below
Don't Know
Remaining cards (0)
Know
retry
shuffle
restart
0:00
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
Global Marketing 4.3
Theme4
| Term | Definition |
|---|---|
| Global marketing strategy | The process of adjusting a company's marketing strategies to reflect conditions, consumer tastes and demand in different countries. |
| Glocalisation | A combination of 'globalisation' and 'localisation'. It involves the development and sale of products to customers around the world which reflect specific local customs, tastes and traditions. e.g. McDonald’s in Japan has the Teriyaki McBurger |
| Ethnocentricity | A business which believes that a success story in one country can translate to all other countries in which it operates. Products sold without adaptation. |
| Polycentricity | A marketing approach where the promotion of the product is undertaken based on the beliefs of the nation in which the business is operating. |
| Geocentricity | Where the promotion of the product is undertaken based on a global or worldly point of view. |
| Cultural Diversity | A range of different societies or people of different origins, religions and traditions all living and interacting together. |
| Global Niche Market | These are subcultures in world society. These share common interests and can be identified as market segments on a global scale e.g. Harley Davidson |
| Cultural/social factors | The lifestyle, customs and values of a group of people. |
| Cultural differences | Occur because different types of people have different lifestyles, customs and values. |
| Benefits of Ethnocentric | Lower costs of development and production/Economies of scale/Savings on raw materials can be made |
| Drawbacks of Ethnocentric | Product may not sell well/Doesn't take into account national and cultural differences |
| Benefits of Polycentric | Targeted products/Higher sales |
| Drawbacks of Polycentric | More expensive/Difficult to compete with established local brands/Higher costs of development |
| Benefits of Geocentricity | Tailors products to local needs/Higher sales |
| Drawbacks of Geocentricity | Higher costs of product development |
| Features of a global niche market | Higher prices/emphasis on quality/ expertise in that product area/ emphasis on customer service |
| Examples of cultural differences | Time differences In some countries it may be expected to call people by their first names Give gifts: bigger gifts for senior members, equal gifts for employees Holidays: may be at a different time of the year |
| How do Business meetings differ in China to the UK? | Business meetings typically start with pleasantries such as tea &general conversation about the guest’s trip to the country,accommodations & family. The Chinese host will give an indication for when the meeting is to begin & when the meeting is over. |
| How do Business Meetings in India differ to the UK? | important to be on time for meetings. Personal questions should not be asked unless the other individual is a friend/close associate. Titles are important e.g. doctors should be addressed accordingly. Public displays of affection are inappropriate |
| Why would a business target a global market niche? | All businesses have fixed costs, niche business the fixed costs are higher If the business is selling in a niche then why not sell to this niche across the world and reduce the average costs and spread the fixed costs over more units sold |
| What are the advantages of a global niche market? | There is less competition and greater customer loyalty in niche markets. Prices are likely to be higher and therefore profits may be greater. Risk may be reduced Specialist products reduce PED and premium prices may be possible |
| What are the disadvantages of a global niche market? | Co-ordination and communications may be more difficult across differing brands and markets Some products may require unique ingredients or production techniques reducing the scope for economies of scale |
| How does the price element of the marketing mix change with global niches? | Niche markets offer highly specialised products and can therefore charge premium prices |
| How does the place element of the marketing mix change with global niches? | Niche products can meet a global audience through websites or agents may also be used to sell in new countries to keep costs down |
| How does the promotion element of the marketing mix change with global niches? | In a global niche market the promotion may be more targeted and subtle than in a mass market. Brands have to be careful not to devalue the brand image by discounting |
| How does the product element of the marketing mix change with global niches? | The benefits offered by the product and all its features need to be right for the niche market The product may be designed for a very specific customer in mind e.g. Vegan Watches |
| What is Global Marketing? | Viewing the world as a global marketplace Creating products that will suit a world audience Microsoft is the ideal global product, all it needs to do is adapt the languages, adjust the cost for the region and fine tune the marketing to suit the area |
| What are the advantages of Global Marketing? | EOS in production and distribution Lower average marketing costs Power in the market as your brand is known Consistency in brand image Uniformity of marketing practices |
| What are the disadvantages of Global Marketing? | Differences in consumer needs, wants and usage patterns for products Differences in consumer response to marketing mix elements Differences in the legal environment, some of which may conflict with those of the market |
| Give an example of a product that has been adapted for the Global Market | Coca-Cola makes its products sweeter for some markets to take account of local tastes. However, In Canada it has taken the decision to make it less sweet to bring it in line with other countries |
| In Global Marketing a product can be standardised. What are the benefits of a product having international standardisation? | International standardisation has its own advantages. As people travel the World, they can be assured that wherever they go the product that they buy from the business will be same and that it will have the same, standard benefits. |
| In Global Marketing the place element of the marketing mix has to be adapted. Why? | In an overseas market there will be more parties involved because the goods need to be moved around a foreign market where business practices will be different to national markets. |
| Why is an MNC in a Global Market unlikely to have a standardised price? | It is unlikely that a MNC will attempt to gain the same price in Mexico or Brazil as it does in Germany or France due to the disposable income of the population |
| Why will businesses adapt the price element of the marketing mix in a Global Market? | Business needs to consider factors such as tariffs or exchange rate fluctuations, disposal incomes of the target market and the currency they want to be paid in and the general economic situation of the country and how this will influence pricing. |
| Why will businesses adapt the promotion element of the marketing mix in a Global Market? | Advertising messages in countries may have to be adapted because of language, cultural attitudes&religious practices. What works in one country can cause offence in another – can’t promote white bridal wear in India its worn as a colour by mourners |
| Global businesses must consider various cultural and social factors to effectively market their products/services in different countries and regions. State three. | Cultural differences/Unintended meanings/Different tastes/Language/Inappropriate branding/Inappropriate translations |
| Explain what is meant by unintended meanings | Unintended meanings can arise when businesses use images, symbols, or language that have different connotations in different cultures E.g. The colour white symbolises purity and innocence in Western cultures, but it represents death some Asian cultures |
| Give an example of inappropriate branding/promotion | In 2018, A Dolce & Gabbana advert showed a Chinese model attempting and failing to eat various Italian dishes with chopsticks. People were outraged over the depiction of Chinese people as lacking refinement and an understanding of culture |
Created by:
durquhart1
Popular Business sets