Global marketing 4.3

Question 1

What is glocalisation?

Answer 1

This is when a business adapts their marketing strategies between different countries. These are used by international businesses

Question 2

What are 2 main benefits of glocalisation?

Answer 2

1) consumers are likely to buy from international businesses if they meet their needs and wants
2) local production can lower costs of production for the business

Question 3

What is an ethnocentric approach?

Answer 3

The marketing strategy in different countries is the same as in the domestic country

Question 4

What are 2 main advantages of an ethnocentric approach?

Answer 4

1.Economies of scale because the same materials etc are being used.
2. Less time and money spent on market research

Question 5

What does an ethnocentric approach depend on?

Answer 5

• How big the businesses brand image is.

Question 6

What are the disadvantages of an ethnocentric approach?

Answer 6

• Consumers may not buy the product if the business hasn’t adapted to their needs
• More publicity in one country could lead to overall damage to brand

Question 7

What is a polycentric approach?

Answer 7

This is when a business adapts its marketing strategies in different countries

Question 8

What are the 2 main advantages of a polycentric approach?

Answer 8

1. Increased global sales because consumers see their needs have been met
2. Increased brand image if the business is being seen to benefit all customers

Question 9

What are the 2 main disadvantages of a polycentric approach?

Answer 9

• Higher costs spend on market research
• Cannot benefit as much from economies of scale

Question 10

What is a geocentric approach?

Answer 10

This is a combination of an ethnocentric and polycentric approach

Question 11

What are the 3 main benefits of a geocentric approach?

Answer 11

1. Higher sales if customer needs are being met
2. Costs will be lower than polycentric because less is spent on market research and marketing
3. Maintain brand image

Question 12

What are 2 main disadvantages of a geocentric approach?

Answer 12

1. Still costly to adapt products
2. A business may not have fully adapted to the market which can impact sales

Question 13

What are global niche markets?

Answer 13

These are a collection of the same niche market in different countries

Question 14

What are 3 main advantages of a global niche market?

Answer 14

1. Minimal competition, more brand loyalty
2. price inelastic means higher prices
3. Spreading risk across several countries

Question 15

What are the 3 main disadvantages of a global niche market?

Answer 15

1. Lower sales so may not be able to benefit from economies of scale
2. Lower sales revenue compared to a mass market
3. Selling to a small number of customers can be risky if demand falls

Question 16

How will a business discover the cultural diversity in different countries?

Answer 16

Market research

Question 17

What are cultural differences and tastes and how may a business adapt these?

Answer 17

This is that in different countries, there are different religions, traditions, interests etc. A business researching these can adapt its 4Ps to suit consumers

Question 18

How does language differ globally and how may a business adapt its 4ps for these?

Answer 18

Every country speaks different languages
Product - use different languages on the products
Promotion - advertising can be in a different language
Place - consideration of the fact that there are many different languages

Question 19

What is meant by unintended meanings?

Answer 19

This is when a brand logo or name in another country has a different meaning than it does in a domestic country
Product - change the name or logo
Promotion - change any adverts, marketing to suit that country and check if anything is offensive

Question 20

Inappropriate translations, branding and promotion

Answer 20

Something in a domestic market may have different meanings in another country which requires intense market research to investigate these