4.3.1 marketing

what is global marketing

b dosnt difrenciate it’s p / marketing between countires menaing the same p is sold in many countires with small fine tunings ( 4 PS )

what is global marketing in terms of for brands

A MNC views the wourld as 1 market place → creating p that suits wourld auidnace

What impact does global marketing have on B decisions

• the promotional message is the same → reduced average marketing cost →EOS . the only diffrence is sale incentives as it may vary ( discounts )

what is the benefits of global marketing

Economies of scale can be achieved in both production and distribution ·This will mean lower than average marketing costs

·Power in the market as the brand is known

Consistency in brand image Ability to leverage good ideas quickly and efficiently

·Uniformity of marketing practices

What is the drawbacks of global marketing

Differences in consumer needs, wants and usage patterns for products

Differences in consumer response to marketing mix elements. ·Differences in brand and product development and the competitive environment

Differences in the legal environment, some of which may conflict with those of the market

What is glocalisation

combines globalisation + localisation , + used to describe p/s distributed globally but adopted to suit need of local market

what is a glocalisation strategy

it’s recognises consumers taste , presences but laws vary all over the wourld

what is the impact of glocalisation on the local market

MNCs will provide customisation to meet cultural presences EG ; culturally relative media is used to encourage acceptance of foreign p

what is the benefits of glocalisation

MNCs get access to larger culturally different markets

MNCs that follow a glocalisation strategy can compete more effectively in those markets

More demand from customers familiar with those products e.g. customers in India prefer dark chocolate

What Is the drawback of glocalisation

Small local businesses will struggle to complete with the MNCs as they can't get the economies of scale of production

Expensive, slow and complex to launch new products that have to be adapted to the local markets

What are 3 approach theories to global marketing

polycentric , enthnocentric , geocentric

What is the PEG approach

• MNCs need to decide whether p sold in a new international market should be adapted or standardised

what is a polycentric approach

• p adapted to each market , appealing customers to maximise revenue ,

• Adapt marketing mix to maximise sales → putting effort into development + marketing of p → suiting D of locals in diffrent markets

• EG ; each host country is a unique market , each subsidiary b should develop its own marketing strategy , p vary as take into account local tastes

What are the benefits of polycentric approach

Benefits are higher sales due to getting the product right for that marketplace

• Sales are likely to increase, as the product is tailored to meet the needs of customers

• This helps to develop brand loyalty in overseas markets

What are drawback polycentric approach

Drawbacks are the high research and development costs for the adaptations

• Product development to adapt the product may increase average unit costs 

• There will also be additional costs in market research to find out about other markets

what is enthnocentric approach

• P are standardised for all markets to keep costs low with no adaptation for locals

• B sees the domestic + foreign market as similar , believing that the b home country + marketing practices is superior to those of other countries

what is the benefit of using enthnocentric approach

The benefits of this are economies of scale and lower development costs

• Businesses can benefit from economies of scale, as the product is standardised and produced on a large scale 

• Costs are also lower, as there is no investment into product development to adapt products for different markets

What are the disadvantges of using the enthnocentric approach

·The drawbacks are that sales may be lower as the products are not adapted to suit different markets

• The business could potentially lose sales, as the product is not tailored to the needs and wants of markets overseas 

• This approach can lead to cultural insensitivity and may not resonate with local customers in other countries

What is the geocentric approach

• they promote the global brand name but p is tailors to meet locals needs ( mixture of enthnocentric + polycentric )

• Utlising the benefit of standerdized p but also trailers p to meet need of local markets overseas while maintaining a consistent brand image across markets

what is the benefit of using geocentric approach

Benefits are that this strategy can attract higher sales

• Sales are likely to increase, as the product is tailored to meet the needs of customers

• This helps to develop brand loyalty in overseas markets

What are the drawbacks of using geocentric approach

Drawbacks are the higher product development costs than other strategies

• There will be costs associated with product development and changes required to meet the needs of the local markets

What Is the marketing mix

• The marketing mix is a set of controllable marketing tools that a company uses to promote its brands / p in a market

• By adapting marketing mix to meet locals needs , the b effectivly penetrate global markets + build strong global brand

What is product in terms of the 4 PS + how is it adapted

• p known globally are easier to sell in new international market

• B needs to consider how much should they need to adapt thier p to meet D

What is place in terms of 4 PS

• distribution in national markets involves goods being moved in a chain to get the p to the customer in a particulare market

• in oversea markets more parties as p needs to me moved around , where b practices will be diffrent to national markets . EG agents used to sell p in diffrent countires

what is price in terms of 4ps

setting international price is complicated due to dispozible income of population , cost of production , taxes

• considering factore such as traffic , exchange rate flunktutaion , economic situations

what is promotion in term so 4ps

• standardised marketing an be used internationally which reduces cost + make sure brand is known wourld wide .

• advertising messages are adapted due to lanaguge / culture differences

application + adaptation of Ansoff matrix to global market

• Stragetie planning told helping to identify poetnetika growth opportunities by analysing p + market strategies

• expanding outside of domestic market can help a b to penetrate global markets + ahcive LT success

What is market penetration

• selling more p to existing consumers . where marketing teams sees if purchases can increase , is a low risk strategies as customers are loyal through promotions

what is p development

• critical to keep customers engaged , can be used to replace p with a better version / sell complimentary p

• introduce new p to existing market

• market Reaserch Is used to identify target markets needs + presences . ensuring the p resonates with local customers

What is market development

• selling p in new global market ( BRICS ) , so can move into countires that have had trade liberalisation

• can be risky as consumers may not understand business products

what is p diversification

• New p to new market . allows move away from shrinking market into new attractive market where it can use its core comeptientcies

• B may have limited KN about new markets so need deeper understanding of local markets conditions + consumer b