4.3 global marketing

what is global marketing strategy

process of planning and promoting a business product to the global market 

what glocalisation

strategy where businesses aim to reach customers globally and also take into consideration the needs of the local market 

what are the different marketing approaches

• domestic/ethnocentric

• mixed/geocentric

• international/ polycentric

whats an ethnocentric approach

domestic market and foreign markets as similar

whats the polycentric approach

The company treats each country as a unique market

whats the geocentric approach

• mix of the polycentric and ethnocentric approach

• benefits of standardised products but also tailors products to meet the needs of local markets overseas while maintaining a consistent brand image

what does marketing mix stand for

four Ps

place

price

promotion

product

how can place (four Ps) be applied to marketing mix

consider best channel of distribution

consider the available technology as many transactions take place via e-commerce

how can price (four Ps)N be applied to global markets

businesses must consider customer incomes, costs of production and taxes

how can product (4 Ps) be applied to global markets

consider how much they should adapt their products to meet new markets overseas

how can promoion (4 Ps) be applied to global markets

• adapted to meet language and cultural differences

what is cultural diversity

recognises the ideas, customs and social behaviour of a people in different global markets 

what are global niche markets

small segments of the global market that are characterised by unique and specific needs

features of global niche markets

expertise in product area

emphasis on quality

excellent customer service

how to modify marketing mix to fit global niches

apply to target audiences

considerations for businesses

• cultural differences

• language

• unintended meanings

Advantages ethnocentric strategy

may simplify decision-making

allows for uniformity in branding

costs less

disadvantages ethnocentric strategy

business could lose sales as it’s not tailored

runs risk of cultural sensitivities

advantages polycentric approach

help develop brand loyalty

tailored to new markets increases success chance

polycentric disadvantages

costs more to adapt, need to research the market to find what consumers want

geocentric advantages

strengths from ethocentric and polycentric

geocentric disadvantages

complex coordination required

what is the marketing mix

plan for using the right blend of product, price, promotion, and place in order to maximise sales