4.3 - Global Marketing

Vocabulary flashcards covering Edexcel A-Level Business concepts in global marketing, market approaches, Ansoff's matrix, global niche markets, and cultural/social factors.

Global marketing strategy

The process of planning, producing, placing, and promoting a business's product or service in the global market.

Glocalisation

A strategy where businesses aim to reach customers globally while taking into consideration the needs of the local market, summarized by the phrase 'think global, act local'.

Domestic/ethnocentric approach

A marketing approach based on the belief that home country culture and marketing practices are superior, treating domestic and foreign markets as very similar with no product changes.

Apple (ethnocentric approach example)

A business that sells standardized products across global markets, such as iPhones and iPads, to reduce costs by benefiting from economies of scale.

Polycentric/international approach

A marketing strategy where a business treats each country as a unique market and develops a customized marketing mix for each one.

KitKat in Japan

An example of a polycentric approach where Nestle modified packaging to include cherry blossoms and introduced local flavors like purple sweet potato and matcha powder.

Geocentric/mixed approach

A marketing strategy that combines polycentric and ethnocentric approaches by utilizing standardized products while tailoring them to local markets to maintain a consistent brand image.

McDonald's in India

An example of a geocentric approach where menu items exclude beef and pork due to religious reasons while maintaining standardized items like the Big Mac in Western markets.

Marketing mix

The set of controllable marketing tools—product, price, place, and promotion—that a company uses to promote its brand or product in a market.

Product (in global marketing)

The element of the marketing mix involving decisions on how much to modify or adapt goods to meet overseas market demands through ethnocentric, polycentric, or geocentric approaches.

Price (in global marketing)

The element of the marketing mix where pricing decisions must consider customer incomes, production costs, taxes, product life cycle stage, and the state of the economy.

Place (in global marketing)

The element of the marketing mix focused on identifying the best distribution channel, available technology, and e-commerce platforms to deliver products to foreign consumers.

Promotion (in global marketing)

The element of the marketing mix that must be adapted to language and cultural differences to choose the most effective promotion method and build brand loyalty.

Coke pricing in 2022

An example demonstrating economic impact on global pricing where a Coke cost $2.42 in Finland compared to $0.18 in Egypt.

Ansoff's matrix

A strategic planning tool that helps businesses identify potential growth opportunities by analyzing their product and market strategies.

Market penetration

An Ansoff growth strategy that focuses on selling existing products in existing markets, carrying the least risk.

Market development

An Ansoff growth strategy that focuses on selling existing products in new markets, which carries more risk as customers may not understand the product.

Tesco in China

An example of a market development failure where Tesco opened stores in China but had to withdraw due to a lack of understanding of Chinese consumer habits.

Product development

An Ansoff growth strategy where a business aims to introduce new products to existing markets, requiring market research to identify target market needs.

Diversification

An Ansoff growth strategy involving developing new products for new markets, representing a high-risk approach that requires deep knowledge of local market conditions.

Global niche markets

Small segments of the global market that are characterized by unique and specific needs and preferences.

Subcultures

Groups of customers within niche markets that may be small within an individual country, but form a significant market when combined globally.

Cultural diversity

The recognition of the ideas, customs, and social behavior of a particular people or society across different global markets.

Halal products

Products produced and prepared according to Islamic laws and regulations, serving a high-demand global niche market in Muslim-majority countries.

Emphasis on quality in niche markets

A feature of global niche markets where exceptional quality is required because target customers pay higher prices for high-value products.

Innovation in niche markets

A practice in global niche markets that ensures products remain highly differentiated and maintain a unique selling point (USP).

Prioritising profit over market share

A niche market strategy where lucrative businesses focus on increasing profits to reinvest into improving their specialized products or services.

Expertise in the product area

Building value for customers by employing highly skilled staff who stay up to date with developments in the niche market.

Adapting product for global niches

Modifying specific features to meet niche needs, such as a luxury watch business launching a line of cruelty-free vegan watches.

Adapting price for global niches

Offering targeted pricing, such as matching mainstream prices for organic products or charging premium prices reflecting exclusivity for sustainable fashion.

Adapting promotion for global niches

Using communication strategies that resonate with a niche audience, such as influencer marketing to communicate luxury exclusivity to wealthy buyers.

Adapting place for global niches

Selecting convenient distribution channels for niche buyers, such as offering gluten-free products through local specialty stores and online platforms.

Color white symbolism

A cultural difference example where the color white symbolises purity and innocence in Western cultures, but represents death and mourning in some Asian cultures.

KFC translation error in China

An example of inaccurate translation where KFC's slogan 'Finger-Lickin' Good' was translated into Chinese as 'Eat Your Fingers Off'.

Dolce & Gabbana 2018 advert controversy

An example of inappropriate branding where an advertisement depicted a Chinese model struggling to eat Italian dishes with chopsticks, leading to public outrage.