4.3 marketing

global marketing strategy

a business doesn’t differentiate its products or marketing between countries. the same product is sold in many countries with fine tuning such as price or promotion

pros of developing a global marketing strategy

• economies of scale can be achieved in both production and distribution

• power in the market as the brand is well known

• uniformity of marketing practices

cons of developing a global marketing strategy

• differences in consumer needs, wants and usage patterns for products

glocalisation

used to describe products and services that are both developed and sold to global customers but are designed so that they meet the needs of local markets

polycentric marketing approach

adapting to each market to appeal to local customers to maximise revenue e.g. HSBC or KitKat

polycentric pros

• 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

polycentric cons

• product development to adapt the product may increase unit costs

• there will also be additional costs in market research to find out about the market

ethnocentric marketing approach

standardising the product for all the markets → see all domestic and foreign markets as similar. home country believes that their marketing practices are superior to other countries. e.g. Apple

ethnocentric pros

• can benefit from economies of scale- standardised and produced on a large scale

  • costs are lower as there is no investment into product development to adapt to different markets

ethnocentric cons

• 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 sensitivity and may not resonate with local customers in other countries

geocentric marketing approach

mix of polycentric and ethnocentric approaches. utilises the benefits of standardised products but also tailors products to meet the needs of local markets overseas whilst maintaining a consistent brand image. e.g. McDonalds

geocentric pros

• 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

geocentric cons

• costs associated with the product development and menu changes required to meet the needs of the local market

cultural diversity

recognises the ideas, customs, social behaviour of particular people or society in different global markets. e.g. UAE has rules around the consumption of alcohol that businesses need to adhere to

global niche markets

small segments of the global market that are characterised by unique and specific needs and preferences. groups of customers within are sometimes called subcultures

features of global niche markets

• excellent customer service

• innovation

• clear understanding of the wants and needs of customers

• prioritising profits over market share

• emphasising quality

• expertise in product area

ethnocentrism

tendency to view one’s own culture or group as superior to others, and to judge other cultures based on the standards and values of one’s own

cultural factors

beliefs, moral values, traditions, language and laws held by a country (narrow)

social factors

lifestyle, religions, economic health, family structures, education and political systems held by a country

considerations for businesses

• language

• unintended meanings

• cultural differences

• inappropriate branding and promotion

• different tastes

• inappropriate / inaccurate translations