Quick Revision for 30 min 20 marker

What is Emotional Branding?

refers to a business developing a brand based on the/that appeals directly to a customer’s emotional state. 

Emotional branding is when a business develops a brand based on what appeals directly to a customer’s emotional state.

Assess the importance of Emotional Branding (10 Marks)

Emotional branding is important for Deliveroo because it allows the company to differentiate itself from its competitors and connect with consumers on an emotional level. It allows Deliveroo to establish and build a brand identity that fosters feelings of trust, loyalty, and identification with the brand. This in turn helps build a strong connection with customers and improves brand awareness and recognition. Additionally, emotional branding can also lead to increased sales as it creates positive associations in the minds of consumers that can influence their decisions to purchase a product or service. As a delivery and transport company, emotional branding is important for Deliveroo because it allows the company to establish trust with customers. Delivery services are often seen as an impersonal and generic service, but through emotional branding Deliveroo can create a sense of intimacy and connection with customers. This helps to foster a loyal customer base and build brand trust. In this way emotional branding is critical for the long-term sustainability of Deliveroo.

Define commission

Commission refers to paying people a percentage of the value of what they sell. This can create an incentive to ‘oversell’.

What are the globalization effects of INCREASED transportation & communication? (12 marks)

Globalisation in simple words is the economic forces leading to more international trade, which is often based on products with global appeal.

One benefit this has (of INCREASED transportation & communication) is the increase in interconnectivity between countries and different regions, this allows for a faster transfer of resources, people/skilled labour as well as ideas for future innovation including the ability to reach and fulfill the wants and needs of a large target audience.

It also allows the flow and gathering of information to be more efficient and accessible, which can in turn help improve the economic state of certain countries that are still in the process of developing now that the sharing of global expertise and understanding is far more achievable. This helps This helps to develop relationships and understanding between different countries and cultures, contributing to long-term sustainability of the planet and its people.

However, one downside to the increased effects of globalisation on increased transportation and communication is that it can lead to a rise in greenhouse gas emissions and other forms of pollution, which in turn can negatively impact climate change and sustainability.

The increase in resource consumption and waste production can also lead to environmental degradation and unsustainable practices. Additionally, globalisation can also lead to increased disparity between different people and continents in terms of economic and social development, contributing to inequalities and imbalance around the world.

Define Globalisation

The economic forces leading to more international trade, often based on products with global appeal

What’s the difference between Globalisation & Glocalisation?

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

• The term ‘think global, act local’ is often used to describe the strategy of glocalisation.

On the other hand, Globalisation is the economic forces leading to more international trade, based on products with global appeal.

What is Geocentric?

Basing marketing on the wants/needs of consumers globally, perhaps adapting slightly for local tastes

What is Polycentric?

Marketing that is adapted to local needs, e.g Mars pricing Galaxy chocolate at 15p per bar in India. 

What is Ethnocentric?

Marketing based on confidence in your own ethnicity, with no concessions to the tastes of locals

Cons of Geo

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

Pros of Geo

• 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

Cons of Poly

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

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

Pros of Poly

• 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 3 types of MARKETING approaches?

The Domestic/Ethnocentric Approach

• Businesses see the domestic market and foreign markets as very similar

• This approach is based on the belief that the company's home country culture and marketing practices are superior to those of other countries

• There will be no changes to the products for overseas customers and marketing of the product will be the same

  • E.g. Apple sells standardised products across their global markets e.g. iPhone, iPad which helps them to reduce costs as they can benefit from economies of scale

Polycentric/International approach

• Businesses adapt their marketing strategy by tailoring their products to the local market 

• The company treats each country as a unique market and develops a customised marketing mix for each market

  • E.g. KitKat (Nestle) has developed different adaptations of the chocolate to reach different consumers in the international market 

    • The packaging for KitKat in japan was changed to include cherry blossoms, a symbol of good luck

    • Additional flavours such as purple sweet potato and matcha powder were included to appeal to the tastes of the local market

The Geocentric/Mixed Approach      

• This strategy is a mix of the polycentric and ethnocentric approach
  
  

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

  • E.g. McDonald's has a geocentric approach by adapting their menu to meet the tastes and culture of different overseas markets

  • McDonald's do not offer beef or pork in India due to religious reasons. However in the majority of western countries, McDonald's has standardised products such as the Big Mac

Pros of Ethno

• 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

Cons of Ethno

• 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