4.3.1 Global marketing strategy Flashcards

1
Q

Global Marketing strategy

A

is the adaptation of a marketing strategy to target all markets on a worldwide scale.

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2
Q

Pros of global marketing Strategy

A
  • You can reach a broader audience
  • Increases brand recognition on a global scale
  • Potentially less risk
  • Access to larger market
  • Economies of scales – more competitive
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3
Q

Cons of global marketing strategy

A
  • There may not be a market for what you sell in every country
  • Different types of legislation
  • Global competition
  • Ignoring the differences in cultures
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4
Q

Glocalization

A

is the adaptation of a global marketing strategy in order to meet the requirements of local geographic markets.
-Think global, act local

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5
Q

Pros of glocalisation

A
  • Increase the chances of success in entering foreign markets – better market positioning
  • Encourage innovation in the economy of the target country – knowledge and skills transfer
  • Offer more jobs for local people
  • Increase the productive capacity of the economy
  • Local access to products – this can provide lower prices due to more competition
  • Offer better access to products and services: more abundant, cheaper and more diverse
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6
Q

Cons of glocalisation

A
  • Requires large investment and resources – need to hire local people and do in depth research on local markets and competition
  • Local market resistance – some consumers may not respond positively to the presence of foreign companies
  • Shutting down local businesses – large MNC’s increases competition and drives prices down
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7
Q

EPG model

A

the EPG model is a framework that’s used to consider marketing approaches used by global firms

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8
Q

Home nation

A

is where the business originated

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9
Q

Host nation

A

is where the target market or subsidiary of the business is based

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10
Q

Ethnocentricity

A

– is where the promotion of the product is undertaken based on the beliefs of the home nation of the business and is presented to the host nation as such

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11
Q

features of ethnocentricity

A
  • Decision making is centralised and key personnel from HQ are sent to oversee marketing operations in other countries
  • Restricts promotional aspects
  • Could be contentious if it offends the local population
  • Often approach ignores local customs and culture
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12
Q

Geocentricity

A

– is where the promotion of the product is undertaken based on a global or worldly point of view. Therefore, it is not based on the perspective of either the home or host nation.

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13
Q

Features of Geocentricity

A
  • Marketing focusses on the benefits for the business on a global basis. It does not matter where the HQ or the subsidiary is located
  • Recognises difference in global markets; aim to build a global brand
  • Products are marketed in foreign countries based on whatever is required for the business to succeed
  • This marketing approach mixes elements of ethnocentric with elements of polycentric
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14
Q

Polycentricity

A

– is where the promotion of the product is undertaken based on the beliefs of the nation in which the business is operating.

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15
Q

Features of polycentricity

A
  • Direct opposite of ethnocentrism, suggesting that the values of the nation being targeted are all important
  • Products are marketed in foreign countries based on the foreign nation’s values, fully taking into account local customers, culture and religion
  • Decision making is decentralised, and key personnel need to be recruited from the nation being targeted
  • Recruitment might be difficult as there is a loss of control of marketing operations. Local knowledge can be used in the marketing; every market requires a different marketing mix
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