4.3.1 Marketing

• Global strategy is when a business produces a product and sells the same one globally e.g Mercedes design and manufacture cars in Germany and sell them throughout the world to a global market
• Global Localisation is when a business design the product specifically for that country e.g General motors design large cars for America where there are a lot of straight roads and fuel is cheap,but in Europe where roads are smaller and fuel costs more,they sell smaller good handling and fuel efficient cars.
• Ethnocentric (domestic) approach is the same as global strategy

  Polycentric is the same as global localisation
• Ethnocentric (domestic) approach

  This is where overseas markets are seen as identical or very similar to domestic markets. Therefore,they assume that what has been successful in domestic markets will be good in the overseas market.

  E.g Iphone,Rolls Royce cars,PS5
• Advantages and disadvantages for ethnocentric/global strategy

  + The firm can reap economies of scale (don't need to adapt their product,increase scale of production)

  + No development costs incurred in new markets

  -The product may not be suitable for local market

  -Marketing may not be appropriate for the local consumers
• Polycentric (international) approach

  Businesses plan and adapt their product to meet the needs of local consumers. This involves developing and marketing different products for different markets.
• Advantages and disadvantages for Polycentric/global localisation

  + By tailoring the product and marketing to consumers,this should increase sales

  - Higher R&D,production and marketing costs - EOS cannot be reaped
• Geocentric (mixed) approach

  This is where a business uses a combination of ethnocentric and polycentric marketing approaches. This is sometimes known as 'glocalisation'

  For example McDonalds use ethnocentric as they offer very similar menu everywhere,but in India they have to adapt it due to culture
• Geocentric

  + Try to get the best of both worlds maximise sales whilst keeping costs low

  - Higher costs but not as high as ethnocentric
• Ansoff's matrix applied globally,in the case a new market is a new country