4.3.1 Marketing

• What is glocalisation?

  A strategy where businesses aim to reach customers globally and also take into consideration the needs of the local market.
• What are the 3 main global marketing approaches?

  • Domestic/ethnocentric
  • Mixed/geocentric
  • International/polycentric
• What is the domestic/ethnocentric approach?

  • Businesses see the domestic market and foreign markets as very similar.
  • It's based on the belief that the company's home country culture and marketing practices are superior to those of other countries.
  • No changes to the product or marketing.
• What are the advantages of the ethnocentric approach?

  • Economies of scale as the product is standardised and produced on a large scale.
  • Costs are lower as there is no investment into product development to adapt products for different markets.
• What are the disadvantages of the ethnocentric approach?

  • Potential loss of sales as the product isn't tailored to the needs and wants of overseas markets.
  • This approach can lead to cultural insensitivity and may not resonate with local customers in other countries.
• What is the 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.
• What are the advantages of the polycentric approach?

  • 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 disadvantages of a polycentric approach?

  • 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.
• What is the geocentric/mixed approach?


  • This strategy is a mix of the polycentric and ethnocentric approach.
  • This approach utilises the benefits of a standardised products but also tailors products to meet the needs of local markets overseas while maintaining a consistent brand image across markets.
  • E.g McDonalds do not offer pork or beef in India due to religious reasons. However, in many western countries McDonalds has standardised products such as the big mac.
• What are the advantages of a geocentric approach?

  • 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 disadvantages of a geocentric approach?

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