4.3-D

• Global Marketing Strategy


  the process of adjusting a company's marketing strategies to reflect conditions, consumer tastes and demand in other countries

  -can involve a business having offices in different countries, but process is also facilitated by growth of internet.
• Glocalistion


  involves adapting to local expectations in order for a business to succeed to an international market.
• term to descibe glocalisation

  'think global, act local'

  it suggests businesses should aim to reach potential customers around the world, but need to adapt to local tastes, customers and traditions if they want to succeed.
• Ehnocentric (domestic marketing) approach

  when overseas markets are seen as similar to domestic markets + assumes that what is good for the domestic market will be good for global market.
• e.g of ethnocentric approach

  Businesses using this approach make little to no attempt to adapt their product for different markets

  - Apple-iPhone, iPad

  - Rolls Royce cars
• Pros of Ethnocentric approach

  + gain economies of scale , as product is standardised so scale of production is larger + so save money on raw materials.

  + no development costs involved in adapting the products.

  + Don't have to do expensive + long research +product development, so average costs can be reduced and lead to lower prices and increased competitiveness.
• Cons of Ethnocentric approach

  -Product may not sell if its not adapted to local market.

  -risky as may not appeal to local market.
• Polycentric (international) Approach


  Businesses adapt their product to the local markets in which they plan to sell the product.

  involves developing and marketing different products for the demands of local customers in different markets
• Procs og Polycentric appproach

  Product should sell well. By tailoring products to specific customer needs, the product can be targeted precisely within the particular market. - Higher Sales
• Cons of Polycentric Approach

  - Lies in the cost involved, developing bespoke products is expensive and these costs can be so high that the project itself is jeopardised.

  - difficult to compete with established local brands.
• Geocentric (mixed) Approach


  -businesses use combination of ethnocentric and polycentric.

  -This 'glocalization' approach is used by many multinational corporations, and is summed up by 'think global, act local'

  - business strategy is to maintain + promote the global brand name, but to tailor products to local markets.
• 1 pro and con of geocentric approach

  + tailored product to local tastes + needs - high sales

  -high cost of product development
• marketing mix


  is the set of plans that a business uses to achieve specific marketing objectives. - to attract customers to a business.

  - its used in global markets + must be considered part of global marketing strategy.
• Price


  -Decisions around price need to take into account local factors such as incomes, taxes, rent etc.

  - Its unlikely that a business will charge same price in all markets - can depend on what competitors price.

  - price can also reflect different local factors e.g. wages, taxes
• Product


  is to what extent should a business modify or adapt its product for global markets.

  - there's different approaches to how business take their product international.
• Promtion


  When promoting products in global marketers need to be conscious of language differences - how to promote themselves.
• Place


  how do consumers buy their products in local markets
• Ansoffs matrix


  is a strategic tool to help a business achieve growth, can apply to global markets + help to inform decisions around marketing strategy.
• Ansoffs matric - risk

  -Risk can become greater the further a firm extends from its core of existing products + consumers

  -Can be even worse when extend to international markets where expertise of local conditions + tastes might be less secure.
• Market Penetraion


  where a business adapts products for markets in which it already operates.
• Market development


  involves the marketing of existing products in new markets.

  - can be complex as customers from different regions of the same country, + different countries may have different tastes + preferences.

  - they rely heavily on understanding of local habits, tastes + needs.
• Market development 2

  -Its often necessary to make slight modifications to suit the new market e.g. language + labelling.

  - refining the existing product to fit in the global market is an e.g. of a market development strategy.

  - Also of glocalization where products are modified to local tastes.
• Diversification


  occurs when new products are developed for new markets.

  its very risky - due to business may lack knowledge of new market.
• Cultural Diversity


  is the difference in ideas, customs and social behaviour of a particular people or society in global markets.
• Global Niche markets


  global customers that have unique and specific needs and preferences that are not met by the global mass market.
• Features of global niche market

  - Clear understanding of needs + wants in market segment

  - an emphasis on quality

  - excellent customer service

  - expertise in the product area

  -prioritising profit rather than market share

  - Innovation
• Desirable - internet + e-commerce

  - Important marketing tool

  - Important to spread info

  - able to spreas into foregin market + create and meet local demands otheweise wouldve been impossible.
• Desireable- Social media and Ease of travel

  - New brand of commentators e.g. Vloggers promote niche brands to subscribers.

  - Well known global brands can be found everywhere.
• Cultural Diversity- explained


  differences in languages e.g. Eu made English more common.

  - may influence way product is marketed e.g. product name in one country may have totally different meaning in another

  - colours have different meanings
• Inaccurate translations


  lead to serious consequences for businesses, including loss of credibility, legal implications and damage to brand reputation.
• Marketing mix - Product

  Emphasis on quality e.g. luxury cars, watches
• marketing mix - price

  charge higher prices by providing product not for mass
• marketing mis - promotion

  based around brand name and reinforcing exclusivity of the brands, need to be more targeted than in mass markets, language differences need to be considered as product may need to be re-branded
• Marketing mix - Place

  Niche markets often more careful when selecting distribution channels for their products particular important where exclusive brands involves, networks of exclusive dealers common method selling product globally.
• Pros og Niche marketing

  - Prices higher than mass markets, demand is more price inelastic.

  - Product-distributed through specialised retailers or directly to consumers - positive image.
• Cons of Niche Marketing

  - products sell in relatively low volumes compared with mass, so profits need to be high to make worth while.

  - must be large enough to support business and specialist distribution.

  - may prevent economies of scale that compete with larger competitors.
• Global niches exist


  where the local market for a product is too mall to be profitable but globally market is very viable.
• Ethnocentrism


  To market effectively in other countries. Businesses must overcome ethnocentrism.

  The tendency of people to view their own cultures, ethics + norms as superior. The evaluation of other cultures according to preconceptions originating in the standards + customs of ones own culture.
• Differing tastes

  Businesses may adapt their products in different markets, due to legal requirement's, religious beliefs and differences to taste due to local variants
• Why is it important for a business to understand cultural and social factors in global marketing?

  By understanding cultural and social factors and adapting accordingly, businesses can build strong global customer relationships and achieve long-term success.