4.3.1 Marketing Approaches

• What are the two main global marketing approaches?

  Standardisation and localisation
• Standardisation involves using the same marketing strategy across all countries
• Standardisation is always the most cost-effective global marketing approach.
• What is a key disadvantage of standardisation in global marketing?

  May not suit all markets
• Localisation involves tailoring the marketing strategy for each country
• Localisation enhances customer engagement by catering to local preferences.
• How does the choice between standardisation and localisation affect revenue growth?

  Depends on initial revenue
• The choice between standardisation and localisation depends on the product, target markets, and company resources
• Match the marketing approach with its characteristic:

  Standardisation ↔️ Cost-effective

  Localisation ↔️ Enhances customer engagement
• What are the two primary approaches to global marketing strategies?

  Standardisation and localisation
• Standardisation in global marketing uses the same strategy across different countries
• Standardisation is cost-effective but may not suit all markets.
• What is a key advantage of localisation in global marketing?

  Enhanced customer engagement
• Standardisation ensures a consistent brand image
• Localisation can lead to higher costs and complex management.
• Match the factor influencing global marketing with its description:

  Product Type ↔️ Localise for culturally specific items

  Cultural Sensitivity ↔️ Essential for localised campaigns

  Budget Constraints ↔️ Standardise for cost-effectiveness

  Competitive Landscape ↔️ Localise to compete
• Cultural sensitivity is essential for localised marketing campaigns.
• Why might a luxury skincare company localize its marketing strategy?

  Adapt to local skin types
• Standardisation may not suit the specific needs of each market.
• What is a disadvantage of adapting a marketing strategy for each country in localisation?

  Complex management
• Order the factors influencing global marketing approach selection:

  1️⃣ Product Type

  2️⃣ Cultural Sensitivity

  3️⃣ Target Market Preferences

  4️⃣ Competitive Landscape

  5️⃣ Regulatory Environment

  6️⃣ Budget Constraints

  7️⃣ Technological Infrastructure
• Luxury or culturally specific products are often best suited for localisation
• What is an example of a company that localizes its marketing to adapt to local beauty standards?

  Luxury skincare company
• Standardisation can result in a consistent brand image but may not resonate with all cultures.
• What is a key advantage of localisation in global marketing?

  Suits local needs
• Coca-Cola uses standardisation for its brand image but localises its marketing
• Match the company with its global marketing approach:

  Coca-Cola ↔️ Standardisation and localisation

  McDonald's ↔️ Localisation

  Apple ↔️ Standardisation
• What mathematical formula is used to calculate the success of Coca-Cola's dual marketing approach?

  $S =$ \frac{\text{Global Sales} + \text{Local Sales}}{\text{Total Consumers}}
• McDonald's adapts its menu to suit local cuisine and tastes.