4.3 Global Marketing

• Glocalisation:

  The process of adapting a product or service which is being sold globally to suit the needs of a local market while retaining its original characteristics.

  a product or service that is developed and distributed globally but is also adjusted to accommodate the user or consumer in a local market
• Different Marketing Approaches to Global Markets

  1. Ethnocentric (Domestic)
  2. Polycentric (International)
  3. Geocentric (Mixed)
• Ethnocentric (Domestic)

  • Same products everywhere
  • Assumes what works in home markets will also work in international markets
• Polycentric (international)

  • recognising every market is different and requires different marketing mix
• Geocentric (Mixed)

  • recognises difference is National markets
  • main aim is to build global brand
• Global Niche Markets

  • refer to particular segments within a larger market that cater to a specific, specialised group of consumers across various countries.
  • often have unique or uncommon products or services.
• Advantages and Disadvantages of global niche markets:

  • competitive advantage: business obtains deeper understanding into niche market which makes it harder for larger companies to enter the market and compete directly
  • less competition - improve profit margins
  • less likely to achieve economies of scale due to smaller production scales
• Key Characteristic of Global Niche Markets:

  • cater to customers who desire products/services which are different from mainstream providers
  • therefore allows premium pricing strategies to be able to cover higher unit costs (from producing on smaller scale)
• Advantages and Disadvantages of Polycentric Approach

  • better cultural understanding: customers more likely to buy since product/services it catered to their local needs
  • Increased costs and time wasted due to managing operations in each country to create different products
  • increased product development and market research increases costs and time
  • loss of sales since business is not differentiated from local competition
• Advantages and Disadvantages of Ethnocentric Approach

  • Standardisation provides significant economies of scale and much lower marketing costs since the same product is advertised everywhere
  • Little to no research required for new markets
  • Risk of losing sales as business isn't market orientated