4.3.1 marketing

• global marketing strategy

  process of planning, producing, placing and promoting a business' product and services to the global market
• glocalisation

  • 'globalisation' + 'localisation'
  • a strategy where businesses aim to reach customers globally and also take into consideration the needs of the local market
• different marketin approaches

  1. polycentric
  2. ethnocentric
  3. geocentric
• polycentric approach

  • the international approach
  • business adapt their marketing strategy by tailoring their products to local market
  • the company treats each country as a unique market and develops a customised marketing mix for each market
  • polycentric means having more than one centre
• polycentric - advantages and disadvantages

  advantages:

  • reach every single market
  • large customer base
  • improve reputation = more sales + customer loyalty

  disadvantages:

  • increase unit costs as a result of adapting products in every country
  • also time consuming
• ethnocentric approach

  • a business which believes that a success story in one country can translate in all other countriess which it operates
  • foreign operations are subordinate to domestic markets
  • products sold without adaptation
  • ethnocentrism is the belief if superiority is one's personal ethnic group
• ethnocentric advantages and disadvantages

  advantages:

  • less costs as not adapting products
  • benefits from economies of scale

  disadvantages:

  • not suitall markets = little/no successful sales
• geocentric approach

  • mix of polycentric + ethnocentric approaches
  • branding may be done on a global basis
  • the business accept a world wide approach to marketing and its operations become global
  • in global enterprise, the management establishes manufacturing and processing facilities around the world in order to serve the various regional and national markets through a complicated but well-coordinated system of distribution network
• adapting marketing mix (4Ps) for global markets - place

  • how you distribute products - logistics, delivery costs, are they reliable?
  • identify key locations for high footfall
  • online business/e-commerce
  • convienient and easily accessible
  • translating to different languages
  • building an online presence
• product

  • tailor products to local market in order to meet their needs
  • ethnocentric = keep home country style
  • polycentric = adapt to local markets
  • geocentric = blend global and local strategies
• price

  • higher prices depend of different country's national minimum wage
  • consider consumer income in different countries
  • high disposable income = high sales
  • production costs
  • local taxes
  • consider products life cycle stage in that market
  • adjust for economic conditions (eg. boom vs recession)
• promotion

  • adapt promotion to local language and culture
  • using local celebrities for endorsements
  • choose the most effective promotion method for each market
  • eg, social media works well in some countries, less in others
• ansoff matrix

  helps identify growth opportunities
• four strategies to ansoff matrix

  1. market penetration
  2. market development
  3. products development
  4. diversification
• market penetration

  existing products, existing global markets

  • selling existing products
  • lowest risk strategy
  • builds on brand familiarity and existing customer base
• market development

  existing products, new global markets

  • selling existing products in new markets
  • may require product adaptation for local preferences
  • higher risk: new customers may not know or trust the product

  eg. tesco failed in china due to poor understanding of local consumer habits
• product development

  new products, existing global markets

  • launching new products in existing markets
  • market research to understand customer needs
  • products must be designes and marketed to fit local preferences
• diversification

  new products, new global markets

  • creating new products for new markets
  • high risk due to limited market knowledge
  • requires deep understanding of local market and consumer behaviour
  • success depends on product-market fit