4.3- Global marketing

• Marketing strategy is made up of the four ps in the marketing mix, which is price place promotion and product
• A global marketing strategy is how a business promotes its products to the global market. Glocalisation is adapting marketing strategies between different countries to meet the needs of the local market.
• Businesses develop a marketing approach to achieve their global marketing strategy. These three include ethnocentric polycentric and geocentric.
• ethnocentric approach makes little or no adaptations to local taste. This is based on the belief that the companies home culture and marketing practices are superior to those of other countries meaning that there will be no changes to the product for overseas customers.
• Advantages of the ethnocentric centric approach is that it can benefit from economies of scale, the firm can use the same marketing strategy and promotional tools which reduces its marketing costs and customers love global brands and will buy it
• Disadvantages of the ethnocentric approach is that the product might not fit into all markets and might not perform well could lose sales as it’s not suited to customers needs
• A polycentric approach is when businesses adapt their marketing strategy by changing their products to meet the local market. The company treats each country as a unique market and develops a customise marketing mix for each country.
• Advantages of a polycentric approaches that sales are likely to increase as its tailored to meet the needs of customers and it develops brand loyalty in overseas markets
• A disadvantage of polycentric approach is that product development to adapt the product may increase average unit costs
• A geocentric approach is a mix of the polycentric and ethnocentric approach. The global focus of the ethnocentric approach is kept but it also uses some of the local factors identified under a polycentric approach.
• Advantages of the geocentric approach is that sales are likely to increase as the product is tailored to meet customers needs our money is saved due to similar advertising for each country. This is advantage is that it can be costly to adapt products
• A global niche market are small segments of the global market that are characterised by unique and specific needs and preferences of customers
• Features of a global niche market is excellent customer service, prioritising profit over market share, emphasis on quality , innovation, expertise in product area and clear all understanding of the wants in needs of customers
• Advantages of global niche market is that there’s: less competition, higher customer loyalty, products are inelastic meaning that firms can charge higher prices and maximise their profits
• Disadvantages of global niche markets is that a business might have less sales meaning less revenue
• Global businesses should consider doing market research to assess how the local cultures and norms in a country might affect their strategy
• Cultural and social factors to consider is language, different tastes , cultural differences, unintended meanings, inappropriate and inaccurate, translations and inappropriate branding and promotion.
• Using a target market language can increase costs as business needs to pay for translations using firms domestic language can be offensive as customers were understand. Also translations need to be accurate as wrong translation can give wrong messages