Summary
Summary 4.3 notes Business Alevel
- Module
- Theme 4
- Institution
- PEARSON (PEARSON)
All information from Edexcel Alevel specification of Business 4.3
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Varnika RAMJEE4.3 Global marketing
4.3.1 Marketing
Globalisation marketing strategy
- Means that a business doesn’t differentiate its products or marketing between countries
- The same product is sold in many countries with some fine tuning of the product, price and
promotion etc
Global brands
- Global brands view the world as a global market place and creates products that will suit a
world audience
- E.g., Microsoft is the idea global product, all it needs to do it adapt the languages, adjust the
cost for the region and fine tune the marketing to suit the area
Global market decisions
- The promotional message may be the same all over the world leading to reduce average
marketing costs, EOS
- The only differences might be that sales incentives may vary in different countries
Advantages to global marketing Disadvantages to global marketing
- EOS can be achieved from production - Differences in consumer needs, wants
and distribution and usage patterns for products
- Means lower than average marketing - Differences in consumer response to
costs marketing mix elements
- Power in the market as the brand is - Differences in brand and product
known development and the competitive
- Consistency in brand image environment
- Ability to leverage good ideas quickly - Differences in the legal environment,
and efficiently some of which may conflict with those
- Uniformity of marketing practices of the market
Glocalisation
- Is a combination of the words globalisation and localisation and is used to describe products
and services that are both developed and sold to global customers but designed so that they
suit the needs of local markets
- A business needs to think global but act local
Glocalisation and the local market
- These businesses are aware of the importance of combining relevant, transferrable products
with the heritage and authenticity of local identities
- Products or services are designed to benefit a local market while at the same time being
developed and distributed on a global level
, Varnika RAMJEE
Different marketing approaches/theories to global marketing/PEG
Polycentric – adapt to each market to appeal to local customers to maximise revenue
- International approach, adapting the marketing mix to maximise sales in different countries
- Each hot country is unique
- Each subsidiary business in each country should develop its own marketing strategy
Ethnocentric – standardise the product for all markets to keep costs low
- A business which believes that a success story in one country can translate to all other
countries in which it operates
- Foreign operations are subordinate to domestic markets
- Products sold without adaption
- The belief of superiority is one’s personal ethnic group
Geocentric – a mixture of poly and ethnocentric approaches
- Can have some the the advantages of a standardised global approach to get EOS but cater
for needs of individual markets to maximise sales
- Branding may be done on a global basis
- Businesses has a worldwide approach to marketing and its operations become global
- A global MNC will have manufacturing and processing facilities around the world to serve
the various regional and national markets through a complex but well co ordinated system
of distribution networks
Adaptation of 4P’s to global markets
Standardised Adapted
Product – new coke for Canada
- Travel, media and the internet world is - Coca cola makes its products sweeter for
getting smaller, easier to market a product some markets to take account of local
that is known globally tastes
- International standardisation adv: as - In Canada, it has taken the decision to
people travel the world, can be assured make it less sweet to bring in line with
that wherever they go the product that other countries
they buy from the business will be the
same and it will have the same standard
benefits
Place – chains and overseas
- Distribution in national markets such as the - In an overseas market, there will be more
United Kingdom will probably involve goods parties involved as the goods need ot be
being moved in a chain from the moved around foreign market where
manufacturer to wholesales and onto business practices will be different to
retailers for consumers to buy from national markets
- E.g., agents might be used to sell products
in other countries
Prices
- Setting international prices is very complex Need to consider factors such as:
- It is unlikely that a MNC will attempt to gain - Cost of transport tariffs or import duties,
the same price in Mexico or Brazil as it does exchange rate fluctuations, personal
in Germany or France due to the disposable disposable incomes of the target market,
income of the population the currency they want to be paid in and
the general economic situation of the
country and how this will influence pricing
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