Explains global marketing strategy, different marketing approaches, adapting the marketing mix to global markets, niche markets, and social/cultural factors.
Theme 4 Topic 7
Global Marketing
Global Marketing Strategy
Global Marketing Strategy – a planned marketing approach to achieving marketing objectives within a
worldwide market. This can involve product range, pricing, promotion methods and distribution methods
(place)
Glocalisation – involves taking a global approach by targeting a worldwide market but adapting to local tastes
and cultures. This could be done by altering the product range, pricing or promotion to take advantage of local
conditions
Cultural Diversity – the recognition that people across the globe have different interests, behaviours, values
and customs
Localisation – adapting a product or service to a specific market or location
Different Marketing Approaches
Ethnocentric – assumes foreign markets are identical to domestic ones and makes little attempt to alter the
product for different markets
Advantages Disadvantages
Economies of scale are possible as the Market development is risky according to
product is standardised across markets Ansoff due to different tastes and cultures
No R&D and market research costs involved The product may not sell well if not
in adapting to foreign markets. Also saves adapted to local markets
on product development and promotional
development costs
Polycentric – adapting fully to local markets by developing and marketing different products
Advantages Disadvantages
By tailoring products to local tastes sales Expensive to develop bespoke products for
should be higher different markets
Lack of economies of scale
Moves the Ansoff category to high risk
diversification by launching new products
in new markets
Geocentric – a combination of ethnocentric and polycentric approaches, e.g. the global brand name may be
used, but products are adapted to local markets. “Think global, act local”
Advantages Disadvantages
High sales potential as consumers Higher cost of product development
recognise the brand and format but still get More complex to manage different supply
products suited to their tastes chains, promotion strategies, etc.
Adapting the Marketing Mix (4Ps) to Global Markets
Marketing Mix – the elements of a firms overall approach to marketing. It uses the framework of the 4Ps:
price, place, product, promotion
Price Place
Prices might have to change depending on the level Production could be done within the countries, or
of economic development of a country, e.g. lower in be imported from another
poorer countries and higher in wealthier countries
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