4.3 Business Revision

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What is glocalisation?
A product or service that is developed and sold globally, but is also adapted to meet the needs and wants of customers in a local market.
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What is localisation?
Strategies that adjust products to fit with target customers.
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What is a global marketing strategy?
The process of adjusting a companies marketing strategies to reflect conditions, consumer tastes and demand in other countries.
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Describe an ethnocentric marketing approach?
Overseas markets are seen as identical or similar to domestic markets, and the approach assumes that what is good for the domestic market will be good for global markets. Businesses do not adapt their products for different markets.
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Describe a polycentric marketing approach?
Businesses adapt their product to the local markets in which they plan to sell the product. This involves developing and marketing different products for the demands of local customers in different markets.
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Describe a geocentric (mixed) marketing approach?
The combination of ethnocentric and polycentric marketing approaches. This glocalisation approach is summed up by "think global, act local". The businesses strategy is to maintain and promote the global brand name, but to tailor its products locally.
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Describe the advantages of an ethnocentric approach?
1. Lower cost of development and production. 2. Economies of scale
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Describe the disadvantages of an ethnocentric approach?
1. Product may not sell well if it is not adapted to the local market. 2. Does not take account of national/cultural differences.
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Give an advantage of using a polycentric approach?
By tailoring products to specific customer needs, the product can be targeted precisely within the particular market. This means they should get high sales as the product should sell well.
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Describe the disadvantages of using a polycentric approach?
1. Higher cost of development. 2. Difficult to compete with established local brands.
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Give an advantage of using a geocentric approach?
Tailoring product to local tastes and needs - higher sales.
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Give a disadvantage of using a geocentric approach?
Higher cost of product development.
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What is a global niche market?
Small segmented parts of a global market. Within an individual country these markets may be relatively small, but combining them over several countries provides a large enough market for a business to enjoy significant demand.
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Other cards in this set

Card 2

Front

What is localisation?

Back

Strategies that adjust products to fit with target customers.

Card 3

Front

What is a global marketing strategy?

Back

Preview of the front of card 3

Card 4

Front

Describe an ethnocentric marketing approach?

Back

Preview of the front of card 4

Card 5

Front

Describe a polycentric marketing approach?

Back

Preview of the front of card 5
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