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Global Marketing - Coggle Diagram
Global Marketing
marketing
different types of market approaches
ethnocentric,
this approach make little or no attempt to adapt their product for different markets standardized product > large scale production . E.O,S. firms can avoid the cost on R&D. this leads to lower price and competitive advantages. however not adopting to local market may lead to risk of failure ( i phone, play station)
polycentric
this involves developing different product for customers in different market. tailoring product to specific customer needs > makes it easier to gain acceptance in new market > this reduces advert and promotion cost. slight changes to product leads to higher sales and revenue. however developing individual products for different market is costly and difficult to manage. in addition it would be difficult to compete with existing brands ( Tesco and Fresh and easy) ( Toyato and Lexus)
geocentric approach
also known as
glocalisation
. combination of both methods. tailoring product to local taste>increased sales. however higher cost of product development. ( KFC, MC)
adaptation of the marketing mix to global markets
price
decision about price need to consider local factors such as income , taxes, rents and other costs. it is unlikely to charge the same price in all markets.
product
based on market approach ( ethnocentric, polycentric and geocentric)
promotion
when promoting in global market firm need to consider language differences, values, beliefs, perceptions, legal and social cultural aspects. it must also identify the target customers when promotion
place
( take some reference from assessing a country as a market / production location)
tools that help firms in making marketing strategies
Ansoff Matrix
market development ( new market, existing product)
product development ( new product, existing market)
market penetration ( old market, old product)
diversification ( new market, new product)
porter's strategic matrix
cost leadership
product differentiation
focus
differentiation
cost
niche marketing
types of cultural diversity
language
hobbies
economic development
religious norms
legal system
weather and climate
history and tradition
feature of global niche market
economies of scale
when satisfying global, specific customer needs, the scale of production rise. > increase E.O.S. however if it is necessary to make changes, then opportunity to exploit E.O.S is reduced.
limited competition
low level of competition since only targets specific customer group.> so less pressure to innovate and to keep cost low
premium pricing
can charge premium price because lack of competition and customers tend to pay higher price to the product that are specifically tailored to them.
an emphasis on quality
consumers of global niche market tend to be wealth > they would priorate quality over price. > so quality of the product will be high
focus on profit
firms in niche market can't sell goods to many customers > so they are less concerned about market share. firms try to reach customers on a more individual level and gain more profit
brand loyalty
customer needs and wants are presented more precisely. > customer service is also more personal> build strong relationship with customers > so increased customer loyalty
adaptation of marketing mix
product
global niche product often place an emphasis on quality. it is important to differentiate it's product from standard products
price
higher prices are charged because demand is likely to be inelastic
promotion
promotion method must be chosen to appeal a particular customer group. so language difference must also be considered. one problem is with the sensitivity to nation and cultural difference
place
businesses in niche market are often concerned about distribution channel. they don't want to place their product in small scale outlet. this would damage the image of the brand
cultural / social factors
types of cultural differences
language
hobbies and interest
religion an d social norms
legal system
weather and climate
history and tradition