Podcast
Questions and Answers
Explain why a business might choose to modify its product when entering a global market, providing an example.
Explain why a business might choose to modify its product when entering a global market, providing an example.
Businesses modify products to cater to local tastes, preferences, or cultural aspects. Domino's adapts pizza toppings in India to include more vegetables and spices to align with local culinary preferences.
Describe a situation where a company might price its product differently in two different countries. What factors influence such a decision?
Describe a situation where a company might price its product differently in two different countries. What factors influence such a decision?
Apple might price its iPhones lower in India compared to the USA due to factors such as lower average incomes, varying tax rates, wage rates or differing costs of operation.
Why is it important for businesses to be conscious of language differences when promoting products in global markets?
Why is it important for businesses to be conscious of language differences when promoting products in global markets?
To avoid misinterpretations, cultural insensitivity, and to effectively communicate the intended message; it ensures that the promotion resonates positively with the local audience.
Explain how the 'place' element of the marketing mix can be adapted to suit different consumer behaviors in different countries, citing an example.
Explain how the 'place' element of the marketing mix can be adapted to suit different consumer behaviors in different countries, citing an example.
What is considered in a marketing strategy?
What is considered in a marketing strategy?
What does 'place' in the marketing mix refer to?
What does 'place' in the marketing mix refer to?
Explain why Proctor & Gamble uses the approach of changing particular product names?
Explain why Proctor & Gamble uses the approach of changing particular product names?
Can companies use Ethnocentric, Polycentric and Geocentric approaches when moving into international markets?
Can companies use Ethnocentric, Polycentric and Geocentric approaches when moving into international markets?
What would be the result of offering locally sourced ingredients?
What would be the result of offering locally sourced ingredients?
How do Taxes influence business strategy?
How do Taxes influence business strategy?
Flashcards
Marketing Strategy
Marketing Strategy
A set of plans a business uses to achieve specific marketing objectives.
Price in Global Markets
Price in Global Markets
Adapting price to consider local incomes, taxes, and costs.
Product Adaptation
Product Adaptation
Modifying a product to suit different cultures and tastes in various global markets.
Promotion in Global Markets
Promotion in Global Markets
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Place in Global Markets
Place in Global Markets
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Tesco Fresh & Easy
Tesco Fresh & Easy
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Product (4Ps)
Product (4Ps)
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Price (4Ps)
Price (4Ps)
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Place (4Ps)
Place (4Ps)
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Promotion (4Ps)
Promotion (4Ps)
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Study Notes
- A marketing strategy is a set of plans a business uses to achieve objectives.
- For a local takeaway aiming to become the market leader, the strategy might include locally sourced ingredients, lower off-peak prices, a delivery service, and a loyalty scheme.
- The marketing mix (4Ps) is used in global markets as part of a global marketing strategy.
Price
- Price decisions must consider local factors like incomes, taxes, rents, and other costs.
- It is unlikely that a business will charge the same price in all markets.
- An Apple iPhone may cost less in India than in the USA.
- Price reflects local factors such as wage rates and taxes.
- Important questions to consider are: What price should be charged in global markets? What prices are charged by local competitors?
Product
- A business must decide to what extent to modify or adapt its product for global markets.
- Businesses can take an ethnocentric, plycentric and geocentric approach.
- Domino's, the pizza company, modifies its products in overseas markets (a polycentric approach).
- In India, Domino's pizza contains more vegetables and spices.
- Question to consider: Should the product be adapted for different markets, or can it stay as it is?
Promotion
- When promoting products in global markets, language differences must be considered.
- Marketers should know the values, beliefs, perceptions, legal and sociocultural aspects of different foreign environments.
- Marketers have to identify the target customers to create product awareness, generate sales, and maximize brand loyalty by delivering the right message.
- A common promotion method is to change the name of products in overseas markets.
- Mr. Clean (US Company: Proctor & Gamble) has different names in different countries (Maestro Limpio® in Mexico, Don Limpio® in Spain, Mastro Lindo® in Italy, Meister Proper® in Germany, and Flash® in Ireland and the UK).
- Question to consider: What are the most effective promotion methods in different countries?
Place
- Businesses need to account for how consumers buy products locally.
- Development of online selling has helped many retailers distribute goods all over the world.
- Question to consider: How do consumers buy their products in local markets?
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