Questions and Answers
What is a reason why the price of Guinness differs between Ireland and Malaysia?
What is an example of a direct export method?
Which channel of distribution involves allowing a local entrepreneur to operate a business?
What is the primary characteristic of a standardised marketing mix?
Signup and view all the answers
Why is understanding cultural differences important in global promotion?
Signup and view all the answers
What could be a result of ignoring language variations in advertising?
Signup and view all the answers
Which of the following statements is NOT true about a standardised marketing mix?
Signup and view all the answers
Which factor is generally NOT associated with the need for a standardised marketing mix?
Signup and view all the answers
One of the primary benefits of a standardised marketing mix is:
Signup and view all the answers
In a standardised marketing mix, which of the following elements is kept the same worldwide?
Signup and view all the answers
What does a global business typically use when offering its products worldwide?
Signup and view all the answers
Which of the following is most closely associated with a global firm utilizing a standardised marketing mix?
Signup and view all the answers
Which of the following global firms is known for applying a standardised marketing mix?
Signup and view all the answers
Which term describes the approach where a global firm treats the entire world as a single market?
Signup and view all the answers
What is NOT a characteristic of global firms using a standardised marketing mix?
Signup and view all the answers
Study Notes
Standardised vs. Adapted Marketing Mix
- Standardised marketing mix employs an undifferentiated approach, keeping price, product, promotion, and place consistent globally.
- Adapted marketing mix adjusts elements to align with local market needs, such as varying price based on income, product alterations for local tastes, and tailored promotion for cultural differences.
- Adapted marketing mix is more prevalent than standardised marketing mix due to its responsiveness to local markets.
Reasons for Adapted Marketing Mix
- Cultural, language, and geographical differences necessitate local adjustments.
- Economic factors influence pricing and product strategies to cater to diverse consumer bases.
Global Product Considerations
- Products may require adjustments for technical, legal, and language standards in different countries.
- Compliance with local regulations, such as packaging and safety guidelines, is essential.
- Example: McDonald’s menu varies globally, offering localized items like a fried shrimp burger in Japan.
Global Pricing Strategies
- Some firms attempt to maintain uniform pricing across markets to prevent arbitrage.
- Local cost of living and disposable income may necessitate differentiated pricing.
- Additional costs, such as taxes or custom duties, can influence the final selling price in various countries.
Characteristics of Global Firms
- Global firms view the world as a single market, allowing for the standardisation or adaptation of products and marketing strategies.
- They often locate production in low-wage countries and source materials from the cheapest suppliers.
Reasons for Global Firm Presence
- Market saturation in domestic markets prompts firms to seek international expansion for growth.
- Economies of scale reduce costs with increased production.
- Advancement in technology, communication, and transportation facilitates global operations.
- Deregulation and free trade enable smoother international commerce.
Global Marketing Overview
- Global marketing treats the world as a unified marketplace, promoting consistent product marketing across regions.
- Companies like Nike and Starbucks employ similar marketing mixes globally.
Global Marketing Mix
- Composed of the 4Ps (product, price, place, promotion) tailored to a global context.
- Currency variations and differing tax rates must be considered in global pricing.
- Example: Guinness pricing varies by country due to local regulations.
Global Distribution Channels
- Different distribution channels may be required to effectively reach consumers in various markets.
- Strategies may include direct export through e-commerce, opening branches, franchising, using agents, or forming local alliances.
Global Promotion Adaptations
- Promotion strategies must accommodate local legislation, language, and cultural nuances.
- TV advertisements may require language modification and sensitivity to cultural perceptions to avoid offensiveness.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Description
This quiz explores the differences between standardised and adapted marketing mixes. Learn how these strategies align with global and local market needs and their impact on pricing, products, and promotions. Test your understanding of how marketing adapts to cultures and consumer behaviors.