global business multiple choice

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.