The planning, producing, placing and promotion of a businesses products in a worldwide market.
Global localisation (Glocalisation).
'Think global, act local'.
The business should adapt to local expectations in order to succeed in international markets.
Glocalisation takes into account local tastes, customs and traditions.
In Saudi Arabia men are served separately to women and children:
Different marketing approaches in international business:
Ethnocentric (domestic) approach:
Overseas markets are seen as identical or similar to domestic markets.
Businesses make little or no attempt to adapt their product for different markets.
Click on the picture:
Advantages of this approach:
Economies of scale.
Because a product is standardised across markets, the scale of production is much larger.
Purchasing economies can be made.
Disadvantages of an ethnocentric approach:
Products may not sell well if they are not adapted to local markets.
Missed opportunities by not changing products to suit local tastes.
Are Pizza Express losing potential revenue by not adapting their menu?
Polycentric (international) approach:
Businesses adapt their products to the local markets.
Developing and marketing different products to the demands of different markets.
By tailoring products to specific customer needs, the product can be targeted precisely within the particular market.
Selling cars in India. Click on the picture.
Businesses which use a combination of ethnocentric and polycentric approaches.
This would be considered to be 'glocalisation'.
Adapting and applying the marketing mix and Ansoff's Matrix to global markets.
Before deciding on an appropriate marketing mix in an overseas market the most important step is thorough market research.
How consumers in different cultures shop, eat, use social media, spend their disposable income.
Decisions around price need to take into account local factors like incomes, taxes, rent and other costs.
Click on the picture:
Product
To what extent should a company modify or adapt its product for global markets?
Promotion
When promoting products a business needs to take into account language differences.
International business failures. Details here.
Place
Businesses need to take into account how local consumers typically buy their products.
In Saudi Arabia men are served separately to women and children:
Different marketing approaches in international business:
Ethnocentric (domestic) approach:
Businesses make little or no attempt to adapt their product for different markets.
Click on the picture:
Advantages of this approach:
Economies of scale.
Because a product is standardised across markets, the scale of production is much larger.
Purchasing economies can be made.
Disadvantages of an ethnocentric approach:
Products may not sell well if they are not adapted to local markets.
Missed opportunities by not changing products to suit local tastes.
Are Pizza Express losing potential revenue by not adapting their menu?
Polycentric (international) approach:
Businesses adapt their products to the local markets.
Developing and marketing different products to the demands of different markets.
Selling cars in India. Click on the picture.
The major disadvantage of this approach are the costs involved.
Geocentric (mixed) approach:
This would be considered to be 'glocalisation'.
Adapting and applying the marketing mix and Ansoff's Matrix to global markets.
Before deciding on an appropriate marketing mix in an overseas market the most important step is thorough market research.
How consumers in different cultures shop, eat, use social media, spend their disposable income.
Price
Click on the picture:
Product
To what extent should a company modify or adapt its product for global markets?
When promoting products a business needs to take into account language differences.
International business failures. Details here.
Place
Businesses need to take into account how local consumers typically buy their products.
Ansoff's matrix is a strategic tool to help a business achieve growth.
Uber:
