Back to notes
Explain the impact of global population growth and distribution on business strategies.
Press to flip
Global population growth, urbanization, and the rise of the middle class create new opportunities and challenges, requiring businesses to adapt their strategies for product delivery, marketing, and service offerings.
What are the key components of a country market assessment?
Economic environment, market size and population growth, infrastructure and technological capabilities, governmental actions, and cultural factors.
How does Airbnb tailor its global marketing strategy?
Airbnb localizes language listings and translations, adapts to various platform restrictions, and maintains consistent branding globally, all while focusing on selling a travel experience that appeals across different cultures and regions.
What are the primary market entry strategies for global marketing, and what is the risk associated with each?
Exporting (least risk, least control), franchising (more control, less financial risk), strategic alliances (collaborative but independent), joint ventures (equity-based partnerships), and direct investment (most control, highest risk).
Why is it important to adapt global communication strategies?
Adapting communication strategies to account for differences in literacy levels, languages, and cultural customs increases the effectiveness of marketing messages and consumer engagement.
Describe the significance of Hofstede’s Cultural Dimensions in global marketing.
Hofstede’s Cultural Dimensions help marketers understand and navigate cultural differences that affect consumer behavior, such as power distance, uncertainty avoidance, individualism, masculinity, time orientation, and indulgence.
What challenges do businesses face with global distribution strategies?
Varying infrastructure quality, increased costs from intermediaries, and differing logistical capabilities across regions.
How do tariffs, quotas, and exchange rates influence global pricing strategies?
They affect the cost structure and profitability of international operations, necessitating pricing adjustments to remain competitive and compliant with local regulations.
What metrics are used in economic analysis for global marketing?
Gross Domestic Product (GDP), Gross National Income (GNI), and Purchasing Power Parity (PPP).
How does the STP process differ in a global context compared to a domestic context?
The Segmentation, Targeting, Positioning (STP) process is more complex globally due to variations in consumer preferences, behaviors, and market conditions across different regions, requiring more nuanced and adaptable strategies.
List the governmental actions that can influence international trade.
Tariffs, quotas, exchange control, and trade agreements.
Why is it important for businesses to adopt different marketing strategies for different regions in the context of global marketing?
Different regions have unique economic, cultural, governmental, and infrastructural factors that affect consumer behavior and market potential, necessitating customized marketing strategies to effectively reach and engage local markets.
Give an example of a company that failed in global expansion due to cultural misalignment and explain why.
Starbucks initially failed in Australia due to a lack of cultural adaptation, as they didn't consider the local coffee culture and preferences, leading to a misalignment with consumer needs.
Define tariffs and explain their impact on businesses.
Tariffs are taxes imposed on imported goods; they can increase costs for businesses, affecting pricing strategies and potentially reducing competitiveness in international markets.
What strategies can companies use for global products and services?
Globalization (same product, different marketing), adaptation (minor changes to products for local markets), and innovation (new products for new markets).
Previous
Next