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What are TWO consequences of a business using a standardised marketing strategy when operating globally? (A) Increased economies of scale and reduced market segments (B) Reduced economies of scale and increased market segments (C) Complex after-sales service and reduced research and development costs (D) Simplified after-sales service and increased research and development costs - HSC - SSCE Business Studies - Question 13 - 2010 - Paper 1
Question 13
What are TWO consequences of a business using a standardised marketing strategy when operating globally? (A) Increased economies of scale and reduced market segment... show full transcript
Worked Solution & Example Answer:What are TWO consequences of a business using a standardised marketing strategy when operating globally? (A) Increased economies of scale and reduced market segments (B) Reduced economies of scale and increased market segments (C) Complex after-sales service and reduced research and development costs (D) Simplified after-sales service and increased research and development costs - HSC - SSCE Business Studies - Question 13 - 2010 - Paper 1
Step 1
Increased economies of scale and reduced market segments
Answer
By using a standardised marketing strategy, businesses can achieve increased economies of scale due to larger production runs and uniform marketing efforts across different regions, leading to lower per-unit costs. However, this may result in reduced market segments as the strategy does not cater to local preferences.
Step 2
Simplified after-sales service and increased research and development costs
Answer
A standardised marketing strategy can lead to simplified after-sales service as the same product is sold globally, thereby reducing the complexity in service management. On the other hand, such a strategy may increase research and development costs to ensure the product meets the diverse needs of a global market.