Why might a business adopt a standardised global approach to marketing?
(A) To cater for local tastes
(B) To minimise risk by hedging
(C) To increase market segmentation
(D) To take advantage of economies of scale - HSC - SSCE Business Studies - Question 19 - 2015 - Paper 1
Question 19
Why might a business adopt a standardised global approach to marketing?
(A) To cater for local tastes
(B) To minimise risk by hedging
(C) To increase market segment... show full transcript
Worked Solution & Example Answer:Why might a business adopt a standardised global approach to marketing?
(A) To cater for local tastes
(B) To minimise risk by hedging
(C) To increase market segmentation
(D) To take advantage of economies of scale - HSC - SSCE Business Studies - Question 19 - 2015 - Paper 1
Step 1
To cater for local tastes
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Answer
This option suggests that a business might adopt a global approach to ensure consistency across different markets. However, catering for local tastes typically requires a localized approach rather than a standardized one.
Step 2
To minimise risk by hedging
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Answer
Minimizing risk by hedging usually pertains to financial strategies rather than marketing strategies. While this is important, it isn't a reason for adopting a standardized marketing approach.
Step 3
To increase market segmentation
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Answer
Increasing market segmentation implies a tailored approach that divides the market into distinct segments for better targeting, which contradicts the idea of standardization.
Step 4
To take advantage of economies of scale
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Answer
This is the correct choice. A standardized global approach allows businesses to streamline production and marketing, thereby reducing costs per unit and maximizing overall efficiency across different markets.
