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Explain the term 'global marketing' and name two global businesses - Leaving Cert Business - Question B - 2009
Question B
Explain the term 'global marketing' and name two global businesses. "A business involved in global markets faces additional marketing challenges." Discuss these cha... show full transcript
Worked Solution & Example Answer:Explain the term 'global marketing' and name two global businesses - Leaving Cert Business - Question B - 2009
Step 1
Explain the term 'global marketing' and name two global businesses.
Answer
Global marketing refers to the practice of promoting a company's products or services in multiple countries, unifying branding and marketing strategies to cater to a global audience. This approach allows businesses to create a consistent brand image while adapting specific elements to meet local cultural and consumer preferences.
Two examples of global businesses include:
- Coca-Cola
- Microsoft
Step 2
"A business involved in global markets faces additional marketing challenges." Discuss these challenges, using examples to support your answer.
Answer
Businesses operating in global markets encounter various marketing challenges that include:
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Differentiation of Marketing Mix: Companies must adapt their marketing strategies to local markets due to differences in consumer behavior and preferences. For example, McDonald's alters its menu items based on local tastes, offering rice dishes in Asian countries.
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Global Pricing Strategies: Pricing must take into account the cost of production, distribution, and local economic conditions. For instance, a product may be priced higher in a wealthy country compared to a developing nation due to differing economic capabilities and consumer price sensitivity.
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Cultural and Language Barriers: Effective communication is crucial, and translation of marketing materials must resonate with local cultures. For example, Pepsi’s slogan "Come alive with the Pepsi Generation" translated poorly in some languages, leading to misunderstandings.
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Distribution Channels: Establishing efficient distribution networks across different countries can be difficult. Companies must decide on direct selling versus using local partners or distributors, which can impact their market entry strategy.
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Regulatory and Legal Challenges: Different countries have distinct regulations affecting marketing practices. For example, the advertising of certain products (like alcohol) may be restricted in some countries, requiring businesses to navigate complex legal landscapes.