4.3.1 Marketing

Global Branding

🔗 Where a business does not adapt its brand or strategy to local needs (E.G Coca Cola). Also known as a pan strategy.

• Marketing economies of scale -> Marketing budget spread across large scale of output -> Lower cost per unit -> Able to reduce prices whilst maintaining profit margins
• Enables business to strengthen image and reputation as a brand -> Able to create price inelastic demand
• Cheaper than developing new strategies and products specific to local needs -> Resources and funds can be dedicated to other activities such as marketing efforts -> Increased business exposure

Globalisation

🔗 When a global company uses a marketing strategy adapted to local needs (E.G McDonalds with McAlooTikki)

• Higher customer satisfaction -> Products catered to customer demands and local needs -> Increases customer retention and customer loyalty -> Develops price inelastic demand -> Able to command a higher price -> Higher profits