A Comparative Analysis of Global Marketing Strategies and Approaches

This report provides an in-depth analysis of four key global marketing strategies: ethnocentric, geocentric, polycentric, and regiocentric approaches. It begins by defining ethnocentric marketing, emphasizing its focus on domestic products and potential limitations for international organizations, using Nissan as an example. The report then explores geocentric marketing, highlighting its global perspective and adaptability, with Colgate Palmolive as a case study. Next, it delves into polycentric marketing, discussing its focus on adapting to local markets, using Philips as an illustration. Finally, the report examines regiocentric marketing, emphasizing its regional focus and transitional nature, with Coca-Cola as an example. The report highlights the strengths and weaknesses of each approach, providing real-world examples to illustrate their application and effectiveness in different contexts. The analysis covers the key characteristics, advantages, and disadvantages of each strategy, offering a comprehensive overview of global marketing practices.

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ANALYSIS OF GLOBAL MARKETING
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Ethnocentric global marketing
Ethnocentrism is related to the process of conducting business on a domestic and
international level. The concept of ethnocentrism can further alienate the organization from
the consumers. The company needs to develop the strategy in such a manner so that it can
benefit from the implementation of ethnocentrism. The ethnocentric process of global
marketing is based on the consumers who prefer the domestically manufactured products
more than the international ones. The preference of these consumers can affect the
international organizations to a large extent. This further helps the domestic organizations to
avoid the competition that is given by the low-cost foreign organizations. The domestic
organizations are able to protect the market and the levels of competition are also low
(Balabanis and Siamagka 2017). The ethnocentric domestic market can be exploited by the
organizations by increasing the tie-ups in the country with the help of effective promotion
and advertising. The advertising campaigns were focussed towards the domestic market in
which the organization has its operations. For example, Nissan is an organization which has
an ethnocentric orientation. Nissan Motors is a Japanese organization and the trucks that are
designed by the company are largely based on the preferences of the market in Japan. The
trucks were found to be difficult to use in many parts of the United States. The main
assumption of the company was that the preferences of the customers are same as that of the
people in Japan (Zeugner-Roth, Žabkar and Diamantopoulos 2015).
Geocentric global marketing
Geocentric global marketing is done by those companies in which the management is
more concerned about looking into the opportunities on a global scale. The organization does
not focus on the ways of conducting business in a particular country. Instead, the company
tries to formulate ways by which it can conduct its business activities in any part of the world.

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The organization is able to achieve the global and the local objectives with the help of its
geocentric approach. The subsidiaries of the organization also provide a unique contribution
to the competitive advantage of the organization in the world (Kimiagari et al. 2015). The
geocentric organizations also tend to hire people from different parts of the world and
diversity in evident in the operations of these organizations. For example, Colgate Palmolive
is an example of a geocentric organization and follows this approach in the hiring process of
the company. The organization has its international operations for more than 50 years and the
products have thereby become a household name in greater than 170 countries in which it has
its operations. The executives of the company work on a global level and belong to various
countries. The meetings of the organization take place all over the world (Achim, Borlea and
Mare 2018).
Polycentric global marketing
Polycentric marketing is a type of global marketing according to which the
organizations attempt to increase their appeal for the services or products in multiple
countries. This type of global marketing takes place when the organization takes the decision
to expand its operations in the different countries of the world. The focus of the organization
thereby changes from the local sales to the building of an international market for the
products. The international sales are considered to be the key part of the business
organization which deserves independence. The polycentric global marketing approach can
be defined with the help of several factors. This approach takes place in different countries
and the presence of the organization in these different areas is important for the application of
the polycentric marketing approach (Finka and Kluvánková 2015). The subsidiaries of the
company ae equally responsible for the marketing approach that is conducted by the main
organization. Polycentric marketing plays an important role in the global adaptability of the
company. The subsidiaries of the business organizations need to take care of the local market

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and needs of the customers in that area. For example, Philips is an organization which has its
headquarters in Netherlands. The organization has followed a polycentric approach which
assumes that the countries are unique in terms of the behaviour of target customers. The
marketing approaches that are undertaken by the organization in the different parts of the
world are unique in nature. The subsidiaries of Phillips Electronics are totally responsible for
the ways by which they formulate the marketing strategies and apply them in the various
areas (Smith 2017). This concept worked well for the organization in the international
operations and Phillips was able to create a different position with the help of its global
operations.
Regiocentric global marketing
The approach of regiocentric global marketing is applied by the organizations which
wish to focus the marketing activities in specific areas of the world. The marketing efforts of
these organizations are focussed on the group of countries which have similar market
characteristics and the operations are also similar. The approach of regiocentrism is also
considered to be the transitional phase from the between the polycentric and the geocentric
approach of the organizations. The regional marketing policies are accepted by the firms
which operate on the basis of the regiocentric approach. The operational strategies are also
formed based on the needs of the entire region rather than the individual customers (Verbeke
and Kano 2016). For example, Coca Cola has a regiocentric orientation based on which the
organization has been formulating different strategies that can be applicable for the various
groups of countries in the world. The marketing related activities that are conducted by the
organization in the countries like, Pakistan, India and Bangladesh is different from the
strategies that are implemented in other parts of the world. The countries have been grouped
together by the organization due to the similarities that are present in the markets. The similar
strategies used by Coca Cola in this region has been successful for the growth of the company

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in this highly populated area. This region has provided Coca Cola with the highest
opportunities to increase its growth in the market in an easier manner (Sørensen 2016).
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