Global Marketing, 6e (Keegan/Green) 6e (Keegan/Green) Chapter 7 Segmentation, Targeting, Targeting, and Positioning
1) Many Chinese women use whitening wh itening creams to lighten and brighten their complexions since white skin is associated with wealth. Answer: TR! "i##: 1 $age Re#: %&% %) Market 'egmentation is the process o# e(aluating the segments and #ocusing marketing e##orts on a country region or group o# people that has signi#icant potential to respond. Answer: *A+'! "i##: % $age Re#: %&, AAC'-: Re#lecti(e Thinking ,) 'ushi *ala#el Tandoori Tandoori Chicken or $ia are in demand in many parts o# the world. This phenomenon can be due to pluraliation o# consumption and segment simultaneity. Answer: TR! "i##: % $age Re#: %&/ AAC'-: Multicultural and "i(ersity "i(ersity /) The #act that signi#icant numbers o# pia0lo(ing consumers are #ound in many countries indicates that they are eating the exact same thing in all parts o# the world. Answer: *A+'! "i##: 1 $age Re#: %&/ ) Con(entional wisdom about market segmentation calls #or acknowledging ackno wledging the emergence o# global market segments that transcend national boundaries. Answer: *A+'! "i##: % $age Re#: %&/ AAC'-: Re#lecti(e Thinking 2) The process o# global market segmentation begins with the choice o# one or more (ariables ( ariables to use as a basis #or grouping customers. Answer: TR! "i##: % $age Re#: %& AAC'-: Re#lecti(e Thinking 3) A #act #ound by demographic segmentation is that by the year %&,& %& percent o# the .'. population or 3& million will be 2 years old or older. older. Answer: TR! "i##: % $age Re#: %& AAC'-: Analytic 'kills 4) The assumption o# homogeneity should be the cornerstone o# a company5s market segmentation e##ort. Answer: *A+'! "i##: % $age Re#: %&2 1 Copyright 6 %&11 $earson !ducation 7nc.
8) About two0thirds o# world 97 is generated in the Triad Triad countries whereas only about 1% percent o# the world5s population is located in those countries. Answer: TR! "i##: % $age Re#: %&2 AAC'-: Re#lecti(e Thinking 1&) The nited 'tates ranks number one among nations in terms o# both per capita income and in terms o# income ad;usted #or purchasing power. Answer: *A+'! "i##: % $age Re#: %&2 AAC'-: Analytic 'kills 11) 'wedish companies such as 73. Answer: *A+'! "i##: % $age Re#: %&3 AAC'-: Re#lecti(e Thinking 1,) An extrapolation o# current economic growth trends suggest that China with its combination o# high real income growth and relati(ely low population growth is a strong candidate to become a leading world economic power. Answer: TR! "i##: % $age Re#: %&4 AAC'-: Re#lecti(e Thinking 1/) Ten Ten most populous countries in the world account acco unt #or roughly 2& percent o# the world population. Answer: TR! "i##: % $age Re#: %&4 AAC'-: Analytic 'kills 1) sing a(erages alone it is possible to underestimate un derestimate a market5s potential #or example #ast0 growing higher income segments are present both in 7ndia and China. Answer: TR! "i##: % $age Re#: %&40%&8 AAC'-: Re#lecti(e Thinking
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12) The (ast ma;ority o# 7ndia5s population comprises a ?bullock cart? segment whose households lack most com#orts but typically own a tele(ision. Answer: TR! "i##: % $age Re#: %&8 AAC'-: Re#lecti(e Thinking 13) A psychographic study showed that $orsche buyers could be di(ided into se(eral distinct categories one consisting o# ?Top 9uns? who buy $orsches and expect to be noticed. Answer: TR! "i##: % $age Re#: %11 14) Categories such as ?success#ul idealists? and ?a##luent materialists? can be used to describe psychographic segments. Answer: TR! "i##: % $age Re#: %11 AAC'-: Re#lecti(e Thinking 18) The segmentation and targeting approach used by the same company can (ary #rom country to country. Answer: TR! "i##: % $age Re#: %11 AAC'-: Re#lecti(e Thinking %&) *or beha(ior segmentation marketers use the 4&@%& rule when assessing the consumers5 usage rate which means that %& percent o# the company5s re(enues or pro#its are accounted #or by 4& percent o# the #irm5s products or customers. Answer: *A+'! "i##: % $age Re#: %1, AAC'-: Re#lecti(e Thinking %1) 9lobal bene#it segmentation is based on a marketer5s understanding o# the problem a product sol(es the bene#it it o##ers or the issue it addresses regardless o# geography. Answer: TR! "i##: % $age Re#: %1/ AAC'-: Re#lecti(e Thinking %%) -ased on the trends and segmentation o# !urope5s 'ingle Market marketers are particularly ad(ised to take the 9olden 9rays seriously and market brands that pro(ide happiness con(enience and time sa(ings. Answer: TR! "i##: % $age Re#: %1/ AAC'-: Re#lecti(e Thinking %,) The widespread adoption o# the 7nternet and other new technologies will result in new segmentation approaches to be de(eloped in response to changing business en(ironment. Answer: TR! "i##: % $age Re#: %12 AAC'-: Re#lecti(e Thinking , Copyright 6 %&11 $earson !ducation 7nc.
%/) Thai Americans ietnamese Americans and Chinese Americans each o# whom speak a di##erent language can be separated by ethnic segmentation. Answer: TR! "i##: % $age Re#: %1 AAC'-: Analytic 'kills %) =hen assessing potential country target markets management should rely hea(ily on its network o# contacts as a primary criterion #or targeting. Answer: *A+'! "i##: % $age Re#: %12 AAC'-: Re#lecti(e Thinking %2) About 1., million cars are sold each year in 7ndiaB in absolute terms this is a relati(ely small number. Answer: TR! "i##: % $age Re#: %13 AAC'-: Re#lecti(e Thinking %3) 7ndia is the world5s #astest growing cell phone market with the industry expanding at a rate o# & percent annually with million new subscribers added e(ery month. This is an indication o# continued pri(ate0sector growth. Answer: *A+'! "i##: % $age Re#: %130%14 AAC'-: Re#lecti(e Thinking %4) A market segment or country market characteried by strong competition may be a segment to target since it will be easier to enter a pro(en market. Answer: *A+'! "i##: % $age Re#: %14 AAC'-: Analytic 'kills %8) onda #irst created the market #or small0displacement dirt bikes and then mo(ed up market with bigger bikes targeted at casual riders. Answer: TR! "i##: 1 $age Re#: %18 AAC'-: Re#lecti(e Thinking ,&) Marketing model dri(ers are key elements or #actors reDuired #or a business to take root and grow in a particular country market en(ironment. Answer: TR! "i##: % $age Re#: %%& AAC'-: Analytic 'kills
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,1) 7n 7ndia re#rigeration is not widely a(ailable and this restricts many #oreign companies to market items that need re#rigeration. This can be considered as o ne o# the ?enabling conditions? that needs to be considered in a marketing model. Answer: TR! "i##: % $age Re#: %%& AAC'-: Analytic 'kills ,%) =hen making a decision about market entry timing a company5s management team should understand that the #irst0mo(er always becomes the market leader. Answer: *A+'! "i##: % $age Re#: %%1 AAC'-: Re#lecti(e Thinking ,,) -e#ore targeting the orth American market the +exus marketing team succeeded in making +exus the number one luxury0car nameplate in Eapan. Answer: *A+'! "i##: % $age Re#: %%% AAC'-: Re#lecti(e Thinking ,/) 'tandardied global marketing is analogous to mass marketing in a single country and is also known as di##erentiated target marketing. Answer: *A+'! "i##: 1 $age Re#: %%, AAC'-: Re#lecti(e Thinking ,) "i##erentiated global marketing represents a more ambitious approach than concentrated target marketing. Answer: TR! "i##: % $age Re#: %%/ ,2) There is a signi#icant di##erence between the ?mass market? and the ?premium market.? 7n the premium market customers are looking #or a good deal whereas in the mass market customers are looking #or a product that #ul#ills their expectations. Answer: *A+'! "i##: % $age Re#: %%,0%%/ AAC'-: Re#lecti(e Thinking ,3) -M=5s slogan ?the ultimate dri(ing machine? is an example o# an attribute or bene#it which has pro(en success#ul in their positioning strategy. Answer: TR! "i##: % $age Re#: %%/0%% AAC'-: Re#lecti(e Thinking
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/,) 9lobal marketing authority Theodore +e(itt has noted that many ethnic and regional #oodsH sushi #or exampleHis en;oying popularity in many countries o# the world. This obser(ation is known as: A) the pluraliation o# consumption. -) the ethnicitiation o# consumption. C) the democratiation o# consumption. ") the sophistication o# consumption. !) the domestication o# consumption. Answer: A "i##: % $age Re#: %&/ AAC'-: Re#lecti(e Thinking //) =hich o# the #ollowing does not represent ?con(entional wisdom? regarding global segmentationI A) assume heterogeneity between countries -) assume homogeneity within a gi(en country C) #ocus hea(ily on macro0le(el cultural di##erences ") acknowledge the existence o# within country di##erences !) assigning secondary priority to within country microsegments Answer: " "i##: , $age Re#: %&/ AAC'-: Re#lecti(e Thinking /) 7ncome and population are two (ariables that can be used in which type o# segmentationI A) ethnic segmentation -) demographic segmentation C) psychographic segmentation ") beha(ioral segmentation !) gender segmentation Answer: "i##: % $age Re#: %& AAC'-: Re#lecti(e Thinking /2) 7deally #or comparati(e purposes 97 and other measures o# national income con(erted to .'. dollars should be calculated on the basis o#: A) per capita income. -) purchasing power parities. C) high income countries. ") low income countries. !) local currency. Answer: "i##: % $age Re#: %&20%&3 AAC'-: Re#lecti(e Thinking
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1) Mc"onald5s operates in o(er 1%& countries howe(er 4& percent o# its restaurants are located in nine countries which does not include the #ollowing country market: A) Australia. -) -rail. C) 9ermany. ") 7ndia. !) Eapan. Answer: " "i##: % $age Re#: %&4 AAC'-: Analytic 'kills %) $sychographic segmentation in(ol(es grouping people in terms o# their: A) combined household income. -) age and income. C) attitudes (alues and li#estyle. ") psychological well being. !) gender. Answer: C "i##: % $age Re#: %1&0%11 AAC'-: Re#lecti(e Thinking ,) $orsche A9 uses the label ?Top 9uns? to describe one segment o# its customers namely those who care about power and control and who expect to be noticed. 'uch a pro#ile would be based on which type o# segmentationI A) demographic -) occupational C) psychographic ") beha(ioral !) gender Answer: C "i##: % $age Re#: %1&0%11 AAC'-: Re#lecti(e Thinking /) A marketing manager #or the Mars candy company is studying a single0country psychographic pro#ile that includes segment labels such as ?Cossacks? and ?kuptsy.? =hat country does the sur(ey co(erI A) 7ndia -) Eapan C) Russia ") China !) ietnam Answer: C "i##: % $age Re#: %1%
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) ?9eneration J? ?9olden 9rays? and ?9loberations? are three market segments that ha(e been described in: A) Eapan. -) Russia. C) the !uropean nion. ") the nited 'tates. !) -rail. Answer: C "i##: % $age Re#: %1/ AAC'-: Re#lecti(e Thinking 2) =hich o# the #ollowing is not a characteristic associated with the 9olden 9rays segment in !urope5s single marketI A) consider it important to mix #un and work -) en;oy high0tech gaming C) deluged with passi(e in#ormation ") expect biotechnology to extend li#e expectancy !) share #ew #amily acti(ities Answer: ! "i##: , $age Re#: %1/ AAC'-: Re#lecti(e Thinking 3) =hich o# the #ollowing is not a characteristic associated with the 9eneration J segment in !urope5s single marketI A) share numerous #amily acti(ities -) less re(erence toward established authorities C) (iew leisure time in ?pay0per0play? terms ") increasingly tech0sa((y !) deluged with positi(e in#ormation Answer: ! "i##: , $age Re#: %1/ AAC'-: Re#lecti(e Thinking 4) Tambrands markets #eminine hygiene products around the globe. The company di(ides markets on the basis o# past present and #uture product usage. =hich kind o# segmentation does this representI A) demographic -) occupational C) psychographic ") beha(ioral !) geographic Answer: " "i##: % $age Re#: %1,0%1/ AAC'-: Re#lecti(e Thinking
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8) "iageo $+CB K' in K 'pirit A-B and 'eagram and other marketers know that Russians consume a great deal o# odka. This type o# market segmentation can be classi#ied as: A) demographic. -) beha(ioral. C) psychographic. ") occupational. !) bene#it. Answer: "i##: % $age Re#: %1% AAC'-: Re#lecti(e Thinking 2&) ?sage rates? and ?user status? are important criteria #or which segmentation (ariableI A) demographic -) occupational C) psychographic ") beha(ioral !) bene#it Answer: " "i##: % $age Re#: %1,0%1/ AAC'-: Re#lecti(e Thinking 21) =hich o# the #ollowing is probably the biggest impediment to Tambrands5s e##orts to expand the market #or its Tampax brand #eminine hygiene products in de(eloping nationsI A) lack o# demographic in#ormation -) underde(eloped distribution in#rastructure C) religious and cultural mores ") pre#erence #or less expensi(e local brands !) lack o# ad(ertisement and promotion Answer: C "i##: % $age Re#: %1 AAC'-: Multicultural and "i(ersity 2%) $rocter K 9amble has identi#ied a group o# consumers in !urope who are willing to pay premium prices #or pet #ood that will impro(e the health o# their pets. This is an example o# LLLLLLLL segmentation: A) demographic -) psychographic C) ethnic ") beha(ioral !) bene#it Answer: ! "i##: % $age Re#: %1/0%1 AAC'-: Re#lecti(e Thinking
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2,) =hich o# the #ollowing is true about e##orts by automakers to target the ispanic segment in the nited 'tatesI A) onda Toyota *ord and 9M all began targeting the segment years ago. -) onda and Toyota began targeting the segment years agoB *ord and 9M launched their e##orts more recently. C) *ord and 9M began targeting the segment years agoB onda and Toyota launched their e##orts more recently. ") nly *ord and 9M are targeting the ispanic segment. !) none o# the abo(e Answer: "i##: % $age Re#: %10%12 AAC'-: Analytic 'kills 2/) =hich o# the #ollowing best describes the decision by 'outh
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23) The #easibility o# targeting a particular market segment can be n egati(ely impacted by (arious #actors which does not include: A) regulatory hurdles. -) cultural barriers. C) lack o# distribution system. ") time reDuired to establish business. !) surplus demand. Answer: ! "i##: % $age Re#: %18 AAC'-: Re#lecti(e Thinking 24) Companies like Coca0Cola had the #irst0mo(er ad(antage since they were the #irst company to enter a global market. owe(er there are also #irst0mo(er disad(antages which include: A) best chance o# becoming world leader. -) ad(antage in adapting to the local culture. C) lead in ad(ertising and promotion exposure. ") gain business experience. !) substantial in(estments in marketing. Answer: ! "i##: % $age Re#: %%1 AAC'-: Re#lecti(e Thinking 28) Managers must decide how well a company5s product #its the country market by asking the #ollowing Duestions except: A) =ill adaptation be reDuiredI -) =ill import restriction dri(e up the product priceI C) 7s it ad(isable to source locallyI ") =ill strong home currency ha(e an ad(erse impact on product priceI !) =ill it be possible to neglect home country regulationsI Answer: A "i##: % $age Re#: %%1 AAC'-: Re#lecti(e Thinking 3&) The basis #or global marketing expert "a(id Arnold5s #ramework #or screening intercountry comparisons include: A) demographic data. -) ?top0down? segmentation analysis. C) ?bottom0up? segmentation analysis. ") income le(el. !) population data. Answer: C "i##: % $age Re#: %%& AAC'-: Re#lecti(e Thinking
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31) The 'watch 9roup markets watches in all price ranges #rom the 'watch brand at the low end to luxury brands such as +ongines -lancpain and -reguet. =hich target market strategy does this illustrateI A) standardied global marketing -) concentrated global marketing C) di##erentiated global marketing ") psychographic global marketing !) none o# the abo(e Answer: C "i##: % $age Re#: %%,0%%/ AAC'-: Re#lecti(e Thinking 3%) $ositioning re#ers to the act o#: A) determining on what points on the globe to target. -) ensuring a choice retail shel# location. C) di##erentiating a brand in customer5s mind. ") #ormulating a pri(ate label strategy. !) #ormulating a companion product. Answer: C "i##: % $age Re#: %%/ AAC'-: Re#lecti(e Thinking 3,) *or years ads #or ol(o automobiles stressed sa#ety #eatures and protection in the e(ent o# a crash. Thus ol(o automobiles de(eloped a reputation based on which positioning strategyI A) use@user -) attribute@bene#it C) competition ") high touch !) Duality@price Answer: "i##: % $age Re#: %%/0%% AAC'-: Re#lecti(e Thinking 3/) Ads by -M= ad(ertise it as the ?ultimate dri(ing machine? which is described as positioning based on: A) high touch. -) use@user. C) attribute@bene#it. ") competition. !) Duality@price. Answer: C "i##: % $age Re#: %%/0%% AAC'-: Re#lecti(e Thinking
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3) 'ome o# -ody 'hop5s recent ad(ertising has emphasied the di##erence between the company5s principles and those o# ?mainstream? cosmetics companies on such issues as animal testing. As described here -ody 'hop5s ads illustrate positioning by LLLLLLLL. A) competition -) niche C) Duality@price ") attribute@bene#it !) culture Answer: A "i##: % $age Re#: %%0%%2 AAC'-: Re#lecti(e Thinking 32) =hich o# the #ollowing is generally true about the marketing o# high0touch products such as #ine china and crystalI A) 7t relies eDually on specialied in#ormation and image. -) 7t relies less on image and more on specialied in#ormation. C) 7t relies less on specialied in#ormation and more on image. ") either image nor specialied in#ormation is rele(ant to the marketing o# high0touch products. !) 7t relies partially on specialied in#ormation and partially on image. Answer: C "i##: % $age Re#: %%30%%4 AAC'-: Re#lecti(e Thinking 33) Consumers shopping #or high0touch products such as #ine per#ume are generally energied by LLLLLLLL moti(es. A) emotional -) rational C) both emotional and rational ") neither emotional nor rational !) high tech Answer: A "i##: % $age Re#: %%30%%4 AAC'-: Re#lecti(e Thinking 34) =hen a marketer understands that a product satis#ies a buyer5s rational criteria while also e(oking an emotional response the marketer should: A) only target consumers in high0income countries. -) utilie a multitiered targeting strategy rather than a concentrated strategy. C) commission psychographic segmentation studies to augment demographic da ta. ") create ad(ertising that re#lects a bipolar high0tech and high0touch approach. !) #ollow normal targeting strategy. Answer: C "i##: % $age Re#: %%30%%4 AAC'-: Re#lecti(e Thinking
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38) =hich o# the #ollowing is true o# ad(ertising #or the eineken and *oster5s brands in the nited 'tatesI A) -oth eineken and *oster5s utilie the 9CC$ strategy. -) -oth eineken and *oster5s utilie the *CC$ strategy. C) eineken utilies the 9CC$ strategyB *oster5s utilies the *CC$ strategy. ") eineken utilies the *CC$ strategyB *oster5s utilies the 9CC$ strategy. !) eineken utilies the +CC$ strategyB *oster5s utilies the 9CC$ strategy. Answer: C "i##: % $age Re#: %%20%%4 AAC'-: Re#lecti(e Thinking 4&) Thinking about .'. ad(ertising #or *oster5s and -udweiser beer one can obser(e that: A) *oster5s uses *CC$ -udweiser uses +CC$. -) *oster5s uses +CC$ -udweiser uses *CC$. C) both *oster5s and -udweiser use +CC$. ") both *oster5s and -udweiser use *CC$. !) both *oster5s and -udweiser use 9CC$. Answer: A "i##: , $age Re#: %%20%%4 AAC'-: Analytic 'kills 41) =hat is psychographic segmentation and how do marketers use it in targeting di##erent world marketsI Answer: $sychographic segmentation in(ol(es grouping people in terms o# their attitudes (alues and li#estyles. Respondents are care#ully selected by asking Duestions to assess their attitudes (alues and li#estyles. There are di##erent companies that pro(ide ser(ices and help in assessing these psychographic (ariables. "i##erent groups are gi(en names based on the attributes which describe their attitudes (alues and li#estyles. Automakers rely on this segmentation since the purchase beha(ior o# a considerable sie o# consumers is dependent on psychographic (alues. A psychographic study showed that $orsche buyers could be di(ided into se(eral distinct categories. ne o# the categories ?Top 9un? was #ound to buy $ orsches and expect to be noticed. $roud $atrons and *antasists on the other hand #ound such conspicuous consumption as irrele(ant. Thus automakers can design autos based on the pre#erences o# populations grouped under each category. 7t is pre#erable to market to a mind0set rather than a particular age group. *or #inding such a group psychographic studies are important. These analyses are expensi(e and reDuire care#ul interpretations. 'R7 7nternational one o# the market research organiations has de(eloped A+'@A+' % analyses o# consumers based on psychographic (alues. A research team in !urope identi#ied #our li#estyle groups: 'uccess#ul 7dealists A##luent Materialists Com#ortable -elongers and "isa##ected 'ur(i(ors. The #irst two groups represent the elite while the latter two represented the mainstream !uropean consumers. 7t should be noted that the segmentation and targeting approach used by a company can (ary #rom country to country. Methods that can truly assess a population segment o# a coun try should be employed #or psychographic segmentation. "i##: % $age Re#: %1&0%1, AAC'-: se o# 7T
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4%) "ue to globaliation ?it is a small world a#ter all.? Also (ast scale migration o# populations due to (arious reasons including opportunities has created large segments o# ethnic population. Considering these #acts highlight the ethnic segmentation and its importance. Answer: "ue to se(eral reasons in many countries the population consists o# ethnic groups. *or example in the nited 'tates there are three ma;or ethnic segments F A#rican@-lack AmericansB Asian AmericansB and ispanic Americans. 7n other countries there are such di##erent combinations o# ethnic population. !ach segment shows great di(ersity and can be #urther subdi(ided. !(en those coming #rom one country may ha(e di##erences in language culture religion and other attitudinal aspects. Their purchasing beha(ior is di##erent within groups and sub0groups. *rom a marketing standpoint these groups o##er great opportunity. Companies in a (ariety o# industry sectors primarily #ood and be(eragesB household g oods and #inancing ser(ices can bene#it by targeting these groups. *or example Eapanese automakers ha(e been success#ul in targeting ethnic populations in di##erent parts o# the world. "i##: % $age Re#: %10%12 AAC'-: Re#lecti(e Thinking 4,) =hat are some o# the pit#alls in assessing market potential and choosing target markets or segmentsI Answer: A#ter segmenting the market the next important step is to assess the attracti(eness o# the identi#ied segments. This is an important part when assessing emerging country markets as potential targets. 'e(eral potential pit#alls in assessment should be taken into account. 7n general there is a tendency to o(erstate the sie and short0term attracti(eness o# indi(idual country markets. This can happen i# estimates are based primarily on demographic data such as income and population. *or example the population #igures in 7ndia and China can create a bloated image. 'hort0term pro#itability may be hard due to pre(ailing conditions in these emerging markets. $ersistence and long0term outlook o#ten pays o## in new markets. A second pit#all may originate #rom pressures placed on marketers by shareholders or competitors. The possibility o# missing out on entering a condition is in itsel# a stress0causing #actor. Marketers may #ind themsel(es o(erwhelmed at times by such pressures and the urge to react Duickly. Another #actor may be the decisions made based on con(enience or opinion o# persons@ad(isors not residing in the home country. The right representati(es or distributors should be selected in order to be success#ul. "i##: % $age Re#: %120%13 AAC'-: Analytic 'kills
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4/) 7n 7ndia 2& million middle class men and women earn more than > %3 per month. The segment is growing rapidly and is expected to increase to 3, million by %&1&. Joung consumers are buying international brands and the economy is strong. 7ndia is also the world5s #astest growing cell phone market. The industry is expanding at a rate o# & percent annually with million new subscribers added e(ery month. 'till barriers originating in the political and regulatory en(ironments ha(e shackled pri(ate0sector growth. Considering all o# the abo(e0 mentioned aspects is the market segment large enough #or a company to utilie the opportunity and make a pro#itI "oes it ha(e enough potential #or #uture growth to make it attracti(e #or any company to pursue a long0term strategyI Answer: All o# the in#luencing #actors should be taken into consideration be#ore targeting any country. 7t is possible that the segment in a single0country market might be small e(en a narrow segment can be ser(ed pro#itably i# the segment exists in se(eral countries. ne o# the ma;or #actors that should be considered is the purchasing power. 7n 7ndia the purchasing power is seen by the purchasing o# international branded items although there is a big disparity among income le(els. The segment o# the population is considerable to portray pro#it by selling goods and ser(ices. $ercentages there#ore can be decei(ing in such situations. Also by (irtue o# its sie and purchasing power the global segment can be extremely attracti(e to consumer goods companies. The huge country market pre(alent in 7ndia or China combined with the segment sie and growth potential has to be taken into account. There may also be di##erences between populations residing in urban areas compared to the ones in rural areas. Although the ma;ority o# population resides in rural areas in 7ndia the numbers o# urban consumers are large enough and will be able to a##ord di##erent consumer goods. The #act that there is a h uge market #or cell phones is indicati(e o# the potential business opportunities. Consideration should be gi(en to all these #actors be#ore entering into 7ndia or any other similar country. "i##: % $age Re#: %140%18 AAC'-: Re#lecti(e Thinking 4) Assume that the market segment is ;udged to be large enough and the strong competitors are either absent or deemed to be (ulnerable then is it sa#e to enter the countryI Eusti#y your answer by gi(ing reasons. Answer: 7# the market segment is ;udged to be large enough and there is no strong existing or potential competitors one should not assume that it is sa#e to enter the country. There are se(eral other #actors that can negati(ely impact a business. *or example signi#icant regulatory hurdles may be present that limit market access. The company may also encounter cultural barriers or religious restrictions. ther marketing0speci#ic issues can arise. *or example in 7ndia three to #i(e years are reDuired to build an e##ecti(e distribution system #or many consumer products. Also the appro(als may take a considerably long period o# time. Thus apparent potential does not guarantee success. Managers ha(e a di##icult decision in such conditions. 7# there are certain pre(ailing conditions that reDuire adaptation o# products then that should be taken into account. Also it is important to consider the Duestion o# whether targeting a particular segment is compatible with the company5s o(erall goals its brand image or established sources o# competiti(e ad(antage. "i##: % $age Re#: %18 AAC'-: Re#lecti(e Thinking
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42) "iscuss the basics o# a #ramework #or selecting target markets highlighting the salient #eatures o# "a(id Arnold5s #ramework. Answer: A #ramework #or selecting target markets should take into account the market sie o# the targeted market. The market sie should then be multiplied by the competiti(e ad(antage in that country. Multiplying the market sie and competiti(e ad(antage index yields a market potential. The next step in the analysis reDuires an assessment o# the (arious market access considerations. *inally multiplying the market potential by the terms o# access index gi(es the #inal market potential. This #ramework takes into account the competiti(e ad(antage market potential and the terms o# access. This #ramework should pro(e use#ul as a preliminary screening tool #or intercountry comparisons. owe(er it does not go #ar enough in terms o# assessing actual market potential. 9lobal marketing expert "a(id Arnold has de(eloped a #ramework that goes beyond demographic data and considers other marketing0oriented assessments o# market sie and growth potential. Thus instead o# a ?top0down? segmentation analysis beginning with #or example income or population data #rom a particular country Arnold5s #ramework is based on a ?bottom0up? analysis that begins at the product0market le(el. The product0market re#ers to a market de#ined by a product category. *or example in the automoti(e industry that would re#er to luxury car market. Arnold5s #ramework incorporates two core concepts: marketing model dri(ers and enabling conditions. Marketing model dri(ers are key elements or #actors reDuired #or a business to take root and grow in a particular country market en(ironment. The dri(ers may di##er depending on whether a company ser(es consumer or industrial markets. !nabling conditions are structural market characteristics whose presence or absence can determine where the marketing model can succeed. *or example in 7ndia re#rigeration is not widely a(ailable in shops and market #ood stalls. This creates challenges #or storing dairy products and con#ections. 'o the enabling conditions are (ery important. A#ter marketing0model dri(ers and enabling conditions ha(e been identi#ied the management should weigh the estimated costs associated with entering and ser(ing the market with potential short0 and long0term re(enue streams. ne way to determine the marketing model dri(ers and enabling conditions is to create a product0 market pro#ile. "i##: % $age Re#: %%&0%%1 AAC'-: Re#lecti(e Thinking
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43) A#ter e(aluating the identi#ied segments decisions ha(e to be made whether to pursue a particular opportunity or not. Assuming the decision is made to proceed an appropriate targeting strategy must be de(eloped. !xplain the basic categories o# target marketing strategies and how they can be implemented. Answer: The three basic categories o# target marketing strategies are: standardied marketing concentrated marketing and di##erentiated marketing. 'tandardied global marketing is analogous to mass marketing in a single country. 7t in(ol(es creating the same marketing mix #or a broad mass market o# potential buyers. 7t is also known as undi##erentiated target marketing since it is based on the premise that a mass market exists around the world. $roduct adaptation is minimied and a strategy o# intensi(e distribution ensures that the product is a(ailable in the maximum number o# retail outlets. The appeal o# standardied global marketing is due to the lower production costs. The concentrated target marketing in(ol(es de(ising a marketing mix to reach a niche. A niche is single segment o# the global market. *or example in co smetics Chanel has used to target the upscale prestige segment o# the market. Concentrated targeting is also the strategy employed by the hidden champions o# global marketing. Companies unknown to most people that ha(e succeeded by ser(ing a niche market that exists in many countries. These companies de#ine their markets narrowly and stri(e #or global depth rather than national breadth. The narrowing o# market de#inition is the key principle in this strategy. The third category di##erentiated global marketing represents a more ambitious approach than concentrated target marketing. 7t is also known as multisegment targeting. 7t entails targeting two or more distinct market segments with multiple marketing mix o##erings. This strategy allows a company to achie(e wider market co(erage. *or example in the sport utility (ehicle segment Ro(er has a Range Ro(er at the high end o# the market. A scaled down (ersion the +and Ro(er "isco(ery is o##ered which competes directly with the Eeep 9rand Cherokee. The *reelander its newest (ehicle has been on sale in !urope #or se(eral years. Thus there is a multi0pronged approach to marketing. "i##: % $age Re#: %%%0%%, AAC'-: Analytic 'kills
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44) arley0"a(idson a (ery popular ad(enture seeking company is (ery well known in the nited 'tates. ow did they de(elop ?think global act local? strategies to target ad(enture seekers in global marketsI Answer: arley0"a(idson G0") company has grown impressi(ely during its #irst 1&& years o# operation. As the twenty0#irst century began they started mo(ing o(erseas with ha(ing dealerships in about /4 countries. There was a six0month waiting period in many countries to get their motorcycles. The company was (ery slow to mo(e in o(erseas markets as well as slow in reacting to a growing threat #rom Eapanese manu#acturers. Their marketing e##orts were not (ery aggressi(e and e(en their print ad(ertising used word0#or0word translations o# their .'. ads. -y late 184&5s they realied that they wer losing their competiti(e edge and they needed to think global but act local. 7n Eapan 0"5s rugged image and high Duality helped make it the best0 selling imported motorcycle. 'till their tag line #rom the .'. ?ne steady constant in an increasingly screwed0up world? did not go (ery well with Eapanese consumers since they really did not connect with the meaning o# the slogan. *inally the president o# the 0"5s Eapanese di(ision con(inced the .'. manu#acturer to use ad(ertising campaigns using Eapanese characters and (erbiage. A rickshaw and a geisha represented the background depicting the Eapanese #ashion and customied bikes. 7n !urope 0" disco(ered that an ?e(ening out? means something di##erent than it does in America. The company sponsored a rally in *rance where beer and li(e rock music were a(ailable until midnight. The rally went until , or / am. Again it shows the cultural di##erences that needed to be considered by 0". The company had to make design changes since 9erman bikers o#ten tra(eled at a speed exceeding 1&& miles per hour. Also the 9erman marketing e##ort included #ocusing on accessories to increase rider p rotection. They realied the core picture and demand o# the !uropean customers and de(eloped their strategies accordingly. The demand increased considerably and those who were dri(ing motorbikes were actually high0income earners. The company intentionally keep s low production limits to emphasie high Duality. "i##: % $age Re#: %1,0%1 AAC'-: Re#lecti(e Thinking
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48) Colgate Total toothpaste is positioned as the brand that addresses all aspects o# oral health. 'uch positioning is (ery important #rom the business point o# (iew. ow does positioning help in deciding on a marketing strategyI =hat are the di##erences between using ?attribute or bene#it? and ?Duality and price? as positioning strategyI Answer: $ositioning re#ers to the act o# di##erentiating a brand in customers5 minds in relation to competitors in terms o# attributes and bene#its that the brand does and does not o##er. 7t is the process o# de(eloping strategies #or marketing purposes. 7t is #reDuently used in con;unction with the segmentation (ariables and targeting strategies. ?Attribute or bene#it? strategies are used to expose a particular product attribute bene#it or other special #eature. Aspects such as economy reliability multiple uses durability and simplicity are (ery commonly used to describe the attributes o# a product or ser(ice. *or example isa5s ad(ertising theme ?7t5s !(erywhere Jou =ant to -e? exposes its bene#it o# being use#ul at any place in the world. Thus these types o# slogans themes or ;ingles (ery cle(erly outline the bene#its or attributes o# a product. A similar strategy that is used is related to ?Nuality and $rice.? This strategy can be considered in light o# a continuum #rom high #ashion@Duality and high price to good (alue. 'watch watches ad(ertise their Duality 'wiss origin as well as a##ordable price. This way price is always tied to the Duality and durability o# the product or ser(ice. "i##: % $age Re#: %%/0%% AAC'-: Analytic 'kills 8&) =hat are the ma;or di##erences between 9lobal *oreign and +ocal consumer culture positioningI =hy are these di##erences signi#icantI 9i(e examples o# how companies are trying to lure customers using these positioning strategies. Answer: 9lobal consumer culture positioning G9CC$) is de#ined as a strategy that identi#ies the brand as a symbol o# a particular global culture or segment. 7t has pro(en to be an e##ecti(e strategy #or communicating with global teens cosmopolitan elites and globe0 trotting laptop warriors who consider themsel(es members o# a transnational commerce culture. *or example 'ony5s slogan ?My #irst 'ony? is positioned as the electronics brand #or youngsters around the globe with discerning parents. -enetton uses the slogan ?nited Colors o# -enetton? to position itsel# as a brand concerned with the unity o# humankind. Categories o# products that lend themsel(es to this positioning are both associated with high le(els o# cu stomer in(ol(ement and by a shared ?language? among users. igh tech products such as i$odB i$honeB M$, playersB (ideo camerasB and all such technology0prone items #all into these categories. *oreign consumer culture positioning G*CC$) associates the brand5s users use occasions or production origins with a #oreign country or culture. *oster5s -rewing 9roup5s .'. ad(ertising proudly uses the brand5s nation origin in all o# its print ads and other promotions as being Australian. +ocal consumer culture positioning G+CC$) strategy associates the brand with local cultural meanings re#lects the local culture5s norms portrays the brand as co nsumed by local people in the national culture or depicts the product as locally produced #or local consumers. -udweiser5s .'. ad(ertising particularly #ocuses on local aspects. "i##: % $age Re#: %%20%,& AAC'-: Re#lecti(e Thinking
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