Global Market Segmentation Overview
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Global Market Segmentation Overview

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Questions and Answers

What is the primary purpose of global market segmentation?

  • To maximize market share in one region
  • To reduce marketing costs
  • To increase production efficiency
  • To divide the world market into distinct subsets of customers (correct)

    • Which of the following is NOT a type of segmentation method used by global marketers?

  • Quantitative segmentation (correct)
  • Geographic segmentation
  • Demographic segmentation
  • Psychographic segmentation

    • What does demographic segmentation primarily focus on?

  • Measurable population characteristics (correct)
  • Cultural and social norms
  • Psychological traits of consumers
  • Consumer behaviors and decisions

    • What factor is generally considered the most important in demographic segmentation?

    <p>National income</p> Signup and view all the answers

    How can geographic segmentation be described?

    <p>Dividing the world into geographic subgroups</p> Signup and view all the answers

    What is the implication of the statement 'proximity does not mean similarity' in geographic segmentation?

    <p>Merely being near each other does not result in shared characteristics</p> Signup and view all the answers

    What is the goal of using a product-market grid in targeting decisions?

    <p>To visualize market segments and their product needs</p> Signup and view all the answers

    What does behavioral segmentation focus on?

    <p>Consumer preferences and purchasing habits</p> Signup and view all the answers

    What should be considered when assessing the attractiveness of individual country markets?

    <p>Management’s contacts and network</p> Signup and view all the answers

    Which of the following is NOT one of the three basic criteria for targeting a market segment?

    <p>Historical sales performance</p> Signup and view all the answers

    What does the current size of a market segment need to provide for a company?

    <p>Opportunity to make a profit</p> Signup and view all the answers

    When evaluating potential competition, which factor should be analyzed?

    <p>Competitors' vulnerability in price or quality</p> Signup and view all the answers

    Why is long-term growth potential important when assessing a market segment?

    <p>It influences a company’s overall strategy</p> Signup and view all the answers

    Which aspect is vital in determining whether adaptation to the market is necessary?

    <p>Economic justification in terms of expected sales</p> Signup and view all the answers

    What is a significant demographic fact about credit card ownership in China?

    <p>Only 1% of Chinese have credit cards</p> Signup and view all the answers

    Assessing whether a market segment has the potential for profit includes examining which of the following factors?

    <p>Long-term development and growth opportunities</p> Signup and view all the answers

    What effect do import restrictions have on the pricing of products in the target market currency?

    <p>They increase the product's price in the target market.</p> Signup and view all the answers

    Which of the following questions is NOT part of creating a product-market profile?

    <p>What are the latest trends in fashion?</p> Signup and view all the answers

    Which of the following describes undifferentiated target marketing?

    <p>Mass marketing on a global scale with minimal adaptation.</p> Signup and view all the answers

    What is a characteristic of concentrated global marketing?

    <p>Focusing on a single segment of the global market.</p> Signup and view all the answers

    How does a strong home country currency impact pricing in the target market?

    <p>It can increase the price in the target market currency.</p> Signup and view all the answers

    What is a key benefit of using a standardized global marketing approach?

    <p>Lower communication costs.</p> Signup and view all the answers

    What is the primary focus of differentiated global marketing?

    <p>Targeting multiple distinct markets with tailored strategies.</p> Signup and view all the answers

    When creating a matrix for product-market decisions, what should be primarily analyzed?

    <p>Current and potential products that best match country markets.</p> Signup and view all the answers

    What percentage of the population is categorized as Successful Idealists?

    <p>5% to 20%</p> Signup and view all the answers

    Which of the following best describes Affluent Materialists?

    <p>Individuals demonstrating success through conspicuous consumption.</p> Signup and view all the answers

    What are Comfortable Belongers most content with?

    <p>The comfort of home and community.</p> Signup and view all the answers

    Disaffected Survivors generally feel which of the following?

    <p>Resigned or resentful towards society.</p> Signup and view all the answers

    What is the core concept of the Benefit Segmentation approach?

    <p>Understanding the problem a product solves and its benefits.</p> Signup and view all the answers

    The 80/2 Rule, also known as the Law of Disproportionality, states what?

    <p>20% of customers account for 80% of a company’s revenues.</p> Signup and view all the answers

    Which group makes up a significant portion of ethnic diversity in the U.S. population?

    <p>Hispanic Americans</p> Signup and view all the answers

    What characteristic is common among Disaffected Survivors?

    <p>Living in high-crime urban inner cities.</p> Signup and view all the answers

    What is the primary goal of positioning a brand?

    <p>To locate a brand in consumers’ minds against competitors</p> Signup and view all the answers

    Which of the following is NOT a key aspect of brand positioning?

    <p>Market Saturation</p> Signup and view all the answers

    How does the competition aspect of positioning function?

    <p>It creates an implicit or explicit reference to competition</p> Signup and view all the answers

    Which brand exemplifies the 'economy' attribute in positioning?

    <p>Generic store brands</p> Signup and view all the answers

    What benefit does Dove's 'Campaign for Real Beauty' provide?

    <p>A new definition of beauty appealing to a wider audience</p> Signup and view all the answers

    In what way does quality relate to price in brand positioning?

    <p>Quality and price exist on a continuum</p> Signup and view all the answers

    Which of the following best describes the concept of 'Use or User' in brand positioning?

    <p>Associating the brand with a specific user class</p> Signup and view all the answers

    Which positioning strategy is exemplified by the BMW tagline 'The Ultimate Driving Machine'?

    <p>Benefit-focused positioning</p> Signup and view all the answers

    Study Notes

    Global Market Segmentation

    • Segmentation involves dividing the world market into groups of customers with similar needs.
    • Pluralization of Consumption is a theory suggesting that consumers increasingly seek variety, leading to the emergence of new market segments in national markets.
    • Demographic Segmentation utilizes measurable population characteristics such as age, income, gender, education, and occupation.
    • Psychographic Segmentation considers factors like lifestyle, personality, values, attitudes, and interests.
    • Behavior Segmentation focuses on user status and how much and how often a product is purchased.
    • Benefit Segmentation emphasizes the value equation (Benefits/Price) by understanding the problems a product solves and the benefits it offers.
    • Euroconsumers recognize five consumer segments: Successful Idealists, Affluent Materialists, Comfortable Belongers, Disaffected Survivors, and
      Aspirational.
    • Hispanic Americans represent a significant market with a large population and substantial buying power ($978 billion annually).

    Assessing Market Potential

    • Several pitfalls to avoid when assessing market potential include overstating market size, neglecting long-term growth, and relying solely on personal contacts.
    • Three basic criteria for assessing market potential: current segment size and anticipated growth potential, potential competition, and compatibility with company objectives and feasibility of reaching the target audience.

    Target Market Strategy Options

    • Standardized Global Marketing (undifferentiated target marketing) involves mass marketing on a global scale with minimal product adaptation and a standardized marketing mix.
    • Concentrated Global Marketing (niche marketing) targets a single global market segment, seeking global depth rather than wide market coverage.
    • Differentiated Global Marketing (multi-segment targeting) aims to reach two or more distinct market segments, providing wider market coverage.

    Positioning

    • Positioning involves placing a brand in the consumer's mind relative to competitors based on brand attributes and benefits.
    • Positioning strategies include associating with an attribute or benefit, emphasizing quality and price, linking with specific use or user, and referencing competition.
    • Foreign Consumer Culture Positioning uses foreign origins as a key benefit to appeal to customers.
    • Competition-Based Positioning utilizes implicit or explicit references to competitors.

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    Related Documents

    Global Marketing Ninth Edition - Chapter 7 PDF

    Description

    This quiz explores the various types of market segmentation, including demographic, psychographic, and behavioral approaches. It also delves into concepts such as pluralization of consumption and specific consumer segments like Euroconsumers and Hispanic Americans. Test your understanding of these crucial marketing concepts.

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