5

Question 1

Market segmentation refers to

Answer 1

aggregating prospective buyers into groups or segments with common needs and who respond similarly to a marketing action.

Question 2

Global Market Segmentation is

Answer 2

the process of dividing the world market into distinct subsets of customers that have similar needs (e.g., country groups or individual interest groups).

Question 3

Segmentation methods (4 types)

Answer 3

Demographic, Psychographic, Behaviour, and Ethnic segmentation.

Question 4

Demographic Segmentation is

Answer 4

based on measurable population characteristics; age, income, gender, education, occupation.

Question 5

Psychographic Segmentation involves

Answer 5

grouping people in terms of their attitudes, values, and lifestyles.

Question 6

Behaviour Segmentation focuses

Answer 6

on whether people purchase a product or not, how much, and how often they use it.

Question 7

Pluralization of Consumption or segment simultaneity theory states

Answer 7

that consumers seek variety and new segments will appear in many national markets. e.g., sushi, pizza

Question 8

Targeting involves

Answer 8

evaluating the segments and focusing marketing efforts on a country, region, or group of people that has significant potential to respond.

Question 9

Pitfalls of targeting

Answer 9

• Tendency to overstate the size and short-term
  attractiveness of individual country markets.
• The company does not want to ‘miss out’ on a
  strategic opportunity
• Management’s network of contacts will emerge
  as a primary criterion for targeting

Question 10

Important: When assesing market potential this should be considerd:

Answer 10

• Current size of the segment and growth potential
  o Single market segment may be small but if in several countries may hold potential
• Potential competition
  o May avoid markets with strong competition unless vulnerable because of price or quality
• Feasibility and compatibility
  o Regulatory factors
  o Marketing issues like distribution
  o Adaptation?

Question 11

Important: Target Market Strategy Options

Answer 11

Undifferentiated, Concentrated or Differentiated Global Marketing.

Question 12

Undifferentiated Marketing Strategy is

Answer 12

Standardized global marketing, meaning massmarketing, standard, mnimal adaptaion, intensive distrobution & low production and communication costs.

Question 13

Concentrated Global Marketing includes

Answer 13

o Niche marketing
o Single segment of global market
o Look for global depth rather than national breadth

Question 14

Differentiated Global Marketing includes

Answer 14

o Multisegment targeting
o Two or more distinct markets
o Wider market coverage

Question 15

Positioning is

Answer 15

locating a brand in consumers’ minds over and against competitors in regards to Attribute or Benefit, Quality and Price, Use or User, & Competition.

Question 16

1) Segmentation, 2) Targeting & 3) Positioning means to

Answer 16

1) Divide market, 2) Determine to focus on a group & 3) Create product positioning and marleting mix that is most likely to appeal to the selected audiance.