Deck 7: Segmentation, Targeting, and Positioning

Question 1

In the study entitled "The Euroconsumer: Marketing Myth or Cultural Certainty?" researchers identified four lifestyle groups. The group that represents mainstream European consumers was labeled as:

A)Successful Idealists.
B)Affluent Materialists.
C)Young Professionals.
D)Trendy Teens.
E)Disaffected Survivors.

Answer 1

E

Question 2

Global marketing authority, Theodore Levitt, has noted that many ethnic and regional foods-sushi, for example-are enjoying popularity in many countries of the world. This observation is known as the:

A)pluralization of consumption.
B)ethnicitization of consumption.
C)democratization of consumption.
D)sophistication of consumption.
E)domestication of consumption.

Answer 2

A

Question 3

Demographic segmentation is based on measurable characteristics of populations which includes all of the following examples except:

A)Asia is home to 500 million consumers aged 16 and younger.
B)India has more than half of the population younger than 25.
C)Consumers that buy Porsches would like to be noticed.
D)The United States is home to 28.4 million foreign-born residents with combined income of $ 233 billion.
E)In the EU, the number of consumers aged 16 and under is rapidly approaching consumers aged 60.

Answer 3

C

Question 4

A. Coskun Samli had developed a useful approach to global market segmentation that compares and contrasts "conventional" versus "unconventional" wisdom. An example of unconventional wisdom can be identified with one of the following assumptions:

A)Since per capita annual income in India is about $1,420, all Indians have low income.
B)Consumers in Europe and Latin America are interested in World Cup soccer whereas Americans are not.
C)There is a presence of a higher-income, middle-class segment in India.
D)The potential customer base for McDonald's in India is greater than in any developed country.
E)There is no running water and electricity in India.

Question 5

In 2013, the 10 most populous countries in the world accounted for just over ________ percent of the world income.

A)20
B)30
C)40
D)50
E)60

Question 6

The trend showing popularity of ethnic or regional foods such as sushi, falafel, or pizza worldwide is referred to as the ________, which provides an opportunity for marketers to pursue one or more segments on a global scale.

A)segmentation of markets
B)popularity of segmentation
C)promotion of products and services
D)identification of consumers
E)pluralization of consumption

Question 7

The concentration of wealth in a handful of industrialized countries has significant implications for global marketers. After segmenting in terms of a single demographic variable-income- a company can reach the most affluent markets which does not include:

A)half of the EU nations
B)all of North America
C)Canada and Mexico
D)90 percent of the world's population
E)Japan.

Question 8

A global segment is referred to as "global elite," which includes:

A)people between the ages of 12 and 19.
B)affluent, well-traveled persons.
C)the graying population.
D)technology professionals.
E)persons having power.

Question 9

McDonald's operates in over 118 countries; however, 80% of its restaurants are located in nine countries which does not include the following country market:

A)Australia.
B)Brazil.
C)Germany.
D)India.
E)Japan.

Question 10

Ericsson, IKEA, Saab, and other companies based in Sweden have looked beyond their borders for significant growth market because:

A)Sweden has high total annual income.
B)Sweden has low total annual income.
C)Sweden has a fairly small population.
D)Sweden is land locked geographically.
E)Sweden has relaxed export policies.

Question 11

Based on 2013 projections, the top 10 nations ranked by per capita income does not include:

A)Switzerland.
B)Qatar.
C)Russia.
D)Norway.
E)Australia.

Question 12

The process of global market segmentation begins with the choice of one or more variables to use as a basis for grouping customers. All of the following are variables that are commonly used except:

A)demographics.
B)polycentrics.
C)behavioral characteristics.
D)benefits sought.
E)psychographics.

Question 13

Porsche AG uses the label "Top Guns" to describe one segment of its customers, namely those who care about power and control and who expect to be noticed. Such a profile would be based on which type of segmentation?

A)demographic
B)occupational
C)psychographic
D)behavioral
E)gender

Question 14

The concentration of income in the high-income and large-population countries means that a company can be "global" by targeting buyers in:

A)just 50 countries.
B)just 20 countries.
C)just 10 or fewer countries.
D)just 30 countries.
E)none of the above

Question 15

A global segment is referred to as "global teens" which includes:

A)people with shared interest in fashions.
B)affluent, well-traveled persons.
C)movie stars.
D)technology professionals.
E)persons having power.

Question 16

SRI International developed Values and Lifestyles (VALS). Such a consumer profile would be helpful for which type of segmentation?

A)demographic
B)occupational
C)psychographic
D)behavioral
E)gender

Question 17

The efforts of global companies to reach low-income consumers in emerging markets highlight the importance of skillful global market segmentation and targeting. Market segmentation represents:

A)targeting prospective customers.
B)finding customers who can respond to advertisement.
C)promoting products and services internationally.
D)identifying customers who can help in promoting products.
E)identifying customers based on common characteristics.

Question 18

A global segment is referred to as "global teens" which includes:

A)people between the ages of 12 and 19.
B)affluent, well-traveled persons.
C)young, global travelers.
D)technology professionals.
E)persons having power.

Question 19

Psychographic segmentation involves grouping people in terms of their:

A)combined household income.
B)age and income.
C)attitudes, values, and lifestyle.
D)psychological well being.
E)gender.

Question 20

When identifying global market segments, a fundamental guiding principle should be the need to determine:

A)shared demographic characteristics.
B)similar languages.
C)similar needs and buying behavior.
D)similar ethnic backgrounds.
E)similar geographic regions.

Question 21

"Usage rates" and "user status" are important criteria for which segmentation variable?

A)demographic
B)occupational
C)psychographic
D)behavioral
E)benefit

Question 22

After convening worldwide employee conferences to study women's shaving preferences, Schick-Wilkinson Sword introduced a shaving system for women that features a replaceable blade cartridge.

Question 23

The law of disproportionality suggests that ________ percent of the company's menu or profits are accounted for the 20 percent of a firm's products or customers.

A)50
B)60
C)70
D)80
E)90

Question 24

Sony's U.S. consumer segments include all of the following except:

A)Affluent.
B)Zoomers.
C)SoHo.
D)Gen Y.
E)Fashionists.

Question 25

India has the youngest demographic profile among the world's large nations with more than half of its population being younger than 25 and the number of young people below the age of 14 is greater than the entire U.S. population.

Question 26

The DMBB (D'arcy Massius Benton & Bowles)agency created a psychographic profile of the Russian market. The categories include all of the following except:

A)Kuptsy.
B)Cossacks.
C)Elites.
D)Students.
E)Business Executives.

Question 27

According to Euromonitor International, the global market for foods that offer health benefits is currently worth about $________ billion in annual sales.

A)300
B)400
C)500
D)600
E)700.

Question 28

Sushi, falafel, tandoori chicken or pizza is in demand in many parts of the world. This phenomenon can be due to the pluralization of consumption and segment simultaneity.

Question 29

In a study entitled "The Euroconsumer: Marketing Myth or Cultural Certainty?" researchers identified different lifestyle groups. The segment that is concentrated in high-crime, inner-city neighborhoods were classified as:

A)Successful Idealists.
B)Affluent Materialists.
C)Disaffected Survivors.
D)Trendy Teens.
E)Comfortable Belongers.

Question 30

Nutraceuticals are health food products which are manufactured by:

A)Kraft foods.
B)General Mills
C)Campbell's soups.
D)Nestlé foods.
E)Gerber foods.

Question 31

Several years ago, the D'arcy Massius Benton & Bowles (DMB
B)agency created psychographic profiles for several countries and regions." Which region did the survey specifically focused on?

A)Asia
B)America
C)Europe
D)Australia

Question 32

Global market segmentation is based on the premise that companies should attempt to identify consumers in different countries who share similar needs and desires.

Question 33

For some consumer products such as cigarettes, soft drinks, and candy that have a low per-unit cost, income is often a more valuable segmentation variable than is population.

Question 34

Dove, a division of Unilever, traditionally targeted men and women with its Dove-branded skin care products.

Question 35

Procter & Gamble has identified a group of consumers in Europe who are willing to pay premium prices for pet food that will improve the health of their pets. This is an example of ________ segmentation.

A)demographic
B)psychographic
C)ethnic
D)behavioral
E)benefit

Question 36

Diageo PLC, V&S Vin & Spirit AB, and Seagram and other marketers know that Russians consume a great deal of vodka. This type of market segmentation can be classified as:

A)demographic.
B)behavioral.
C)psychographic.
D)occupational.
E)benefit.

Question 37

Global marketers must determine whether a standardized or an adapted marketing mix is required to best serve the wants and needs of the consumers.

Question 38

Three Mexican retailers Famso, Grupo Gigante SA, and Grupo Comercial Chedraui SA have opened stores in the United States. This is an indication of:

A)U.S. retailers were lagging behind in collecting demographic information.
B)the Mexican retailers provide better products than American stores.
C)the Hispanic American segments represent a great opportunity for marketers.
D)American businesses cannot compete with Mexican retailers.
E)the Mexican retailers would like to compete with businesses like Best Buy and Circuit City.

Question 39

Campbell's Soup is making significant inroads into Japan's $500 million soup market as time-pressed homemakers place a premium on convenience. This type of consumer segmentation by Campbell's Soup is referred to as:

A)demographic.
B)occupational.
C)psychographic.
D)benefit.
E)behavioral.

Question 40

In response to increasing worldwide concerns about obesity, diabetes, and other food-related health issues, some of the world's largest food companies are developing new products. Nestlé and Groupe Danone SA have developed several health-foods which include all of the following except:

A)Souvenaid.
B)Activa.
C)NutriChoice.
D)Nutraceuticals.
E)Medical Foods.

Question 41

The basis for global marketing expert David Arnold's framework for screening intercountry comparisons include:

A)demographic data.
B)"top-down" segmentation analysis.
C)"bottom-up" segmentation analysis.
D)income level.
E)population data.

Question 42

Which of the following is true about efforts by automakers to target the Hispanic segment in the United States?

A)Honda, Toyota, Ford, and GM all began targeting the segment years ago.
B)Honda and Toyota began targeting the segment years ago; Ford and GM launched their efforts more recently.
C)Ford and GM began targeting the segment years ago; Honda and Toyota launched their efforts more recently.
D)Only Ford and GM are targeting the Hispanic segment.
E)none of the above

Question 43

Basic criteria that marketers should keep in mind while assessing opportunities in global markets include all of the following except:

A)current size of the market segment.
B)anticipated growth potential of the market.
C)compatibility with company's overall objectives.
D)competition in the market.
E)securing first mover advantage.

Question 44

Sometimes it is preferable to market to a particular age group rather than a mind-set; in such an instance, psychographic studies can help marketers arrive at a deeper understanding of consumer behavior than is possible with traditional segmentation variables.

Question 45

Global automakers are targeting the U.S. market with SUVs. All of the following SUVs are assembled or manufactured in the listed country except:

A)Porsche in Germany.
B)Honda in Japan.
C)Volkswagen in Slovakia.
D)Kia in India.
E)Mercedes-Benz in the United States.

Question 46

Sweden's smaller population explains why IKEA, Saab, and Ericsson have looked beyond their borders for significant growth opportunities.

Question 47

For behavior segmentation, marketers use the 80/20 rule when assessing the consumers' usage rate, which means that 20% of the company's revenues or profits are accounted for by 80% of the firm's products or customers.

Question 48

When assessing potential country target markets, management should rely heavily on its network of contacts as a primary criterion for targeting.

Question 49

Despite having comparable per capita incomes, other industrialized countries are nevertheless quite small in terms of total annual income.

Question 50

The feasibility of targeting a particular market segment can be negatively impacted by various factors. Which of the following is not of those factors?

A)regulatory hurdles.
B)cultural barriers.
C)lack of distribution system.
D)time required to establish business.
E)surplus demand.

Question 51

Which of the following criteria should marketers use when assessing opportunity in global target markets?

A)current size of the segment
B)anticipated growth potential
C)competition
D)compatibility with company's overall objectives
E)all of the above

Question 52

Eighty percent of McDonald's restaurants are located globally in more than 20 countries.

Question 53

Demographic changes can create opportunities for marketing innovation. Justify this statement using examples.

Question 54

An example of a trap that marketers can set for themselves while targeting a foreign market is to:

A)overstate the size and short-term attractiveness of individual country markets.
B)realize that short-term profit and revenue growth objectives may be hard to achieve.
C)restrain from being persistent to enter a country market.
D)ignore shareholders' or competitors' pressure not to "miss out" on a strategic opportunity.
E)enter a market based on time-consuming rigorous market analysis.

Question 55

Categories such as "successful idealists" and "affluent materialists" can be used to describe age segmentation.

Question 56

Pareto's Law suggests that 80% of a company's revenues or profits are accounted for by 20% of a firm's products or customers.

Question 57

Managers must decide how well a company's product fits the country market by asking all of the following questions except:

A)Will adaptation be required?
B)Will import restriction drive up the product price?
C)Is it advisable to source locally?
D)Will strong home currency have an adverse impact on product price?
E)Will it be possible to neglect home-country regulations?

Question 58

By 2030, 30 percent of the U.S. population will be 65 years or older versus 13 percent today.

Question 59

A psychographic segmentation, "Comfortable Belongers" refers to "up-and-comers" of a country's population.

Question 60

Ideally, GDP and other measures of national income converted to U.S. dollars should be calculated on the basis of purchasing power parities or through direct comparisons of actual prices for a given product.

Question 61

Companies like Coca-Cola had the first-mover advantage since they were the first company to enter a global market. The first-mover advantages include all of the following except:

A)best chance of becoming world leader.
B)advantage in adapting to the local culture.
C)lead in advertising and promotion exposure.
D)gain business experience.
E)substantial investments in marketing.

Question 62

Late movers in global markets can never succeed even by developing innovative business models.

Question 63

One of the advantages of targeting a market segment globally is that although the segment in a single-country market might be small, even a narrow segment can be served profitably if the segment exists in several countries.

Question 64

There is a tendency to overstate the size and short-term attractiveness of individual country markets, especially when estimates are based primarily on demographic data such as income and population.

Question 65

What are some of the pitfalls in assessing market potential and choosing target markets or segments?

Question 66

As Emirates and other middle eastern carriers penetrate more deeply into the world's largest aviation market, they are becoming known for very high-quality in-flight service.

Question 67

IKEA, the home furnishings retailer based in Sweden, wraps itself in the Swedish flag-literally, since inside and out, their stores are decorated in the national colors of blue and yellow. This is an example of local consumer culture positioning.

Question 68

Marketing model drivers are key elements or factors required for a business to take root and grow in a particular country market environment.

Question 69

Middle eastern airlines have encountered some opposition. United Continental, American Airlines, and Delta have filed complaints with the US Government that the state-owned carriers are benefiting from substantial government subsidies.

Question 70

France has a fragmented shop system that consisted of small, specialized stores such as the boulangerie and charcuterie; which became a part of France's national heritage.

Question 71

Lexus developed new diesel models as well as a gas-hybrid engine because Germans want the option of buying vehicles with diesel engines.

Question 72

Differentiated global marketing represents a more ambitious approach than concentrated target marketing.

Question 73

One of the first-mover disadvantages is that a late-mover competitor may reap benefit from the investments made in marketing and establishing in a particular country.

Question 74

BMW's slogan "the ultimate driving machine," is an example of an attribute or benefit which has proven successful in their positioning strategy.

Question 75

A market segment or country market characterized by weak competition may be a segment to avoid.

Question 76

When making a decision about market entry timing, a company's management team should understand that the first-mover always becomes the market leader.

Question 77

Both Nestlé and Cadbury determined that a liquid chocolate confection would be one way to address the issue of India's hot weather. This is an example of:

A)differentiated target marketing.
B)standardized global marketing.
C)competitive global marketing.
D)target benefit marketing.
E)product-market decision

Question 78

Discuss the basics of a framework for selecting target markets highlighting the salient features of David Arnold's framework.

Question 79

India is the world's fastest growing cell phone market with the industry expanding at a rate of 50% annually with 5 million new subscribers added every month. This is an indication of continued private-sector growth.

Question 80

Due to globalization, "it is a small world after all." Also, vast scale migration of populations due to various reasons, including opportunities, has created large segments of ethnic population. Considering these facts, highlight the ethnic segmentation and its importance.