Question 1

Lack of scale and a shortage of capital are just two of the problems associated with reaching the world's poor.Prices can also be a problem.There is an ample evidence that world's best known global marketers recognize this.For example, Adidas has developed a sneaker priced at one euro that it hopes to sell in Bangladesh.

Accepted Answer

The statement mentions that Adidas has developed a sneaker priced at one euro to sell in Bangladesh, which shows that they recognize the problem of prices being a barrier to reaching the world's poor.

Question 2

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.

Accepted Answer

The answer of India is the world's fastest growing cell...

Question 3

There is a significant difference between the "mass market" and the "premium market." In the premium market customers are looking for a good deal whereas in the mass market customers are looking for a product that fulfills their expectations.

Accepted Answer

The statement is incorrect. In the premium market, customers are willing to pay a higher price for superior quality and features, while in the mass market, customers are looking for affordable and accessible products that meet their basic needs.

Question 4

Standardized global marketing is analogous to mass marketing in a single country and is also known as differentiated target marketing.

Accepted Answer

Standardized global marketing involves creating a standardized marketing strategy and implementing it across multiple countries or regions. This is different from mass marketing in a single country, which involves targeting a large, undifferentiated audience. Differentiated target marketing, on the other hand, involves targeting specific segments or niches within a larger market.

Question 5

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.

Accepted Answer

This statement is true. By targeting a market segment globally, a company can expand its customer base as the segment might be larger when considering multiple countries instead of just one. This can make serving the segment profitable even if it is small in each individual country.

Question 6

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 country.

Accepted Answer

This is true, as a late-mover competitor can learn from the mistakes of the first-mover and enter the market with a perfected strategy. Additionally, the first-mover may have invested a lot of time and money into establishing their brand, which the late-mover can benefit from without having to make the same initial investments.

Question 7

America's Hispanic population shares a common language, and so in ethnic segmentation they can be grouped as one segment.

Accepted Answer

While many Hispanic individuals may share a common language, such as Spanish, it is important to recognize that the Hispanic population is diverse and encompasses various cultures and subgroups with unique values, traditions, and customs. Therefore, it is not accurate to group all Hispanics as one homogenous segment in ethnic segmentation.

Question 8

In India, refrigeration is not widely available and this restricts many foreign companies from marketing items that need refrigeration.This can be considered as one of the "enabling conditions" that needs to be considered in a marketing model.

Accepted Answer

The lack of widely available refrigeration in India can indeed be considered as an enabling condition that could affect foreign companies' marketing strategies for items that require refrigeration.

Question 9

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.

Accepted Answer

The answer of IKEA, the home furnishings retailer based in...

Question 10

In China, only about 1% of the population currently owns a credit card.Thus Visa is targeting persons with a monthly salary equivalent to $300 or more.

Accepted Answer

Visa is targeting individuals with a monthly salary equivalent to $300 or more because only about 1% of the Chinese population currently owns a credit card.

Question 11

Marketers must understand that many Hispanic Americans live in two worlds; although they identify strongly with the United States, there is also a sense of pride associated with brands that connect to their heritage.

Accepted Answer

This statement is true. Hispanic Americans often have a strong connection to their heritage and culture, while also identifying as American. Marketers must take this into consideration when targeting this demographic.

Question 12

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

Accepted Answer

This statement accurately represents Pareto's Law, which states that 80% of effects come from 20% of causes. In this case, it means that 80% of a company's revenues or profits come from only 20% of its products or customers.

Question 13

About 1.3 million cars are sold each year in India; in absolute terms, this is a relatively small number.

Accepted Answer

The statement says that 1.3 million cars are sold each year in India, which is a relatively small number. This means that the number of cars sold is not very large, which is true.

Question 14

Global benefit segmentation is based on a marketer's understanding of the problem a product solves, the benefit it offers, or the issue it addresses, regardless of geography.

Accepted Answer

Global benefit segmentation is focused on the benefits offered by a product rather than geographical location. It identifies common problems or needs across different countries or regions and segments the market based on the benefits that the product or service provides to solve those problems or needs.

Question 15

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

Accepted Answer

Differentiated global marketing involves targeting multiple segments or markets with tailored marketing strategies, while concentrated target marketing focuses on one specific market segment. Thus, differentiated global marketing involves a broader and more ambitious approach.

Question 16

Benetton uses the slogan "United Colors of Benetton" to position itself as a brand concerned with the unity of humankind.This type of strategy is referred to as GCCP (global consumer culture positioning).

Accepted Answer

The statement is true. GCCP refers to the positioning of a brand as a global, inclusive, and transcultural entity that celebrates diversity and promotes unity among consumers from different countries and cultures. Benetton's "United Colors of Benetton" campaign is an example of GCCP positioning.

Question 17

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

Accepted Answer

BMW's slogan emphasizes the attribute of driving performance and the benefit of an exceptional driving experience, which has helped them create a unique position in the luxury car market.

Question 18

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

Accepted Answer

While a network of contacts can be valuable for gaining insights and facilitating entry into a new market, relying heavily on it as a primary criterion for targeting may overlook critical factors such as market size, growth potential, competitive landscape, and regulatory environment. A comprehensive market analysis should be conducted to make informed decisions.

Question 19

Germany's DHL tried to enter the U.S.package-delivery market in 2003; to achieve scale, DHL acquired Airborne Express.However they could not compete with entrenched incumbents FedEx and UPS.This is an example of incorrect position and product mix.

Accepted Answer

DHL's attempt to enter the U.S. package-delivery market by acquiring Airborne Express was an example of incorrect position and product mix as they could not compete with established players like FedEx and UPS.

Question 20

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

Accepted Answer

The statement is false. While being a first-mover can provide advantages such as establishing brand recognition and customer loyalty, it does not guarantee market leadership. Success in the market depends on various factors such as product quality, pricing, marketing strategies, and customer satisfaction. A company that enters the market later with innovative and superior offerings may overtake the first-mover and become the market leader.

Quiz 7: Segmentation, Targeting, and Positioning