Deck 7: Segmentation, Targeting, and Positioning

Question 1

About two-thirds of world GNI is generated in the Triad countries,whereas only about 12% of the world's population is located in those countries.

Answer 1

True

Question 2

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.

Answer 2

False

Question 3

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

Answer 3

True

Question 4

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

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.

Question 6

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

Question 7

"Frugal Engineering" and "Reverse Innovation" are some of the terms that GE,Proctor & Gamble,Siemens,and Unilever are using to describe efforts to penetrate more deeply into emerging markets.

Question 8

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

Question 9

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

Question 10

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 11

The vast majority of India's population comprises a "bullock cart" segment whose households lack most comforts but typically owns a television.

Question 12

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 13

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 14

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

Question 15

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 16

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 population.

Question 17

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 18

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 19

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

Question 20

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

Question 21

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

Question 22

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 buying Porsche 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 EU, the number of consumers aged 16 and under is rapidly approaching consumers aged 60.

Question 23

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.

Question 24

Based on 2011 projections,the top ten nations ranked by per capita income does not include:

A) the United States.
B) Japan.
C) Russia.
D) Spain.
E) Italy.

Question 25

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 26

In the cosmetics industry,Unilever pursues differentiated global marketing strategies by targeting both ends of the perfume market.

Question 27

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 is:

A) since per capita income in India is about $1,420, assuming that all Indians have low incomes.
B) assuming that consumers in Europe and Latin America are interested in World Cup soccer whereas Americans are not.
C) assuming that there is a presence of a higher-income middle-class segment in India.
D) assuming that the potential Indian customer base for a McDonald's is larger than the size of entire developed countries.
E) assuming that there is no running water and electricity in India.

Question 28

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

Question 29

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

Question 30

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) an effort to identify and categorize customers based on common characteristics.

Question 31

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 32

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:

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

Question 33

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 34

Virgin chief executive Richard Branson learned that starting a soft-drinks war with Coca-Cola was crazy,although it was also one of the things that raised the profile of the Virgin name in America.

Question 35

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 smaller population.
D) Sweden is land locked geographically.
E) Sweden has relaxed export policies.

Question 36

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

Question 37

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 38

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 39

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) graying population.
D) technology professionals.
E) persons having power.

Question 40

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).

Question 41

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 42

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

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

Question 43

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 44

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 45

In 2011,the ten most populous countries in the world accounted for just over ________ percent of the world income.

A) ten
B) twenty
C) thirty
D) forty
E) fifty

Question 46

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

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

Question 47

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 48

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 49

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 50

In the study entitled "The Euroconsumer: Marketing Myth or Cultural Certainty?" the 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.

Question 51

In a study entitled "The Euroconsumer: Marketing Myth or Cultural Certainty?" the 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 52

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 53

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 54

Several years ago,the DMBB agency created a single-country psychographic profile that includes segment labels such as "Cossacks" and "Kuptsy." What country does the survey cover?

A) India
B) Japan
C) Russia
D) China
E) Vietnam

Question 55

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 56

Sony's U.S.Consumer segments included all of the following except:

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

Question 57

Three Mexican retailers Famso,Grupo Gigant SA,and Grupo Commercial 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 58

The DMBB 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 59

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 60

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 61

The world's best-known cosmetics companies are setting their sights on a lucrative new market segment: the emerging middle classes in countries such as Brazil,Russia,India,and China.However,these companies have to understand:

A) that women's preferences in those countries are almost similar.
B) that Chinese consumers are not willing to invest in beauty products.
C) what beauty means to Chinese women.
D) that working Indian women prefer only local brands.
E) cosmetics are preferred mostly by the top end of the market in China.

Question 62

For years,ads for Volvo automobiles stressed safety features and protection in the event of a crash.Thus,Volvo automobiles developed a reputation based on which positioning strategy?

A) use / user
B) attribute/benefit
C) competition
D) high touch
E) quality/price

Question 63

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 64

The Swatch Group markets watches in all price ranges,from the Swatch brand at the low end to luxury brands such as Longines,Blancpain,and Breguet.Which target market strategy does this illustrate?

A) standardized global marketing
B) concentrated global marketing
C) differentiated global marketing
D) psychographic global marketing
E) none of the above

Question 65

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 66

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 67

Managers must decide how well a company's product fits the country market by asking 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 68

Which of the following is generally true about the marketing of high-touch products such as fine china and crystal?

A) It relies equally on specialized information and image.
B) It relies less on image and more on specialized information.
C) It relies less on specialized information and more on image.
D) Neither image nor specialized information is relevant to the marketing of high-touch products.
E) It relies partially on specialized information and partially on image.

Question 69

Ads by BMW advertise it as the "ultimate driving machine" which is described as positioning based on:

A) high touch.
B) use / user.
C) attribute/benefit.
D) competition.
E) quality/price.

Question 70

The feasibility of targeting a particular market segment can be negatively impacted by various factors which does not include:

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

Question 71

The strategy that identifies a brand as a symbol of a particular global segment is known as:

A) foreign consumer culture positioning.
B) global consumer culture positioning.
C) local consumer culture positioning.
D) global market positioning.
E) demographic market positioning.

Question 72

When a marketer understands that a product satisfies a buyer's rational criteria while also evoking an emotional response,the marketer should:

A) only target consumers in high-income countries.
B) utilize a multi-tiered targeting strategy rather than a concentrated strategy.
C) commission psychographic segmentation studies to augment demographic data.
D) create advertising that reflects a bipolar, high-tech and high-touch approach.
E) follow normal targeting strategy.

Question 73

Some of Body Shop's recent advertising has emphasized the difference between the company's principles and those of "mainstream" cosmetics companies on such issues as animal testing.As described here,Body Shop's ads illustrate positioning by:

A) competition.
B) niche.
C) quality/price.
D) attribute/benefit.
E) culture.

Question 74

Positioning refers to the act of:

A) determining on what points on the globe to target.
B) ensuring a choice retail shelf location.
C) differentiating a brand in customer's mind.
D) formulating a private label strategy.
E) formulating a companion product.

Question 75

Marketing that involves creating the same marketing mix for a broad mass market of potential buyers is referred to as:

A) differentiated target marketing.
B) standardized global marketing.
C) concentrated global marketing.
D) competitive global marketing.
E) target benefit marketing.

Question 76

Companies like Coca-Cola had the first-mover advantage since they were the first company to enter a global market.However,there are also first-mover disadvantages which include:

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 77

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 78

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 79

Consumers shopping for high-touch products,such as fine perfume,are generally energized by ________ motives.

A) emotional
B) rational
C) both emotional and rational
D) neither emotional nor rational
E) high-tech

Question 80

Which of the following is true of advertising for the Heineken and Foster's brands in the United States?

A) Both Heineken and Foster's utilize the GCCP strategy.
B) Both Heineken and Foster's utilize the FCCP strategy.
C) Heineken utilizes the GCCP strategy; Foster's utilizes the FCCP strategy.
D) Heineken utilizes the FCCP strategy; Foster's utilizes the GCCP strategy.
E) Heineken utilizes the LCCP strategy; Foster's utilizes the GCCP strategy.