Quiz 15: International Accounting and Financial Management
Case Summary: Lady Gaga, the famous A singer, wanted to establish her stardom in I, but the music industry in I is largely driven by Bollywood (an I film industry). She had remix some of her songs that would give I appeal and allows some changes in them like, rhythm, background etc. I is the country where more than 700 million people live and it is the biggest market for music lovers. However, Lady Gaga did not re-record her singing and she allowed changing some of her songs by changing rhythm tracks. The products of Lady Gaga are changed somehow according to the culture of India and the preference of viewers. Also, the language is one more concern as people of India understand and like to watch Hindi songs.
This is a subjective, opinion answer.
Average income = For example, if the total income of the population is $100, 0000 and the total population is 10000. Therefore, Average income of the population = This $100 states that each and every individual has the income of $100.But this may not hold true because there may be a chance that an individual is unemployed and is earning nothing or there may be a chance that the population includes billionaire. Basically, there are three types of goods, they are: • Inferior goods: • Necessity goods • Luxurious goods It is the duty of a marketer to identify the category in which its product falls. While segmenting the market following factors are considered: • Size of the segment • Income of the segment • Buying habit or demand of the segment. A marketer groups or forms its market segment by having a detailed study of these entire factors in respect of its product. The decision or parameters of segmentation differ from product top product. Below are some of the examples that a marketer can use to segment its market: • For inferior goods: These goods are low priced and, in fact, every individual has the capability to buy these goods. Hence, marketers can use an average income as well as average number of potential customers to target its sales. • For necessity goods: These goods are those goods that are necessary for living. Almost all the population buys necessity goods. For example milk, bread, salt, soap and so on. Therefore, any changes in the price of these goods don't affect the demand for a product. Each individual buy according to its income.Therefore, a marketer can also use average income method of a population to target its market. • Luxurious goods: These goods refer to antique or high price goods which are normally purchased by an elite class. These products are perceived as a matter of prestige and status. Therefore, it this product has a small number of customer. Therefore, if a marketer will use average income method then it would give him/her wrong estimates and can lead to its failure.