International Marketing Chapter 7

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26 Questions - Developed by: - Updated on: - Developed on: - 9,863 taken

  • 1
    Global market segmentation is based on the premise that companies should attempt to identify consumers in different countries who share similar needs and desires.
  • 2
    Sushi, Falafel, Tandoori Chicken or Pizza are in demand in many parts of the world. This phenomenon can be due to pluralization of consumption and segment simultaneity.
  • 3
    The fact that significant numbers of pizza-loving consumers are found in many countries indicates that they are eating the exact same thing in all parts of the world.

  • 4
    Global marketers must determine whether a standardized or an adapted marketing mix is required to best serve the wants and needs of the consumers.
  • 5
    The process of global market segmentation begins with the choice of one or more variables to use as a basis for grouping customers.
  • 6
    A fact found by demographic segmentation is that by the year 2030, 20% of the U.S. population or 70 million will be 65 years old or older.

  • 7
    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.
  • 8
    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.
  • 9
    The United States ranks number one among nations in terms of both per capita income and in terms of income adjusted for purchasing power for the year 2009.
  • 10
    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.

  • 11
    A psychographic study showed that Porsche buyers could be divided into several distinct categories, one consisting of "Top Guns" who buy Porsches and expect to be noticed.
  • 12
    Categories such as "successful idealists" and "affluent materialists" can be used to describe psychographic segments.
  • 13
    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.
  • 14
    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.
  • 15
    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.
  • 16
    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.

  • 17
    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.
  • 18
    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.
  • 19
    When making a decision about market entry timing, a company's management team should understand that the first-mover always becomes the market leader.
  • 20
    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.

  • 21
    BMW's slogan "the ultimate driving machine," is an example of an attribute or benefit which has proven successful in their positioning strategy.
  • 22
    Standardized global marketing is analogous to mass marketing in a single country and is also known as differentiated target marketing.
  • 23
    Differentiated global marketing represents a more ambitious approach than concentrated target marketing.
  • 24
    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.
  • 25
    IKEA, the home furnishings retailer based in Sweden, wraps it'self 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.
  • 26
    Benetton uses the slogan "United Colors of Benetton" to position it'self as a brand concerned with the unity of humankind. This type of strategy is referred to as GCCP (global consumer culture positioning).

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