Market Segmentation: Understanding Global Consumers
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Global Market Segmentation
Understanding Different Consumer Segments
A global segment referred to as the "global elite" includes well-traveled persons.
A global segment referred to as "global teens" includes people between the ages of 12 and 19.
A global segment referred to as "global teens" includes people with shared interests in fashion.
A market segment or country market is characterized by weak competition. FALSE
Coskun Samli developed a useful approach, assuming that there is a presence of a higher-income middle-class segment in India.
Positioning Strategies in Global Marketing
Ads by BMW advertise it as the "ultimate driving machine," which is described as positioning based on attribute/benefit.
America's Hispanic population shares common characteristics. FALSE About two-thirds of the Hispanic population in the US are of Mexican heritage. TRUE
Based on 2011 projections, the top ten nations in terms of population did not include Russia.
Basic criteria that marketers should keep in mind include securing first-mover advantage.
Benetton uses the slogan "United Colors of Benetton." TRUE BMW's slogan is "the ultimate driving machine." TRUE
Campbell's Soup is making significant inroads into Japan's soup market by positioning its product based on benefit.
Psychographic Segmentation and Consumer Behavior
Categories such as "successful idealists" are part of psychographic segmentation. FALSE
Companies like Coca-Cola had the first-mover advantage and made substantial investments in marketing.
Consumers shopping for high-touch products, such as fine perfume, tend to make decisions based on emotion.
Demographic segmentation is based on measurable characteristics. Consumers buying a Porsche would like to be noticed is an example of psychographic segmentation.
Despite having comparable per capita incomes, Japan and Germany are not similar markets. TRUE Differentiated global marketing involves targeting two or more distinct market segments. TRUE Dove, a division of Unilever, uses standardized global marketing. FALSE
Diageo PLC, V&S Vin & Spirit AB, Seagram, and other marketers know that Russians consume a great deal of vodka. This is an example of behavioral segmentation.
Ericsson, IKEA, Saab, and other companies based in Sweden have a smaller population to target domestically. TRUE
For behavioral segmentation, usage rates and user status are important criteria. TRUE For some consumer products, psychographic studies can help marketers identify consumer segments. TRUE
For years, ads for Volvo automobiles stressed safety and durability, which is an example of attribute/benefit positioning.
"Frugal Engineering" and "Reverse Innovation" are terms that refer to developing products with the needs of emerging markets in mind. TRUE
Global automakers are targeting the U.S. market with SUVs. FALSE Kia is targeting the Indian market with SUVs. TRUE
Global market segmentation is based on the premise that companies should attempt to identify consumers in different countries who share similar needs and desires. TRUE Global marketers must determine whether a standardized or adapted marketing mix will best serve global consumers' wants and needs. TRUE
Global marketing authority Theodore Levitt advanced the thesis of the pluralization of consumption.
Ideally, GDP and other measures of national income should be calculated on the basis of purchasing power parities. TRUE IKEA, the home furnishings retailer, targets the global middle class. TRUE
In 2011, the ten most populous countries accounted for roughly fifty percent of the world's population.
In a study entitled "The Euroconsumer: Marketing Myth or Cultural Certainty?", the segment that is concentrated in high-crime, inner-city neighborhoods was classified as Disaffected Survivors.
In response to increasing worldwide concerns about obesity and diabetes, Danone launched a reduced-sugar and reduced-fat yogurt called Activia.
In the cosmetics industry, Unilever markets its brands differently in different countries. TRUE India is the world's fastest-growing mobile phone market. TRUE Lexus developed a luxury car for the US market. TRUE
In the study entitled "The Euroconsumer: Marketing Myth or Cultural Certainty?", the group that represents mainstream European consumers was labeled as Affluent Idealists.
Considerations for Global Marketers
Managers must decide how well a company's product fits the country market by asking: Will it be possible to neglect home-country regulations?
Marketing that involves creating the same marketing mix for a broad mass market of potential buyers is referred to as standardized global marketing.
McDonald's operates in over 118 countries, but it does not sell beef hamburgers in India.
Nutraceuticals are health food products which are manufactured by companies like Nestlé.
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 small segment can be served profitably if the segment exists in several countries. TRUE One of the first companies to launch a global product was Coca-Cola. TRUE Pareto's Law suggests that 80 percent of a company's revenues or profits are accounted for by 20 percent of its products or customers. TRUE
Porsche AG uses the label "Top Guns" to describe one segment of its customers, which is an example of psychographic segmentation.
Positioning refers to the act of differentiating a brand in the customer's mind.
Procter & Gamble has identified a group of consumers in Europe who are willing to pay a premium price for pet food that will improve the health of their pets. This is an example of benefit segmentation.
Psychographic segmentation involves grouping people in terms of their attitudes, values, and lifestyle.