Exam 7: Segmentation, Targeting, and Positioning

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:

Ericsson, IKEA, Saab, and other companies based in Sweden have looked beyond their borders for significant growth market because:

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

In the study entitled "The Euroconsumer: Marketing Myth or Cultural Certainty?" researchers identified four lifestyle groups. The group that represents mainstream European consumers was labeled as:

Psychographic segmentation involves grouping people in terms of their:

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

As Emirates and other middle eastern carriers penetrate more deeply into the world's largest aviation market, they are becoming known for very high-quality in-flight service.

Positioning refers to the act of:

Basic criteria that marketers should keep in mind while assessing opportunities in global markets include all of the following except:

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 is population.

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?

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.

India has the youngest demographic profile among the world's large nations with more than half of its population being younger than 25 and the number of young people below the age of 14 is greater than the entire U.S. population.

When identifying global market segments, a fundamental guiding principle should be the need to determine:

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

After evaluating identified segments, decisions have to be made whether to pursue a particular opportunity or not. Assuming the decision is made to proceed, an appropriate targeting strategy must be developed. Explain the basic categories of target marketing strategies and how they can be implemented.

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.

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

What important lessons did Virgin chief executive Richard Branson learn in the mid-1990s when he launched Virgin Cola, directly targeting Coca-Cola's core market?

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: