Deck 7: Segmentation,targeting,and Positioning

Question 1

The Tourism Authority of Thailand has developed a series of promotional campaigns and practices aiming at repositioning Thailand and changing public perceptions,which include all of the following except:

A)"Amazing Thailand" and "Unseen Thailand" are among the campaign themes.
B)prayer rooms are available for Muslims at shopping malls,resorts,and beaches.
C)many restaurants have halal-certified kitchens.
D)"Go Thai.Be Free" is the theme of a government-sponsored campaign targeting gay and lesbian travelers.
E)increase country's transportation infrastructure and redeveloping crowded city areas in order to promote the sex trade.

Answer 1

E

Question 2

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 the:

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

Answer 2

A

Question 3

Ericsson,IKEA,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 fairly small population.
D)Sweden is landlocked geographically.
E)Sweden has relaxed export policies.

Answer 3

C

Question 4

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 5

According to Sony's U.S.segmentation,55 years old or older consumers are referred to as:

A)Affluent
B)SoHo
C)DINKS
D)Zoomers
E)CE Alphas

Question 6

The top 10 countries based on per capita income for the year 2016 does not include:

A)Switzerland.
B)Qatar.
C)China
D)Norway.
E)Australia.

Question 7

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)identifying customers based on similar needs and desires.

Question 8

In 2016,the 10 most populous countries in the world accounted for ________ percent of the total world income.

A)40
B)50
C)60
D)70
E)none of the above

Question 9

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 10

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 11

For products whose price is low enough,population is a more important variable than income in determining market potential.

Question 12

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 can be identified with which of the following assumptions?

A)Since per capita annual income in India is about $1,670,all Indians are low income.
B)Consumers in Europe and Latin America are interested in World Cup soccer whereas Americans are not.
C)There is a presence of a higher-income,middle-class segment in India.
D)The potential customer base for McDonald's in India is greater than in any developed country.
E)There is no running water and electricity in India.

Question 13

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 14

The trend showing popularity of ethnic or regional foods such as sushi,falafel,or pizza worldwide is referred to as the ________,which provides an opportunity for marketers to pursue one or more segments on a global scale.

A)segmentation of markets
B)popularity of segmentation
C)promotion of products and services
D)identification of consumers
E)pluralization of consumption

Question 15

Demographic segmentation is based on measurable characteristics of populations that includes all of the following examples except:

A)Southeast Asia's population numbers 600 million,70 percent of whom are younger than the age of 40.
B)India has the youngest demographic profile among the world's large nations,and two-thirds of its population is younger than age 35.
C)Disney hopes to capitalize on the huge number of young people and their incomes as a means to extend its brand.
D)the United States is home to 28.4 million foreign-born residents with combined income of $233 billion.
E)in the EU,the number of consumers aged 16 and younger is rapidly approaching the number of consumers aged 60 and older.

Question 16

India's population is hard to segment since every region defines like 25 different countries.Based on this assessment,which one of the following statements is not accurate?

A)India can be segmented into a "bike segment" of 25 million households.
B)Vast majority of India's population comprises a "bullock cart" segment.
C)In Indian cities,everyone who can afford a television has one.
D)In order to maintain high growth,marketers have to penetrate into rural regions.
E)For a global company,it is easy to "act local" in India.

Question 17

Facebook's consumer insights team divided the 1.6 million online shoppers into several categories that include all of the following except:

A)Shopping Mavens.
B)Informed Mobilizers.
C)Golden Elite.
D)Online Reluctants.
E)Opportunistic Shoppers.

Question 18

One global segment based on demographics is referred to as "global teens." It includes:

A)people between the ages of 12 and 19.
B)affluent,well-traveled persons.
C)young global travelers.
D)technology professionals.
E)teens having power.

Question 19

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 20

McDonald's operates in over 118 countries;however,80 percent of its restaurants are located in nine countries,which generate nearly ________ percent of the company's total revenues.

A)45
B)55
C)65
D)75
E)85

Question 21

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

Question 22

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 23

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 24

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

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

Question 25

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)Activia.
C)NutriChoice.
D)Nutraceuticals.
E)Medical Foods.

Question 26

After segmenting potential markets in terms of a single demographic variable,"income," a company can reach the most affluent market by targeting fewer than ________ nations.

A)10
B)15
C)20
D)25
E)30

Question 27

According to Euromonitor International,the global market for foods that offer health benefits is currently worth about ________ billion in annual sales.

A)$300
B)$400
C)$500
D)$600
E)$700

Question 28

There is considerable income disparity between western and eastern provinces in China.

Question 29

Campbell 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 Soup is referred to as ________ segmentation.

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

Question 30

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 31

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.

Question 32

India has the youngest demographic profile among the world's large nations.

Question 33

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

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

Question 34

After convening worldwide employee conferences to study women's shaving preferences,Schick-Wilkinson Sword introduced a shaving system for women that features a replaceable blade cartridge.

Question 35

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 36

By 2030,30 percent of the U.S.population will be 65 years or older versus 13 percent today.

Question 37

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

Question 38

In the music business,5 percent of recording artists account for ________ percent of all artist-related Facebook engagement.

A)55
B)65
C)75
D)85
E)95

Question 39

The market for computers and related products can be divided into home users,corporate ("enterprise")users,and educational users.

Question 40

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 41

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 42

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 43

Demographic changes can create opportunities for marketing innovation.Justify this statement using examples.

Question 44

Russia is included in the top 10 nations ranked by the GDP (2016).

Question 45

An example of a trap that marketers can set for themselves while targeting a foreign market is to:

A)overstate the size and short-term attractiveness of individual country markets.
B)realize that short-term profit and revenue growth objectives may be hard to achieve.
C)restrain from being persistent to enter a country market.
D)ignore shareholders' or competitors' pressure not to "miss out" on a strategic opportunity.
E)enter a market based on time-consuming rigorous market analysis.

Question 46

Companies like Coca-Cola had the first-mover advantage since they were the first company to enter a global market.The first-mover advantages include all of the following except:

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 47

The basis for global marketing expert David Arnold's framework for screening intercountry comparisons includes:

A)demographic data.
B)"top-down" segmentation analysis.
C)"bottom-up" segmentation analysis.
D)income level.
E)population data.

Question 48

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

Question 49

According to the World Bank reports,Tanzania has the most mobile money accounts per 1,000 adults for any African country.

Question 50

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

Question 51

Eighty percent of McDonald's restaurants are located globally in more than 20 countries.

Question 52

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 53

All three Gulf carriers have experienced barriers to growth.For example,Qatar's bookings dropped dramatically after four of its Middle Eastern neighbors initiated an air and sea blockade in June 2017.

Question 54

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

Question 55

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 56

The feasibility of targeting a particular market segment can be negatively impacted by various factors.Which of the following is not one of those factors?

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

Question 57

Managers must decide how well a company's product fits the country market by asking all of 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 58

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 59

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.

Question 60

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 Malaysia.
E)Mercedes-Benz in the United States.

Question 61

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

Question 62

Mobile payment technology exploded in popularity,as consumers embraced Alibaba's Alipay and Tencent's.

Question 63

France has a fragmented shop system that consists of small,specialized stores such as the boulangerie and charcuterie;which became a part of France's national heritage.

Question 64

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

Question 65

Discuss the basics of a framework for selecting target markets highlighting the salient features of David Arnold's framework.

Question 66

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 particular country.

Question 67

IKEA home furnishings are decorated in the national colors of blue and yellow.This is an example of local consumer culture positioning.

Question 68

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.

Question 69

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

Question 70

Alipay and WeChat pay are the preferred mobile payments platforms in Middle Eastern countries.

Question 71

Due to globalization,"it is a small world after all." Also,vast scale migration of populations due to various reasons,including opportunities,has created large segments of ethnic population.Considering these facts,highlight the ethnic segmentation and its importance.

Question 72

What are some of the pitfalls in assessing market potential and choosing target markets or segments?

Question 73

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?

Question 74

Approximately 70 percent of India's population is younger than the age of 35.This segment is increasingly affluent,and today's young,brand-conscious consumers are buying $100 Tommy Hilfiger jeans and $690 Louis Vuitton handbags.

Question 75

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

Question 76

There is a tendency to overstate the size and short-term attractiveness of individual country markets,especially when estimates are based primarily on demographic data such as income and population.

Question 77

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 78

Both Nestlé and Cadbury determined that a liquid chocolate confection would be one way to address the issue of India's hot weather.This is an example of:

A)differentiated target marketing.
B)standardized global marketing.
C)competitive global marketing.
D)target benefit marketing.
E)product-market decision

Question 79

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 80

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.