Question 1

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

Accepted Answer

A framework for selecting target markets should take into account the market size of the targeted market.The market size should then be multiplied by the competitive advantage in that country.Multiplying the market size and competitive advantage index yields a market potential.The next step in the analysis requires an assessment of the various market access considerations.Finally, multiplying the market potential by the terms of access index gives the final market potential.This framework takes into account the competitive advantage, market potential and the terms of access.This framework should prove useful as a preliminary screening tool for intercountry comparisons.However, it does not go far enough in terms of assessing actual market potential.Global marketing expert David Arnold has developed a framework that goes beyond demographic data and considers other marketing-oriented assessments of market size and growth potential.Thus, instead of a "top-down" segmentation analysis beginning with, for example, income or population data from a particular country, Arnold's framework is based on a "bottom-up" analysis that begins at the product-market level.The product-market refers to a market defined by a product category.For example, in the automotive industry that would refer to luxury car market.Arnold's framework incorporates two core concepts:marketing model drivers and enabling conditions.Marketing model drivers are key elements or factors required for a business to take root and grow in a particular country market environment.The drivers may differ depending on whether a company serves consumer or industrial markets.Enabling conditions are structural market characteristics whose presence or absence can determine where the marketing model can succeed.For example, in India, refrigeration is not widely available in shops and market food stalls.This creates challenges for storing dairy products and confections.So the enabling conditions are very important.After marketing-model drivers and enabling conditions have been identified, the management should weigh the estimated costs associated with entering and serving the market with potential short- and long-term revenue streams.One way to determine the marketing model drivers and enabling conditions is to create a product-market profile.

Question 2

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.

Accepted Answer

A) True 
 B)False  False

Question 3

The feasibility of targeting a particular market segment can be negatively impacted by various factors which does not include:

Accepted Answer

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

Question 4

When a marketer understands that a product satisfies a buyer's rational criteria while also evoking an emotional response, the marketer should:

Accepted Answer

A) only target consumers in high-income countries. 
B) utilize a multitiered targeting strategy rather than a concentrated strategy. 
C) commission psychographic segmentation studies to augment demographic data. 
D) create advertising that reflects a bipolar, high-tech and high-touch approach. 
E) follow normal targeting strategy. 
A) only target consumers in high-income countries. 
B) utilize a multitiered targeting strategy rather than a concentrated strategy. 
C) commission psychographic segmentation studies to augment demographic data. 
D) create advertising that reflects a bipolar, high-tech and high-touch approach. 
E) follow normal targeting strategy.

Question 5

A global segment is referred to as "global elite" which includes:

Accepted Answer

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

Question 6

Three Mexican retailers Famso, Grupo Gigant SA, and Grupo Commercial Chedraui SA have opened stores in the United States.This is an indication of:

Accepted Answer

A) U.S.retailers were lagging behind in collecting demographic information. 
B) the Mexican retailers provide better products than American stores. 
C) the Hispanic American segments represent a great opportunity for marketers. 
D) American businesses cannot compete with Mexican retailers. 
E) the Mexican retailers would like to compete with businesses like Best Buy and Circuit City. 
A) U.S.retailers were lagging behind in collecting demographic information. 
B) the Mexican retailers provide better products than American stores. 
C) the Hispanic American segments represent a great opportunity for marketers. 
D) American businesses cannot compete with Mexican retailers. 
E) the Mexican retailers would like to compete with businesses like Best Buy and Circuit City.

Question 7

McDonald's operates in over 118 countries; however, 80% of its restaurants are located in nine countries which does not include the following country market:

Accepted Answer

A) Australia. 
B) Brazil. 
C) Germany. 
D) India. 
E) Japan. 
A) Australia. 
B) Brazil. 
C) Germany. 
D) India. 
E) Japan.

Question 8

Managers must decide how well a company's product fits the country market by asking the following questions except:

Accepted Answer

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? 
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 9

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:

Accepted Answer

A) demographics. 
B) polycentrics. 
C) behavioral characteristics. 
D) benefits sought. 
E) psychographics. 
A) demographics. 
B) polycentrics. 
C) behavioral characteristics. 
D) benefits sought. 
E) psychographics.

Question 10

Diageo PLC, V&S Vin & Spirit AB, and Seagram and other marketers know that Russians consume a great deal of vodka.This type of market segmentation can be classified as:

Accepted Answer

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

Question 11

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

Accepted Answer

A) Sweden has high total annual income. 
B) Sweden has low total annual income. 
C) Sweden has a smaller population. 
D) Sweden is land locked geographically. 
E) Sweden has relaxed export policies. 
A) Sweden has high total annual income. 
B) Sweden has low total annual income. 
C) Sweden has a smaller population. 
D) Sweden is land locked geographically. 
E) Sweden has relaxed export policies.

Question 12

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

Accepted Answer

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

Question 13

The concentration of income in the high-income and large-population countries means that a company can be "global" by targeting buyers in 10 or fewer countries.

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

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

Question 15

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.

Accepted Answer

A) True 
 B)False

Question 16

Using averages alone, it is possible to underestimate a market's potential, for example, fast-growing, higher-income segments are present both in India and China.

Accepted Answer

A) True 
 B)False

Question 17

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?

Accepted Answer

A) standardized global marketing 
B) concentrated global marketing 
C) differentiated global marketing 
D) psychographic global marketing 
E) none of the above 
A) standardized global marketing 
B) concentrated global marketing 
C) differentiated global marketing 
D) psychographic global marketing 
E) none of the above

Question 18

Lack of scale and a shortage of capital are just two of the problems associated with reaching the world's poor.Prices can also be a problem.There is an ample evidence that world's best known global marketers recognize this.For example, Adidas has developed a sneaker priced at one euro that it hopes to sell in Bangladesh.

Accepted Answer

A) True 
 B)False

Question 19

What are the major differences between global, foreign, and local consumer culture positioning? Why are these differences significant? Give examples of how companies are trying to lure customers using these positioning strategies.

Accepted Answer

Global consumer culture positioning (GCC

Question 20

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

Accepted Answer

A) True 
 B)False

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

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.

The feasibility of targeting a particular market segment can be negatively impacted by various factors which does not include:

When a marketer understands that a product satisfies a buyer's rational criteria while also evoking an emotional response, the marketer should:

A global segment is referred to as "global elite" which includes:

Three Mexican retailers Famso, Grupo Gigant SA, and Grupo Commercial Chedraui SA have opened stores in the United States.This is an indication of:

McDonald's operates in over 118 countries; however, 80% of its restaurants are located in nine countries which does not include the following country market:

Managers must decide how well a company's product fits the country market by asking the following questions except:

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:

Diageo PLC, V&S Vin & Spirit AB, and Seagram and other marketers know that Russians consume a great deal of vodka.This type of market segmentation can be classified as:

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

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

The concentration of income in the high-income and large-population countries means that a company can be "global" by targeting buyers in 10 or fewer countries.

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

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.

Using averages alone, it is possible to underestimate a market's potential, for example, fast-growing, higher-income segments are present both in India and China.

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?

What are the major differences between global, foreign, and local consumer culture positioning? Why are these differences significant? Give examples of how companies are trying to lure customers using these positioning strategies.

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

Introduction to Global Marketing

The Global Economic Environment

Regional Market Characteristics and Preferential Trade Agreements

Social and Cultural Environments

The Political, Legal, and Regulatory Environments

Global Information Systems and Market Research

Importing, Exporting, and Sourcing

Global Market Entry Strategies: Licensing, Investment, and Strategic Alliances

Brand and Product Decisions in Global Marketing

Pricing Decisions

Global Marketing Channels and Physical Distribution

Global Marketing Communications Decisions I: Advertising and Public Relations

Global Marketing Communications Decisions II: Sales Promotion, Personal Selling, and Special Forms of Marketing Communication

Global Marketing and the Digital Revolution

Strategic Elements of Competitive Advantage

Leadership, Organization, and Corporate Social Responsibility

Filters

Exam 7: Segmentation, Targeting, and Positioning

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

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.

The feasibility of targeting a particular market segment can be negatively impacted by various factors which does not include:

When a marketer understands that a product satisfies a buyer's rational criteria while also evoking an emotional response, the marketer should:

A global segment is referred to as "global elite" which includes:

Three Mexican retailers Famso, Grupo Gigant SA, and Grupo Commercial Chedraui SA have opened stores in the United States.This is an indication of:

McDonald's operates in over 118 countries; however, 80% of its restaurants are located in nine countries which does not include the following country market:

Managers must decide how well a company's product fits the country market by asking the following questions except:

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:

Diageo PLC, V&S Vin & Spirit AB, and Seagram and other marketers know that Russians consume a great deal of vodka.This type of market segmentation can be classified as:

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

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

The concentration of income in the high-income and large-population countries means that a company can be "global" by targeting buyers in 10 or fewer countries.

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

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.

Using averages alone, it is possible to underestimate a market's potential, for example, fast-growing, higher-income segments are present both in India and China.

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?

What are the major differences between global, foreign, and local consumer culture positioning? Why are these differences significant? Give examples of how companies are trying to lure customers using these positioning strategies.

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

Introduction to Global Marketing

The Global Economic Environment

Regional Market Characteristics and Preferential Trade Agreements

Social and Cultural Environments

The Political, Legal, and Regulatory Environments

Global Information Systems and Market Research

Importing, Exporting, and Sourcing

Global Market Entry Strategies: Licensing, Investment, and Strategic Alliances

Brand and Product Decisions in Global Marketing

Pricing Decisions

Global Marketing Channels and Physical Distribution

Global Marketing Communications Decisions I: Advertising and Public Relations

Global Marketing Communications Decisions II: Sales Promotion, Personal Selling, and Special Forms of Marketing Communication

Global Marketing and the Digital Revolution

Strategic Elements of Competitive Advantage

Leadership, Organization, and Corporate Social Responsibility

Filters