Exam 7: Segmentation, Targeting, and Positioning

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.

"Frugal Engineering" and "Reverse Innovation" are some of the terms that GE, Proctor & Gamble, Siemens, and Unilever are using to describe efforts to penetrate more deeply into emerging markets.

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 is:

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.

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

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.

After evaluating the 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.

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:

Global market segmentation is based on the premise that companies should attempt to identify consumers in different countries who share similar needs and desires.

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.

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

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.

India is the world's fastest growing cell phone market with the industry expanding at a rate of 50% annually with 5 million new subscribers added every month.This is an indication of continued private-sector growth.

Marketers must understand that many Hispanic Americans live in two worlds; although they identify strongly with the United States, there is also a sense of pride associated with brands that connect to their heritage.

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

Assume that the market segment is judged to be large enough, and the strong competitors are either absent or deemed to be vulnerable, then is it safe to enter the country? Justify your answer by giving reasons.

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:

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.

Some of Body Shop's recent advertising has emphasized the difference between the company's principles and those of "mainstream" cosmetics companies on such issues as animal testing.As described here, Body Shop's ads illustrate positioning by ________.

About 1.3 million cars are sold each year in India; in absolute terms, this is a relatively small number.