14 and 14.1: Market Segmentation Flashcards
Why is understanding business analytics and international market research important?
Business analytics and international market research are crucial for firms to make informed decisions about where and how to compete in the global marketplace, optimize their operations, and tailor their strategies to different market needs.
Why might it make sense for a firm to vary the attributes of a product from country to country?
Varying product attributes can cater to local consumer preferences, comply with local regulations, and respond effectively to the competition in different markets.
How and why might a firm’s distribution strategy vary among countries?
A firm’s distribution strategy might vary due to differences in infrastructure, consumer shopping habits, and the regulatory environment in each country, necessitating adjustments to efficiently reach the target market.
Why and how might advertising and promotional strategies vary among countries?
Advertising and promotional strategies may need to vary to align with cultural norms, language differences, and media consumption habits to effectively engage and resonate with local audiences.
Why and how might a firm’s pricing strategy vary among countries?
Pricing strategies might differ due to factors like local market demand, purchasing power, competition, and cost structures, requiring firms to adjust prices to maximize profitability and market share.
What does configuring the marketing mix globally involve?
Configuring the marketing mix globally involves balancing standardization and customization of product, price, place, and promotion elements to optimize global reach while maintaining local relevance.
What is the debate on the globalization of markets and brands about?
The debate centers on whether the world is moving toward standardized products due to converging consumer preferences or if persistent cultural and economic differences continue to necessitate localized products.
Is the homogenization of consumer preferences a universal trend?
While there is a trend towards homogenization, especially among younger consumers, unique cultural and economic differences still require firms to consider local customization in many markets.
What is market segmentation?
Market segmentation is the process of identifying distinct groups of consumers whose needs, wants, and purchasing behaviors differ from others in important ways, often defined by geographic, demographic, psychographic, and behavioral characteristics.
Why might a firm choose global standardization over local market segmentation?
A firm may choose global standardization to exploit economies of scale and scope, provided that the needs and preferences of consumers are homogeneous enough across markets to warrant a standardized approach.
What is the role of business analytics in global business strategy?
Business analytics involves using data, knowledge, and skills to gain insight and drive future strategy development and implementation.
It helps in making informed decisions about international business strategies and activities.
What are the different types of business analytics?
There are three main types of business analytics:
descriptive, which summarizes past data;
predictive, which analyzes trends to forecast future outcomes;
and prescriptive, which uses models to suggest actions to achieve desired outcomes.
What is international market research?
International market research is the systematic collection, recording, analysis, and interpretation of data to provide knowledge that is useful for decision making in a global company.
What are the basic steps in conducting international market research?
The steps include
defining the research objectives,
determining the data sources,
assessing the costs and benefits of the research,
collecting the data,
analyzing and interpreting the data,
and reporting the research findings.
Why is international market research critical for global companies?
International market research is critical for understanding customer needs, wants, and purchasing behavior across different international markets, and for assessing the effectiveness of marketing strategies and business opportunities.
