Chapter 11: International Segmentation and Positioning

Question 1

What is segmentation?

Answer 1

Identify meaningful bases for creating consumer groups.

Question 2

What is targeting?

Answer 2

Decide which and how many segments can be served give the segment’s potential, competition within the segment and the company strengths.

Question 3

What is positioning?

Answer 3

Define decide which position/image the firm needs to create in order to attract the particular segment.

Question 4

What are the components of a market segment?

Answer 4

• It must be identifiable
• It must be economically reachable
• It is more homogeneous in its characteristics than the market as a whole
• It is large enough to be profitable

Question 5

What are the advantages of segmentation?

Answer 5

• Firms can offer products which better meet the needs of the identified group
• Increase brand equity and loyalty
• Decrease marketing expenditure by creating segment specific marketing plans

Question 6

What’s the definition for global market segmentation?

Answer 6

Identifying specific segments, with homogenous attributes who are likely to respond to a company’s product/brand in a similar manner.

Question 7

In international marketing:

Answer 7

• Firms are faced with multiple contexts and diverse consumer bases
• Groups which display similar behaviour or characteristics may be prevalent across multiple countries

Question 8

What are the criteria in identifying effective segments?

Answer 8

• Measurability
• Accessibility
• Substantiality
• Actionability

Question 9

what are some issues related to the implementation of market segmentation?

Answer 9

• Difficulties in measuring proceeds
• Difficulties in identifying segments
• Contraction in sales volume stemming from specialised focus on a segment

Question 10

Segments structure and content is influenced by:

Answer 10

•Changes in customer behaviour and needs

Question 11

What are the basis for international segmentation?

Answer 11

1. Geographic characteristics
2. Demographic characteristics
3. Psychographic characteristics
4. Behavioral characteristics

Question 12

As what can target markets be identified as?

Answer 12

• All consumers within the borders of a country
• Different segments in each country market
• Global market segments

Question 13

International market targeting?

Answer 13

1. Undifferentiated-mass marketing
2. Differentiated , segmented marketing
3. Global segment marketing

Question 14

What must a firm’s positioning strategy be like in order to be effective?

Answer 14

1. Meaningful to the consumer
2. Must enforce position over time
3. Communicate the position clearly

A mismatch can be disastrous

Question 15

To make positioning decisions, firms must:

Answer 15

• Identify the existing offerings to different segments within the market
• Distinguish their own competitive advantages which can enable them to create a position in the market

Question 16

Product positioning:

Answer 16

Tailoring the marketing elements to meet the needs of the consumer segment that the company has decided to target

Question 17

In international positioning decisions, firms need to examine:

Answer 17

• The same product attributes are valued across cultures
• The product or the brand is perceived in the same manner
• The competitive structure differs

Question 18

In international positioning, marketers need to decide:

Answer 18

•Whether they will use a uniform positioning strategy or to what extent they will modify the positioning strategy for different markets

Question 19

What are 3 categories of positioning strategies?

Answer 19

• Local consumer-culture positioning
• Foreign consumer-culture positioning
• Global consumer-culture positioning