Lecture 4 Flashcards
What is global market segmentation?
Dividing world markets into subsets of customers with similar needs.
What are the main bases for segmentation?
Geographic, demographic, psychographic, behavioral, and benefit segmentation.
What does VALS stand for in psychographic segmentation?
Values and Lifestyles.
What are the criteria for effective market segmentation?
Measurable, sustainable, stable over time, accessible, and actionable.
What are the three global targeting strategies?
Standardized (undifferentiated), concentrated, and differentiated global marketing.
What are key criteria for targeting?
Size and growth potential, competition, compatibility, and feasibility.
What is global brand positioning?
The location of a brand in the mind of the consumer, influenced by the marketing mix.
What are positioning strategies?
Attitudes/benefits, price/quality, use/application, product user, competition, product class.
What is high-tech vs high-touch positioning?
High-tech: features-based products (e.g., computers); High-touch: emotional, image-based (e.g., cosmetics).
List the modes of international market entry.
Exporting, licensing, franchising, joint ventures, wholly owned subsidiaries.
What are the advantages of exporting?
Lower risk, understand market before investing heavily, reduced costs of overseas operations.
What are the disadvantages of licensing?
Limited participation, risk of creating competitors, needs planning and info gathering.
What is a joint venture?
Two or more parties share ownership or control over a business venture.
What are key advantages of franchising?
Use of brand, logo, and operations to set up new businesses with local insight.
What are some additional expansion methods?
Export management companies, distributors, strategic alliances, acquisitions & mergers.
What is countertrade?
Modern barter system used when currency restrictions exist or to bypass quotas.
List the four types of market expansion strategies.
Narrow focus, country focus, country diversification, global diversification.
What are the stages in the developmental model of international marketing?
Domestic, international, multinational, global, transnational.
