Lecture 5 Flashcards
What is global market segmentation?
Dividing world markets into subsets of customers with similar needs, such as geographic or interest-based groups.
What is geographic segmentation?
Dividing the world into geographic subgroups. Proximity can be advantageous, but cultural differences may exist even in close countries.
Define demographic segmentation.
Segmentation based on measurable characteristics like age, gender, income, and education.
What is psychographic segmentation?
Segmentation based on attitudes, values, and lifestyles, measured by interests and opinions.
List the VALS psychographic segments.
Innovator, Thinker, Believer, Achiever, Striver, Experiencer, Maker, Survivor.
Give an example of Porsche’s psychographic segment ‘Top Guns’.
Driven and ambitious, care about power and control, expect to be noticed.
What is behavioral segmentation?
Focuses on product usage patterns such as heavy, medium, or light usage rates.
What is benefit segmentation?
Focuses on the benefit sought by consumers, directly tied to perceived value (V=B/P).
What are the main criteria for selecting target markets?
Size, growth potential, competition, compatibility, and feasibility.
What is global brand positioning?
The place a product occupies in the consumer’s mind relative to competing products.
List positioning strategies used by global marketers.
Attitudes/benefits, price/quality, use/application, product class, competition.
What are the primary methods of market entry?
Exporting, licensing, franchising, joint venture, wholly owned subsidiary.
What are advantages of licensing?
Low risk, no capital needed, shared marketing efforts, potential stock or equity benefits.
What are disadvantages of franchising?
Limited control, potential brand dilution, franchisee could become a competitor.
Name four market expansion strategies.
Narrow focus, country focus, country diversification, global diversification.
What are the stages of international development?
Domestic, international, multinational, global, transnational.
