Test 2 Chapter 7 Flashcards
Step 1 of market selection
Selection of the relevant segmentation criteria
Step 2 of market selection
Development of appropriate segments
Step 3 of market selection
Screening of segments Choice: Target markets/countries
Step 4 of market selection
Micro segmentation: Develop Segments in Country (ies)
Defining Criteria for Steps 1 and 2- Measurability
Degree to which size and purchasing power of a segment can be measured
Defining Criteria for Steps 1 and 2- Accesibility
Degree to which resulting segments can effectively be reached and served
Defining Criteria for Steps 1 and 2- Sustainability/Profitability
Degree to which segments are large and/or profitable
Defining Criteria for Steps 1 and 2- Action-ability
Degree to which the firm as sufficient resources to formulate effective marketing programs and make things happen
Screening of Markets- Preliminary Screening
- Shift-share approach*
- Country A compared to “basket” of countries
- Country – Average = Net Shift
Screening of Markets- Micro Screening
•Match markets to firm strengths
Traits of market attractiveness
Market size
Market growth
Buyer power of Customers
Market seasons and fluctuations
Average Industry Margin
Competitive conditions
Market prohibitive conditions
Government regulations
Infrastructure
Economic and political stability
Psychic distance
bases for segmentation
Demographic Psychographic Benefit Seeking Usage and User Geographic
market expansion strategies- Simultaneous Entry
Seize emerging opportunity or forestall competition.
Provides economies of scale in production and marketing
Requires more $$$ resources and risk
market expansion strategies- Single or Incremental Entry
Allows firm to build up experience in international operations
Makes sense if firm enters late and faces entrenched local competition
