UNIVERSIDAD PRIVADA ANTENOR ORREGO

FACULTAD DE INGENIERÍA

ESCUELA DE INGENIERÍA INDUSTRIAL

HOMEWORK PAGE 254

STUDENT :

GUEVARA CABRERA, Luis Enrique

TEACHER :

SCHRIENER SCOTT, Christopher

Trujillo – Perú

2018
 1. Identify the five basic segmentation strategies. Give an example of a company that has used each
one.

Global market segmentation identifies and groups customers or countries according to common needs and
wants. Coca-Cola has identified and grouped both customers and countries.

Demographic segmentation is based on measurable population statistics such as age, gender, income,
occupation, and geography. Volkswagen, Citroen, Chrysler, and other automakers have identified China as an
attractive segment based on the sheer size of its population.

Psychographic segmentation divides people into lifestyle or personality segments based on assessments of
activities, interests. and opinions. Porsche established psychographic profiles of its U.S. owners.

Behavior segmentation focuses on whether or not a population's members use a product, and, for users, how
often, how much, and how loyally they use it. Visa international and other credit card companies target Asian
countries, where credit card utilization is much lower than in the United States. Conversely, tobacco
companies such as Philip Morris and B.A.T. are targeting China and other Asian countries because, compared
with the West, a relatively higher proportion of Asian adults smoke.

Benefit segmentation divides the market according to the benefits buyers seek from a product or the problem
that the product solves for them.

2. Explain the difference between segmenting and targeting.

Market segmentation divides a population or market into groups with one or more common characteristics.
Targeting selects one or more market segments and a target market strategy.

3. Compare and contrast standardized, concentrated, and differentiated global marketing. Illustrate
each strategy with an example from a global company.

Standardized (or undifferentiated) global marketing represents mass marketing on a global scale. This has
been the key to the global success of companies such as Kodak, Bic, the Coca-Cola Company, Levi Strauss and
Gillette.

Conversely, a company engaged in differentiated marketing targets several different segments by offering a
unique marketing mix to each. Whirlpool is a good example. Its Baulkneckt brand is for upscale consumers,
appliances with the Whirlpool brand are positioned in the middle of the market, and Ipnis is at the low end.

Concentrated marketing represents a niche strategy for serving a narrowly-defined segment. Rolls-Royce
automobiles carry exclusive prices that only affluent consumers can afford. Similarly, the Body Shop caters to
consumers who wish to purchase "natural" beauty aids and cosmetics that have not been tested on animals.

4. American Izuzu Motors recently introduced the AXIOM SUV in the United States with a base sticker
price of $25,985. The base price for a Honda CRV is $18,750; prices for Toyota’s RAV4 start at $16,365.
Assess Isuzu’s decision to target the U.S. market for sport utility vehicles.

Isuzu's decision should be based on answers to the following questions. Is the market segment currently large
enough to present Isuzu an opportunity to make a profit? If not today, is there growth potential to make it
attractive in terms of Isuzu's long-term strategy? Even if a narrow segment can be served profitably in the
U.S., the target segment exists in several countries.

The SUV vehicle segment is an example of growth from 1990 to 2000, with over 3 million sold in 2000. Reacting
to high demand, manufacturers from outside the U.S. drew up plans for their own versions. Consultants
predict that by 2006, 79 separate SUV models will target American buyers. As U.S. growth slows, the SUV
segment is growing in other countries. In addition, differentiated global marketing, or multisegment targeting,
targets two or more market segments with multiple marketing mix offerings; while the AXPIOM SUV targets
the high-end of the market, the Toyota RAV4 targets the lower end

5. What is positioning? Identify the different positioning strategies presented in the chapter and give
examples of companies or products that illustrate each.

Positioning represents marketers’ attempts to differentiate their products from all competing products in
terms of consumers’ mental images and representations. The positioning strategies identified in the chapter
include attribute or benefit, quality/price, use or user, and a company’s competition. Toothpastes, detergents,
and similar consumer products are often positioned by attribute. Premium spirits such as vodka and gin are
positioned at the high end of the quality/price continuum.

6. What is global consumer culture positioning (GCCP)? What other strategic positioning choices do
global marketers have?

Global consumer culture positioning (GCCP) is defined as a strategy that identifies the brand as a symbol of a
particular global culture or segment. It has proven effective for communicating with global teens,
cosmopolitan elites, and globe-trotting laptop warriors (e.g., Sony’s “My First Sony” line is positioned as the
brand for youngsters around the globe).

Another option is foreign consumer culture positioning (FCCP), associating users, use occasions, or production
origins with a foreign country or culture (e.g., the name "Haagen-Dazs' implies Scandinavia though the ice
cream is American).

Local consumer culture positioning (LCCP) associates the brand with local cultural meanings and norms, local
consumption, or local production (e.g., LCCP is seen in Budweiser’s U.S. ads featuring Clydesdale horses,
associated with rural America).

7. What is a high-touch product? Explain the difference between high-tech product positioning and
high-touch product positioning. Can some products be positioned using both strategies? Explain.

High-tech products are sophisticated, technologically complex, and/or difficult to explain or understand. (e.g.,
Cell phones and audio/video components are high-tech categories with strong global positions). High-tech
global consumer positioning works well for special interest products associated with leisure or recreation (e.g.,
Adidas sports equipment).

For high-touch products, emotional motives rather than rational ones energize consumers. High-touch
products may represent personal indulgence, self-image, or interpersonal relationships (e.g., luxury perfume,
designer fashions). Some high-touch products are linked with the joy or pleasure found in "life’s little
moments." Leisure, romance, and materialism are three themes that cross borders well. Professionalism and
experience are advertising themes that work well for high-tech products such as global financial services.
Products can be positioned globally as both high-tech and high-touch when they satisfy rational criteria and
evoking an emotional response (e.g., Nokia, the cell phone leader, combines technical performance with
fashion).