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DISCUSSION QUESTIONS
7-1. In a recent interview, a brand manager at Procter & Gamble noted, “Historically, we used to
be focused on discovering the common hopes and dreams within a country, but now we’re seeing
that the real commonalities are in generations across geographic borders.” What is the
significance of this comment in terms of segmenting and targeting?
Global market segmentation has been defined as the process of identifying specific
segments—whether they be country or individual consumer groups—of potential
Conventional and unconventional wisdom views of the world suggests that just because
consumers share some similar characteristics towards a product that they share all of
7-2. 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
Demographic segmentation is based on measurable population statistics such as age,
Psychographic segmentation divides people into lifestyle or personality segments
Behavior segmentation focuses on whether or not a population’s members use a product,
7-3. Explain the difference between segmenting and targeting.
Market segmentation divides a population or market into groups with one or more
market strategy.
7-4. 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
7-5. 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
Another option is foreign consumer culture positioning (FCCP), associating users, use
CASES
CASE 7-1
Segmenting the Chinese Luxury Goods Market
Overview: Global marketers are flocking to China, attracted by a population of more than 1.3
billion people. In addition to a rapidly growing middle class, China is home to increasing
numbers of millionaires and billionaires. Thanks to the rising aspirations and purchasing power
of these groups, Chinese consumers as a whole buy more luxury goods than any other
nationality. Global marketers are fueling corporate growth by targeting China’s economic elite,
when they do they discover that a “one-size-fits-all” strategy will not work. Several distinct
segments can be discerned among China’s richest “1 percent.” These include the super-elite, the
newly rich, and high-level government officials.
7-6. Compare and contrast the various segments of Chinese luxury consumers and customers
profiled in the case.
The “super-elite” or “extremely rich” consists of individuals who seized entrepreneurial
opportunities in the 1980s when Beijing instituted economic reform policies and began to
The “newly rich” consists of Chinese whose wealth, like that of the super-elite, only dates
The government officials, ranging from senior officials (tigers) to petty bureaucrats (flies)
Shopping Behavior Varies by Segment:
The extremely rich favor luxury brands that reflect the buyers’ superior taste. The newly
7-7. How have luxury goods brands responded to President Xi Jinping’s crackdown on
corruption?
To protect their customers, luxury goods companies are discreet. Managers at some retail
purchase.
7-8. Why do so many Chinese parents want their children to study at foreign universities?
Anxious for their children to earn respect, parents in the newly rich segment aspire to
7-9. Assess the prospects for success for the Lincoln Motor Company’s entry in the China
market.
The more target market research Lincoln does in China, the more successful they will be.
Case 7-2: Cosmetics Giants Segment the Global Cosmetics Market
Overview: The world’s best-known cosmetics companies are setting their sights on a lucrative
new market segment: the emerging middle classes in countries such as Brazil, Russia, India, and
China. Market research is critical to understanding women’s preferences in different parts of the
world. In China, for example, L’Oreal and its competitors have an opportunity to educate
women about cosmetics, which were banned prior to 1982.
7-10. How do women’s preferences for cosmetics and beauty care vary from country to country?
In China for example, Chinese women apply products in the morning and the
evening and Chinese consumers are price sensitive. In India, millions must live on $ 2
7-11. Assess Estee Lauder’s strategy for China. Does it make sense to focus on premium brands,
or should the company launch a mass-market brand?
Estee Lauder’s strategy is that their products are aspirational. Based on their market
research and psychological research, they feel that Chinese consumers would be willing
7-12. What is the best positioning strategy for Shiseido as the company expands in Asia? High
touch? High tech? Both?
Shiseido has a corporate advantage because they understand the needs and
requirements of the Asian skin – their positioning strategy is or should be one of
7-13. Do you think L’Oréal will succeed in changing the buying habits of Brazilian women?
Traditionally, Brazilians have bought their cosmetics from sales representatives who go
