1. Which of the following refers to market segmentation?

1. A company brings different parts of a market together so they can be served together.
2. It occurs when a company identifies distinct groups of customers whose needs, wants and purchasing behavior differ from other groups.
3. Competing companies agree to break a market up into different sections to that each company can monopolize a single section.
4. Companies identify new markets for existing products.
5. Companies identify new markets for new products.

2. Which of the following is true about variations that could lead to adapting cars for different international markets?

1. cultural differences dont matter because cars fulfill the same function everywhere
2. Varying conditions of use dont matter because roads are the same everywhere
3. Varying levels of affluence dont matter because people who buy them have to have a certain income to afford them
4. government regulations dont matter because these must follow guidelines set by the United Nations
5. All the variations mentioned above do matter and the reasons for ignoring them are wrong

3. Which of the following is an argument against standardized advertising?

1. it does not work where a brand is familiar the world over.
2. it can use local talent available in other cultures.
3. local advertising regulations may require adaptations not mandated elsewhere
4. royalties make it the most expensive form of advertising
5. it increases the costs of value creation