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Segmentation, Targeting, and

Positioning

Chapter 7

Global Marketing

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Market Segmentation

Represents an effort to identify and

categorize groups of customers andcountries according to common

characteristics

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Targeting

The process of evaluating segments and

focusing marketing efforts on a country,

region, or group of people that hassignificant potential to respond

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lo!al Market Segmentation

The process of identifying specific

segments " #hether they !e country groups

or individual consumer groups " ofpotential customers #ith homogeneous

attri!utes #ho are likely to e$hi!it similar

responses to a company%s marketing mi$

"Pluralization of consumption

"Segment simultaneity

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Contrasting &ie#s' lo!al Segmentation

Conventional (isdom" )ssumes heterogeneity

!et#een countries

" )ssumes homogeneity

#ithin a country" *ocuses on macro level

cultural differences

" Relies on clustering of

national markets

" +ess emphasis on #ithin

country segments

-nconventional (isdom" )ssumes emergence of

segments that transcend

national !oundaries

" Recognizes e$istence of#ithincountry differences

" .mphasizes microlevel

differences

" Segments micro markets

#ithin and !et#een

countries

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lo!al Segmentation /ases

0emographics

Psychographics

/ehavioral characteristics

/enefits sought

.nvironments

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0emographics

1ncome

Populations

)ge distri!ution

ender

.ducation 2ccupation

Inparticular, notice

trends: are therefewer married

couples, smaller

family size, changing

roles of women,

higher incomes, etc?

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Psychographics

rouping people according to attitudes, value, andlifestyles

"SR1 1nternational and &)+S 3

Porshe e$ample" Top uns 43756' )m!ition, po#er, control

" .litists 4356' 2ld money, car is 8ust a car

" Proud Patrons 43956' Car is re#ard for hard #ork

" /on &ivants 4:756' Car is for e$citement, adventure

" *antasists 4;56' Car is form of escape

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lo!al Psychographics

/S/%s lo!al Scan

"T)R.T SC)56' older, content

Traditionals 4:?56' clings to past, heritage, and

values

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lo!al Psychographics 4cont@6

0M//%s .uroconsumer Study 4:=country study6

".lite Consumers

Successful 1dealists

)ffluent Materialists

"Mainstream Consumers

Comforta!le /elongers

0isaffected Survivors

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lo!al Psychographics4conc@6

ABR%s Crosscultural Consumer

Characterizations 4 Cs6 3country study

"Constrained Resigned Poor, Struggling Poor

"Middle Ma8ority

Mainstreamers, )spirers, Succeeders

"1nnovators

Transitionals, Reformers

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/ehavior

(hether or not people !uy or use a product

Do# much they use it

Do# often they use it

-ser status

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/enefit

/enefit segmentation focuses on the value

eEuation

"&alue F /enefits G Price

/ased on understanding the pro!lem a

product solves, the !enefit it offers, or the

issue it addresses

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Criteria for Targeting' ; (%s

(ho !uys our productH (ho does not !uy itH

(hat need or function does it serveH

(hat are customers !uying to satisfy the need for #hich

our product is targetedH

(hat price are they payingH

(hen is the product purchasedH

(here is it purchasedH (hy is it purchasedH

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Criteria for )ssessing

lo!al 2pportunityCurrent Size of the Segment

)nticipated ro#th Potential

CompetitionCompati!ility

#ith company%s

overall o!8ectives*easi!ility of successfully

reaching designated target

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lo!al Marketing

Standardized glo!al marketing"Mass marketing on a glo!al scale

"-ndifferentiated target marketing

Concentrated glo!al marketing"

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Positioning

+ocating a !rand in consumers% minds over

and against competitors in terms of

attri!utes and !enefits that the !rand doesand does not offer

")ttri!ute or /enefit

"Iuality and Price"-se or -ser

"Competition

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Positioning Strategies

lo!al consumer culture positioning

"1dentifies the !rand as a sym!ol of a particular

glo!al culture or segment

*oreign consumer culture positioning

")ssociates the !rand%s users, use occasions, or

product origins #ith a foreign country orculture