Segmentation, Targeting and Positioning in International Markets
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Transcript of Segmentation, Targeting and Positioning in International Markets
Segmentation, Targeting and Positioning in International Markets
Developing an international marketing strategy
Segmenting Targeting Positioning
Reasons for Global Market Segmentation
Country Screening Global Market Research Entry Decisions Positioning Strategy Marketing Mix Policy
Type Of Segmentation
Grouping Countries Segments within and across Foreign
Markets
Bases for Country Segmentation
Demographics Socioeconomic Variables
– stages of economic development Per capita income Culture Political Conditions Behavior-Based Segmentation Life Style
GLOBAL INCOME AND POPULATION: 1995GLOBAL INCOME AND POPULATION: 1995GLOBAL INCOME AND POPULATION: 1995GLOBAL INCOME AND POPULATION: 1995
World (Total) $25,097 $4,678 100 5,815 100
Triad (Total) 19,119 24,203 76 790 14
North America* 7,253 24,903 29 291 5
Japan 4,247 33,748 17 126 2
EU 7,619 20,435 30 373 6
Other High Income 844 34,415 3 25 <1
Upper Middle Income 2,239 4,397 9 509 9
Lower Middle Income 2,403 1,001 10 2,401 41
Low Income 491 300 2 1,640 28
Unavailable Data N/A N/A N/A 450 8
GNP (billion)
GNPPer Capita
% ofWorldGNP
Population(million)
% ofWorld
PopulationMarket
*Not including Mexico
Country Income SegmentationCountry Income Segmentation
High Income (Advanced Countries) - Triad - Others
Upper Middle Income (NIC's)
Lower Middle Income (DC's)
Low Income (LDC's)
Basket Cases (BC's)
+ $14,000
+ $2,500
+ $500
< $500
GLOBAL INCOME AND POPULATION: 1995GLOBAL INCOME AND POPULATION: 1995GLOBAL INCOME AND POPULATION: 1995GLOBAL INCOME AND POPULATION: 1995
GNP GNPwith PPP
GNPPer
Capita
GNPPer Capitawith PPPMarket
*Not including Mexico
World (Total) $25,097 $30,783 100 100 $4,678 $5,863
Triad (Total) 19,119 16,992 76 55 24,203 21,511
North America* 7,253 7,246 29 24 24,903 24,877
Japan 4,247 2,849 17 9 33,748 22,636
EU 7,619 6,898 30 22 20,435 18,502
Other High Income 844 631 3 2 34,415 35,904
Upper Middle Income 2,239 3,504 9 11 4,397 7,604
Lower Middle Income 2,403 7,480 10 24 1,001 3,126
Low Income 491 2,176 2 7 300 1,370
Purchasing Power Parity Compared
(billion)
% ofworldGNP
% ofworldGNP
with PPP
Standard of Living Standard of Living
China 70 5 724 37.5 76.9
384,000,000
Hong Kong 77 7 933 4.0 1.6 95,000
Japan 79 11 609 1.6 1.9 130,000
U.S. 76 12 404 1.2 1.3 28,000
Russia 60 275
150,000,000
LifeExpectancy
Schooling(av. years)
Number of people per:
Doctor TV Phone McDonald’s
Sources: WEFA, AsiaWeek, McDonald’s, The New York Times
Successful Economic Union Requirements
Economic Compatibility
Political Compatibility
Geographic Proximity
Social Compatibility
Weakness in some must be balanced by strengths in others
Market Groups
Patterns of Multinational Cooperation– Regional Cooperation Groups
– Free-Trade Area
– Customs Union
– Common Market
– Political Union
New Multinational Market Groups or Trading Blocks of the 21st Century
European Union
European Economic Area (EC and EFTA)
North American Free Trade Area
Southern Cone-Mercosur
Asean Free Trade Area (AFTA)
Commonwealth of Independent States (CIS)
Central European Free Trade Area (CEFTA)
European Trade Areas
* Five founding members.** Awaiting membership.*** Seeking membership.
Belgium Italy Austria* LiechtensteinDenmark Luxembourg Finland* Norway*France The Netherlands Iceland* Sweden*Germany Portugal SwitzerlandGreece SpainIreland United Kingdom
EC Countries and EC Countries and AustriaAustria Poland*** FinlandFinland Sweden Hungary*** Iceland
NorwaySweden
European Community (EC) European Free Trade Area (EFTA)
European Unity (EU) European Economic Area (EEA)
A Comparison of the EU and NAFTA
EU 363.3 $ 7.79 $ 21,442
NAFTA 372.0 6.94 18,662
Population GNP GNP(millions) ($ trillions)* (per capita)*
* U.S. $ 1992.
Common Traits of Big Emerging Markets
Are physically large.
Have significant populations.
Represent considerable markets for a wide range of products.
Have strong rates of growth or the potential for significant growth.
Have undertaken significant programs or economic reform.
Are of major political importance within their regions.
Are "Regional Economic Drivers".
Will engender further expansion in neighboring markets as they grow.
Big Emerging Markets
AsiaChina 1,188.0 $ 435.6 $ 367
$ 135.9Indonesia 191.2 126.4 661
63.0India 870.0 238.3 274
42.2South Korea 43.7 296.8 6,799
150.6
Latin AmericaMexico 89.5 333.3 3,722
85.9Argentina 33.1 228.8 6,912
21.2Brazil 156.8 409.2 2,609
55.8
AfricaSouth Africa 39.8 114.8 2,882
17.1
EuropePoland 38.4 83.6 2,178
35.6Turkey 58.8 156.0 2,747
38.9
Possible AdditionsColombia 33.4 43.5 1,303
12.3Thailand 57.8 104.0 1,801
65.1Venezuela 20.3 60.4 2,984
25.2Vietnam 69.5 17.5 252
3.2
Population GDP GDP Trade*(millions) ($ billions) (per capita) ($ billions)
* Imports and exports.SOURCES: "Big emerging Markets," Business America, Special Issue 1994, pp. 59-65 and for additional information, see "Indicators of Market Size for 115 Countries," Crossborder Monitor, August 31,1994.
“Think” and “Feel” Country Clusters
Plot of Concentration Versus Category Growth: Chocolate Industry
Chocolate Market
Two-Cluster Solution
Chocolate Market
Three-Cluster Solution
Properties of a Market Segment
Properties– Measurable– Sizable– Accessible– Actionable– Competitive Intensity– Growth Potential
Bases for Global Segments
Geographic Demographic Psychographic Behavior Benefits
Average Monthly Expenditures for Chinese Households National and Urban Areas - 1994
Food (includes eating out) $22.10 $38.00
Savings 11.40 17.00
Clothing 5.60 9.00
Child's Education 4.70 7.00
Home (includes Rent & Utilities) 4.30 8.20
Daily Goods other than Food 3.50 4.80
Medical Expenses & Drugs 2.30 4.00
Entertainment 1.30 3.20
National Urban Areas
SOURCE: Gallup China.
Group Attitudes Work Lifestyle Purchase Behavior
Resigned Poor Unhappy Labor Shut-in StaplesDistrustful Unskilled Television Price
Struggling Poor Unhappy Labor Sports PriceDissatisfied Craftsmen Television Discount Stores
Mainstreamers Happy Craftsmen Family HabitBelong Teaching Gardening Brand Loyal
Aspirers Unhappy Sales Trendy Sports Conspicuous Consumption
Ambitious White Collar Fashion magazines CreditSucceeders Happy Managerial Travel Luxury
Industrious Professional Dining out QualityTransitionals Rebellious Student Arts/crafts Impulse
Liberial Health field Special Interest Unique products magazines
Reformers Inner growth Professional Reading EcologyImprove world Entrepreneur Cultural events Homemade/grown
Y&R’s Cross-Cultural Consumer Characterizations (4Cs)
Global Scan Segmentation Study
0%
20%
40%
60%
80%
100%
Japan USA UK
Strivers
Achievers
Pressured
Traditionals
Adapters
Life Style
Exhibit : Typology of European Car Market
Roper Starch Worldwide Global Study
Shopping Styles– Deal Makers (29%) - love the buying process– Price Seekers (27%) - place primary value on the
product that they are buying– Brand Loyalists (23%) - purchase name brands and
remain true to them– Luxury Innovators (21%) - seek new, prestigious
brands
40,000 consumers in 40 countries
How the World Shops
Source: “How the World Shops,” Advertising Age, June 5, 1995, p.3.
Price Brand Luxury Deal Seekers Loyalists Innovators Makers
India 7.4 34.6 35.8 22.2Saudi Arabia 8.9 14.8 34.4 40.3Mexico 23.4 19.1 19.9 35.0China 23.4 27.9 19.1 35.0Czech Republic 26.9 23.9 25.7 22.6U.K. 27.2 28.7 17.5 25.5Spain 34.4 27.0 18.1 19.6U.S. 36.0 11.3 17.0 37.0Japan 41.0 23.5 7.9 27.1Germany 43.7 16.9 15.7 21.9France 45.5 19.5 8.5 26.6
How the World Shops
Source: “How the World Shops,” Advertising Age, June 5, 1995, p.3.
Luxury Brand Price Deal Innovators Loyalists Seekers Makers
Japan 7.9 23.5 41.0 27.1France 8.5 19.5 45.5 26.6Germany 15.7 16.9 43.7 21.9U.S. 17.0 11.3 36.0 37.0U.K. 17.5 28.7 27.2 25.5Spain 18.1 27.0 34.4 19.6China 19.1 27.9 23.4 35.0Mexico 19.9 19.1 23.4 35.0Czech Republic 25.7 23.9 26.9 22.6Saudi Arabia 34.4 14.8 8.9 40.3India 35.8 34.6 7.4 22.2
How the World Shops
Source: “How the World Shops,” Advertising Age, June 5, 1995, p.3.
Deal Luxury Brand PriceMakers Innovators Loyalists Seekers
Spain 19.6 18.1 27.0 34.4Germany 21.9 15.7 16.9 43.7India 22.2 35.8 34.6 7.4Czech Republic 22.6 25.7 23.9 26.9U.K. 25.5 17.5 28.7 27.2France 26.6 8.5 19.5 45.5Japan 27.1 7.9 23.5 41.0China 35.0 19.1 27.9 23.4Mexico 35.0 19.9 19.1 23.4U.S. 37.0 17.0 11.3 36.0Saudi Arabia 40.3 34.4 14.8 8.9
International Positioning Strategies
Global Positioning and Segmentation Strategies– Universal Segment / Uniform Positioning
Theme
– Universal Segment / Different Positioning Themes
– Different Segment / Different Positioning Themes
Global Positioning & Segmentation Strategies