Segmentation and Positioning

Slide 1: 

Global Market Segmentation and Positioning

Market Segmentation : 

Market Segmentation Represents an effort to identify and categorize groups of customers and countries according to common characteristics

Targeting : 

Targeting The process of evaluating segments and focusing marketing efforts on a country, region, or group of people that has significant potential to respond

Global Market Segmentation : 

Global Market Segmentation Defined as the process of identifying specific segments—whether they be country groups or individual consumer groups—of potential customers with homogeneous attributes who are likely to exhibit similar responses to a company’s marketing mix.

Contrasting views of global segmentation : 

Contrasting views of global segmentation Conventional Wisdom Assumes heterogeneity between countries Assumes homogeneity within a country Focuses on macro level cultural differences Relies on clustering of national markets Less emphasis on within-country segments Unconventional Wisdom Assumes emergence of segments that transcend national boundaries Recognizes existence of within-country differences Emphasizes micro-level differences Segments micro markets within and between countries

Global Market Segmentation : 

Global Market Segmentation Demographics Psychographics Behavioral Characteristics Benefits sought

10 Most Populous Countries : 

10 Most Populous Countries

Behavior Segmentation : 

Behavior Segmentation How much they use it How often they use it User status Law of disproportionality/Pareto’s Law – 80% of a company’s revenues are accounted for by 20% of the customers

Benefit Segmentation : 

Benefit Segmentation Based on understanding the problem a product solves, the benefit it offers, or the issue it addresses

Assessing Market Potential : 

Assessing Market Potential Be mindful of the pitfalls Tendency to overstate the size and short-term attractiveness of individual country markets The company doesn’t want to ‘miss-out’ on a strategic opportunity Management’s network of contacts will emerge as a primary criterion for targeting

Assessing Market Potential : 

Assessing Market Potential Three basic criteria Size and Growth of Segment Competition Compatibility with Company’s overall strategy

9 Questions : 

9 Questions Who buys our product? Who does not buy it? What need or function does it serve? Is there a market need that is not being met by current product/brand offerings? What problem does our product solve? What are customers buying to satisfy the need for which our product is targeted? What price are they paying? When is the product purchased? Where is it purchased?

Target Market Strategy Options : 

Target Market Strategy Options Standardized global marketing Mass marketing on a global scale Undifferentiated target marketing Concentrated global marketing Niche marketing Single segment of global market Differentiated global marketing Multi-segment targeting Two or more distinct markets

Positioning : 

Positioning Placing a brand in consumers’ minds versus competitive offerings Attribute or Benefit Quality and Price Use or User Lifestyle Emotions

Positioning Strategies : 

Positioning Strategies Global consumer culture positioning Identifies the brand as a symbol of a particular global culture or segment Foreign consumer culture positioning Associates the brand’s users, use occasions, or product origins with a foreign country or culture