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GLOBAL SEGMENTATION
AND POSITIONING
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7. Global Segmentation and Positioning
• Overview
• 1. Reasons for International Market Segmentation • 2. International Market Segmentation Approaches • 3. Bases for Country Segmentation
• 4. Country Segmentation Tools
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1. Reasons for International Market
Segmentation
• properties
– Measurable, Sizable, Accessible, Actionable, Competitive Intensity, Growth Potential
• Country Screening
• Global Market Research • Entry Decisions
• Positioning Strategy • Marketing Mix Policy
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2. International Market Segmentation
Approaches
• Exhibit 7-2 Macro-Level Country Approaches • Exhibit Two- and Three- Segment Solutions • Exhibit 7-4 Different Segment Scenarios
• Target Market Strategies
– Universal Segment – Diverse Segment
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3. Bases for Country Segmentation
• Demographics
• Socioeconomic Variables
– stages of economic development 1. Traditional Societies
2. Preconditions for take-off 3. The take off
4. The drive to maturity
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3. Bases for Country Segmentation
(cont)
• caveats in using per capita income
• Monetization of transactions within a country • Gray and Black Market sections of the country • Income disparities
• Exhibit 7-6 Latin-American Markets: Many
Latin Households have Lots of Spending
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3. Bases for Country Segmentation
(cont)
• Culture
– 1. Individualism vs Collectivism (IND) – 2. Power Distance (PD)
– 3. Uncertainty Avoidance (UA) – 4. Masculinity - Feminism (MA)
• Exhibit 7-7 Culture Based Clustering of
Euroconsumers
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3. Bases for Country Segmentation
(cont)
• Behavior-Based Segmentation
– Exhibit 7-8 European Market Classification as of December 31,1994
– Exhibit 7-9 Segment Assignments Based on New Product Penetration Patterns
• Life Style
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4. Country Segmentation Tools
• Cluster Analysis
– Exhibit 7-11 Principles of Cluster Analysis – Exhibit 7-12 Plot of Concentration Versus
Category Growth: Chocolate Industry
– Exhibit 7-13 Cluster Analysis - Two Cluster Solution, Three Cluster Solution
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5. Issues in International Market
Segmentation
• Technical Issues
– Poor Quality Data – “Noisy” Variables – Presence of Outliers
• Managerial Issues
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6. International Positioning Strategies
• Exhibit 7-14 Global Positioning and
Segmentation Strategies
– Universal Segment / Uniform Positioning Theme
– Universal Segment / Different Positioning Themes
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