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GLOBAL SEGMENTATION AND POSITIONING

Chapter Seven

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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• 5. Issues in International Market Segmentation• 6. International Positioning Strategies

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Overview

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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

– Exhibit 7-1 “Think” and “Feel” Country Clusters

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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

– Mixture of Universal and Diverse Segments

– Exhibit 7-5 What Matters to Young Europeans

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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

5. High mass-consumption

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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 Money

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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

• Political Conditions

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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– Exhibit 7-10 Frame 2 International Typology

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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

• Regression

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5. Issues in International Market Segmentation

• Technical Issues– Poor Quality Data– “Noisy” Variables– Presence of Outliers

• Managerial Issues– Stability of Segments Over Time– Managerial Usefulness

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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– Different Segment / Different Positioning

Themes

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Summary

1. Keep things simple.

2. Consider several levels of aggregation, not just one.

3. Two ways to fine tune an existing segmentation scheme.

4. Pursue “creative” ways to segment your market.